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| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB2423 Introduced 2/9/2016, by Sen. Sue Rezin SYNOPSIS AS INTRODUCED: |
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Amends the Service Use Tax Act. Makes a
technical change in a Section concerning rolling stock.
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| | A BILL FOR |
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| | SB2423 | | LRB099 18682 HLH 43065 b |
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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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