103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2207

 

Introduced 2/10/2023, by Sen. Dale Fowler

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-61
35 ILCS 110/3-51
35 ILCS 115/2d
35 ILCS 120/2-51

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


LRB103 28000 HLH 54379 b

 

 

A BILL FOR

 

SB2207LRB103 28000 HLH 54379 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-61 as follows:
 
6    (35 ILCS 105/3-61)
7    Sec. 3-61. Motor vehicles; trailers; use as rolling stock
8definition.
9    (a) (Blank).
10    (b) (Blank).
11    (c) This subsection (c) applies to motor vehicles, other
12than limousines, purchased through June 30, 2017. For motor
13vehicles, other than limousines, purchased on or after July 1,
142017, subsection (d-5) applies. This subsection (c) applies to
15limousines purchased before, on, or after July 1, 2017. "Use
16as rolling stock moving in interstate commerce" in paragraph
17(c) of Section 3-55 occurs for motor vehicles, as defined in
18Section 1-146 of the Illinois Vehicle Code, when during a
1912-month period the rolling stock has carried persons or
20property for hire in interstate commerce for greater than 50%
21of its total trips for that period or for greater than 50% of
22its total miles for that period. The person claiming the
23exemption shall make an election at the time of purchase to use

 

 

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1either the trips or mileage method. Persons who purchased
2motor vehicles prior to July 1, 2004 shall make an election to
3use either the trips or mileage method and document that
4election in their books and records. If no election is made
5under this subsection to use the trips or mileage method, the
6person shall be deemed to have chosen the mileage method.
7    For purposes of determining qualifying trips or miles,
8motor vehicles that carry persons or property for hire, even
9just between points in Illinois, will be considered used for
10hire in interstate commerce if the motor vehicle transports
11persons whose journeys or property whose shipments originate
12or terminate outside Illinois. The exemption for motor
13vehicles used as rolling stock moving in interstate commerce
14may be claimed only for the following vehicles: (i) motor
15vehicles whose gross vehicle weight rating exceeds 16,000
16pounds; and (ii) limousines, as defined in Section 1-139.1 of
17the Illinois Vehicle Code. Through June 30, 2017, this
18definition applies to all property purchased for the purpose
19of being attached to those motor vehicles as a part thereof. On
20and after July 1, 2017, this definition applies to property
21purchased for the purpose of being attached to limousines as a
22part thereof.
23    (d) For purchases made through June 30, 2017, "use as
24rolling stock moving in interstate commerce" in paragraph (c)
25of Section 3-55 occurs for trailers, as defined in Section
261-209 of the Illinois Vehicle Code, semitrailers as defined in

 

 

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1Section 1-187 of the Illinois Vehicle Code, and pole trailers
2as defined in Section 1-161 of the Illinois Vehicle Code, when
3during a 12-month period the rolling stock has carried persons
4or property for hire in interstate commerce for greater than
550% of its total trips for that period or for greater than 50%
6of its total miles for that period. The person claiming the
7exemption for a trailer or trailers that will not be dedicated
8to a motor vehicle or group of motor vehicles shall make an
9election at the time of purchase to use either the trips or
10mileage method. Persons who purchased trailers prior to July
111, 2004 that are not dedicated to a motor vehicle or group of
12motor vehicles shall make an election to use either the trips
13or mileage method and document that election in their books
14and records. If no election is made under this subsection to
15use the trips or mileage method, the person shall be deemed to
16have chosen the mileage method.
17    For purposes of determining qualifying trips or miles,
18trailers, semitrailers, or pole trailers that carry property
19for hire, even just between points in Illinois, will be
20considered used for hire in interstate commerce if the
21trailers, semitrailers, or pole trailers transport property
22whose shipments originate or terminate outside Illinois. This
23definition applies to all property purchased for the purpose
24of being attached to those trailers, semitrailers, or pole
25trailers as a part thereof. In lieu of a person providing
26documentation regarding the qualifying use of each individual

 

 

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1trailer, semitrailer, or pole trailer, that person may
2document such qualifying use by providing documentation of the
3following:
4        (1) If a trailer, semitrailer, or pole trailer is
5    dedicated to a motor vehicle that qualifies as rolling
6    stock moving in interstate commerce under subsection (c)
7    of this Section, then that trailer, semitrailer, or pole
8    trailer qualifies as rolling stock moving in interstate
9    commerce under this subsection.
10        (2) If a trailer, semitrailer, or pole trailer is
11    dedicated to a group of motor vehicles that all qualify as
12    rolling stock moving in interstate commerce under
13    subsection (c) of this Section, then that trailer,
14    semitrailer, or pole trailer qualifies as rolling stock
15    moving in interstate commerce under this subsection.
16        (3) If one or more trailers, semitrailers, or pole
17    trailers are dedicated to a group of motor vehicles and
18    not all of those motor vehicles in that group qualify as
19    rolling stock moving in interstate commerce under
20    subsection (c) of this Section, then the percentage of
21    those trailers, semitrailers, or pole trailers that
22    qualifies as rolling stock moving in interstate commerce
23    under this subsection is equal to the percentage of those
24    motor vehicles in that group that qualify as rolling stock
25    moving in interstate commerce under subsection (c) of this
26    Section to which those trailers, semitrailers, or pole

 

 

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1    trailers are dedicated. However, to determine the
2    qualification for the exemption provided under this item
3    (3), the mathematical application of the qualifying
4    percentage to one or more trailers, semitrailers, or pole
5    trailers under this subpart shall not be allowed as to any
6    fraction of a trailer, semitrailer, or pole trailer.
7    (d-5) For motor vehicles and trailers purchased on or
8after July 1, 2017, "use as rolling stock moving in interstate
9commerce" means that:
10        (1) the motor vehicle or trailer is used to transport
11    persons or property for hire;
12        (2) for purposes of the exemption under subsection (c)
13    of Section 3-55, the purchaser who is an owner, lessor, or
14    shipper claiming the exemption certifies that the motor
15    vehicle or trailer will be utilized, from the time of
16    purchase and continuing through the statute of limitations
17    for issuing a notice of tax liability under this Act, by an
18    interstate carrier or carriers for hire who hold, and are
19    required by Federal Motor Carrier Safety Administration
20    regulations to hold, an active USDOT Number with the
21    Carrier Operation listed as "Interstate" and the Operation
22    Classification listed as "authorized for hire", "exempt
23    for hire", or both "authorized for hire" and "exempt for
24    hire"; except that this paragraph (2) does not apply to a
25    motor vehicle or trailer used at an airport to support the
26    operation of an aircraft moving in interstate commerce, as

 

 

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1    long as (i) in the case of a motor vehicle, the motor
2    vehicle meets paragraphs (1) and (3) of this subsection
3    (d-5) or (ii) in the case of a trailer, the trailer meets
4    paragraph (1) of this subsection (d-5); and
5        (3) for motor vehicles, the gross vehicle weight
6    rating exceeds 16,000 pounds.
7    The definition of "use as rolling stock moving in
8interstate commerce" in this subsection (d-5) applies to all
9property purchased on or after July 1, 2017 for the purpose of
10being attached to a motor vehicle or trailer as a part thereof,
11regardless of whether the motor vehicle or trailer was
12purchased before, on, or after July 1, 2017.
13    If an item ceases to meet requirements (1) through (3)
14under this subsection (d-5), then the tax is imposed on the
15selling price, allowing for a reasonable depreciation for the
16period during which the item qualified for the exemption.
17    For purposes of this subsection (d-5):
18        "Motor vehicle" excludes limousines, but otherwise
19    means that term as defined in Section 1-146 of the
20    Illinois Vehicle Code.
21        "Trailer" means (i) "trailer", as defined in Section
22    1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
23    defined in Section 1-187 of the Illinois Vehicle Code, and
24    (iii) "pole trailer", as defined in Section 1-161 of the
25    Illinois Vehicle Code.
26    (e) For aircraft purchased on or after January 1, 2014 and

 

 

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1purchased before January 1, 2024 and for watercraft purchased
2on or after January 1, 2014, "use as rolling stock moving in
3interstate commerce" in paragraph (c) of Section 3-55 occurs
4when, during a 12-month period, the rolling stock has carried
5persons or property for hire in interstate commerce for
6greater than 50% of its total trips for that period or for
7greater than 50% of its total miles for that period. For
8aircraft purchased on or after January 1, 2024, "use as
9rolling stock moving in interstate commerce" in paragraph (c)
10of Section 3-55 occurs when, during a 24-month period, the
11rolling stock has carried persons or property for hire in
12interstate commerce for more than 50% of its total trips for
13that period or for more than 50% of its total miles for that
14period. The person claiming the exemption shall make an
15election at the time of purchase to use either the trips or
16mileage method and document that election in their books and
17records. If no election is made under this subsection to use
18the trips or mileage method, the person shall be deemed to have
19chosen the mileage method. For aircraft, flight hours may be
20used in lieu of recording miles in determining whether the
21aircraft meets the mileage test in this subsection. For
22watercraft, nautical miles or trip hours may be used in lieu of
23recording miles in determining whether the watercraft meets
24the mileage test in this subsection.
25    Notwithstanding any other provision of law to the
26contrary, property purchased on or after January 1, 2014 for

 

 

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1the purpose of being attached to aircraft or watercraft as a
2part thereof qualifies as rolling stock moving in interstate
3commerce only if the aircraft or watercraft to which it will be
4attached qualifies as rolling stock moving in interstate
5commerce under the test set forth in this subsection (e),
6regardless of when the aircraft or watercraft was purchased.
7Persons who purchased aircraft or watercraft prior to January
81, 2014 shall make an election to use either the trips or
9mileage method and document that election in their books and
10records for the purpose of determining whether property
11purchased on or after January 1, 2014 for the purpose of being
12attached to aircraft or watercraft as a part thereof qualifies
13as rolling stock moving in interstate commerce under this
14subsection (e).
15    (f) The election to use either the trips or mileage method
16made under the provisions of subsections (c), (d), or (e) of
17this Section will remain in effect for the duration of the
18purchaser's ownership of that item.
19(Source: P.A. 100-321, eff. 8-24-17.)
 
20    Section 10. The Service Use Tax Act is amended by changing
21Section 3-51 as follows:
 
22    (35 ILCS 110/3-51)
23    Sec. 3-51. Motor vehicles; trailers; use as rolling stock
24definition.

 

 

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1    (a) (Blank).
2    (b) (Blank).
3    (c) This subsection (c) applies to motor vehicles, other
4than limousines, purchased through June 30, 2017. For motor
5vehicles, other than limousines, purchased on or after July 1,
62017, subsection (d-5) applies. This subsection (c) applies to
7limousines purchased before, on, or after July 1, 2017. "Use
8as rolling stock moving in interstate commerce" in paragraph
9(4a) of the definition of "sale of service" in Section 2 and
10subsection (b) of Section 3-45 occurs for motor vehicles, as
11defined in Section 1-146 of the Illinois Vehicle Code, when
12during a 12-month period the rolling stock has carried persons
13or property for hire in interstate commerce for greater than
1450% of its total trips for that period or for greater than 50%
15of its total miles for that period. The person claiming the
16exemption shall make an election at the time of purchase to use
17either the trips or mileage method. Persons who purchased
18motor vehicles prior to July 1, 2004 shall make an election to
19use either the trips or mileage method and document that
20election in their books and records. If no election is made
21under this subsection to use the trips or mileage method, the
22person shall be deemed to have chosen the mileage method.
23    For purposes of determining qualifying trips or miles,
24motor vehicles that carry persons or property for hire, even
25just between points in Illinois, will be considered used for
26hire in interstate commerce if the motor vehicle transports

 

 

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1persons whose journeys or property whose shipments originate
2or terminate outside Illinois. The exemption for motor
3vehicles used as rolling stock moving in interstate commerce
4may be claimed only for the following vehicles: (i) motor
5vehicles whose gross vehicle weight rating exceeds 16,000
6pounds; and (ii) limousines, as defined in Section 1-139.1 of
7the Illinois Vehicle Code. Through June 30, 2017, this
8definition applies to all property purchased for the purpose
9of being attached to those motor vehicles as a part thereof. On
10and after July 1, 2017, this definition applies to property
11purchased for the purpose of being attached to limousines as a
12part thereof.
13    (d) For purchases made through June 30, 2017, "use as
14rolling stock moving in interstate commerce" in paragraph (4a)
15of the definition of "sale of service" in Section 2 and
16subsection (b) of Section 3-45 occurs for trailers, as defined
17in Section 1-209 of the Illinois Vehicle Code, semitrailers as
18defined in Section 1-187 of the Illinois Vehicle Code, and
19pole trailers as defined in Section 1-161 of the Illinois
20Vehicle Code, when during a 12-month period the rolling stock
21has carried persons or property for hire in interstate
22commerce for greater than 50% of its total trips for that
23period or for greater than 50% of its total miles for that
24period. The person claiming the exemption for a trailer or
25trailers that will not be dedicated to a motor vehicle or group
26of motor vehicles shall make an election at the time of

 

 

SB2207- 11 -LRB103 28000 HLH 54379 b

1purchase to use either the trips or mileage method. Persons
2who purchased trailers prior to July 1, 2004 that are not
3dedicated to a motor vehicle or group of motor vehicles shall
4make an election to use either the trips or mileage method and
5document that election in their books and records. If no
6election is made under this subsection to use the trips or
7mileage method, the person shall be deemed to have chosen the
8mileage method.
9    For purposes of determining qualifying trips or miles,
10trailers, semitrailers, or pole trailers that carry property
11for hire, even just between points in Illinois, will be
12considered used for hire in interstate commerce if the
13trailers, semitrailers, or pole trailers transport property
14whose shipments originate or terminate outside Illinois. This
15definition applies to all property purchased for the purpose
16of being attached to those trailers, semitrailers, or pole
17trailers as a part thereof. In lieu of a person providing
18documentation regarding the qualifying use of each individual
19trailer, semitrailer, or pole trailer, that person may
20document such qualifying use by providing documentation of the
21following:
22        (1) If a trailer, semitrailer, or pole trailer is
23    dedicated to a motor vehicle that qualifies as rolling
24    stock moving in interstate commerce under subsection (c)
25    of this Section, then that trailer, semitrailer, or pole
26    trailer qualifies as rolling stock moving in interstate

 

 

SB2207- 12 -LRB103 28000 HLH 54379 b

1    commerce under this subsection.
2        (2) If a trailer, semitrailer, or pole trailer is
3    dedicated to a group of motor vehicles that all qualify as
4    rolling stock moving in interstate commerce under
5    subsection (c) of this Section, then that trailer,
6    semitrailer, or pole trailer qualifies as rolling stock
7    moving in interstate commerce under this subsection.
8        (3) If one or more trailers, semitrailers, or pole
9    trailers are dedicated to a group of motor vehicles and
10    not all of those motor vehicles in that group qualify as
11    rolling stock moving in interstate commerce under
12    subsection (c) of this Section, then the percentage of
13    those trailers, semitrailers, or pole trailers that
14    qualifies as rolling stock moving in interstate commerce
15    under this subsection is equal to the percentage of those
16    motor vehicles in that group that qualify as rolling stock
17    moving in interstate commerce under subsection (c) of this
18    Section to which those trailers, semitrailers, or pole
19    trailers are dedicated. However, to determine the
20    qualification for the exemption provided under this item
21    (3), the mathematical application of the qualifying
22    percentage to one or more trailers, semitrailers, or pole
23    trailers under this subpart shall not be allowed as to any
24    fraction of a trailer, semitrailer, or pole trailer.
25    (d-5) For motor vehicles and trailers purchased on or
26after July 1, 2017, "use as rolling stock moving in interstate

 

 

SB2207- 13 -LRB103 28000 HLH 54379 b

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

 

 

SB2207- 14 -LRB103 28000 HLH 54379 b

1interstate commerce" in this subsection (d-5) applies to all
2property purchased on or after July 1, 2017 for the purpose of
3being attached to a motor vehicle or trailer as a part thereof,
4regardless of whether the motor vehicle or trailer was
5purchased before, on, or after July 1, 2017.
6    If an item ceases to meet requirements (1) through (3)
7under this subsection (d-5), then the tax is imposed on the
8selling price, allowing for a reasonable depreciation for the
9period during which the item qualified for the exemption.
10    For purposes of this subsection (d-5):
11        "Motor vehicle" excludes limousines, but otherwise
12    means that term as defined in Section 1-146 of the
13    Illinois Vehicle Code.
14        "Trailer" means (i) "trailer", as defined in Section
15    1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
16    defined in Section 1-187 of the Illinois Vehicle Code, and
17    (iii) "pole trailer", as defined in Section 1-161 of the
18    Illinois Vehicle Code.
19    (e) For aircraft purchased on or after January 1, 2014 and
20purchased before January 1, 2024 and for watercraft purchased
21on or after January 1, 2014, "use as rolling stock moving in
22interstate commerce" in (i) paragraph (4a) of the definition
23of "sale of service" in Section 2 and (ii) subsection (b) of
24Section 3-45 occurs when, during a 12-month period, the
25rolling stock has carried persons or property for hire in
26interstate commerce for greater than 50% of its total trips

 

 

SB2207- 15 -LRB103 28000 HLH 54379 b

1for that period or for greater than 50% of its total miles for
2that period. For aircraft purchased on or after January 1,
32024, "use as rolling stock moving in interstate commerce" in
4(i) paragraph (4a) of the definition of "sale of service" in
5Section 2 and (ii) subsection (b) of Section 3-45 occurs when,
6during a 24-month period, the rolling stock has carried
7persons or property for hire in interstate commerce for more
8than 50% of its total trips for that period or for more than
950% of its total miles for that period. The person claiming the
10exemption shall make an election at the time of purchase to use
11either the trips or mileage method and document that election
12in their books and records. If no election is made under this
13subsection to use the trips or mileage method, the person
14shall be deemed to have chosen the mileage method. For
15aircraft, flight hours may be used in lieu of recording miles
16in determining whether the aircraft meets the mileage test in
17this subsection. For watercraft, nautical miles or trip hours
18may be used in lieu of recording miles in determining whether
19the watercraft meets the mileage test in this subsection.
20    Notwithstanding any other provision of law to the
21contrary, property purchased on or after January 1, 2014 for
22the purpose of being attached to aircraft or watercraft as a
23part thereof qualifies as rolling stock moving in interstate
24commerce only if the aircraft or watercraft to which it will be
25attached qualifies as rolling stock moving in interstate
26commerce under the test set forth in this subsection (e),

 

 

SB2207- 16 -LRB103 28000 HLH 54379 b

1regardless of when the aircraft or watercraft was purchased.
2Persons who purchased aircraft or watercraft prior to January
31, 2014 shall make an election to use either the trips or
4mileage method and document that election in their books and
5records for the purpose of determining whether property
6purchased on or after January 1, 2014 for the purpose of being
7attached to aircraft or watercraft as a part thereof qualifies
8as rolling stock moving in interstate commerce under this
9subsection (e).
10    (f) The election to use either the trips or mileage method
11made under the provisions of subsections (c), (d), or (e) of
12this Section will remain in effect for the duration of the
13purchaser's ownership of that item.
14(Source: P.A. 100-321, eff. 8-24-17.)
 
15    Section 15. The Service Occupation Tax Act is amended by
16changing Section 2d as follows:
 
17    (35 ILCS 115/2d)
18    Sec. 2d. Motor vehicles; trailers; use as rolling stock
19definition.
20    (a) (Blank).
21    (b) (Blank).
22    (c) This subsection (c) applies to motor vehicles, other
23than limousines, purchased through June 30, 2017. For motor
24vehicles, other than limousines, purchased on or after July 1,

 

 

SB2207- 17 -LRB103 28000 HLH 54379 b

12017, subsection (d-5) applies. This subsection (c) applies to
2limousines purchased before, on, or after July 1, 2017. "Use
3as rolling stock moving in interstate commerce" in paragraph
4(d-1) of the definition of "sale of service" in Section 2
5occurs for motor vehicles, as defined in Section 1-146 of the
6Illinois Vehicle Code, when during a 12-month period the
7rolling stock has carried persons or property for hire in
8interstate commerce for greater than 50% of its total trips
9for that period or for greater than 50% of its total miles for
10that period. The person claiming the exemption shall make an
11election at the time of purchase to use either the trips or
12mileage method. Persons who purchased motor vehicles prior to
13July 1, 2004 shall make an election to use either the trips or
14mileage method and document that election in their books and
15records. If no election is made under this subsection to use
16the trips or mileage method, the person shall be deemed to have
17chosen the mileage method.
18    For purposes of determining qualifying trips or miles,
19motor vehicles that carry persons or property for hire, even
20just between points in Illinois, will be considered used for
21hire in interstate commerce if the motor vehicle transports
22persons whose journeys or property whose shipments originate
23or terminate outside Illinois. The exemption for motor
24vehicles used as rolling stock moving in interstate commerce
25may be claimed only for the following vehicles: (i) motor
26vehicles whose gross vehicle weight rating exceeds 16,000

 

 

SB2207- 18 -LRB103 28000 HLH 54379 b

1pounds; and (ii) limousines, as defined in Section 1-139.1 of
2the Illinois Vehicle Code. Through June 30, 2017, this
3definition applies to all property purchased for the purpose
4of being attached to those motor vehicles as a part thereof. On
5and after July 1, 2017, this definition applies to property
6purchased for the purpose of being attached to limousines as a
7part thereof.
8    (d) For purchases made through June 30, 2017, "use as
9rolling stock moving in interstate commerce" in paragraph
10(d-1) of the definition of "sale of service" in Section 2
11occurs for trailers, as defined in Section 1-209 of the
12Illinois Vehicle Code, semitrailers as defined in Section
131-187 of the Illinois Vehicle Code, and pole trailers as
14defined in Section 1-161 of the Illinois Vehicle Code, when
15during a 12-month period the rolling stock has carried persons
16or property for hire in interstate commerce for greater than
1750% of its total trips for that period or for greater than 50%
18of its total miles for that period. The person claiming the
19exemption for a trailer or trailers that will not be dedicated
20to a motor vehicle or group of motor vehicles shall make an
21election at the time of purchase to use either the trips or
22mileage method. Persons who purchased trailers prior to July
231, 2004 that are not dedicated to a motor vehicle or group of
24motor vehicles shall make an election to use either the trips
25or mileage method and document that election in their books
26and records. If no election is made under this subsection to

 

 

SB2207- 19 -LRB103 28000 HLH 54379 b

1use the trips or mileage method, the person shall be deemed to
2have chosen the mileage method.
3    For purposes of determining qualifying trips or miles,
4trailers, semitrailers, or pole trailers that carry property
5for hire, even just between points in Illinois, will be
6considered used for hire in interstate commerce if the
7trailers, semitrailers, or pole trailers transport property
8whose shipments originate or terminate outside Illinois. This
9definition applies to all property purchased for the purpose
10of being attached to those trailers, semitrailers, or pole
11trailers as a part thereof. In lieu of a person providing
12documentation regarding the qualifying use of each individual
13trailer, semitrailer, or pole trailer, that person may
14document such qualifying use by providing documentation of the
15following:
16        (1) If a trailer, semitrailer, or pole trailer is
17    dedicated to a motor vehicle that qualifies as rolling
18    stock moving in interstate commerce under subsection (c)
19    of this Section, then that trailer, semitrailer, or pole
20    trailer qualifies as rolling stock moving in interstate
21    commerce under this subsection.
22        (2) If a trailer, semitrailer, or pole trailer is
23    dedicated to a group of motor vehicles that all qualify as
24    rolling stock moving in interstate commerce under
25    subsection (c) of this Section, then that trailer,
26    semitrailer, or pole trailer qualifies as rolling stock

 

 

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1    moving in interstate commerce under this subsection.
2        (3) If one or more trailers, semitrailers, or pole
3    trailers are dedicated to a group of motor vehicles and
4    not all of those motor vehicles in that group qualify as
5    rolling stock moving in interstate commerce under
6    subsection (c) of this Section, then the percentage of
7    those trailers, semitrailers, or pole trailers that
8    qualifies as rolling stock moving in interstate commerce
9    under this subsection is equal to the percentage of those
10    motor vehicles in that group that qualify as rolling stock
11    moving in interstate commerce under subsection (c) of this
12    Section to which those trailers, semitrailers, or pole
13    trailers are dedicated. However, to determine the
14    qualification for the exemption provided under this item
15    (3), the mathematical application of the qualifying
16    percentage to one or more trailers, semitrailers, or pole
17    trailers under this subpart shall not be allowed as to any
18    fraction of a trailer, semitrailer, or pole trailer.
19    (d-5) For motor vehicles and trailers purchased on or
20after July 1, 2017, "use as rolling stock moving in interstate
21commerce" means that:
22        (1) the motor vehicle or trailer is used to transport
23    persons or property for hire;
24        (2) for purposes of the exemption under paragraph
25    (d-1) of the definition of "sale of service" in Section 2,
26    the purchaser who is an owner, lessor, or shipper claiming

 

 

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1    the exemption certifies that the motor vehicle or trailer
2    will be utilized, from the time of purchase and continuing
3    through the statute of limitations for issuing a notice of
4    tax liability under this Act, by an interstate carrier or
5    carriers for hire who hold, and are required by Federal
6    Motor Carrier Safety Administration regulations to hold,
7    an active USDOT Number with the Carrier Operation listed
8    as "Interstate" and the Operation Classification listed as
9    "authorized for hire", "exempt for hire", or both
10    "authorized for hire" and "exempt for hire"; except that
11    this paragraph (2) does not apply to a motor vehicle or
12    trailer used at an airport to support the operation of an
13    aircraft moving in interstate commerce, as long as (i) in
14    the case of a motor vehicle, the motor vehicle meets
15    paragraphs (1) and (3) of this subsection (d-5) or (ii) in
16    the case of a trailer, the trailer meets paragraph (1) of
17    this subsection (d-5); and
18        (3) for motor vehicles, the gross vehicle weight
19    rating exceeds 16,000 pounds.
20    The definition of "use as rolling stock moving in
21interstate commerce" in this subsection (d-5) applies to all
22property purchased on or after July 1, 2017 for the purpose of
23being attached to a motor vehicle or trailer as a part thereof,
24regardless of whether the motor vehicle or trailer was
25purchased before, on, or after July 1, 2017.
26    If an item ceases to meet requirements (1) through (3)

 

 

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1under this subsection (d-5), then the tax is imposed on the
2selling price, allowing for a reasonable depreciation for the
3period during which the item qualified for the exemption.
4    For purposes of this subsection (d-5):
5        "Motor vehicle" excludes limousines, but otherwise
6    means that term as defined in Section 1-146 of the
7    Illinois Vehicle Code.
8        "Trailer" means (i) "trailer", as defined in Section
9    1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
10    defined in Section 1-187 of the Illinois Vehicle Code, and
11    (iii) "pole trailer", as defined in Section 1-161 of the
12    Illinois Vehicle Code.
13    (e) For aircraft purchased on or after January 1, 2014 and
14purchased before January 1, 2024 and for watercraft purchased
15on or after January 1, 2014, "use as rolling stock moving in
16interstate commerce" in paragraph (d-1) of the definition of
17"sale of service" in Section 2 occurs when, during a 12-month
18period, the rolling stock has carried persons or property for
19hire in interstate commerce for greater than 50% of its total
20trips for that period or for greater than 50% of its total
21miles for that period. For aircraft purchased on or after
22January 1, 2024, "use as rolling stock moving in interstate
23commerce" in paragraph (d-1) of the definition of "sale of
24service" in Section 2 occurs when, during a 24-month period,
25the rolling stock has carried persons or property for hire in
26interstate commerce for more than 50% of its total trips for

 

 

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1that period or for more than 50% of its total miles for that
2period. The person claiming the exemption shall make an
3election at the time of purchase to use either the trips or
4mileage method and document that election in their books and
5records. If no election is made under this subsection to use
6the trips or mileage method, the person shall be deemed to have
7chosen the mileage method. For aircraft, flight hours may be
8used in lieu of recording miles in determining whether the
9aircraft meets the mileage test in this subsection. For
10watercraft, nautical miles or trip hours may be used in lieu of
11recording miles in determining whether the watercraft meets
12the mileage test in this subsection.
13    Notwithstanding any other provision of law to the
14contrary, property purchased on or after January 1, 2014 for
15the purpose of being attached to aircraft or watercraft as a
16part thereof qualifies as rolling stock moving in interstate
17commerce only if the aircraft or watercraft to which it will be
18attached qualifies as rolling stock moving in interstate
19commerce under the test set forth in this subsection (e),
20regardless of when the aircraft or watercraft was purchased.
21Persons who purchased aircraft or watercraft prior to January
221, 2014 shall make an election to use either the trips or
23mileage method and document that election in their books and
24records for the purpose of determining whether property
25purchased on or after January 1, 2014 for the purpose of being
26attached to aircraft or watercraft as a part thereof qualifies

 

 

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1as rolling stock moving in interstate commerce under this
2subsection (e).
3    (f) The election to use either the trips or mileage method
4made under the provisions of subsections (c), (d), or (e) of
5this Section will remain in effect for the duration of the
6purchaser's ownership of that item.
7(Source: P.A. 102-558, eff. 8-20-21.)
 
8    Section 20. The Retailers' Occupation Tax Act is amended
9by changing Section 2-51 as follows:
 
10    (35 ILCS 120/2-51)
11    Sec. 2-51. Motor vehicles; trailers; use as rolling stock
12definition.
13    (a) (Blank).
14    (b) (Blank).
15    (c) This subsection (c) applies to motor vehicles, other
16than limousines, purchased through June 30, 2017. For motor
17vehicles, other than limousines, purchased on or after July 1,
182017, subsection (d-5) applies. This subsection (c) applies to
19limousines purchased before, on, or after July 1, 2017. "Use
20as rolling stock moving in interstate commerce" in paragraph
21(13) of Section 2-5 occurs for motor vehicles, as defined in
22Section 1-146 of the Illinois Vehicle Code, when during a
2312-month period the rolling stock has carried persons or
24property for hire in interstate commerce for greater than 50%

 

 

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1of its total trips for that period or for greater than 50% of
2its total miles for that period. The person claiming the
3exemption shall make an election at the time of purchase to use
4either the trips or mileage method. Persons who purchased
5motor vehicles prior to July 1, 2004 shall make an election to
6use either the trips or mileage method and document that
7election in their books and records. If no election is made
8under this subsection to use the trips or mileage method, the
9person shall be deemed to have chosen the mileage method.
10    For purposes of determining qualifying trips or miles,
11motor vehicles that carry persons or property for hire, even
12just between points in Illinois, will be considered used for
13hire in interstate commerce if the motor vehicle transports
14persons whose journeys or property whose shipments originate
15or terminate outside Illinois. The exemption for motor
16vehicles used as rolling stock moving in interstate commerce
17may be claimed only for the following vehicles: (i) motor
18vehicles whose gross vehicle weight rating exceeds 16,000
19pounds; and (ii) limousines, as defined in Section 1-139.1 of
20the Illinois Vehicle Code. Through June 30, 2017, this
21definition applies to all property purchased for the purpose
22of being attached to those motor vehicles as a part thereof. On
23and after July 1, 2017, this definition applies to property
24purchased for the purpose of being attached to limousines as a
25part thereof.
26    (d) For purchases made through June 30, 2017, "use as

 

 

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1rolling stock moving in interstate commerce" in paragraph (13)
2of Section 2-5 occurs for trailers, as defined in Section
31-209 of the Illinois Vehicle Code, semitrailers as defined in
4Section 1-187 of the Illinois Vehicle Code, and pole trailers
5as defined in Section 1-161 of the Illinois Vehicle Code, when
6during a 12-month period the rolling stock has carried persons
7or property for hire in interstate commerce for greater than
850% of its total trips for that period or for greater than 50%
9of its total miles for that period. The person claiming the
10exemption for a trailer or trailers that will not be dedicated
11to a motor vehicle or group of motor vehicles shall make an
12election at the time of purchase to use either the trips or
13mileage method. Persons who purchased trailers prior to July
141, 2004 that are not dedicated to a motor vehicle or group of
15motor vehicles shall make an election to use either the trips
16or mileage method and document that election in their books
17and records. If no election is made under this subsection to
18use the trips or mileage method, the person shall be deemed to
19have chosen the mileage method.
20    For purposes of determining qualifying trips or miles,
21trailers, semitrailers, or pole trailers that carry property
22for hire, even just between points in Illinois, will be
23considered used for hire in interstate commerce if the
24trailers, semitrailers, or pole trailers transport property
25whose shipments originate or terminate outside Illinois. This
26definition applies to all property purchased for the purpose

 

 

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1of being attached to those trailers, semitrailers, or pole
2trailers as a part thereof. In lieu of a person providing
3documentation regarding the qualifying use of each individual
4trailer, semitrailer, or pole trailer, that person may
5document such qualifying use by providing documentation of the
6following:
7        (1) If a trailer, semitrailer, or pole trailer is
8    dedicated to a motor vehicle that qualifies as rolling
9    stock moving in interstate commerce under subsection (c)
10    of this Section, then that trailer, semitrailer, or pole
11    trailer qualifies as rolling stock moving in interstate
12    commerce under this subsection.
13        (2) If a trailer, semitrailer, or pole trailer is
14    dedicated to a group of motor vehicles that all qualify as
15    rolling stock moving in interstate commerce under
16    subsection (c) of this Section, then that trailer,
17    semitrailer, or pole trailer qualifies as rolling stock
18    moving in interstate commerce under this subsection.
19        (3) If one or more trailers, semitrailers, or pole
20    trailers are dedicated to a group of motor vehicles and
21    not all of those motor vehicles in that group qualify as
22    rolling stock moving in interstate commerce under
23    subsection (c) of this Section, then the percentage of
24    those trailers, semitrailers, or pole trailers that
25    qualifies as rolling stock moving in interstate commerce
26    under this subsection is equal to the percentage of those

 

 

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1    motor vehicles in that group that qualify as rolling stock
2    moving in interstate commerce under subsection (c) of this
3    Section to which those trailers, semitrailers, or pole
4    trailers are dedicated. However, to determine the
5    qualification for the exemption provided under this item
6    (3), the mathematical application of the qualifying
7    percentage to one or more trailers, semitrailers, or pole
8    trailers under this subpart shall not be allowed as to any
9    fraction of a trailer, semitrailer, or pole trailer.
10    (d-5) For motor vehicles and trailers purchased on or
11after July 1, 2017, "use as rolling stock moving in interstate
12commerce" means that:
13        (1) the motor vehicle or trailer is used to transport
14    persons or property for hire;
15        (2) for purposes of the exemption under paragraph (13)
16    of Section 2-5, the purchaser who is an owner, lessor, or
17    shipper claiming the exemption certifies that the motor
18    vehicle or trailer will be utilized, from the time of
19    purchase and continuing through the statute of limitations
20    for issuing a notice of tax liability under this Act, by an
21    interstate carrier or carriers for hire who hold, and are
22    required by Federal Motor Carrier Safety Administration
23    regulations to hold, an active USDOT Number with the
24    Carrier Operation listed as "Interstate" and the Operation
25    Classification listed as "authorized for hire", "exempt
26    for hire", or both "authorized for hire" and "exempt for

 

 

SB2207- 29 -LRB103 28000 HLH 54379 b

1    hire"; except that this paragraph (2) does not apply to a
2    motor vehicle or trailer used at an airport to support the
3    operation of an aircraft moving in interstate commerce, as
4    long as (i) in the case of a motor vehicle, the motor
5    vehicle meets paragraphs (1) and (3) of this subsection
6    (d-5) or (ii) in the case of a trailer, the trailer meets
7    paragraph (1) of this subsection (d-5); and
8        (3) for motor vehicles, the gross vehicle weight
9    rating exceeds 16,000 pounds.
10    The definition of "use as rolling stock moving in
11interstate commerce" in this subsection (d-5) applies to all
12property purchased on or after July 1, 2017 for the purpose of
13being attached to a motor vehicle or trailer as a part thereof,
14regardless of whether the motor vehicle or trailer was
15purchased before, on, or after July 1, 2017.
16    If an item ceases to meet requirements (1) through (3)
17under this subsection (d-5), then the tax is imposed on the
18selling price, allowing for a reasonable depreciation for the
19period during which the item qualified for the exemption.
20    For purposes of this subsection (d-5):
21        "Motor vehicle" excludes limousines, but otherwise
22    means that term as defined in Section 1-146 of the
23    Illinois Vehicle Code.
24        "Trailer" means (i) "trailer", as defined in Section
25    1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
26    defined in Section 1-187 of the Illinois Vehicle Code, and

 

 

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1    (iii) "pole trailer", as defined in Section 1-161 of the
2    Illinois Vehicle Code.
3    (e) For aircraft purchased on or after January 1, 2014 and
4purchased before January 1, 2024 and for watercraft purchased
5on or after January 1, 2014, "use as rolling stock moving in
6interstate commerce" in paragraph (13) of Section 2-5 occurs
7when, during a 12-month period, the rolling stock has carried
8persons or property for hire in interstate commerce for
9greater than 50% of its total trips for that period or for
10greater than 50% of its total miles for that period. For
11aircraft purchased on or after January 1, 2024, "use as
12rolling stock moving in interstate commerce" in paragraph (13)
13of Section 2-5 occurs when, during a 24-month period, the
14rolling stock has carried persons or property for hire in
15interstate commerce for more than 50% of its total trips for
16that period or for more than 50% of its total miles for that
17period. The person claiming the exemption shall make an
18election at the time of purchase to use either the trips or
19mileage method and document that election in their books and
20records. If no election is made under this subsection to use
21the trips or mileage method, the person shall be deemed to have
22chosen the mileage method. For aircraft, flight hours may be
23used in lieu of recording miles in determining whether the
24aircraft meets the mileage test in this subsection. For
25watercraft, nautical miles or trip hours may be used in lieu of
26recording miles in determining whether the watercraft meets

 

 

SB2207- 31 -LRB103 28000 HLH 54379 b

1the mileage test in this subsection.
2    Notwithstanding any other provision of law to the
3contrary, property purchased on or after January 1, 2014 for
4the purpose of being attached to aircraft or watercraft as a
5part thereof qualifies as rolling stock moving in interstate
6commerce only if the aircraft or watercraft to which it will be
7attached qualifies as rolling stock moving in interstate
8commerce under the test set forth in this subsection (e),
9regardless of when the aircraft or watercraft was purchased.
10Persons who purchased aircraft or watercraft prior to January
111, 2014 shall make an election to use either the trips or
12mileage method and document that election in their books and
13records for the purpose of determining whether property
14purchased on or after January 1, 2014 for the purpose of being
15attached to aircraft or watercraft as a part thereof qualifies
16as rolling stock moving in interstate commerce under this
17subsection (e).
18    (f) The election to use either the trips or mileage method
19made under the provisions of subsections (c), (d), or (e) of
20this Section will remain in effect for the duration of the
21purchaser's ownership of that item.
22(Source: P.A. 100-321, eff. 8-24-17.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.