Bill Text: IL HB5942 | 2015-2016 | 99th General Assembly | Introduced
Bill Title: Amends the Service Use Tax Act. Makes a technical change in a Section concerning rolling stock.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-02-11 - Referred to Rules Committee [HB5942 Detail]
Download: Illinois-2015-HB5942-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Service Use Tax Act is amended by changing | |||||||||||||||||||
5 | Section 3-51 as follows:
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6 | (35 ILCS 110/3-51)
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7 | Sec. 3-51. Motor vehicles; trailers; use as rolling stock | |||||||||||||||||||
8 | definition. | |||||||||||||||||||
9 | (a) Through
June 30, 2003, "use
as as
rolling stock moving
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10 | in
interstate commerce" in subsection (b) of Section 3-45 means | |||||||||||||||||||
11 | for motor
vehicles, as defined in Section 1-46 of the Illinois | |||||||||||||||||||
12 | Vehicle Code, and
trailers, as defined in Section 1-209 of the | |||||||||||||||||||
13 | Illinois Vehicle Code, when on 15
or more
occasions in a | |||||||||||||||||||
14 | 12-month period the motor vehicle and trailer has carried
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15 | persons
or property
for hire in interstate commerce, even just | |||||||||||||||||||
16 | between points in Illinois, if the
motor vehicle and trailer | |||||||||||||||||||
17 | transports persons whose journeys or property
whose shipments | |||||||||||||||||||
18 | originate or terminate outside Illinois. This definition
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19 | applies to all property purchased for the purpose of being | |||||||||||||||||||
20 | attached to those
motor
vehicles or trailers as a part thereof.
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21 | (b) On and after July 1, 2003 and through June 30, 2004, | |||||||||||||||||||
22 | "use as rolling stock moving in interstate
commerce" in
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23 | paragraphs (4) and (4a) of the definition of "sale of service" |
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1 | in Section 2
and subsection (b) of Section 3-45 occurs for | ||||||
2 | motor vehicles, as defined in
Section 1-146 of the Illinois | ||||||
3 | Vehicle Code, when
during a 12-month period the rolling stock | ||||||
4 | has carried persons or property for
hire in
interstate commerce | ||||||
5 | for 51% of its total trips and transports persons whose
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6 | journeys or
property whose shipments originate or terminate | ||||||
7 | outside Illinois. Trips that
are only
between points in | ||||||
8 | Illinois shall not be counted as interstate trips when
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9 | calculating whether
the tangible personal property qualifies | ||||||
10 | for the exemption but such trips shall
be included
in total | ||||||
11 | trips taken.
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12 | (c) Beginning July 1, 2004, "use as rolling stock moving in | ||||||
13 | interstate commerce" in paragraphs (4) and (4a) of the | ||||||
14 | definition of "sale of service" in Section 2 and subsection (b) | ||||||
15 | of Section 3-45 occurs for motor vehicles, as defined in | ||||||
16 | Section 1-146 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 shall make an election at the time of purchase to use | ||||||
22 | either the trips or mileage method. Persons who purchased motor | ||||||
23 | vehicles prior to July 1, 2004 shall make an election to use | ||||||
24 | either the trips or mileage method and document that election | ||||||
25 | in their books and records. If no election is made under this | ||||||
26 | subsection to use the trips or mileage method, the person shall |
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1 | be deemed to have chosen the mileage method. | ||||||
2 | For purposes of determining qualifying trips or miles, | ||||||
3 | motor vehicles that carry persons or property for hire, even | ||||||
4 | just between points in Illinois, will be considered used for | ||||||
5 | hire in interstate commerce if the motor vehicle transports | ||||||
6 | persons whose journeys or property whose shipments originate or | ||||||
7 | terminate outside Illinois. The exemption for motor vehicles
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8 | used as rolling stock moving in interstate commerce may be
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9 | claimed only for the following vehicles: (i) motor vehicles | ||||||
10 | whose gross vehicle weight
rating exceeds 16,000 pounds; and | ||||||
11 | (ii) limousines, as defined in Section 1-139.1 of the Illinois | ||||||
12 | Vehicle Code. This definition applies to all property purchased | ||||||
13 | for the purpose of being attached to those motor vehicles as a | ||||||
14 | part thereof. | ||||||
15 | (d) Beginning July 1, 2004, "use as rolling stock moving in | ||||||
16 | interstate commerce" in paragraphs (4) and (4a) of the | ||||||
17 | definition of "sale of service" in Section 2 and subsection (b) | ||||||
18 | of Section 3-45 occurs for trailers, as defined in Section | ||||||
19 | 1-209 of the Illinois Vehicle Code, semitrailers as defined in | ||||||
20 | Section 1-187 of the Illinois Vehicle Code, and pole trailers | ||||||
21 | as defined in Section 1-161 of the Illinois Vehicle Code, when | ||||||
22 | during a 12-month period the rolling stock has carried persons | ||||||
23 | or property for hire in interstate commerce for greater than | ||||||
24 | 50% of its total trips for that period or for greater than 50% | ||||||
25 | of its total miles for that period. The person claiming the | ||||||
26 | exemption for a trailer or trailers that will not be dedicated |
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1 | to a motor vehicle or group of motor vehicles shall make an | ||||||
2 | election at the time of purchase to use either the trips or | ||||||
3 | mileage method. Persons who purchased trailers prior to July 1, | ||||||
4 | 2004 that are not dedicated to a motor vehicle or group of | ||||||
5 | motor vehicles shall make an election to use either the trips | ||||||
6 | or mileage method and document that election in their books and | ||||||
7 | records. If no election is made under this subsection to use | ||||||
8 | the trips or mileage method, the person shall be deemed to have | ||||||
9 | chosen the mileage method. | ||||||
10 | For purposes of determining qualifying trips or miles, | ||||||
11 | trailers, semitrailers, or pole trailers that carry property | ||||||
12 | for hire, even just between points in Illinois, will be | ||||||
13 | considered used for hire in interstate commerce if the | ||||||
14 | trailers, semitrailers, or pole trailers transport property | ||||||
15 | whose shipments originate or terminate outside Illinois. This | ||||||
16 | definition applies to all property purchased for the purpose of | ||||||
17 | being attached to those trailers, semitrailers, or pole | ||||||
18 | trailers as a part thereof. In lieu of a person providing | ||||||
19 | documentation regarding the qualifying use of each individual | ||||||
20 | trailer, semitrailer, or pole trailer, that person may document | ||||||
21 | such qualifying use by providing documentation of the | ||||||
22 | following: | ||||||
23 | (1) If a trailer, semitrailer, or pole trailer is | ||||||
24 | dedicated to a motor vehicle that qualifies as rolling | ||||||
25 | stock moving in interstate commerce under subsection (c) of | ||||||
26 | this Section, then that trailer, semitrailer, or pole |
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1 | trailer qualifies as rolling stock moving in interstate | ||||||
2 | commerce under this subsection. | ||||||
3 | (2) If a trailer, semitrailer, or pole trailer is | ||||||
4 | dedicated to a group of motor vehicles that all qualify as | ||||||
5 | rolling stock moving in interstate commerce under | ||||||
6 | subsection (c) of this Section, then that trailer, | ||||||
7 | semitrailer, or pole trailer qualifies as rolling stock | ||||||
8 | moving in interstate commerce under this subsection. | ||||||
9 | (3) If one or more trailers, semitrailers, or pole | ||||||
10 | trailers are dedicated to a group of motor vehicles and not | ||||||
11 | all of those motor vehicles in that group qualify as | ||||||
12 | rolling stock moving in interstate commerce under | ||||||
13 | subsection (c) of this Section, then the percentage of | ||||||
14 | those trailers, semitrailers, or pole trailers that | ||||||
15 | qualifies as rolling stock moving in interstate commerce | ||||||
16 | under this subsection is equal to the percentage of those | ||||||
17 | motor vehicles in that group that qualify as rolling stock | ||||||
18 | moving in interstate commerce under subsection (c) of this | ||||||
19 | Section to which those trailers, semitrailers, or pole | ||||||
20 | trailers are dedicated. However, to determine the | ||||||
21 | qualification for the exemption provided under this item | ||||||
22 | (3), the mathematical application of the qualifying | ||||||
23 | percentage to one or more trailers, semitrailers, or pole | ||||||
24 | trailers under this subpart shall not be allowed as to any | ||||||
25 | fraction of a trailer, semitrailer, or pole trailer.
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26 | (e) For aircraft and watercraft purchased on or after |
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1 | January 1, 2014, "use as rolling stock moving in interstate | ||||||
2 | commerce" in (i) paragraphs (4) and (4a) of the definition of | ||||||
3 | "sale of service" in Section 2 and (ii) subsection (b) of | ||||||
4 | Section 3-45 occurs when, during a 12-month period, the rolling | ||||||
5 | stock has carried persons or property for hire in interstate | ||||||
6 | commerce for greater than 50% of its total trips for that | ||||||
7 | period or for greater than 50% of its total miles for that | ||||||
8 | period. The person claiming the exemption shall make an | ||||||
9 | election at the time of purchase to use either the trips or | ||||||
10 | mileage method and document that election in their books and | ||||||
11 | records. If no election is made under this subsection to use | ||||||
12 | the trips or mileage method, the person shall be deemed to have | ||||||
13 | chosen the mileage method. For aircraft, flight hours may be | ||||||
14 | used in lieu of recording miles in determining whether the | ||||||
15 | aircraft meets the mileage test in this subsection. For | ||||||
16 | watercraft, nautical miles or trip hours may be used in lieu of | ||||||
17 | recording miles in determining whether the watercraft meets the | ||||||
18 | mileage test in this subsection. | ||||||
19 | Notwithstanding any other provision of law to the contrary, | ||||||
20 | property purchased on or after January 1, 2014 for the purpose | ||||||
21 | of being attached to aircraft or watercraft as a part thereof | ||||||
22 | qualifies as rolling stock moving in interstate commerce only | ||||||
23 | if the aircraft or watercraft to which it will be attached | ||||||
24 | qualifies as rolling stock moving in interstate commerce under | ||||||
25 | the test set forth in this subsection (e), regardless of when | ||||||
26 | the aircraft or watercraft was purchased. Persons who purchased |
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1 | aircraft or watercraft prior to January 1, 2014 shall make an | ||||||
2 | election to use either the trips or mileage method and document | ||||||
3 | that election in their books and records for the purpose of | ||||||
4 | determining whether property purchased on or after January 1, | ||||||
5 | 2014 for the purpose of being attached to aircraft or | ||||||
6 | watercraft as a part thereof qualifies as rolling stock moving | ||||||
7 | in interstate commerce under this subsection (e). | ||||||
8 | (f) The election to use either the trips or mileage method | ||||||
9 | made under the provisions of subsections (c), (d), or (e) of | ||||||
10 | this Section will remain in effect for the duration of the | ||||||
11 | purchaser's ownership of that item. | ||||||
12 | (Source: P.A. 98-584, eff. 8-27-13.)
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