Full Text of HB0811 095th General Assembly
HB0811enr 95TH GENERAL ASSEMBLY
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HB0811 Enrolled |
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LRB095 10788 BDD 31032 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
| 4 |
| Section 5. The Use Tax Act is amended by changing Section | 5 |
| 3-61 as follows:
| 6 |
| (35 ILCS 105/3-61)
| 7 |
| Sec. 3-61. Motor vehicles; trailers; use as rolling stock | 8 |
| definition. | 9 |
| (a) Through
June 30, 2003, "use
as
rolling stock moving
in
| 10 |
| interstate commerce" in subsections (b) and (c) of Section 3-55 | 11 |
| means for motor
vehicles, as defined in Section 1-146 of the | 12 |
| Illinois Vehicle Code, and
trailers, as defined in Section | 13 |
| 1-209 of the Illinois Vehicle Code, when on 15
or more | 14 |
| occasions in a 12-month period the motor vehicle and trailer | 15 |
| has
carried
persons or
property for hire in interstate | 16 |
| commerce, even just between points in Illinois,
if the motor | 17 |
| vehicle and trailer transports persons whose journeys or | 18 |
| property
whose shipments originate or terminate outside | 19 |
| Illinois. This definition
applies to all property purchased for | 20 |
| the purpose of being
attached to those motor vehicles or | 21 |
| trailers as a part thereof.
| 22 |
| (b) On and after July 1, 2003 and through June 30, 2004, | 23 |
| "use as rolling stock moving in interstate
commerce" in
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HB0811 Enrolled |
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LRB095 10788 BDD 31032 b |
|
| 1 |
| paragraphs (b) and (c) of Section 3-55 occurs for motor | 2 |
| vehicles, as defined in
Section 1-146 of the Illinois Vehicle | 3 |
| Code, when during a 12-month period
the
rolling stock has | 4 |
| carried persons or property for hire in interstate commerce
for | 5 |
| 51% of
its total trips and transports persons whose journeys or | 6 |
| property whose
shipments
originate or terminate outside | 7 |
| Illinois. Trips that are only between points in
Illinois shall
| 8 |
| not be counted as interstate trips when calculating whether the | 9 |
| tangible
personal property
qualifies for the exemption but such | 10 |
| trips shall be included in total trips
taken.
| 11 |
| (c) Beginning July 1, 2004, "use as rolling stock moving in | 12 |
| interstate commerce" in paragraphs (b) and (c) of Section 3-55 | 13 |
| occurs for motor vehicles, as defined in Section 1-146 of the | 14 |
| Illinois Vehicle Code, when during a 12-month period the | 15 |
| rolling stock has carried persons or property for hire in | 16 |
| interstate commerce for greater than 50% of its total trips for | 17 |
| that period or for greater than 50% of its total miles for that | 18 |
| period. The person claiming the exemption shall make an | 19 |
| election at the time of purchase to use either the trips or | 20 |
| mileage method. Persons who purchased motor vehicles prior to | 21 |
| July 1, 2004 shall make an election to use either the trips or | 22 |
| mileage method and document that election in their books and | 23 |
| records. If no election is made under this subsection to use | 24 |
| the trips or mileage method, the person shall be deemed to have | 25 |
| chosen the mileage method. Any election to use either the trips | 26 |
| or mileage method will remain in effect for that motor vehicle |
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|
|
HB0811 Enrolled |
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LRB095 10788 BDD 31032 b |
|
| 1 |
| for any period for which the Department may issue a notice of | 2 |
| tax liability under this Act. | 3 |
| For purposes of determining qualifying trips or miles, | 4 |
| motor vehicles that carry persons or property for hire, even | 5 |
| just between points in Illinois, will be considered used for | 6 |
| hire in interstate commerce if the motor vehicle transports | 7 |
| persons whose journeys or property whose shipments originate or | 8 |
| terminate outside Illinois. The exemption for motor vehicles
| 9 |
| used as rolling stock moving in interstate commerce may be
| 10 |
| claimed only for the following vehicles: (i) motor vehicles | 11 |
| whose gross vehicle weight
rating exceeds 16,000 pounds ; and | 12 |
| (ii) limousines, as defined in Section 1-139.1 of the Illinois | 13 |
| Vehicle Code . This definition applies to all property purchased | 14 |
| for the purpose of being attached to those motor vehicles as a | 15 |
| part thereof. | 16 |
| (d) Beginning July 1, 2004, "use as rolling stock moving in | 17 |
| interstate commerce" in paragraphs (b) and (c) of Section 3-55 | 18 |
| occurs for trailers, as defined in Section 1-209 of the | 19 |
| Illinois Vehicle Code, semitrailers as defined in Section 1-187 | 20 |
| of the Illinois Vehicle Code, and pole trailers as defined in | 21 |
| Section 1-161 of the Illinois Vehicle Code, when during a | 22 |
| 12-month period the rolling stock has carried persons or | 23 |
| property for hire in interstate commerce for greater than 50% | 24 |
| of its total trips for that period or for greater than 50% of | 25 |
| its total miles for that period. The person claiming the | 26 |
| exemption for a trailer or trailers that will not be dedicated |
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HB0811 Enrolled |
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LRB095 10788 BDD 31032 b |
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| 1 |
| to a motor vehicle or group of motor vehicles shall make an | 2 |
| election at the time of purchase to use either the trips or | 3 |
| mileage method. Persons who purchased trailers prior to July 1, | 4 |
| 2004 that are not dedicated to a motor vehicle or group of | 5 |
| motor vehicles shall make an election to use either the trips | 6 |
| or mileage method and document that election in their books and | 7 |
| records. If no election is made under this subsection to use | 8 |
| the trips or mileage method, the person shall be deemed to have | 9 |
| chosen the mileage method. Any election to use either the trips | 10 |
| or mileage method will remain in effect for that trailer for | 11 |
| any period for which the Department may issue a notice of tax | 12 |
| liability under this Act. | 13 |
| For purposes of determining qualifying trips or miles, | 14 |
| trailers, semitrailers, or pole trailers that carry property | 15 |
| for hire, even just between points in Illinois, will be | 16 |
| considered used for hire in interstate commerce if the | 17 |
| trailers, semitrailers, or pole trailers transport property | 18 |
| whose shipments originate or terminate outside Illinois. This | 19 |
| definition applies to all property purchased for the purpose of | 20 |
| being attached to those trailers, semitrailers, or pole | 21 |
| trailers as a part thereof. In lieu of a person providing | 22 |
| documentation regarding the qualifying use of each individual | 23 |
| trailer, semitrailer, or pole trailer, that person may document | 24 |
| such qualifying use by providing documentation of the | 25 |
| following: | 26 |
| (1) If a trailer, semitrailer, or pole trailer is |
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HB0811 Enrolled |
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LRB095 10788 BDD 31032 b |
|
| 1 |
| dedicated to a motor vehicle that qualifies as rolling | 2 |
| stock moving in interstate commerce under subsection (c) of | 3 |
| this Section, then that trailer, semitrailer, or pole | 4 |
| trailer qualifies as rolling stock moving in interstate | 5 |
| commerce under this subsection. | 6 |
| (2) If a trailer, semitrailer, or pole trailer is | 7 |
| dedicated to a group of motor vehicles that all qualify as | 8 |
| rolling stock moving in interstate commerce under | 9 |
| subsection (c) of this Section, then that trailer, | 10 |
| semitrailer, or pole trailer qualifies as rolling stock | 11 |
| moving in interstate commerce under this subsection. | 12 |
| (3) If one or more trailers, semitrailers, or pole | 13 |
| trailers are dedicated to a group of motor vehicles and not | 14 |
| all of those motor vehicles in that group qualify as | 15 |
| rolling stock moving in interstate commerce under | 16 |
| subsection (c) of this Section, then the percentage of | 17 |
| those trailers, semitrailers, or pole trailers that | 18 |
| qualifies as rolling stock moving in interstate commerce | 19 |
| under this subsection is equal to the percentage of those | 20 |
| motor vehicles in that group that qualify as rolling stock | 21 |
| moving in interstate commerce under subsection (c) of this | 22 |
| Section to which those trailers, semitrailers, or pole | 23 |
| trailers are dedicated. However, to determine the | 24 |
| qualification for the exemption provided under this item | 25 |
| (3), the mathematical application of the qualifying | 26 |
| percentage to one or more trailers, semitrailers, or pole |
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HB0811 Enrolled |
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LRB095 10788 BDD 31032 b |
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| 1 |
| trailers under this subpart shall not be allowed as to any | 2 |
| fraction of a trailer, semitrailer, or pole trailer.
| 3 |
| (Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
| 4 |
| Section 10. The Service Use Tax Act is amended by changing | 5 |
| Section 3-51 as follows:
| 6 |
| (35 ILCS 110/3-51)
| 7 |
| Sec. 3-51. Motor vehicles; trailers; use as rolling stock | 8 |
| definition. | 9 |
| (a) Through
June 30, 2003, "use
as
rolling stock moving
in
| 10 |
| interstate commerce" in subsection (b) of Section 3-45 means | 11 |
| for motor
vehicles, as defined in Section 1-46 of the Illinois | 12 |
| Vehicle Code, and
trailers, as defined in Section 1-209 of the | 13 |
| Illinois Vehicle Code, when on 15
or more
occasions in a | 14 |
| 12-month period the motor vehicle and trailer has carried
| 15 |
| persons
or property
for hire in interstate commerce, even just | 16 |
| between points in Illinois, if the
motor vehicle and trailer | 17 |
| transports persons whose journeys or property
whose shipments | 18 |
| originate or terminate outside Illinois. This definition
| 19 |
| applies to all property purchased for the purpose of being | 20 |
| attached to those
motor
vehicles or trailers as a part thereof.
| 21 |
| (b) On and after July 1, 2003 and through June 30, 2004, | 22 |
| "use as rolling stock moving in interstate
commerce" in
| 23 |
| paragraphs (4) and (4a) of the definition of "sale of service" | 24 |
| in Section 2
and subsection (b) of Section 3-45 occurs for |
|
|
|
HB0811 Enrolled |
- 7 - |
LRB095 10788 BDD 31032 b |
|
| 1 |
| motor vehicles, as defined in
Section 1-146 of the Illinois | 2 |
| Vehicle Code, when
during a 12-month period the rolling stock | 3 |
| has carried persons or property for
hire in
interstate commerce | 4 |
| for 51% of its total trips and transports persons whose
| 5 |
| journeys or
property whose shipments originate or terminate | 6 |
| outside Illinois. Trips that
are only
between points in | 7 |
| Illinois shall not be counted as interstate trips when
| 8 |
| calculating whether
the tangible personal property qualifies | 9 |
| for the exemption but such trips shall
be included
in total | 10 |
| trips taken.
| 11 |
| (c) Beginning July 1, 2004, "use as rolling stock moving in | 12 |
| interstate commerce" in paragraphs (4) and (4a) of the | 13 |
| definition of "sale of service" in Section 2 and subsection (b) | 14 |
| of Section 3-45 occurs for motor vehicles, as defined in | 15 |
| Section 1-146 of the Illinois Vehicle Code, when during a | 16 |
| 12-month period the rolling stock has carried persons or | 17 |
| property for hire in interstate commerce for greater than 50% | 18 |
| of its total trips for that period or for greater than 50% of | 19 |
| its total miles for that period. The person claiming the | 20 |
| exemption shall make an election at the time of purchase to use | 21 |
| either the trips or mileage method. Persons who purchased motor | 22 |
| vehicles prior to July 1, 2004 shall make an election to use | 23 |
| either the trips or mileage method and document that election | 24 |
| in their books and records. If no election is made under this | 25 |
| subsection to use the trips or mileage method, the person shall | 26 |
| be deemed to have chosen the mileage method. Any election to |
|
|
|
HB0811 Enrolled |
- 8 - |
LRB095 10788 BDD 31032 b |
|
| 1 |
| use either the trips or mileage method will remain in effect | 2 |
| for that motor vehicle for any period for which the Department | 3 |
| may issue a notice of tax liability under this Act. | 4 |
| For purposes of determining qualifying trips or miles, | 5 |
| motor vehicles that carry persons or property for hire, even | 6 |
| just between points in Illinois, will be considered used for | 7 |
| hire in interstate commerce if the motor vehicle transports | 8 |
| persons whose journeys or property whose shipments originate or | 9 |
| terminate outside Illinois. The exemption for motor vehicles
| 10 |
| used as rolling stock moving in interstate commerce may be
| 11 |
| claimed only for the following vehicles: (i) motor vehicles | 12 |
| whose gross vehicle weight
rating exceeds 16,000 pounds ; and | 13 |
| (ii) limousines, as defined in Section 1-139.1 of the Illinois | 14 |
| Vehicle Code . This definition applies to all property purchased | 15 |
| for the purpose of being attached to those motor vehicles as a | 16 |
| part thereof. | 17 |
| (d) Beginning July 1, 2004, "use as rolling stock moving in | 18 |
| interstate commerce" in paragraphs (4) and (4a) of the | 19 |
| definition of "sale of service" in Section 2 and subsection (b) | 20 |
| of Section 3-45 occurs for trailers, as defined in Section | 21 |
| 1-209 of the Illinois Vehicle Code, semitrailers as defined in | 22 |
| Section 1-187 of the Illinois Vehicle Code, and pole trailers | 23 |
| as defined in Section 1-161 of the Illinois Vehicle Code, when | 24 |
| during a 12-month period the rolling stock has carried persons | 25 |
| or property for hire in interstate commerce for greater than | 26 |
| 50% of its total trips for that period or for greater than 50% |
|
|
|
HB0811 Enrolled |
- 9 - |
LRB095 10788 BDD 31032 b |
|
| 1 |
| of its total miles for that period. The person claiming the | 2 |
| exemption for a trailer or trailers that will not be dedicated | 3 |
| to a motor vehicle or group of motor vehicles shall make an | 4 |
| election at the time of purchase to use either the trips or | 5 |
| mileage method. Persons who purchased trailers prior to July 1, | 6 |
| 2004 that are not dedicated to a motor vehicle or group of | 7 |
| motor vehicles shall make an election to use either the trips | 8 |
| or mileage method and document that election in their books and | 9 |
| records. If no election is made under this subsection to use | 10 |
| the trips or mileage method, the person shall be deemed to have | 11 |
| chosen the mileage method. Any election to use either the trips | 12 |
| or mileage method will remain in effect for that trailer for | 13 |
| any period for which the Department may issue a notice of tax | 14 |
| liability under this Act. | 15 |
| For purposes of determining qualifying trips or miles, | 16 |
| trailers, semitrailers, or pole trailers that carry property | 17 |
| for hire, even just between points in Illinois, will be | 18 |
| considered used for hire in interstate commerce if the | 19 |
| trailers, semitrailers, or pole trailers transport property | 20 |
| whose shipments originate or terminate outside Illinois. This | 21 |
| definition applies to all property purchased for the purpose of | 22 |
| being attached to those trailers, semitrailers, or pole | 23 |
| trailers as a part thereof. In lieu of a person providing | 24 |
| documentation regarding the qualifying use of each individual | 25 |
| trailer, semitrailer, or pole trailer, that person may document | 26 |
| such qualifying use by providing documentation of the |
|
|
|
HB0811 Enrolled |
- 10 - |
LRB095 10788 BDD 31032 b |
|
| 1 |
| following: | 2 |
| (1) If a trailer, semitrailer, or pole trailer is | 3 |
| dedicated to a motor vehicle that qualifies as rolling | 4 |
| stock moving in interstate commerce under subsection (c) of | 5 |
| this Section, then that trailer, semitrailer, or pole | 6 |
| trailer qualifies as rolling stock moving in interstate | 7 |
| commerce under this subsection. | 8 |
| (2) If a trailer, semitrailer, or pole trailer is | 9 |
| dedicated to a group of motor vehicles that all qualify as | 10 |
| rolling stock moving in interstate commerce under | 11 |
| subsection (c) of this Section, then that trailer, | 12 |
| semitrailer, or pole trailer qualifies as rolling stock | 13 |
| moving in interstate commerce under this subsection. | 14 |
| (3) If one or more trailers, semitrailers, or pole | 15 |
| trailers are dedicated to a group of motor vehicles and not | 16 |
| all of those motor vehicles in that group qualify as | 17 |
| rolling stock moving in interstate commerce under | 18 |
| subsection (c) of this Section, then the percentage of | 19 |
| those trailers, semitrailers, or pole trailers that | 20 |
| qualifies as rolling stock moving in interstate commerce | 21 |
| under this subsection is equal to the percentage of those | 22 |
| motor vehicles in that group that qualify as rolling stock | 23 |
| moving in interstate commerce under subsection (c) of this | 24 |
| Section to which those trailers, semitrailers, or pole | 25 |
| trailers are dedicated. However, to determine the | 26 |
| qualification for the exemption provided under this item |
|
|
|
HB0811 Enrolled |
- 11 - |
LRB095 10788 BDD 31032 b |
|
| 1 |
| (3), the mathematical application of the qualifying | 2 |
| percentage to one or more trailers, semitrailers, or pole | 3 |
| trailers under this subpart shall not be allowed as to any | 4 |
| fraction of a trailer, semitrailer, or pole trailer.
| 5 |
| (Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
| 6 |
| Section 15. The Service Occupation Tax Act is amended by | 7 |
| changing Section 2d as follows:
| 8 |
| (35 ILCS 115/2d)
| 9 |
| Sec. 2d. Motor vehicles; trailers; use as rolling stock | 10 |
| definition. | 11 |
| (a) Through June
30, 2003, "use as
rolling stock moving in
| 12 |
| interstate commerce" in subsections (d) and (d-1) of the | 13 |
| definition of "sale of
service" in Section 2 means for motor | 14 |
| vehicles, as defined in Section 1-146 of
the Illinois Vehicle | 15 |
| Code, and trailers, as defined in Section 1-209 of the
Illinois | 16 |
| Vehicle Code, when on 15 or more occasions in a 12-month period | 17 |
| the
motor vehicle and trailer has carried persons or property | 18 |
| for hire in
interstate commerce, even just between points in | 19 |
| Illinois, if the motor vehicle
and trailer transports persons | 20 |
| whose journeys or property whose shipments
originate or | 21 |
| terminate outside Illinois.
This definition applies to all | 22 |
| property purchased for the purpose of being
attached to those | 23 |
| motor vehicles or trailers as a part thereof.
| 24 |
| (b) On and after July 1, 2003 and through June 30, 2004, |
|
|
|
HB0811 Enrolled |
- 12 - |
LRB095 10788 BDD 31032 b |
|
| 1 |
| "use as rolling stock moving in interstate
commerce" in
| 2 |
| paragraphs (d) and (d-1) of the definition of "sale of service" | 3 |
| in
Section 2 occurs for motor vehicles, as defined in Section | 4 |
| 1-146 of the
Illinois Vehicle Code,
when during a 12-month | 5 |
| period the rolling stock has carried persons or property
for | 6 |
| hire
in interstate commerce for 51% of its total trips and | 7 |
| transports persons whose
journeys or
property whose shipments | 8 |
| originate or terminate outside Illinois. Trips that
are only
| 9 |
| between points in Illinois will not be counted as interstate | 10 |
| trips when
calculating whether
the tangible personal property | 11 |
| qualifies for the exemption but such trips will
be included
in | 12 |
| total trips taken.
| 13 |
| (c) Beginning July 1, 2004, "use as rolling stock moving in | 14 |
| interstate commerce" in paragraphs (d) and (d-1) of the | 15 |
| definition of "sale of service" in Section 2 occurs for motor | 16 |
| vehicles, as defined in Section 1-146 of the Illinois Vehicle | 17 |
| Code, when during a 12-month period the rolling stock has | 18 |
| carried persons or property for hire in interstate commerce for | 19 |
| greater than 50% of its total trips for that period or for | 20 |
| greater than 50% of its total miles for that period. The person | 21 |
| claiming the exemption shall make an election at the time of | 22 |
| purchase to use either the trips or mileage method. Persons who | 23 |
| purchased motor vehicles prior to July 1, 2004 shall make an | 24 |
| election to use either the trips or mileage method and document | 25 |
| that election in their books and records. If no election is | 26 |
| made under this subsection to use the trips or mileage method, |
|
|
|
HB0811 Enrolled |
- 13 - |
LRB095 10788 BDD 31032 b |
|
| 1 |
| the person shall be deemed to have chosen the mileage method. | 2 |
| Any election to use either the trips or mileage method will | 3 |
| remain in effect for that motor vehicle for any period for | 4 |
| which the Department may issue a notice of tax liability under | 5 |
| this Act. | 6 |
| For purposes of determining qualifying trips or miles, | 7 |
| motor vehicles that carry persons or property for hire, even | 8 |
| just between points in Illinois, will be considered used for | 9 |
| hire in interstate commerce if the motor vehicle transports | 10 |
| persons whose journeys or property whose shipments originate or | 11 |
| terminate outside Illinois. The exemption for motor vehicles
| 12 |
| used as rolling stock moving in interstate commerce may be
| 13 |
| claimed only for the following vehicles: (i) motor vehicles | 14 |
| whose gross vehicle weight
rating exceeds 16,000 pounds ; and | 15 |
| (ii) limousines, as defined in Section 1-139.1 of the Illinois | 16 |
| Vehicle Code . This definition applies to all property purchased | 17 |
| for the purpose of being attached to those motor vehicles as a | 18 |
| part thereof. | 19 |
| (d) Beginning July 1, 2004, "use as rolling stock moving in | 20 |
| interstate commerce" in paragraphs (d) and (d-1) of the | 21 |
| definition of "sale of service" in Section 2 occurs for | 22 |
| trailers, as defined in Section 1-209 of the Illinois Vehicle | 23 |
| Code, semitrailers as defined in Section 1-187 of the Illinois | 24 |
| Vehicle Code, and pole trailers as defined in Section 1-161 of | 25 |
| the Illinois Vehicle Code, when during a 12-month period the | 26 |
| rolling stock has carried persons or property for hire in |
|
|
|
HB0811 Enrolled |
- 14 - |
LRB095 10788 BDD 31032 b |
|
| 1 |
| interstate commerce for greater than 50% of its total trips for | 2 |
| that period or for greater than 50% of its total miles for that | 3 |
| period. The person claiming the exemption for a trailer or | 4 |
| trailers that will not be dedicated to a motor vehicle or group | 5 |
| of motor vehicles shall make an election at the time of | 6 |
| purchase to use either the trips or mileage method. Persons who | 7 |
| purchased trailers prior to July 1, 2004 that are not dedicated | 8 |
| to a motor vehicle or group of motor vehicles shall make an | 9 |
| election to use either the trips or mileage method and document | 10 |
| that election in their books and records. If no election is | 11 |
| made under this subsection to use the trips or mileage method, | 12 |
| the person shall be deemed to have chosen the mileage method. | 13 |
| Any election to use either the trips or mileage method will | 14 |
| remain in effect for that trailer for any period for which the | 15 |
| Department may issue a notice of tax liability under this Act. | 16 |
| For purposes of determining qualifying trips or miles, | 17 |
| trailers, semitrailers, or pole trailers that carry property | 18 |
| for hire, even just between points in Illinois, will be | 19 |
| considered used for hire in interstate commerce if the | 20 |
| trailers, semitrailers, or pole trailers transport property | 21 |
| whose shipments originate or terminate outside Illinois. This | 22 |
| definition applies to all property purchased for the purpose of | 23 |
| being attached to those trailers, semitrailers, or pole | 24 |
| trailers as a part thereof. In lieu of a person providing | 25 |
| documentation regarding the qualifying use of each individual | 26 |
| trailer, semitrailer, or pole trailer, that person may document |
|
|
|
HB0811 Enrolled |
- 15 - |
LRB095 10788 BDD 31032 b |
|
| 1 |
| such qualifying use by providing documentation of the | 2 |
| following: | 3 |
| (1) If a trailer, semitrailer, or pole trailer is | 4 |
| dedicated to a motor vehicle that qualifies as rolling | 5 |
| stock moving in interstate commerce under subsection (c) of | 6 |
| this Section, then that trailer, semitrailer, or pole | 7 |
| trailer qualifies as rolling stock moving in interstate | 8 |
| commerce under this subsection. | 9 |
| (2) If a trailer, semitrailer, or pole trailer is | 10 |
| dedicated to a group of motor vehicles that all qualify as | 11 |
| rolling stock moving in interstate commerce under | 12 |
| subsection (c) of this Section, then that trailer, | 13 |
| semitrailer, or pole trailer qualifies as rolling stock | 14 |
| moving in interstate commerce under this subsection. | 15 |
| (3) If one or more trailers, semitrailers, or pole | 16 |
| trailers are dedicated to a group of motor vehicles and not | 17 |
| all of those motor vehicles in that group qualify as | 18 |
| rolling stock moving in interstate commerce under | 19 |
| subsection (c) of this Section, then the percentage of | 20 |
| those trailers, semitrailers, or pole trailers that | 21 |
| qualifies as rolling stock moving in interstate commerce | 22 |
| under this subsection is equal to the percentage of those | 23 |
| motor vehicles in that group that qualify as rolling stock | 24 |
| moving in interstate commerce under subsection (c) of this | 25 |
| Section to which those trailers, semitrailers, or pole | 26 |
| trailers are dedicated. However, to determine the |
|
|
|
HB0811 Enrolled |
- 16 - |
LRB095 10788 BDD 31032 b |
|
| 1 |
| qualification for the exemption provided under this item | 2 |
| (3), the mathematical application of the qualifying | 3 |
| percentage to one or more trailers, semitrailers, or pole | 4 |
| trailers under this subpart shall not be allowed as to any | 5 |
| fraction of a trailer, semitrailer, or pole trailer.
| 6 |
| (Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
| 7 |
| Section 20. The Retailers' Occupation Tax Act is amended by | 8 |
| changing Section 2-51 as follows:
| 9 |
| (35 ILCS 120/2-51)
| 10 |
| Sec. 2-51. Motor vehicles; trailers; use as rolling stock | 11 |
| definition. | 12 |
| (a) Through
June 30, 2003, "use
as
rolling stock moving
in
| 13 |
| interstate commerce" in
paragraphs (12) and (13) of Section 2-5 | 14 |
| means for motor vehicles, as defined in
Section 1-146 of the | 15 |
| Illinois Vehicle Code, and trailers, as defined in Section
| 16 |
| 1-209 of the Illinois Vehicle Code, when on 15 or more | 17 |
| occasions in a
12-month period the motor vehicle and trailer | 18 |
| has carried persons or property
for
hire in
interstate | 19 |
| commerce, even just between points in Illinois, if the motor | 20 |
| vehicle
and trailer transports persons whose journeys or | 21 |
| property whose shipments
originate or terminate outside | 22 |
| Illinois. This
definition applies to all
property purchased for | 23 |
| the purpose of being attached to those motor vehicles or
| 24 |
| trailers as a part thereof.
|
|
|
|
HB0811 Enrolled |
- 17 - |
LRB095 10788 BDD 31032 b |
|
| 1 |
| (b) On and after July 1, 2003 and through June 30, 2004, | 2 |
| "use as rolling stock moving in interstate
commerce" in
| 3 |
| paragraphs (12) and (13) of Section 2-5 occurs for motor | 4 |
| vehicles, as defined
in Section 1-146 of the Illinois Vehicle | 5 |
| Code, when during a 12-month
period the
rolling stock has | 6 |
| carried persons or property for hire in interstate commerce
for | 7 |
| 51% of
its total trips and transports persons whose journeys or | 8 |
| property whose
shipments
originate or terminate outside | 9 |
| Illinois. Trips that are only between points in
Illinois shall
| 10 |
| not be counted as interstate trips when calculating whether the | 11 |
| tangible
personal property
qualifies for the exemption but such | 12 |
| trips shall be included in total trips
taken.
| 13 |
| (c) Beginning July 1, 2004, "use as rolling stock moving in | 14 |
| interstate commerce" in paragraphs (12) and (13) of Section 2-5 | 15 |
| occurs for motor vehicles, as defined in Section 1-146 of the | 16 |
| Illinois Vehicle Code, when during a 12-month period the | 17 |
| rolling stock has carried persons or property for hire in | 18 |
| interstate commerce for greater than 50% of its total trips for | 19 |
| that period or for greater than 50% of its total miles for that | 20 |
| period. The person claiming the exemption shall make an | 21 |
| election at the time of purchase to use either the trips or | 22 |
| mileage method. Persons who purchased motor vehicles prior to | 23 |
| July 1, 2004 shall make an election to use either the trips or | 24 |
| mileage method and document that election in their books and | 25 |
| records. If no election is made under this subsection to use | 26 |
| the trips or mileage method, the person shall be deemed to have |
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LRB095 10788 BDD 31032 b |
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| chosen the mileage method. Any election to use either the trips | 2 |
| or mileage method will remain in effect for that motor vehicle | 3 |
| for any period for which the Department may issue a notice of | 4 |
| tax liability under this Act. | 5 |
| For purposes of determining qualifying trips or miles, | 6 |
| motor vehicles that carry persons or property for hire, even | 7 |
| just between points in Illinois, will be considered used for | 8 |
| hire in interstate commerce if the motor vehicle transports | 9 |
| persons whose journeys or property whose shipments originate or | 10 |
| terminate outside Illinois. The exemption for motor vehicles
| 11 |
| used as rolling stock moving in interstate commerce may be
| 12 |
| claimed only for the following vehicles: (i) motor vehicles | 13 |
| whose gross vehicle weight
rating exceeds 16,000 pounds ; and | 14 |
| (ii) limousines, as defined in Section 1-139.1 of the Illinois | 15 |
| Vehicle Code . This definition applies to all property purchased | 16 |
| for the purpose of being attached to those motor vehicles as a | 17 |
| part thereof. | 18 |
| (d) Beginning July 1, 2004, "use as rolling stock moving in | 19 |
| interstate commerce" in paragraphs (12) and (13) of Section 2-5 | 20 |
| occurs for trailers, as defined in Section 1-209 of the | 21 |
| Illinois Vehicle Code, semitrailers as defined in Section 1-187 | 22 |
| of the Illinois Vehicle Code, and pole trailers as defined in | 23 |
| Section 1-161 of the Illinois Vehicle Code, when during a | 24 |
| 12-month period the rolling stock has carried persons or | 25 |
| property for hire in interstate commerce for greater than 50% | 26 |
| of its total trips for that period or for greater than 50% of |
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HB0811 Enrolled |
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LRB095 10788 BDD 31032 b |
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| 1 |
| its total miles for that period. The person claiming the | 2 |
| exemption for a trailer or trailers that will not be dedicated | 3 |
| to a motor vehicle or group of motor vehicles shall make an | 4 |
| election at the time of purchase to use either the trips or | 5 |
| mileage method. Persons who purchased trailers prior to July 1, | 6 |
| 2004 that are not dedicated to a motor vehicle or group of | 7 |
| motor vehicles shall make an election to use either the trips | 8 |
| or mileage method and document that election in their books and | 9 |
| records. If no election is made under this subsection to use | 10 |
| the trips or mileage method, the person shall be deemed to have | 11 |
| chosen the mileage method. Any election to use either the trips | 12 |
| or mileage method will remain in effect for that trailer for | 13 |
| any period for which the Department may issue a notice of tax | 14 |
| liability under this Act. | 15 |
| For purposes of determining qualifying trips or miles, | 16 |
| trailers, semitrailers, or pole trailers that carry property | 17 |
| for hire, even just between points in Illinois, will be | 18 |
| considered used for hire in interstate commerce if the | 19 |
| trailers, semitrailers, or pole trailers transport property | 20 |
| whose shipments originate or terminate outside Illinois. This | 21 |
| definition applies to all property purchased for the purpose of | 22 |
| being attached to those trailers, semitrailers, or pole | 23 |
| trailers as a part thereof. In lieu of a person providing | 24 |
| documentation regarding the qualifying use of each individual | 25 |
| trailer, semitrailer, or pole trailer, that person may document | 26 |
| such qualifying use by providing documentation of the |
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LRB095 10788 BDD 31032 b |
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| 1 |
| following: | 2 |
| (1) If a trailer, semitrailer, or pole trailer is | 3 |
| dedicated to a motor vehicle that qualifies as rolling | 4 |
| stock moving in interstate commerce under subsection (c) of | 5 |
| this Section, then that trailer, semitrailer, or pole | 6 |
| trailer qualifies as rolling stock moving in interstate | 7 |
| commerce under this subsection. | 8 |
| (2) If a trailer, semitrailer, or pole trailer is | 9 |
| dedicated to a group of motor vehicles that all qualify as | 10 |
| rolling stock moving in interstate commerce under | 11 |
| subsection (c) of this Section, then that trailer, | 12 |
| semitrailer, or pole trailer qualifies as rolling stock | 13 |
| moving in interstate commerce under this subsection. | 14 |
| (3) If one or more trailers, semitrailers, or pole | 15 |
| trailers are dedicated to a group of motor vehicles and not | 16 |
| all of those motor vehicles in that group qualify as | 17 |
| rolling stock moving in interstate commerce under | 18 |
| subsection (c) of this Section, then the percentage of | 19 |
| those trailers, semitrailers, or pole trailers that | 20 |
| qualifies as rolling stock moving in interstate commerce | 21 |
| under this subsection is equal to the percentage of those | 22 |
| motor vehicles in that group that qualify as rolling stock | 23 |
| moving in interstate commerce under subsection (c) of this | 24 |
| Section to which those trailers, semitrailers, or pole | 25 |
| trailers are dedicated. However, to determine the | 26 |
| qualification for the exemption provided under this item |
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| 1 |
| (3), the mathematical application of the qualifying | 2 |
| percentage to one or more trailers, semitrailers, or pole | 3 |
| trailers under this subpart shall not be allowed as to any | 4 |
| fraction of a trailer, semitrailer, or pole trailer.
| 5 |
| (Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
| 6 |
| Section 99. Effective date. This Act takes effect upon | 7 |
| becoming law.
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