Senate Sponsors: HAWKINSON-SHADID-MADIGAN,R-CLAYBORNE. House Sponsors: LEITCH-SLONE-SMITH,MICHAEL-MOFFITT Short description: OCC & USE-AVIATION FUEL-EXEMPT Synopsis of Bill as introduced: 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. SENATE AMENDMENT NO. 1. Provides that aviation fuel received for use or consumption in the operation of an air cargo transportation hub facility that locates within an enterprise zone or on a federal air force base (now, within an enterprise zone) after January 1, 1997 shall be exempt from the use tax, service use tax, service occupation tax, and retailers' occupation tax for 10 years. Requires a facility to make an investment of $35,000,000 or more (now, $150,000) in real estate improvements, machinery, or equipment to be an "air cargo transportation hub facility". SENATE AMENDMENT NO. 2. Requires that the business enterprise be an out-of-State business enterprise locating in Illinois in order to qualify for the tax exemptions. HOUSE AMENDMENT NO. 1. Deletes reference to: 35 ILCS 105/3-95 new 35 ILCS 110/3-80 new 35 ILCS 115/3-60 new 35 ILCS 120/2-75 new Adds reference to: 35 ILCS 105/12 from Ch. 120, par. 440i 35 ILCS 110/12 35 ILCS 115/12 35 ILCS 120/1i 35 ILCS 120/1j.1 new 35 ILCS 120/1j.2 new Deletes everything. Amends the Retailers' Occupation Tax Act. Provides that a High Impact Service Facility is a facility used primarily for the sorting, handling, and redistribution of mail, freight, cargo, or other parcels (now single item non- fungible parcels). Provides that the Facility must make an investment in a business enterprise project of $100,000,000 (now an investment by a business enterprise of $150,000,000) and cause the creation of at least 750 to 1,000 jobs or more (now at least 1,000 jobs). Provides that a certification of eligibility for exemption shall be presented by the business enterprise to its supplier when making the purchase of jet fuel and petroleum products for which an exemption is granted under this Act, together with a certification by the business enterprise that the jet fuel and petroleum product are exempt from taxation by indicating the exempt status of each subsequent purchase on the face of the purchase order. Creates an exemption for jet fuel and petroleum used in the operation of high impact service facilities located within an enterprise zone. Provides that the Department of Commerce and Community Affairs shall promulgate rules to define jet fuel and petroleum products eligible for the exemption. Provides that the minimum period for which the exemption shall be granted is 10 years, regardless of the duration of the enterprise zone in which the project is located. Provides that this exemption and the exemption from additional charges in the Public Utilities Act are mutually exclusive. Amends the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act. Provides that the exemption for jet fuel and petroleum used in the operation of high impact service facilities shall apply under these Acts if not inconsistent with the provisions of these Acts. Last action on Bill: PUBLIC ACT.............................. 90-0042 Last action date: 97-07-02 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 2 END OF INQUIRY Full Text Bill Status