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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.