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90_SB0549eng
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
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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 an out-of-State business enterprise locating in Illinois
18 of $35,000,000 or more in real estate improvements,
19 machinery, or equipment, (ii) will cause the creation of at
20 least 750 jobs in an enterprise zone established under the
21 Illinois Enterprise Zone Act or on a federal air force base,
22 and (iii) is certified by the Department of Commerce and
23 Community Affairs as contractually obligated to meet the
24 requirements specified in (i), (ii), and (iii) of this
25 Section within the time period specified in the certificate
26 of eligibility for exemption. Any business enterprise
27 applying for the exemption stated in subsection (b) shall
28 apply to the Department of Commerce and Community Affairs in
29 the form prescribed by the Department and shall provide any
30 information required by the Department. The Department of
31 Commerce and Community Affairs shall determine, within 60
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1 days after it receives an application for exemption, whether
2 the business enterprise meets the criteria prescribed in this
3 subsection. If the Department determines that the business
4 enterprise meets the criteria, it shall issue a certificate
5 of eligibility for the exemption in subsection (b) to the
6 business enterprise in the form prescribed by the Department
7 of Revenue. The Department of Commerce and Community Affairs
8 shall file with the Department of Revenue a copy of each
9 certificate of eligibility for exemption. If the business
10 enterprise has received a certificate of eligibility for the
11 exemption under Section 3-80 of the Service Use Tax Act,
12 Section 3-60 of the Service Occupation Tax Act, or Section
13 2-75 of the Retailers' Occupation Tax Act, then the
14 enterprise shall not be required to receive a separate
15 certificate to receive the exemption under this Act. The
16 Department of Commerce and Community Affairs shall have the
17 power to promulgate rules to carry out the provisions of this
18 Section. Any business enterprise that is granted a tax
19 exemption under this Section shall repay the exempted tax if
20 the business enterprise fails to comply with the terms and
21 conditions of the certificate of eligibility. The business
22 enterprise shall present the certificate of eligibility to
23 its supplier when the enterprise purchases aviation fuel for
24 which an exemption is granted by subsection (b) and a
25 certification by the business enterprise that the aviation
26 fuel is exempt from taxation under this Section. The
27 business enterprise shall also indicate the exempt status of
28 each subsequent purchase of aviation fuel on the face of the
29 purchase order.
30 (b) Subject to the provisions of subsection (a),
31 aviation fuel received for use or consumption in the
32 operation of an air cargo transportation hub facility, as
33 defined in subsection (a), that locates within an enterprise
34 zone or on a federal air force base after January 1, 1997,
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1 shall be exempt from the tax imposed by this Act for 10
2 years.
3 Section 10. The Service Use Tax Act is amended by adding
4 Section 3-80 as follows:
5 (35 ILCS 110/3-80 new)
6 Sec. 3-80. Air cargo transportation hub facility;
7 exemption.
8 (a) "Air cargo transportation hub facility" means a
9 facility that is operated by an express air courier used
10 primarily for sorting, handling, and redistribution of mail,
11 freight, or other cargo received from agents or employees of
12 the courier for processing at a common location and
13 redistributed to either other employees or agents of the
14 courier for delivery directly to an ultimate destination on
15 an item-by-item basis, and that (i) will make an investment
16 by an out-of-State business enterprise locating in Illinois
17 of $35,000,000 or more in real estate improvements,
18 machinery, or equipment, (ii) will cause the creation of at
19 least 750 jobs in an enterprise zone established under the
20 Illinois Enterprise Zone Act or on a federal air force base,
21 and (iii) is certified by the Department of Commerce and
22 Community Affairs as contractually obligated to meet the
23 requirements specified in (i), (ii), and (iii) of this
24 Section within the time period specified in the certificate
25 of eligibility for exemption. Any business enterprise
26 applying for the exemption stated in subsection (b) shall
27 apply to the Department of Commerce and Community Affairs in
28 the form 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
32 the business enterprise meets the criteria prescribed in this
SB549 Engrossed -4- LRB9001527DNmbA
1 subsection. If the Department determines that the business
2 enterprise meets the criteria, it shall issue a certificate
3 of eligibility for the exemption in subsection (b) to the
4 business enterprise in the form prescribed by the Department
5 of Revenue. The Department of Commerce and Community Affairs
6 shall file with the Department of Revenue a copy of each
7 certificate of eligibility for exemption. If the business
8 enterprise has received a certificate of eligibility for the
9 exemption under Section 3-95 of the Use Tax Act, Section 3-60
10 of the Service Occupation Tax Act, or Section 2-75 of the
11 Retailers' Occupation Tax Act, then the enterprise shall not
12 be required to receive a separate certificate to receive the
13 exemption under this Act. The Department of Commerce and
14 Community Affairs shall have the power to promulgate rules to
15 carry out the provisions of this Section. Any business
16 enterprise that is granted a tax exemption under this Section
17 shall repay the exempted tax if the business enterprise fails
18 to comply with the terms and conditions of the certificate of
19 eligibility. The business enterprise shall present the
20 certificate of eligibility to its supplier when the
21 enterprise purchases aviation fuel for which an exemption is
22 granted by subsection (b) and a certification by the business
23 enterprise that the aviation fuel is exempt from taxation
24 under this Section. The business enterprise shall also
25 indicate the exempt status of each subsequent purchase of
26 aviation fuel on the face of the purchase order.
27 (b) Subject to the provisions of subsection (a),
28 aviation fuel received for use or consumption in the
29 operation of an air cargo transportation hub facility, as
30 defined in subsection (a), that locates within an enterprise
31 zone or on a federal air force base after January 1, 1997,
32 shall be exempt from the tax imposed by this Act for 10
33 years.
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1 Section 15. The Service Occupation Tax Act is amended by
2 adding Section 3-60 as follows:
3 (35 ILCS 115/3-60 new)
4 Sec. 3-60. 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 an out-of-State business enterprise locating in Illinois
15 of $35,000,000 or more in real estate improvements,
16 machinery, or equipment, (ii) will cause the creation of at
17 least 750 jobs in an enterprise zone established under the
18 Illinois Enterprise Zone Act or on a federal air force base,
19 and (iii) is certified by the Department of Commerce and
20 Community Affairs as contractually obligated to meet the
21 requirements specified in (i), (ii), and (iii) of this
22 Section within the time period specified in the certificate
23 of eligibility for exemption. Any business enterprise
24 applying for the exemption stated in subsection (b) shall
25 apply to the Department of Commerce and Community Affairs in
26 the form prescribed by the Department and shall provide any
27 information required by the Department. The Department of
28 Commerce and Community Affairs shall determine, within 60
29 days after it receives an application for exemption, whether
30 the business enterprise meets the criteria prescribed in this
31 subsection. If the Department determines that the business
32 enterprise meets the criteria, it shall issue a certificate
33 of eligibility for the exemption in subsection (b) to the
SB549 Engrossed -6- LRB9001527DNmbA
1 business enterprise in the form prescribed by the Department
2 of Revenue. The Department of Commerce and Community Affairs
3 shall file with the Department of Revenue a copy of each
4 certificate of eligibility for exemption. If the business
5 enterprise has received a certificate of eligibility for the
6 exemption under Section 3-95 of the Use Tax Act, Section 3-80
7 of the Service Use Tax Act, or Section 2-75 of the Retailers'
8 Occupation Tax Act, then the enterprise shall not be required
9 to receive a separate certificate to receive the exemption
10 under this Act. The Department of Commerce and Community
11 Affairs shall have the power to promulgate rules to carry out
12 the provisions of this Section. Any business enterprise that
13 is granted a tax exemption under this Section shall repay the
14 exempted tax if the business enterprise fails to comply with
15 the terms and conditions of the certificate of eligibility.
16 The business enterprise shall present the certificate of
17 eligibility to its supplier when the enterprise purchases
18 aviation fuel for which an exemption is granted by subsection
19 (b) and a certification by the business enterprise that the
20 aviation fuel is exempt from taxation under this Section.
21 The business enterprise shall also indicate the exempt status
22 of each subsequent purchase of aviation fuel on the face of
23 the purchase order.
24 (b) Subject to the provisions of subsection (a),
25 aviation fuel received for use or consumption in the
26 operation of an air cargo transportation hub facility, as
27 defined in subsection (a), that locates within an enterprise
28 zone or on a federal air force base after January 1, 1997,
29 shall be exempt from the tax imposed by this Act for 10
30 years.
31 Section 20. The Retailers' Occupation Tax Act is amended
32 by adding Section 2-75 as follows:
SB549 Engrossed -7- LRB9001527DNmbA
1 (35 ILCS 120/2-75 new)
2 Sec. 2-75. Air cargo transportation hub facility;
3 exemption.
4 (a) "Air cargo transportation hub facility" means a
5 facility that is operated by an express air courier used
6 primarily for sorting, handling, and redistribution of mail,
7 freight, or other cargo received from agents or employees of
8 the courier for processing at a common location and
9 redistributed to either other employees or agents of the
10 courier for delivery directly to an ultimate destination on
11 an item-by-item basis, and that (i) will make an investment
12 by an out-of-State business enterprise locating in Illinois
13 of $35,000,000 or more in real estate improvements,
14 machinery, or equipment, (ii) will cause the creation of at
15 least 750 jobs in an enterprise zone established under the
16 Illinois Enterprise Zone Act or on a federal air force base,
17 and (iii) is certified by the Department of Commerce and
18 Community Affairs as contractually obligated to meet the
19 requirements specified in (i), (ii), and (iii) of this
20 Section within the time period specified in the certificate
21 of eligibility for exemption. Any business enterprise
22 applying for the exemption stated in subsection (b) shall
23 apply to the Department of Commerce and Community Affairs in
24 the form prescribed by the Department and shall provide any
25 information required by the Department. The Department of
26 Commerce and Community Affairs shall determine, within 60
27 days after it receives an application for exemption, whether
28 the business enterprise meets the criteria prescribed in this
29 subsection. If the Department determines that the business
30 enterprise meets the criteria, it shall issue a certificate
31 of eligibility for the exemption in subsection (b) to the
32 business enterprise in the form prescribed by the Department
33 of Revenue. The Department of Commerce and Community Affairs
34 shall file with the Department of Revenue a copy of each
SB549 Engrossed -8- LRB9001527DNmbA
1 certificate of eligibility for exemption. If the business
2 enterprise has received a certificate of eligibility for the
3 exemption under Section 3-95 of the Use Tax Act, Section 3-80
4 of the Service Use Tax Act, or Section 3-60 of the Service
5 Occupation Tax Act, then the enterprise shall not be required
6 to receive a separate certificate to receive the exemption
7 under this Act. The Department of Commerce and Community
8 Affairs shall have the power to promulgate rules to carry out
9 the provisions of this Section. Any business enterprise that
10 is granted a tax exemption under this Section shall repay the
11 exempted tax if the business enterprise fails to comply with
12 the terms and conditions of the certificate of eligibility.
13 The business enterprise shall present the certificate of
14 eligibility to its supplier when the enterprise purchases
15 aviation fuel for which an exemption is granted by subsection
16 (b) and a certification by the business enterprise that the
17 aviation fuel is exempt from taxation under this Section.
18 The business enterprise shall also indicate the exempt status
19 of each subsequent purchase of aviation fuel on the face of
20 the purchase order.
21 (b) Subject to the provisions of subsection (a),
22 aviation fuel received for use or consumption in the
23 operation of an air cargo transportation hub facility, as
24 defined in subsection (a), that locates within an enterprise
25 zone or on a federal air force base after January 1, 1997,
26 shall be exempt from the tax imposed by this Act for 10
27 years.
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.