Public Act 095-0528
 
HB0811 Enrolled LRB095 10788 BDD 31032 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Use Tax Act is amended by changing Section
3-61 as follows:
 
    (35 ILCS 105/3-61)
    Sec. 3-61. Motor vehicles; trailers; use as rolling stock
definition.
    (a) Through June 30, 2003, "use as rolling stock moving in
interstate commerce" in subsections (b) and (c) of Section 3-55
means for motor vehicles, as defined in Section 1-146 of the
Illinois Vehicle Code, and trailers, as defined in Section
1-209 of the Illinois Vehicle Code, when on 15 or more
occasions in a 12-month period the motor vehicle and trailer
has carried persons or property for hire in interstate
commerce, even just between points in Illinois, if the motor
vehicle and trailer transports persons whose journeys or
property whose shipments originate or terminate outside
Illinois. This definition applies to all property purchased for
the purpose of being attached to those motor vehicles or
trailers as a part thereof.
    (b) On and after July 1, 2003 and through June 30, 2004,
"use as rolling stock moving in interstate commerce" in
paragraphs (b) and (c) of Section 3-55 occurs for motor
vehicles, as defined in Section 1-146 of the Illinois Vehicle
Code, when during a 12-month period the rolling stock has
carried persons or property for hire in interstate commerce for
51% of its total trips and transports persons whose journeys or
property whose shipments originate or terminate outside
Illinois. Trips that are only between points in Illinois shall
not be counted as interstate trips when calculating whether the
tangible personal property qualifies for the exemption but such
trips shall be included in total trips taken.
    (c) Beginning July 1, 2004, "use as rolling stock moving in
interstate commerce" in paragraphs (b) and (c) of Section 3-55
occurs for motor vehicles, as defined in Section 1-146 of the
Illinois Vehicle Code, when during a 12-month period the
rolling stock has carried persons or property for hire in
interstate commerce for greater than 50% of its total trips for
that period or for greater than 50% of its total miles for that
period. The person claiming the exemption shall make an
election at the time of purchase to use either the trips or
mileage method. Persons who purchased motor vehicles prior to
July 1, 2004 shall make an election to use either the trips or
mileage method and document that election in their books and
records. If no election is made under this subsection to use
the trips or mileage method, the person shall be deemed to have
chosen the mileage method. Any election to use either the trips
or mileage method will remain in effect for that motor vehicle
for any period for which the Department may issue a notice of
tax liability under this Act.
    For purposes of determining qualifying trips or miles,
motor vehicles that carry persons or property for hire, even
just between points in Illinois, will be considered used for
hire in interstate commerce if the motor vehicle transports
persons whose journeys or property whose shipments originate or
terminate outside Illinois. The exemption for motor vehicles
used as rolling stock moving in interstate commerce may be
claimed only for the following vehicles: (i) motor vehicles
whose gross vehicle weight rating exceeds 16,000 pounds; and
(ii) limousines, as defined in Section 1-139.1 of the Illinois
Vehicle Code. This definition applies to all property purchased
for the purpose of being attached to those motor vehicles as a
part thereof.
    (d) Beginning July 1, 2004, "use as rolling stock moving in
interstate commerce" in paragraphs (b) and (c) of Section 3-55
occurs for trailers, as defined in Section 1-209 of the
Illinois Vehicle Code, semitrailers as defined in Section 1-187
of the Illinois Vehicle Code, and pole trailers as defined in
Section 1-161 of the Illinois Vehicle Code, when during a
12-month period the rolling stock has carried persons or
property for hire in interstate commerce for greater than 50%
of its total trips for that period or for greater than 50% of
its total miles for that period. The person claiming the
exemption for a trailer or trailers that will not be dedicated
to a motor vehicle or group of motor vehicles shall make an
election at the time of purchase to use either the trips or
mileage method. Persons who purchased trailers prior to July 1,
2004 that are not dedicated to a motor vehicle or group of
motor vehicles shall make an election to use either the trips
or mileage method and document that election in their books and
records. If no election is made under this subsection to use
the trips or mileage method, the person shall be deemed to have
chosen the mileage method. Any election to use either the trips
or mileage method will remain in effect for that trailer for
any period for which the Department may issue a notice of tax
liability under this Act.
    For purposes of determining qualifying trips or miles,
trailers, semitrailers, or pole trailers that carry property
for hire, even just between points in Illinois, will be
considered used for hire in interstate commerce if the
trailers, semitrailers, or pole trailers transport property
whose shipments originate or terminate outside Illinois. This
definition applies to all property purchased for the purpose of
being attached to those trailers, semitrailers, or pole
trailers as a part thereof. In lieu of a person providing
documentation regarding the qualifying use of each individual
trailer, semitrailer, or pole trailer, that person may document
such qualifying use by providing documentation of the
following:
        (1) If a trailer, semitrailer, or pole trailer is
    dedicated to a motor vehicle that qualifies as rolling
    stock moving in interstate commerce under subsection (c) of
    this Section, then that trailer, semitrailer, or pole
    trailer qualifies as rolling stock moving in interstate
    commerce under this subsection.
        (2) If a trailer, semitrailer, or pole trailer is
    dedicated to a group of motor vehicles that all qualify as
    rolling stock moving in interstate commerce under
    subsection (c) of this Section, then that trailer,
    semitrailer, or pole trailer qualifies as rolling stock
    moving in interstate commerce under this subsection.
        (3) If one or more trailers, semitrailers, or pole
    trailers are dedicated to a group of motor vehicles and not
    all of those motor vehicles in that group qualify as
    rolling stock moving in interstate commerce under
    subsection (c) of this Section, then the percentage of
    those trailers, semitrailers, or pole trailers that
    qualifies as rolling stock moving in interstate commerce
    under this subsection is equal to the percentage of those
    motor vehicles in that group that qualify as rolling stock
    moving in interstate commerce under subsection (c) of this
    Section to which those trailers, semitrailers, or pole
    trailers are dedicated. However, to determine the
    qualification for the exemption provided under this item
    (3), the mathematical application of the qualifying
    percentage to one or more trailers, semitrailers, or pole
    trailers under this subpart shall not be allowed as to any
    fraction of a trailer, semitrailer, or pole trailer.
(Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
 
    Section 10. The Service Use Tax Act is amended by changing
Section 3-51 as follows:
 
    (35 ILCS 110/3-51)
    Sec. 3-51. Motor vehicles; trailers; use as rolling stock
definition.
    (a) Through June 30, 2003, "use as rolling stock moving in
interstate commerce" in subsection (b) of Section 3-45 means
for motor vehicles, as defined in Section 1-46 of the Illinois
Vehicle Code, and trailers, as defined in Section 1-209 of the
Illinois Vehicle Code, when on 15 or more occasions in a
12-month period the motor vehicle and trailer has carried
persons or property for hire in interstate commerce, even just
between points in Illinois, if the motor vehicle and trailer
transports persons whose journeys or property whose shipments
originate or terminate outside Illinois. This definition
applies to all property purchased for the purpose of being
attached to those motor vehicles or trailers as a part thereof.
    (b) On and after July 1, 2003 and through June 30, 2004,
"use as rolling stock moving in interstate commerce" in
paragraphs (4) and (4a) of the definition of "sale of service"
in Section 2 and subsection (b) of Section 3-45 occurs for
motor vehicles, as defined in Section 1-146 of the Illinois
Vehicle Code, when during a 12-month period the rolling stock
has carried persons or property for hire in interstate commerce
for 51% of its total trips and transports persons whose
journeys or property whose shipments originate or terminate
outside Illinois. Trips that are only between points in
Illinois shall not be counted as interstate trips when
calculating whether the tangible personal property qualifies
for the exemption but such trips shall be included in total
trips taken.
    (c) Beginning July 1, 2004, "use as rolling stock moving in
interstate commerce" in paragraphs (4) and (4a) of the
definition of "sale of service" in Section 2 and subsection (b)
of Section 3-45 occurs for motor vehicles, as defined in
Section 1-146 of the Illinois Vehicle Code, when during a
12-month period the rolling stock has carried persons or
property for hire in interstate commerce for greater than 50%
of its total trips for that period or for greater than 50% of
its total miles for that period. The person claiming the
exemption shall make an election at the time of purchase to use
either the trips or mileage method. Persons who purchased motor
vehicles prior to July 1, 2004 shall make an election to use
either the trips or mileage method and document that election
in their books and records. If no election is made under this
subsection to use the trips or mileage method, the person shall
be deemed to have chosen the mileage method. Any election to
use either the trips or mileage method will remain in effect
for that motor vehicle for any period for which the Department
may issue a notice of tax liability under this Act.
    For purposes of determining qualifying trips or miles,
motor vehicles that carry persons or property for hire, even
just between points in Illinois, will be considered used for
hire in interstate commerce if the motor vehicle transports
persons whose journeys or property whose shipments originate or
terminate outside Illinois. The exemption for motor vehicles
used as rolling stock moving in interstate commerce may be
claimed only for the following vehicles: (i) motor vehicles
whose gross vehicle weight rating exceeds 16,000 pounds; and
(ii) limousines, as defined in Section 1-139.1 of the Illinois
Vehicle Code. This definition applies to all property purchased
for the purpose of being attached to those motor vehicles as a
part thereof.
    (d) Beginning July 1, 2004, "use as rolling stock moving in
interstate commerce" in paragraphs (4) and (4a) of the
definition of "sale of service" in Section 2 and subsection (b)
of Section 3-45 occurs for trailers, as defined in Section
1-209 of the Illinois Vehicle Code, semitrailers as defined in
Section 1-187 of the Illinois Vehicle Code, and pole trailers
as defined in Section 1-161 of the Illinois Vehicle Code, when
during a 12-month period the rolling stock has carried persons
or property for hire in interstate commerce for greater than
50% of its total trips for that period or for greater than 50%
of its total miles for that period. The person claiming the
exemption for a trailer or trailers that will not be dedicated
to a motor vehicle or group of motor vehicles shall make an
election at the time of purchase to use either the trips or
mileage method. Persons who purchased trailers prior to July 1,
2004 that are not dedicated to a motor vehicle or group of
motor vehicles shall make an election to use either the trips
or mileage method and document that election in their books and
records. If no election is made under this subsection to use
the trips or mileage method, the person shall be deemed to have
chosen the mileage method. Any election to use either the trips
or mileage method will remain in effect for that trailer for
any period for which the Department may issue a notice of tax
liability under this Act.
    For purposes of determining qualifying trips or miles,
trailers, semitrailers, or pole trailers that carry property
for hire, even just between points in Illinois, will be
considered used for hire in interstate commerce if the
trailers, semitrailers, or pole trailers transport property
whose shipments originate or terminate outside Illinois. This
definition applies to all property purchased for the purpose of
being attached to those trailers, semitrailers, or pole
trailers as a part thereof. In lieu of a person providing
documentation regarding the qualifying use of each individual
trailer, semitrailer, or pole trailer, that person may document
such qualifying use by providing documentation of the
following:
        (1) If a trailer, semitrailer, or pole trailer is
    dedicated to a motor vehicle that qualifies as rolling
    stock moving in interstate commerce under subsection (c) of
    this Section, then that trailer, semitrailer, or pole
    trailer qualifies as rolling stock moving in interstate
    commerce under this subsection.
        (2) If a trailer, semitrailer, or pole trailer is
    dedicated to a group of motor vehicles that all qualify as
    rolling stock moving in interstate commerce under
    subsection (c) of this Section, then that trailer,
    semitrailer, or pole trailer qualifies as rolling stock
    moving in interstate commerce under this subsection.
        (3) If one or more trailers, semitrailers, or pole
    trailers are dedicated to a group of motor vehicles and not
    all of those motor vehicles in that group qualify as
    rolling stock moving in interstate commerce under
    subsection (c) of this Section, then the percentage of
    those trailers, semitrailers, or pole trailers that
    qualifies as rolling stock moving in interstate commerce
    under this subsection is equal to the percentage of those
    motor vehicles in that group that qualify as rolling stock
    moving in interstate commerce under subsection (c) of this
    Section to which those trailers, semitrailers, or pole
    trailers are dedicated. However, to determine the
    qualification for the exemption provided under this item
    (3), the mathematical application of the qualifying
    percentage to one or more trailers, semitrailers, or pole
    trailers under this subpart shall not be allowed as to any
    fraction of a trailer, semitrailer, or pole trailer.
(Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
 
    Section 15. The Service Occupation Tax Act is amended by
changing Section 2d as follows:
 
    (35 ILCS 115/2d)
    Sec. 2d. Motor vehicles; trailers; use as rolling stock
definition.
    (a) Through June 30, 2003, "use as rolling stock moving in
interstate commerce" in subsections (d) and (d-1) of the
definition of "sale of service" in Section 2 means for motor
vehicles, as defined in Section 1-146 of the Illinois Vehicle
Code, and trailers, as defined in Section 1-209 of the Illinois
Vehicle Code, when on 15 or more occasions in a 12-month period
the motor vehicle and trailer has carried persons or property
for hire in interstate commerce, even just between points in
Illinois, if the motor vehicle and trailer transports persons
whose journeys or property whose shipments originate or
terminate outside Illinois. This definition applies to all
property purchased for the purpose of being attached to those
motor vehicles or trailers as a part thereof.
    (b) On and after July 1, 2003 and through June 30, 2004,
"use as rolling stock moving in interstate commerce" in
paragraphs (d) and (d-1) of the definition of "sale of service"
in Section 2 occurs for motor vehicles, as defined in Section
1-146 of the Illinois Vehicle Code, when during a 12-month
period the rolling stock has carried persons or property for
hire in interstate commerce for 51% of its total trips and
transports persons whose journeys or property whose shipments
originate or terminate outside Illinois. Trips that are only
between points in Illinois will not be counted as interstate
trips when calculating whether the tangible personal property
qualifies for the exemption but such trips will be included in
total trips taken.
    (c) Beginning July 1, 2004, "use as rolling stock moving in
interstate commerce" in paragraphs (d) and (d-1) of the
definition of "sale of service" in Section 2 occurs for motor
vehicles, as defined in Section 1-146 of the Illinois Vehicle
Code, when during a 12-month period the rolling stock has
carried persons or property for hire in interstate commerce for
greater than 50% of its total trips for that period or for
greater than 50% of its total miles for that period. The person
claiming the exemption shall make an election at the time of
purchase to use either the trips or mileage method. Persons who
purchased motor vehicles prior to July 1, 2004 shall make an
election to use either the trips or mileage method and document
that election in their books and records. If no election is
made under this subsection to use the trips or mileage method,
the person shall be deemed to have chosen the mileage method.
Any election to use either the trips or mileage method will
remain in effect for that motor vehicle for any period for
which the Department may issue a notice of tax liability under
this Act.
    For purposes of determining qualifying trips or miles,
motor vehicles that carry persons or property for hire, even
just between points in Illinois, will be considered used for
hire in interstate commerce if the motor vehicle transports
persons whose journeys or property whose shipments originate or
terminate outside Illinois. The exemption for motor vehicles
used as rolling stock moving in interstate commerce may be
claimed only for the following vehicles: (i) motor vehicles
whose gross vehicle weight rating exceeds 16,000 pounds; and
(ii) limousines, as defined in Section 1-139.1 of the Illinois
Vehicle Code. This definition applies to all property purchased
for the purpose of being attached to those motor vehicles as a
part thereof.
    (d) Beginning July 1, 2004, "use as rolling stock moving in
interstate commerce" in paragraphs (d) and (d-1) of the
definition of "sale of service" in Section 2 occurs for
trailers, as defined in Section 1-209 of the Illinois Vehicle
Code, semitrailers as defined in Section 1-187 of the Illinois
Vehicle Code, and pole trailers as defined in Section 1-161 of
the Illinois Vehicle Code, when during a 12-month period the
rolling stock has carried persons or property for hire in
interstate commerce for greater than 50% of its total trips for
that period or for greater than 50% of its total miles for that
period. The person claiming the exemption for a trailer or
trailers that will not be dedicated to a motor vehicle or group
of motor vehicles shall make an election at the time of
purchase to use either the trips or mileage method. Persons who
purchased trailers prior to July 1, 2004 that are not dedicated
to a motor vehicle or group of motor vehicles shall make an
election to use either the trips or mileage method and document
that election in their books and records. If no election is
made under this subsection to use the trips or mileage method,
the person shall be deemed to have chosen the mileage method.
Any election to use either the trips or mileage method will
remain in effect for that trailer for any period for which the
Department may issue a notice of tax liability under this Act.
    For purposes of determining qualifying trips or miles,
trailers, semitrailers, or pole trailers that carry property
for hire, even just between points in Illinois, will be
considered used for hire in interstate commerce if the
trailers, semitrailers, or pole trailers transport property
whose shipments originate or terminate outside Illinois. This
definition applies to all property purchased for the purpose of
being attached to those trailers, semitrailers, or pole
trailers as a part thereof. In lieu of a person providing
documentation regarding the qualifying use of each individual
trailer, semitrailer, or pole trailer, that person may document
such qualifying use by providing documentation of the
following:
        (1) If a trailer, semitrailer, or pole trailer is
    dedicated to a motor vehicle that qualifies as rolling
    stock moving in interstate commerce under subsection (c) of
    this Section, then that trailer, semitrailer, or pole
    trailer qualifies as rolling stock moving in interstate
    commerce under this subsection.
        (2) If a trailer, semitrailer, or pole trailer is
    dedicated to a group of motor vehicles that all qualify as
    rolling stock moving in interstate commerce under
    subsection (c) of this Section, then that trailer,
    semitrailer, or pole trailer qualifies as rolling stock
    moving in interstate commerce under this subsection.
        (3) If one or more trailers, semitrailers, or pole
    trailers are dedicated to a group of motor vehicles and not
    all of those motor vehicles in that group qualify as
    rolling stock moving in interstate commerce under
    subsection (c) of this Section, then the percentage of
    those trailers, semitrailers, or pole trailers that
    qualifies as rolling stock moving in interstate commerce
    under this subsection is equal to the percentage of those
    motor vehicles in that group that qualify as rolling stock
    moving in interstate commerce under subsection (c) of this
    Section to which those trailers, semitrailers, or pole
    trailers are dedicated. However, to determine the
    qualification for the exemption provided under this item
    (3), the mathematical application of the qualifying
    percentage to one or more trailers, semitrailers, or pole
    trailers under this subpart shall not be allowed as to any
    fraction of a trailer, semitrailer, or pole trailer.
(Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
 
    Section 20. The Retailers' Occupation Tax Act is amended by
changing Section 2-51 as follows:
 
    (35 ILCS 120/2-51)
    Sec. 2-51. Motor vehicles; trailers; use as rolling stock
definition.
    (a) Through June 30, 2003, "use as rolling stock moving in
interstate commerce" in paragraphs (12) and (13) of Section 2-5
means for motor vehicles, as defined in Section 1-146 of the
Illinois Vehicle Code, and trailers, as defined in Section
1-209 of the Illinois Vehicle Code, when on 15 or more
occasions in a 12-month period the motor vehicle and trailer
has carried persons or property for hire in interstate
commerce, even just between points in Illinois, if the motor
vehicle and trailer transports persons whose journeys or
property whose shipments originate or terminate outside
Illinois. This definition applies to all property purchased for
the purpose of being attached to those motor vehicles or
trailers as a part thereof.
    (b) On and after July 1, 2003 and through June 30, 2004,
"use as rolling stock moving in interstate commerce" in
paragraphs (12) and (13) of Section 2-5 occurs for motor
vehicles, as defined in Section 1-146 of the Illinois Vehicle
Code, when during a 12-month period the rolling stock has
carried persons or property for hire in interstate commerce for
51% of its total trips and transports persons whose journeys or
property whose shipments originate or terminate outside
Illinois. Trips that are only between points in Illinois shall
not be counted as interstate trips when calculating whether the
tangible personal property qualifies for the exemption but such
trips shall be included in total trips taken.
    (c) Beginning July 1, 2004, "use as rolling stock moving in
interstate commerce" in paragraphs (12) and (13) of Section 2-5
occurs for motor vehicles, as defined in Section 1-146 of the
Illinois Vehicle Code, when during a 12-month period the
rolling stock has carried persons or property for hire in
interstate commerce for greater than 50% of its total trips for
that period or for greater than 50% of its total miles for that
period. The person claiming the exemption shall make an
election at the time of purchase to use either the trips or
mileage method. Persons who purchased motor vehicles prior to
July 1, 2004 shall make an election to use either the trips or
mileage method and document that election in their books and
records. If no election is made under this subsection to use
the trips or mileage method, the person shall be deemed to have
chosen the mileage method. Any election to use either the trips
or mileage method will remain in effect for that motor vehicle
for any period for which the Department may issue a notice of
tax liability under this Act.
    For purposes of determining qualifying trips or miles,
motor vehicles that carry persons or property for hire, even
just between points in Illinois, will be considered used for
hire in interstate commerce if the motor vehicle transports
persons whose journeys or property whose shipments originate or
terminate outside Illinois. The exemption for motor vehicles
used as rolling stock moving in interstate commerce may be
claimed only for the following vehicles: (i) motor vehicles
whose gross vehicle weight rating exceeds 16,000 pounds; and
(ii) limousines, as defined in Section 1-139.1 of the Illinois
Vehicle Code. This definition applies to all property purchased
for the purpose of being attached to those motor vehicles as a
part thereof.
    (d) Beginning July 1, 2004, "use as rolling stock moving in
interstate commerce" in paragraphs (12) and (13) of Section 2-5
occurs for trailers, as defined in Section 1-209 of the
Illinois Vehicle Code, semitrailers as defined in Section 1-187
of the Illinois Vehicle Code, and pole trailers as defined in
Section 1-161 of the Illinois Vehicle Code, when during a
12-month period the rolling stock has carried persons or
property for hire in interstate commerce for greater than 50%
of its total trips for that period or for greater than 50% of
its total miles for that period. The person claiming the
exemption for a trailer or trailers that will not be dedicated
to a motor vehicle or group of motor vehicles shall make an
election at the time of purchase to use either the trips or
mileage method. Persons who purchased trailers prior to July 1,
2004 that are not dedicated to a motor vehicle or group of
motor vehicles shall make an election to use either the trips
or mileage method and document that election in their books and
records. If no election is made under this subsection to use
the trips or mileage method, the person shall be deemed to have
chosen the mileage method. Any election to use either the trips
or mileage method will remain in effect for that trailer for
any period for which the Department may issue a notice of tax
liability under this Act.
    For purposes of determining qualifying trips or miles,
trailers, semitrailers, or pole trailers that carry property
for hire, even just between points in Illinois, will be
considered used for hire in interstate commerce if the
trailers, semitrailers, or pole trailers transport property
whose shipments originate or terminate outside Illinois. This
definition applies to all property purchased for the purpose of
being attached to those trailers, semitrailers, or pole
trailers as a part thereof. In lieu of a person providing
documentation regarding the qualifying use of each individual
trailer, semitrailer, or pole trailer, that person may document
such qualifying use by providing documentation of the
following:
        (1) If a trailer, semitrailer, or pole trailer is
    dedicated to a motor vehicle that qualifies as rolling
    stock moving in interstate commerce under subsection (c) of
    this Section, then that trailer, semitrailer, or pole
    trailer qualifies as rolling stock moving in interstate
    commerce under this subsection.
        (2) If a trailer, semitrailer, or pole trailer is
    dedicated to a group of motor vehicles that all qualify as
    rolling stock moving in interstate commerce under
    subsection (c) of this Section, then that trailer,
    semitrailer, or pole trailer qualifies as rolling stock
    moving in interstate commerce under this subsection.
        (3) If one or more trailers, semitrailers, or pole
    trailers are dedicated to a group of motor vehicles and not
    all of those motor vehicles in that group qualify as
    rolling stock moving in interstate commerce under
    subsection (c) of this Section, then the percentage of
    those trailers, semitrailers, or pole trailers that
    qualifies as rolling stock moving in interstate commerce
    under this subsection is equal to the percentage of those
    motor vehicles in that group that qualify as rolling stock
    moving in interstate commerce under subsection (c) of this
    Section to which those trailers, semitrailers, or pole
    trailers are dedicated. However, to determine the
    qualification for the exemption provided under this item
    (3), the mathematical application of the qualifying
    percentage to one or more trailers, semitrailers, or pole
    trailers under this subpart shall not be allowed as to any
    fraction of a trailer, semitrailer, or pole trailer.
(Source: P.A. 93-23, eff. 6-20-03; 93-1033, eff. 9-3-04.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.