State of Illinois
90th General Assembly
Legislation

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90_SB0549

      35 ILCS 105/3-95 new
      35 ILCS 110/3-80 new
      35 ILCS 115/3-60 new
      35 ILCS 120/2-75 new
          Amends the Use Tax Act, the  Service  Use  Tax  Act,  the
      Service Occupation Tax Act, and the Retailers' Occupation Tax
      Act.   Exempts  aviation fuel received for use or consumption
      in the operation of an air cargo transportation hub  facility
      that  meets  certain  requirements  from the taxes imposed by
      those Acts for a period of 10 years. Requires the facility to
      receive a certificate of eligibility for exemption  from  the
      Department  of  Commerce  and Community Affairs. Requires the
      facility to repay exempted taxes if  the  facility  fails  to
      meet certain requirements.  Effective immediately.
                                                    LRB9001527DNmbA
                                              LRB9001527DNmbA
 1        AN ACT concerning occupation and use taxes.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The Use Tax Act is amended by adding  Section
 5    3-95 as follows:
 6        (35 ILCS 105/3-95 new)
 7        Sec.   3-95.   Air  cargo  transportation  hub  facility;
 8    exemption.
 9        (a)  "Air cargo  transportation  hub  facility"  means  a
10    facility  that  is  operated  by  an express air courier used
11    primarily for sorting, handling, and redistribution of  mail,
12    freight,  or other cargo received from agents or employees of
13    the  courier  for  processing  at  a  common   location   and
14    redistributed  to  either  other  employees  or agents of the
15    courier for delivery directly to an ultimate  destination  on
16    an  item-by-item  basis, and that (i) will make an investment
17    by a business enterprise of $150,000 or more in  real  estate
18    improvements,  machinery,  or  equipment, (ii) will cause the
19    creation  of  at  least  750  jobs  in  an  enterprise   zone
20    established under the Illinois Enterprise Zone Act, and (iii)
21    is  certified  by  the  Department  of Commerce and Community
22    Affairs as contractually obligated to meet  the  requirements
23    specified  in (i), (ii), and (iii) of this Section within the
24    time period specified in the certificate of  eligibility  for
25    exemption.    Any   business   enterprise  applying  for  the
26    exemption  stated  in  subsection  (b)  shall  apply  to  the
27    Department of Commerce and  Community  Affairs  in  the  form
28    prescribed   by   the   Department   and  shall  provide  any
29    information required by the  Department.  The  Department  of
30    Commerce  and  Community  Affairs  shall determine, within 60
31    days after it receives an application for exemption,  whether
                            -2-               LRB9001527DNmbA
 1    the business enterprise meets the criteria prescribed in this
 2    subsection.   If  the Department determines that the business
 3    enterprise meets the criteria, it shall issue  a  certificate
 4    of  eligibility  for  the  exemption in subsection (b) to the
 5    business enterprise in the form prescribed by the  Department
 6    of Revenue.  The Department of Commerce and Community Affairs
 7    shall  file  with  the  Department  of Revenue a copy of each
 8    certificate of eligibility for  exemption.  If  the  business
 9    enterprise  has received a certificate of eligibility for the
10    exemption under Section 3-80 of  the  Service  Use  Tax  Act,
11    Section  3-60  of  the Service Occupation Tax Act, or Section
12    2-75  of  the  Retailers'  Occupation  Tax  Act,   then   the
13    enterprise  shall  not  be  required  to  receive  a separate
14    certificate to receive the  exemption  under  this  Act.  The
15    Department  of  Commerce and Community Affairs shall have the
16    power to promulgate rules to carry out the provisions of this
17    Section.  Any business  enterprise  that  is  granted  a  tax
18    exemption  under this Section shall repay the exempted tax if
19    the business enterprise fails to comply with  the  terms  and
20    conditions  of  the  certificate of eligibility. The business
21    enterprise shall present the certificate  of  eligibility  to
22    its  supplier when the enterprise purchases aviation fuel for
23    which an  exemption  is  granted  by  subsection  (b)  and  a
24    certification  by  the  business enterprise that the aviation
25    fuel  is  exempt  from  taxation  under  this  Section.   The
26    business enterprise shall also indicate the exempt status  of
27    each  subsequent purchase of aviation fuel on the face of the
28    purchase order.
29        (b)  Subject  to  the  provisions  of   subsection   (a),
30    aviation   fuel  received  for  use  or  consumption  in  the
31    operation of an air cargo  transportation  hub  facility,  as
32    defined  in subsection (a), that locates within an enterprise
33    zone after January 1, 1997, shall  be  exempt  from  the  tax
34    imposed by this Act for 10 years.
                            -3-               LRB9001527DNmbA
 1        Section 10.  The Service Use Tax Act is amended by adding
 2    Section 3-80  as follows:
 3        (35 ILCS 110/3-80 new)
 4        Sec.   3-80.   Air  cargo  transportation  hub  facility;
 5    exemption.
 6        (a)  "Air cargo  transportation  hub  facility"  means  a
 7    facility  that  is  operated  by  an express air courier used
 8    primarily for sorting, handling, and redistribution of  mail,
 9    freight,  or other cargo received from agents or employees of
10    the  courier  for  processing  at  a  common   location   and
11    redistributed  to  either  other  employees  or agents of the
12    courier for delivery directly to an ultimate  destination  on
13    an  item-by-item  basis, and that (i) will make an investment
14    by a business enterprise of $150,000 or more in  real  estate
15    improvements,  machinery,  or  equipment, (ii) will cause the
16    creation  of  at  least  750  jobs  in  an  enterprise   zone
17    established under the Illinois Enterprise Zone Act, and (iii)
18    is  certified  by  the  Department  of Commerce and Community
19    Affairs as contractually obligated to meet  the  requirements
20    specified  in (i), (ii), and (iii) of this Section within the
21    time period specified in the certificate of  eligibility  for
22    exemption.    Any   business   enterprise  applying  for  the
23    exemption  stated  in  subsection  (b)  shall  apply  to  the
24    Department of Commerce and  Community  Affairs  in  the  form
25    prescribed   by   the   Department   and  shall  provide  any
26    information required by the  Department.  The  Department  of
27    Commerce  and  Community  Affairs  shall determine, within 60
28    days after it receives an application for exemption,  whether
29    the business enterprise meets the criteria prescribed in this
30    subsection.   If  the Department determines that the business
31    enterprise meets the criteria, it shall issue  a  certificate
32    of  eligibility  for  the  exemption in subsection (b) to the
33    business enterprise in the form prescribed by the  Department
                            -4-               LRB9001527DNmbA
 1    of Revenue.  The Department of Commerce and Community Affairs
 2    shall  file  with  the  Department  of Revenue a copy of each
 3    certificate of eligibility for  exemption.  If  the  business
 4    enterprise  has received a certificate of eligibility for the
 5    exemption under Section 3-95 of the Use Tax Act, Section 3-60
 6    of the Service Occupation Tax Act, or  Section  2-75  of  the
 7    Retailers'  Occupation Tax Act, then the enterprise shall not
 8    be required to receive a separate certificate to receive  the
 9    exemption  under  this  Act.  The  Department of Commerce and
10    Community Affairs shall have the power to promulgate rules to
11    carry out  the  provisions  of  this  Section.  Any  business
12    enterprise that is granted a tax exemption under this Section
13    shall repay the exempted tax if the business enterprise fails
14    to comply with the terms and conditions of the certificate of
15    eligibility.   The  business  enterprise  shall  present  the
16    certificate  of  eligibility  to  its   supplier   when   the
17    enterprise  purchases aviation fuel for which an exemption is
18    granted by subsection (b) and a certification by the business
19    enterprise that the aviation fuel  is  exempt  from  taxation
20    under  this  Section.   The  business  enterprise  shall also
21    indicate the exempt status of  each  subsequent  purchase  of
22    aviation fuel on the face of the purchase order.
23        (b)  Subject   to   the  provisions  of  subsection  (a),
24    aviation  fuel  received  for  use  or  consumption  in   the
25    operation  of  an  air  cargo transportation hub facility, as
26    defined in subsection (a), that locates within an  enterprise
27    zone  after  January  1,  1997,  shall be exempt from the tax
28    imposed by this Act for 10 years.
29        Section 15.  The Service Occupation Tax Act is amended by
30    adding Section 3-60 as follows:
31        (35 ILCS 115/3-60 new)
32        Sec.  3-60.  Air  cargo  transportation   hub   facility;
                            -5-               LRB9001527DNmbA
 1    exemption.
 2        (a)  "Air  cargo  transportation  hub  facility"  means a
 3    facility that is operated by  an  express  air  courier  used
 4    primarily  for sorting, handling, and redistribution of mail,
 5    freight, or other cargo received from agents or employees  of
 6    the   courier   for  processing  at  a  common  location  and
 7    redistributed to either other  employees  or  agents  of  the
 8    courier  for  delivery directly to an ultimate destination on
 9    an item-by-item basis, and that (i) will make  an  investment
10    by  a  business enterprise of $150,000 or more in real estate
11    improvements, machinery, or equipment, (ii)  will  cause  the
12    creation   of  at  least  750  jobs  in  an  enterprise  zone
13    established under the Illinois Enterprise Zone Act, and (iii)
14    is certified by the  Department  of  Commerce  and  Community
15    Affairs  as  contractually obligated to meet the requirements
16    specified in (i), (ii), and (iii) of this Section within  the
17    time  period  specified in the certificate of eligibility for
18    exemption.   Any  business  enterprise   applying   for   the
19    exemption  stated  in  subsection  (b)  shall  apply  to  the
20    Department  of  Commerce  and  Community  Affairs in the form
21    prescribed  by  the  Department   and   shall   provide   any
22    information  required  by  the  Department. The Department of
23    Commerce and Community Affairs  shall  determine,  within  60
24    days  after it receives an application for exemption, whether
25    the business enterprise meets the criteria prescribed in this
26    subsection.  If the Department determines that  the  business
27    enterprise  meets  the criteria, it shall issue a certificate
28    of eligibility for the exemption in  subsection  (b)  to  the
29    business  enterprise in the form prescribed by the Department
30    of Revenue.  The Department of Commerce and Community Affairs
31    shall file with the Department of  Revenue  a  copy  of  each
32    certificate  of  eligibility  for  exemption. If the business
33    enterprise has received a certificate of eligibility for  the
34    exemption under Section 3-95 of the Use Tax Act, Section 3-80
                            -6-               LRB9001527DNmbA
 1    of the Service Use Tax Act, or Section 2-75 of the Retailers'
 2    Occupation Tax Act, then the enterprise shall not be required
 3    to  receive  a  separate certificate to receive the exemption
 4    under this Act. The  Department  of  Commerce  and  Community
 5    Affairs shall have the power to promulgate rules to carry out
 6    the provisions of this Section.  Any business enterprise that
 7    is granted a tax exemption under this Section shall repay the
 8    exempted  tax if the business enterprise fails to comply with
 9    the terms and conditions of the certificate  of  eligibility.
10    The  business  enterprise  shall  present  the certificate of
11    eligibility to its supplier  when  the  enterprise  purchases
12    aviation fuel for which an exemption is granted by subsection
13    (b)  and  a certification by the business enterprise that the
14    aviation fuel is exempt from  taxation  under  this  Section.
15    The business enterprise shall also indicate the exempt status
16    of  each  subsequent purchase of aviation fuel on the face of
17    the purchase order.
18        (b)  Subject  to  the  provisions  of   subsection   (a),
19    aviation   fuel  received  for  use  or  consumption  in  the
20    operation of an air cargo  transportation  hub  facility,  as
21    defined  in subsection (a), that locates within an enterprise
22    zone after January 1, 1997, shall  be  exempt  from  the  tax
23    imposed by this Act for 10 years.
24        Section 20.  The Retailers' Occupation Tax Act is amended
25    by adding Section 2-75 as follows:
26        (35 ILCS 120/2-75 new)
27        Sec.   2-75.   Air  cargo  transportation  hub  facility;
28    exemption.
29        (a)  "Air cargo  transportation  hub  facility"  means  a
30    facility  that  is  operated  by  an express air courier used
31    primarily for sorting, handling, and redistribution of  mail,
32    freight,  or other cargo received from agents or employees of
                            -7-               LRB9001527DNmbA
 1    the  courier  for  processing  at  a  common   location   and
 2    redistributed  to  either  other  employees  or agents of the
 3    courier for delivery directly to an ultimate  destination  on
 4    an  item-by-item  basis, and that (i) will make an investment
 5    by a business enterprise of $150,000 or more in  real  estate
 6    improvements,  machinery,  or  equipment, (ii) will cause the
 7    creation  of  at  least  750  jobs  in  an  enterprise   zone
 8    established under the Illinois Enterprise Zone Act, and (iii)
 9    is  certified  by  the  Department  of Commerce and Community
10    Affairs as contractually obligated to meet  the  requirements
11    specified  in (i), (ii), and (iii) of this Section within the
12    time period specified in the certificate of  eligibility  for
13    exemption.    Any   business   enterprise  applying  for  the
14    exemption  stated  in  subsection  (b)  shall  apply  to  the
15    Department of Commerce and  Community  Affairs  in  the  form
16    prescribed   by   the   Department   and  shall  provide  any
17    information required by the  Department.  The  Department  of
18    Commerce  and  Community  Affairs  shall determine, within 60
19    days after it receives an application for exemption,  whether
20    the business enterprise meets the criteria prescribed in this
21    subsection.   If  the Department determines that the business
22    enterprise meets the criteria, it shall issue  a  certificate
23    of  eligibility  for  the  exemption in subsection (b) to the
24    business enterprise in the form prescribed by the  Department
25    of Revenue.  The Department of Commerce and Community Affairs
26    shall  file  with  the  Department  of Revenue a copy of each
27    certificate of eligibility for  exemption.  If  the  business
28    enterprise  has received a certificate of eligibility for the
29    exemption under Section 3-95 of the Use Tax Act, Section 3-80
30    of the Service Use Tax Act, or Section 3-60  of  the  Service
31    Occupation Tax Act, then the enterprise shall not be required
32    to  receive  a  separate certificate to receive the exemption
33    under this Act. The  Department  of  Commerce  and  Community
34    Affairs shall have the power to promulgate rules to carry out
                            -8-               LRB9001527DNmbA
 1    the provisions of this Section.  Any business enterprise that
 2    is granted a tax exemption under this Section shall repay the
 3    exempted  tax if the business enterprise fails to comply with
 4    the terms and conditions of the certificate  of  eligibility.
 5    The  business  enterprise  shall  present  the certificate of
 6    eligibility to its supplier  when  the  enterprise  purchases
 7    aviation fuel for which an exemption is granted by subsection
 8    (b)  and  a certification by the business enterprise that the
 9    aviation fuel is exempt from  taxation  under  this  Section.
10    The business enterprise shall also indicate the exempt status
11    of  each  subsequent purchase of aviation fuel on the face of
12    the purchase order.
13        (b)  Subject  to  the  provisions  of   subsection   (a),
14    aviation   fuel  received  for  use  or  consumption  in  the
15    operation of an air cargo  transportation  hub  facility,  as
16    defined  in subsection (a), that locates within an enterprise
17    zone after January 1, 1997, shall  be  exempt  from  the  tax
18    imposed by this Act for 10 years.
19        Section  99.  Effective date.  This Act takes effect upon
20    becoming law.

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