State of Illinois
91st General Assembly
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Public Act 91-0587

SB468 Enrolled                                 LRB9102958PTmb

    AN ACT in relation to rolling stock, amending named Acts.

    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 3-55 and adding Section 3-61 as follows:

    (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
    Sec. 3-55.  Multistate exemption.  To prevent  actual  or
likely  multistate taxation, The tax imposed by this Act does
not apply to the use of tangible personal  property  in  this
State under the following circumstances:
    (a)  The   use,  in  this  State,  of  tangible  personal
property  acquired  outside  this  State  by  a   nonresident
individual  and brought into this State by the individual for
his or her own use while temporarily  within  this  State  or
while passing through this State.
    (b)  The   use,  in  this  State,  of  tangible  personal
property by an interstate carrier for hire as  rolling  stock
moving  in interstate commerce or by lessors under a lease of
one year or longer executed or  in  effect  at  the  time  of
purchase of tangible personal property by interstate carriers
for-hire  for  use  as  rolling  stock  moving  in interstate
commerce as long  as  so  used  by  the  interstate  carriers
for-hire,  and  equipment  operated  by  a telecommunications
provider,  licensed  as  a  common  carrier  by  the  Federal
Communications Commission, which is permanently installed  in
or affixed to aircraft moving in interstate commerce.
    (c)  The  use,  in  this  State,  by  owners, lessors, or
shippers of tangible personal property that  is  utilized  by
interstate  carriers for hire for use as rolling stock moving
in interstate commerce as long as so used by  the  interstate
carriers    for   hire,   and   equipment   operated   by   a
telecommunications provider, licensed as a common carrier  by
the  Federal  Communications Commission, which is permanently
installed in or affixed  to  aircraft  moving  in  interstate
commerce.
    (d)  The   use,  in  this  State,  of  tangible  personal
property that is acquired outside this State and caused to be
brought into this State by a person who has  already  paid  a
tax in another State in respect to the sale, purchase, or use
of  that  property,  to  the  extent of the amount of the tax
properly due and paid in the other State.
    (e)  The temporary storage, in this  State,  of  tangible
personal  property  that  is  acquired outside this State and
that, after being brought into this  State  and  stored  here
temporarily,   is  used  solely  outside  this  State  or  is
physically attached to or incorporated  into  other  tangible
personal  property that is used solely outside this State, or
is  altered  by   converting,   fabricating,   manufacturing,
printing,  processing,  or  shaping, and, as altered, is used
solely outside this State.
    (f)  The temporary storage  in  this  State  of  building
materials and fixtures that are acquired either in this State
or  outside  this State by an Illinois registered combination
retailer and construction contractor, and that the  purchaser
thereafter  uses  outside  this  State  by incorporating that
property into real estate located outside this State.
    (g)  The use or purchase of tangible personal property by
a common carrier by rail or motor that receives the  physical
possession  of  the property in Illinois, and that transports
the property, or shares with another common  carrier  in  the
transportation of the property, out of Illinois on a standard
uniform  bill of lading showing the seller of the property as
the shipper or consignor of the  property  to  a  destination
outside Illinois, for use outside Illinois.
    (h)  The  use, in this State, of a motor vehicle that was
sold in this State to a nonresident, even  though  the  motor
vehicle is delivered to the nonresident in this State, if the
motor  vehicle  is  not  to be titled in this State, and if a
driveaway decal permit is issued  to  the  motor  vehicle  as
provided  in Section 3-603 of the Illinois Vehicle Code or if
the nonresident purchaser has vehicle registration plates  to
transfer  to  the  motor vehicle upon returning to his or her
home state.  The issuance of the driveaway  decal  permit  or
having the out-of-state registration plates to be transferred
shall be prima facie evidence that the motor vehicle will not
be titled in this State.
(Source: P.A. 90-519, eff. 6-1-98; 90-552, eff. 12-12-97.)

    (35 ILCS 105/3-61 new)
    Sec.  3-61.   Use  as  rolling stock definition.  "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.

    Section  10.   The  Service  Use  Tax  Act  is amended by
changing Section 3-45 and adding Section 3-51 as follows:

    (35 ILCS 110/3-45) (from Ch. 120, par. 439.33-45)
    Sec. 3-45.  Multistate exemption.  To prevent  actual  or
likely  multistate taxation, The tax imposed by this Act does
not apply to the use of tangible personal  property  in  this
State under the following circumstances:
    (a)  The use, in this State, of property acquired outside
this  State by a nonresident individual and brought into this
State by  the  individual  for  his  or  her  own  use  while
temporarily  within  this State or while passing through this
State.
    (b)  The use, in this State, of property that is acquired
outside this State and that is moved into this State for  use
as rolling stock moving in interstate commerce.
    (c)  The use, in this State, of property that is acquired
outside  this  State and caused to be brought into this State
by a person who has already paid a tax in  another  state  in
respect  to  the  sale, purchase, or use of that property, to
the extent of the amount of the tax properly due and paid  in
the other state.
    (d)  The  temporary  storage,  in this State, of property
that is acquired outside this  State  and  that  after  being
brought  into this State and stored here temporarily, is used
solely outside this State or is  physically  attached  to  or
incorporated  into other property that is used solely outside
this  State,  or  is  altered  by  converting,   fabricating,
manufacturing,  printing,  processing,  or  shaping,  and, as
altered, is used solely outside this State.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905;  86-928;
86-1028; 86-1475.)

    (35 ILCS 110/3-51 new)
    Sec.  3-51.   Use  as  rolling stock definition.  "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.

    Section 15.  The Service Occupation Tax Act is amended by
adding Section 2d as follows:

    (35 ILCS 115/2d new)
    Sec. 2d.  Use  as  rolling  stock  definition.   "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.

    Section 20.  The Retailers' Occupation Tax Act is amended
by adding Section 2-51 as follows:

    (35 ILCS 120/2-51 new)
    Sec.  2-51.   Use  as  rolling stock definition.  "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.

    Section  99.  Effective date.  This Act takes effect upon
becoming law.


                            _________________________________
                            President of the Senate


                            _________________________________
                            Speaker, House of Representatives

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