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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB3822
Introduced 2/25/2009, by Rep. Frank J. Mautino SYNOPSIS AS INTRODUCED:
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35 ILCS 105/3-61 |
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35 ILCS 110/3-51 |
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35 ILCS 115/2d |
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35 ILCS 120/2-51 |
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Amends the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act. With respect to the rolling stock exemption for aircraft and watercraft, requires that greater than 50% of the trips or miles in a 12-month period must be qualifying trips (interstate, for hire). Provides that an election of the trips or mileage method remains in effect for the life of the item (now, during a notice of liability period). Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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HB3822 |
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LRB096 08995 RCE 19134 b |
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| 1 |
| 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:
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| Section 5. The Use Tax Act is amended by changing Section |
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| 3-61 as follows:
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| (35 ILCS 105/3-61)
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| Sec. 3-61. Motor vehicles; trailers; use as rolling stock |
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| definition. |
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| (a) Through
June 30, 2003, "use
as
rolling stock moving
in
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| interstate commerce" in subsections (b) and (c) of Section 3-55 |
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| means for motor
vehicles, as defined in Section 1-146 of the |
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| 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 |
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| has
carried
persons or
property for hire in interstate |
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| commerce, even just between points in Illinois,
if the motor |
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| vehicle and trailer transports persons whose journeys or |
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| property
whose shipments originate or terminate outside |
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| Illinois. This definition
applies to all property purchased for |
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| the purpose of being
attached to those motor vehicles or |
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| trailers as a part thereof.
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| (b) On and after July 1, 2003 and through June 30, 2004, |
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| "use as rolling stock moving in interstate
commerce" in
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HB3822 |
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LRB096 08995 RCE 19134 b |
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| paragraphs (b) and (c) of Section 3-55 occurs for motor |
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| vehicles, as defined in
Section 1-146 of the Illinois Vehicle |
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| Code, when during a 12-month period
the
rolling stock has |
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| carried persons or property for hire in interstate commerce
for |
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| 51% of
its total trips and transports persons whose journeys or |
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| property whose
shipments
originate or terminate outside |
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| Illinois. Trips that are only between points in
Illinois shall
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| not be counted as interstate trips when calculating whether the |
| 9 |
| tangible
personal property
qualifies for the exemption but such |
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| trips shall be included in total trips
taken.
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| (c) Beginning July 1, 2004, "use as rolling stock moving in |
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| interstate commerce" in paragraphs (b) and (c) of Section 3-55 |
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| occurs for motor vehicles, as defined in Section 1-146 of the |
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| Illinois Vehicle Code, when during a 12-month period the |
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| rolling stock has carried persons or property for hire in |
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| interstate commerce for greater than 50% of its total trips for |
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| that period or for greater than 50% of its total miles for that |
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| period. The person claiming the exemption shall make an |
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| election at the time of purchase to use either the trips or |
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| mileage method. Persons who purchased motor vehicles prior to |
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| 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 |
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| the trips or mileage method, the person shall be deemed to have |
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| chosen the mileage method. Any election to use either the trips |
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| or mileage method will remain in effect for that motor vehicle |
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HB3822 |
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LRB096 08995 RCE 19134 b |
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| for any period for which the Department may issue a notice of |
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| tax liability under this Act. |
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| For purposes of determining qualifying trips or miles, |
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| motor vehicles that carry persons or property for hire, even |
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| just between points in Illinois, will be considered used for |
| 6 |
| hire in interstate commerce if the motor vehicle transports |
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| persons whose journeys or property whose shipments originate or |
| 8 |
| terminate outside Illinois. The exemption for motor vehicles
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| used as rolling stock moving in interstate commerce may be
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| 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. |
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| (d) Beginning July 1, 2004, "use as rolling stock moving in |
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| interstate commerce" in paragraphs (b) and (c) of Section 3-55 |
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| occurs for trailers, as defined in Section 1-209 of the |
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| Illinois Vehicle Code, semitrailers as defined in Section 1-187 |
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| of the Illinois Vehicle Code, and pole trailers as defined in |
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| Section 1-161 of the Illinois Vehicle Code, when during a |
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| 12-month period the rolling stock has carried persons or |
| 23 |
| property for hire in interstate commerce for greater than 50% |
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| of its total trips for that period or for greater than 50% of |
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| its total miles for that period. The person claiming the |
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| exemption for a trailer or trailers that will not be dedicated |
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HB3822 |
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LRB096 08995 RCE 19134 b |
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| to a motor vehicle or group of motor vehicles shall make an |
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| election at the time of purchase to use either the trips or |
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| 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. |
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| 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 |
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| such qualifying use by providing documentation of the |
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| following: |
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| (1) If a trailer, semitrailer, or pole trailer is |
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HB3822 |
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LRB096 08995 RCE 19134 b |
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| dedicated to a motor vehicle that qualifies as rolling |
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| stock moving in interstate commerce under subsection (c) of |
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| this Section, then that trailer, semitrailer, or pole |
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| trailer qualifies as rolling stock moving in interstate |
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| commerce under this subsection. |
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| (2) If a trailer, semitrailer, or pole trailer is |
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| dedicated to a group of motor vehicles that all qualify as |
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| rolling stock moving in interstate commerce under |
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| subsection (c) of this Section, then that trailer, |
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| semitrailer, or pole trailer qualifies as rolling stock |
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| moving in interstate commerce under this subsection. |
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| (3) If one or more trailers, semitrailers, or pole |
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| trailers are dedicated to a group of motor vehicles and not |
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| all of those motor vehicles in that group qualify as |
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| rolling stock moving in interstate commerce under |
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| subsection (c) of this Section, then the percentage of |
| 17 |
| those trailers, semitrailers, or pole trailers that |
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| qualifies as rolling stock moving in interstate commerce |
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| under this subsection is equal to the percentage of those |
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| motor vehicles in that group that qualify as rolling stock |
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| moving in interstate commerce under subsection (c) of this |
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| Section to which those trailers, semitrailers, or pole |
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| trailers are dedicated. However, to determine the |
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| qualification for the exemption provided under this item |
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| (3), the mathematical application of the qualifying |
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| percentage to one or more trailers, semitrailers, or pole |
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HB3822 |
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LRB096 08995 RCE 19134 b |
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| trailers under this subpart shall not be allowed as to any |
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| fraction of a trailer, semitrailer, or pole trailer.
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| (e) Beginning July 1, 2009, "use as rolling stock moving in |
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| interstate commerce" in paragraphs (b) and (c) of Section 3-55 |
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| occurs for aircraft and watercraft when during a 12-month |
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| period the rolling stock has carried persons or property for |
| 7 |
| hire in interstate commerce for greater than 50% of its total |
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| trips for that period or for greater than 50% of its total |
| 9 |
| miles for that period. The person claiming the exemption shall |
| 10 |
| make an election at the time of purchase to use either the |
| 11 |
| trips or mileage method. Persons who purchased aircraft or |
| 12 |
| watercraft prior to July 1, 2009 shall make an election to use |
| 13 |
| either the trips or mileage method and document that election |
| 14 |
| in their books and records. If no election is made under this |
| 15 |
| subsection to use the trips or mileage method, the person shall |
| 16 |
| be deemed to have chosen the mileage method. |
| 17 |
| (f) Any election to use either the trips or mileage method |
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| made under the provisions of subsections (c), (d), or (e) of |
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| this Section will remain in effect for the life of that item. |
| 20 |
| (Source: P.A. 95-528, eff. 8-28-07.)
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| Section 10. The Service Use Tax Act is amended by changing |
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| Section 3-51 as follows:
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| (35 ILCS 110/3-51)
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| Sec. 3-51. Motor vehicles; trailers; use as rolling stock |
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HB3822 |
- 7 - |
LRB096 08995 RCE 19134 b |
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| 1 |
| definition. |
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| (a) Through
June 30, 2003, "use
as
rolling stock moving
in
|
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| interstate commerce" in subsection (b) of Section 3-45 means |
| 4 |
| for motor
vehicles, as defined in Section 1-46 of the Illinois |
| 5 |
| Vehicle Code, and
trailers, as defined in Section 1-209 of the |
| 6 |
| Illinois Vehicle Code, when on 15
or more
occasions in a |
| 7 |
| 12-month period the motor vehicle and trailer has carried
|
| 8 |
| persons
or property
for hire in interstate commerce, even just |
| 9 |
| between points in Illinois, if the
motor vehicle and trailer |
| 10 |
| transports persons whose journeys or property
whose shipments |
| 11 |
| originate or terminate outside Illinois. This definition
|
| 12 |
| applies to all property purchased for the purpose of being |
| 13 |
| attached to those
motor
vehicles or trailers as a part thereof.
|
| 14 |
| (b) On and after July 1, 2003 and through June 30, 2004, |
| 15 |
| "use as rolling stock moving in interstate
commerce" in
|
| 16 |
| paragraphs (4) and (4a) of the definition of "sale of service" |
| 17 |
| in Section 2
and subsection (b) of Section 3-45 occurs for |
| 18 |
| motor vehicles, as defined in
Section 1-146 of the Illinois |
| 19 |
| Vehicle Code, when
during a 12-month period the rolling stock |
| 20 |
| has carried persons or property for
hire in
interstate commerce |
| 21 |
| for 51% of its total trips and transports persons whose
|
| 22 |
| journeys or
property whose shipments originate or terminate |
| 23 |
| outside Illinois. Trips that
are only
between points in |
| 24 |
| Illinois shall not be counted as interstate trips when
|
| 25 |
| calculating whether
the tangible personal property qualifies |
| 26 |
| for the exemption but such trips shall
be included
in total |
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HB3822 |
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LRB096 08995 RCE 19134 b |
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| trips taken.
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| (c) Beginning July 1, 2004, "use as rolling stock moving in |
| 3 |
| interstate commerce" in paragraphs (4) and (4a) of the |
| 4 |
| definition of "sale of service" in Section 2 and subsection (b) |
| 5 |
| of Section 3-45 occurs for motor vehicles, as defined in |
| 6 |
| Section 1-146 of the Illinois Vehicle Code, when during a |
| 7 |
| 12-month period the rolling stock has carried persons or |
| 8 |
| property for hire in interstate commerce for greater than 50% |
| 9 |
| of its total trips for that period or for greater than 50% of |
| 10 |
| its total miles for that period. The person claiming the |
| 11 |
| exemption shall make an election at the time of purchase to use |
| 12 |
| either the trips or mileage method. Persons who purchased motor |
| 13 |
| vehicles prior to July 1, 2004 shall make an election to use |
| 14 |
| either the trips or mileage method and document that election |
| 15 |
| in their books and records. If no election is made under this |
| 16 |
| subsection to use the trips or mileage method, the person shall |
| 17 |
| be deemed to have chosen the mileage method. Any election to |
| 18 |
| use either the trips or mileage method will remain in effect |
| 19 |
| for that motor vehicle for any period for which the Department |
| 20 |
| may issue a notice of tax liability under this Act. |
| 21 |
| For purposes of determining qualifying trips or miles, |
| 22 |
| motor vehicles that carry persons or property for hire, even |
| 23 |
| just between points in Illinois, will be considered used for |
| 24 |
| hire in interstate commerce if the motor vehicle transports |
| 25 |
| persons whose journeys or property whose shipments originate or |
| 26 |
| terminate outside Illinois. The exemption for motor vehicles
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HB3822 |
- 9 - |
LRB096 08995 RCE 19134 b |
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| used as rolling stock moving in interstate commerce may be
|
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| claimed only for the following vehicles: (i) motor vehicles |
| 3 |
| whose gross vehicle weight
rating exceeds 16,000 pounds; and |
| 4 |
| (ii) limousines, as defined in Section 1-139.1 of the Illinois |
| 5 |
| Vehicle Code. This definition applies to all property purchased |
| 6 |
| for the purpose of being attached to those motor vehicles as a |
| 7 |
| part thereof. |
| 8 |
| (d) Beginning July 1, 2004, "use as rolling stock moving in |
| 9 |
| interstate commerce" in paragraphs (4) and (4a) of the |
| 10 |
| definition of "sale of service" in Section 2 and subsection (b) |
| 11 |
| of Section 3-45 occurs for trailers, as defined in Section |
| 12 |
| 1-209 of the Illinois Vehicle Code, semitrailers as defined in |
| 13 |
| Section 1-187 of the Illinois Vehicle Code, and pole trailers |
| 14 |
| as defined in Section 1-161 of the Illinois Vehicle Code, when |
| 15 |
| during a 12-month period the rolling stock has carried persons |
| 16 |
| or property for hire in interstate commerce for greater than |
| 17 |
| 50% of its total trips for that period or for greater than 50% |
| 18 |
| of its total miles for that period. The person claiming the |
| 19 |
| exemption for a trailer or trailers that will not be dedicated |
| 20 |
| to a motor vehicle or group of motor vehicles shall make an |
| 21 |
| election at the time of purchase to use either the trips or |
| 22 |
| mileage method. Persons who purchased trailers prior to July 1, |
| 23 |
| 2004 that are not dedicated to a motor vehicle or group of |
| 24 |
| motor vehicles shall make an election to use either the trips |
| 25 |
| or mileage method and document that election in their books and |
| 26 |
| records. If no election is made under this subsection to use |
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|
HB3822 |
- 10 - |
LRB096 08995 RCE 19134 b |
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| 1 |
| the trips or mileage method, the person shall be deemed to have |
| 2 |
| chosen the mileage method. Any election to use either the trips |
| 3 |
| or mileage method will remain in effect for that trailer for |
| 4 |
| any period for which the Department may issue a notice of tax |
| 5 |
| liability under this Act. |
| 6 |
| For purposes of determining qualifying trips or miles, |
| 7 |
| trailers, semitrailers, or pole trailers that carry property |
| 8 |
| for hire, even just between points in Illinois, will be |
| 9 |
| considered used for hire in interstate commerce if the |
| 10 |
| trailers, semitrailers, or pole trailers transport property |
| 11 |
| whose shipments originate or terminate outside Illinois. This |
| 12 |
| definition applies to all property purchased for the purpose of |
| 13 |
| being attached to those trailers, semitrailers, or pole |
| 14 |
| trailers as a part thereof. In lieu of a person providing |
| 15 |
| documentation regarding the qualifying use of each individual |
| 16 |
| trailer, semitrailer, or pole trailer, that person may document |
| 17 |
| such qualifying use by providing documentation of the |
| 18 |
| following: |
| 19 |
| (1) If a trailer, semitrailer, or pole trailer is |
| 20 |
| dedicated to a motor vehicle that qualifies as rolling |
| 21 |
| stock moving in interstate commerce under subsection (c) of |
| 22 |
| this Section, then that trailer, semitrailer, or pole |
| 23 |
| trailer qualifies as rolling stock moving in interstate |
| 24 |
| commerce under this subsection. |
| 25 |
| (2) If a trailer, semitrailer, or pole trailer is |
| 26 |
| dedicated to a group of motor vehicles that all qualify as |
|
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|
HB3822 |
- 11 - |
LRB096 08995 RCE 19134 b |
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|
| 1 |
| rolling stock moving in interstate commerce under |
| 2 |
| subsection (c) of this Section, then that trailer, |
| 3 |
| semitrailer, or pole trailer qualifies as rolling stock |
| 4 |
| moving in interstate commerce under this subsection. |
| 5 |
| (3) If one or more trailers, semitrailers, or pole |
| 6 |
| trailers are dedicated to a group of motor vehicles and not |
| 7 |
| all of those motor vehicles in that group qualify as |
| 8 |
| rolling stock moving in interstate commerce under |
| 9 |
| subsection (c) of this Section, then the percentage of |
| 10 |
| those trailers, semitrailers, or pole trailers that |
| 11 |
| qualifies as rolling stock moving in interstate commerce |
| 12 |
| under this subsection is equal to the percentage of those |
| 13 |
| motor vehicles in that group that qualify as rolling stock |
| 14 |
| moving in interstate commerce under subsection (c) of this |
| 15 |
| Section to which those trailers, semitrailers, or pole |
| 16 |
| trailers are dedicated. However, to determine the |
| 17 |
| qualification for the exemption provided under this item |
| 18 |
| (3), the mathematical application of the qualifying |
| 19 |
| percentage to one or more trailers, semitrailers, or pole |
| 20 |
| trailers under this subpart shall not be allowed as to any |
| 21 |
| fraction of a trailer, semitrailer, or pole trailer.
|
| 22 |
| (e) Beginning July 1, 2009, "use as rolling stock moving in |
| 23 |
| interstate commerce" in paragraphs (4) and (4a) of the |
| 24 |
| definition of "sale of service" in Section 2 and subsection (b) |
| 25 |
| of Section 3-45 occurs for aircraft and watercraft when during |
| 26 |
| a 12-month period the rolling stock has carried persons or |
|
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|
HB3822 |
- 12 - |
LRB096 08995 RCE 19134 b |
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|
|
| 1 |
| property for hire in interstate commerce for greater than 50% |
| 2 |
| of its total trips for that period or for greater than 50% of |
| 3 |
| its total miles for that period. The person claiming the |
| 4 |
| exemption shall make an election at the time of purchase to use |
| 5 |
| either the trips or mileage method. Persons who purchased |
| 6 |
| aircraft or watercraft prior to July 1, 2009 shall make an |
| 7 |
| election to use either the trips or mileage method and document |
| 8 |
| that election in their books and records. If no election is |
| 9 |
| made under this subsection to use the trips or mileage method, |
| 10 |
| the person shall be deemed to have chosen the mileage method. |
| 11 |
| (f) Any election to use either the trips or mileage method |
| 12 |
| made under the provisions of subsections (c), (d), or (e) of |
| 13 |
| this Section will remain in effect for the life of that item. |
| 14 |
| (Source: P.A. 95-528, eff. 8-28-07.)
|
| 15 |
| Section 15. The Service Occupation Tax Act is amended by |
| 16 |
| changing Section 2d as follows:
|
| 17 |
| (35 ILCS 115/2d)
|
| 18 |
| Sec. 2d. Motor vehicles; trailers; use as rolling stock |
| 19 |
| definition. |
| 20 |
| (a) Through June
30, 2003, "use as
rolling stock moving in
|
| 21 |
| interstate commerce" in subsections (d) and (d-1) of the |
| 22 |
| definition of "sale of
service" in Section 2 means for motor |
| 23 |
| vehicles, as defined in Section 1-146 of
the Illinois Vehicle |
| 24 |
| Code, and trailers, as defined in Section 1-209 of the
Illinois |
|
|
|
HB3822 |
- 13 - |
LRB096 08995 RCE 19134 b |
|
|
|
| 1 |
| Vehicle Code, when on 15 or more occasions in a 12-month period |
| 2 |
| the
motor vehicle and trailer has carried persons or property |
| 3 |
| for hire in
interstate commerce, even just between points in |
| 4 |
| Illinois, if the motor vehicle
and trailer transports persons |
| 5 |
| whose journeys or property whose shipments
originate or |
| 6 |
| terminate outside Illinois.
This definition applies to all |
| 7 |
| property purchased for the purpose of being
attached to those |
| 8 |
| motor vehicles or trailers as a part thereof.
|
| 9 |
| (b) On and after July 1, 2003 and through June 30, 2004, |
| 10 |
| "use as rolling stock moving in interstate
commerce" in
|
| 11 |
| paragraphs (d) and (d-1) of the definition of "sale of service" |
| 12 |
| in
Section 2 occurs for motor vehicles, as defined in Section |
| 13 |
| 1-146 of the
Illinois Vehicle Code,
when during a 12-month |
| 14 |
| period the rolling stock has carried persons or property
for |
| 15 |
| hire
in interstate commerce for 51% of its total trips and |
| 16 |
| transports persons whose
journeys or
property whose shipments |
| 17 |
| originate or terminate outside Illinois. Trips that
are only
|
| 18 |
| between points in Illinois will not be counted as interstate |
| 19 |
| trips when
calculating whether
the tangible personal property |
| 20 |
| qualifies for the exemption but such trips will
be included
in |
| 21 |
| total trips taken.
|
| 22 |
| (c) Beginning July 1, 2004, "use as rolling stock moving in |
| 23 |
| interstate commerce" in paragraphs (d) and (d-1) of the |
| 24 |
| definition of "sale of service" in Section 2 occurs for motor |
| 25 |
| vehicles, as defined in Section 1-146 of the Illinois Vehicle |
| 26 |
| Code, when during a 12-month period the rolling stock has |
|
|
|
HB3822 |
- 14 - |
LRB096 08995 RCE 19134 b |
|
|
|
| 1 |
| carried persons or property for hire in interstate commerce for |
| 2 |
| greater than 50% of its total trips for that period or for |
| 3 |
| greater than 50% of its total miles for that period. The person |
| 4 |
| claiming the exemption shall make an election at the time of |
| 5 |
| purchase to use either the trips or mileage method. Persons who |
| 6 |
| purchased motor vehicles prior to July 1, 2004 shall make an |
| 7 |
| election to use either the trips or mileage method and document |
| 8 |
| that election in their books and records. If no election is |
| 9 |
| made under this subsection to use the trips or mileage method, |
| 10 |
| the person shall be deemed to have chosen the mileage method. |
| 11 |
| Any election to use either the trips or mileage method will |
| 12 |
| remain in effect for that motor vehicle for any period for |
| 13 |
| which the Department may issue a notice of tax liability under |
| 14 |
| this Act. |
| 15 |
| For purposes of determining qualifying trips or miles, |
| 16 |
| motor vehicles that carry persons or property for hire, even |
| 17 |
| just between points in Illinois, will be considered used for |
| 18 |
| hire in interstate commerce if the motor vehicle transports |
| 19 |
| persons whose journeys or property whose shipments originate or |
| 20 |
| terminate outside Illinois. The exemption for motor vehicles
|
| 21 |
| used as rolling stock moving in interstate commerce may be
|
| 22 |
| claimed only for the following vehicles: (i) motor vehicles |
| 23 |
| whose gross vehicle weight
rating exceeds 16,000 pounds; and |
| 24 |
| (ii) limousines, as defined in Section 1-139.1 of the Illinois |
| 25 |
| Vehicle Code. This definition applies to all property purchased |
| 26 |
| for the purpose of being attached to those motor vehicles as a |
|
|
|
HB3822 |
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LRB096 08995 RCE 19134 b |
|
|
|
| 1 |
| part thereof. |
| 2 |
| (d) Beginning July 1, 2004, "use as rolling stock moving in |
| 3 |
| interstate commerce" in paragraphs (d) and (d-1) of the |
| 4 |
| definition of "sale of service" in Section 2 occurs for |
| 5 |
| trailers, as defined in Section 1-209 of the Illinois Vehicle |
| 6 |
| Code, semitrailers as defined in Section 1-187 of the Illinois |
| 7 |
| Vehicle Code, and pole trailers as defined in Section 1-161 of |
| 8 |
| the Illinois Vehicle Code, when during a 12-month period the |
| 9 |
| rolling stock has carried persons or property for hire in |
| 10 |
| interstate commerce for greater than 50% of its total trips for |
| 11 |
| that period or for greater than 50% of its total miles for that |
| 12 |
| period. The person claiming the exemption for a trailer or |
| 13 |
| trailers that will not be dedicated to a motor vehicle or group |
| 14 |
| of motor vehicles shall make an election at the time of |
| 15 |
| purchase to use either the trips or mileage method. Persons who |
| 16 |
| purchased trailers prior to July 1, 2004 that are not dedicated |
| 17 |
| to a motor vehicle or group of motor vehicles shall make an |
| 18 |
| election to use either the trips or mileage method and document |
| 19 |
| that election in their books and records. If no election is |
| 20 |
| made under this subsection to use the trips or mileage method, |
| 21 |
| the person shall be deemed to have chosen the mileage method. |
| 22 |
| Any election to use either the trips or mileage method will |
| 23 |
| remain in effect for that trailer for any period for which the |
| 24 |
| Department may issue a notice of tax liability under this Act. |
| 25 |
| For purposes of determining qualifying trips or miles, |
| 26 |
| trailers, semitrailers, or pole trailers that carry property |
|
|
|
HB3822 |
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LRB096 08995 RCE 19134 b |
|
|
|
| 1 |
| for hire, even just between points in Illinois, will be |
| 2 |
| considered used for hire in interstate commerce if the |
| 3 |
| trailers, semitrailers, or pole trailers transport property |
| 4 |
| whose shipments originate or terminate outside Illinois. This |
| 5 |
| definition applies to all property purchased for the purpose of |
| 6 |
| being attached to those trailers, semitrailers, or pole |
| 7 |
| trailers as a part thereof. In lieu of a person providing |
| 8 |
| documentation regarding the qualifying use of each individual |
| 9 |
| trailer, semitrailer, or pole trailer, that person may document |
| 10 |
| such qualifying use by providing documentation of the |
| 11 |
| following: |
| 12 |
| (1) If a trailer, semitrailer, or pole trailer is |
| 13 |
| dedicated to a motor vehicle that qualifies as rolling |
| 14 |
| stock moving in interstate commerce under subsection (c) of |
| 15 |
| this Section, then that trailer, semitrailer, or pole |
| 16 |
| trailer qualifies as rolling stock moving in interstate |
| 17 |
| commerce under this subsection. |
| 18 |
| (2) If a trailer, semitrailer, or pole trailer is |
| 19 |
| dedicated to a group of motor vehicles that all qualify as |
| 20 |
| rolling stock moving in interstate commerce under |
| 21 |
| subsection (c) of this Section, then that trailer, |
| 22 |
| semitrailer, or pole trailer qualifies as rolling stock |
| 23 |
| moving in interstate commerce under this subsection. |
| 24 |
| (3) If one or more trailers, semitrailers, or pole |
| 25 |
| trailers are dedicated to a group of motor vehicles and not |
| 26 |
| all of those motor vehicles in that group qualify as |
|
|
|
HB3822 |
- 17 - |
LRB096 08995 RCE 19134 b |
|
|
|
| 1 |
| rolling stock moving in interstate commerce under |
| 2 |
| subsection (c) of this Section, then the percentage of |
| 3 |
| those trailers, semitrailers, or pole trailers that |
| 4 |
| qualifies as rolling stock moving in interstate commerce |
| 5 |
| under this subsection is equal to the percentage of those |
| 6 |
| motor vehicles in that group that qualify as rolling stock |
| 7 |
| moving in interstate commerce under subsection (c) of this |
| 8 |
| Section to which those trailers, semitrailers, or pole |
| 9 |
| trailers are dedicated. However, to determine the |
| 10 |
| qualification for the exemption provided under this item |
| 11 |
| (3), the mathematical application of the qualifying |
| 12 |
| percentage to one or more trailers, semitrailers, or pole |
| 13 |
| trailers under this subpart shall not be allowed as to any |
| 14 |
| fraction of a trailer, semitrailer, or pole trailer.
|
| 15 |
| (e) Beginning July 1, 2009, "use as rolling stock moving in |
| 16 |
| interstate commerce" in paragraphs (d) and (d-1) of the |
| 17 |
| definition of "sale of service" in Section 2 occurs for |
| 18 |
| aircraft and watercraft when during a 12-month period the |
| 19 |
| rolling stock has carried persons or property for hire in |
| 20 |
| interstate commerce for greater than 50% of its total trips for |
| 21 |
| that period or for greater than 50% of its total miles for that |
| 22 |
| period. The person claiming the exemption shall make an |
| 23 |
| election at the time of purchase to use either the trips or |
| 24 |
| mileage method. Persons who purchased aircraft or watercraft |
| 25 |
| prior to July 1, 2009 shall make an election to use either the |
| 26 |
| trips or mileage method and document that election in their |
|
|
|
HB3822 |
- 18 - |
LRB096 08995 RCE 19134 b |
|
|
|
| 1 |
| books and records. If no election is made under this subsection |
| 2 |
| to use the trips or mileage method, the person shall be deemed |
| 3 |
| to have chosen the mileage method. |
| 4 |
| (f) Any election to use either the trips or mileage method |
| 5 |
| made under the provisions of subsections (c), (d), or (e) of |
| 6 |
| this Section will remain in effect for the life of that item. |
| 7 |
| (Source: P.A. 95-528, eff. 8-28-07.)
|
| 8 |
| Section 20. The Retailers' Occupation Tax Act is amended by |
| 9 |
| changing Section 2-51 as follows:
|
| 10 |
| (35 ILCS 120/2-51)
|
| 11 |
| Sec. 2-51. Motor vehicles; trailers; use as rolling stock |
| 12 |
| definition. |
| 13 |
| (a) Through
June 30, 2003, "use
as
rolling stock moving
in
|
| 14 |
| interstate commerce" in
paragraphs (12) and (13) of Section 2-5 |
| 15 |
| means for motor vehicles, as defined in
Section 1-146 of the |
| 16 |
| Illinois Vehicle Code, and trailers, as defined in Section
|
| 17 |
| 1-209 of the Illinois Vehicle Code, when on 15 or more |
| 18 |
| occasions in a
12-month period the motor vehicle and trailer |
| 19 |
| has carried persons or property
for
hire in
interstate |
| 20 |
| commerce, even just between points in Illinois, if the motor |
| 21 |
| vehicle
and trailer transports persons whose journeys or |
| 22 |
| property whose shipments
originate or terminate outside |
| 23 |
| Illinois. This
definition applies to all
property purchased for |
| 24 |
| the purpose of being attached to those motor vehicles or
|
|
|
|
HB3822 |
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LRB096 08995 RCE 19134 b |
|
|
|
| 1 |
| trailers as a part thereof.
|
| 2 |
| (b) On and after July 1, 2003 and through June 30, 2004, |
| 3 |
| "use as rolling stock moving in interstate
commerce" in
|
| 4 |
| paragraphs (12) and (13) of Section 2-5 occurs for motor |
| 5 |
| vehicles, as defined
in Section 1-146 of the Illinois Vehicle |
| 6 |
| Code, when during a 12-month
period the
rolling stock has |
| 7 |
| carried persons or property for hire in interstate commerce
for |
| 8 |
| 51% of
its total trips and transports persons whose journeys or |
| 9 |
| property whose
shipments
originate or terminate outside |
| 10 |
| Illinois. Trips that are only between points in
Illinois shall
|
| 11 |
| not be counted as interstate trips when calculating whether the |
| 12 |
| tangible
personal property
qualifies for the exemption but such |
| 13 |
| trips shall be included in total trips
taken.
|
| 14 |
| (c) Beginning July 1, 2004, "use as rolling stock moving in |
| 15 |
| interstate commerce" in paragraphs (12) and (13) of Section 2-5 |
| 16 |
| occurs for motor vehicles, as defined in Section 1-146 of the |
| 17 |
| Illinois Vehicle Code, when during a 12-month period the |
| 18 |
| rolling stock has carried persons or property for hire in |
| 19 |
| interstate commerce for greater than 50% of its total trips for |
| 20 |
| that period or for greater than 50% of its total miles for that |
| 21 |
| period. The person claiming the exemption shall make an |
| 22 |
| election at the time of purchase to use either the trips or |
| 23 |
| mileage method. Persons who purchased motor vehicles prior to |
| 24 |
| July 1, 2004 shall make an election to use either the trips or |
| 25 |
| mileage method and document that election in their books and |
| 26 |
| records. If no election is made under this subsection to use |
|
|
|
HB3822 |
- 20 - |
LRB096 08995 RCE 19134 b |
|
|
|
| 1 |
| the trips or mileage method, the person shall be deemed to have |
| 2 |
| chosen the mileage method. Any election to use either the trips |
| 3 |
| or mileage method will remain in effect for that motor vehicle |
| 4 |
| for any period for which the Department may issue a notice of |
| 5 |
| tax liability under 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 (12) and (13) of Section 2-5 |
| 21 |
| occurs for trailers, as defined in Section 1-209 of the |
| 22 |
| Illinois Vehicle Code, semitrailers as defined in Section 1-187 |
| 23 |
| of the Illinois Vehicle Code, and pole trailers as defined in |
| 24 |
| Section 1-161 of the Illinois Vehicle Code, when during a |
| 25 |
| 12-month period the rolling stock has carried persons or |
| 26 |
| property for hire in interstate commerce for greater than 50% |
|
|
|
HB3822 |
- 21 - |
LRB096 08995 RCE 19134 b |
|
|
|
| 1 |
| of its total trips for that period or for greater than 50% of |
| 2 |
| its total miles for that period. The person claiming the |
| 3 |
| exemption for a trailer or trailers that will not be dedicated |
| 4 |
| to a motor vehicle or group of motor vehicles shall make an |
| 5 |
| election at the time of purchase to use either the trips or |
| 6 |
| mileage method. Persons who purchased trailers prior to July 1, |
| 7 |
| 2004 that are not dedicated to a motor vehicle or group of |
| 8 |
| motor vehicles shall make an election to use either the trips |
| 9 |
| or mileage method and document that election in their books and |
| 10 |
| records. If no election is made under this subsection to use |
| 11 |
| the trips or mileage method, the person shall be deemed to have |
| 12 |
| chosen the mileage method. Any election to use either the trips |
| 13 |
| or mileage method will remain in effect for that trailer for |
| 14 |
| any period for which the Department may issue a notice of tax |
| 15 |
| 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 |
|
|
|
HB3822 |
- 22 - |
LRB096 08995 RCE 19134 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 |
|
|
|
HB3822 |
- 23 - |
LRB096 08995 RCE 19134 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 |
| (e) Beginning July 1, 2009, "use as rolling stock moving in |
| 7 |
| interstate commerce" in paragraphs (12) and (13) of Section 2-5 |
| 8 |
| occurs for aircraft and watercraft when during a 12-month |
| 9 |
| period the rolling stock has carried persons or property for |
| 10 |
| hire in interstate commerce for greater than 50% of its total |
| 11 |
| trips for that period or for greater than 50% of its total |
| 12 |
| miles for that period. The person claiming the exemption shall |
| 13 |
| make an election at the time of purchase to use either the |
| 14 |
| trips or mileage method. Persons who purchased aircraft or |
| 15 |
| watercraft prior to July 1, 2009 shall make an election to use |
| 16 |
| either the trips or mileage method and document that election |
| 17 |
| in their books and records. If no election is made under this |
| 18 |
| subsection to use the trips or mileage method, the person shall |
| 19 |
| be deemed to have chosen the mileage method. |
| 20 |
| (f) Any election to use either the trips or mileage method |
| 21 |
| made under the provisions of subsections (c), (d), or (e) of |
| 22 |
| this Section will remain in effect for the life of that item. |
| 23 |
| (Source: P.A. 95-528, eff. 8-28-07.)
|
| 24 |
| Section 99. Effective date. This Act takes effect upon |
| 25 |
| becoming law.
|