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90_HB0581eng
35 ILCS 105/3-95 new
35 ILCS 110/3-80 new
35 ILCS 115/3-60 new
35 ILCS 120/2-75 new
Amends the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act. Exempts aviation fuel received for use or consumption
in the operation of an air cargo transportation hub facility
that meets certain requirements from the taxes imposed by
those Acts for a period of 10 years. Requires the facility to
receive a certificate of eligibility for exemption from the
Department of Commerce and Community Affairs. Requires the
facility to repay exempted taxes if the facility fails to
meet certain requirements. Effective immediately.
LRB9001527DNmbA
HB0581 Engrossed LRB9001527DNmbA
1 AN ACT concerning occupation and use taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by adding Section
5 3-95 as follows:
6 (35 ILCS 105/3-95 new)
7 Sec. 3-95. Air cargo transportation hub facility;
8 exemption.
9 (a) "Air cargo transportation hub facility" means a
10 facility that is operated by an express air courier used
11 primarily for sorting, handling, and redistribution of mail,
12 freight, or other cargo received from agents or employees of
13 the courier for processing at a common location and
14 redistributed to either other employees or agents of the
15 courier for delivery directly to an ultimate destination on
16 an item-by-item basis, and that (i) will make an investment
17 by a business enterprise of $35,000,000 or more in real
18 estate improvements, machinery, or equipment, (ii) will cause
19 the creation of at least 750 jobs in an enterprise zone
20 established under the Illinois Enterprise Zone Act or at any
21 airport in this State that was an active duty U.S. Air Force
22 base with a joint use operating contract within a county with
23 a population between 250,000 and 300,000 at the time the
24 contract was made, and (iii) is certified by the Department
25 of Commerce and Community Affairs as contractually obligated
26 to meet the requirements specified in (i), (ii), and (iii) of
27 this Section within the time period specified in the
28 certificate of eligibility for exemption. Any business
29 enterprise applying for the exemption stated in subsection
30 (b) shall apply to the Department of Commerce and Community
31 Affairs in the form prescribed by the Department and shall
HB0581 Engrossed -2- LRB9001527DNmbA
1 provide any information required by the Department. The
2 Department of Commerce and Community Affairs shall determine,
3 within 60 days after it receives an application for
4 exemption, whether the business enterprise meets the criteria
5 prescribed in this subsection. If the Department determines
6 that the business enterprise meets the criteria, it shall
7 issue a certificate of eligibility for the exemption in
8 subsection (b) to the business enterprise in the form
9 prescribed by the Department of Revenue. The Department of
10 Commerce and Community Affairs shall file with the Department
11 of Revenue a copy of each certificate of eligibility for
12 exemption. If the business enterprise has received a
13 certificate of eligibility for the exemption under Section
14 3-80 of the Service Use Tax Act, Section 3-60 of the Service
15 Occupation Tax Act, or Section 2-75 of the Retailers'
16 Occupation Tax Act, then the enterprise shall not be required
17 to receive a separate certificate to receive the exemption
18 under this Act. The Department of Commerce and Community
19 Affairs shall have the power to promulgate rules to carry out
20 the provisions of this Section. Any business enterprise that
21 is granted a tax exemption under this Section shall repay the
22 exempted tax if the business enterprise fails to comply with
23 the terms and conditions of the certificate of eligibility.
24 The business enterprise shall present the certificate of
25 eligibility to its supplier when the enterprise purchases
26 aviation fuel for which an exemption is granted by subsection
27 (b) and a certification by the business enterprise that the
28 aviation fuel is exempt from taxation under this Section.
29 The business enterprise shall also indicate the exempt status
30 of each subsequent purchase of aviation fuel on the face of
31 the purchase order.
32 (b) Subject to the provisions of subsection (a),
33 aviation fuel received for use or consumption in the
34 operation of an air cargo transportation hub facility, as
HB0581 Engrossed -3- LRB9001527DNmbA
1 defined in subsection (a), that locates within an enterprise
2 zone or at any airport in this State that was an active duty
3 U.S. Air Force base with a joint use operating contract
4 within a county with a population between 250,000 and 300,000
5 at the time the contract was made after January 1, 1997,
6 shall be exempt from the tax imposed by this Act for 10
7 years.
8 Section 10. The Service Use Tax Act is amended by adding
9 Section 3-80 as follows:
10 (35 ILCS 110/3-80 new)
11 Sec. 3-80. Air cargo transportation hub facility;
12 exemption.
13 (a) "Air cargo transportation hub facility" means a
14 facility that is operated by an express air courier used
15 primarily for sorting, handling, and redistribution of mail,
16 freight, or other cargo received from agents or employees of
17 the courier for processing at a common location and
18 redistributed to either other employees or agents of the
19 courier for delivery directly to an ultimate destination on
20 an item-by-item basis, and that (i) will make an investment
21 by a business enterprise of $35,000,000 or more in real
22 estate improvements, machinery, or equipment, (ii) will cause
23 the creation of at least 750 jobs in an enterprise zone
24 established under the Illinois Enterprise Zone Act or at any
25 airport in this State that was an active duty U.S. Air Force
26 base with a joint use operating contract within a county with
27 a population between 250,000 and 300,000 at the time the
28 contract was made, and (iii) is certified by the Department
29 of Commerce and Community Affairs as contractually obligated
30 to meet the requirements specified in (i), (ii), and (iii) of
31 this Section within the time period specified in the
32 certificate of eligibility for exemption. Any business
HB0581 Engrossed -4- LRB9001527DNmbA
1 enterprise applying for the exemption stated in subsection
2 (b) shall apply to the Department of Commerce and Community
3 Affairs in the form prescribed by the Department and shall
4 provide any information required by the Department. The
5 Department of Commerce and Community Affairs shall determine,
6 within 60 days after it receives an application for
7 exemption, whether the business enterprise meets the criteria
8 prescribed in this subsection. If the Department determines
9 that the business enterprise meets the criteria, it shall
10 issue a certificate of eligibility for the exemption in
11 subsection (b) to the business enterprise in the form
12 prescribed by the Department of Revenue. The Department of
13 Commerce and Community Affairs shall file with the Department
14 of Revenue a copy of each certificate of eligibility for
15 exemption. If the business enterprise has received a
16 certificate of eligibility for the exemption under Section
17 3-95 of the Use Tax Act, Section 3-60 of the Service
18 Occupation Tax Act, or Section 2-75 of the Retailers'
19 Occupation Tax Act, then the enterprise shall not be required
20 to receive a separate certificate to receive the exemption
21 under this Act. The Department of Commerce and Community
22 Affairs shall have the power to promulgate rules to carry out
23 the provisions of this Section. Any business enterprise that
24 is granted a tax exemption under this Section shall repay the
25 exempted tax if the business enterprise fails to comply with
26 the terms and conditions of the certificate of eligibility.
27 The business enterprise shall present the certificate of
28 eligibility to its supplier when the enterprise purchases
29 aviation fuel for which an exemption is granted by subsection
30 (b) and a certification by the business enterprise that the
31 aviation fuel is exempt from taxation under this Section.
32 The business enterprise shall also indicate the exempt status
33 of each subsequent purchase of aviation fuel on the face of
34 the purchase order.
HB0581 Engrossed -5- LRB9001527DNmbA
1 (b) Subject to the provisions of subsection (a),
2 aviation fuel received for use or consumption in the
3 operation of an air cargo transportation hub facility, as
4 defined in subsection (a), that locates within an enterprise
5 zone or at any airport in this State that was an active duty
6 U.S. Air Force base with a joint use operating contract
7 within a county with a population between 250,000 and 300,000
8 at the time the contract was made after January 1, 1997,
9 shall be exempt from the tax imposed by this Act for 10
10 years.
11 Section 15. The Service Occupation Tax Act is amended by
12 adding Section 3-60 as follows:
13 (35 ILCS 115/3-60 new)
14 Sec. 3-60. Air cargo transportation hub facility;
15 exemption.
16 (a) "Air cargo transportation hub facility" means a
17 facility that is operated by an express air courier used
18 primarily for sorting, handling, and redistribution of mail,
19 freight, or other cargo received from agents or employees of
20 the courier for processing at a common location and
21 redistributed to either other employees or agents of the
22 courier for delivery directly to an ultimate destination on
23 an item-by-item basis, and that (i) will make an investment
24 by a business enterprise of $35,000,000 or more in real
25 estate improvements, machinery, or equipment, (ii) will cause
26 the creation of at least 750 jobs in an enterprise zone
27 established under the Illinois Enterprise Zone Act or at any
28 airport in this State that was an active duty U.S. Air Force
29 base with a joint use operating contract within a county with
30 a population between 250,000 and 300,000 at the time the
31 contract was made, and (iii) is certified by the Department
32 of Commerce and Community Affairs as contractually obligated
HB0581 Engrossed -6- LRB9001527DNmbA
1 to meet the requirements specified in (i), (ii), and (iii) of
2 this Section within the time period specified in the
3 certificate of eligibility for exemption. Any business
4 enterprise applying for the exemption stated in subsection
5 (b) shall apply to the Department of Commerce and Community
6 Affairs in the form prescribed by the Department and shall
7 provide any information required by the Department. The
8 Department of Commerce and Community Affairs shall determine,
9 within 60 days after it receives an application for
10 exemption, whether the business enterprise meets the criteria
11 prescribed in this subsection. If the Department determines
12 that the business enterprise meets the criteria, it shall
13 issue a certificate of eligibility for the exemption in
14 subsection (b) to the business enterprise in the form
15 prescribed by the Department of Revenue. The Department of
16 Commerce and Community Affairs shall file with the Department
17 of Revenue a copy of each certificate of eligibility for
18 exemption. If the business enterprise has received a
19 certificate of eligibility for the exemption under Section
20 3-95 of the Use Tax Act, Section 3-80 of the Service Use Tax
21 Act, or Section 2-75 of the Retailers' Occupation Tax Act,
22 then the enterprise shall not be required to receive a
23 separate certificate to receive the exemption under this Act.
24 The Department of Commerce and Community Affairs shall have
25 the power to promulgate rules to carry out the provisions of
26 this Section. Any business enterprise that is granted a tax
27 exemption under this Section shall repay the exempted tax if
28 the business enterprise fails to comply with the terms and
29 conditions of the certificate of eligibility. The business
30 enterprise shall present the certificate of eligibility to
31 its supplier when the enterprise purchases aviation fuel for
32 which an exemption is granted by subsection (b) and a
33 certification by the business enterprise that the aviation
34 fuel is exempt from taxation under this Section. The
HB0581 Engrossed -7- LRB9001527DNmbA
1 business enterprise shall also indicate the exempt status of
2 each subsequent purchase of aviation fuel on the face of the
3 purchase order.
4 (b) Subject to the provisions of subsection (a),
5 aviation fuel received for use or consumption in the
6 operation of an air cargo transportation hub facility, as
7 defined in subsection (a), that locates within an enterprise
8 zone or at any airport in this State that was an active duty
9 U.S. Air Force base with a joint use operating contract
10 within a county with a population between 250,000 and 300,000
11 at the time the contract was made after January 1, 1997,
12 shall be exempt from the tax imposed by this Act for 10
13 years.
14 Section 20. The Retailers' Occupation Tax Act is amended
15 by adding Section 2-75 as follows:
16 (35 ILCS 120/2-75 new)
17 Sec. 2-75. Air cargo transportation hub facility;
18 exemption.
19 (a) "Air cargo transportation hub facility" means a
20 facility that is operated by an express air courier used
21 primarily for sorting, handling, and redistribution of mail,
22 freight, or other cargo received from agents or employees of
23 the courier for processing at a common location and
24 redistributed to either other employees or agents of the
25 courier for delivery directly to an ultimate destination on
26 an item-by-item basis, and that (i) will make an investment
27 by a business enterprise of $35,000,000 or more in real
28 estate improvements, machinery, or equipment, (ii) will cause
29 the creation of at least 750 jobs in an enterprise zone
30 established under the Illinois Enterprise Zone Act or at any
31 airport in this State that was an active duty U.S. Air Force
32 base with a joint use operating contract within a county with
HB0581 Engrossed -8- LRB9001527DNmbA
1 a population between 250,000 and 300,000 at the time the
2 contract was made, and (iii) is certified by the Department
3 of Commerce and Community Affairs as contractually obligated
4 to meet the requirements specified in (i), (ii), and (iii) of
5 this Section within the time period specified in the
6 certificate of eligibility for exemption. Any business
7 enterprise applying for the exemption stated in subsection
8 (b) shall apply to the Department of Commerce and Community
9 Affairs in the form prescribed by the Department and shall
10 provide any information required by the Department. The
11 Department of Commerce and Community Affairs shall determine,
12 within 60 days after it receives an application for
13 exemption, whether the business enterprise meets the criteria
14 prescribed in this subsection. If the Department determines
15 that the business enterprise meets the criteria, it shall
16 issue a certificate of eligibility for the exemption in
17 subsection (b) to the business enterprise in the form
18 prescribed by the Department of Revenue. The Department of
19 Commerce and Community Affairs shall file with the Department
20 of Revenue a copy of each certificate of eligibility for
21 exemption. If the business enterprise has received a
22 certificate of eligibility for the exemption under Section
23 3-95 of the Use Tax Act, Section 3-80 of the Service Use Tax
24 Act, or Section 3-60 of the Service Occupation Tax Act, then
25 the enterprise shall not be required to receive a separate
26 certificate to receive the exemption under this Act. The
27 Department of Commerce and Community Affairs shall have the
28 power to promulgate rules to carry out the provisions of this
29 Section. Any business enterprise that is granted a tax
30 exemption under this Section shall repay the exempted tax if
31 the business enterprise fails to comply with the terms and
32 conditions of the certificate of eligibility. The business
33 enterprise shall present the certificate of eligibility to
34 its supplier when the enterprise purchases aviation fuel for
HB0581 Engrossed -9- LRB9001527DNmbA
1 which an exemption is granted by subsection (b) and a
2 certification by the business enterprise that the aviation
3 fuel is exempt from taxation under this Section. The
4 business enterprise shall also indicate the exempt status of
5 each subsequent purchase of aviation fuel on the face of the
6 purchase order.
7 (b) Subject to the provisions of subsection (a),
8 aviation fuel received for use or consumption in the
9 operation of an air cargo transportation hub facility, as
10 defined in subsection (a), that locates within an enterprise
11 zone or at any airport in this State that was an active duty
12 U.S. Air Force base with a joint use operating contract
13 within a county with a population between 250,000 and 300,000
14 at the time the contract was made after January 1, 1997,
15 shall be exempt from the tax imposed by this Act for 10
16 years.
17 Section 99. Effective date. This Act takes effect upon
18 becoming law.