Bill Text: IL SB2424 | 2015-2016 | 99th General Assembly | Introduced
Bill Title: Amends the Use Tax Act. Makes a technical change in a Section concerning rolling stock.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-02-09 - Referred to Assignments [SB2424 Detail]
Download: Illinois-2015-SB2424-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Use Tax Act is amended by changing Section | |||||||||||||||||||
5 | 3-61 as follows:
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6 | (35 ILCS 105/3-61)
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7 | Sec. 3-61. Motor vehicles; trailers; use as rolling stock | |||||||||||||||||||
8 | definition. | |||||||||||||||||||
9 | (a) Through
June 30, 2003, "use
as
rolling stock moving
in
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10 | interstate commerce" in subsections (b) and (c) of Section 3-55 | |||||||||||||||||||
11 | means for motor
vehicles, as defined in Section 1-146 of the | |||||||||||||||||||
12 | the 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 | |||||||||||||||||||
15 | has
carried
persons or
property for hire in interstate | |||||||||||||||||||
16 | commerce, even just between points in Illinois,
if the motor | |||||||||||||||||||
17 | vehicle and trailer transports persons whose journeys or | |||||||||||||||||||
18 | property
whose shipments originate or terminate outside | |||||||||||||||||||
19 | Illinois. This definition
applies to all property purchased for | |||||||||||||||||||
20 | the purpose of being
attached to those motor vehicles or | |||||||||||||||||||
21 | trailers as a part thereof.
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22 | (b) On and after July 1, 2003 and through June 30, 2004, | |||||||||||||||||||
23 | "use as rolling stock moving in interstate
commerce" in
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1 | paragraphs (b) and (c) of Section 3-55 occurs for motor | ||||||
2 | vehicles, as defined in
Section 1-146 of the Illinois Vehicle | ||||||
3 | Code, when during a 12-month period
the
rolling stock has | ||||||
4 | carried persons or property for hire in interstate commerce
for | ||||||
5 | 51% of
its total trips and transports persons whose journeys or | ||||||
6 | property whose
shipments
originate or terminate outside | ||||||
7 | Illinois. Trips that are only between points in
Illinois shall
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8 | not be counted as interstate trips when calculating whether the | ||||||
9 | tangible
personal property
qualifies for the exemption but such | ||||||
10 | trips shall be included in total trips
taken.
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11 | (c) Beginning July 1, 2004, "use as rolling stock moving in | ||||||
12 | interstate commerce" in paragraphs (b) and (c) of Section 3-55 | ||||||
13 | occurs for motor vehicles, as defined in Section 1-146 of the | ||||||
14 | Illinois Vehicle Code, when during a 12-month period the | ||||||
15 | rolling stock has carried persons or property for hire in | ||||||
16 | interstate commerce for greater than 50% of its total trips for | ||||||
17 | that period or for greater than 50% of its total miles for that | ||||||
18 | period. The person claiming the exemption shall make an | ||||||
19 | election at the time of purchase to use either the trips or | ||||||
20 | mileage method. Persons who purchased motor vehicles prior to | ||||||
21 | 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 | ||||||
24 | the trips or mileage method, the person shall be deemed to have | ||||||
25 | chosen the mileage method. | ||||||
26 | For purposes of determining qualifying trips or miles, |
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1 | motor vehicles that carry persons or property for hire, even | ||||||
2 | just between points in Illinois, will be considered used for | ||||||
3 | hire in interstate commerce if the motor vehicle transports | ||||||
4 | persons whose journeys or property whose shipments originate or | ||||||
5 | terminate outside Illinois. The exemption for motor vehicles
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6 | used as rolling stock moving in interstate commerce may be
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7 | claimed only for the following vehicles: (i) motor vehicles | ||||||
8 | whose gross vehicle weight
rating exceeds 16,000 pounds; and | ||||||
9 | (ii) limousines, as defined in Section 1-139.1 of the Illinois | ||||||
10 | Vehicle Code. This definition applies to all property purchased | ||||||
11 | for the purpose of being attached to those motor vehicles as a | ||||||
12 | part thereof. | ||||||
13 | (d) Beginning July 1, 2004, "use as rolling stock moving in | ||||||
14 | interstate commerce" in paragraphs (b) and (c) of Section 3-55 | ||||||
15 | occurs for trailers, as defined in Section 1-209 of the | ||||||
16 | Illinois Vehicle Code, semitrailers as defined in Section 1-187 | ||||||
17 | of the Illinois Vehicle Code, and pole trailers as defined in | ||||||
18 | Section 1-161 of the Illinois Vehicle Code, when during a | ||||||
19 | 12-month period the rolling stock has carried persons or | ||||||
20 | property for hire in interstate commerce for greater than 50% | ||||||
21 | of its total trips for that period or for greater than 50% of | ||||||
22 | its total miles for that period. The person claiming the | ||||||
23 | exemption for a trailer or trailers that will not be dedicated | ||||||
24 | to a motor vehicle or group of motor vehicles shall make an | ||||||
25 | election at the time of purchase to use either the trips or | ||||||
26 | mileage method. Persons who purchased trailers prior to July 1, |
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1 | 2004 that are not dedicated to a motor vehicle or group of | ||||||
2 | motor vehicles shall make an election to use either the trips | ||||||
3 | or mileage method and document that election in their books and | ||||||
4 | records. If no election is made under this subsection to use | ||||||
5 | the trips or mileage method, the person shall be deemed to have | ||||||
6 | chosen the mileage method. | ||||||
7 | For purposes of determining qualifying trips or miles, | ||||||
8 | trailers, semitrailers, or pole trailers that carry property | ||||||
9 | for hire, even just between points in Illinois, will be | ||||||
10 | considered used for hire in interstate commerce if the | ||||||
11 | trailers, semitrailers, or pole trailers transport property | ||||||
12 | whose shipments originate or terminate outside Illinois. This | ||||||
13 | definition applies to all property purchased for the purpose of | ||||||
14 | being attached to those trailers, semitrailers, or pole | ||||||
15 | trailers as a part thereof. In lieu of a person providing | ||||||
16 | documentation regarding the qualifying use of each individual | ||||||
17 | trailer, semitrailer, or pole trailer, that person may document | ||||||
18 | such qualifying use by providing documentation of the | ||||||
19 | following: | ||||||
20 | (1) If a trailer, semitrailer, or pole trailer is | ||||||
21 | dedicated to a motor vehicle that qualifies as rolling | ||||||
22 | stock moving in interstate commerce under subsection (c) of | ||||||
23 | this Section, then that trailer, semitrailer, or pole | ||||||
24 | trailer qualifies as rolling stock moving in interstate | ||||||
25 | commerce under this subsection. | ||||||
26 | (2) If a trailer, semitrailer, or pole trailer is |
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1 | dedicated to a group of motor vehicles that all qualify as | ||||||
2 | rolling stock moving in interstate commerce under | ||||||
3 | subsection (c) of this Section, then that trailer, | ||||||
4 | semitrailer, or pole trailer qualifies as rolling stock | ||||||
5 | moving in interstate commerce under this subsection. | ||||||
6 | (3) If one or more trailers, semitrailers, or pole | ||||||
7 | trailers are dedicated to a group of motor vehicles and not | ||||||
8 | all of those motor vehicles in that group qualify as | ||||||
9 | rolling stock moving in interstate commerce under | ||||||
10 | subsection (c) of this Section, then the percentage of | ||||||
11 | those trailers, semitrailers, or pole trailers that | ||||||
12 | qualifies as rolling stock moving in interstate commerce | ||||||
13 | under this subsection is equal to the percentage of those | ||||||
14 | motor vehicles in that group that qualify as rolling stock | ||||||
15 | moving in interstate commerce under subsection (c) of this | ||||||
16 | Section to which those trailers, semitrailers, or pole | ||||||
17 | trailers are dedicated. However, to determine the | ||||||
18 | qualification for the exemption provided under this item | ||||||
19 | (3), the mathematical application of the qualifying | ||||||
20 | percentage to one or more trailers, semitrailers, or pole | ||||||
21 | trailers under this subpart shall not be allowed as to any | ||||||
22 | fraction of a trailer, semitrailer, or pole trailer.
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23 | (e) For aircraft and watercraft purchased on or after | ||||||
24 | January 1, 2014, "use as rolling stock moving in interstate | ||||||
25 | commerce" in paragraphs (b) and (c) of Section 3-55 occurs | ||||||
26 | when, during a 12-month period, the rolling stock has carried |
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1 | persons or property for hire in interstate commerce for greater | ||||||
2 | than 50% of its total trips for that period or for greater than | ||||||
3 | 50% of 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 and document that election | ||||||
6 | in their books and records. If no election is made under this | ||||||
7 | subsection to use the trips or mileage method, the person shall | ||||||
8 | be deemed to have chosen the mileage method. For aircraft, | ||||||
9 | flight hours may be used in lieu of recording miles in | ||||||
10 | determining whether the aircraft meets the mileage test in this | ||||||
11 | subsection. For watercraft, nautical miles or trip hours may be | ||||||
12 | used in lieu of recording miles in determining whether the | ||||||
13 | watercraft meets the mileage test in this subsection. | ||||||
14 | Notwithstanding any other provision of law to the contrary, | ||||||
15 | property purchased on or after January 1, 2014 for the purpose | ||||||
16 | of being attached to aircraft or watercraft as a part thereof | ||||||
17 | qualifies as rolling stock moving in interstate commerce only | ||||||
18 | if the aircraft or watercraft to which it will be attached | ||||||
19 | qualifies as rolling stock moving in interstate commerce under | ||||||
20 | the test set forth in this subsection (e), regardless of when | ||||||
21 | the aircraft or watercraft was purchased. Persons who purchased | ||||||
22 | aircraft or watercraft prior to January 1, 2014 shall make an | ||||||
23 | election to use either the trips or mileage method and document | ||||||
24 | that election in their books and records for the purpose of | ||||||
25 | determining whether property purchased on or after January 1, | ||||||
26 | 2014 for the purpose of being attached to aircraft or |
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1 | watercraft as a part thereof qualifies as rolling stock moving | ||||||
2 | in interstate commerce under this subsection (e). | ||||||
3 | (f) The election to use either the trips or mileage method | ||||||
4 | made under the provisions of subsections (c), (d), or (e) of | ||||||
5 | this Section will remain in effect for the duration of the | ||||||
6 | purchaser's ownership of that item. | ||||||
7 | (Source: P.A. 98-584, eff. 8-27-13.)
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