Bill Amendment: IL SB1871 | 2017-2018 | 100th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: USE/OCC TX-ROLLING STOCK
Status: 2017-08-24 - Public Act . . . . . . . . . 100-0321 [SB1871 Detail]
Download: Illinois-2017-SB1871-Senate_Amendment_003.html
Bill Title: USE/OCC TX-ROLLING STOCK
Status: 2017-08-24 - Public Act . . . . . . . . . 100-0321 [SB1871 Detail]
Download: Illinois-2017-SB1871-Senate_Amendment_003.html
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1 | AMENDMENT TO SENATE BILL 1871
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2 | AMENDMENT NO. ______. Amend Senate Bill 1871, AS AMENDED, | ||||||
3 | by replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Use Tax Act is amended by changing Sections | ||||||
6 | 3-55, 3-61, and 10 as follows:
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7 | (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
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8 | Sec. 3-55. Multistate exemption. To prevent actual or | ||||||
9 | likely multistate taxation, the tax imposed by this
Act
does | ||||||
10 | not apply to the use of
tangible personal property in this | ||||||
11 | State under the following circumstances:
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12 | (a) The use, in this State, of tangible personal property | ||||||
13 | acquired
outside this State by a nonresident individual and | ||||||
14 | brought into this
State by the individual for his or her own | ||||||
15 | use while temporarily within
this State or while passing | ||||||
16 | through this State.
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1 | (b) (Blank). The use, in this State, of tangible personal
| ||||||
2 | property by an
interstate carrier for hire as rolling stock | ||||||
3 | moving in interstate
commerce or by lessors under a lease of | ||||||
4 | one year or longer executed or
in effect at the time of | ||||||
5 | purchase of tangible personal property by
interstate carriers | ||||||
6 | for-hire for use as rolling stock moving in interstate
commerce | ||||||
7 | as long as so used by the interstate carriers for-hire, and | ||||||
8 | equipment
operated by a telecommunications provider, licensed | ||||||
9 | as a common carrier by the
Federal Communications Commission, | ||||||
10 | which is permanently installed in or affixed
to aircraft moving | ||||||
11 | in interstate commerce.
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12 | (c) The use, in this State, by owners, lessors,
or
shippers
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13 | of tangible personal property that is utilized by interstate | ||||||
14 | carriers
for hire for use as rolling stock moving in interstate | ||||||
15 | commerce as
long as so used by the interstate carriers for | ||||||
16 | hire, and equipment
operated by a telecommunications provider, | ||||||
17 | licensed as a common carrier by the
Federal Communications | ||||||
18 | Commission, which is permanently installed in or affixed
to | ||||||
19 | aircraft moving in interstate commerce.
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20 | (d) The use, in this State, of tangible personal property | ||||||
21 | that is
acquired outside this State and caused to be brought | ||||||
22 | into this State by
a person who has already paid a tax in | ||||||
23 | another State in respect to the
sale, purchase, or use of that | ||||||
24 | property, to the extent of the amount of
the tax properly due | ||||||
25 | and paid in the other State.
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26 | (e) The temporary storage, in this State, of tangible |
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1 | personal
property that is acquired outside this State and that, | ||||||
2 | after
being brought into this State and stored here | ||||||
3 | temporarily, is used
solely outside this State or is physically | ||||||
4 | attached to or incorporated
into other tangible personal | ||||||
5 | property that is used solely outside this
State, or is altered | ||||||
6 | by converting, fabricating, manufacturing, printing,
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7 | processing, or shaping, and, as altered, is used solely outside | ||||||
8 | this State.
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9 | (f) The temporary storage in this State of building | ||||||
10 | materials and
fixtures that are acquired either in this State | ||||||
11 | or outside this State
by an Illinois registered combination | ||||||
12 | retailer and construction contractor, and
that the purchaser | ||||||
13 | thereafter uses outside this State by incorporating that
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14 | property into real estate located outside this State.
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15 | (g) The use or purchase of tangible personal property by a | ||||||
16 | common carrier
by rail or motor that receives the physical | ||||||
17 | possession of the property in
Illinois, and
that transports the | ||||||
18 | property, or shares with another common carrier in the
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19 | transportation of the property, out of Illinois on a standard | ||||||
20 | uniform bill of
lading showing the seller of the property as | ||||||
21 | the shipper or consignor of the
property to a destination | ||||||
22 | outside Illinois, for use outside Illinois.
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23 | (h) Except as provided in subsection (h-1), the use, in | ||||||
24 | this State, of a motor vehicle that was sold in
this State to a | ||||||
25 | nonresident, even though the motor vehicle is
delivered to the | ||||||
26 | nonresident in this State, if the motor vehicle
is not to be |
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1 | titled in this State, and if a
drive-away permit is issued to | ||||||
2 | the motor vehicle as
provided in Section 3-603 of the Illinois | ||||||
3 | Vehicle Code or if the
nonresident purchaser has vehicle | ||||||
4 | registration plates to transfer
to the motor vehicle upon | ||||||
5 | returning to his or her home state.
The issuance of the | ||||||
6 | drive-away permit or having the
out-of-state
registration | ||||||
7 | plates to be transferred shall be prima facie evidence
that the | ||||||
8 | motor vehicle will not be titled in this State.
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9 | (h-1) The exemption under subsection (h) does not apply if | ||||||
10 | the state in which the motor vehicle will be titled does not | ||||||
11 | allow a reciprocal exemption for the use in that state of a | ||||||
12 | motor vehicle sold and delivered in that state to an Illinois | ||||||
13 | resident but titled in Illinois. The tax collected under this | ||||||
14 | Act on the sale of a motor vehicle in this State to a resident | ||||||
15 | of another state that does not allow a reciprocal exemption | ||||||
16 | shall be imposed at a rate equal to the state's rate of tax on | ||||||
17 | taxable property in the state in which the purchaser is a | ||||||
18 | resident, except that the tax shall not exceed the tax that | ||||||
19 | would otherwise be imposed under this Act. At the time of the | ||||||
20 | sale, the purchaser shall execute a statement, signed under | ||||||
21 | penalty of perjury, of his or her intent to title the vehicle | ||||||
22 | in the state in which the purchaser is a resident within 30 | ||||||
23 | days after the sale and of the fact of the payment to the State | ||||||
24 | of Illinois of tax in an amount equivalent to the state's rate | ||||||
25 | of tax on taxable property in his or her state of residence and | ||||||
26 | shall submit the statement to the appropriate tax collection |
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1 | agency in his or her state of residence. In addition, the | ||||||
2 | retailer must retain a signed copy of the statement in his or | ||||||
3 | her records. Nothing in this subsection shall be construed to | ||||||
4 | require the removal of the vehicle from this state following | ||||||
5 | the filing of an intent to title the vehicle in the purchaser's | ||||||
6 | state of residence if the purchaser titles the vehicle in his | ||||||
7 | or her state of residence within 30 days after the date of | ||||||
8 | sale. The tax collected under this Act in accordance with this | ||||||
9 | subsection (h-1) shall be proportionately distributed as if the | ||||||
10 | tax were collected at the 6.25% general rate imposed under this | ||||||
11 | Act.
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12 | (h-2) The following exemptions apply with respect to | ||||||
13 | certain aircraft: | ||||||
14 | (1) Beginning on July 1, 2007, no tax is imposed under | ||||||
15 | this Act on the purchase of an aircraft, as defined in | ||||||
16 | Section 3 of the Illinois Aeronautics Act, if all of the | ||||||
17 | following conditions are met: | ||||||
18 | (A) the aircraft leaves this State within 15 days | ||||||
19 | after the later of either the issuance of the final | ||||||
20 | billing for the purchase of the aircraft or the | ||||||
21 | authorized approval for return to service, completion | ||||||
22 | of the maintenance record entry, and completion of the | ||||||
23 | test flight and ground test for inspection, as required | ||||||
24 | by 14 C.F.R. 91.407; | ||||||
25 | (B) the aircraft is not based or registered in this | ||||||
26 | State after the purchase of the aircraft; and |
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1 | (C) the purchaser provides the Department with a | ||||||
2 | signed and dated certification, on a form prescribed by | ||||||
3 | the Department, certifying that the requirements of | ||||||
4 | this item (1) are met. The certificate must also | ||||||
5 | include the name and address of the purchaser, the | ||||||
6 | address of the location where the aircraft is to be | ||||||
7 | titled or registered, the address of the primary | ||||||
8 | physical location of the aircraft, and other | ||||||
9 | information that the Department may reasonably | ||||||
10 | require. | ||||||
11 | (2) Beginning on July 1, 2007, no tax is imposed under | ||||||
12 | this Act on the use of an aircraft, as defined in Section 3 | ||||||
13 | of the Illinois Aeronautics Act, that is temporarily | ||||||
14 | located in this State for the purpose of a prepurchase | ||||||
15 | evaluation if all of the following conditions are met: | ||||||
16 | (A) the aircraft is not based or registered in this | ||||||
17 | State after the prepurchase evaluation; and | ||||||
18 | (B) the purchaser provides the Department with a | ||||||
19 | signed and dated certification, on a form prescribed by | ||||||
20 | the Department, certifying that the requirements of | ||||||
21 | this item (2) are met. The certificate must also | ||||||
22 | include the name and address of the purchaser, the | ||||||
23 | address of the location where the aircraft is to be | ||||||
24 | titled or registered, the address of the primary | ||||||
25 | physical location of the aircraft, and other | ||||||
26 | information that the Department may reasonably |
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1 | require. | ||||||
2 | (3) Beginning on July 1, 2007, no tax is imposed under | ||||||
3 | this Act on the use of an aircraft, as defined in Section 3 | ||||||
4 | of the Illinois Aeronautics Act, that is temporarily | ||||||
5 | located in this State for the purpose of a post-sale | ||||||
6 | customization if all of the following conditions are met: | ||||||
7 | (A) the aircraft leaves this State within 15 days | ||||||
8 | after the authorized approval for return to service, | ||||||
9 | completion of the maintenance record entry, and | ||||||
10 | completion of the test flight and ground test for | ||||||
11 | inspection, as required by 14 C.F.R. 91.407; | ||||||
12 | (B) the aircraft is not based or registered in this | ||||||
13 | State either before or after the post-sale | ||||||
14 | customization; and | ||||||
15 | (C) the purchaser provides the Department with a | ||||||
16 | signed and dated certification, on a form prescribed by | ||||||
17 | the Department, certifying that the requirements of | ||||||
18 | this item (3) are met. The certificate must also | ||||||
19 | include the name and address of the purchaser, the | ||||||
20 | address of the location where the aircraft is to be | ||||||
21 | titled or registered, the address of the primary | ||||||
22 | physical location of the aircraft, and other | ||||||
23 | information that the Department may reasonably | ||||||
24 | require. | ||||||
25 | If tax becomes due under this subsection (h-2) because of | ||||||
26 | the purchaser's use of the aircraft in this State, the |
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1 | purchaser shall file a return with the Department and pay the | ||||||
2 | tax on the fair market value of the aircraft. This return and | ||||||
3 | payment of the tax must be made no later than 30 days after the | ||||||
4 | aircraft is used in a taxable manner in this State. The tax is | ||||||
5 | based on the fair market value of the aircraft on the date that | ||||||
6 | it is first used in a taxable manner in this State. | ||||||
7 | For purposes of this subsection (h-2): | ||||||
8 | "Based in this State" means hangared, stored, or otherwise | ||||||
9 | used, excluding post-sale customizations as defined in this | ||||||
10 | Section, for 10 or more days in each 12-month period | ||||||
11 | immediately following the date of the sale of the aircraft. | ||||||
12 | "Post-sale customization" means any improvement, | ||||||
13 | maintenance, or repair that is performed on an aircraft | ||||||
14 | following a transfer of ownership of the aircraft. | ||||||
15 | "Prepurchase evaluation" means an examination of an | ||||||
16 | aircraft to provide a potential purchaser with information | ||||||
17 | relevant to the potential purchase. | ||||||
18 | "Registered in this State" means an aircraft registered | ||||||
19 | with the Department of Transportation, Aeronautics Division, | ||||||
20 | or titled or registered with the Federal Aviation | ||||||
21 | Administration to an address located in this State.
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22 | This subsection (h-2) is exempt from the provisions of | ||||||
23 | Section 3-90.
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24 | (i) Beginning July 1, 1999, the use, in this State, of fuel | ||||||
25 | acquired
outside this State and brought into this State in the | ||||||
26 | fuel supply
tanks of locomotives engaged in freight hauling and |
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1 | passenger service for
interstate commerce. This subsection is | ||||||
2 | exempt from the provisions of Section
3-90.
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3 | (j) Beginning on January 1, 2002 and through June 30, 2016, | ||||||
4 | the use of tangible personal property
purchased from an | ||||||
5 | Illinois retailer by a taxpayer engaged in centralized
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6 | purchasing activities in Illinois who will, upon receipt of the | ||||||
7 | property in
Illinois, temporarily store the property in | ||||||
8 | Illinois (i) for the purpose of
subsequently transporting it | ||||||
9 | outside this State for use or consumption
thereafter solely | ||||||
10 | outside this State or (ii) for the purpose of being
processed, | ||||||
11 | fabricated, or manufactured into, attached to, or incorporated | ||||||
12 | into
other tangible personal property to be transported outside | ||||||
13 | this State and
thereafter used or consumed solely outside this | ||||||
14 | State. The Director of Revenue
shall, pursuant to rules adopted | ||||||
15 | in accordance with the Illinois Administrative
Procedure Act, | ||||||
16 | issue a permit to any taxpayer in good standing with the
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17 | Department who is eligible for the exemption under this | ||||||
18 | subsection (j). The
permit issued under this subsection (j) | ||||||
19 | shall authorize the holder, to the
extent and in the manner | ||||||
20 | specified in the rules adopted under this Act, to
purchase | ||||||
21 | tangible personal property from a retailer exempt from the | ||||||
22 | taxes
imposed by this Act. Taxpayers shall maintain all | ||||||
23 | necessary books and records
to substantiate the use and | ||||||
24 | consumption of all such tangible personal property
outside of | ||||||
25 | the State of Illinois.
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26 | (Source: P.A. 97-73, eff. 6-30-11.)
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1 | (35 ILCS 105/3-61)
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2 | Sec. 3-61. Motor vehicles; trailers; use as rolling stock | ||||||
3 | definition. | ||||||
4 | (a) (Blank). Through
June 30, 2003, "use
as
rolling stock | ||||||
5 | moving
in
interstate commerce" in subsections (b) and (c) of | ||||||
6 | Section 3-55 means for motor
vehicles, as defined in Section | ||||||
7 | 1-146 of the Illinois Vehicle Code, and
trailers, as defined in | ||||||
8 | Section 1-209 of the Illinois Vehicle Code, when on 15
or more | ||||||
9 | occasions in a 12-month period the motor vehicle and trailer | ||||||
10 | has
carried
persons or
property for hire in interstate | ||||||
11 | commerce, even just between points in Illinois,
if the motor | ||||||
12 | vehicle and trailer transports persons whose journeys or | ||||||
13 | property
whose shipments originate or terminate outside | ||||||
14 | Illinois. This definition
applies to all property purchased for | ||||||
15 | the purpose of being
attached to those motor vehicles or | ||||||
16 | trailers as a part thereof.
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17 | (b) (Blank). On and after July 1, 2003 and through June 30, | ||||||
18 | 2004, "use as rolling stock moving in interstate
commerce" in
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19 | paragraphs (b) and (c) of Section 3-55 occurs for motor | ||||||
20 | vehicles, as defined in
Section 1-146 of the Illinois Vehicle | ||||||
21 | Code, when during a 12-month period
the
rolling stock has | ||||||
22 | carried persons or property for hire in interstate commerce
for | ||||||
23 | 51% of
its total trips and transports persons whose journeys or | ||||||
24 | property whose
shipments
originate or terminate outside | ||||||
25 | Illinois. Trips that are only between points in
Illinois shall
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1 | not be counted as interstate trips when calculating whether the | ||||||
2 | tangible
personal property
qualifies for the exemption but such | ||||||
3 | trips shall be included in total trips
taken.
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4 | (c) This subsection (c) applies to motor vehicles, other | ||||||
5 | than limousines, purchased through June 30, 2017. For motor | ||||||
6 | vehicles, other than limousines, purchased on or after July 1, | ||||||
7 | 2017, subsection (d-5) applies. This subsection (c) applies to | ||||||
8 | limousines purchased before, on, or after July 1, 2017. "Use | ||||||
9 | Beginning July 1, 2004, "use as rolling stock moving in | ||||||
10 | interstate commerce" in paragraph paragraphs (b) and (c) of | ||||||
11 | Section 3-55 occurs for motor vehicles, as defined in Section | ||||||
12 | 1-146 of the Illinois Vehicle Code, when during a 12-month | ||||||
13 | period the rolling stock has carried persons or property for | ||||||
14 | hire in interstate commerce for greater than 50% of its total | ||||||
15 | trips for that period or for greater than 50% of its total | ||||||
16 | miles for that period. The person claiming the exemption shall | ||||||
17 | make an election at the time of purchase to use either the | ||||||
18 | trips or mileage method. Persons who purchased motor vehicles | ||||||
19 | prior to July 1, 2004 shall make an election to use either the | ||||||
20 | trips or mileage method and document that election in their | ||||||
21 | books and records. If no election is made under this subsection | ||||||
22 | to use the trips or mileage method, the person shall be deemed | ||||||
23 | to have chosen the mileage method. | ||||||
24 | For purposes of determining qualifying trips or miles, | ||||||
25 | motor vehicles that carry persons or property for hire, even | ||||||
26 | just between points in Illinois, will be considered used for |
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1 | hire in interstate commerce if the motor vehicle transports | ||||||
2 | persons whose journeys or property whose shipments originate or | ||||||
3 | terminate outside Illinois. The exemption for motor vehicles
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4 | used as rolling stock moving in interstate commerce may be
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5 | claimed only for the following vehicles: (i) motor vehicles | ||||||
6 | whose gross vehicle weight
rating exceeds 16,000 pounds; and | ||||||
7 | (ii) limousines, as defined in Section 1-139.1 of the Illinois | ||||||
8 | Vehicle Code. Through June 30, 2017, this This definition | ||||||
9 | applies to all property purchased for the purpose of being | ||||||
10 | attached to those motor vehicles as a part thereof. On and | ||||||
11 | after July 1, 2017, this definition applies to property | ||||||
12 | purchased for the purpose of being attached to limousines as a | ||||||
13 | part thereof. | ||||||
14 | (d) For purchases made through June 30, 2017 Beginning July | ||||||
15 | 1, 2004 , "use as rolling stock moving in interstate commerce" | ||||||
16 | in paragraph paragraphs (b) and (c) of Section 3-55 occurs for | ||||||
17 | trailers, as defined in Section 1-209 of the Illinois Vehicle | ||||||
18 | Code, semitrailers as defined in Section 1-187 of the Illinois | ||||||
19 | Vehicle Code, and pole trailers as defined in Section 1-161 of | ||||||
20 | the Illinois Vehicle Code, when during a 12-month period the | ||||||
21 | rolling stock has carried persons or property for hire in | ||||||
22 | interstate commerce for greater than 50% of its total trips for | ||||||
23 | that period or for greater than 50% of its total miles for that | ||||||
24 | period. The person claiming the exemption for a trailer or | ||||||
25 | trailers that will not be dedicated to a motor vehicle or group | ||||||
26 | of motor vehicles shall make an election at the time of |
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1 | purchase to use either the trips or mileage method. Persons who | ||||||
2 | purchased trailers prior to July 1, 2004 that are not dedicated | ||||||
3 | to a motor vehicle or group of motor vehicles shall make an | ||||||
4 | election to use either the trips or mileage method and document | ||||||
5 | that election in their books and records. If no election is | ||||||
6 | made under this subsection to use the trips or mileage method, | ||||||
7 | the person shall be deemed to have chosen the mileage method. | ||||||
8 | For purposes of determining qualifying trips or miles, | ||||||
9 | trailers, semitrailers, or pole trailers that carry property | ||||||
10 | for hire, even just between points in Illinois, will be | ||||||
11 | considered used for hire in interstate commerce if the | ||||||
12 | trailers, semitrailers, or pole trailers transport property | ||||||
13 | whose shipments originate or terminate outside Illinois. This | ||||||
14 | definition applies to all property purchased for the purpose of | ||||||
15 | being attached to those trailers, semitrailers, or pole | ||||||
16 | trailers as a part thereof. In lieu of a person providing | ||||||
17 | documentation regarding the qualifying use of each individual | ||||||
18 | trailer, semitrailer, or pole trailer, that person may document | ||||||
19 | such qualifying use by providing documentation of the | ||||||
20 | following: | ||||||
21 | (1) If a trailer, semitrailer, or pole trailer is | ||||||
22 | dedicated to a motor vehicle that qualifies as rolling | ||||||
23 | stock moving in interstate commerce under subsection (c) of | ||||||
24 | this Section, then that trailer, semitrailer, or pole | ||||||
25 | trailer qualifies as rolling stock moving in interstate | ||||||
26 | commerce under this subsection. |
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1 | (2) If a trailer, semitrailer, or pole trailer is | ||||||
2 | dedicated to a group of motor vehicles that all qualify as | ||||||
3 | rolling stock moving in interstate commerce under | ||||||
4 | subsection (c) of this Section, then that trailer, | ||||||
5 | semitrailer, or pole trailer qualifies as rolling stock | ||||||
6 | moving in interstate commerce under this subsection. | ||||||
7 | (3) If one or more trailers, semitrailers, or pole | ||||||
8 | trailers are dedicated to a group of motor vehicles and not | ||||||
9 | all of those motor vehicles in that group qualify as | ||||||
10 | rolling stock moving in interstate commerce under | ||||||
11 | subsection (c) of this Section, then the percentage of | ||||||
12 | those trailers, semitrailers, or pole trailers that | ||||||
13 | qualifies as rolling stock moving in interstate commerce | ||||||
14 | under this subsection is equal to the percentage of those | ||||||
15 | motor vehicles in that group that qualify as rolling stock | ||||||
16 | moving in interstate commerce under subsection (c) of this | ||||||
17 | Section to which those trailers, semitrailers, or pole | ||||||
18 | trailers are dedicated. However, to determine the | ||||||
19 | qualification for the exemption provided under this item | ||||||
20 | (3), the mathematical application of the qualifying | ||||||
21 | percentage to one or more trailers, semitrailers, or pole | ||||||
22 | trailers under this subpart shall not be allowed as to any | ||||||
23 | fraction of a trailer, semitrailer, or pole trailer.
| ||||||
24 | (d-5) For motor vehicles and trailers purchased on or after | ||||||
25 | July 1, 2017, "use as rolling stock moving in interstate | ||||||
26 | commerce" means that: |
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1 | (1) the motor vehicle or trailer is used to transport | ||||||
2 | persons or property for hire; | ||||||
3 | (2) for purposes of the exemption under subsection (c) | ||||||
4 | of Section 3-55, the purchaser who is an owner, lessor, or | ||||||
5 | shipper claiming the exemption certifies that the motor | ||||||
6 | vehicle or trailer will be utilized, from the time of | ||||||
7 | purchase and continuing through the statute of limitations | ||||||
8 | for issuing a notice of tax liability under this Act, by an | ||||||
9 | interstate carrier or carriers for hire who hold, and are | ||||||
10 | required by Federal Motor Carrier Safety Administration | ||||||
11 | regulations to hold, an active USDOT Number with the | ||||||
12 | Carrier Operation listed as "Interstate" and the Operation | ||||||
13 | Classification listed as "authorized for hire", "exempt | ||||||
14 | for hire", or both "authorized for hire" and "exempt for | ||||||
15 | hire"; and | ||||||
16 | (3) for motor vehicles, the gross vehicle weight rating | ||||||
17 | exceeds 16,000 pounds. | ||||||
18 | The definition of "use as rolling stock moving in | ||||||
19 | interstate commerce" in this subsection (d-5) applies to all | ||||||
20 | property purchased on or after July 1, 2017 for the purpose of | ||||||
21 | being attached to a motor vehicle or trailer as a part thereof, | ||||||
22 | regardless of whether the motor vehicle or trailer was | ||||||
23 | purchased before, on, or after July 1, 2017. | ||||||
24 | If an item ceases to meet requirements (1) through (3) | ||||||
25 | under this subsection (d-5), then the tax is imposed on the | ||||||
26 | selling price, allowing for a reasonable depreciation for the |
| |||||||
| |||||||
1 | period during which the item qualified for the exemption. | ||||||
2 | For purposes of this subsection (d-5): | ||||||
3 | "Motor vehicle" excludes limousines, but otherwise | ||||||
4 | means that term as defined in Section 1-146 of the Illinois | ||||||
5 | Vehicle Code. | ||||||
6 | "Trailer" means (i) "trailer", as defined in Section | ||||||
7 | 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as | ||||||
8 | defined in Section 1-187 of the Illinois Vehicle Code, and | ||||||
9 | (iii) "pole trailer" as defined in Section 1-161 of the | ||||||
10 | Illinois Vehicle Code. | ||||||
11 | (e) For aircraft and watercraft purchased on or after | ||||||
12 | January 1, 2014, "use as rolling stock moving in interstate | ||||||
13 | commerce" in paragraph paragraphs (b) and (c) of Section 3-55 | ||||||
14 | occurs when, during a 12-month period, the rolling stock has | ||||||
15 | carried persons or property for hire in interstate commerce for | ||||||
16 | greater than 50% of its total trips for that period or for | ||||||
17 | greater than 50% of its total miles for that period. The person | ||||||
18 | claiming the exemption shall make an election at the time of | ||||||
19 | purchase to use either the trips or mileage method and document | ||||||
20 | that election in their books and records. If no election is | ||||||
21 | made under this subsection to use the trips or mileage method, | ||||||
22 | the person shall be deemed to have chosen the mileage method. | ||||||
23 | For aircraft, flight hours may be used in lieu of recording | ||||||
24 | miles in determining whether the aircraft meets the mileage | ||||||
25 | test in this subsection. For watercraft, nautical miles or trip | ||||||
26 | hours may be used in lieu of recording miles in determining |
| |||||||
| |||||||
1 | whether the watercraft meets the mileage test in this | ||||||
2 | subsection. | ||||||
3 | Notwithstanding any other provision of law to the contrary, | ||||||
4 | property purchased on or after January 1, 2014 for the purpose | ||||||
5 | of being attached to aircraft or watercraft as a part thereof | ||||||
6 | qualifies as rolling stock moving in interstate commerce only | ||||||
7 | if the aircraft or watercraft to which it will be attached | ||||||
8 | qualifies as rolling stock moving in interstate commerce under | ||||||
9 | the test set forth in this subsection (e), regardless of when | ||||||
10 | the aircraft or watercraft was purchased. Persons who purchased | ||||||
11 | aircraft or watercraft prior to January 1, 2014 shall make an | ||||||
12 | election to use either the trips or mileage method and document | ||||||
13 | that election in their books and records for the purpose of | ||||||
14 | determining whether property purchased on or after January 1, | ||||||
15 | 2014 for the purpose of being attached to aircraft or | ||||||
16 | watercraft as a part thereof qualifies as rolling stock moving | ||||||
17 | in interstate commerce under this subsection (e). | ||||||
18 | (f) The election to use either the trips or mileage method | ||||||
19 | made under the provisions of subsections (c), (d), or (e) of | ||||||
20 | this Section will remain in effect for the duration of the | ||||||
21 | purchaser's ownership of that item. | ||||||
22 | (Source: P.A. 98-584, eff. 8-27-13.)
| ||||||
23 | (35 ILCS 105/10) (from Ch. 120, par. 439.10) | ||||||
24 | Sec. 10. Except as to motor vehicles, aircraft, watercraft, | ||||||
25 | and
trailers, and except as to cigarettes as defined in the |
| |||||||
| |||||||
1 | Cigarette Use Tax Act, when tangible personal
property is
| ||||||
2 | purchased from a retailer for use in this State by a purchaser
| ||||||
3 | who did not pay the tax imposed by this Act to the retailer, | ||||||
4 | and who does not
file returns with the Department as a retailer | ||||||
5 | under Section 9 of this
Act, such purchaser (by the last day of | ||||||
6 | the month following the calendar
month in which such purchaser | ||||||
7 | makes any payment upon the selling price of
such property) | ||||||
8 | shall, except as otherwise provided in this Section, file
a | ||||||
9 | return with the Department and pay the tax upon that portion of | ||||||
10 | the
selling price so paid by the purchaser during the preceding | ||||||
11 | calendar month.
When tangible personal property, including but | ||||||
12 | not limited to motor vehicles
and aircraft, is purchased by a | ||||||
13 | lessor, under a lease for
one year or longer, executed or in | ||||||
14 | effect at the time of purchase to an
interstate carrier for | ||||||
15 | hire, who did not pay the tax imposed by this Act to the
| ||||||
16 | retailer, such lessor (by the last day of the month following | ||||||
17 | the calendar
month in which such property reverts to the use of | ||||||
18 | such lessor) shall file
a return with the Department and pay | ||||||
19 | the tax upon the fair market value of
such property on the date | ||||||
20 | of such reversion.
However, in determining the fair market | ||||||
21 | value at the time of reversion, the
fair market value of such | ||||||
22 | property shall not exceed the original purchase price
of the | ||||||
23 | property that was paid by the lessor at the time of purchase.
| ||||||
24 | Such return shall be filed on
a form prescribed by the | ||||||
25 | Department and shall contain such information as
the Department | ||||||
26 | may reasonably require. Such return and payment from the
|
| |||||||
| |||||||
1 | purchaser shall be submitted to the Department sooner than the | ||||||
2 | last day of
the month after the month in which the purchase is | ||||||
3 | made to the extent that
that may be necessary in order to | ||||||
4 | secure the title to a motor vehicle or
the certificate of | ||||||
5 | registration for an aircraft. However, except as to motor
| ||||||
6 | vehicles and aircraft, and except as to cigarettes as defined | ||||||
7 | in the Cigarette Use Tax Act, if the
purchaser's annual use tax | ||||||
8 | liability does not exceed $600, the purchaser
may file the | ||||||
9 | return on an annual basis on or before April 15th of the year
| ||||||
10 | following the year use tax liability was incurred. Individual | ||||||
11 | purchasers with an annual use tax liability that does not | ||||||
12 | exceed $600 may, in lieu of the filing and payment requirements | ||||||
13 | in this Section, file and pay in compliance with Section 502.1 | ||||||
14 | of the Illinois Income Tax Act. | ||||||
15 | If cigarettes, as defined in the Cigarette Use Tax Act, are | ||||||
16 | purchased from a retailer for use in this State by a purchaser | ||||||
17 | who did not pay the tax imposed by this Act to the retailer, | ||||||
18 | and who does not file returns with the Department as a retailer | ||||||
19 | under Section 9 of this Act, such purchaser must, within 30 | ||||||
20 | days after acquiring the cigarettes, file a return with the | ||||||
21 | Department and pay the tax upon that portion of the selling | ||||||
22 | price so paid by the purchaser for the cigarettes. | ||||||
23 | In addition with respect to motor vehicles,
aircraft, | ||||||
24 | watercraft, and trailers, a purchaser of such tangible personal
| ||||||
25 | property for use in this
State, who purchases such tangible | ||||||
26 | personal property from an out-of-state
retailer, shall file |
| |||||||
| |||||||
1 | with the Department, upon a form to be prescribed and
supplied | ||||||
2 | by the Department, a return for each such item of tangible
| ||||||
3 | personal property purchased, except that if, in the same | ||||||
4 | transaction, (i) a
purchaser of motor vehicles,
aircraft, | ||||||
5 | watercraft, or trailers who is a retailer of motor vehicles,
| ||||||
6 | aircraft, watercraft, or trailers purchases more than one motor | ||||||
7 | vehicle,
aircraft, watercraft, or trailer for the purpose of | ||||||
8 | resale or (ii) a purchaser
of motor vehicles, aircraft, | ||||||
9 | watercraft, or trailers purchases more
than one motor vehicle, | ||||||
10 | aircraft, watercraft, or trailer for use as qualifying
rolling | ||||||
11 | stock as provided in Section 3-55 of this Act, then the | ||||||
12 | purchaser may
report the purchase of all motor vehicles, | ||||||
13 | aircraft, watercraft, or trailers
involved in that transaction | ||||||
14 | to the Department on a single return prescribed by
the | ||||||
15 | Department. Such return in the case of motor vehicles and
| ||||||
16 | aircraft must show the name and address of the seller, the | ||||||
17 | name, address of
purchaser, the amount of the selling price | ||||||
18 | including the amount allowed by
the retailer for traded in | ||||||
19 | property, if any; the amount allowed by the
retailer for the | ||||||
20 | traded-in tangible personal property, if any, to the
extent to | ||||||
21 | which Section 2 of this Act allows an exemption for the value | ||||||
22 | of
traded-in property; the balance payable after deducting such | ||||||
23 | trade-in
allowance from the total selling price; the amount of | ||||||
24 | tax due from the
purchaser with respect to such transaction; | ||||||
25 | the amount of tax collected
from the purchaser by the retailer | ||||||
26 | on such transaction (or satisfactory
evidence that such tax is |
| |||||||
| |||||||
1 | not due in that particular instance if that is
claimed to be | ||||||
2 | the fact); the place and date of the sale, a sufficient
| ||||||
3 | identification of the property sold, and such other information | ||||||
4 | as the
Department may reasonably require. | ||||||
5 | Such return shall be filed not later than 30 days after | ||||||
6 | such motor
vehicle or aircraft is brought into this State for | ||||||
7 | use. | ||||||
8 | For purposes of this Section, "watercraft" means a Class 2, | ||||||
9 | Class 3, or
Class 4 watercraft as defined in Section 3-2 of the | ||||||
10 | Boat Registration and
Safety Act, a personal watercraft, or any | ||||||
11 | boat equipped with an inboard
motor. | ||||||
12 | The return and tax remittance or proof of exemption from | ||||||
13 | the tax that is
imposed by this Act may be transmitted to the | ||||||
14 | Department by way of the
State agency with which, or State | ||||||
15 | officer with whom, the tangible personal
property must be | ||||||
16 | titled or registered (if titling or registration is
required) | ||||||
17 | if the Department and such agency or State officer determine | ||||||
18 | that
this procedure will expedite the processing of | ||||||
19 | applications for title or
registration. | ||||||
20 | With each such return, the purchaser shall remit the proper | ||||||
21 | amount of tax
due (or shall submit satisfactory evidence that | ||||||
22 | the sale is not taxable if
that is the case), to the Department | ||||||
23 | or its agents, whereupon the
Department shall issue, in the | ||||||
24 | purchaser's name, a tax receipt (or a
certificate of exemption | ||||||
25 | if the Department is satisfied that the particular
sale is tax | ||||||
26 | exempt) which such purchaser may submit to the agency with
|
| |||||||
| |||||||
1 | which, or State officer with whom, he must title or register | ||||||
2 | the tangible
personal property that is involved (if titling or | ||||||
3 | registration is required)
in support of such purchaser's | ||||||
4 | application for an Illinois certificate or
other evidence of | ||||||
5 | title or registration to such tangible personal property. | ||||||
6 | When a purchaser pays a tax imposed by this Act directly to | ||||||
7 | the Department,
the Department (upon request therefor from such | ||||||
8 | purchaser) shall issue an
appropriate receipt to such purchaser | ||||||
9 | showing that he has paid such tax to
the Department. Such | ||||||
10 | receipt shall be sufficient to relieve the purchaser
from | ||||||
11 | further liability for the tax to which such receipt may refer. | ||||||
12 | A user who is liable to pay use tax directly to the | ||||||
13 | Department only
occasionally and not on a frequently recurring | ||||||
14 | basis, and who is not
required to file returns with the | ||||||
15 | Department as a retailer under Section 9
of this Act, or under | ||||||
16 | the "Retailers' Occupation Tax Act", or as a
registrant with | ||||||
17 | the Department under the "Service Occupation Tax Act" or
the | ||||||
18 | "Service Use Tax Act", need not register with the Department.
| ||||||
19 | However, if such a user has a frequently recurring direct use | ||||||
20 | tax liability
to pay to the Department, such user shall be | ||||||
21 | required to register with the
Department on forms prescribed by | ||||||
22 | the Department and to obtain and display
a certificate of | ||||||
23 | registration from the Department. In that event, all of
the | ||||||
24 | provisions of Section 9 of this Act concerning the filing of | ||||||
25 | regular
monthly, quarterly or annual tax returns and all of the | ||||||
26 | provisions of
Section 2a of the "Retailers' Occupation Tax Act" |
| |||||||
| |||||||
1 | concerning the
requirements for registrants to post bond or | ||||||
2 | other security with the
Department, as the provisions of such | ||||||
3 | sections now exist or may hereafter
be amended, shall apply to | ||||||
4 | such users to the same extent as if such
provisions were | ||||||
5 | included herein. | ||||||
6 | (Source: P.A. 96-520, eff. 8-14-09; 96-1000, eff. 7-2-10; | ||||||
7 | 96-1388, eff. 7-29-10.)
| ||||||
8 | Section 10. The Service Use Tax Act is amended by changing | ||||||
9 | Sections 2 and 3-51 as follows:
| ||||||
10 | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
| ||||||
11 | Sec. 2. Definitions. | ||||||
12 | "Use" means the exercise by any person of any right or | ||||||
13 | power
over tangible personal property incident to the ownership | ||||||
14 | of that
property, but does not include the sale or use for | ||||||
15 | demonstration by him
of that property in any form as tangible | ||||||
16 | personal property in the
regular course of business.
"Use" does | ||||||
17 | not mean the interim
use of
tangible personal property nor the | ||||||
18 | physical incorporation of tangible
personal property, as an | ||||||
19 | ingredient or constituent, into other tangible
personal | ||||||
20 | property, (a) which is sold in the regular course of business
| ||||||
21 | or (b) which the person incorporating such ingredient or | ||||||
22 | constituent
therein has undertaken at the time of such purchase | ||||||
23 | to cause to be
transported in interstate commerce to | ||||||
24 | destinations outside the State of
Illinois.
|
| |||||||
| |||||||
1 | "Purchased from a serviceman" means the acquisition of the | ||||||
2 | ownership
of, or title to, tangible personal property through a | ||||||
3 | sale of service.
| ||||||
4 | "Purchaser" means any person who, through a sale of | ||||||
5 | service, acquires
the ownership of, or title to, any tangible | ||||||
6 | personal property.
| ||||||
7 | "Cost price" means the consideration paid by the serviceman | ||||||
8 | for a
purchase valued in money, whether paid in money or | ||||||
9 | otherwise, including
cash, credits and services, and shall be | ||||||
10 | determined without any
deduction on account of the supplier's | ||||||
11 | cost of the property sold or on
account of any other expense | ||||||
12 | incurred by the supplier. When a serviceman
contracts out part | ||||||
13 | or all of the services required in his sale of service,
it | ||||||
14 | shall be presumed that the cost price to the serviceman of the | ||||||
15 | property
transferred to him or her by his or her subcontractor | ||||||
16 | is equal to 50% of
the subcontractor's charges to the | ||||||
17 | serviceman in the absence of proof of
the consideration paid by | ||||||
18 | the subcontractor for the purchase of such property.
| ||||||
19 | "Selling price" means the consideration for a sale valued | ||||||
20 | in money
whether received in money or otherwise, including | ||||||
21 | cash, credits and
service, and shall be determined without any | ||||||
22 | deduction on account of the
serviceman's cost of the property | ||||||
23 | sold, the cost of materials used,
labor or service cost or any | ||||||
24 | other expense whatsoever, but does not
include interest or | ||||||
25 | finance charges which appear as separate items on
the bill of | ||||||
26 | sale or sales contract nor charges that are added to prices
by |
| |||||||
| |||||||
1 | sellers on account of the seller's duty to collect, from the
| ||||||
2 | purchaser, the tax that is imposed by this Act.
| ||||||
3 | "Department" means the Department of Revenue.
| ||||||
4 | "Person" means any natural individual, firm, partnership,
| ||||||
5 | association, joint stock company, joint venture, public or | ||||||
6 | private
corporation, limited liability company, and any | ||||||
7 | receiver, executor, trustee,
guardian or other representative | ||||||
8 | appointed by order of any court.
| ||||||
9 | "Sale of service" means any transaction except:
| ||||||
10 | (1) a retail sale of tangible personal property taxable | ||||||
11 | under the
Retailers' Occupation Tax Act or under the Use | ||||||
12 | Tax Act.
| ||||||
13 | (2) a sale of tangible personal property for the | ||||||
14 | purpose of resale
made in compliance with Section 2c of the | ||||||
15 | Retailers' Occupation Tax Act.
| ||||||
16 | (3) except as hereinafter provided, a sale or transfer | ||||||
17 | of tangible
personal property as an incident to the | ||||||
18 | rendering of service for or by
any governmental body, or | ||||||
19 | for or by any corporation, society,
association, | ||||||
20 | foundation or institution organized and operated
| ||||||
21 | exclusively for charitable, religious or educational | ||||||
22 | purposes or any
not-for-profit corporation, society, | ||||||
23 | association, foundation,
institution or organization which | ||||||
24 | has no compensated officers or
employees and which is | ||||||
25 | organized and operated primarily for the
recreation of | ||||||
26 | persons 55 years of age or older. A limited liability |
| |||||||
| |||||||
1 | company
may qualify for the exemption under this paragraph | ||||||
2 | only if the limited
liability company is organized and | ||||||
3 | operated exclusively for educational
purposes.
| ||||||
4 | (4) (blank). a sale or transfer of tangible personal
| ||||||
5 | property as an incident to the
rendering of service for | ||||||
6 | interstate carriers for hire for use as rolling stock
| ||||||
7 | moving in interstate commerce or by lessors under a lease | ||||||
8 | of one year or
longer, executed or in effect at the time of | ||||||
9 | purchase of personal property, to
interstate carriers for | ||||||
10 | hire for use as rolling stock moving in interstate
commerce | ||||||
11 | so long as so used by such interstate carriers for hire, | ||||||
12 | and equipment
operated by a telecommunications provider, | ||||||
13 | licensed as a common carrier by the
Federal Communications | ||||||
14 | Commission, which is permanently installed in or affixed
to | ||||||
15 | aircraft moving in interstate commerce.
| ||||||
16 | (4a) a sale or transfer of tangible personal
property | ||||||
17 | as an incident
to the rendering of service for owners, | ||||||
18 | lessors, or shippers of tangible
personal property which is | ||||||
19 | utilized by interstate carriers for hire for
use as rolling | ||||||
20 | stock moving in interstate commerce so long as so used by
| ||||||
21 | interstate carriers for hire, and equipment operated by a
| ||||||
22 | telecommunications provider, licensed as a common carrier | ||||||
23 | by the Federal
Communications Commission, which is | ||||||
24 | permanently installed in or affixed to
aircraft moving in | ||||||
25 | interstate commerce.
| ||||||
26 | (4a-5) on and after July 1, 2003 and through June 30, |
| |||||||
| |||||||
1 | 2004, a sale or transfer of a motor vehicle
of
the
second | ||||||
2 | division with a gross vehicle weight in excess of 8,000 | ||||||
3 | pounds as an
incident to the rendering of service if that | ||||||
4 | motor
vehicle is subject
to the commercial distribution fee | ||||||
5 | imposed under Section 3-815.1 of the
Illinois Vehicle
Code. | ||||||
6 | Beginning on July 1, 2004 and through June 30, 2005, the | ||||||
7 | use in this State of motor vehicles of the second division: | ||||||
8 | (i) with a gross vehicle weight rating in excess of 8,000 | ||||||
9 | pounds; (ii) that are subject to the commercial | ||||||
10 | distribution fee imposed under Section 3-815.1 of the | ||||||
11 | Illinois Vehicle Code; and (iii) that are primarily used | ||||||
12 | for commercial purposes. Through June 30, 2005, this
| ||||||
13 | exemption applies to repair and replacement parts added | ||||||
14 | after the
initial
purchase of such a motor vehicle if that | ||||||
15 | motor vehicle is used in a manner that
would
qualify for | ||||||
16 | the rolling stock exemption otherwise provided for in this | ||||||
17 | Act. For purposes of this paragraph, "used for commercial | ||||||
18 | purposes" means the transportation of persons or property | ||||||
19 | in furtherance of any commercial or industrial enterprise | ||||||
20 | whether for-hire or not.
| ||||||
21 | (5) a sale or transfer of machinery and equipment used | ||||||
22 | primarily in the
process of the manufacturing or | ||||||
23 | assembling, either in an existing, an expanded
or a new | ||||||
24 | manufacturing facility, of tangible personal property for | ||||||
25 | wholesale or
retail sale or lease, whether such sale or | ||||||
26 | lease is made directly by the
manufacturer or by some other |
| |||||||
| |||||||
1 | person, whether the materials used in the process
are owned | ||||||
2 | by the manufacturer or some other person, or whether such | ||||||
3 | sale or
lease is made apart from or as an incident to the | ||||||
4 | seller's engaging in a
service occupation and the | ||||||
5 | applicable tax is a Service Use Tax or Service
Occupation | ||||||
6 | Tax, rather than Use Tax or Retailers' Occupation Tax. The | ||||||
7 | exemption provided by this paragraph (5) does not include | ||||||
8 | machinery and equipment used in (i) the generation of | ||||||
9 | electricity for wholesale or retail sale; (ii) the | ||||||
10 | generation or treatment of natural or artificial gas for | ||||||
11 | wholesale or retail sale that is delivered to customers | ||||||
12 | through pipes, pipelines, or mains; or (iii) the treatment | ||||||
13 | of water for wholesale or retail sale that is delivered to | ||||||
14 | customers through pipes, pipelines, or mains. The | ||||||
15 | provisions of this amendatory Act of the 98th General | ||||||
16 | Assembly are declaratory of existing law as to the meaning | ||||||
17 | and scope of this exemption.
| ||||||
18 | (5a) the repairing, reconditioning or remodeling, for | ||||||
19 | a
common carrier by rail, of tangible personal property | ||||||
20 | which belongs to such
carrier for hire, and as to which | ||||||
21 | such carrier receives the physical possession
of the | ||||||
22 | repaired, reconditioned or remodeled item of tangible | ||||||
23 | personal property
in Illinois, and which such carrier | ||||||
24 | transports, or shares with another common
carrier in the | ||||||
25 | transportation of such property, out of Illinois on a | ||||||
26 | standard
uniform bill of lading showing the person who |
| |||||||
| |||||||
1 | repaired, reconditioned or
remodeled the property to a | ||||||
2 | destination outside Illinois, for use outside
Illinois.
| ||||||
3 | (5b) a sale or transfer of tangible personal property | ||||||
4 | which is produced by
the seller thereof on special order in | ||||||
5 | such a way as to have made the
applicable tax the Service | ||||||
6 | Occupation Tax or the Service Use Tax, rather than
the | ||||||
7 | Retailers' Occupation Tax or the Use Tax, for an interstate | ||||||
8 | carrier by rail
which receives the physical possession of | ||||||
9 | such property in Illinois, and which
transports such | ||||||
10 | property, or shares with another common carrier in the
| ||||||
11 | transportation of such property, out of Illinois on a | ||||||
12 | standard uniform bill of
lading showing the seller of the | ||||||
13 | property as the shipper or consignor of such
property to a | ||||||
14 | destination outside Illinois, for use outside Illinois.
| ||||||
15 | (6) until July 1, 2003, a sale or transfer of | ||||||
16 | distillation machinery
and equipment, sold
as a unit or kit | ||||||
17 | and assembled or installed by the retailer, which
machinery | ||||||
18 | and equipment is certified by the user to be used only for | ||||||
19 | the
production of ethyl alcohol that will be used for | ||||||
20 | consumption as motor fuel
or as a component of motor fuel | ||||||
21 | for the personal use of such user and not
subject to sale | ||||||
22 | or resale.
| ||||||
23 | (7) at the election of any serviceman not required to | ||||||
24 | be
otherwise registered as a retailer under Section 2a of | ||||||
25 | the Retailers'
Occupation Tax Act, made for each fiscal | ||||||
26 | year sales
of service in which the aggregate annual cost |
| |||||||
| |||||||
1 | price of tangible
personal property transferred as an | ||||||
2 | incident to the sales of service is
less than 35%, or 75% | ||||||
3 | in the case of servicemen transferring prescription
drugs | ||||||
4 | or servicemen engaged in graphic arts production, of the | ||||||
5 | aggregate
annual total gross receipts from all sales of | ||||||
6 | service. The purchase of
such tangible personal property by | ||||||
7 | the serviceman shall be subject to tax
under the Retailers' | ||||||
8 | Occupation Tax Act and the Use Tax Act.
However, if a
| ||||||
9 | primary serviceman who has made the election described in | ||||||
10 | this paragraph
subcontracts service work to a secondary | ||||||
11 | serviceman who has also made the
election described in this | ||||||
12 | paragraph, the primary serviceman does not
incur a Use Tax | ||||||
13 | liability if the secondary serviceman (i) has paid or will | ||||||
14 | pay
Use
Tax on his or her cost price of any tangible | ||||||
15 | personal property transferred
to the primary serviceman | ||||||
16 | and (ii) certifies that fact in writing to the
primary
| ||||||
17 | serviceman.
| ||||||
18 | Tangible personal property transferred incident to the | ||||||
19 | completion of a
maintenance agreement is exempt from the tax | ||||||
20 | imposed pursuant to this Act.
| ||||||
21 | Exemption (5) also includes machinery and equipment used in | ||||||
22 | the general
maintenance or repair of such exempt machinery and | ||||||
23 | equipment or for in-house
manufacture of exempt machinery and | ||||||
24 | equipment. The machinery and equipment exemption does not | ||||||
25 | include machinery and equipment used in (i) the generation of | ||||||
26 | electricity for wholesale or retail sale; (ii) the generation |
| |||||||
| |||||||
1 | or treatment of natural or artificial gas for wholesale or | ||||||
2 | retail sale that is delivered to customers through pipes, | ||||||
3 | pipelines, or mains; or (iii) the treatment of water for | ||||||
4 | wholesale or retail sale that is delivered to customers through | ||||||
5 | pipes, pipelines, or mains. The provisions of this amendatory | ||||||
6 | Act of the 98th General Assembly are declaratory of existing | ||||||
7 | law as to the meaning and scope of this exemption. For the | ||||||
8 | purposes of exemption
(5), each of these terms shall have the | ||||||
9 | following meanings: (1) "manufacturing
process" shall mean the | ||||||
10 | production of any article of tangible personal
property, | ||||||
11 | whether such article is a finished product or an article for | ||||||
12 | use in
the process of manufacturing or assembling a different | ||||||
13 | article of tangible
personal property, by procedures commonly | ||||||
14 | regarded as manufacturing,
processing, fabricating, or | ||||||
15 | refining which changes some existing
material or materials into | ||||||
16 | a material with a different form, use or
name. In relation to a | ||||||
17 | recognized integrated business composed of a
series of | ||||||
18 | operations which collectively constitute manufacturing, or
| ||||||
19 | individually constitute manufacturing operations, the | ||||||
20 | manufacturing
process shall be deemed to commence with the | ||||||
21 | first operation or stage of
production in the series, and shall | ||||||
22 | not be deemed to end until the
completion of the final product | ||||||
23 | in the last operation or stage of
production in the series; and | ||||||
24 | further, for purposes of exemption (5),
photoprocessing is | ||||||
25 | deemed to be a manufacturing process of tangible
personal | ||||||
26 | property for wholesale or retail sale; (2) "assembling process" |
| |||||||
| |||||||
1 | shall
mean the production of any article of tangible personal | ||||||
2 | property, whether such
article is a finished product or an | ||||||
3 | article for use in the process of
manufacturing or assembling a | ||||||
4 | different article of tangible personal
property, by the | ||||||
5 | combination of existing materials in a manner commonly
regarded | ||||||
6 | as assembling which results in a material of a different form,
| ||||||
7 | use or name; (3) "machinery" shall mean major mechanical | ||||||
8 | machines or
major components of such machines contributing to a | ||||||
9 | manufacturing or
assembling process; and (4) "equipment" shall | ||||||
10 | include any independent
device or tool separate from any | ||||||
11 | machinery but essential to an
integrated manufacturing or | ||||||
12 | assembly process; including computers
used primarily in a | ||||||
13 | manufacturer's computer
assisted design, computer assisted | ||||||
14 | manufacturing (CAD/CAM) system;
or any subunit or assembly | ||||||
15 | comprising a component of any machinery or
auxiliary, adjunct | ||||||
16 | or attachment parts of machinery, such as tools, dies,
jigs, | ||||||
17 | fixtures, patterns and molds; or any parts which require | ||||||
18 | periodic
replacement in the course of normal operation; but | ||||||
19 | shall not include hand
tools.
Equipment includes chemicals or | ||||||
20 | chemicals acting as catalysts but only if the
chemicals or | ||||||
21 | chemicals acting as catalysts effect a direct and immediate | ||||||
22 | change
upon a
product being manufactured or assembled for | ||||||
23 | wholesale or retail sale or
lease.
The purchaser of such | ||||||
24 | machinery and equipment who has an active
resale registration | ||||||
25 | number shall furnish such number to the seller at the
time of | ||||||
26 | purchase. The user of such machinery and equipment and tools
|
| |||||||
| |||||||
1 | without an active resale registration number shall prepare a | ||||||
2 | certificate of
exemption for each transaction stating facts | ||||||
3 | establishing the exemption for
that transaction, which | ||||||
4 | certificate shall be available to the Department
for inspection | ||||||
5 | or audit. The Department shall prescribe the form of the
| ||||||
6 | certificate.
| ||||||
7 | Any informal rulings, opinions or letters issued by the | ||||||
8 | Department in
response to an inquiry or request for any opinion | ||||||
9 | from any person
regarding the coverage and applicability of | ||||||
10 | exemption (5) to specific
devices shall be published, | ||||||
11 | maintained as a public record, and made
available for public | ||||||
12 | inspection and copying. If the informal ruling,
opinion or | ||||||
13 | letter contains trade secrets or other confidential
| ||||||
14 | information, where possible the Department shall delete such | ||||||
15 | information
prior to publication. Whenever such informal | ||||||
16 | rulings, opinions, or
letters contain any policy of general | ||||||
17 | applicability, the Department
shall formulate and adopt such | ||||||
18 | policy as a rule in accordance with the
provisions of the | ||||||
19 | Illinois Administrative Procedure Act.
| ||||||
20 | On and after July 1, 1987, no entity otherwise eligible | ||||||
21 | under exemption
(3) of this Section shall make tax free | ||||||
22 | purchases unless it has an active
exemption identification | ||||||
23 | number issued by the Department.
| ||||||
24 | The purchase, employment and transfer of such tangible | ||||||
25 | personal
property as newsprint and ink for the primary purpose | ||||||
26 | of conveying news
(with or without other information) is not a |
| |||||||
| |||||||
1 | purchase, use or sale of
service or of tangible personal | ||||||
2 | property within the meaning of this Act.
| ||||||
3 | "Serviceman" means any person who is engaged in the | ||||||
4 | occupation of
making sales of service.
| ||||||
5 | "Sale at retail" means "sale at retail" as defined in the | ||||||
6 | Retailers'
Occupation Tax Act.
| ||||||
7 | "Supplier" means any person who makes sales of tangible | ||||||
8 | personal
property to servicemen for the purpose of resale as an | ||||||
9 | incident to a
sale of service.
| ||||||
10 | "Serviceman maintaining a place of business in this State", | ||||||
11 | or any
like term, means and includes any serviceman:
| ||||||
12 | 1. having or maintaining within this State, directly or | ||||||
13 | by a
subsidiary, an office, distribution house, sales | ||||||
14 | house, warehouse or
other place of business, or any agent | ||||||
15 | or other representative operating
within this State under | ||||||
16 | the authority of the serviceman or its
subsidiary, | ||||||
17 | irrespective of whether such place of business or agent or
| ||||||
18 | other representative is located here permanently or | ||||||
19 | temporarily, or
whether such serviceman or subsidiary is | ||||||
20 | licensed to do business in this
State; | ||||||
21 | 1.1. having a contract with a person located in this | ||||||
22 | State under which the person, for a commission or other | ||||||
23 | consideration based on the sale of service by the | ||||||
24 | serviceman, directly or indirectly refers potential | ||||||
25 | customers to the serviceman by providing to the potential | ||||||
26 | customers a promotional code or other mechanism that allows |
| |||||||
| |||||||
1 | the serviceman to track purchases referred by such persons. | ||||||
2 | Examples of mechanisms that allow the serviceman to track | ||||||
3 | purchases referred by such persons include but are not | ||||||
4 | limited to the use of a link on the person's Internet | ||||||
5 | website, promotional codes distributed through the | ||||||
6 | person's hand-delivered or mailed material, and | ||||||
7 | promotional codes distributed by the person through radio | ||||||
8 | or other broadcast media. The provisions of this paragraph | ||||||
9 | 1.1 shall apply only if the cumulative gross receipts from | ||||||
10 | sales of service by the serviceman to customers who are | ||||||
11 | referred to the serviceman by all persons in this State | ||||||
12 | under such contracts exceed $10,000 during the preceding 4 | ||||||
13 | quarterly periods ending on the last day of March, June, | ||||||
14 | September, and December; a serviceman meeting the | ||||||
15 | requirements of this paragraph 1.1 shall be presumed to be | ||||||
16 | maintaining a place of business in this State but may rebut | ||||||
17 | this presumption by submitting proof that the referrals or | ||||||
18 | other activities pursued within this State by such persons | ||||||
19 | were not sufficient to meet the nexus standards of the | ||||||
20 | United States Constitution during the preceding 4 | ||||||
21 | quarterly periods; | ||||||
22 | 1.2. beginning July 1, 2011, having a contract with a | ||||||
23 | person located in this State under which: | ||||||
24 | A. the serviceman sells the same or substantially | ||||||
25 | similar line of services as the person located in this | ||||||
26 | State and does so using an identical or substantially |
| |||||||
| |||||||
1 | similar name, trade name, or trademark as the person | ||||||
2 | located in this State; and | ||||||
3 | B. the serviceman provides a commission or other | ||||||
4 | consideration to the person located in this State based | ||||||
5 | upon the sale of services by the serviceman. | ||||||
6 | The provisions of this paragraph 1.2 shall apply only if | ||||||
7 | the cumulative gross receipts from sales of service by the | ||||||
8 | serviceman to customers in this State under all such | ||||||
9 | contracts exceed $10,000 during the preceding 4 quarterly | ||||||
10 | periods ending on the last day of March, June, September, | ||||||
11 | and December;
| ||||||
12 | 2. soliciting orders for tangible personal property by | ||||||
13 | means of a
telecommunication or television shopping system | ||||||
14 | (which utilizes toll free
numbers) which is intended by the | ||||||
15 | retailer to be broadcast by cable
television or other means | ||||||
16 | of broadcasting, to consumers located in this State;
| ||||||
17 | 3. pursuant to a contract with a broadcaster or | ||||||
18 | publisher located in this
State, soliciting orders for | ||||||
19 | tangible personal property by means of advertising
which is | ||||||
20 | disseminated primarily to consumers located in this State | ||||||
21 | and only
secondarily to bordering jurisdictions;
| ||||||
22 | 4. soliciting orders for tangible personal property by | ||||||
23 | mail if the
solicitations are substantial and recurring and | ||||||
24 | if the retailer benefits
from any banking, financing, debt | ||||||
25 | collection, telecommunication, or
marketing activities | ||||||
26 | occurring in this State or benefits from the location
in |
| |||||||
| |||||||
1 | this State of authorized installation, servicing, or | ||||||
2 | repair facilities;
| ||||||
3 | 5. being owned or controlled by the same interests | ||||||
4 | which own or
control any retailer engaging in business in | ||||||
5 | the same or similar line of
business in this State;
| ||||||
6 | 6. having a franchisee or licensee operating under its | ||||||
7 | trade name if
the franchisee or licensee is required to | ||||||
8 | collect the tax under this Section;
| ||||||
9 | 7. pursuant to a contract with a cable television | ||||||
10 | operator located in
this State, soliciting orders for | ||||||
11 | tangible personal property by means of
advertising which is | ||||||
12 | transmitted or distributed over a cable television
system | ||||||
13 | in this State; or
| ||||||
14 | 8. engaging in activities in Illinois, which | ||||||
15 | activities in the
state in which the supply business | ||||||
16 | engaging in such activities is located
would constitute | ||||||
17 | maintaining a place of business in that state.
| ||||||
18 | (Source: P.A. 98-583, eff. 1-1-14; 98-1089, eff. 1-1-15.)
| ||||||
19 | (35 ILCS 110/3-51)
| ||||||
20 | Sec. 3-51. Motor vehicles; trailers; use as rolling stock | ||||||
21 | definition. | ||||||
22 | (a) (Blank). Through
June 30, 2003, "use
as
rolling stock | ||||||
23 | moving
in
interstate commerce" in subsection (b) of Section | ||||||
24 | 3-45 means for motor
vehicles, as defined in Section 1-46 of | ||||||
25 | the Illinois Vehicle Code, and
trailers, as defined in Section |
| |||||||
| |||||||
1 | 1-209 of the Illinois Vehicle Code, when on 15
or more
| ||||||
2 | occasions in a 12-month period the motor vehicle and trailer | ||||||
3 | has carried
persons
or property
for hire in interstate | ||||||
4 | commerce, even just between points in Illinois, if the
motor | ||||||
5 | vehicle and trailer transports persons whose journeys or | ||||||
6 | property
whose shipments originate or terminate outside | ||||||
7 | Illinois. This definition
applies to all property purchased for | ||||||
8 | the purpose of being attached to those
motor
vehicles or | ||||||
9 | trailers as a part thereof.
| ||||||
10 | (b) (Blank). On and after July 1, 2003 and through June 30, | ||||||
11 | 2004, "use as rolling stock moving in interstate
commerce" in
| ||||||
12 | paragraphs (4) and (4a) of the definition of "sale of service" | ||||||
13 | in Section 2
and subsection (b) of Section 3-45 occurs for | ||||||
14 | motor vehicles, as defined in
Section 1-146 of the Illinois | ||||||
15 | Vehicle Code, when
during a 12-month period the rolling stock | ||||||
16 | has carried persons or property for
hire in
interstate commerce | ||||||
17 | for 51% of its total trips and transports persons whose
| ||||||
18 | journeys or
property whose shipments originate or terminate | ||||||
19 | outside Illinois. Trips that
are only
between points in | ||||||
20 | Illinois shall not be counted as interstate trips when
| ||||||
21 | calculating whether
the tangible personal property qualifies | ||||||
22 | for the exemption but such trips shall
be included
in total | ||||||
23 | trips taken.
| ||||||
24 | (c) This subsection (c) applies to motor vehicles, other | ||||||
25 | than limousines, purchased through June 30, 2017. For motor | ||||||
26 | vehicles, other than limousines, purchased on or after July 1, |
| |||||||
| |||||||
1 | 2017, subsection (d-5) applies. This subsection (c) applies to | ||||||
2 | limousines purchased before, on, or after July 1, 2017. "Use | ||||||
3 | Beginning July 1, 2004, "use as rolling stock moving in | ||||||
4 | interstate commerce" in paragraph paragraphs (4) and (4a) of | ||||||
5 | the definition of "sale of service" in Section 2 and subsection | ||||||
6 | (b) of Section 3-45 occurs for motor vehicles, as defined in | ||||||
7 | Section 1-146 of the Illinois Vehicle Code, when during a | ||||||
8 | 12-month period the rolling stock has carried persons or | ||||||
9 | property for hire in interstate commerce for greater than 50% | ||||||
10 | of its total trips for that period or for greater than 50% of | ||||||
11 | its total miles for that period. The person claiming the | ||||||
12 | exemption shall make an election at the time of purchase to use | ||||||
13 | either the trips or mileage method. Persons who purchased motor | ||||||
14 | vehicles prior to July 1, 2004 shall make an election to use | ||||||
15 | either the trips or mileage method and document that election | ||||||
16 | in their books and records. If no election is made under this | ||||||
17 | subsection to use the trips or mileage method, the person shall | ||||||
18 | be deemed to have chosen the mileage method. | ||||||
19 | For purposes of determining qualifying trips or miles, | ||||||
20 | motor vehicles that carry persons or property for hire, even | ||||||
21 | just between points in Illinois, will be considered used for | ||||||
22 | hire in interstate commerce if the motor vehicle transports | ||||||
23 | persons whose journeys or property whose shipments originate or | ||||||
24 | terminate outside Illinois. The exemption for motor vehicles
| ||||||
25 | used as rolling stock moving in interstate commerce may be
| ||||||
26 | claimed only for the following vehicles: (i) motor vehicles |
| |||||||
| |||||||
1 | whose gross vehicle weight
rating exceeds 16,000 pounds; and | ||||||
2 | (ii) limousines, as defined in Section 1-139.1 of the Illinois | ||||||
3 | Vehicle Code. Through June 30, 2017, this This definition | ||||||
4 | applies to all property purchased for the purpose of being | ||||||
5 | attached to those motor vehicles as a part thereof. On and | ||||||
6 | after July 1, 2017, this definition applies to property | ||||||
7 | purchased for the purpose of being attached to limousines as a | ||||||
8 | part thereof. | ||||||
9 | (d) For purchases made through June 30, 2017 Beginning July | ||||||
10 | 1, 2004 , "use as rolling stock moving in interstate commerce" | ||||||
11 | in paragraph paragraphs (4) and (4a) of the definition of "sale | ||||||
12 | of service" in Section 2 and subsection (b) of Section 3-45 | ||||||
13 | occurs for trailers, as defined in Section 1-209 of the | ||||||
14 | Illinois Vehicle Code, semitrailers as defined in Section 1-187 | ||||||
15 | of the Illinois Vehicle Code, and pole trailers as defined in | ||||||
16 | Section 1-161 of the Illinois Vehicle Code, when during a | ||||||
17 | 12-month period the rolling stock has carried persons or | ||||||
18 | property for hire in interstate commerce for greater than 50% | ||||||
19 | of its total trips for that period or for greater than 50% of | ||||||
20 | its total miles for that period. The person claiming the | ||||||
21 | exemption for a trailer or trailers that will not be dedicated | ||||||
22 | to a motor vehicle or group of motor vehicles shall make an | ||||||
23 | election at the time of purchase to use either the trips or | ||||||
24 | mileage method. Persons who purchased trailers prior to July 1, | ||||||
25 | 2004 that are not dedicated to a motor vehicle or group of | ||||||
26 | motor vehicles shall make an election to use either the trips |
| |||||||
| |||||||
1 | or mileage method and document that election in their books and | ||||||
2 | records. If no election is made under this subsection to use | ||||||
3 | the trips or mileage method, the person shall be deemed to have | ||||||
4 | chosen the mileage method. | ||||||
5 | For purposes of determining qualifying trips or miles, | ||||||
6 | trailers, semitrailers, or pole trailers that carry property | ||||||
7 | for hire, even just between points in Illinois, will be | ||||||
8 | considered used for hire in interstate commerce if the | ||||||
9 | trailers, semitrailers, or pole trailers transport property | ||||||
10 | whose shipments originate or terminate outside Illinois. This | ||||||
11 | definition applies to all property purchased for the purpose of | ||||||
12 | being attached to those trailers, semitrailers, or pole | ||||||
13 | trailers as a part thereof. In lieu of a person providing | ||||||
14 | documentation regarding the qualifying use of each individual | ||||||
15 | trailer, semitrailer, or pole trailer, that person may document | ||||||
16 | such qualifying use by providing documentation of the | ||||||
17 | following: | ||||||
18 | (1) If a trailer, semitrailer, or pole trailer is | ||||||
19 | dedicated to a motor vehicle that qualifies as rolling | ||||||
20 | stock moving in interstate commerce under subsection (c) of | ||||||
21 | this Section, then that trailer, semitrailer, or pole | ||||||
22 | trailer qualifies as rolling stock moving in interstate | ||||||
23 | commerce under this subsection. | ||||||
24 | (2) If a trailer, semitrailer, or pole trailer is | ||||||
25 | dedicated to a group of motor vehicles that all qualify as | ||||||
26 | rolling stock moving in interstate commerce under |
| |||||||
| |||||||
1 | subsection (c) of this Section, then that trailer, | ||||||
2 | semitrailer, or pole trailer qualifies as rolling stock | ||||||
3 | moving in interstate commerce under this subsection. | ||||||
4 | (3) If one or more trailers, semitrailers, or pole | ||||||
5 | trailers are dedicated to a group of motor vehicles and not | ||||||
6 | all of those motor vehicles in that group qualify as | ||||||
7 | rolling stock moving in interstate commerce under | ||||||
8 | subsection (c) of this Section, then the percentage of | ||||||
9 | those trailers, semitrailers, or pole trailers that | ||||||
10 | qualifies as rolling stock moving in interstate commerce | ||||||
11 | under this subsection is equal to the percentage of those | ||||||
12 | motor vehicles in that group that qualify as rolling stock | ||||||
13 | moving in interstate commerce under subsection (c) of this | ||||||
14 | Section to which those trailers, semitrailers, or pole | ||||||
15 | trailers are dedicated. However, to determine the | ||||||
16 | qualification for the exemption provided under this item | ||||||
17 | (3), the mathematical application of the qualifying | ||||||
18 | percentage to one or more trailers, semitrailers, or pole | ||||||
19 | trailers under this subpart shall not be allowed as to any | ||||||
20 | fraction of a trailer, semitrailer, or pole trailer.
| ||||||
21 | (d-5) For motor vehicles and trailers purchased on or after | ||||||
22 | July 1, 2017, "use as rolling stock moving in interstate | ||||||
23 | commerce" means that: | ||||||
24 | (1) the motor vehicle or trailer is used to transport | ||||||
25 | persons or property for hire; | ||||||
26 | (2) for purposes of the exemption under paragraph (4a) |
| |||||||
| |||||||
1 | of the definition of "sale of service" in Section 2, the | ||||||
2 | purchaser who is an owner, lessor, or shipper claiming the | ||||||
3 | exemption certifies that the motor vehicle or trailer will | ||||||
4 | be utilized, from the time of purchase and continuing | ||||||
5 | through the statute of limitations for issuing a notice of | ||||||
6 | tax liability under this Act, by an interstate carrier or | ||||||
7 | carriers for hire who hold, and are required by Federal | ||||||
8 | Motor Carrier Safety Administration regulations to hold, | ||||||
9 | an active USDOT Number with the Carrier Operation listed as | ||||||
10 | "Interstate" and the Operation Classification listed as | ||||||
11 | "authorized for hire", "exempt for hire", or both | ||||||
12 | "authorized for hire" and "exempt for hire"; and | ||||||
13 | (3) for motor vehicles, the gross vehicle weight rating | ||||||
14 | exceeds 16,000 pounds. | ||||||
15 | The definition of "use as rolling stock moving in | ||||||
16 | interstate commerce" in this subsection (d-5) applies to all | ||||||
17 | property purchased on or after July 1, 2017 for the purpose of | ||||||
18 | being attached to a motor vehicle or trailer as a part thereof, | ||||||
19 | regardless of whether the motor vehicle or trailer was | ||||||
20 | purchased before, on, or after July 1, 2017. | ||||||
21 | If an item ceases to meet requirements (1) through (3) | ||||||
22 | under this subsection (d-5), then the tax is imposed on the | ||||||
23 | selling price, allowing for a reasonable depreciation for the | ||||||
24 | period during which the item qualified for the exemption. | ||||||
25 | For purposes of this subsection (d-5): | ||||||
26 | "Motor vehicle" excludes limousines, but otherwise |
| |||||||
| |||||||
1 | means that term as defined in Section 1-146 of the Illinois | ||||||
2 | Vehicle Code. | ||||||
3 | "Trailer" means (i) "trailer", as defined in Section | ||||||
4 | 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as | ||||||
5 | defined in Section 1-187 of the Illinois Vehicle Code, and | ||||||
6 | (iii) "pole trailer", as defined in Section 1-161 of the | ||||||
7 | Illinois Vehicle Code. | ||||||
8 | (e) For aircraft and watercraft purchased on or after | ||||||
9 | January 1, 2014, "use as rolling stock moving in interstate | ||||||
10 | commerce" in (i) paragraph paragraphs (4) and (4a) of the | ||||||
11 | definition of "sale of service" in Section 2 and (ii) | ||||||
12 | subsection (b) of Section 3-45 occurs when, during a 12-month | ||||||
13 | period, the rolling stock has carried persons or property for | ||||||
14 | hire in interstate commerce for greater than 50% of its total | ||||||
15 | trips for that period or for greater than 50% of its total | ||||||
16 | miles for that period. The person claiming the exemption shall | ||||||
17 | make an election at the time of purchase to use either the | ||||||
18 | trips or mileage method and document that election in their | ||||||
19 | books and records. If no election is made under this subsection | ||||||
20 | to use the trips or mileage method, the person shall be deemed | ||||||
21 | to have chosen the mileage method. For aircraft, flight hours | ||||||
22 | may be used in lieu of recording miles in determining whether | ||||||
23 | the aircraft meets the mileage test in this subsection. For | ||||||
24 | watercraft, nautical miles or trip hours may be used in lieu of | ||||||
25 | recording miles in determining whether the watercraft meets the | ||||||
26 | mileage test in this subsection. |
| |||||||
| |||||||
1 | Notwithstanding any other provision of law to the contrary, | ||||||
2 | property purchased on or after January 1, 2014 for the purpose | ||||||
3 | of being attached to aircraft or watercraft as a part thereof | ||||||
4 | qualifies as rolling stock moving in interstate commerce only | ||||||
5 | if the aircraft or watercraft to which it will be attached | ||||||
6 | qualifies as rolling stock moving in interstate commerce under | ||||||
7 | the test set forth in this subsection (e), regardless of when | ||||||
8 | the aircraft or watercraft was purchased. Persons who purchased | ||||||
9 | aircraft or watercraft prior to January 1, 2014 shall make an | ||||||
10 | election to use either the trips or mileage method and document | ||||||
11 | that election in their books and records for the purpose of | ||||||
12 | determining whether property purchased on or after January 1, | ||||||
13 | 2014 for the purpose of being attached to aircraft or | ||||||
14 | watercraft as a part thereof qualifies as rolling stock moving | ||||||
15 | in interstate commerce under this subsection (e). | ||||||
16 | (f) The election to use either the trips or mileage method | ||||||
17 | made under the provisions of subsections (c), (d), or (e) of | ||||||
18 | this Section will remain in effect for the duration of the | ||||||
19 | purchaser's ownership of that item. | ||||||
20 | (Source: P.A. 98-584, eff. 8-27-13.)
| ||||||
21 | Section 15. The Service Occupation Tax Act is amended by | ||||||
22 | changing Sections 2 and 2d as follows:
| ||||||
23 | (35 ILCS 115/2) (from Ch. 120, par. 439.102)
| ||||||
24 | Sec. 2. "Transfer" means any transfer of the title to |
| |||||||
| |||||||
1 | property or of
the ownership of property whether or not the | ||||||
2 | transferor retains title as
security for the payment of amounts | ||||||
3 | due him from the transferee.
| ||||||
4 | "Cost Price" means the consideration paid by the serviceman | ||||||
5 | for a
purchase valued in money, whether paid in money or | ||||||
6 | otherwise, including
cash, credits and services, and shall be | ||||||
7 | determined without any deduction
on account of the supplier's | ||||||
8 | cost of the property sold or on account of any
other expense | ||||||
9 | incurred by the supplier. When a serviceman contracts out
part | ||||||
10 | or all of the services required in his sale of service, it | ||||||
11 | shall be
presumed that the cost price to the serviceman of the | ||||||
12 | property
transferred to him by his or her subcontractor is | ||||||
13 | equal to 50% of the
subcontractor's charges to the serviceman | ||||||
14 | in the absence of proof of the
consideration paid by the | ||||||
15 | subcontractor for the purchase of such
property.
| ||||||
16 | "Department" means the Department of Revenue.
| ||||||
17 | "Person" means any natural individual, firm, partnership, | ||||||
18 | association, joint
stock company, joint venture, public or | ||||||
19 | private corporation, limited liability
company, and any | ||||||
20 | receiver, executor, trustee, guardian or other representative
| ||||||
21 | appointed by order of any court.
| ||||||
22 | "Sale of Service" means any transaction except:
| ||||||
23 | (a) A retail sale of tangible personal property taxable | ||||||
24 | under the Retailers'
Occupation Tax Act or under the Use Tax | ||||||
25 | Act.
| ||||||
26 | (b) A sale of tangible personal property for the purpose of |
| |||||||
| |||||||
1 | resale made in
compliance with Section 2c of the Retailers' | ||||||
2 | Occupation Tax Act.
| ||||||
3 | (c) Except as hereinafter provided, a sale or transfer of | ||||||
4 | tangible personal
property as an incident to the rendering of | ||||||
5 | service for or by any governmental
body or for or by any | ||||||
6 | corporation, society, association, foundation or
institution | ||||||
7 | organized and operated exclusively for charitable, religious | ||||||
8 | or
educational purposes or any not-for-profit corporation, | ||||||
9 | society, association,
foundation, institution or organization | ||||||
10 | which has no compensated officers or
employees and which is | ||||||
11 | organized and operated primarily for the recreation of
persons | ||||||
12 | 55 years of age or older. A limited liability company may | ||||||
13 | qualify for
the exemption under this paragraph only if the | ||||||
14 | limited liability company is
organized and operated | ||||||
15 | exclusively for educational purposes.
| ||||||
16 | (d) (Blank). A sale or transfer of tangible personal
| ||||||
17 | property
as an incident to the
rendering of service for | ||||||
18 | interstate carriers for hire for use as rolling stock
moving in | ||||||
19 | interstate commerce or lessors under leases of one year or | ||||||
20 | longer,
executed or in effect at the time of purchase, to | ||||||
21 | interstate carriers for hire
for use as rolling stock moving in | ||||||
22 | interstate commerce, and equipment operated
by a | ||||||
23 | telecommunications provider, licensed as a common
carrier by | ||||||
24 | the Federal Communications Commission, which is permanently
| ||||||
25 | installed in or affixed to aircraft moving in interstate | ||||||
26 | commerce.
|
| |||||||
| |||||||
1 | (d-1) A sale or transfer of tangible personal
property as | ||||||
2 | an incident to
the rendering of service for owners, lessors or | ||||||
3 | shippers of tangible personal
property which is utilized by | ||||||
4 | interstate carriers for hire for use as rolling
stock moving in | ||||||
5 | interstate commerce, and equipment operated
by a | ||||||
6 | telecommunications provider, licensed as a common carrier by | ||||||
7 | the
Federal Communications Commission, which is permanently | ||||||
8 | installed in or
affixed to aircraft moving in interstate | ||||||
9 | commerce.
| ||||||
10 | (d-1.1) On and after July 1, 2003 and through June 30, | ||||||
11 | 2004, a sale or transfer of a motor vehicle
of the
second | ||||||
12 | division with a gross vehicle weight in excess of 8,000 pounds | ||||||
13 | as an
incident to the rendering of service if that motor
| ||||||
14 | vehicle is subject
to the commercial distribution fee imposed | ||||||
15 | under Section 3-815.1 of the
Illinois Vehicle
Code. Beginning | ||||||
16 | on July 1, 2004 and through June 30, 2005, the use in this | ||||||
17 | State of motor vehicles of the second division: (i) with a | ||||||
18 | gross vehicle weight rating in excess of 8,000 pounds; (ii) | ||||||
19 | that are subject to the commercial distribution fee imposed | ||||||
20 | under Section 3-815.1 of the Illinois Vehicle Code; and (iii) | ||||||
21 | that are primarily used for commercial purposes. Through June | ||||||
22 | 30, 2005, this exemption applies to repair and replacement | ||||||
23 | parts added after the
initial
purchase of such a motor vehicle | ||||||
24 | if that motor vehicle is used in a manner that
would
qualify | ||||||
25 | for the rolling stock exemption otherwise provided for in this | ||||||
26 | Act. For purposes of this paragraph, "used for commercial |
| |||||||
| |||||||
1 | purposes" means the transportation of persons or property in | ||||||
2 | furtherance of any commercial or industrial enterprise whether | ||||||
3 | for-hire or not.
| ||||||
4 | (d-2) The repairing, reconditioning or remodeling, for a | ||||||
5 | common carrier by
rail, of tangible personal property which | ||||||
6 | belongs to such carrier for hire, and
as to which such carrier | ||||||
7 | receives the physical possession of the repaired,
| ||||||
8 | reconditioned or remodeled item of tangible personal property | ||||||
9 | in Illinois, and
which such carrier transports, or shares with | ||||||
10 | another common carrier in the
transportation of such property, | ||||||
11 | out of Illinois on a standard uniform bill of
lading showing | ||||||
12 | the person who repaired, reconditioned or remodeled the | ||||||
13 | property
as the shipper or consignor of such property to a | ||||||
14 | destination outside Illinois,
for use outside Illinois.
| ||||||
15 | (d-3) A sale or transfer of tangible personal property | ||||||
16 | which
is produced by the seller thereof on special order in | ||||||
17 | such a way as to have
made the applicable tax the Service | ||||||
18 | Occupation Tax or the Service Use Tax,
rather than the | ||||||
19 | Retailers' Occupation Tax or the Use Tax, for an interstate
| ||||||
20 | carrier by rail which receives the physical possession of such | ||||||
21 | property in
Illinois, and which transports such property, or | ||||||
22 | shares with another common
carrier in the transportation of | ||||||
23 | such property, out of Illinois on a standard
uniform bill of | ||||||
24 | lading showing the seller of the property as the shipper or
| ||||||
25 | consignor of such property to a destination outside Illinois, | ||||||
26 | for use outside
Illinois.
|
| |||||||
| |||||||
1 | (d-4) Until January 1, 1997, a sale, by a registered | ||||||
2 | serviceman paying tax
under this Act to the Department, of | ||||||
3 | special order printed materials delivered
outside Illinois and | ||||||
4 | which are not returned to this State, if delivery is made
by | ||||||
5 | the seller or agent of the seller, including an agent who | ||||||
6 | causes the product
to be delivered outside Illinois by a common | ||||||
7 | carrier or the U.S.
postal service.
| ||||||
8 | (e) A sale or transfer of machinery and equipment used | ||||||
9 | primarily in
the process of the manufacturing or assembling, | ||||||
10 | either in an existing, an
expanded or a new manufacturing | ||||||
11 | facility, of tangible personal property for
wholesale or retail | ||||||
12 | sale or lease, whether such sale or lease is made directly
by | ||||||
13 | the manufacturer or by some other person, whether the materials | ||||||
14 | used in the
process are owned by the manufacturer or some other | ||||||
15 | person, or whether such
sale or lease is made apart from or as | ||||||
16 | an incident to the seller's engaging in
a service occupation | ||||||
17 | and the applicable tax is a Service Occupation Tax or
Service | ||||||
18 | Use Tax, rather than Retailers' Occupation Tax or Use Tax. The | ||||||
19 | exemption provided by this paragraph (e) does not include | ||||||
20 | machinery and equipment used in (i) the generation of | ||||||
21 | electricity for wholesale or retail sale; (ii) the generation | ||||||
22 | or treatment of natural or artificial gas for wholesale or | ||||||
23 | retail sale that is delivered to customers through pipes, | ||||||
24 | pipelines, or mains; or (iii) the treatment of water for | ||||||
25 | wholesale or retail sale that is delivered to customers through | ||||||
26 | pipes, pipelines, or mains. The provisions of this amendatory |
| |||||||
| |||||||
1 | Act of the 98th General Assembly are declaratory of existing | ||||||
2 | law as to the meaning and scope of this exemption.
| ||||||
3 | (f) Until July 1, 2003, the sale or transfer of | ||||||
4 | distillation
machinery
and equipment, sold as a
unit or kit and | ||||||
5 | assembled or installed by the retailer, which machinery
and | ||||||
6 | equipment is certified by the user to be used only for the | ||||||
7 | production
of ethyl alcohol that will be used for consumption | ||||||
8 | as motor fuel or as a
component of motor fuel for the personal | ||||||
9 | use of such user and not subject
to sale or resale.
| ||||||
10 | (g) At the election of any serviceman not required to be | ||||||
11 | otherwise
registered as a retailer under Section 2a of the | ||||||
12 | Retailers' Occupation Tax Act,
made for each fiscal year sales | ||||||
13 | of service in which the aggregate annual cost
price of tangible | ||||||
14 | personal property transferred as an incident to the sales of
| ||||||
15 | service is less than 35% (75% in the case of servicemen | ||||||
16 | transferring
prescription drugs or servicemen engaged in | ||||||
17 | graphic arts production) of the
aggregate annual total gross | ||||||
18 | receipts from all sales of service. The purchase
of such | ||||||
19 | tangible personal property by the serviceman shall be subject | ||||||
20 | to tax
under the Retailers' Occupation Tax Act and the Use Tax | ||||||
21 | Act.
However, if a
primary serviceman who has made the election | ||||||
22 | described in this paragraph
subcontracts service work to a | ||||||
23 | secondary serviceman who has also made the
election described | ||||||
24 | in this paragraph, the primary serviceman does not
incur a Use | ||||||
25 | Tax liability if the secondary serviceman (i) has paid or will | ||||||
26 | pay
Use
Tax on his or her cost price of any tangible personal |
| |||||||
| |||||||
1 | property transferred
to the primary serviceman and (ii) | ||||||
2 | certifies that fact in writing to the
primary serviceman.
| ||||||
3 | Tangible personal property transferred incident to the | ||||||
4 | completion of a
maintenance agreement is exempt from the tax | ||||||
5 | imposed pursuant to this Act.
| ||||||
6 | Exemption (e) also includes machinery and equipment used in | ||||||
7 | the
general maintenance or repair of such exempt machinery and | ||||||
8 | equipment or for
in-house manufacture of exempt machinery and | ||||||
9 | equipment.
The machinery and equipment exemption does not | ||||||
10 | include machinery and equipment used in (i) the generation of | ||||||
11 | electricity for wholesale or retail sale; (ii) the generation | ||||||
12 | or treatment of natural or artificial gas for wholesale or | ||||||
13 | retail sale that is delivered to customers through pipes, | ||||||
14 | pipelines, or mains; or (iii) the treatment of water for | ||||||
15 | wholesale or retail sale that is delivered to customers through | ||||||
16 | pipes, pipelines, or mains. The provisions of this amendatory | ||||||
17 | Act of the 98th General Assembly are declaratory of existing | ||||||
18 | law as to the meaning and scope of this exemption. For the | ||||||
19 | purposes of exemption (e), each of these terms shall have the | ||||||
20 | following
meanings: (1) "manufacturing process" shall mean the | ||||||
21 | production of any
article of tangible personal property, | ||||||
22 | whether such article is a
finished product or an article for | ||||||
23 | use in the process of manufacturing
or assembling a different | ||||||
24 | article of tangible personal property, by
procedures commonly | ||||||
25 | regarded as manufacturing, processing, fabricating,
or | ||||||
26 | refining which changes some existing material or materials into |
| |||||||
| |||||||
1 | a
material with a different form, use or name. In relation to a
| ||||||
2 | recognized integrated business composed of a series of | ||||||
3 | operations which
collectively constitute manufacturing, or | ||||||
4 | individually constitute
manufacturing operations, the | ||||||
5 | manufacturing process shall be deemed to
commence with the | ||||||
6 | first operation or stage of production in the series,
and shall | ||||||
7 | not be deemed to end until the completion of the final product
| ||||||
8 | in the last operation or stage of production in the series; and | ||||||
9 | further for
purposes of exemption (e), photoprocessing is | ||||||
10 | deemed to be a manufacturing
process of tangible personal | ||||||
11 | property for wholesale or retail sale;
(2) "assembling process" | ||||||
12 | shall mean the production of any article of
tangible personal | ||||||
13 | property, whether such article is a finished product
or an | ||||||
14 | article for use in the process of manufacturing or assembling a
| ||||||
15 | different article of tangible personal property, by the | ||||||
16 | combination of
existing materials in a manner commonly regarded | ||||||
17 | as assembling which
results in a material of a different form, | ||||||
18 | use or name; (3) "machinery"
shall mean major mechanical | ||||||
19 | machines or major components of such machines
contributing to a | ||||||
20 | manufacturing or assembling process; and (4) "equipment"
shall | ||||||
21 | include any independent device or tool separate from any | ||||||
22 | machinery but
essential to an integrated manufacturing or | ||||||
23 | assembly process; including
computers used primarily in a | ||||||
24 | manufacturer's computer
assisted design, computer assisted | ||||||
25 | manufacturing (CAD/CAM) system; or any
subunit or assembly | ||||||
26 | comprising a component of any machinery or auxiliary,
adjunct |
| |||||||
| |||||||
1 | or attachment parts of machinery, such as tools, dies, jigs, | ||||||
2 | fixtures,
patterns and molds; or any parts which require | ||||||
3 | periodic replacement in the
course of normal operation; but | ||||||
4 | shall not include hand tools. Equipment
includes chemicals or | ||||||
5 | chemicals acting as catalysts but only if the chemicals
or | ||||||
6 | chemicals acting as catalysts effect a direct and immediate | ||||||
7 | change upon a
product being manufactured or assembled for | ||||||
8 | wholesale or retail sale or lease.
The purchaser of such | ||||||
9 | machinery and equipment
who has an active resale registration | ||||||
10 | number shall furnish such number to
the seller at the time of | ||||||
11 | purchase. The purchaser of such machinery and
equipment and | ||||||
12 | tools without an active resale registration number shall | ||||||
13 | furnish
to the seller a certificate of exemption for each | ||||||
14 | transaction stating facts
establishing the exemption for that | ||||||
15 | transaction, which certificate shall
be available to the | ||||||
16 | Department for inspection or audit.
| ||||||
17 | Except as provided in Section 2d of this Act, the rolling | ||||||
18 | stock exemption
applies to rolling
stock
used by an interstate
| ||||||
19 | carrier for hire, even just between points in Illinois, if such | ||||||
20 | rolling
stock transports, for hire, persons whose journeys or | ||||||
21 | property whose
shipments originate or terminate outside | ||||||
22 | Illinois.
| ||||||
23 | Any informal rulings, opinions or letters issued by the | ||||||
24 | Department in
response to an inquiry or request for any opinion | ||||||
25 | from any person
regarding the coverage and applicability of | ||||||
26 | exemption (e) to specific
devices shall be published, |
| |||||||
| |||||||
1 | maintained as a public record, and made
available for public | ||||||
2 | inspection and copying. If the informal ruling,
opinion or | ||||||
3 | letter contains trade secrets or other confidential
| ||||||
4 | information, where possible the Department shall delete such | ||||||
5 | information
prior to publication. Whenever such informal | ||||||
6 | rulings, opinions, or
letters contain any policy of general | ||||||
7 | applicability, the Department
shall formulate and adopt such | ||||||
8 | policy as a rule in accordance with the
provisions of the | ||||||
9 | Illinois Administrative Procedure Act.
| ||||||
10 | On and after July 1, 1987, no entity otherwise eligible | ||||||
11 | under exemption
(c) of this Section shall make tax free | ||||||
12 | purchases unless it has an active
exemption identification | ||||||
13 | number issued by the Department.
| ||||||
14 | "Serviceman" means any person who is engaged in the | ||||||
15 | occupation of
making sales of service.
| ||||||
16 | "Sale at Retail" means "sale at retail" as defined in the | ||||||
17 | Retailers'
Occupation Tax Act.
| ||||||
18 | "Supplier" means any person who makes sales of tangible | ||||||
19 | personal
property to servicemen for the purpose of resale as an | ||||||
20 | incident to a
sale of service.
| ||||||
21 | (Source: P.A. 98-583, eff. 1-1-14.)
| ||||||
22 | (35 ILCS 115/2d)
| ||||||
23 | Sec. 2d. Motor vehicles; trailers; use as rolling stock | ||||||
24 | definition. | ||||||
25 | (a) (Blank). Through June
30, 2003, "use as
rolling stock |
| |||||||
| |||||||
1 | moving in
interstate commerce" in subsections (d) and (d-1) of | ||||||
2 | the definition of "sale of
service" in Section 2 means for | ||||||
3 | motor vehicles, as defined in Section 1-146 of
the Illinois | ||||||
4 | Vehicle Code, and trailers, as defined in Section 1-209 of the
| ||||||
5 | Illinois Vehicle Code, when on 15 or more occasions in a | ||||||
6 | 12-month period the
motor vehicle and trailer has carried | ||||||
7 | persons or property for hire in
interstate commerce, even just | ||||||
8 | between points in Illinois, if the motor vehicle
and trailer | ||||||
9 | transports persons whose journeys or property whose shipments
| ||||||
10 | originate or terminate outside Illinois.
This definition | ||||||
11 | applies to all property purchased for the purpose of being
| ||||||
12 | attached to those motor vehicles or trailers as a part thereof.
| ||||||
13 | (b) (Blank). On and after July 1, 2003 and through June 30, | ||||||
14 | 2004, "use as rolling stock moving in interstate
commerce" in
| ||||||
15 | paragraphs (d) and (d-1) of the definition of "sale of service" | ||||||
16 | in
Section 2 occurs for motor vehicles, as defined in Section | ||||||
17 | 1-146 of the
Illinois Vehicle Code,
when during a 12-month | ||||||
18 | period the rolling stock has carried persons or property
for | ||||||
19 | hire
in interstate commerce for 51% of its total trips and | ||||||
20 | transports persons whose
journeys or
property whose shipments | ||||||
21 | originate or terminate outside Illinois. Trips that
are only
| ||||||
22 | between points in Illinois will not be counted as interstate | ||||||
23 | trips when
calculating whether
the tangible personal property | ||||||
24 | qualifies for the exemption but such trips will
be included
in | ||||||
25 | total trips taken.
| ||||||
26 | (c) This subsection (c) applies to motor vehicles, other |
| |||||||
| |||||||
1 | than limousines, purchased through June 30, 2017. For motor | ||||||
2 | vehicles, other than limousines, purchased on or after July 1, | ||||||
3 | 2017, subsection (d-5) applies. This subsection (c) applies to | ||||||
4 | limousines purchased before, on, or after July 1, 2017. "Use | ||||||
5 | Beginning July 1, 2004, "use as rolling stock moving in | ||||||
6 | interstate commerce" in paragraph paragraphs (d) and (d-1) of | ||||||
7 | the definition of "sale of service" in Section 2 occurs for | ||||||
8 | motor vehicles, as defined in Section 1-146 of the Illinois | ||||||
9 | Vehicle Code, when during a 12-month period the rolling stock | ||||||
10 | has carried persons or property for hire in interstate commerce | ||||||
11 | for greater than 50% of its total trips for that period or for | ||||||
12 | greater than 50% of its total miles for that period. The person | ||||||
13 | claiming the exemption shall make an election at the time of | ||||||
14 | purchase to use either the trips or mileage method. Persons who | ||||||
15 | purchased motor vehicles prior to July 1, 2004 shall make an | ||||||
16 | election to use either the trips or mileage method and document | ||||||
17 | that election in their books and records. If no election is | ||||||
18 | made under this subsection to use the trips or mileage method, | ||||||
19 | the person shall be deemed to have chosen the mileage method. | ||||||
20 | For purposes of determining qualifying trips or miles, | ||||||
21 | motor vehicles that carry persons or property for hire, even | ||||||
22 | just between points in Illinois, will be considered used for | ||||||
23 | hire in interstate commerce if the motor vehicle transports | ||||||
24 | persons whose journeys or property whose shipments originate or | ||||||
25 | terminate outside Illinois. The exemption for motor vehicles
| ||||||
26 | used as rolling stock moving in interstate commerce may be
|
| |||||||
| |||||||
1 | claimed only for the following vehicles: (i) motor vehicles | ||||||
2 | whose gross vehicle weight
rating exceeds 16,000 pounds; and | ||||||
3 | (ii) limousines, as defined in Section 1-139.1 of the Illinois | ||||||
4 | Vehicle Code. Through June 30, 2017, this This definition | ||||||
5 | applies to all property purchased for the purpose of being | ||||||
6 | attached to those motor vehicles as a part thereof. On and | ||||||
7 | after July 1, 2017, this definition applies to property | ||||||
8 | purchased for the purpose of being attached to limousines as a | ||||||
9 | part thereof. | ||||||
10 | (d) For purchases made through June 30, 2017 Beginning July | ||||||
11 | 1, 2004 , "use as rolling stock moving in interstate commerce" | ||||||
12 | in paragraph paragraphs (d) and (d-1) of the definition of | ||||||
13 | "sale of service" in Section 2 occurs for trailers, as defined | ||||||
14 | in Section 1-209 of the Illinois Vehicle Code, semitrailers as | ||||||
15 | defined in Section 1-187 of the Illinois Vehicle Code, and pole | ||||||
16 | trailers as defined in Section 1-161 of the Illinois Vehicle | ||||||
17 | Code, when during a 12-month period the rolling stock has | ||||||
18 | carried persons or property for hire in interstate commerce for | ||||||
19 | greater than 50% of its total trips for that period or for | ||||||
20 | greater than 50% of its total miles for that period. The person | ||||||
21 | claiming the exemption for a trailer or trailers that will not | ||||||
22 | be dedicated to a motor vehicle or group of motor vehicles | ||||||
23 | shall make an election at the time of purchase to use either | ||||||
24 | the trips or mileage method. Persons who purchased trailers | ||||||
25 | prior to July 1, 2004 that are not dedicated to a motor vehicle | ||||||
26 | or group of motor vehicles shall make an election to use either |
| |||||||
| |||||||
1 | the trips or mileage method and document that election in their | ||||||
2 | books and records. If no election is made under this subsection | ||||||
3 | to use the trips or mileage method, the person shall be deemed | ||||||
4 | to have chosen the mileage method. | ||||||
5 | For purposes of determining qualifying trips or miles, | ||||||
6 | trailers, semitrailers, or pole trailers that carry property | ||||||
7 | for hire, even just between points in Illinois, will be | ||||||
8 | considered used for hire in interstate commerce if the | ||||||
9 | trailers, semitrailers, or pole trailers transport property | ||||||
10 | whose shipments originate or terminate outside Illinois. This | ||||||
11 | definition applies to all property purchased for the purpose of | ||||||
12 | being attached to those trailers, semitrailers, or pole | ||||||
13 | trailers as a part thereof. In lieu of a person providing | ||||||
14 | documentation regarding the qualifying use of each individual | ||||||
15 | trailer, semitrailer, or pole trailer, that person may document | ||||||
16 | such qualifying use by providing documentation of the | ||||||
17 | following: | ||||||
18 | (1) If a trailer, semitrailer, or pole trailer is | ||||||
19 | dedicated to a motor vehicle that qualifies as rolling | ||||||
20 | stock moving in interstate commerce under subsection (c) of | ||||||
21 | this Section, then that trailer, semitrailer, or pole | ||||||
22 | trailer qualifies as rolling stock moving in interstate | ||||||
23 | commerce under this subsection. | ||||||
24 | (2) If a trailer, semitrailer, or pole trailer is | ||||||
25 | dedicated to a group of motor vehicles that all qualify as | ||||||
26 | rolling stock moving in interstate commerce under |
| |||||||
| |||||||
1 | subsection (c) of this Section, then that trailer, | ||||||
2 | semitrailer, or pole trailer qualifies as rolling stock | ||||||
3 | moving in interstate commerce under this subsection. | ||||||
4 | (3) If one or more trailers, semitrailers, or pole | ||||||
5 | trailers are dedicated to a group of motor vehicles and not | ||||||
6 | all of those motor vehicles in that group qualify as | ||||||
7 | rolling stock moving in interstate commerce under | ||||||
8 | subsection (c) of this Section, then the percentage of | ||||||
9 | those trailers, semitrailers, or pole trailers that | ||||||
10 | qualifies as rolling stock moving in interstate commerce | ||||||
11 | under this subsection is equal to the percentage of those | ||||||
12 | motor vehicles in that group that qualify as rolling stock | ||||||
13 | moving in interstate commerce under subsection (c) of this | ||||||
14 | Section to which those trailers, semitrailers, or pole | ||||||
15 | trailers are dedicated. However, to determine the | ||||||
16 | qualification for the exemption provided under this item | ||||||
17 | (3), the mathematical application of the qualifying | ||||||
18 | percentage to one or more trailers, semitrailers, or pole | ||||||
19 | trailers under this subpart shall not be allowed as to any | ||||||
20 | fraction of a trailer, semitrailer, or pole trailer.
| ||||||
21 | (d-5) For motor vehicles and trailers purchased on or after | ||||||
22 | July 1, 2017, "use as rolling stock moving in interstate | ||||||
23 | commerce" means that: | ||||||
24 | (1) the motor vehicle or trailer is used to transport | ||||||
25 | persons or property for hire; | ||||||
26 | (2) for purposes of the exemption under paragraph (d-1) |
| |||||||
| |||||||
1 | of the definition of "sale of service" in Section 2, the | ||||||
2 | purchaser who is an owner, lessor, or shipper claiming the | ||||||
3 | exemption certifies that the motor vehicle or trailer will | ||||||
4 | be utilized, from the time of purchase and continuing | ||||||
5 | through the statute of limitations for issuing a notice of | ||||||
6 | tax liability under this Act, by an interstate carrier or | ||||||
7 | carriers for hire who hold, and are required by Federal | ||||||
8 | Motor Carrier Safety Administration regulations to hold, | ||||||
9 | an active USDOT Number with the Carrier Operation listed as | ||||||
10 | "Interstate" and the Operation Classification listed as | ||||||
11 | "authorized for hire", "exempt for hire", or both | ||||||
12 | "authorized for hire" and "exempt for hire"; and | ||||||
13 | (3) for motor vehicles, the gross vehicle weight rating | ||||||
14 | exceeds 16,000 pounds. | ||||||
15 | The definition of "use as rolling stock moving in | ||||||
16 | interstate commerce" in this subsection (d-5) applies to all | ||||||
17 | property purchased on or after July 1, 2017 for the purpose of | ||||||
18 | being attached to a motor vehicle or trailer as a part thereof, | ||||||
19 | regardless of whether the motor vehicle or trailer was | ||||||
20 | purchased before, on, or after July 1, 2017. | ||||||
21 | If an item ceases to meet requirements (1) through (3) | ||||||
22 | under this subsection (d-5), then the tax is imposed on the | ||||||
23 | selling price, allowing for a reasonable depreciation for the | ||||||
24 | period during which the item qualified for the exemption. | ||||||
25 | For purposes of this subsection (d-5): | ||||||
26 | "Motor vehicle" excludes limousines, but otherwise |
| |||||||
| |||||||
1 | means that term as defined in Section 1-146 of the Illinois | ||||||
2 | Vehicle Code. | ||||||
3 | "Trailer" means (i) "trailer", as defined in Section | ||||||
4 | 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as | ||||||
5 | defined in Section 1-187 of the Illinois Vehicle Code, and | ||||||
6 | (iii) "pole trailer", as defined in Section 1-161 of the | ||||||
7 | Illinois Vehicle Code. | ||||||
8 | (e) For aircraft and watercraft purchased on or after | ||||||
9 | January 1 2014, "use as rolling stock moving in interstate | ||||||
10 | commerce" in paragraph paragraphs (d) and (d-1) of the | ||||||
11 | definition of "sale of service" in Section 2 occurs when, | ||||||
12 | during a 12-month period, the rolling stock has carried persons | ||||||
13 | or property for hire in interstate commerce for greater than | ||||||
14 | 50% of its total trips for that period or for greater than 50% | ||||||
15 | of its total miles for that period. The person claiming the | ||||||
16 | exemption shall make an election at the time of purchase to use | ||||||
17 | either the trips or mileage method and document that election | ||||||
18 | in their books and records. If no election is made under this | ||||||
19 | subsection to use the trips or mileage method, the person shall | ||||||
20 | be deemed to have chosen the mileage method. For aircraft, | ||||||
21 | flight hours may be used in lieu of recording miles in | ||||||
22 | determining whether the aircraft meets the mileage test in this | ||||||
23 | subsection. For watercraft, nautical miles or trip hours may be | ||||||
24 | used in lieu of recording miles in determining whether the | ||||||
25 | watercraft meets the mileage test in this subsection. | ||||||
26 | Notwithstanding any other provision of law to the contrary, |
| |||||||
| |||||||
1 | property purchased on or after January 1, 2014 for the purpose | ||||||
2 | of being attached to aircraft or watercraft as a part thereof | ||||||
3 | qualifies as rolling stock moving in interstate commerce only | ||||||
4 | if the aircraft or watercraft to which it will be attached | ||||||
5 | qualifies as rolling stock moving in interstate commerce under | ||||||
6 | the test set forth in this subsection (e), regardless of when | ||||||
7 | the aircraft or watercraft was purchased. Persons who purchased | ||||||
8 | aircraft or watercraft prior to January 1, 2014 shall make an | ||||||
9 | election to use either the trips or mileage method and document | ||||||
10 | that election in their books and records for the purpose of | ||||||
11 | determining whether property purchased on or after January 1, | ||||||
12 | 2014 for the purpose of being attached to aircraft or | ||||||
13 | watercraft as a part thereof qualifies as rolling stock moving | ||||||
14 | in interstate commerce under this subsection (e). | ||||||
15 | (f) The election to use either the trips or mileage method | ||||||
16 | made under the provisions of subsections (c), (d), or (e) of | ||||||
17 | this Section will remain in effect for the duration of the | ||||||
18 | purchaser's ownership of that item. | ||||||
19 | (Source: P.A. 98-584, eff. 8-27-13.)
| ||||||
20 | Section 20. The Retailers' Occupation Tax Act is amended by | ||||||
21 | changing Sections 2-5 and 2-51 as follows:
| ||||||
22 | (35 ILCS 120/2-5)
| ||||||
23 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
24 | sale of
the following tangible personal property are exempt |
| |||||||
| |||||||
1 | from the tax imposed
by this Act:
| ||||||
2 | (1) Farm chemicals.
| ||||||
3 | (2) Farm machinery and equipment, both new and used, | ||||||
4 | including that
manufactured on special order, certified by the | ||||||
5 | purchaser to be used
primarily for production agriculture or | ||||||
6 | State or federal agricultural
programs, including individual | ||||||
7 | replacement parts for the machinery and
equipment, including | ||||||
8 | machinery and equipment purchased for lease,
and including | ||||||
9 | implements of husbandry defined in Section 1-130 of
the | ||||||
10 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
11 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
12 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
13 | but
excluding other motor vehicles required to be registered | ||||||
14 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
15 | hoop houses used for propagating, growing, or
overwintering | ||||||
16 | plants shall be considered farm machinery and equipment under
| ||||||
17 | this item (2).
Agricultural chemical tender tanks and dry boxes | ||||||
18 | shall include units sold
separately from a motor vehicle | ||||||
19 | required to be licensed and units sold mounted
on a motor | ||||||
20 | vehicle required to be licensed, if the selling price of the | ||||||
21 | tender
is separately stated.
| ||||||
22 | Farm machinery and equipment shall include precision | ||||||
23 | farming equipment
that is
installed or purchased to be | ||||||
24 | installed on farm machinery and equipment
including, but not | ||||||
25 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
26 | or spreaders.
Precision farming equipment includes, but is not |
| |||||||
| |||||||
1 | limited to,
soil testing sensors, computers, monitors, | ||||||
2 | software, global positioning
and mapping systems, and other | ||||||
3 | such equipment.
| ||||||
4 | Farm machinery and equipment also includes computers, | ||||||
5 | sensors, software, and
related equipment used primarily in the
| ||||||
6 | computer-assisted operation of production agriculture | ||||||
7 | facilities, equipment,
and activities such as, but
not limited | ||||||
8 | to,
the collection, monitoring, and correlation of
animal and | ||||||
9 | crop data for the purpose of
formulating animal diets and | ||||||
10 | agricultural chemicals. This item (2) is exempt
from the | ||||||
11 | provisions of
Section 2-70.
| ||||||
12 | (3) Until July 1, 2003, distillation machinery and | ||||||
13 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
14 | retailer, certified by the user to be used
only for the | ||||||
15 | production of ethyl alcohol that will be used for consumption
| ||||||
16 | as motor fuel or as a component of motor fuel for the personal | ||||||
17 | use of the
user, and not subject to sale or resale.
| ||||||
18 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
19 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
20 | equipment, including
repair and
replacement parts, both new and | ||||||
21 | used, and including that manufactured on
special order or | ||||||
22 | purchased for lease, certified by the purchaser to be used
| ||||||
23 | primarily for graphic arts production.
Equipment includes | ||||||
24 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
25 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
26 | immediate
change upon a
graphic arts product.
|
| |||||||
| |||||||
1 | (5) A motor vehicle that is used for automobile renting, as | ||||||
2 | defined in the Automobile Renting Occupation and Use Tax Act. | ||||||
3 | This paragraph is exempt from
the provisions of Section 2-70.
| ||||||
4 | (6) Personal property sold by a teacher-sponsored student | ||||||
5 | organization
affiliated with an elementary or secondary school | ||||||
6 | located in Illinois.
| ||||||
7 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
8 | selling price of
a passenger car the
sale of which is subject | ||||||
9 | to the Replacement Vehicle Tax.
| ||||||
10 | (8) Personal property sold to an Illinois county fair | ||||||
11 | association for
use in conducting, operating, or promoting the | ||||||
12 | county fair.
| ||||||
13 | (9) Personal property sold to a not-for-profit arts
or | ||||||
14 | cultural organization that establishes, by proof required by | ||||||
15 | the Department
by
rule, that it has received an exemption under | ||||||
16 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
17 | organized and operated primarily for the
presentation
or | ||||||
18 | support of arts or cultural programming, activities, or | ||||||
19 | services. These
organizations include, but are not limited to, | ||||||
20 | music and dramatic arts
organizations such as symphony | ||||||
21 | orchestras and theatrical groups, arts and
cultural service | ||||||
22 | organizations, local arts councils, visual arts organizations,
| ||||||
23 | and media arts organizations.
On and after the effective date | ||||||
24 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
25 | an entity otherwise eligible for this exemption shall not
make | ||||||
26 | tax-free purchases unless it has an active identification |
| |||||||
| |||||||
1 | number issued by
the Department.
| ||||||
2 | (10) Personal property sold by a corporation, society, | ||||||
3 | association,
foundation, institution, or organization, other | ||||||
4 | than a limited liability
company, that is organized and | ||||||
5 | operated as a not-for-profit service enterprise
for the benefit | ||||||
6 | of persons 65 years of age or older if the personal property
| ||||||
7 | was not purchased by the enterprise for the purpose of resale | ||||||
8 | by the
enterprise.
| ||||||
9 | (11) Personal property sold to a governmental body, to a | ||||||
10 | corporation,
society, association, foundation, or institution | ||||||
11 | organized and operated
exclusively for charitable, religious, | ||||||
12 | or educational purposes, or to a
not-for-profit corporation, | ||||||
13 | society, association, foundation, institution,
or organization | ||||||
14 | that has no compensated officers or employees and that is
| ||||||
15 | organized and operated primarily for the recreation of persons | ||||||
16 | 55 years of
age or older. A limited liability company may | ||||||
17 | qualify for the exemption under
this paragraph only if the | ||||||
18 | limited liability company is organized and operated
| ||||||
19 | exclusively for educational purposes. On and after July 1, | ||||||
20 | 1987, however, no
entity otherwise eligible for this exemption | ||||||
21 | shall make tax-free purchases
unless it has an active | ||||||
22 | identification number issued by the Department.
| ||||||
23 | (12) (Blank). Tangible personal property sold to
| ||||||
24 | interstate carriers
for hire for use as
rolling stock moving in | ||||||
25 | interstate commerce or to lessors under leases of
one year or | ||||||
26 | longer executed or in effect at the time of purchase by
|
| |||||||
| |||||||
1 | interstate carriers for hire for use as rolling stock moving in | ||||||
2 | interstate
commerce and equipment operated by a | ||||||
3 | telecommunications provider, licensed as a
common carrier by | ||||||
4 | the Federal Communications Commission, which is permanently
| ||||||
5 | installed in or affixed to aircraft moving in interstate | ||||||
6 | commerce.
| ||||||
7 | (12-5) On and after July 1, 2003 and through June 30, 2004, | ||||||
8 | motor vehicles of the second division
with a gross vehicle | ||||||
9 | weight in excess of 8,000 pounds
that
are
subject to the | ||||||
10 | commercial distribution fee imposed under Section 3-815.1 of
| ||||||
11 | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||||||
12 | through June 30, 2005, the use in this State of motor vehicles | ||||||
13 | of the second division: (i) with a gross vehicle weight rating | ||||||
14 | in excess of 8,000 pounds; (ii) that are subject to the | ||||||
15 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
16 | the Illinois Vehicle Code; and (iii) that are primarily used | ||||||
17 | for commercial purposes. Through June 30, 2005, this
exemption | ||||||
18 | applies to repair and replacement parts added
after the
initial | ||||||
19 | purchase of such a motor vehicle if that motor vehicle is used | ||||||
20 | in a
manner that
would qualify for the rolling stock exemption | ||||||
21 | otherwise provided for in this
Act. For purposes of this | ||||||
22 | paragraph, "used for commercial purposes" means the | ||||||
23 | transportation of persons or property in furtherance of any | ||||||
24 | commercial or industrial enterprise whether for-hire or not.
| ||||||
25 | (13) Proceeds from sales to owners, lessors, or
shippers of
| ||||||
26 | tangible personal property that is utilized by interstate |
| |||||||
| |||||||
1 | carriers for
hire for use as rolling stock moving in interstate | ||||||
2 | commerce
and equipment operated by a telecommunications | ||||||
3 | provider, licensed as a
common carrier by the Federal | ||||||
4 | Communications Commission, which is
permanently installed in | ||||||
5 | or affixed to aircraft moving in interstate commerce.
| ||||||
6 | (14) Machinery and equipment that will be used by the | ||||||
7 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
8 | process of manufacturing or
assembling tangible personal | ||||||
9 | property for wholesale or retail sale or
lease, whether the | ||||||
10 | sale or lease is made directly by the manufacturer or by
some | ||||||
11 | other person, whether the materials used in the process are | ||||||
12 | owned by
the manufacturer or some other person, or whether the | ||||||
13 | sale or lease is made
apart from or as an incident to the | ||||||
14 | seller's engaging in the service
occupation of producing | ||||||
15 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
16 | items of no commercial value on special order for a particular
| ||||||
17 | purchaser. The exemption provided by this paragraph (14) does | ||||||
18 | not include machinery and equipment used in (i) the generation | ||||||
19 | of electricity for wholesale or retail sale; (ii) the | ||||||
20 | generation or treatment of natural or artificial gas for | ||||||
21 | wholesale or retail sale that is delivered to customers through | ||||||
22 | pipes, pipelines, or mains; or (iii) the treatment of water for | ||||||
23 | wholesale or retail sale that is delivered to customers through | ||||||
24 | pipes, pipelines, or mains. The provisions of Public Act 98-583 | ||||||
25 | are declaratory of existing law as to the meaning and scope of | ||||||
26 | this exemption.
|
| |||||||
| |||||||
1 | (15) Proceeds of mandatory service charges separately | ||||||
2 | stated on
customers' bills for purchase and consumption of food | ||||||
3 | and beverages, to the
extent that the proceeds of the service | ||||||
4 | charge are in fact turned over as
tips or as a substitute for | ||||||
5 | tips to the employees who participate directly
in preparing, | ||||||
6 | serving, hosting or cleaning up the food or beverage function
| ||||||
7 | with respect to which the service charge is imposed.
| ||||||
8 | (16) Petroleum products sold to a purchaser if the seller
| ||||||
9 | is prohibited by federal law from charging tax to the | ||||||
10 | purchaser.
| ||||||
11 | (17) Tangible personal property sold to a common carrier by | ||||||
12 | rail or
motor that
receives the physical possession of the | ||||||
13 | property in Illinois and that
transports the property, or | ||||||
14 | shares with another common carrier in the
transportation of the | ||||||
15 | property, out of Illinois on a standard uniform bill
of lading | ||||||
16 | showing the seller of the property as the shipper or consignor | ||||||
17 | of
the property to a destination outside Illinois, for use | ||||||
18 | outside Illinois.
| ||||||
19 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
20 | coinage
issued by the State of Illinois, the government of the | ||||||
21 | United States of
America, or the government of any foreign | ||||||
22 | country, and bullion.
| ||||||
23 | (19) Until July 1 2003, oil field exploration, drilling, | ||||||
24 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
25 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
26 | tubular goods, including casing and
drill strings, (iii) pumps |
| |||||||
| |||||||
1 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
2 | individual replacement part for oil field exploration,
| ||||||
3 | drilling, and production equipment, and (vi) machinery and | ||||||
4 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
5 | required to be registered under the Illinois
Vehicle Code.
| ||||||
6 | (20) Photoprocessing machinery and equipment, including | ||||||
7 | repair and
replacement parts, both new and used, including that | ||||||
8 | manufactured on
special order, certified by the purchaser to be | ||||||
9 | used primarily for
photoprocessing, and including | ||||||
10 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
11 | (21) Coal and aggregate exploration, mining, off-highway | ||||||
12 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
13 | including
replacement parts and equipment, and including
| ||||||
14 | equipment purchased for lease, but excluding motor vehicles | ||||||
15 | required to be
registered under the Illinois Vehicle Code. The | ||||||
16 | changes made to this Section by Public Act 97-767 apply on and | ||||||
17 | after July 1, 2003, but no claim for credit or refund is | ||||||
18 | allowed on or after August 16, 2013 (the effective date of | ||||||
19 | Public Act 98-456)
for such taxes paid during the period | ||||||
20 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
21 | effective date of Public Act 98-456).
| ||||||
22 | (22) Until June 30, 2013, fuel and petroleum products sold | ||||||
23 | to or used by an air carrier,
certified by the carrier to be | ||||||
24 | used for consumption, shipment, or storage
in the conduct of | ||||||
25 | its business as an air common carrier, for a flight
destined | ||||||
26 | for or returning from a location or locations
outside the |
| |||||||
| |||||||
1 | United States without regard to previous or subsequent domestic
| ||||||
2 | stopovers.
| ||||||
3 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
4 | or used by an air carrier, certified by the carrier to be used | ||||||
5 | for consumption, shipment, or storage in the conduct of its | ||||||
6 | business as an air common carrier, for a flight that (i) is | ||||||
7 | engaged in foreign trade or is engaged in trade between the | ||||||
8 | United States and any of its possessions and (ii) transports at | ||||||
9 | least one individual or package for hire from the city of | ||||||
10 | origination to the city of final destination on the same | ||||||
11 | aircraft, without regard to a change in the flight number of | ||||||
12 | that aircraft. | ||||||
13 | (23) A transaction in which the purchase order is received | ||||||
14 | by a florist
who is located outside Illinois, but who has a | ||||||
15 | florist located in Illinois
deliver the property to the | ||||||
16 | purchaser or the purchaser's donee in Illinois.
| ||||||
17 | (24) Fuel consumed or used in the operation of ships, | ||||||
18 | barges, or vessels
that are used primarily in or for the | ||||||
19 | transportation of property or the
conveyance of persons for | ||||||
20 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
21 | by the seller to the purchaser's barge, ship, or vessel
while | ||||||
22 | it is afloat upon that bordering river.
| ||||||
23 | (25) Except as provided in item (25-5) of this Section, a
| ||||||
24 | motor vehicle sold in this State to a nonresident even though | ||||||
25 | the
motor vehicle is delivered to the nonresident in this | ||||||
26 | State, if the motor
vehicle is not to be titled in this State, |
| |||||||
| |||||||
1 | and if a drive-away permit
is issued to the motor vehicle as | ||||||
2 | provided in Section 3-603 of the Illinois
Vehicle Code or if | ||||||
3 | the nonresident purchaser has vehicle registration
plates to | ||||||
4 | transfer to the motor vehicle upon returning to his or her home
| ||||||
5 | state. The issuance of the drive-away permit or having
the
| ||||||
6 | out-of-state registration plates to be transferred is prima | ||||||
7 | facie evidence
that the motor vehicle will not be titled in | ||||||
8 | this State.
| ||||||
9 | (25-5) The exemption under item (25) does not apply if the | ||||||
10 | state in which the motor vehicle will be titled does not allow | ||||||
11 | a reciprocal exemption for a motor vehicle sold and delivered | ||||||
12 | in that state to an Illinois resident but titled in Illinois. | ||||||
13 | The tax collected under this Act on the sale of a motor vehicle | ||||||
14 | in this State to a resident of another state that does not | ||||||
15 | allow a reciprocal exemption shall be imposed at a rate equal | ||||||
16 | to the state's rate of tax on taxable property in the state in | ||||||
17 | which the purchaser is a resident, except that the tax shall | ||||||
18 | not exceed the tax that would otherwise be imposed under this | ||||||
19 | Act. At the time of the sale, the purchaser shall execute a | ||||||
20 | statement, signed under penalty of perjury, of his or her | ||||||
21 | intent to title the vehicle in the state in which the purchaser | ||||||
22 | is a resident within 30 days after the sale and of the fact of | ||||||
23 | the payment to the State of Illinois of tax in an amount | ||||||
24 | equivalent to the state's rate of tax on taxable property in | ||||||
25 | his or her state of residence and shall submit the statement to | ||||||
26 | the appropriate tax collection agency in his or her state of |
| |||||||
| |||||||
1 | residence. In addition, the retailer must retain a signed copy | ||||||
2 | of the statement in his or her records. Nothing in this item | ||||||
3 | shall be construed to require the removal of the vehicle from | ||||||
4 | this state following the filing of an intent to title the | ||||||
5 | vehicle in the purchaser's state of residence if the purchaser | ||||||
6 | titles the vehicle in his or her state of residence within 30 | ||||||
7 | days after the date of sale. The tax collected under this Act | ||||||
8 | in accordance with this item (25-5) shall be proportionately | ||||||
9 | distributed as if the tax were collected at the 6.25% general | ||||||
10 | rate imposed under this Act.
| ||||||
11 | (25-7) Beginning on July 1, 2007, no tax is imposed under | ||||||
12 | this Act on the sale of an aircraft, as defined in Section 3 of | ||||||
13 | the Illinois Aeronautics Act, if all of the following | ||||||
14 | conditions are met: | ||||||
15 | (1) the aircraft leaves this State within 15 days after | ||||||
16 | the later of either the issuance of the final billing for | ||||||
17 | the sale of the aircraft, or the authorized approval for | ||||||
18 | return to service, completion of the maintenance record | ||||||
19 | entry, and completion of the test flight and ground test | ||||||
20 | for inspection, as required by 14 C.F.R. 91.407; | ||||||
21 | (2) the aircraft is not based or registered in this | ||||||
22 | State after the sale of the aircraft; and | ||||||
23 | (3) the seller retains in his or her books and records | ||||||
24 | and provides to the Department a signed and dated | ||||||
25 | certification from the purchaser, on a form prescribed by | ||||||
26 | the Department, certifying that the requirements of this |
| |||||||
| |||||||
1 | item (25-7) are met. The certificate must also include the | ||||||
2 | name and address of the purchaser, the address of the | ||||||
3 | location where the aircraft is to be titled or registered, | ||||||
4 | the address of the primary physical location of the | ||||||
5 | aircraft, and other information that the Department may | ||||||
6 | reasonably require. | ||||||
7 | For purposes of this item (25-7): | ||||||
8 | "Based in this State" means hangared, stored, or otherwise | ||||||
9 | used, excluding post-sale customizations as defined in this | ||||||
10 | Section, for 10 or more days in each 12-month period | ||||||
11 | immediately following the date of the sale of the aircraft. | ||||||
12 | "Registered in this State" means an aircraft registered | ||||||
13 | with the Department of Transportation, Aeronautics Division, | ||||||
14 | or titled or registered with the Federal Aviation | ||||||
15 | Administration to an address located in this State. | ||||||
16 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
17 | Section 2-70.
| ||||||
18 | (26) Semen used for artificial insemination of livestock | ||||||
19 | for direct
agricultural production.
| ||||||
20 | (27) Horses, or interests in horses, registered with and | ||||||
21 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
22 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
23 | Horse Association, United States
Trotting Association, or | ||||||
24 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
25 | racing for prizes. This item (27) is exempt from the provisions | ||||||
26 | of Section 2-70, and the exemption provided for under this item |
| |||||||
| |||||||
1 | (27) applies for all periods beginning May 30, 1995, but no | ||||||
2 | claim for credit or refund is allowed on or after January 1, | ||||||
3 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
4 | paid during the period beginning May 30, 2000 and ending on | ||||||
5 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
6 | (28) Computers and communications equipment utilized for | ||||||
7 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
8 | analysis, or treatment of hospital patients sold to a lessor | ||||||
9 | who leases the
equipment, under a lease of one year or longer | ||||||
10 | executed or in effect at the
time of the purchase, to a
| ||||||
11 | hospital
that has been issued an active tax exemption | ||||||
12 | identification number by the
Department under Section 1g of | ||||||
13 | this Act.
| ||||||
14 | (29) Personal property sold to a lessor who leases the
| ||||||
15 | property, under a
lease of one year or longer executed or in | ||||||
16 | effect at the time of the purchase,
to a governmental body
that | ||||||
17 | has been issued an active tax exemption identification number | ||||||
18 | by the
Department under Section 1g of this Act.
| ||||||
19 | (30) Beginning with taxable years ending on or after | ||||||
20 | December
31, 1995
and
ending with taxable years ending on or | ||||||
21 | before December 31, 2004,
personal property that is
donated for | ||||||
22 | disaster relief to be used in a State or federally declared
| ||||||
23 | disaster area in Illinois or bordering Illinois by a | ||||||
24 | manufacturer or retailer
that is registered in this State to a | ||||||
25 | corporation, society, association,
foundation, or institution | ||||||
26 | that has been issued a sales tax exemption
identification |
| |||||||
| |||||||
1 | number by the Department that assists victims of the disaster
| ||||||
2 | who reside within the declared disaster area.
| ||||||
3 | (31) Beginning with taxable years ending on or after | ||||||
4 | December
31, 1995 and
ending with taxable years ending on or | ||||||
5 | before December 31, 2004, personal
property that is used in the | ||||||
6 | performance of infrastructure repairs in this
State, including | ||||||
7 | but not limited to municipal roads and streets, access roads,
| ||||||
8 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
9 | line extensions,
water distribution and purification | ||||||
10 | facilities, storm water drainage and
retention facilities, and | ||||||
11 | sewage treatment facilities, resulting from a State
or | ||||||
12 | federally declared disaster in Illinois or bordering Illinois | ||||||
13 | when such
repairs are initiated on facilities located in the | ||||||
14 | declared disaster area
within 6 months after the disaster.
| ||||||
15 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
16 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
17 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
18 | provisions
of
Section 2-70.
| ||||||
19 | (33) A motor vehicle, as that term is defined in Section | ||||||
20 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
21 | corporation, limited liability
company, society, association, | ||||||
22 | foundation, or institution that is determined by
the Department | ||||||
23 | to be organized and operated exclusively for educational
| ||||||
24 | purposes. For purposes of this exemption, "a corporation, | ||||||
25 | limited liability
company, society, association, foundation, | ||||||
26 | or institution organized and
operated
exclusively for |
| |||||||
| |||||||
1 | educational purposes" means all tax-supported public schools,
| ||||||
2 | private schools that offer systematic instruction in useful | ||||||
3 | branches of
learning by methods common to public schools and | ||||||
4 | that compare favorably in
their scope and intensity with the | ||||||
5 | course of study presented in tax-supported
schools, and | ||||||
6 | vocational or technical schools or institutes organized and
| ||||||
7 | operated exclusively to provide a course of study of not less | ||||||
8 | than 6 weeks
duration and designed to prepare individuals to | ||||||
9 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
10 | industrial, business, or commercial
occupation.
| ||||||
11 | (34) Beginning January 1, 2000, personal property, | ||||||
12 | including food, purchased
through fundraising events for the | ||||||
13 | benefit of a public or private elementary or
secondary school, | ||||||
14 | a group of those schools, or one or more school districts if
| ||||||
15 | the events are sponsored by an entity recognized by the school | ||||||
16 | district that
consists primarily of volunteers and includes | ||||||
17 | parents and teachers of the
school children. This paragraph | ||||||
18 | does not apply to fundraising events (i) for
the benefit of | ||||||
19 | private home instruction or (ii) for which the fundraising
| ||||||
20 | entity purchases the personal property sold at the events from | ||||||
21 | another
individual or entity that sold the property for the | ||||||
22 | purpose of resale by the
fundraising entity and that profits | ||||||
23 | from the sale to the fundraising entity.
This paragraph is | ||||||
24 | exempt from the provisions of Section 2-70.
| ||||||
25 | (35) Beginning January 1, 2000 and through December 31, | ||||||
26 | 2001, new or used
automatic vending machines that prepare and |
| |||||||
| |||||||
1 | serve hot food and beverages,
including coffee, soup, and other | ||||||
2 | items, and replacement parts for these
machines. Beginning | ||||||
3 | January 1, 2002 and through June 30, 2003, machines
and parts | ||||||
4 | for machines used in
commercial, coin-operated amusement and | ||||||
5 | vending business if a use or occupation
tax is paid on the | ||||||
6 | gross receipts derived from the use of the commercial,
| ||||||
7 | coin-operated amusement and vending machines. This paragraph | ||||||
8 | is exempt from
the provisions of Section 2-70.
| ||||||
9 | (35-5) Beginning August 23, 2001 and through June 30, 2016, | ||||||
10 | food for human consumption that is to be consumed off
the | ||||||
11 | premises where it is sold (other than alcoholic beverages, soft | ||||||
12 | drinks,
and food that has been prepared for immediate | ||||||
13 | consumption) and prescription
and nonprescription medicines, | ||||||
14 | drugs, medical appliances, and insulin, urine
testing | ||||||
15 | materials, syringes, and needles used by diabetics, for human | ||||||
16 | use, when
purchased for use by a person receiving medical | ||||||
17 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
18 | resides in a licensed long-term care facility,
as defined in | ||||||
19 | the Nursing Home Care Act, or a licensed facility as defined in | ||||||
20 | the ID/DD Community Care Act, the MC/DD Act, or the Specialized | ||||||
21 | Mental Health Rehabilitation Act of 2013.
| ||||||
22 | (36) Beginning August 2, 2001, computers and | ||||||
23 | communications equipment
utilized for any hospital purpose and | ||||||
24 | equipment used in the diagnosis,
analysis, or treatment of | ||||||
25 | hospital patients sold to a lessor who leases the
equipment, | ||||||
26 | under a lease of one year or longer executed or in effect at |
| |||||||
| |||||||
1 | the
time of the purchase, to a hospital that has been issued an | ||||||
2 | active tax
exemption identification number by the Department | ||||||
3 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
4 | provisions of Section 2-70.
| ||||||
5 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
6 | lessor who
leases the property, under a lease of one year or | ||||||
7 | longer executed or in effect
at the time of the purchase, to a | ||||||
8 | governmental body that has been issued an
active tax exemption | ||||||
9 | identification number by the Department under Section 1g
of | ||||||
10 | this Act. This paragraph is exempt from the provisions of | ||||||
11 | Section 2-70.
| ||||||
12 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
13 | 2016, tangible personal property purchased
from an Illinois | ||||||
14 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
15 | activities in Illinois who will, upon receipt of the property | ||||||
16 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
17 | the purpose of subsequently
transporting it outside this State | ||||||
18 | for use or consumption thereafter solely
outside this State or | ||||||
19 | (ii) for the purpose of being processed, fabricated, or
| ||||||
20 | manufactured into, attached to, or incorporated into other | ||||||
21 | tangible personal
property to be transported outside this State | ||||||
22 | and thereafter used or consumed
solely outside this State. The | ||||||
23 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
24 | accordance with the Illinois Administrative Procedure Act, | ||||||
25 | issue a
permit to any taxpayer in good standing with the | ||||||
26 | Department who is eligible for
the exemption under this |
| |||||||
| |||||||
1 | paragraph (38). The permit issued under
this paragraph (38) | ||||||
2 | shall authorize the holder, to the extent and
in the manner | ||||||
3 | specified in the rules adopted under this Act, to purchase
| ||||||
4 | tangible personal property from a retailer exempt from the | ||||||
5 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
6 | necessary books and records to
substantiate the use and | ||||||
7 | consumption of all such tangible personal property
outside of | ||||||
8 | the State of Illinois.
| ||||||
9 | (39) Beginning January 1, 2008, tangible personal property | ||||||
10 | used in the construction or maintenance of a community water | ||||||
11 | supply, as defined under Section 3.145 of the Environmental | ||||||
12 | Protection Act, that is operated by a not-for-profit | ||||||
13 | corporation that holds a valid water supply permit issued under | ||||||
14 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
15 | exempt from the provisions of Section 2-70.
| ||||||
16 | (40) Beginning January 1, 2010, materials, parts, | ||||||
17 | equipment, components, and furnishings incorporated into or | ||||||
18 | upon an aircraft as part of the modification, refurbishment, | ||||||
19 | completion, replacement, repair, or maintenance of the | ||||||
20 | aircraft. This exemption includes consumable supplies used in | ||||||
21 | the modification, refurbishment, completion, replacement, | ||||||
22 | repair, and maintenance of aircraft, but excludes any | ||||||
23 | materials, parts, equipment, components, and consumable | ||||||
24 | supplies used in the modification, replacement, repair, and | ||||||
25 | maintenance of aircraft engines or power plants, whether such | ||||||
26 | engines or power plants are installed or uninstalled upon any |
| |||||||
| |||||||
1 | such aircraft. "Consumable supplies" include, but are not | ||||||
2 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
3 | lubricants, cleaning solution, latex gloves, and protective | ||||||
4 | films. This exemption applies only to the sale of qualifying | ||||||
5 | tangible personal property to persons who modify, refurbish, | ||||||
6 | complete, replace, or maintain an aircraft and who (i) hold an | ||||||
7 | Air Agency Certificate and are empowered to operate an approved | ||||||
8 | repair station by the Federal Aviation Administration, (ii) | ||||||
9 | have a Class IV Rating, and (iii) conduct operations in | ||||||
10 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
11 | The exemption does not include aircraft operated by a | ||||||
12 | commercial air carrier providing scheduled passenger air | ||||||
13 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
14 | of the Federal Aviation Regulations. The changes made to this | ||||||
15 | paragraph (40) by Public Act 98-534 are declarative of existing | ||||||
16 | law. | ||||||
17 | (41) Tangible personal property sold to a | ||||||
18 | public-facilities corporation, as described in Section | ||||||
19 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
20 | constructing or furnishing a municipal convention hall, but | ||||||
21 | only if the legal title to the municipal convention hall is | ||||||
22 | transferred to the municipality without any further | ||||||
23 | consideration by or on behalf of the municipality at the time | ||||||
24 | of the completion of the municipal convention hall or upon the | ||||||
25 | retirement or redemption of any bonds or other debt instruments | ||||||
26 | issued by the public-facilities corporation in connection with |
| |||||||
| |||||||
1 | the development of the municipal convention hall. This | ||||||
2 | exemption includes existing public-facilities corporations as | ||||||
3 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
4 | This paragraph is exempt from the provisions of Section 2-70. | ||||||
5 | (42) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
6 | and menstrual cups. | ||||||
7 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
8 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. | ||||||
9 | 1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | ||||||
10 | 7-29-15; 99-855, eff. 8-19-16.)
| ||||||
11 | (35 ILCS 120/2-51)
| ||||||
12 | Sec. 2-51. Motor vehicles; trailers; use as rolling stock | ||||||
13 | definition. | ||||||
14 | (a) (Blank). Through
June 30, 2003, "use
as
rolling stock | ||||||
15 | moving
in
interstate commerce" in
paragraphs (12) and (13) of | ||||||
16 | Section 2-5 means for motor vehicles, as defined in
Section | ||||||
17 | 1-146 of the Illinois Vehicle Code, and trailers, as defined in | ||||||
18 | Section
1-209 of the Illinois Vehicle Code, when on 15 or more | ||||||
19 | occasions in a
12-month period the motor vehicle and trailer | ||||||
20 | has carried persons or property
for
hire in
interstate | ||||||
21 | commerce, even just between points in Illinois, if the motor | ||||||
22 | vehicle
and trailer transports persons whose journeys or | ||||||
23 | property whose shipments
originate or terminate outside | ||||||
24 | Illinois. This
definition applies to all
property purchased for | ||||||
25 | the purpose of being attached to those motor vehicles or
|
| |||||||
| |||||||
1 | trailers as a part thereof.
| ||||||
2 | (b) (Blank). On and after July 1, 2003 and through June 30, | ||||||
3 | 2004, "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) This subsection (c) applies to motor vehicles, other | ||||||
15 | than limousines, purchased through June 30, 2017. For motor | ||||||
16 | vehicles, other than limousines, purchased on or after July 1, | ||||||
17 | 2017, subsection (d-5) applies. This subsection (c) applies to | ||||||
18 | limousines purchased before, on, or after July 1, 2017. "Use | ||||||
19 | Beginning July 1, 2004, "use as rolling stock moving in | ||||||
20 | interstate commerce" in paragraph paragraphs (12) and (13) of | ||||||
21 | Section 2-5 occurs for motor vehicles, as defined in Section | ||||||
22 | 1-146 of the Illinois Vehicle Code, when during a 12-month | ||||||
23 | period the rolling stock has carried persons or property for | ||||||
24 | hire in interstate commerce for greater than 50% of its total | ||||||
25 | trips for that period or for greater than 50% of its total | ||||||
26 | miles for that period. The person claiming the exemption shall |
| |||||||
| |||||||
1 | make an election at the time of purchase to use either the | ||||||
2 | trips or mileage method. Persons who purchased motor vehicles | ||||||
3 | prior to July 1, 2004 shall make an election to use either the | ||||||
4 | trips or mileage method and document that election in their | ||||||
5 | books and records. If no election is made under this subsection | ||||||
6 | to use the trips or mileage method, the person shall be deemed | ||||||
7 | to have chosen the mileage method. | ||||||
8 | For purposes of determining qualifying trips or miles, | ||||||
9 | motor vehicles that carry persons or property for hire, even | ||||||
10 | just between points in Illinois, will be considered used for | ||||||
11 | hire in interstate commerce if the motor vehicle transports | ||||||
12 | persons whose journeys or property whose shipments originate or | ||||||
13 | terminate outside Illinois. The exemption for motor vehicles
| ||||||
14 | used as rolling stock moving in interstate commerce may be
| ||||||
15 | claimed only for the following vehicles: (i) motor vehicles | ||||||
16 | whose gross vehicle weight
rating exceeds 16,000 pounds; and | ||||||
17 | (ii) limousines, as defined in Section 1-139.1 of the Illinois | ||||||
18 | Vehicle Code. Through June 30, 2017, this This definition | ||||||
19 | applies to all property purchased for the purpose of being | ||||||
20 | attached to those motor vehicles as a part thereof. On and | ||||||
21 | after July 1, 2017, this definition applies to property | ||||||
22 | purchased for the purpose of being attached to limousines as a | ||||||
23 | part thereof. | ||||||
24 | (d) For purchases made through June 30, 2017 Beginning July | ||||||
25 | 1, 2004 , "use as rolling stock moving in interstate commerce" | ||||||
26 | in paragraph paragraphs (12) and (13) of Section 2-5 occurs for |
| |||||||
| |||||||
1 | trailers, as defined in Section 1-209 of the Illinois Vehicle | ||||||
2 | Code, semitrailers as defined in Section 1-187 of the Illinois | ||||||
3 | Vehicle Code, and pole trailers as defined in Section 1-161 of | ||||||
4 | the Illinois Vehicle Code, when during a 12-month period the | ||||||
5 | rolling stock has carried persons or property for hire in | ||||||
6 | interstate commerce for greater than 50% of its total trips for | ||||||
7 | that period or for greater than 50% of its total miles for that | ||||||
8 | period. The person claiming the exemption for a trailer or | ||||||
9 | trailers that will not be dedicated to a motor vehicle or group | ||||||
10 | of motor vehicles shall make an election at the time of | ||||||
11 | purchase to use either the trips or mileage method. Persons who | ||||||
12 | purchased trailers prior to July 1, 2004 that are not dedicated | ||||||
13 | to a motor vehicle or group of motor vehicles shall make an | ||||||
14 | election to use either the trips or mileage method and document | ||||||
15 | that election in their books and records. If no election is | ||||||
16 | made under this subsection to use the trips or mileage method, | ||||||
17 | the person shall be deemed to have chosen the mileage method. | ||||||
18 | For purposes of determining qualifying trips or miles, | ||||||
19 | trailers, semitrailers, or pole trailers that carry property | ||||||
20 | for hire, even just between points in Illinois, will be | ||||||
21 | considered used for hire in interstate commerce if the | ||||||
22 | trailers, semitrailers, or pole trailers transport property | ||||||
23 | whose shipments originate or terminate outside Illinois. This | ||||||
24 | definition applies to all property purchased for the purpose of | ||||||
25 | being attached to those trailers, semitrailers, or pole | ||||||
26 | trailers as a part thereof. In lieu of a person providing |
| |||||||
| |||||||
1 | documentation regarding the qualifying use of each individual | ||||||
2 | trailer, semitrailer, or pole trailer, that person may document | ||||||
3 | such qualifying use by providing documentation of the | ||||||
4 | following: | ||||||
5 | (1) If a trailer, semitrailer, or pole trailer is | ||||||
6 | dedicated to a motor vehicle that qualifies as rolling | ||||||
7 | stock moving in interstate commerce under subsection (c) of | ||||||
8 | this Section, then that trailer, semitrailer, or pole | ||||||
9 | trailer qualifies as rolling stock moving in interstate | ||||||
10 | commerce under this subsection. | ||||||
11 | (2) If a trailer, semitrailer, or pole trailer is | ||||||
12 | dedicated to a group of motor vehicles that all qualify as | ||||||
13 | rolling stock moving in interstate commerce under | ||||||
14 | subsection (c) of this Section, then that trailer, | ||||||
15 | semitrailer, or pole trailer qualifies as rolling stock | ||||||
16 | moving in interstate commerce under this subsection. | ||||||
17 | (3) If one or more trailers, semitrailers, or pole | ||||||
18 | trailers are dedicated to a group of motor vehicles and not | ||||||
19 | all of those motor vehicles in that group qualify as | ||||||
20 | rolling stock moving in interstate commerce under | ||||||
21 | subsection (c) of this Section, then the percentage of | ||||||
22 | those trailers, semitrailers, or pole trailers that | ||||||
23 | qualifies as rolling stock moving in interstate commerce | ||||||
24 | under this subsection is equal to the percentage of those | ||||||
25 | motor vehicles in that group that qualify as rolling stock | ||||||
26 | moving in interstate commerce under subsection (c) of this |
| |||||||
| |||||||
1 | Section to which those trailers, semitrailers, or pole | ||||||
2 | trailers are dedicated. However, to determine the | ||||||
3 | qualification for the exemption provided under this item | ||||||
4 | (3), the mathematical application of the qualifying | ||||||
5 | percentage to one or more trailers, semitrailers, or pole | ||||||
6 | trailers under this subpart shall not be allowed as to any | ||||||
7 | fraction of a trailer, semitrailer, or pole trailer.
| ||||||
8 | (d-5) For motor vehicles and trailers purchased on or after | ||||||
9 | July 1, 2017, "use as rolling stock moving in interstate | ||||||
10 | commerce" means that: | ||||||
11 | (1) the motor vehicle or trailer is used to transport | ||||||
12 | persons or property for hire; | ||||||
13 | (2) for purposes of the exemption under paragraph (13) | ||||||
14 | of Section 2-5, the purchaser who is an owner, lessor, or | ||||||
15 | shipper claiming the exemption certifies that the motor | ||||||
16 | vehicle or trailer will be utilized, from the time of | ||||||
17 | purchase and continuing through the statute of limitations | ||||||
18 | for issuing a notice of tax liability under this Act, by an | ||||||
19 | interstate carrier or carriers for hire who hold, and are | ||||||
20 | required by Federal Motor Carrier Safety Administration | ||||||
21 | regulations to hold, an active USDOT Number with the | ||||||
22 | Carrier Operation listed as "Interstate" and the Operation | ||||||
23 | Classification listed as "authorized for hire", "exempt | ||||||
24 | for hire", or both "authorized for hire" and "exempt for | ||||||
25 | hire"; and | ||||||
26 | (3) for motor vehicles, the gross vehicle weight rating |
| |||||||
| |||||||
1 | exceeds 16,000 pounds. | ||||||
2 | The definition of "use as rolling stock moving in | ||||||
3 | interstate commerce" in this subsection (d-5) applies to all | ||||||
4 | property purchased on or after July 1, 2017 for the purpose of | ||||||
5 | being attached to a motor vehicle or trailer as a part thereof, | ||||||
6 | regardless of whether the motor vehicle or trailer was | ||||||
7 | purchased before, on, or after July 1, 2017. | ||||||
8 | If an item ceases to meet requirements (1) through (3) | ||||||
9 | under this subsection (d-5), then the tax is imposed on the | ||||||
10 | selling price, allowing for a reasonable depreciation for the | ||||||
11 | period during which the item qualified for the exemption. | ||||||
12 | For purposes of this subsection (d-5): | ||||||
13 | "Motor vehicle" excludes limousines, but otherwise | ||||||
14 | means that term as defined in Section 1-146 of the Illinois | ||||||
15 | Vehicle Code. | ||||||
16 | "Trailer" means (i) "trailer", as defined in Section | ||||||
17 | 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as | ||||||
18 | defined in Section 1-187 of the Illinois Vehicle Code, and | ||||||
19 | (iii) "pole trailer", as defined in Section 1-161 of the | ||||||
20 | Illinois Vehicle Code. | ||||||
21 | (e) For aircraft and watercraft purchased on or after | ||||||
22 | January 1, 2014, "use as rolling stock moving in interstate | ||||||
23 | commerce" in paragraph paragraphs (12) and (13) of Section 2-5 | ||||||
24 | occurs when, during a 12-month period, the rolling stock has | ||||||
25 | carried persons or property for hire in interstate commerce for | ||||||
26 | greater than 50% of its total trips for that period or for |
| |||||||
| |||||||
1 | greater than 50% of its total miles for that period. The person | ||||||
2 | claiming the exemption shall make an election at the time of | ||||||
3 | purchase to use either the trips or mileage method and document | ||||||
4 | that election in their books and records. If no election is | ||||||
5 | made under this subsection to use the trips or mileage method, | ||||||
6 | the person shall be deemed to have chosen the mileage method. | ||||||
7 | For aircraft, flight hours may be used in lieu of recording | ||||||
8 | miles in determining whether the aircraft meets the mileage | ||||||
9 | test in this subsection. For watercraft, nautical miles or trip | ||||||
10 | hours may be used in lieu of recording miles in determining | ||||||
11 | whether the watercraft meets the mileage test in this | ||||||
12 | subsection. | ||||||
13 | Notwithstanding any other provision of law to the contrary, | ||||||
14 | property purchased on or after January 1, 2014 for the purpose | ||||||
15 | of being attached to aircraft or watercraft as a part thereof | ||||||
16 | qualifies as rolling stock moving in interstate commerce only | ||||||
17 | if the aircraft or watercraft to which it will be attached | ||||||
18 | qualifies as rolling stock moving in interstate commerce under | ||||||
19 | the test set forth in this subsection (e), regardless of when | ||||||
20 | the aircraft or watercraft was purchased. Persons who purchased | ||||||
21 | aircraft or watercraft prior to January 1, 2014 shall make an | ||||||
22 | election to use either the trips or mileage method and document | ||||||
23 | that election in their books and records for the purpose of | ||||||
24 | determining whether property purchased on or after January 1, | ||||||
25 | 2014 for the purpose of being attached to aircraft or | ||||||
26 | watercraft as a part thereof qualifies as rolling stock moving |
| |||||||
| |||||||
1 | in interstate commerce under this subsection (e). | ||||||
2 | (f) The election to use either the trips or mileage method | ||||||
3 | made under the provisions of subsections (c), (d), or (e) of | ||||||
4 | this Section will remain in effect for the duration of the | ||||||
5 | purchaser's ownership of that item. | ||||||
6 | (Source: P.A. 98-584, eff. 8-27-13.)
| ||||||
7 | Section 99. Effective date. This Act takes effect July 1, | ||||||
8 | 2017.".
|