Bill Text: IL SB2207 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, for aircraft purchased on or after January 1, 2024, "use as rolling stock moving in interstate commerce" occurs when, during a 24-month period (currently, a 12-month period), the rolling stock has carried persons or property for hire in interstate commerce for more than 50% of its total trips for that period or for more than 50% of its total miles for that period. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-03-15 - Rule 3-9(a) / Re-referred to Assignments [SB2207 Detail]

Download: Illinois-2023-SB2207-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2207 Introduced 2/10/2023, by Sen. Dale Fowler SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-61
35 ILCS 110/3-51
35 ILCS 115/2d
35 ILCS 120/2-51
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, for aircraft purchased on or after January 1, 2024, "use as rolling stock moving in interstate commerce" occurs when, during a 24-month period (currently, a 12-month period), the rolling stock has carried persons or property for hire in interstate commerce for more than 50% of its total trips for that period or for more than 50% of its total miles for that period. Effective immediately.
LRB103 28000 HLH 54379 b
A BILL FOR
SB2207 LRB103 28000 HLH 54379 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Use Tax Act is amended by changing Section
3-61 as follows:
(35 ILCS 105/3-61)
Sec. 3-61. Motor vehicles; trailers; use as rolling stock
definition.
(a) (Blank).
(b) (Blank).
(c) This subsection (c) applies to motor vehicles, other
than limousines, purchased through June 30, 2017. For motor
vehicles, other than limousines, purchased on or after July 1,
2017, subsection (d-5) applies. This subsection (c) applies to
limousines purchased before, on, or after July 1, 2017. "Use
as rolling stock moving in interstate commerce" in paragraph
(c) of Section 3-55 occurs for motor vehicles, as defined in
Section 1-146 of the Illinois Vehicle Code, when during a
12-month period the rolling stock has carried persons or
property for hire in interstate commerce for greater than 50%
of its total trips for that period or for greater than 50% of
its total miles for that period. The person claiming the
exemption shall make an election at the time of purchase to use

SB2207 - 2 - LRB103 28000 HLH 54379 b
either the trips or mileage method. Persons who purchased
motor vehicles prior to July 1, 2004 shall make an election to
use either the trips or mileage method and document that
election in their books and records. If no election is made
under this subsection to use the trips or mileage method, the
person shall be deemed to have chosen the mileage method.
For purposes of determining qualifying trips or miles,
motor vehicles that carry persons or property for hire, even
just between points in Illinois, will be considered used for
hire in interstate commerce if the motor vehicle transports
persons whose journeys or property whose shipments originate
or terminate outside Illinois. The exemption for motor
vehicles used as rolling stock moving in interstate commerce
may be claimed only for the following vehicles: (i) motor
vehicles whose gross vehicle weight rating exceeds 16,000
pounds; and (ii) limousines, as defined in Section 1-139.1 of
the Illinois Vehicle Code. Through June 30, 2017, this
definition applies to all property purchased for the purpose
of being attached to those motor vehicles as a part thereof. On
and after July 1, 2017, this definition applies to property
purchased for the purpose of being attached to limousines as a
part thereof.
(d) For purchases made through June 30, 2017, "use as
rolling stock moving in interstate commerce" in paragraph (c)
of Section 3-55 occurs for trailers, as defined in Section
1-209 of the Illinois Vehicle Code, semitrailers as defined in

SB2207 - 3 - LRB103 28000 HLH 54379 b
Section 1-187 of the Illinois Vehicle Code, and pole trailers
as defined in Section 1-161 of the Illinois Vehicle Code, when
during a 12-month period the rolling stock has carried persons
or property for hire in interstate commerce for greater than
50% of its total trips for that period or for greater than 50%
of its total miles for that period. The person claiming the
exemption for a trailer or trailers that will not be dedicated
to a motor vehicle or group of motor vehicles shall make an
election at the time of purchase to use either the trips or
mileage method. Persons who purchased trailers prior to July
1, 2004 that are not dedicated to a motor vehicle or group of
motor vehicles shall make an election to use either the trips
or mileage method and document that election in their books
and records. If no election is made under this subsection to
use the trips or mileage method, the person shall be deemed to
have chosen the mileage method.
For purposes of determining qualifying trips or miles,
trailers, semitrailers, or pole trailers that carry property
for hire, even just between points in Illinois, will be
considered used for hire in interstate commerce if the
trailers, semitrailers, or pole trailers transport property
whose shipments originate or terminate outside Illinois. This
definition applies to all property purchased for the purpose
of being attached to those trailers, semitrailers, or pole
trailers as a part thereof. In lieu of a person providing
documentation regarding the qualifying use of each individual

SB2207 - 4 - LRB103 28000 HLH 54379 b
trailer, semitrailer, or pole trailer, that person may
document such qualifying use by providing documentation of the
following:
(1) If a trailer, semitrailer, or pole trailer is
dedicated to a motor vehicle that qualifies as rolling
stock moving in interstate commerce under subsection (c)
of this Section, then that trailer, semitrailer, or pole
trailer qualifies as rolling stock moving in interstate
commerce under this subsection.
(2) If a trailer, semitrailer, or pole trailer is
dedicated to a group of motor vehicles that all qualify as
rolling stock moving in interstate commerce under
subsection (c) of this Section, then that trailer,
semitrailer, or pole trailer qualifies as rolling stock
moving in interstate commerce under this subsection.
(3) If one or more trailers, semitrailers, or pole
trailers are dedicated to a group of motor vehicles and
not all of those motor vehicles in that group qualify as
rolling stock moving in interstate commerce under
subsection (c) of this Section, then the percentage of
those trailers, semitrailers, or pole trailers that
qualifies as rolling stock moving in interstate commerce
under this subsection is equal to the percentage of those
motor vehicles in that group that qualify as rolling stock
moving in interstate commerce under subsection (c) of this
Section to which those trailers, semitrailers, or pole

SB2207 - 5 - LRB103 28000 HLH 54379 b
trailers are dedicated. However, to determine the
qualification for the exemption provided under this item
(3), the mathematical application of the qualifying
percentage to one or more trailers, semitrailers, or pole
trailers under this subpart shall not be allowed as to any
fraction of a trailer, semitrailer, or pole trailer.
(d-5) For motor vehicles and trailers purchased on or
after July 1, 2017, "use as rolling stock moving in interstate
commerce" means that:
(1) the motor vehicle or trailer is used to transport
persons or property for hire;
(2) for purposes of the exemption under subsection (c)
of Section 3-55, the purchaser who is an owner, lessor, or
shipper claiming the exemption certifies that the motor
vehicle or trailer will be utilized, from the time of
purchase and continuing through the statute of limitations
for issuing a notice of tax liability under this Act, by an
interstate carrier or carriers for hire who hold, and are
required by Federal Motor Carrier Safety Administration
regulations to hold, an active USDOT Number with the
Carrier Operation listed as "Interstate" and the Operation
Classification listed as "authorized for hire", "exempt
for hire", or both "authorized for hire" and "exempt for
hire"; except that this paragraph (2) does not apply to a
motor vehicle or trailer used at an airport to support the
operation of an aircraft moving in interstate commerce, as

SB2207 - 6 - LRB103 28000 HLH 54379 b
long as (i) in the case of a motor vehicle, the motor
vehicle meets paragraphs (1) and (3) of this subsection
(d-5) or (ii) in the case of a trailer, the trailer meets
paragraph (1) of this subsection (d-5); and
(3) for motor vehicles, the gross vehicle weight
rating exceeds 16,000 pounds.
The definition of "use as rolling stock moving in
interstate commerce" in this subsection (d-5) applies to all
property purchased on or after July 1, 2017 for the purpose of
being attached to a motor vehicle or trailer as a part thereof,
regardless of whether the motor vehicle or trailer was
purchased before, on, or after July 1, 2017.
If an item ceases to meet requirements (1) through (3)
under this subsection (d-5), then the tax is imposed on the
selling price, allowing for a reasonable depreciation for the
period during which the item qualified for the exemption.
For purposes of this subsection (d-5):
"Motor vehicle" excludes limousines, but otherwise
means that term as defined in Section 1-146 of the
Illinois Vehicle Code.
"Trailer" means (i) "trailer", as defined in Section
1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
defined in Section 1-187 of the Illinois Vehicle Code, and
(iii) "pole trailer", as defined in Section 1-161 of the
Illinois Vehicle Code.
(e) For aircraft purchased on or after January 1, 2014 and

SB2207 - 7 - LRB103 28000 HLH 54379 b
purchased before January 1, 2024 and for watercraft purchased
on or after January 1, 2014, "use as rolling stock moving in
interstate commerce" in paragraph (c) of Section 3-55 occurs
when, during a 12-month period, the rolling stock has carried
persons or property for hire in interstate commerce for
greater than 50% of its total trips for that period or for
greater than 50% of its total miles for that period. For
aircraft purchased on or after January 1, 2024, "use as
rolling stock moving in interstate commerce" in paragraph (c)
of Section 3-55 occurs when, during a 24-month period, the
rolling stock has carried persons or property for hire in
interstate commerce for more than 50% of its total trips for
that period or for more than 50% of its total miles for that
period. The person claiming the exemption shall make an
election at the time of purchase to use either the trips or
mileage method and document that election in their books and
records. If no election is made under this subsection to use
the trips or mileage method, the person shall be deemed to have
chosen the mileage method. For aircraft, flight hours may be
used in lieu of recording miles in determining whether the
aircraft meets the mileage test in this subsection. For
watercraft, nautical miles or trip hours may be used in lieu of
recording miles in determining whether the watercraft meets
the mileage test in this subsection.
Notwithstanding any other provision of law to the
contrary, property purchased on or after January 1, 2014 for

SB2207 - 8 - LRB103 28000 HLH 54379 b
the purpose of being attached to aircraft or watercraft as a
part thereof qualifies as rolling stock moving in interstate
commerce only if the aircraft or watercraft to which it will be
attached qualifies as rolling stock moving in interstate
commerce under the test set forth in this subsection (e),
regardless of when the aircraft or watercraft was purchased.
Persons who purchased aircraft or watercraft prior to January
1, 2014 shall make an election to use either the trips or
mileage method and document that election in their books and
records for the purpose of determining whether property
purchased on or after January 1, 2014 for the purpose of being
attached to aircraft or watercraft as a part thereof qualifies
as rolling stock moving in interstate commerce under this
subsection (e).
(f) The election to use either the trips or mileage method
made under the provisions of subsections (c), (d), or (e) of
this Section will remain in effect for the duration of the
purchaser's ownership of that item.
(Source: P.A. 100-321, eff. 8-24-17.)
Section 10. The Service Use Tax Act is amended by changing
Section 3-51 as follows:
(35 ILCS 110/3-51)
Sec. 3-51. Motor vehicles; trailers; use as rolling stock
definition.

SB2207 - 9 - LRB103 28000 HLH 54379 b
(a) (Blank).
(b) (Blank).
(c) This subsection (c) applies to motor vehicles, other
than limousines, purchased through June 30, 2017. For motor
vehicles, other than limousines, purchased on or after July 1,
2017, subsection (d-5) applies. This subsection (c) applies to
limousines purchased before, on, or after July 1, 2017. "Use
as rolling stock moving in interstate commerce" in paragraph
(4a) of the definition of "sale of service" in Section 2 and
subsection (b) of Section 3-45 occurs for motor vehicles, as
defined in Section 1-146 of the Illinois Vehicle Code, when
during a 12-month period the rolling stock has carried persons
or property for hire in interstate commerce for greater than
50% of its total trips for that period or for greater than 50%
of its total miles for that period. The person claiming the
exemption shall make an election at the time of purchase to use
either the trips or mileage method. Persons who purchased
motor vehicles prior to July 1, 2004 shall make an election to
use either the trips or mileage method and document that
election in their books and records. If no election is made
under this subsection to use the trips or mileage method, the
person shall be deemed to have chosen the mileage method.
For purposes of determining qualifying trips or miles,
motor vehicles that carry persons or property for hire, even
just between points in Illinois, will be considered used for
hire in interstate commerce if the motor vehicle transports

SB2207 - 10 - LRB103 28000 HLH 54379 b
persons whose journeys or property whose shipments originate
or terminate outside Illinois. The exemption for motor
vehicles used as rolling stock moving in interstate commerce
may be claimed only for the following vehicles: (i) motor
vehicles whose gross vehicle weight rating exceeds 16,000
pounds; and (ii) limousines, as defined in Section 1-139.1 of
the Illinois Vehicle Code. Through June 30, 2017, this
definition applies to all property purchased for the purpose
of being attached to those motor vehicles as a part thereof. On
and after July 1, 2017, this definition applies to property
purchased for the purpose of being attached to limousines as a
part thereof.
(d) For purchases made through June 30, 2017, "use as
rolling stock moving in interstate commerce" in paragraph (4a)
of the definition of "sale of service" in Section 2 and
subsection (b) of Section 3-45 occurs for trailers, as defined
in Section 1-209 of the Illinois Vehicle Code, semitrailers as
defined in Section 1-187 of the Illinois Vehicle Code, and
pole trailers as defined in Section 1-161 of the Illinois
Vehicle Code, when during a 12-month period the rolling stock
has carried persons or property for hire in interstate
commerce for greater than 50% of its total trips for that
period or for greater than 50% of its total miles for that
period. The person claiming the exemption for a trailer or
trailers that will not be dedicated to a motor vehicle or group
of motor vehicles shall make an election at the time of

SB2207 - 11 - LRB103 28000 HLH 54379 b
purchase to use either the trips or mileage method. Persons
who purchased trailers prior to July 1, 2004 that are not
dedicated to a motor vehicle or group of motor vehicles shall
make an election to use either the trips or mileage method and
document that election in their books and records. If no
election is made under this subsection to use the trips or
mileage method, the person shall be deemed to have chosen the
mileage method.
For purposes of determining qualifying trips or miles,
trailers, semitrailers, or pole trailers that carry property
for hire, even just between points in Illinois, will be
considered used for hire in interstate commerce if the
trailers, semitrailers, or pole trailers transport property
whose shipments originate or terminate outside Illinois. This
definition applies to all property purchased for the purpose
of being attached to those trailers, semitrailers, or pole
trailers as a part thereof. In lieu of a person providing
documentation regarding the qualifying use of each individual
trailer, semitrailer, or pole trailer, that person may
document such qualifying use by providing documentation of the
following:
(1) If a trailer, semitrailer, or pole trailer is
dedicated to a motor vehicle that qualifies as rolling
stock moving in interstate commerce under subsection (c)
of this Section, then that trailer, semitrailer, or pole
trailer qualifies as rolling stock moving in interstate

SB2207 - 12 - LRB103 28000 HLH 54379 b
commerce under this subsection.
(2) If a trailer, semitrailer, or pole trailer is
dedicated to a group of motor vehicles that all qualify as
rolling stock moving in interstate commerce under
subsection (c) of this Section, then that trailer,
semitrailer, or pole trailer qualifies as rolling stock
moving in interstate commerce under this subsection.
(3) If one or more trailers, semitrailers, or pole
trailers are dedicated to a group of motor vehicles and
not all of those motor vehicles in that group qualify as
rolling stock moving in interstate commerce under
subsection (c) of this Section, then the percentage of
those trailers, semitrailers, or pole trailers that
qualifies as rolling stock moving in interstate commerce
under this subsection is equal to the percentage of those
motor vehicles in that group that qualify as rolling stock
moving in interstate commerce under subsection (c) of this
Section to which those trailers, semitrailers, or pole
trailers are dedicated. However, to determine the
qualification for the exemption provided under this item
(3), the mathematical application of the qualifying
percentage to one or more trailers, semitrailers, or pole
trailers under this subpart shall not be allowed as to any
fraction of a trailer, semitrailer, or pole trailer.
(d-5) For motor vehicles and trailers purchased on or
after July 1, 2017, "use as rolling stock moving in interstate

SB2207 - 13 - LRB103 28000 HLH 54379 b
commerce" means that:
(1) the motor vehicle or trailer is used to transport
persons or property for hire;
(2) for purposes of the exemption under paragraph (4a)
of the definition of "sale of service" in Section 2, the
purchaser who is an owner, lessor, or shipper claiming the
exemption certifies that the motor vehicle or trailer will
be utilized, from the time of purchase and continuing
through the statute of limitations for issuing a notice of
tax liability under this Act, by an interstate carrier or
carriers for hire who hold, and are required by Federal
Motor Carrier Safety Administration regulations to hold,
an active USDOT Number with the Carrier Operation listed
as "Interstate" and the Operation Classification listed as
"authorized for hire", "exempt for hire", or both
"authorized for hire" and "exempt for hire"; except that
this paragraph (2) does not apply to a motor vehicle or
trailer used at an airport to support the operation of an
aircraft moving in interstate commerce, as long as (i) in
the case of a motor vehicle, the motor vehicle meets
paragraphs (1) and (3) of this subsection (d-5) or (ii) in
the case of a trailer, the trailer meets paragraph (1) of
this subsection (d-5); and
(3) for motor vehicles, the gross vehicle weight
rating exceeds 16,000 pounds.
The definition of "use as rolling stock moving in

SB2207 - 14 - LRB103 28000 HLH 54379 b
interstate commerce" in this subsection (d-5) applies to all
property purchased on or after July 1, 2017 for the purpose of
being attached to a motor vehicle or trailer as a part thereof,
regardless of whether the motor vehicle or trailer was
purchased before, on, or after July 1, 2017.
If an item ceases to meet requirements (1) through (3)
under this subsection (d-5), then the tax is imposed on the
selling price, allowing for a reasonable depreciation for the
period during which the item qualified for the exemption.
For purposes of this subsection (d-5):
"Motor vehicle" excludes limousines, but otherwise
means that term as defined in Section 1-146 of the
Illinois Vehicle Code.
"Trailer" means (i) "trailer", as defined in Section
1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
defined in Section 1-187 of the Illinois Vehicle Code, and
(iii) "pole trailer", as defined in Section 1-161 of the
Illinois Vehicle Code.
(e) For aircraft purchased on or after January 1, 2014 and
purchased before January 1, 2024 and for watercraft purchased
on or after January 1, 2014, "use as rolling stock moving in
interstate commerce" in (i) paragraph (4a) of the definition
of "sale of service" in Section 2 and (ii) subsection (b) of
Section 3-45 occurs when, during a 12-month period, the
rolling stock has carried persons or property for hire in
interstate commerce for greater than 50% of its total trips

SB2207 - 15 - LRB103 28000 HLH 54379 b
for that period or for greater than 50% of its total miles for
that period. For aircraft purchased on or after January 1,
2024, "use as rolling stock moving in interstate commerce" in
(i) paragraph (4a) of the definition of "sale of service" in
Section 2 and (ii) subsection (b) of Section 3-45 occurs when,
during a 24-month period, the rolling stock has carried
persons or property for hire in interstate commerce for more
than 50% of its total trips for that period or for more than
50% of its total miles for that period. The person claiming the
exemption shall make an election at the time of purchase to use
either the trips or mileage method and document that election
in their books and records. If no election is made under this
subsection to use the trips or mileage method, the person
shall be deemed to have chosen the mileage method. For
aircraft, flight hours may be used in lieu of recording miles
in determining whether the aircraft meets the mileage test in
this subsection. For watercraft, nautical miles or trip hours
may be used in lieu of recording miles in determining whether
the watercraft meets the mileage test in this subsection.
Notwithstanding any other provision of law to the
contrary, property purchased on or after January 1, 2014 for
the purpose of being attached to aircraft or watercraft as a
part thereof qualifies as rolling stock moving in interstate
commerce only if the aircraft or watercraft to which it will be
attached qualifies as rolling stock moving in interstate
commerce under the test set forth in this subsection (e),

SB2207 - 16 - LRB103 28000 HLH 54379 b
regardless of when the aircraft or watercraft was purchased.
Persons who purchased aircraft or watercraft prior to January
1, 2014 shall make an election to use either the trips or
mileage method and document that election in their books and
records for the purpose of determining whether property
purchased on or after January 1, 2014 for the purpose of being
attached to aircraft or watercraft as a part thereof qualifies
as rolling stock moving in interstate commerce under this
subsection (e).
(f) The election to use either the trips or mileage method
made under the provisions of subsections (c), (d), or (e) of
this Section will remain in effect for the duration of the
purchaser's ownership of that item.
(Source: P.A. 100-321, eff. 8-24-17.)
Section 15. The Service Occupation Tax Act is amended by
changing Section 2d as follows:
(35 ILCS 115/2d)
Sec. 2d. Motor vehicles; trailers; use as rolling stock
definition.
(a) (Blank).
(b) (Blank).
(c) This subsection (c) applies to motor vehicles, other
than limousines, purchased through June 30, 2017. For motor
vehicles, other than limousines, purchased on or after July 1,

SB2207 - 17 - LRB103 28000 HLH 54379 b
2017, subsection (d-5) applies. This subsection (c) applies to
limousines purchased before, on, or after July 1, 2017. "Use
as rolling stock moving in interstate commerce" in paragraph
(d-1) of the definition of "sale of service" in Section 2
occurs for motor vehicles, as defined in Section 1-146 of the
Illinois Vehicle Code, when during a 12-month period the
rolling stock has carried persons or property for hire in
interstate commerce for greater than 50% of its total trips
for that period or for greater than 50% of its total miles for
that period. The person claiming the exemption shall make an
election at the time of purchase to use either the trips or
mileage method. Persons who purchased motor vehicles prior to
July 1, 2004 shall make an election to use either the trips or
mileage method and document that election in their books and
records. If no election is made under this subsection to use
the trips or mileage method, the person shall be deemed to have
chosen the mileage method.
For purposes of determining qualifying trips or miles,
motor vehicles that carry persons or property for hire, even
just between points in Illinois, will be considered used for
hire in interstate commerce if the motor vehicle transports
persons whose journeys or property whose shipments originate
or terminate outside Illinois. The exemption for motor
vehicles used as rolling stock moving in interstate commerce
may be claimed only for the following vehicles: (i) motor
vehicles whose gross vehicle weight rating exceeds 16,000

SB2207 - 18 - LRB103 28000 HLH 54379 b
pounds; and (ii) limousines, as defined in Section 1-139.1 of
the Illinois Vehicle Code. Through June 30, 2017, this
definition applies to all property purchased for the purpose
of being attached to those motor vehicles as a part thereof. On
and after July 1, 2017, this definition applies to property
purchased for the purpose of being attached to limousines as a
part thereof.
(d) For purchases made through June 30, 2017, "use as
rolling stock moving in interstate commerce" in paragraph
(d-1) of the definition of "sale of service" in Section 2
occurs for trailers, as defined in Section 1-209 of the
Illinois Vehicle Code, semitrailers as defined in Section
1-187 of the Illinois Vehicle Code, and pole trailers as
defined in Section 1-161 of the Illinois Vehicle Code, when
during a 12-month period the rolling stock has carried persons
or property for hire in interstate commerce for greater than
50% of its total trips for that period or for greater than 50%
of its total miles for that period. The person claiming the
exemption for a trailer or trailers that will not be dedicated
to a motor vehicle or group of motor vehicles shall make an
election at the time of purchase to use either the trips or
mileage method. Persons who purchased trailers prior to July
1, 2004 that are not dedicated to a motor vehicle or group of
motor vehicles shall make an election to use either the trips
or mileage method and document that election in their books
and records. If no election is made under this subsection to

SB2207 - 19 - LRB103 28000 HLH 54379 b
use the trips or mileage method, the person shall be deemed to
have chosen the mileage method.
For purposes of determining qualifying trips or miles,
trailers, semitrailers, or pole trailers that carry property
for hire, even just between points in Illinois, will be
considered used for hire in interstate commerce if the
trailers, semitrailers, or pole trailers transport property
whose shipments originate or terminate outside Illinois. This
definition applies to all property purchased for the purpose
of being attached to those trailers, semitrailers, or pole
trailers as a part thereof. In lieu of a person providing
documentation regarding the qualifying use of each individual
trailer, semitrailer, or pole trailer, that person may
document such qualifying use by providing documentation of the
following:
(1) If a trailer, semitrailer, or pole trailer is
dedicated to a motor vehicle that qualifies as rolling
stock moving in interstate commerce under subsection (c)
of this Section, then that trailer, semitrailer, or pole
trailer qualifies as rolling stock moving in interstate
commerce under this subsection.
(2) If a trailer, semitrailer, or pole trailer is
dedicated to a group of motor vehicles that all qualify as
rolling stock moving in interstate commerce under
subsection (c) of this Section, then that trailer,
semitrailer, or pole trailer qualifies as rolling stock

SB2207 - 20 - LRB103 28000 HLH 54379 b
moving in interstate commerce under this subsection.
(3) If one or more trailers, semitrailers, or pole
trailers are dedicated to a group of motor vehicles and
not all of those motor vehicles in that group qualify as
rolling stock moving in interstate commerce under
subsection (c) of this Section, then the percentage of
those trailers, semitrailers, or pole trailers that
qualifies as rolling stock moving in interstate commerce
under this subsection is equal to the percentage of those
motor vehicles in that group that qualify as rolling stock
moving in interstate commerce under subsection (c) of this
Section to which those trailers, semitrailers, or pole
trailers are dedicated. However, to determine the
qualification for the exemption provided under this item
(3), the mathematical application of the qualifying
percentage to one or more trailers, semitrailers, or pole
trailers under this subpart shall not be allowed as to any
fraction of a trailer, semitrailer, or pole trailer.
(d-5) For motor vehicles and trailers purchased on or
after July 1, 2017, "use as rolling stock moving in interstate
commerce" means that:
(1) the motor vehicle or trailer is used to transport
persons or property for hire;
(2) for purposes of the exemption under paragraph
(d-1) of the definition of "sale of service" in Section 2,
the purchaser who is an owner, lessor, or shipper claiming

SB2207 - 21 - LRB103 28000 HLH 54379 b
the exemption certifies that the motor vehicle or trailer
will be utilized, from the time of purchase and continuing
through the statute of limitations for issuing a notice of
tax liability under this Act, by an interstate carrier or
carriers for hire who hold, and are required by Federal
Motor Carrier Safety Administration regulations to hold,
an active USDOT Number with the Carrier Operation listed
as "Interstate" and the Operation Classification listed as
"authorized for hire", "exempt for hire", or both
"authorized for hire" and "exempt for hire"; except that
this paragraph (2) does not apply to a motor vehicle or
trailer used at an airport to support the operation of an
aircraft moving in interstate commerce, as long as (i) in
the case of a motor vehicle, the motor vehicle meets
paragraphs (1) and (3) of this subsection (d-5) or (ii) in
the case of a trailer, the trailer meets paragraph (1) of
this subsection (d-5); and
(3) for motor vehicles, the gross vehicle weight
rating exceeds 16,000 pounds.
The definition of "use as rolling stock moving in
interstate commerce" in this subsection (d-5) applies to all
property purchased on or after July 1, 2017 for the purpose of
being attached to a motor vehicle or trailer as a part thereof,
regardless of whether the motor vehicle or trailer was
purchased before, on, or after July 1, 2017.
If an item ceases to meet requirements (1) through (3)

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under this subsection (d-5), then the tax is imposed on the
selling price, allowing for a reasonable depreciation for the
period during which the item qualified for the exemption.
For purposes of this subsection (d-5):
"Motor vehicle" excludes limousines, but otherwise
means that term as defined in Section 1-146 of the
Illinois Vehicle Code.
"Trailer" means (i) "trailer", as defined in Section
1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
defined in Section 1-187 of the Illinois Vehicle Code, and
(iii) "pole trailer", as defined in Section 1-161 of the
Illinois Vehicle Code.
(e) For aircraft purchased on or after January 1, 2014 and
purchased before January 1, 2024 and for watercraft purchased
on or after January 1, 2014, "use as rolling stock moving in
interstate commerce" in paragraph (d-1) of the definition of
"sale of service" in Section 2 occurs when, during a 12-month
period, the rolling stock has carried persons or property for
hire in interstate commerce for greater than 50% of its total
trips for that period or for greater than 50% of its total
miles for that period. For aircraft purchased on or after
January 1, 2024, "use as rolling stock moving in interstate
commerce" in paragraph (d-1) of the definition of "sale of
service" in Section 2 occurs when, during a 24-month period,
the rolling stock has carried persons or property for hire in
interstate commerce for more than 50% of its total trips for

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that period or for more than 50% of its total miles for that
period. The person claiming the exemption shall make an
election at the time of purchase to use either the trips or
mileage method and document that election in their books and
records. If no election is made under this subsection to use
the trips or mileage method, the person shall be deemed to have
chosen the mileage method. For aircraft, flight hours may be
used in lieu of recording miles in determining whether the
aircraft meets the mileage test in this subsection. For
watercraft, nautical miles or trip hours may be used in lieu of
recording miles in determining whether the watercraft meets
the mileage test in this subsection.
Notwithstanding any other provision of law to the
contrary, property purchased on or after January 1, 2014 for
the purpose of being attached to aircraft or watercraft as a
part thereof qualifies as rolling stock moving in interstate
commerce only if the aircraft or watercraft to which it will be
attached qualifies as rolling stock moving in interstate
commerce under the test set forth in this subsection (e),
regardless of when the aircraft or watercraft was purchased.
Persons who purchased aircraft or watercraft prior to January
1, 2014 shall make an election to use either the trips or
mileage method and document that election in their books and
records for the purpose of determining whether property
purchased on or after January 1, 2014 for the purpose of being
attached to aircraft or watercraft as a part thereof qualifies

SB2207 - 24 - LRB103 28000 HLH 54379 b
as rolling stock moving in interstate commerce under this
subsection (e).
(f) The election to use either the trips or mileage method
made under the provisions of subsections (c), (d), or (e) of
this Section will remain in effect for the duration of the
purchaser's ownership of that item.
(Source: P.A. 102-558, eff. 8-20-21.)
Section 20. The Retailers' Occupation Tax Act is amended
by changing Section 2-51 as follows:
(35 ILCS 120/2-51)
Sec. 2-51. Motor vehicles; trailers; use as rolling stock
definition.
(a) (Blank).
(b) (Blank).
(c) This subsection (c) applies to motor vehicles, other
than limousines, purchased through June 30, 2017. For motor
vehicles, other than limousines, purchased on or after July 1,
2017, subsection (d-5) applies. This subsection (c) applies to
limousines purchased before, on, or after July 1, 2017. "Use
as rolling stock moving in interstate commerce" in paragraph
(13) of Section 2-5 occurs for motor vehicles, as defined in
Section 1-146 of the Illinois Vehicle Code, when during a
12-month period the rolling stock has carried persons or
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
its total miles for that period. The person claiming the
exemption shall make an election at the time of purchase to use
either the trips or mileage method. Persons who purchased
motor vehicles prior to July 1, 2004 shall make an election to
use either the trips or mileage method and document that
election in their books and records. If no election is made
under this subsection to use the trips or mileage method, the
person shall be deemed to have chosen the mileage method.
For purposes of determining qualifying trips or miles,
motor vehicles that carry persons or property for hire, even
just between points in Illinois, will be considered used for
hire in interstate commerce if the motor vehicle transports
persons whose journeys or property whose shipments originate
or terminate outside Illinois. The exemption for motor
vehicles used as rolling stock moving in interstate commerce
may be claimed only for the following vehicles: (i) motor
vehicles whose gross vehicle weight rating exceeds 16,000
pounds; and (ii) limousines, as defined in Section 1-139.1 of
the Illinois Vehicle Code. Through June 30, 2017, this
definition applies to all property purchased for the purpose
of being attached to those motor vehicles as a part thereof. On
and after July 1, 2017, this definition applies to property
purchased for the purpose of being attached to limousines as a
part thereof.
(d) For purchases made through June 30, 2017, "use as

SB2207 - 26 - LRB103 28000 HLH 54379 b
rolling stock moving in interstate commerce" in paragraph (13)
of Section 2-5 occurs for trailers, as defined in Section
1-209 of the Illinois Vehicle Code, semitrailers as defined in
Section 1-187 of the Illinois Vehicle Code, and pole trailers
as defined in Section 1-161 of the Illinois Vehicle Code, when
during a 12-month period the rolling stock has carried persons
or property for hire in interstate commerce for greater than
50% of its total trips for that period or for greater than 50%
of its total miles for that period. The person claiming the
exemption for a trailer or trailers that will not be dedicated
to a motor vehicle or group of motor vehicles shall make an
election at the time of purchase to use either the trips or
mileage method. Persons who purchased trailers prior to July
1, 2004 that are not dedicated to a motor vehicle or group of
motor vehicles shall make an election to use either the trips
or mileage method and document that election in their books
and records. If no election is made under this subsection to
use the trips or mileage method, the person shall be deemed to
have chosen the mileage method.
For purposes of determining qualifying trips or miles,
trailers, semitrailers, or pole trailers that carry property
for hire, even just between points in Illinois, will be
considered used for hire in interstate commerce if the
trailers, semitrailers, or pole trailers transport property
whose shipments originate or terminate outside Illinois. This
definition applies to all property purchased for the purpose

SB2207 - 27 - LRB103 28000 HLH 54379 b
of being attached to those trailers, semitrailers, or pole
trailers as a part thereof. In lieu of a person providing
documentation regarding the qualifying use of each individual
trailer, semitrailer, or pole trailer, that person may
document such qualifying use by providing documentation of the
following:
(1) If a trailer, semitrailer, or pole trailer is
dedicated to a motor vehicle that qualifies as rolling
stock moving in interstate commerce under subsection (c)
of this Section, then that trailer, semitrailer, or pole
trailer qualifies as rolling stock moving in interstate
commerce under this subsection.
(2) If a trailer, semitrailer, or pole trailer is
dedicated to a group of motor vehicles that all qualify as
rolling stock moving in interstate commerce under
subsection (c) of this Section, then that trailer,
semitrailer, or pole trailer qualifies as rolling stock
moving in interstate commerce under this subsection.
(3) If one or more trailers, semitrailers, or pole
trailers are dedicated to a group of motor vehicles and
not all of those motor vehicles in that group qualify as
rolling stock moving in interstate commerce under
subsection (c) of this Section, then the percentage of
those trailers, semitrailers, or pole trailers that
qualifies as rolling stock moving in interstate commerce
under this subsection is equal to the percentage of those

SB2207 - 28 - LRB103 28000 HLH 54379 b
motor vehicles in that group that qualify as rolling stock
moving in interstate commerce under subsection (c) of this
Section to which those trailers, semitrailers, or pole
trailers are dedicated. However, to determine the
qualification for the exemption provided under this item
(3), the mathematical application of the qualifying
percentage to one or more trailers, semitrailers, or pole
trailers under this subpart shall not be allowed as to any
fraction of a trailer, semitrailer, or pole trailer.
(d-5) For motor vehicles and trailers purchased on or
after July 1, 2017, "use as rolling stock moving in interstate
commerce" means that:
(1) the motor vehicle or trailer is used to transport
persons or property for hire;
(2) for purposes of the exemption under paragraph (13)
of Section 2-5, the purchaser who is an owner, lessor, or
shipper claiming the exemption certifies that the motor
vehicle or trailer will be utilized, from the time of
purchase and continuing through the statute of limitations
for issuing a notice of tax liability under this Act, by an
interstate carrier or carriers for hire who hold, and are
required by Federal Motor Carrier Safety Administration
regulations to hold, an active USDOT Number with the
Carrier Operation listed as "Interstate" and the Operation
Classification listed as "authorized for hire", "exempt
for hire", or both "authorized for hire" and "exempt for

SB2207 - 29 - LRB103 28000 HLH 54379 b
hire"; except that this paragraph (2) does not apply to a
motor vehicle or trailer used at an airport to support the
operation of an aircraft moving in interstate commerce, as
long as (i) in the case of a motor vehicle, the motor
vehicle meets paragraphs (1) and (3) of this subsection
(d-5) or (ii) in the case of a trailer, the trailer meets
paragraph (1) of this subsection (d-5); and
(3) for motor vehicles, the gross vehicle weight
rating exceeds 16,000 pounds.
The definition of "use as rolling stock moving in
interstate commerce" in this subsection (d-5) applies to all
property purchased on or after July 1, 2017 for the purpose of
being attached to a motor vehicle or trailer as a part thereof,
regardless of whether the motor vehicle or trailer was
purchased before, on, or after July 1, 2017.
If an item ceases to meet requirements (1) through (3)
under this subsection (d-5), then the tax is imposed on the
selling price, allowing for a reasonable depreciation for the
period during which the item qualified for the exemption.
For purposes of this subsection (d-5):
"Motor vehicle" excludes limousines, but otherwise
means that term as defined in Section 1-146 of the
Illinois Vehicle Code.
"Trailer" means (i) "trailer", as defined in Section
1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
defined in Section 1-187 of the Illinois Vehicle Code, and

SB2207 - 30 - LRB103 28000 HLH 54379 b
(iii) "pole trailer", as defined in Section 1-161 of the
Illinois Vehicle Code.
(e) For aircraft purchased on or after January 1, 2014 and
purchased before January 1, 2024 and for watercraft purchased
on or after January 1, 2014, "use as rolling stock moving in
interstate commerce" in paragraph (13) of Section 2-5 occurs
when, during a 12-month period, the rolling stock has carried
persons or property for hire in interstate commerce for
greater than 50% of its total trips for that period or for
greater than 50% of its total miles for that period. For
aircraft purchased on or after January 1, 2024, "use as
rolling stock moving in interstate commerce" in paragraph (13)
of Section 2-5 occurs when, during a 24-month period, the
rolling stock has carried persons or property for hire in
interstate commerce for more than 50% of its total trips for
that period or for more than 50% of its total miles for that
period. The person claiming the exemption shall make an
election at the time of purchase to use either the trips or
mileage method and document that election in their books and
records. If no election is made under this subsection to use
the trips or mileage method, the person shall be deemed to have
chosen the mileage method. For aircraft, flight hours may be
used in lieu of recording miles in determining whether the
aircraft meets the mileage test in this subsection. For
watercraft, nautical miles or trip hours may be used in lieu of
recording miles in determining whether the watercraft meets

SB2207 - 31 - LRB103 28000 HLH 54379 b
the mileage test in this subsection.
Notwithstanding any other provision of law to the
contrary, property purchased on or after January 1, 2014 for
the purpose of being attached to aircraft or watercraft as a
part thereof qualifies as rolling stock moving in interstate
commerce only if the aircraft or watercraft to which it will be
attached qualifies as rolling stock moving in interstate
commerce under the test set forth in this subsection (e),
regardless of when the aircraft or watercraft was purchased.
Persons who purchased aircraft or watercraft prior to January
1, 2014 shall make an election to use either the trips or
mileage method and document that election in their books and
records for the purpose of determining whether property
purchased on or after January 1, 2014 for the purpose of being
attached to aircraft or watercraft as a part thereof qualifies
as rolling stock moving in interstate commerce under this
subsection (e).
(f) The election to use either the trips or mileage method
made under the provisions of subsections (c), (d), or (e) of
this Section will remain in effect for the duration of the
purchaser's ownership of that item.
(Source: P.A. 100-321, eff. 8-24-17.)
Section 99. Effective date. This Act takes effect upon
becoming law.