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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Use Tax Act is amended by changing Sections | ||||||
5 | 3-55, 3-61, and 10 as follows:
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6 | (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
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7 | Sec. 3-55. Multistate exemption. To prevent actual or | ||||||
8 | likely multistate taxation, the tax imposed by this
Act
does | ||||||
9 | not apply to the use of
tangible personal property in this | ||||||
10 | State under the following circumstances:
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11 | (a) The use, in this State, of tangible personal property | ||||||
12 | acquired
outside this State by a nonresident individual and | ||||||
13 | brought into this
State by the individual for his or her own | ||||||
14 | use while temporarily within
this State or while passing | ||||||
15 | through this State.
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16 | (b) (Blank). The use, in this State, of tangible personal
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17 | property by an
interstate carrier for hire as rolling stock | ||||||
18 | moving in interstate
commerce or by lessors under a lease of | ||||||
19 | one year or longer executed or
in effect at the time of | ||||||
20 | purchase of tangible personal property by
interstate carriers | ||||||
21 | for-hire for use as rolling stock moving in interstate
commerce | ||||||
22 | as long as so used by the interstate carriers for-hire, and | ||||||
23 | equipment
operated by a telecommunications provider, licensed |
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1 | as a common carrier by the
Federal Communications Commission, | ||||||
2 | which is permanently installed in or affixed
to aircraft moving | ||||||
3 | in interstate commerce.
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4 | (c) The use, in this State, by owners, lessors,
or
shippers
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5 | of tangible personal property that is utilized by interstate | ||||||
6 | carriers
for hire for use as rolling stock moving in interstate | ||||||
7 | commerce as
long as so used by the interstate carriers for | ||||||
8 | hire, and equipment
operated by a telecommunications provider, | ||||||
9 | licensed as a common carrier by the
Federal Communications | ||||||
10 | Commission, which is permanently installed in or affixed
to | ||||||
11 | aircraft moving in interstate commerce.
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12 | (d) The use, in this State, of tangible personal property | ||||||
13 | that is
acquired outside this State and caused to be brought | ||||||
14 | into this State by
a person who has already paid a tax in | ||||||
15 | another State in respect to the
sale, purchase, or use of that | ||||||
16 | property, to the extent of the amount of
the tax properly due | ||||||
17 | and paid in the other State.
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18 | (e) The temporary storage, in this State, of tangible | ||||||
19 | personal
property that is acquired outside this State and that, | ||||||
20 | after
being brought into this State and stored here | ||||||
21 | temporarily, is used
solely outside this State or is physically | ||||||
22 | attached to or incorporated
into other tangible personal | ||||||
23 | property that is used solely outside this
State, or is altered | ||||||
24 | by converting, fabricating, manufacturing, printing,
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25 | processing, or shaping, and, as altered, is used solely outside | ||||||
26 | this State.
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1 | (f) The temporary storage in this State of building | ||||||
2 | materials and
fixtures that are acquired either in this State | ||||||
3 | or outside this State
by an Illinois registered combination | ||||||
4 | retailer and construction contractor, and
that the purchaser | ||||||
5 | thereafter uses outside this State by incorporating that
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6 | property into real estate located outside this State.
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7 | (g) The use or purchase of tangible personal property by a | ||||||
8 | common carrier
by rail or motor that receives the physical | ||||||
9 | possession of the property in
Illinois, and
that transports the | ||||||
10 | property, or shares with another common carrier in the
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11 | transportation of the property, out of Illinois on a standard | ||||||
12 | uniform bill of
lading showing the seller of the property as | ||||||
13 | the shipper or consignor of the
property to a destination | ||||||
14 | outside Illinois, for use outside Illinois.
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15 | (h) Except as provided in subsection (h-1), the use, in | ||||||
16 | this State, of a motor vehicle that was sold in
this State to a | ||||||
17 | nonresident, even though the motor vehicle is
delivered to the | ||||||
18 | nonresident in this State, if the motor vehicle
is not to be | ||||||
19 | titled in this State, and if a
drive-away permit is issued to | ||||||
20 | the motor vehicle as
provided in Section 3-603 of the Illinois | ||||||
21 | Vehicle Code or if the
nonresident purchaser has vehicle | ||||||
22 | registration plates to transfer
to the motor vehicle upon | ||||||
23 | returning to his or her home state.
The issuance of the | ||||||
24 | drive-away permit or having the
out-of-state
registration | ||||||
25 | plates to be transferred shall be prima facie evidence
that the | ||||||
26 | motor vehicle will not be titled in this State.
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1 | (h-1) The exemption under subsection (h) does not apply if | ||||||
2 | the state in which the motor vehicle will be titled does not | ||||||
3 | allow a reciprocal exemption for the use in that state of a | ||||||
4 | motor vehicle sold and delivered in that state to an Illinois | ||||||
5 | resident but titled in Illinois. The tax collected under this | ||||||
6 | Act on the sale of a motor vehicle in this State to a resident | ||||||
7 | of another state that does not allow a reciprocal exemption | ||||||
8 | shall be imposed at a rate equal to the state's rate of tax on | ||||||
9 | taxable property in the state in which the purchaser is a | ||||||
10 | resident, except that the tax shall not exceed the tax that | ||||||
11 | would otherwise be imposed under this Act. At the time of the | ||||||
12 | sale, the purchaser shall execute a statement, signed under | ||||||
13 | penalty of perjury, of his or her intent to title the vehicle | ||||||
14 | in the state in which the purchaser is a resident within 30 | ||||||
15 | days after the sale and of the fact of the payment to the State | ||||||
16 | of Illinois of tax in an amount equivalent to the state's rate | ||||||
17 | of tax on taxable property in his or her state of residence and | ||||||
18 | shall submit the statement to the appropriate tax collection | ||||||
19 | agency in his or her state of residence. In addition, the | ||||||
20 | retailer must retain a signed copy of the statement in his or | ||||||
21 | her records. Nothing in this subsection shall be construed to | ||||||
22 | require the removal of the vehicle from this state following | ||||||
23 | the filing of an intent to title the vehicle in the purchaser's | ||||||
24 | state of residence if the purchaser titles the vehicle in his | ||||||
25 | or her state of residence within 30 days after the date of | ||||||
26 | sale. The tax collected under this Act in accordance with this |
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1 | subsection (h-1) shall be proportionately distributed as if the | ||||||
2 | tax were collected at the 6.25% general rate imposed under this | ||||||
3 | Act.
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4 | (h-2) The following exemptions apply with respect to | ||||||
5 | certain aircraft: | ||||||
6 | (1) Beginning on July 1, 2007, no tax is imposed under | ||||||
7 | this Act on the purchase of an aircraft, as defined in | ||||||
8 | Section 3 of the Illinois Aeronautics Act, if all of the | ||||||
9 | following conditions are met: | ||||||
10 | (A) the aircraft leaves this State within 15 days | ||||||
11 | after the later of either the issuance of the final | ||||||
12 | billing for the purchase of the aircraft or the | ||||||
13 | authorized approval for return to service, completion | ||||||
14 | of the maintenance record entry, and completion of the | ||||||
15 | test flight and ground test for inspection, as required | ||||||
16 | by 14 C.F.R. 91.407; | ||||||
17 | (B) the aircraft is not based or registered in this | ||||||
18 | State after the purchase of the aircraft; and | ||||||
19 | (C) the purchaser provides the Department with a | ||||||
20 | signed and dated certification, on a form prescribed by | ||||||
21 | the Department, certifying that the requirements of | ||||||
22 | this item (1) are met. The certificate must also | ||||||
23 | include the name and address of the purchaser, the | ||||||
24 | address of the location where the aircraft is to be | ||||||
25 | titled or registered, the address of the primary | ||||||
26 | physical location of the aircraft, and other |
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1 | information that the Department may reasonably | ||||||
2 | require. | ||||||
3 | (2) Beginning on July 1, 2007, no tax is imposed under | ||||||
4 | this Act on the use of an aircraft, as defined in Section 3 | ||||||
5 | of the Illinois Aeronautics Act, that is temporarily | ||||||
6 | located in this State for the purpose of a prepurchase | ||||||
7 | evaluation if all of the following conditions are met: | ||||||
8 | (A) the aircraft is not based or registered in this | ||||||
9 | State after the prepurchase evaluation; and | ||||||
10 | (B) the purchaser provides the Department with a | ||||||
11 | signed and dated certification, on a form prescribed by | ||||||
12 | the Department, certifying that the requirements of | ||||||
13 | this item (2) are met. The certificate must also | ||||||
14 | include the name and address of the purchaser, the | ||||||
15 | address of the location where the aircraft is to be | ||||||
16 | titled or registered, the address of the primary | ||||||
17 | physical location of the aircraft, and other | ||||||
18 | information that the Department may reasonably | ||||||
19 | require. | ||||||
20 | (3) Beginning on July 1, 2007, no tax is imposed under | ||||||
21 | this Act on the use of an aircraft, as defined in Section 3 | ||||||
22 | of the Illinois Aeronautics Act, that is temporarily | ||||||
23 | located in this State for the purpose of a post-sale | ||||||
24 | customization if all of the following conditions are met: | ||||||
25 | (A) the aircraft leaves this State within 15 days | ||||||
26 | after the authorized approval for return to service, |
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1 | completion of the maintenance record entry, and | ||||||
2 | completion of the test flight and ground test for | ||||||
3 | inspection, as required by 14 C.F.R. 91.407; | ||||||
4 | (B) the aircraft is not based or registered in this | ||||||
5 | State either before or after the post-sale | ||||||
6 | customization; and | ||||||
7 | (C) the purchaser provides the Department with a | ||||||
8 | signed and dated certification, on a form prescribed by | ||||||
9 | the Department, certifying that the requirements of | ||||||
10 | this item (3) are met. The certificate must also | ||||||
11 | include the name and address of the purchaser, the | ||||||
12 | address of the location where the aircraft is to be | ||||||
13 | titled or registered, the address of the primary | ||||||
14 | physical location of the aircraft, and other | ||||||
15 | information that the Department may reasonably | ||||||
16 | require. | ||||||
17 | If tax becomes due under this subsection (h-2) because of | ||||||
18 | the purchaser's use of the aircraft in this State, the | ||||||
19 | purchaser shall file a return with the Department and pay the | ||||||
20 | tax on the fair market value of the aircraft. This return and | ||||||
21 | payment of the tax must be made no later than 30 days after the | ||||||
22 | aircraft is used in a taxable manner in this State. The tax is | ||||||
23 | based on the fair market value of the aircraft on the date that | ||||||
24 | it is first used in a taxable manner in this State. | ||||||
25 | For purposes of this subsection (h-2): | ||||||
26 | "Based in this State" means hangared, stored, or otherwise |
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1 | used, excluding post-sale customizations as defined in this | ||||||
2 | Section, for 10 or more days in each 12-month period | ||||||
3 | immediately following the date of the sale of the aircraft. | ||||||
4 | "Post-sale customization" means any improvement, | ||||||
5 | maintenance, or repair that is performed on an aircraft | ||||||
6 | following a transfer of ownership of the aircraft. | ||||||
7 | "Prepurchase evaluation" means an examination of an | ||||||
8 | aircraft to provide a potential purchaser with information | ||||||
9 | relevant to the potential purchase. | ||||||
10 | "Registered in this State" means an aircraft registered | ||||||
11 | with the Department of Transportation, Aeronautics Division, | ||||||
12 | or titled or registered with the Federal Aviation | ||||||
13 | Administration to an address located in this State.
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14 | This subsection (h-2) is exempt from the provisions of | ||||||
15 | Section 3-90.
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16 | (i) Beginning July 1, 1999, the use, in this State, of fuel | ||||||
17 | acquired
outside this State and brought into this State in the | ||||||
18 | fuel supply
tanks of locomotives engaged in freight hauling and | ||||||
19 | passenger service for
interstate commerce. This subsection is | ||||||
20 | exempt from the provisions of Section
3-90.
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21 | (j) Beginning on January 1, 2002 and through June 30, 2016, | ||||||
22 | the use of tangible personal property
purchased from an | ||||||
23 | Illinois retailer by a taxpayer engaged in centralized
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24 | purchasing activities in Illinois who will, upon receipt of the | ||||||
25 | property in
Illinois, temporarily store the property in | ||||||
26 | Illinois (i) for the purpose of
subsequently transporting it |
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1 | outside this State for use or consumption
thereafter solely | ||||||
2 | outside this State or (ii) for the purpose of being
processed, | ||||||
3 | fabricated, or manufactured into, attached to, or incorporated | ||||||
4 | into
other tangible personal property to be transported outside | ||||||
5 | this State and
thereafter used or consumed solely outside this | ||||||
6 | State. The Director of Revenue
shall, pursuant to rules adopted | ||||||
7 | in accordance with the Illinois Administrative
Procedure Act, | ||||||
8 | issue a permit to any taxpayer in good standing with the
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9 | Department who is eligible for the exemption under this | ||||||
10 | subsection (j). The
permit issued under this subsection (j) | ||||||
11 | shall authorize the holder, to the
extent and in the manner | ||||||
12 | specified in the rules adopted under this Act, to
purchase | ||||||
13 | tangible personal property from a retailer exempt from the | ||||||
14 | taxes
imposed by this Act. Taxpayers shall maintain all | ||||||
15 | necessary books and records
to substantiate the use and | ||||||
16 | consumption of all such tangible personal property
outside of | ||||||
17 | the State of Illinois.
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18 | (Source: P.A. 97-73, eff. 6-30-11.)
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19 | (35 ILCS 105/3-61)
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20 | Sec. 3-61. Motor vehicles; trailers; use as rolling stock | ||||||
21 | definition. | ||||||
22 | (a) (Blank). Through
June 30, 2003, "use
as
rolling stock | ||||||
23 | moving
in
interstate commerce" in subsections (b) and (c) of | ||||||
24 | Section 3-55 means for motor
vehicles, as defined in Section | ||||||
25 | 1-146 of the Illinois Vehicle Code, and
trailers, as defined in |
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1 | Section 1-209 of the Illinois Vehicle Code, when on 15
or more | ||||||
2 | occasions in a 12-month period the motor vehicle and trailer | ||||||
3 | has
carried
persons or
property for hire in interstate | ||||||
4 | commerce, even just between points in Illinois,
if the motor | ||||||
5 | vehicle and trailer transports persons whose journeys or | ||||||
6 | property
whose shipments originate or terminate outside | ||||||
7 | Illinois. This definition
applies to all property purchased for | ||||||
8 | the purpose of being
attached to those motor vehicles or | ||||||
9 | trailers as a part thereof.
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10 | (b) (Blank). On and after July 1, 2003 and through June 30, | ||||||
11 | 2004, "use as rolling stock moving in interstate
commerce" in
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12 | paragraphs (b) and (c) of Section 3-55 occurs for motor | ||||||
13 | vehicles, as defined in
Section 1-146 of the Illinois Vehicle | ||||||
14 | Code, when during a 12-month period
the
rolling stock has | ||||||
15 | carried persons or property for hire in interstate commerce
for | ||||||
16 | 51% of
its total trips and transports persons whose journeys or | ||||||
17 | property whose
shipments
originate or terminate outside | ||||||
18 | Illinois. Trips that are only between points in
Illinois shall
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19 | not be counted as interstate trips when calculating whether the | ||||||
20 | tangible
personal property
qualifies for the exemption but such | ||||||
21 | trips shall be included in total trips
taken.
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22 | (c) This subsection (c) applies to motor vehicles, other | ||||||
23 | than limousines, purchased through June 30, 2017. For motor | ||||||
24 | vehicles, other than limousines, purchased on or after July 1, | ||||||
25 | 2017, subsection (d-5) applies. This subsection (c) applies to | ||||||
26 | limousines purchased before, on, or after July 1, 2017. "Use |
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1 | Beginning July 1, 2004, "use as rolling stock moving in | ||||||
2 | interstate commerce" in paragraph paragraphs (b) and (c) of | ||||||
3 | Section 3-55 occurs for motor vehicles, as defined in Section | ||||||
4 | 1-146 of the Illinois Vehicle Code, when during a 12-month | ||||||
5 | period the rolling stock has carried persons or property for | ||||||
6 | hire in interstate commerce for greater than 50% of its total | ||||||
7 | trips for that period or for greater than 50% of its total | ||||||
8 | miles for that period. The person claiming the exemption shall | ||||||
9 | make an election at the time of purchase to use either the | ||||||
10 | trips or mileage method. Persons who purchased motor vehicles | ||||||
11 | prior to July 1, 2004 shall make an election to use either the | ||||||
12 | trips or mileage method and document that election in their | ||||||
13 | books and records. If no election is made under this subsection | ||||||
14 | to use the trips or mileage method, the person shall be deemed | ||||||
15 | to have chosen the mileage method. | ||||||
16 | For purposes of determining qualifying trips or miles, | ||||||
17 | motor vehicles that carry persons or property for hire, even | ||||||
18 | just between points in Illinois, will be considered used for | ||||||
19 | hire in interstate commerce if the motor vehicle transports | ||||||
20 | persons whose journeys or property whose shipments originate or | ||||||
21 | terminate outside Illinois. The exemption for motor vehicles
| ||||||
22 | used as rolling stock moving in interstate commerce may be
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23 | claimed only for the following vehicles: (i) motor vehicles | ||||||
24 | whose gross vehicle weight
rating exceeds 16,000 pounds; and | ||||||
25 | (ii) limousines, as defined in Section 1-139.1 of the Illinois | ||||||
26 | Vehicle Code. Through June 30, 2017, this This definition |
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1 | applies to all property purchased for the purpose of being | ||||||
2 | attached to those motor vehicles as a part thereof. On and | ||||||
3 | after July 1, 2017, this definition applies to property | ||||||
4 | purchased for the purpose of being attached to limousines as a | ||||||
5 | part thereof. | ||||||
6 | (d) For purchases made through June 30, 2017 Beginning July | ||||||
7 | 1, 2004 , "use as rolling stock moving in interstate commerce" | ||||||
8 | in paragraph paragraphs (b) and (c) of Section 3-55 occurs for | ||||||
9 | trailers, as defined in Section 1-209 of the Illinois Vehicle | ||||||
10 | Code, semitrailers as defined in Section 1-187 of the Illinois | ||||||
11 | Vehicle Code, and pole trailers as defined in Section 1-161 of | ||||||
12 | the Illinois Vehicle Code, when during a 12-month period the | ||||||
13 | rolling stock has carried persons or property for hire in | ||||||
14 | interstate commerce for greater than 50% of its total trips for | ||||||
15 | that period or for greater than 50% of its total miles for that | ||||||
16 | period. The person claiming the exemption for a trailer or | ||||||
17 | trailers that will not be dedicated to a motor vehicle or group | ||||||
18 | of motor vehicles shall make an election at the time of | ||||||
19 | purchase to use either the trips or mileage method. Persons who | ||||||
20 | purchased trailers prior to July 1, 2004 that are not dedicated | ||||||
21 | to a motor vehicle or group of motor vehicles shall make an | ||||||
22 | election to use either the trips or mileage method and document | ||||||
23 | that election in their books and records. If no election is | ||||||
24 | made under this subsection to use the trips or mileage method, | ||||||
25 | the person shall be deemed to have chosen the mileage method. | ||||||
26 | For purposes of determining qualifying trips or miles, |
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1 | trailers, semitrailers, or pole trailers that carry property | ||||||
2 | for hire, even just between points in Illinois, will be | ||||||
3 | considered used for hire in interstate commerce if the | ||||||
4 | trailers, semitrailers, or pole trailers transport property | ||||||
5 | whose shipments originate or terminate outside Illinois. This | ||||||
6 | definition applies to all property purchased for the purpose of | ||||||
7 | being attached to those trailers, semitrailers, or pole | ||||||
8 | trailers as a part thereof. In lieu of a person providing | ||||||
9 | documentation regarding the qualifying use of each individual | ||||||
10 | trailer, semitrailer, or pole trailer, that person may document | ||||||
11 | such qualifying use by providing documentation of the | ||||||
12 | following: | ||||||
13 | (1) If a trailer, semitrailer, or pole trailer is | ||||||
14 | dedicated to a motor vehicle that qualifies as rolling | ||||||
15 | stock moving in interstate commerce under subsection (c) of | ||||||
16 | this Section, then that trailer, semitrailer, or pole | ||||||
17 | trailer qualifies as rolling stock moving in interstate | ||||||
18 | commerce under this subsection. | ||||||
19 | (2) If a trailer, semitrailer, or pole trailer is | ||||||
20 | dedicated to a group of motor vehicles that all qualify as | ||||||
21 | rolling stock moving in interstate commerce under | ||||||
22 | subsection (c) of this Section, then that trailer, | ||||||
23 | semitrailer, or pole trailer qualifies as rolling stock | ||||||
24 | moving in interstate commerce under this subsection. | ||||||
25 | (3) If one or more trailers, semitrailers, or pole | ||||||
26 | trailers are dedicated to a group of motor vehicles and not |
| |||||||
| |||||||
1 | all of those motor vehicles in that group qualify as | ||||||
2 | rolling stock moving in interstate commerce under | ||||||
3 | subsection (c) of this Section, then the percentage of | ||||||
4 | those trailers, semitrailers, or pole trailers that | ||||||
5 | qualifies as rolling stock moving in interstate commerce | ||||||
6 | under this subsection is equal to the percentage of those | ||||||
7 | motor vehicles in that group that qualify as rolling stock | ||||||
8 | moving in interstate commerce under subsection (c) of this | ||||||
9 | Section to which those trailers, semitrailers, or pole | ||||||
10 | trailers are dedicated. However, to determine the | ||||||
11 | qualification for the exemption provided under this item | ||||||
12 | (3), the mathematical application of the qualifying | ||||||
13 | percentage to one or more trailers, semitrailers, or pole | ||||||
14 | trailers under this subpart shall not be allowed as to any | ||||||
15 | fraction of a trailer, semitrailer, or pole trailer.
| ||||||
16 | (d-5) For motor vehicles and trailers purchased on or after | ||||||
17 | July 1, 2017, "use as rolling stock moving in interstate | ||||||
18 | commerce" means that: | ||||||
19 | (1) the motor vehicle or trailer is used to transport | ||||||
20 | persons or property for hire; | ||||||
21 | (2) for purposes of the exemption under subsection (c) | ||||||
22 | of Section 3-55, the purchaser who is an owner, lessor, or | ||||||
23 | shipper claiming the exemption certifies that the motor | ||||||
24 | vehicle or trailer will be utilized, from the time of | ||||||
25 | purchase and continuing through the statute of limitations | ||||||
26 | for issuing a notice of tax liability under this Act, by an |
| |||||||
| |||||||
1 | interstate carrier or carriers for hire who hold, and are | ||||||
2 | required by Federal Motor Carrier Safety Administration | ||||||
3 | regulations to hold, an active USDOT Number with the | ||||||
4 | Carrier Operation listed as "Interstate" and the Operation | ||||||
5 | Classification listed as "authorized for hire", "exempt | ||||||
6 | for hire", or both "authorized for hire" and "exempt for | ||||||
7 | hire"; except that this paragraph (2) does not apply to a | ||||||
8 | motor vehicle or trailer used at an airport to support the | ||||||
9 | operation of an aircraft moving in interstate commerce, as | ||||||
10 | long as (i) in the case of a motor vehicle, the motor | ||||||
11 | vehicle meets paragraphs (1) and (3) of this subsection | ||||||
12 | (d-5) or (ii) in the case of a trailer, the trailer meets | ||||||
13 | paragraph (1) of this subsection (d-5); and | ||||||
14 | (3) for motor vehicles, the gross vehicle weight rating | ||||||
15 | exceeds 16,000 pounds. | ||||||
16 | The definition of "use as rolling stock moving in | ||||||
17 | interstate commerce" in this subsection (d-5) applies to all | ||||||
18 | property purchased on or after July 1, 2017 for the purpose of | ||||||
19 | being attached to a motor vehicle or trailer as a part thereof, | ||||||
20 | regardless of whether the motor vehicle or trailer was | ||||||
21 | purchased before, on, or after July 1, 2017. | ||||||
22 | If an item ceases to meet requirements (1) through (3) | ||||||
23 | under this subsection (d-5), then the tax is imposed on the | ||||||
24 | selling price, allowing for a reasonable depreciation for the | ||||||
25 | period during which the item qualified for the exemption. | ||||||
26 | For purposes of this subsection (d-5): |
| |||||||
| |||||||
1 | "Motor vehicle" excludes limousines, but otherwise | ||||||
2 | means that term as defined in Section 1-146 of the Illinois | ||||||
3 | Vehicle Code. | ||||||
4 | "Trailer" means (i) "trailer", as defined in Section | ||||||
5 | 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as | ||||||
6 | defined in Section 1-187 of the Illinois Vehicle Code, and | ||||||
7 | (iii) "pole trailer", as defined in Section 1-161 of the | ||||||
8 | Illinois Vehicle Code. | ||||||
9 | (e) For aircraft and watercraft purchased on or after | ||||||
10 | January 1, 2014, "use as rolling stock moving in interstate | ||||||
11 | commerce" in paragraph paragraphs (b) and (c) of Section 3-55 | ||||||
12 | occurs when, during a 12-month period, the rolling stock has | ||||||
13 | carried persons or property for hire in interstate commerce for | ||||||
14 | greater than 50% of its total trips for that period or for | ||||||
15 | greater than 50% of its total miles for that period. The person | ||||||
16 | claiming the exemption shall make an election at the time of | ||||||
17 | purchase to use either the trips or mileage method and document | ||||||
18 | that election in their books and records. If no election is | ||||||
19 | made under this subsection to use the trips or mileage method, | ||||||
20 | the person shall be deemed to have chosen the mileage method. | ||||||
21 | For aircraft, flight hours may be used in lieu of recording | ||||||
22 | miles in determining whether the aircraft meets the mileage | ||||||
23 | test in this subsection. For watercraft, nautical miles or trip | ||||||
24 | hours may be used in lieu of recording miles in determining | ||||||
25 | whether the watercraft meets the mileage test in this | ||||||
26 | subsection. |
| |||||||
| |||||||
1 | Notwithstanding any other provision of law to the contrary, | ||||||
2 | property purchased on or after January 1, 2014 for the purpose | ||||||
3 | of being attached to aircraft or watercraft as a part thereof | ||||||
4 | qualifies as rolling stock moving in interstate commerce only | ||||||
5 | if the aircraft or watercraft to which it will be attached | ||||||
6 | qualifies as rolling stock moving in interstate commerce under | ||||||
7 | the test set forth in this subsection (e), regardless of when | ||||||
8 | the aircraft or watercraft was purchased. Persons who purchased | ||||||
9 | aircraft or watercraft prior to January 1, 2014 shall make an | ||||||
10 | election to use either the trips or mileage method and document | ||||||
11 | that election in their books and records for the purpose of | ||||||
12 | determining whether property purchased on or after January 1, | ||||||
13 | 2014 for the purpose of being attached to aircraft or | ||||||
14 | watercraft as a part thereof qualifies as rolling stock moving | ||||||
15 | in interstate commerce under this subsection (e). | ||||||
16 | (f) The election to use either the trips or mileage method | ||||||
17 | made under the provisions of subsections (c), (d), or (e) of | ||||||
18 | this Section will remain in effect for the duration of the | ||||||
19 | purchaser's ownership of that item. | ||||||
20 | (Source: P.A. 98-584, eff. 8-27-13.)
| ||||||
21 | (35 ILCS 105/10) (from Ch. 120, par. 439.10) | ||||||
22 | Sec. 10. Except as to motor vehicles, aircraft, watercraft, | ||||||
23 | and
trailers, and except as to cigarettes as defined in the | ||||||
24 | Cigarette Use Tax Act, when tangible personal
property is
| ||||||
25 | purchased from a retailer for use in this State by a purchaser
|
| |||||||
| |||||||
1 | who did not pay the tax imposed by this Act to the retailer, | ||||||
2 | and who does not
file returns with the Department as a retailer | ||||||
3 | under Section 9 of this
Act, such purchaser (by the last day of | ||||||
4 | the month following the calendar
month in which such purchaser | ||||||
5 | makes any payment upon the selling price of
such property) | ||||||
6 | shall, except as otherwise provided in this Section, file
a | ||||||
7 | return with the Department and pay the tax upon that portion of | ||||||
8 | the
selling price so paid by the purchaser during the preceding | ||||||
9 | calendar month.
When tangible personal property, including but | ||||||
10 | not limited to motor vehicles
and aircraft, is purchased by a | ||||||
11 | lessor, under a lease for
one year or longer, executed or in | ||||||
12 | effect at the time of purchase to an
interstate carrier for | ||||||
13 | hire, who did not pay the tax imposed by this Act to the
| ||||||
14 | retailer, such lessor (by the last day of the month following | ||||||
15 | the calendar
month in which such property reverts to the use of | ||||||
16 | such lessor) shall file
a return with the Department and pay | ||||||
17 | the tax upon the fair market value of
such property on the date | ||||||
18 | of such reversion.
However, in determining the fair market | ||||||
19 | value at the time of reversion, the
fair market value of such | ||||||
20 | property shall not exceed the original purchase price
of the | ||||||
21 | property that was paid by the lessor at the time of purchase.
| ||||||
22 | Such return shall be filed on
a form prescribed by the | ||||||
23 | Department and shall contain such information as
the Department | ||||||
24 | may reasonably require. Such return and payment from the
| ||||||
25 | purchaser shall be submitted to the Department sooner than the | ||||||
26 | last day of
the month after the month in which the purchase is |
| |||||||
| |||||||
1 | made to the extent that
that may be necessary in order to | ||||||
2 | secure the title to a motor vehicle or
the certificate of | ||||||
3 | registration for an aircraft. However, except as to motor
| ||||||
4 | vehicles and aircraft, and except as to cigarettes as defined | ||||||
5 | in the Cigarette Use Tax Act, if the
purchaser's annual use tax | ||||||
6 | liability does not exceed $600, the purchaser
may file the | ||||||
7 | return on an annual basis on or before April 15th of the year
| ||||||
8 | following the year use tax liability was incurred. Individual | ||||||
9 | purchasers with an annual use tax liability that does not | ||||||
10 | exceed $600 may, in lieu of the filing and payment requirements | ||||||
11 | in this Section, file and pay in compliance with Section 502.1 | ||||||
12 | of the Illinois Income Tax Act. | ||||||
13 | If cigarettes, as defined in the Cigarette Use Tax Act, are | ||||||
14 | purchased from a retailer for use in this State by a purchaser | ||||||
15 | who did not pay the tax imposed by this Act to the retailer, | ||||||
16 | and who does not file returns with the Department as a retailer | ||||||
17 | under Section 9 of this Act, such purchaser must, within 30 | ||||||
18 | days after acquiring the cigarettes, file a return with the | ||||||
19 | Department and pay the tax upon that portion of the selling | ||||||
20 | price so paid by the purchaser for the cigarettes. | ||||||
21 | In addition with respect to motor vehicles,
aircraft, | ||||||
22 | watercraft, and trailers, a purchaser of such tangible personal
| ||||||
23 | property for use in this
State, who purchases such tangible | ||||||
24 | personal property from an out-of-state
retailer, shall file | ||||||
25 | with the Department, upon a form to be prescribed and
supplied | ||||||
26 | by the Department, a return for each such item of tangible
|
| |||||||
| |||||||
1 | personal property purchased, except that if, in the same | ||||||
2 | transaction, (i) a
purchaser of motor vehicles,
aircraft, | ||||||
3 | watercraft, or trailers who is a retailer of motor vehicles,
| ||||||
4 | aircraft, watercraft, or trailers purchases more than one motor | ||||||
5 | vehicle,
aircraft, watercraft, or trailer for the purpose of | ||||||
6 | resale or (ii) a purchaser
of motor vehicles, aircraft, | ||||||
7 | watercraft, or trailers purchases more
than one motor vehicle, | ||||||
8 | aircraft, watercraft, or trailer for use as qualifying
rolling | ||||||
9 | stock as provided in Section 3-55 of this Act, then the | ||||||
10 | purchaser may
report the purchase of all motor vehicles, | ||||||
11 | aircraft, watercraft, or trailers
involved in that transaction | ||||||
12 | to the Department on a single return prescribed by
the | ||||||
13 | Department. Such return in the case of motor vehicles and
| ||||||
14 | aircraft must show the name and address of the seller, the | ||||||
15 | name, address of
purchaser, the amount of the selling price | ||||||
16 | including the amount allowed by
the retailer for traded in | ||||||
17 | property, if any; the amount allowed by the
retailer for the | ||||||
18 | traded-in tangible personal property, if any, to the
extent to | ||||||
19 | which Section 2 of this Act allows an exemption for the value | ||||||
20 | of
traded-in property; the balance payable after deducting such | ||||||
21 | trade-in
allowance from the total selling price; the amount of | ||||||
22 | tax due from the
purchaser with respect to such transaction; | ||||||
23 | the amount of tax collected
from the purchaser by the retailer | ||||||
24 | on such transaction (or satisfactory
evidence that such tax is | ||||||
25 | not due in that particular instance if that is
claimed to be | ||||||
26 | the fact); the place and date of the sale, a sufficient
|
| |||||||
| |||||||
1 | identification of the property sold, and such other information | ||||||
2 | as the
Department may reasonably require. | ||||||
3 | Such return shall be filed not later than 30 days after | ||||||
4 | such motor
vehicle or aircraft is brought into this State for | ||||||
5 | use. | ||||||
6 | For purposes of this Section, "watercraft" means a Class 2, | ||||||
7 | Class 3, or
Class 4 watercraft as defined in Section 3-2 of the | ||||||
8 | Boat Registration and
Safety Act, a personal watercraft, or any | ||||||
9 | boat equipped with an inboard
motor. | ||||||
10 | The return and tax remittance or proof of exemption from | ||||||
11 | the tax that is
imposed by this Act may be transmitted to the | ||||||
12 | Department by way of the
State agency with which, or State | ||||||
13 | officer with whom, the tangible personal
property must be | ||||||
14 | titled or registered (if titling or registration is
required) | ||||||
15 | if the Department and such agency or State officer determine | ||||||
16 | that
this procedure will expedite the processing of | ||||||
17 | applications for title or
registration. | ||||||
18 | With each such return, the purchaser shall remit the proper | ||||||
19 | amount of tax
due (or shall submit satisfactory evidence that | ||||||
20 | the sale is not taxable if
that is the case), to the Department | ||||||
21 | or its agents, whereupon the
Department shall issue, in the | ||||||
22 | purchaser's name, a tax receipt (or a
certificate of exemption | ||||||
23 | if the Department is satisfied that the particular
sale is tax | ||||||
24 | exempt) which such purchaser may submit to the agency with
| ||||||
25 | which, or State officer with whom, he must title or register | ||||||
26 | the tangible
personal property that is involved (if titling or |
| |||||||
| |||||||
1 | registration is required)
in support of such purchaser's | ||||||
2 | application for an Illinois certificate or
other evidence of | ||||||
3 | title or registration to such tangible personal property. | ||||||
4 | When a purchaser pays a tax imposed by this Act directly to | ||||||
5 | the Department,
the Department (upon request therefor from such | ||||||
6 | purchaser) shall issue an
appropriate receipt to such purchaser | ||||||
7 | showing that he has paid such tax to
the Department. Such | ||||||
8 | receipt shall be sufficient to relieve the purchaser
from | ||||||
9 | further liability for the tax to which such receipt may refer. | ||||||
10 | A user who is liable to pay use tax directly to the | ||||||
11 | Department only
occasionally and not on a frequently recurring | ||||||
12 | basis, and who is not
required to file returns with the | ||||||
13 | Department as a retailer under Section 9
of this Act, or under | ||||||
14 | the "Retailers' Occupation Tax Act", or as a
registrant with | ||||||
15 | the Department under the "Service Occupation Tax Act" or
the | ||||||
16 | "Service Use Tax Act", need not register with the Department.
| ||||||
17 | However, if such a user has a frequently recurring direct use | ||||||
18 | tax liability
to pay to the Department, such user shall be | ||||||
19 | required to register with the
Department on forms prescribed by | ||||||
20 | the Department and to obtain and display
a certificate of | ||||||
21 | registration from the Department. In that event, all of
the | ||||||
22 | provisions of Section 9 of this Act concerning the filing of | ||||||
23 | regular
monthly, quarterly or annual tax returns and all of the | ||||||
24 | provisions of
Section 2a of the "Retailers' Occupation Tax Act" | ||||||
25 | concerning the
requirements for registrants to post bond or | ||||||
26 | other security with the
Department, as the provisions of such |
| |||||||
| |||||||
1 | sections now exist or may hereafter
be amended, shall apply to | ||||||
2 | such users to the same extent as if such
provisions were | ||||||
3 | included herein. | ||||||
4 | (Source: P.A. 96-520, eff. 8-14-09; 96-1000, eff. 7-2-10; | ||||||
5 | 96-1388, eff. 7-29-10.) | ||||||
6 | Section 10. The Service Use Tax Act is amended by changing | ||||||
7 | Sections 2 and 3-51 as follows:
| ||||||
8 | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
| ||||||
9 | Sec. 2. Definitions. | ||||||
10 | "Use" means the exercise by any person of any right or | ||||||
11 | power
over tangible personal property incident to the ownership | ||||||
12 | of that
property, but does not include the sale or use for | ||||||
13 | demonstration by him
of that property in any form as tangible | ||||||
14 | personal property in the
regular course of business.
"Use" does | ||||||
15 | not mean the interim
use of
tangible personal property nor the | ||||||
16 | physical incorporation of tangible
personal property, as an | ||||||
17 | ingredient or constituent, into other tangible
personal | ||||||
18 | property, (a) which is sold in the regular course of business
| ||||||
19 | or (b) which the person incorporating such ingredient or | ||||||
20 | constituent
therein has undertaken at the time of such purchase | ||||||
21 | to cause to be
transported in interstate commerce to | ||||||
22 | destinations outside the State of
Illinois.
| ||||||
23 | "Purchased from a serviceman" means the acquisition of the | ||||||
24 | ownership
of, or title to, tangible personal property through a |
| |||||||
| |||||||
1 | sale of service.
| ||||||
2 | "Purchaser" means any person who, through a sale of | ||||||
3 | service, acquires
the ownership of, or title to, any tangible | ||||||
4 | personal property.
| ||||||
5 | "Cost price" means the consideration paid by the serviceman | ||||||
6 | for a
purchase valued in money, whether paid in money or | ||||||
7 | otherwise, including
cash, credits and services, and shall be | ||||||
8 | determined without any
deduction on account of the supplier's | ||||||
9 | cost of the property sold or on
account of any other expense | ||||||
10 | incurred by the supplier. When a serviceman
contracts out part | ||||||
11 | or all of the services required in his sale of service,
it | ||||||
12 | shall be presumed that the cost price to the serviceman of the | ||||||
13 | property
transferred to him or her by his or her subcontractor | ||||||
14 | is equal to 50% of
the subcontractor's charges to the | ||||||
15 | serviceman in the absence of proof of
the consideration paid by | ||||||
16 | the subcontractor for the purchase of such property.
| ||||||
17 | "Selling price" means the consideration for a sale valued | ||||||
18 | in money
whether received in money or otherwise, including | ||||||
19 | cash, credits and
service, and shall be determined without any | ||||||
20 | deduction on account of the
serviceman's cost of the property | ||||||
21 | sold, the cost of materials used,
labor or service cost or any | ||||||
22 | other expense whatsoever, but does not
include interest or | ||||||
23 | finance charges which appear as separate items on
the bill of | ||||||
24 | sale or sales contract nor charges that are added to prices
by | ||||||
25 | sellers on account of the seller's duty to collect, from the
| ||||||
26 | purchaser, the tax that is imposed by this Act.
|
| |||||||
| |||||||
1 | "Department" means the Department of Revenue.
| ||||||
2 | "Person" means any natural individual, firm, partnership,
| ||||||
3 | association, joint stock company, joint venture, public or | ||||||
4 | private
corporation, limited liability company, and any | ||||||
5 | receiver, executor, trustee,
guardian or other representative | ||||||
6 | appointed by order of any court.
| ||||||
7 | "Sale of service" means any transaction except:
| ||||||
8 | (1) a retail sale of tangible personal property taxable | ||||||
9 | under the
Retailers' Occupation Tax Act or under the Use | ||||||
10 | Tax Act.
| ||||||
11 | (2) a sale of tangible personal property for the | ||||||
12 | purpose of resale
made in compliance with Section 2c of the | ||||||
13 | Retailers' Occupation Tax Act.
| ||||||
14 | (3) except as hereinafter provided, a sale or transfer | ||||||
15 | of tangible
personal property as an incident to the | ||||||
16 | rendering of service for or by
any governmental body, or | ||||||
17 | for or by any corporation, society,
association, | ||||||
18 | foundation or institution organized and operated
| ||||||
19 | exclusively for charitable, religious or educational | ||||||
20 | purposes or any
not-for-profit corporation, society, | ||||||
21 | association, foundation,
institution or organization which | ||||||
22 | has no compensated officers or
employees and which is | ||||||
23 | organized and operated primarily for the
recreation of | ||||||
24 | persons 55 years of age or older. A limited liability | ||||||
25 | company
may qualify for the exemption under this paragraph | ||||||
26 | only if the limited
liability company is organized and |
| |||||||
| |||||||
1 | operated exclusively for educational
purposes.
| ||||||
2 | (4) (blank). a sale or transfer of tangible personal
| ||||||
3 | property as an incident to the
rendering of service for | ||||||
4 | interstate carriers for hire for use as rolling stock
| ||||||
5 | moving in interstate commerce or by lessors under a lease | ||||||
6 | of one year or
longer, executed or in effect at the time of | ||||||
7 | purchase of personal property, to
interstate carriers for | ||||||
8 | hire for use as rolling stock moving in interstate
commerce | ||||||
9 | so long as so used by such interstate carriers for hire, | ||||||
10 | and equipment
operated by a telecommunications provider, | ||||||
11 | licensed as a common carrier by the
Federal Communications | ||||||
12 | Commission, which is permanently installed in or affixed
to | ||||||
13 | aircraft moving in interstate commerce.
| ||||||
14 | (4a) a sale or transfer of tangible personal
property | ||||||
15 | as an incident
to the rendering of service for owners, | ||||||
16 | lessors, or shippers of tangible
personal property which is | ||||||
17 | utilized by interstate carriers for hire for
use as rolling | ||||||
18 | stock moving in interstate commerce so long as so used by
| ||||||
19 | interstate carriers for hire, and equipment operated by a
| ||||||
20 | telecommunications provider, licensed as a common carrier | ||||||
21 | by the Federal
Communications Commission, which is | ||||||
22 | permanently installed in or affixed to
aircraft moving in | ||||||
23 | interstate commerce.
| ||||||
24 | (4a-5) on and after July 1, 2003 and through June 30, | ||||||
25 | 2004, a sale or transfer of a motor vehicle
of
the
second | ||||||
26 | division with a gross vehicle weight in excess of 8,000 |
| |||||||
| |||||||
1 | pounds as an
incident to the rendering of service if that | ||||||
2 | motor
vehicle is subject
to the commercial distribution fee | ||||||
3 | imposed under Section 3-815.1 of the
Illinois Vehicle
Code. | ||||||
4 | Beginning on July 1, 2004 and through June 30, 2005, the | ||||||
5 | use in this State of motor vehicles of the second division: | ||||||
6 | (i) with a gross vehicle weight rating in excess of 8,000 | ||||||
7 | pounds; (ii) that are subject to the commercial | ||||||
8 | distribution fee imposed under Section 3-815.1 of the | ||||||
9 | Illinois Vehicle Code; and (iii) that are primarily used | ||||||
10 | for commercial purposes. Through June 30, 2005, this
| ||||||
11 | exemption applies to repair and replacement parts added | ||||||
12 | after the
initial
purchase of such a motor vehicle if that | ||||||
13 | motor vehicle is used in a manner that
would
qualify for | ||||||
14 | the rolling stock exemption otherwise provided for in this | ||||||
15 | Act. For purposes of this paragraph, "used for commercial | ||||||
16 | purposes" means the transportation of persons or property | ||||||
17 | in furtherance of any commercial or industrial enterprise | ||||||
18 | whether for-hire or not.
| ||||||
19 | (5) a sale or transfer of machinery and equipment used | ||||||
20 | primarily in the
process of the manufacturing or | ||||||
21 | assembling, either in an existing, an expanded
or a new | ||||||
22 | manufacturing facility, of tangible personal property for | ||||||
23 | wholesale or
retail sale or lease, whether such sale or | ||||||
24 | lease is made directly by the
manufacturer or by some other | ||||||
25 | person, whether the materials used in the process
are owned | ||||||
26 | by the manufacturer or some other person, or whether such |
| |||||||
| |||||||
1 | sale or
lease is made apart from or as an incident to the | ||||||
2 | seller's engaging in a
service occupation and the | ||||||
3 | applicable tax is a Service Use Tax or Service
Occupation | ||||||
4 | Tax, rather than Use Tax or Retailers' Occupation Tax. The | ||||||
5 | exemption provided by this paragraph (5) does not include | ||||||
6 | machinery and equipment used in (i) the generation of | ||||||
7 | electricity for wholesale or retail sale; (ii) the | ||||||
8 | generation or treatment of natural or artificial gas for | ||||||
9 | wholesale or retail sale that is delivered to customers | ||||||
10 | through pipes, pipelines, or mains; or (iii) the treatment | ||||||
11 | of water for wholesale or retail sale that is delivered to | ||||||
12 | customers through pipes, pipelines, or mains. The | ||||||
13 | provisions of this amendatory Act of the 98th General | ||||||
14 | Assembly are declaratory of existing law as to the meaning | ||||||
15 | and scope of this exemption.
| ||||||
16 | (5a) the repairing, reconditioning or remodeling, for | ||||||
17 | a
common carrier by rail, of tangible personal property | ||||||
18 | which belongs to such
carrier for hire, and as to which | ||||||
19 | such carrier receives the physical possession
of the | ||||||
20 | repaired, reconditioned or remodeled item of tangible | ||||||
21 | personal property
in Illinois, and which such carrier | ||||||
22 | transports, or shares with another common
carrier in the | ||||||
23 | transportation of such property, out of Illinois on a | ||||||
24 | standard
uniform bill of lading showing the person who | ||||||
25 | repaired, reconditioned or
remodeled the property to a | ||||||
26 | destination outside Illinois, for use outside
Illinois.
|
| |||||||
| |||||||
1 | (5b) a sale or transfer of tangible personal property | ||||||
2 | which is produced by
the seller thereof on special order in | ||||||
3 | such a way as to have made the
applicable tax the Service | ||||||
4 | Occupation Tax or the Service Use Tax, rather than
the | ||||||
5 | Retailers' Occupation Tax or the Use Tax, for an interstate | ||||||
6 | carrier by rail
which receives the physical possession of | ||||||
7 | such property in Illinois, and which
transports such | ||||||
8 | property, or shares with another common carrier in the
| ||||||
9 | transportation of such property, out of Illinois on a | ||||||
10 | standard uniform bill of
lading showing the seller of the | ||||||
11 | property as the shipper or consignor of such
property to a | ||||||
12 | destination outside Illinois, for use outside Illinois.
| ||||||
13 | (6) until July 1, 2003, a sale or transfer of | ||||||
14 | distillation machinery
and equipment, sold
as a unit or kit | ||||||
15 | and assembled or installed by the retailer, which
machinery | ||||||
16 | and equipment is certified by the user to be used only for | ||||||
17 | the
production of ethyl alcohol that will be used for | ||||||
18 | consumption as motor fuel
or as a component of motor fuel | ||||||
19 | for the personal use of such user and not
subject to sale | ||||||
20 | or resale.
| ||||||
21 | (7) at the election of any serviceman not required to | ||||||
22 | be
otherwise registered as a retailer under Section 2a of | ||||||
23 | the Retailers'
Occupation Tax Act, made for each fiscal | ||||||
24 | year sales
of service in which the aggregate annual cost | ||||||
25 | price of tangible
personal property transferred as an | ||||||
26 | incident to the sales of service is
less than 35%, or 75% |
| |||||||
| |||||||
1 | in the case of servicemen transferring prescription
drugs | ||||||
2 | or servicemen engaged in graphic arts production, of the | ||||||
3 | aggregate
annual total gross receipts from all sales of | ||||||
4 | service. The purchase of
such tangible personal property by | ||||||
5 | the serviceman shall be subject to tax
under the Retailers' | ||||||
6 | Occupation Tax Act and the Use Tax Act.
However, if a
| ||||||
7 | primary serviceman who has made the election described in | ||||||
8 | this paragraph
subcontracts service work to a secondary | ||||||
9 | serviceman who has also made the
election described in this | ||||||
10 | paragraph, the primary serviceman does not
incur a Use Tax | ||||||
11 | liability if the secondary serviceman (i) has paid or will | ||||||
12 | pay
Use
Tax on his or her cost price of any tangible | ||||||
13 | personal property transferred
to the primary serviceman | ||||||
14 | and (ii) certifies that fact in writing to the
primary
| ||||||
15 | serviceman.
| ||||||
16 | Tangible personal property transferred incident to the | ||||||
17 | completion of a
maintenance agreement is exempt from the tax | ||||||
18 | imposed pursuant to this Act.
| ||||||
19 | Exemption (5) also includes machinery and equipment used in | ||||||
20 | the general
maintenance or repair of such exempt machinery and | ||||||
21 | equipment or for in-house
manufacture of exempt machinery and | ||||||
22 | equipment. The machinery and equipment exemption does not | ||||||
23 | include machinery and equipment used in (i) the generation of | ||||||
24 | electricity for wholesale or retail sale; (ii) the generation | ||||||
25 | or treatment of natural or artificial gas for wholesale or | ||||||
26 | retail sale that is delivered to customers through pipes, |
| |||||||
| |||||||
1 | pipelines, or mains; or (iii) the treatment of water for | ||||||
2 | wholesale or retail sale that is delivered to customers through | ||||||
3 | pipes, pipelines, or mains. The provisions of this amendatory | ||||||
4 | Act of the 98th General Assembly are declaratory of existing | ||||||
5 | law as to the meaning and scope of this exemption. For the | ||||||
6 | purposes of exemption
(5), each of these terms shall have the | ||||||
7 | following meanings: (1) "manufacturing
process" shall mean the | ||||||
8 | production of any article of tangible personal
property, | ||||||
9 | whether such article is a finished product or an article for | ||||||
10 | use in
the process of manufacturing or assembling a different | ||||||
11 | article of tangible
personal property, by procedures commonly | ||||||
12 | regarded as manufacturing,
processing, fabricating, or | ||||||
13 | refining which changes some existing
material or materials into | ||||||
14 | a material with a different form, use or
name. In relation to a | ||||||
15 | recognized integrated business composed of a
series of | ||||||
16 | operations which collectively constitute manufacturing, or
| ||||||
17 | individually constitute manufacturing operations, the | ||||||
18 | manufacturing
process shall be deemed to commence with the | ||||||
19 | first operation or stage of
production in the series, and shall | ||||||
20 | not be deemed to end until the
completion of the final product | ||||||
21 | in the last operation or stage of
production in the series; and | ||||||
22 | further, for purposes of exemption (5),
photoprocessing is | ||||||
23 | deemed to be a manufacturing process of tangible
personal | ||||||
24 | property for wholesale or retail sale; (2) "assembling process" | ||||||
25 | shall
mean the production of any article of tangible personal | ||||||
26 | property, whether such
article is a finished product or an |
| |||||||
| |||||||
1 | article for use in the process of
manufacturing or assembling a | ||||||
2 | different article of tangible personal
property, by the | ||||||
3 | combination of existing materials in a manner commonly
regarded | ||||||
4 | as assembling which results in a material of a different form,
| ||||||
5 | use or name; (3) "machinery" shall mean major mechanical | ||||||
6 | machines or
major components of such machines contributing to a | ||||||
7 | manufacturing or
assembling process; and (4) "equipment" shall | ||||||
8 | include any independent
device or tool separate from any | ||||||
9 | machinery but essential to an
integrated manufacturing or | ||||||
10 | assembly process; including computers
used primarily in a | ||||||
11 | manufacturer's computer
assisted design, computer assisted | ||||||
12 | manufacturing (CAD/CAM) system;
or any subunit or assembly | ||||||
13 | comprising a component of any machinery or
auxiliary, adjunct | ||||||
14 | or attachment parts of machinery, such as tools, dies,
jigs, | ||||||
15 | fixtures, patterns and molds; or any parts which require | ||||||
16 | periodic
replacement in the course of normal operation; but | ||||||
17 | shall not include hand
tools.
Equipment includes chemicals or | ||||||
18 | chemicals acting as catalysts but only if the
chemicals or | ||||||
19 | chemicals acting as catalysts effect a direct and immediate | ||||||
20 | change
upon a
product being manufactured or assembled for | ||||||
21 | wholesale or retail sale or
lease.
The purchaser of such | ||||||
22 | machinery and equipment who has an active
resale registration | ||||||
23 | number shall furnish such number to the seller at the
time of | ||||||
24 | purchase. The user of such machinery and equipment and tools
| ||||||
25 | without an active resale registration number shall prepare a | ||||||
26 | certificate of
exemption for each transaction stating facts |
| |||||||
| |||||||
1 | establishing the exemption for
that transaction, which | ||||||
2 | certificate shall be available to the Department
for inspection | ||||||
3 | or audit. The Department shall prescribe the form of the
| ||||||
4 | certificate.
| ||||||
5 | Any informal rulings, opinions or letters issued by the | ||||||
6 | Department in
response to an inquiry or request for any opinion | ||||||
7 | from any person
regarding the coverage and applicability of | ||||||
8 | exemption (5) to specific
devices shall be published, | ||||||
9 | maintained as a public record, and made
available for public | ||||||
10 | inspection and copying. If the informal ruling,
opinion or | ||||||
11 | letter contains trade secrets or other confidential
| ||||||
12 | information, where possible the Department shall delete such | ||||||
13 | information
prior to publication. Whenever such informal | ||||||
14 | rulings, opinions, or
letters contain any policy of general | ||||||
15 | applicability, the Department
shall formulate and adopt such | ||||||
16 | policy as a rule in accordance with the
provisions of the | ||||||
17 | Illinois Administrative Procedure Act.
| ||||||
18 | On and after July 1, 1987, no entity otherwise eligible | ||||||
19 | under exemption
(3) of this Section shall make tax free | ||||||
20 | purchases unless it has an active
exemption identification | ||||||
21 | number issued by the Department.
| ||||||
22 | The purchase, employment and transfer of such tangible | ||||||
23 | personal
property as newsprint and ink for the primary purpose | ||||||
24 | of conveying news
(with or without other information) is not a | ||||||
25 | purchase, use or sale of
service or of tangible personal | ||||||
26 | property within the meaning of this Act.
|
| |||||||
| |||||||
1 | "Serviceman" means any person who is engaged in the | ||||||
2 | occupation of
making sales of service.
| ||||||
3 | "Sale at retail" means "sale at retail" as defined in the | ||||||
4 | Retailers'
Occupation Tax Act.
| ||||||
5 | "Supplier" means any person who makes sales of tangible | ||||||
6 | personal
property to servicemen for the purpose of resale as an | ||||||
7 | incident to a
sale of service.
| ||||||
8 | "Serviceman maintaining a place of business in this State", | ||||||
9 | or any
like term, means and includes any serviceman:
| ||||||
10 | 1. having or maintaining within this State, directly or | ||||||
11 | by a
subsidiary, an office, distribution house, sales | ||||||
12 | house, warehouse or
other place of business, or any agent | ||||||
13 | or other representative operating
within this State under | ||||||
14 | the authority of the serviceman or its
subsidiary, | ||||||
15 | irrespective of whether such place of business or agent or
| ||||||
16 | other representative is located here permanently or | ||||||
17 | temporarily, or
whether such serviceman or subsidiary is | ||||||
18 | licensed to do business in this
State; | ||||||
19 | 1.1. having a contract with a person located in this | ||||||
20 | State under which the person, for a commission or other | ||||||
21 | consideration based on the sale of service by the | ||||||
22 | serviceman, directly or indirectly refers potential | ||||||
23 | customers to the serviceman by providing to the potential | ||||||
24 | customers a promotional code or other mechanism that allows | ||||||
25 | the serviceman to track purchases referred by such persons. | ||||||
26 | Examples of mechanisms that allow the serviceman to track |
| |||||||
| |||||||
1 | purchases referred by such persons include but are not | ||||||
2 | limited to the use of a link on the person's Internet | ||||||
3 | website, promotional codes distributed through the | ||||||
4 | person's hand-delivered or mailed material, and | ||||||
5 | promotional codes distributed by the person through radio | ||||||
6 | or other broadcast media. The provisions of this paragraph | ||||||
7 | 1.1 shall apply only if the cumulative gross receipts from | ||||||
8 | sales of service by the serviceman to customers who are | ||||||
9 | referred to the serviceman by all persons in this State | ||||||
10 | under such contracts exceed $10,000 during the preceding 4 | ||||||
11 | quarterly periods ending on the last day of March, June, | ||||||
12 | September, and December; a serviceman meeting the | ||||||
13 | requirements of this paragraph 1.1 shall be presumed to be | ||||||
14 | maintaining a place of business in this State but may rebut | ||||||
15 | this presumption by submitting proof that the referrals or | ||||||
16 | other activities pursued within this State by such persons | ||||||
17 | were not sufficient to meet the nexus standards of the | ||||||
18 | United States Constitution during the preceding 4 | ||||||
19 | quarterly periods; | ||||||
20 | 1.2. beginning July 1, 2011, having a contract with a | ||||||
21 | person located in this State under which: | ||||||
22 | A. the serviceman sells the same or substantially | ||||||
23 | similar line of services as the person located in this | ||||||
24 | State and does so using an identical or substantially | ||||||
25 | similar name, trade name, or trademark as the person | ||||||
26 | located in this State; and |
| |||||||
| |||||||
1 | B. the serviceman provides a commission or other | ||||||
2 | consideration to the person located in this State based | ||||||
3 | upon the sale of services by the serviceman. | ||||||
4 | The provisions of this paragraph 1.2 shall apply only if | ||||||
5 | the cumulative gross receipts from sales of service by the | ||||||
6 | serviceman to customers in this State under all such | ||||||
7 | contracts exceed $10,000 during the preceding 4 quarterly | ||||||
8 | periods ending on the last day of March, June, September, | ||||||
9 | and December;
| ||||||
10 | 2. soliciting orders for tangible personal property by | ||||||
11 | means of a
telecommunication or television shopping system | ||||||
12 | (which utilizes toll free
numbers) which is intended by the | ||||||
13 | retailer to be broadcast by cable
television or other means | ||||||
14 | of broadcasting, to consumers located in this State;
| ||||||
15 | 3. pursuant to a contract with a broadcaster or | ||||||
16 | publisher located in this
State, soliciting orders for | ||||||
17 | tangible personal property by means of advertising
which is | ||||||
18 | disseminated primarily to consumers located in this State | ||||||
19 | and only
secondarily to bordering jurisdictions;
| ||||||
20 | 4. soliciting orders for tangible personal property by | ||||||
21 | mail if the
solicitations are substantial and recurring and | ||||||
22 | if the retailer benefits
from any banking, financing, debt | ||||||
23 | collection, telecommunication, or
marketing activities | ||||||
24 | occurring in this State or benefits from the location
in | ||||||
25 | this State of authorized installation, servicing, or | ||||||
26 | repair facilities;
|
| |||||||
| |||||||
1 | 5. being owned or controlled by the same interests | ||||||
2 | which own or
control any retailer engaging in business in | ||||||
3 | the same or similar line of
business in this State;
| ||||||
4 | 6. having a franchisee or licensee operating under its | ||||||
5 | trade name if
the franchisee or licensee is required to | ||||||
6 | collect the tax under this Section;
| ||||||
7 | 7. pursuant to a contract with a cable television | ||||||
8 | operator located in
this State, soliciting orders for | ||||||
9 | tangible personal property by means of
advertising which is | ||||||
10 | transmitted or distributed over a cable television
system | ||||||
11 | in this State; or
| ||||||
12 | 8. engaging in activities in Illinois, which | ||||||
13 | activities in the
state in which the supply business | ||||||
14 | engaging in such activities is located
would constitute | ||||||
15 | maintaining a place of business in that state.
| ||||||
16 | (Source: P.A. 98-583, eff. 1-1-14; 98-1089, eff. 1-1-15.)
| ||||||
17 | (35 ILCS 110/3-51)
| ||||||
18 | Sec. 3-51. Motor vehicles; trailers; use as rolling stock | ||||||
19 | definition. | ||||||
20 | (a) (Blank). Through
June 30, 2003, "use
as
rolling stock | ||||||
21 | moving
in
interstate commerce" in subsection (b) of Section | ||||||
22 | 3-45 means for motor
vehicles, as defined in Section 1-46 of | ||||||
23 | the Illinois Vehicle Code, and
trailers, as defined in Section | ||||||
24 | 1-209 of the Illinois Vehicle Code, when on 15
or more
| ||||||
25 | occasions in a 12-month period the motor vehicle and trailer |
| |||||||
| |||||||
1 | has carried
persons
or property
for hire in interstate | ||||||
2 | commerce, even just between points in Illinois, if the
motor | ||||||
3 | vehicle and trailer transports persons whose journeys or | ||||||
4 | property
whose shipments originate or terminate outside | ||||||
5 | Illinois. This definition
applies to all property purchased for | ||||||
6 | the purpose of being attached to those
motor
vehicles or | ||||||
7 | trailers as a part thereof.
| ||||||
8 | (b) (Blank). On and after July 1, 2003 and through June 30, | ||||||
9 | 2004, "use as rolling stock moving in interstate
commerce" in
| ||||||
10 | paragraphs (4) and (4a) of the definition of "sale of service" | ||||||
11 | in Section 2
and subsection (b) of Section 3-45 occurs for | ||||||
12 | motor vehicles, as defined in
Section 1-146 of the Illinois | ||||||
13 | Vehicle Code, when
during a 12-month period the rolling stock | ||||||
14 | has carried persons or property for
hire in
interstate commerce | ||||||
15 | for 51% of its total trips and transports persons whose
| ||||||
16 | journeys or
property whose shipments originate or terminate | ||||||
17 | outside Illinois. Trips that
are only
between points in | ||||||
18 | Illinois shall not be counted as interstate trips when
| ||||||
19 | calculating whether
the tangible personal property qualifies | ||||||
20 | for the exemption but such trips shall
be included
in total | ||||||
21 | trips taken.
| ||||||
22 | (c) This subsection (c) applies to motor vehicles, other | ||||||
23 | than limousines, purchased through June 30, 2017. For motor | ||||||
24 | vehicles, other than limousines, purchased on or after July 1, | ||||||
25 | 2017, subsection (d-5) applies. This subsection (c) applies to | ||||||
26 | limousines purchased before, on, or after July 1, 2017. "Use |
| |||||||
| |||||||
1 | Beginning July 1, 2004, "use as rolling stock moving in | ||||||
2 | interstate commerce" in paragraph paragraphs (4) and (4a) of | ||||||
3 | the definition of "sale of service" in Section 2 and subsection | ||||||
4 | (b) of Section 3-45 occurs for motor vehicles, as defined in | ||||||
5 | Section 1-146 of the Illinois Vehicle Code, when during a | ||||||
6 | 12-month period the rolling stock has carried persons or | ||||||
7 | property for hire in interstate commerce for greater than 50% | ||||||
8 | of its total trips for that period or for greater than 50% of | ||||||
9 | its total miles for that period. The person claiming the | ||||||
10 | exemption shall make an election at the time of purchase to use | ||||||
11 | either the trips or mileage method. Persons who purchased motor | ||||||
12 | vehicles prior to July 1, 2004 shall make an election to use | ||||||
13 | either the trips or mileage method and document that election | ||||||
14 | in their books and records. If no election is made under this | ||||||
15 | subsection to use the trips or mileage method, the person shall | ||||||
16 | be deemed to have chosen the mileage method. | ||||||
17 | For purposes of determining qualifying trips or miles, | ||||||
18 | motor vehicles that carry persons or property for hire, even | ||||||
19 | just between points in Illinois, will be considered used for | ||||||
20 | hire in interstate commerce if the motor vehicle transports | ||||||
21 | persons whose journeys or property whose shipments originate or | ||||||
22 | terminate outside Illinois. The exemption for motor vehicles
| ||||||
23 | used as rolling stock moving in interstate commerce may be
| ||||||
24 | claimed only for the following vehicles: (i) motor vehicles | ||||||
25 | whose gross vehicle weight
rating exceeds 16,000 pounds; and | ||||||
26 | (ii) limousines, as defined in Section 1-139.1 of the Illinois |
| |||||||
| |||||||
1 | Vehicle Code. Through June 30, 2017, this This definition | ||||||
2 | applies to all property purchased for the purpose of being | ||||||
3 | attached to those motor vehicles as a part thereof. On and | ||||||
4 | after July 1, 2017, this definition applies to property | ||||||
5 | purchased for the purpose of being attached to limousines as a | ||||||
6 | part thereof. | ||||||
7 | (d) For purchases made through June 30, 2017 Beginning July | ||||||
8 | 1, 2004 , "use as rolling stock moving in interstate commerce" | ||||||
9 | in paragraph paragraphs (4) and (4a) of the definition of "sale | ||||||
10 | of service" in Section 2 and subsection (b) of Section 3-45 | ||||||
11 | occurs for trailers, as defined in Section 1-209 of the | ||||||
12 | Illinois Vehicle Code, semitrailers as defined in Section 1-187 | ||||||
13 | of the Illinois Vehicle Code, and pole trailers as defined in | ||||||
14 | Section 1-161 of the Illinois Vehicle Code, when during a | ||||||
15 | 12-month period the rolling stock has carried persons or | ||||||
16 | property for hire in interstate commerce for greater than 50% | ||||||
17 | of its total trips for that period or for greater than 50% of | ||||||
18 | its total miles for that period. The person claiming the | ||||||
19 | exemption for a trailer or trailers that will not be dedicated | ||||||
20 | to a motor vehicle or group of motor vehicles shall make an | ||||||
21 | election at the time of purchase to use either the trips or | ||||||
22 | mileage method. Persons who purchased trailers prior to July 1, | ||||||
23 | 2004 that are not dedicated to a motor vehicle or group of | ||||||
24 | motor vehicles shall make an election to use either the trips | ||||||
25 | or mileage method and document that election in their books and | ||||||
26 | records. If no election is made under this subsection to use |
| |||||||
| |||||||
1 | the trips or mileage method, the person shall be deemed to have | ||||||
2 | chosen the mileage method. | ||||||
3 | For purposes of determining qualifying trips or miles, | ||||||
4 | trailers, semitrailers, or pole trailers that carry property | ||||||
5 | for hire, even just between points in Illinois, will be | ||||||
6 | considered used for hire in interstate commerce if the | ||||||
7 | trailers, semitrailers, or pole trailers transport property | ||||||
8 | whose shipments originate or terminate outside Illinois. This | ||||||
9 | definition applies to all property purchased for the purpose of | ||||||
10 | being attached to those trailers, semitrailers, or pole | ||||||
11 | trailers as a part thereof. In lieu of a person providing | ||||||
12 | documentation regarding the qualifying use of each individual | ||||||
13 | trailer, semitrailer, or pole trailer, that person may document | ||||||
14 | such qualifying use by providing documentation of the | ||||||
15 | following: | ||||||
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) of | ||||||
19 | 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 |
| |||||||
| |||||||
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 not | ||||||
4 | 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 after | ||||||
20 | July 1, 2017, "use as rolling stock moving in interstate | ||||||
21 | commerce" 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 (4a) | ||||||
25 | of the definition of "sale of service" in Section 2, the | ||||||
26 | purchaser who is an owner, lessor, or shipper claiming the |
| |||||||
| |||||||
1 | exemption certifies that the motor vehicle or trailer will | ||||||
2 | 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 as | ||||||
8 | "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 rating | ||||||
19 | exceeds 16,000 pounds. | ||||||
20 | The definition of "use as rolling stock moving in | ||||||
21 | interstate commerce" in this subsection (d-5) applies to all | ||||||
22 | property purchased on or after July 1, 2017 for the purpose of | ||||||
23 | being attached to a motor vehicle or trailer as a part thereof, | ||||||
24 | regardless of whether the motor vehicle or trailer was | ||||||
25 | purchased before, on, or after July 1, 2017. | ||||||
26 | If an item ceases to meet requirements (1) through (3) |
| |||||||
| |||||||
1 | under this subsection (d-5), then the tax is imposed on the | ||||||
2 | selling price, allowing for a reasonable depreciation for the | ||||||
3 | period 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 Illinois | ||||||
7 | 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 and watercraft purchased on or after | ||||||
14 | January 1, 2014, "use as rolling stock moving in interstate | ||||||
15 | commerce" in (i) paragraph paragraphs (4) and (4a) of the | ||||||
16 | definition of "sale of service" in Section 2 and (ii) | ||||||
17 | subsection (b) of Section 3-45 occurs when, during a 12-month | ||||||
18 | period, the rolling stock has carried persons or property for | ||||||
19 | hire in interstate commerce for greater than 50% of its total | ||||||
20 | trips for that period or for greater than 50% of its total | ||||||
21 | miles for that period. The person claiming the exemption shall | ||||||
22 | make an election at the time of purchase to use either the | ||||||
23 | trips or mileage method and document that election in their | ||||||
24 | books and records. If no election is made under this subsection | ||||||
25 | to use the trips or mileage method, the person shall be deemed | ||||||
26 | to have chosen the mileage method. For aircraft, flight hours |
| |||||||
| |||||||
1 | may be used in lieu of recording miles in determining whether | ||||||
2 | the aircraft meets the mileage test in this subsection. For | ||||||
3 | watercraft, nautical miles or trip hours may be used in lieu of | ||||||
4 | recording miles in determining whether the watercraft meets the | ||||||
5 | mileage test in this subsection. | ||||||
6 | Notwithstanding any other provision of law to the contrary, | ||||||
7 | property purchased on or after January 1, 2014 for the purpose | ||||||
8 | of being attached to aircraft or watercraft as a part thereof | ||||||
9 | qualifies as rolling stock moving in interstate commerce only | ||||||
10 | if the aircraft or watercraft to which it will be attached | ||||||
11 | qualifies as rolling stock moving in interstate commerce under | ||||||
12 | the test set forth in this subsection (e), regardless of when | ||||||
13 | the aircraft or watercraft was purchased. Persons who purchased | ||||||
14 | aircraft or watercraft prior to January 1, 2014 shall make an | ||||||
15 | election to use either the trips or mileage method and document | ||||||
16 | that election in their books and records for the purpose of | ||||||
17 | determining whether property purchased on or after January 1, | ||||||
18 | 2014 for the purpose of being attached to aircraft or | ||||||
19 | watercraft as a part thereof qualifies as rolling stock moving | ||||||
20 | in interstate commerce under this subsection (e). | ||||||
21 | (f) The election to use either the trips or mileage method | ||||||
22 | made under the provisions of subsections (c), (d), or (e) of | ||||||
23 | this Section will remain in effect for the duration of the | ||||||
24 | purchaser's ownership of that item. | ||||||
25 | (Source: P.A. 98-584, eff. 8-27-13.)
|
| |||||||
| |||||||
1 | Section 15. The Service Occupation Tax Act is amended by | ||||||
2 | changing Sections 2 and 2d as follows:
| ||||||
3 | (35 ILCS 115/2) (from Ch. 120, par. 439.102)
| ||||||
4 | Sec. 2. "Transfer" means any transfer of the title to | ||||||
5 | property or of
the ownership of property whether or not the | ||||||
6 | transferor retains title as
security for the payment of amounts | ||||||
7 | due him from the transferee.
| ||||||
8 | "Cost Price" means the consideration paid by the serviceman | ||||||
9 | for a
purchase valued in money, whether paid in money or | ||||||
10 | otherwise, including
cash, credits and services, and shall be | ||||||
11 | determined without any deduction
on account of the supplier's | ||||||
12 | cost of the property sold or on account of any
other expense | ||||||
13 | incurred by the supplier. When a serviceman contracts out
part | ||||||
14 | or all of the services required in his sale of service, it | ||||||
15 | shall be
presumed that the cost price to the serviceman of the | ||||||
16 | property
transferred to him by his or her subcontractor is | ||||||
17 | equal to 50% of the
subcontractor's charges to the serviceman | ||||||
18 | in the absence of proof of the
consideration paid by the | ||||||
19 | subcontractor for the purchase of such
property.
| ||||||
20 | "Department" means the Department of Revenue.
| ||||||
21 | "Person" means any natural individual, firm, partnership, | ||||||
22 | association, joint
stock company, joint venture, public or | ||||||
23 | private corporation, limited liability
company, and any | ||||||
24 | receiver, executor, trustee, guardian or other representative
| ||||||
25 | appointed by order of any court.
|
| |||||||
| |||||||
1 | "Sale of Service" means any transaction except:
| ||||||
2 | (a) A retail sale of tangible personal property taxable | ||||||
3 | under the Retailers'
Occupation Tax Act or under the Use Tax | ||||||
4 | Act.
| ||||||
5 | (b) A sale of tangible personal property for the purpose of | ||||||
6 | resale made in
compliance with Section 2c of the Retailers' | ||||||
7 | Occupation Tax Act.
| ||||||
8 | (c) Except as hereinafter provided, a sale or transfer of | ||||||
9 | tangible personal
property as an incident to the rendering of | ||||||
10 | service for or by any governmental
body or for or by any | ||||||
11 | corporation, society, association, foundation or
institution | ||||||
12 | organized and operated exclusively for charitable, religious | ||||||
13 | or
educational purposes or any not-for-profit corporation, | ||||||
14 | society, association,
foundation, institution or organization | ||||||
15 | which has no compensated officers or
employees and which is | ||||||
16 | organized and operated primarily for the recreation of
persons | ||||||
17 | 55 years of age or older. A limited liability company may | ||||||
18 | qualify for
the exemption under this paragraph only if the | ||||||
19 | limited liability company is
organized and operated | ||||||
20 | exclusively for educational purposes.
| ||||||
21 | (d) (Blank). A sale or transfer of tangible personal
| ||||||
22 | property
as an incident to the
rendering of service for | ||||||
23 | interstate carriers for hire for use as rolling stock
moving in | ||||||
24 | interstate commerce or lessors under leases of one year or | ||||||
25 | longer,
executed or in effect at the time of purchase, to | ||||||
26 | interstate carriers for hire
for use as rolling stock moving in |
| |||||||
| |||||||
1 | interstate commerce, and equipment operated
by a | ||||||
2 | telecommunications provider, licensed as a common
carrier by | ||||||
3 | the Federal Communications Commission, which is permanently
| ||||||
4 | installed in or affixed to aircraft moving in interstate | ||||||
5 | commerce.
| ||||||
6 | (d-1) A sale or transfer of tangible personal
property as | ||||||
7 | an incident to
the rendering of service for owners, lessors or | ||||||
8 | shippers of tangible personal
property which is utilized by | ||||||
9 | interstate carriers for hire for use as rolling
stock moving in | ||||||
10 | interstate commerce, and equipment operated
by a | ||||||
11 | telecommunications provider, licensed as a common carrier by | ||||||
12 | the
Federal Communications Commission, which is permanently | ||||||
13 | installed in or
affixed to aircraft moving in interstate | ||||||
14 | commerce.
| ||||||
15 | (d-1.1) On and after July 1, 2003 and through June 30, | ||||||
16 | 2004, a sale or transfer of a motor vehicle
of the
second | ||||||
17 | division with a gross vehicle weight in excess of 8,000 pounds | ||||||
18 | as an
incident to the rendering of service if that motor
| ||||||
19 | vehicle is subject
to the commercial distribution fee imposed | ||||||
20 | under Section 3-815.1 of the
Illinois Vehicle
Code. Beginning | ||||||
21 | on July 1, 2004 and through June 30, 2005, the use in this | ||||||
22 | State of motor vehicles of the second division: (i) with a | ||||||
23 | gross vehicle weight rating in excess of 8,000 pounds; (ii) | ||||||
24 | that are subject to the commercial distribution fee imposed | ||||||
25 | under Section 3-815.1 of the Illinois Vehicle Code; and (iii) | ||||||
26 | that are primarily used for commercial purposes. Through June |
| |||||||
| |||||||
1 | 30, 2005, this exemption applies to repair and replacement | ||||||
2 | parts added after the
initial
purchase of such a motor vehicle | ||||||
3 | if that motor vehicle is used in a manner that
would
qualify | ||||||
4 | for the rolling stock exemption otherwise provided for in this | ||||||
5 | Act. For purposes of this paragraph, "used for commercial | ||||||
6 | purposes" means the transportation of persons or property in | ||||||
7 | furtherance of any commercial or industrial enterprise whether | ||||||
8 | for-hire or not.
| ||||||
9 | (d-2) The repairing, reconditioning or remodeling, for a | ||||||
10 | common carrier by
rail, of tangible personal property which | ||||||
11 | belongs to such carrier for hire, and
as to which such carrier | ||||||
12 | receives the physical possession of the repaired,
| ||||||
13 | reconditioned or remodeled item of tangible personal property | ||||||
14 | in Illinois, and
which such carrier transports, or shares with | ||||||
15 | another common carrier in the
transportation of such property, | ||||||
16 | out of Illinois on a standard uniform bill of
lading showing | ||||||
17 | the person who repaired, reconditioned or remodeled the | ||||||
18 | property
as the shipper or consignor of such property to a | ||||||
19 | destination outside Illinois,
for use outside Illinois.
| ||||||
20 | (d-3) A sale or transfer of tangible personal property | ||||||
21 | which
is produced by the seller thereof on special order in | ||||||
22 | such a way as to have
made the applicable tax the Service | ||||||
23 | Occupation Tax or the Service Use Tax,
rather than the | ||||||
24 | Retailers' Occupation Tax or the Use Tax, for an interstate
| ||||||
25 | carrier by rail which receives the physical possession of such | ||||||
26 | property in
Illinois, and which transports such property, or |
| |||||||
| |||||||
1 | shares with another common
carrier in the transportation of | ||||||
2 | such property, out of Illinois on a standard
uniform bill of | ||||||
3 | lading showing the seller of the property as the shipper or
| ||||||
4 | consignor of such property to a destination outside Illinois, | ||||||
5 | for use outside
Illinois.
| ||||||
6 | (d-4) Until January 1, 1997, a sale, by a registered | ||||||
7 | serviceman paying tax
under this Act to the Department, of | ||||||
8 | special order printed materials delivered
outside Illinois and | ||||||
9 | which are not returned to this State, if delivery is made
by | ||||||
10 | the seller or agent of the seller, including an agent who | ||||||
11 | causes the product
to be delivered outside Illinois by a common | ||||||
12 | carrier or the U.S.
postal service.
| ||||||
13 | (e) A sale or transfer of machinery and equipment used | ||||||
14 | primarily in
the process of the manufacturing or assembling, | ||||||
15 | either in an existing, an
expanded or a new manufacturing | ||||||
16 | facility, of tangible personal property for
wholesale or retail | ||||||
17 | sale or lease, whether such sale or lease is made directly
by | ||||||
18 | the manufacturer or by some other person, whether the materials | ||||||
19 | used in the
process are owned by the manufacturer or some other | ||||||
20 | person, or whether such
sale or lease is made apart from or as | ||||||
21 | an incident to the seller's engaging in
a service occupation | ||||||
22 | and the applicable tax is a Service Occupation Tax or
Service | ||||||
23 | Use Tax, rather than Retailers' Occupation Tax or Use Tax. The | ||||||
24 | exemption provided by this paragraph (e) does not include | ||||||
25 | machinery and equipment used in (i) the generation of | ||||||
26 | electricity for wholesale or retail sale; (ii) the generation |
| |||||||
| |||||||
1 | or treatment of natural or artificial gas for wholesale or | ||||||
2 | retail sale that is delivered to customers through pipes, | ||||||
3 | pipelines, or mains; or (iii) the treatment of water for | ||||||
4 | wholesale or retail sale that is delivered to customers through | ||||||
5 | pipes, pipelines, or mains. The provisions of this amendatory | ||||||
6 | Act of the 98th General Assembly are declaratory of existing | ||||||
7 | law as to the meaning and scope of this exemption.
| ||||||
8 | (f) Until July 1, 2003, the sale or transfer of | ||||||
9 | distillation
machinery
and equipment, sold as a
unit or kit and | ||||||
10 | assembled or installed by the retailer, which machinery
and | ||||||
11 | equipment is certified by the user to be used only for the | ||||||
12 | production
of ethyl alcohol that will be used for consumption | ||||||
13 | as motor fuel or as a
component of motor fuel for the personal | ||||||
14 | use of such user and not subject
to sale or resale.
| ||||||
15 | (g) At the election of any serviceman not required to be | ||||||
16 | otherwise
registered as a retailer under Section 2a of the | ||||||
17 | Retailers' Occupation Tax Act,
made for each fiscal year sales | ||||||
18 | of service in which the aggregate annual cost
price of tangible | ||||||
19 | personal property transferred as an incident to the sales of
| ||||||
20 | service is less than 35% (75% in the case of servicemen | ||||||
21 | transferring
prescription drugs or servicemen engaged in | ||||||
22 | graphic arts production) of the
aggregate annual total gross | ||||||
23 | receipts from all sales of service. The purchase
of such | ||||||
24 | tangible personal property by the serviceman shall be subject | ||||||
25 | to tax
under the Retailers' Occupation Tax Act and the Use Tax | ||||||
26 | Act.
However, if a
primary serviceman who has made the election |
| |||||||
| |||||||
1 | described in this paragraph
subcontracts service work to a | ||||||
2 | secondary serviceman who has also made the
election described | ||||||
3 | in this paragraph, the primary serviceman does not
incur a Use | ||||||
4 | Tax liability if the secondary serviceman (i) has paid or will | ||||||
5 | pay
Use
Tax on his or her cost price of any tangible personal | ||||||
6 | property transferred
to the primary serviceman and (ii) | ||||||
7 | certifies that fact in writing to the
primary serviceman.
| ||||||
8 | Tangible personal property transferred incident to the | ||||||
9 | completion of a
maintenance agreement is exempt from the tax | ||||||
10 | imposed pursuant to this Act.
| ||||||
11 | Exemption (e) also includes machinery and equipment used in | ||||||
12 | the
general maintenance or repair of such exempt machinery and | ||||||
13 | equipment or for
in-house manufacture of exempt machinery and | ||||||
14 | equipment.
The machinery and equipment exemption does not | ||||||
15 | include machinery and equipment used in (i) the generation of | ||||||
16 | electricity for wholesale or retail sale; (ii) the generation | ||||||
17 | or treatment of natural or artificial gas for wholesale or | ||||||
18 | retail sale that is delivered to customers through pipes, | ||||||
19 | pipelines, or mains; or (iii) the treatment of water for | ||||||
20 | wholesale or retail sale that is delivered to customers through | ||||||
21 | pipes, pipelines, or mains. The provisions of this amendatory | ||||||
22 | Act of the 98th General Assembly are declaratory of existing | ||||||
23 | law as to the meaning and scope of this exemption. For the | ||||||
24 | purposes of exemption (e), each of these terms shall have the | ||||||
25 | following
meanings: (1) "manufacturing process" shall mean the | ||||||
26 | production of any
article of tangible personal property, |
| |||||||
| |||||||
1 | whether such article is a
finished product or an article for | ||||||
2 | use in the process of manufacturing
or assembling a different | ||||||
3 | article of tangible personal property, by
procedures commonly | ||||||
4 | regarded as manufacturing, processing, fabricating,
or | ||||||
5 | refining which changes some existing material or materials into | ||||||
6 | a
material with a different form, use or name. In relation to a
| ||||||
7 | recognized integrated business composed of a series of | ||||||
8 | operations which
collectively constitute manufacturing, or | ||||||
9 | individually constitute
manufacturing operations, the | ||||||
10 | manufacturing process shall be deemed to
commence with the | ||||||
11 | first operation or stage of production in the series,
and shall | ||||||
12 | not be deemed to end until the completion of the final product
| ||||||
13 | in the last operation or stage of production in the series; and | ||||||
14 | further for
purposes of exemption (e), photoprocessing is | ||||||
15 | deemed to be a manufacturing
process of tangible personal | ||||||
16 | property for wholesale or retail sale;
(2) "assembling process" | ||||||
17 | shall mean the production of any article of
tangible personal | ||||||
18 | property, whether such article is a finished product
or an | ||||||
19 | article for use in the process of manufacturing or assembling a
| ||||||
20 | different article of tangible personal property, by the | ||||||
21 | combination of
existing materials in a manner commonly regarded | ||||||
22 | as assembling which
results in a material of a different form, | ||||||
23 | use or name; (3) "machinery"
shall mean major mechanical | ||||||
24 | machines or major components of such machines
contributing to a | ||||||
25 | manufacturing or assembling process; and (4) "equipment"
shall | ||||||
26 | include any independent device or tool separate from any |
| |||||||
| |||||||
1 | machinery but
essential to an integrated manufacturing or | ||||||
2 | assembly process; including
computers used primarily in a | ||||||
3 | manufacturer's computer
assisted design, computer assisted | ||||||
4 | manufacturing (CAD/CAM) system; or any
subunit or assembly | ||||||
5 | comprising a component of any machinery or auxiliary,
adjunct | ||||||
6 | or attachment parts of machinery, such as tools, dies, jigs, | ||||||
7 | fixtures,
patterns and molds; or any parts which require | ||||||
8 | periodic replacement in the
course of normal operation; but | ||||||
9 | shall not include hand tools. Equipment
includes chemicals or | ||||||
10 | chemicals acting as catalysts but only if the chemicals
or | ||||||
11 | chemicals acting as catalysts effect a direct and immediate | ||||||
12 | change upon a
product being manufactured or assembled for | ||||||
13 | wholesale or retail sale or lease.
The purchaser of such | ||||||
14 | machinery and equipment
who has an active resale registration | ||||||
15 | number shall furnish such number to
the seller at the time of | ||||||
16 | purchase. The purchaser of such machinery and
equipment and | ||||||
17 | tools without an active resale registration number shall | ||||||
18 | furnish
to the seller a certificate of exemption for each | ||||||
19 | transaction stating facts
establishing the exemption for that | ||||||
20 | transaction, which certificate shall
be available to the | ||||||
21 | Department for inspection or audit.
| ||||||
22 | Except as provided in Section 2d of this Act, the rolling | ||||||
23 | stock exemption
applies to rolling
stock
used by an interstate
| ||||||
24 | carrier for hire, even just between points in Illinois, if such | ||||||
25 | rolling
stock transports, for hire, persons whose journeys or | ||||||
26 | property whose
shipments originate or terminate outside |
| |||||||
| |||||||
1 | Illinois.
| ||||||
2 | Any informal rulings, opinions or letters issued by the | ||||||
3 | Department in
response to an inquiry or request for any opinion | ||||||
4 | from any person
regarding the coverage and applicability of | ||||||
5 | exemption (e) to specific
devices shall be published, | ||||||
6 | maintained as a public record, and made
available for public | ||||||
7 | inspection and copying. If the informal ruling,
opinion or | ||||||
8 | letter contains trade secrets or other confidential
| ||||||
9 | information, where possible the Department shall delete such | ||||||
10 | information
prior to publication. Whenever such informal | ||||||
11 | rulings, opinions, or
letters contain any policy of general | ||||||
12 | applicability, the Department
shall formulate and adopt such | ||||||
13 | policy as a rule in accordance with the
provisions of the | ||||||
14 | Illinois Administrative Procedure Act.
| ||||||
15 | On and after July 1, 1987, no entity otherwise eligible | ||||||
16 | under exemption
(c) of this Section shall make tax free | ||||||
17 | purchases unless it has an active
exemption identification | ||||||
18 | number issued by the Department.
| ||||||
19 | "Serviceman" means any person who is engaged in the | ||||||
20 | occupation of
making sales of service.
| ||||||
21 | "Sale at Retail" means "sale at retail" as defined in the | ||||||
22 | Retailers'
Occupation Tax Act.
| ||||||
23 | "Supplier" means any person who makes sales of tangible | ||||||
24 | personal
property to servicemen for the purpose of resale as an | ||||||
25 | incident to a
sale of service.
| ||||||
26 | (Source: P.A. 98-583, eff. 1-1-14.)
|
| |||||||
| |||||||
1 | (35 ILCS 115/2d)
| ||||||
2 | Sec. 2d. Motor vehicles; trailers; use as rolling stock | ||||||
3 | definition. | ||||||
4 | (a) (Blank). Through June
30, 2003, "use as
rolling stock | ||||||
5 | moving in
interstate commerce" in subsections (d) and (d-1) of | ||||||
6 | the definition of "sale of
service" in Section 2 means for | ||||||
7 | motor vehicles, as defined in Section 1-146 of
the Illinois | ||||||
8 | Vehicle Code, and trailers, as defined in Section 1-209 of the
| ||||||
9 | Illinois Vehicle Code, when on 15 or more occasions in a | ||||||
10 | 12-month period the
motor vehicle and trailer has carried | ||||||
11 | persons or property for hire in
interstate commerce, even just | ||||||
12 | between points in Illinois, if the motor vehicle
and trailer | ||||||
13 | transports persons whose journeys or property whose shipments
| ||||||
14 | originate or terminate outside Illinois.
This definition | ||||||
15 | applies to all property purchased for the purpose of being
| ||||||
16 | attached to those motor vehicles or trailers as a part thereof.
| ||||||
17 | (b) (Blank). On and after July 1, 2003 and through June 30, | ||||||
18 | 2004, "use as rolling stock moving in interstate
commerce" in
| ||||||
19 | paragraphs (d) and (d-1) of the definition of "sale of service" | ||||||
20 | in
Section 2 occurs for motor vehicles, as defined in Section | ||||||
21 | 1-146 of the
Illinois Vehicle Code,
when during a 12-month | ||||||
22 | period the rolling stock has carried persons or property
for | ||||||
23 | hire
in interstate commerce for 51% of its total trips and | ||||||
24 | transports persons whose
journeys or
property whose shipments | ||||||
25 | originate or terminate outside Illinois. Trips that
are only
|
| |||||||
| |||||||
1 | between points in Illinois will not be counted as interstate | ||||||
2 | trips when
calculating whether
the tangible personal property | ||||||
3 | qualifies for the exemption but such trips will
be included
in | ||||||
4 | total trips taken.
| ||||||
5 | (c) This subsection (c) applies to motor vehicles, other | ||||||
6 | than limousines, purchased through June 30, 2017. For motor | ||||||
7 | vehicles, other than limousines, purchased on or after July 1, | ||||||
8 | 2017, subsection (d-5) applies. This subsection (c) applies to | ||||||
9 | limousines purchased before, on, or after July 1, 2017. "Use | ||||||
10 | Beginning July 1, 2004, "use as rolling stock moving in | ||||||
11 | interstate commerce" in paragraph paragraphs (d) and (d-1) of | ||||||
12 | the definition of "sale of service" in Section 2 occurs for | ||||||
13 | motor vehicles, as defined in Section 1-146 of the Illinois | ||||||
14 | Vehicle Code, when during a 12-month period the rolling stock | ||||||
15 | has carried persons or property for hire in interstate commerce | ||||||
16 | for greater than 50% of its total trips for that period or for | ||||||
17 | greater than 50% of its total miles for that period. The person | ||||||
18 | claiming the exemption shall make an election at the time of | ||||||
19 | purchase to use either the trips or mileage method. Persons who | ||||||
20 | purchased motor vehicles prior to July 1, 2004 shall make an | ||||||
21 | election to use either the trips or mileage method and document | ||||||
22 | that election in their books and records. If no election is | ||||||
23 | made under this subsection to use the trips or mileage method, | ||||||
24 | the person shall be deemed to have chosen the mileage method. | ||||||
25 | For purposes of determining qualifying trips or miles, | ||||||
26 | motor vehicles that carry persons or property for hire, even |
| |||||||
| |||||||
1 | just between points in Illinois, will be considered used for | ||||||
2 | hire in interstate commerce if the motor vehicle transports | ||||||
3 | persons whose journeys or property whose shipments originate or | ||||||
4 | terminate outside Illinois. The exemption for motor vehicles
| ||||||
5 | used as rolling stock moving in interstate commerce may be
| ||||||
6 | claimed only for the following vehicles: (i) motor vehicles | ||||||
7 | whose gross vehicle weight
rating exceeds 16,000 pounds; and | ||||||
8 | (ii) limousines, as defined in Section 1-139.1 of the Illinois | ||||||
9 | Vehicle Code. Through June 30, 2017, this This definition | ||||||
10 | applies to all property purchased for the purpose of being | ||||||
11 | attached to those motor vehicles as a part thereof. On and | ||||||
12 | after July 1, 2017, this definition applies to property | ||||||
13 | purchased for the purpose of being attached to limousines as a | ||||||
14 | part thereof. | ||||||
15 | (d) For purchases made through June 30, 2017 Beginning July | ||||||
16 | 1, 2004 , "use as rolling stock moving in interstate commerce" | ||||||
17 | in paragraph paragraphs (d) and (d-1) of the definition of | ||||||
18 | "sale of service" in Section 2 occurs for trailers, as defined | ||||||
19 | in Section 1-209 of the Illinois Vehicle Code, semitrailers as | ||||||
20 | defined in Section 1-187 of the Illinois Vehicle Code, and pole | ||||||
21 | trailers as defined in Section 1-161 of the Illinois Vehicle | ||||||
22 | Code, when during a 12-month period the rolling stock has | ||||||
23 | carried persons or property for hire in interstate commerce for | ||||||
24 | greater than 50% of its total trips for that period or for | ||||||
25 | greater than 50% of its total miles for that period. The person | ||||||
26 | claiming the exemption for a trailer or trailers that will not |
| |||||||
| |||||||
1 | be dedicated to a motor vehicle or group of motor vehicles | ||||||
2 | shall make an election at the time of purchase to use either | ||||||
3 | the trips or mileage method. Persons who purchased trailers | ||||||
4 | prior to July 1, 2004 that are not dedicated to a motor vehicle | ||||||
5 | or group of motor vehicles shall make an election to use either | ||||||
6 | the trips or mileage method and document that election in their | ||||||
7 | books and records. If no election is made under this subsection | ||||||
8 | to use the trips or mileage method, the person shall be deemed | ||||||
9 | to have chosen the mileage method. | ||||||
10 | For purposes of determining qualifying trips or miles, | ||||||
11 | trailers, semitrailers, or pole trailers that carry property | ||||||
12 | for hire, even just between points in Illinois, will be | ||||||
13 | considered used for hire in interstate commerce if the | ||||||
14 | trailers, semitrailers, or pole trailers transport property | ||||||
15 | whose shipments originate or terminate outside Illinois. This | ||||||
16 | definition applies to all property purchased for the purpose of | ||||||
17 | being attached to those trailers, semitrailers, or pole | ||||||
18 | trailers as a part thereof. In lieu of a person providing | ||||||
19 | documentation regarding the qualifying use of each individual | ||||||
20 | trailer, semitrailer, or pole trailer, that person may document | ||||||
21 | such qualifying use by providing documentation of the | ||||||
22 | following: | ||||||
23 | (1) If a trailer, semitrailer, or pole trailer is | ||||||
24 | dedicated to a motor vehicle that qualifies as rolling | ||||||
25 | stock moving in interstate commerce under subsection (c) of | ||||||
26 | this Section, then that trailer, semitrailer, or pole |
| |||||||
| |||||||
1 | trailer qualifies as rolling stock moving in interstate | ||||||
2 | commerce under this subsection. | ||||||
3 | (2) If a trailer, semitrailer, or pole trailer is | ||||||
4 | dedicated to a group of motor vehicles that all qualify as | ||||||
5 | rolling stock moving in interstate commerce under | ||||||
6 | subsection (c) of this Section, then that trailer, | ||||||
7 | semitrailer, or pole trailer qualifies as rolling stock | ||||||
8 | moving in interstate commerce under this subsection. | ||||||
9 | (3) If one or more trailers, semitrailers, or pole | ||||||
10 | trailers are dedicated to a group of motor vehicles and not | ||||||
11 | all of those motor vehicles in that group qualify as | ||||||
12 | rolling stock moving in interstate commerce under | ||||||
13 | subsection (c) of this Section, then the percentage of | ||||||
14 | those trailers, semitrailers, or pole trailers that | ||||||
15 | qualifies as rolling stock moving in interstate commerce | ||||||
16 | under this subsection is equal to the percentage of those | ||||||
17 | motor vehicles in that group that qualify as rolling stock | ||||||
18 | moving in interstate commerce under subsection (c) of this | ||||||
19 | Section to which those trailers, semitrailers, or pole | ||||||
20 | trailers are dedicated. However, to determine the | ||||||
21 | qualification for the exemption provided under this item | ||||||
22 | (3), the mathematical application of the qualifying | ||||||
23 | percentage to one or more trailers, semitrailers, or pole | ||||||
24 | trailers under this subpart shall not be allowed as to any | ||||||
25 | fraction of a trailer, semitrailer, or pole trailer.
| ||||||
26 | (d-5) For motor vehicles and trailers purchased on or after |
| |||||||
| |||||||
1 | July 1, 2017, "use as rolling stock moving in interstate | ||||||
2 | commerce" means that: | ||||||
3 | (1) the motor vehicle or trailer is used to transport | ||||||
4 | persons or property for hire; | ||||||
5 | (2) for purposes of the exemption under paragraph (d-1) | ||||||
6 | of the definition of "sale of service" in Section 2, the | ||||||
7 | purchaser who is an owner, lessor, or shipper claiming the | ||||||
8 | exemption certifies that the motor vehicle or trailer will | ||||||
9 | be utilized, from the time of purchase and continuing | ||||||
10 | through the statute of limitations for issuing a notice of | ||||||
11 | tax liability under this Act, by an interstate carrier or | ||||||
12 | carriers for hire who hold, and are required by Federal | ||||||
13 | Motor Carrier Safety Administration regulations to hold, | ||||||
14 | an active USDOT Number with the Carrier Operation listed as | ||||||
15 | "Interstate" and the Operation Classification listed as | ||||||
16 | "authorized for hire", "exempt for hire", or both | ||||||
17 | "authorized for hire" and "exempt for hire"; except that | ||||||
18 | this paragraph (2) does not apply to a motor vehicle or | ||||||
19 | trailer used at an airport to support the operation of an | ||||||
20 | aircraft moving in interstate commerce, as long as (i) in | ||||||
21 | the case of a motor vehicle, the motor vehicle meets | ||||||
22 | paragraphs (1) and (3) of this subsection (d-5) or (ii) in | ||||||
23 | the case of a trailer, the trailer meets paragraph (1) of | ||||||
24 | this subsection (d-5); and | ||||||
25 | (3) for motor vehicles, the gross vehicle weight rating | ||||||
26 | exceeds 16,000 pounds. |
| |||||||
| |||||||
1 | The definition of "use as rolling stock moving in | ||||||
2 | interstate commerce" in this subsection (d-5) applies to all | ||||||
3 | property purchased on or after July 1, 2017 for the purpose of | ||||||
4 | being attached to a motor vehicle or trailer as a part thereof, | ||||||
5 | regardless of whether the motor vehicle or trailer was | ||||||
6 | purchased before, on, or after July 1, 2017. | ||||||
7 | If an item ceases to meet requirements (1) through (3) | ||||||
8 | under this subsection (d-5), then the tax is imposed on the | ||||||
9 | selling price, allowing for a reasonable depreciation for the | ||||||
10 | period during which the item qualified for the exemption. | ||||||
11 | For purposes of this subsection (d-5): | ||||||
12 | "Motor vehicle" excludes limousines, but otherwise | ||||||
13 | means that term as defined in Section 1-146 of the Illinois | ||||||
14 | Vehicle Code. | ||||||
15 | "Trailer" means (i) "trailer", as defined in Section | ||||||
16 | 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as | ||||||
17 | defined in Section 1-187 of the Illinois Vehicle Code, and | ||||||
18 | (iii) "pole trailer", as defined in Section 1-161 of the | ||||||
19 | Illinois Vehicle Code. | ||||||
20 | (e) For aircraft and watercraft purchased on or after | ||||||
21 | January 1 2014, "use as rolling stock moving in interstate | ||||||
22 | commerce" in paragraph paragraphs (d) and (d-1) of the | ||||||
23 | definition of "sale of service" in Section 2 occurs when, | ||||||
24 | during a 12-month period, the rolling stock has carried persons | ||||||
25 | or property for hire in interstate commerce for greater than | ||||||
26 | 50% of its total trips for that period or for greater than 50% |
| |||||||
| |||||||
1 | of its total miles for that period. The person claiming the | ||||||
2 | exemption shall make an election at the time of purchase to use | ||||||
3 | either the trips or mileage method and document that election | ||||||
4 | in their books and records. If no election is made under this | ||||||
5 | subsection to use the trips or mileage method, the person shall | ||||||
6 | be deemed to have chosen the mileage method. For aircraft, | ||||||
7 | flight hours may be used in lieu of recording miles in | ||||||
8 | determining whether the aircraft meets the mileage test in this | ||||||
9 | subsection. For watercraft, nautical miles or trip hours may be | ||||||
10 | used in lieu of recording miles in determining whether the | ||||||
11 | watercraft meets the mileage test in this subsection. | ||||||
12 | Notwithstanding any other provision of law to the contrary, | ||||||
13 | property purchased on or after January 1, 2014 for the purpose | ||||||
14 | of being attached to aircraft or watercraft as a part thereof | ||||||
15 | qualifies as rolling stock moving in interstate commerce only | ||||||
16 | if the aircraft or watercraft to which it will be attached | ||||||
17 | qualifies as rolling stock moving in interstate commerce under | ||||||
18 | the test set forth in this subsection (e), regardless of when | ||||||
19 | the aircraft or watercraft was purchased. Persons who purchased | ||||||
20 | aircraft or watercraft prior to January 1, 2014 shall make an | ||||||
21 | election to use either the trips or mileage method and document | ||||||
22 | that election in their books and records for the purpose of | ||||||
23 | determining whether property purchased on or after January 1, | ||||||
24 | 2014 for the purpose of being attached to aircraft or | ||||||
25 | watercraft as a part thereof qualifies as rolling stock moving | ||||||
26 | in interstate commerce under this subsection (e). |
| |||||||
| |||||||
1 | (f) The election to use either the trips or mileage method | ||||||
2 | made under the provisions of subsections (c), (d), or (e) of | ||||||
3 | this Section will remain in effect for the duration of the | ||||||
4 | purchaser's ownership of that item. | ||||||
5 | (Source: P.A. 98-584, eff. 8-27-13.)
| ||||||
6 | Section 20. The Retailers' Occupation Tax Act is amended by | ||||||
7 | changing Sections 2-5 and 2-51 as follows:
| ||||||
8 | (35 ILCS 120/2-5)
| ||||||
9 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
10 | sale of
the following tangible personal property are exempt | ||||||
11 | from the tax imposed
by this Act:
| ||||||
12 | (1) Farm chemicals.
| ||||||
13 | (2) Farm machinery and equipment, both new and used, | ||||||
14 | including that
manufactured on special order, certified by the | ||||||
15 | purchaser to be used
primarily for production agriculture or | ||||||
16 | State or federal agricultural
programs, including individual | ||||||
17 | replacement parts for the machinery and
equipment, including | ||||||
18 | machinery and equipment purchased for lease,
and including | ||||||
19 | implements of husbandry defined in Section 1-130 of
the | ||||||
20 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
21 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
22 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
23 | but
excluding other motor vehicles required to be registered | ||||||
24 | under the Illinois
Vehicle Code.
Horticultural polyhouses or |
| |||||||
| |||||||
1 | hoop houses used for propagating, growing, or
overwintering | ||||||
2 | plants shall be considered farm machinery and equipment under
| ||||||
3 | this item (2).
Agricultural chemical tender tanks and dry boxes | ||||||
4 | shall include units sold
separately from a motor vehicle | ||||||
5 | required to be licensed and units sold mounted
on a motor | ||||||
6 | vehicle required to be licensed, if the selling price of the | ||||||
7 | tender
is separately stated.
| ||||||
8 | Farm machinery and equipment shall include precision | ||||||
9 | farming equipment
that is
installed or purchased to be | ||||||
10 | installed on farm machinery and equipment
including, but not | ||||||
11 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
12 | or spreaders.
Precision farming equipment includes, but is not | ||||||
13 | limited to,
soil testing sensors, computers, monitors, | ||||||
14 | software, global positioning
and mapping systems, and other | ||||||
15 | such equipment.
| ||||||
16 | Farm machinery and equipment also includes computers, | ||||||
17 | sensors, software, and
related equipment used primarily in the
| ||||||
18 | computer-assisted operation of production agriculture | ||||||
19 | facilities, equipment,
and activities such as, but
not limited | ||||||
20 | to,
the collection, monitoring, and correlation of
animal and | ||||||
21 | crop data for the purpose of
formulating animal diets and | ||||||
22 | agricultural chemicals. This item (2) is exempt
from the | ||||||
23 | provisions of
Section 2-70.
| ||||||
24 | (3) Until July 1, 2003, distillation machinery and | ||||||
25 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
26 | retailer, certified by the user to be used
only for the |
| |||||||
| |||||||
1 | production of ethyl alcohol that will be used for consumption
| ||||||
2 | as motor fuel or as a component of motor fuel for the personal | ||||||
3 | use of the
user, and not subject to sale or resale.
| ||||||
4 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
5 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
6 | equipment, including
repair and
replacement parts, both new and | ||||||
7 | used, and including that manufactured on
special order or | ||||||
8 | purchased for lease, certified by the purchaser to be used
| ||||||
9 | primarily for graphic arts production.
Equipment includes | ||||||
10 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
11 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
12 | immediate
change upon a
graphic arts product.
| ||||||
13 | (5) A motor vehicle that is used for automobile renting, as | ||||||
14 | defined in the Automobile Renting Occupation and Use Tax Act. | ||||||
15 | This paragraph is exempt from
the provisions of Section 2-70.
| ||||||
16 | (6) Personal property sold by a teacher-sponsored student | ||||||
17 | organization
affiliated with an elementary or secondary school | ||||||
18 | located in Illinois.
| ||||||
19 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
20 | selling price of
a passenger car the
sale of which is subject | ||||||
21 | to the Replacement Vehicle Tax.
| ||||||
22 | (8) Personal property sold to an Illinois county fair | ||||||
23 | association for
use in conducting, operating, or promoting the | ||||||
24 | county fair.
| ||||||
25 | (9) Personal property sold to a not-for-profit arts
or | ||||||
26 | cultural organization that establishes, by proof required by |
| |||||||
| |||||||
1 | the Department
by
rule, that it has received an exemption under | ||||||
2 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
3 | organized and operated primarily for the
presentation
or | ||||||
4 | support of arts or cultural programming, activities, or | ||||||
5 | services. These
organizations include, but are not limited to, | ||||||
6 | music and dramatic arts
organizations such as symphony | ||||||
7 | orchestras and theatrical groups, arts and
cultural service | ||||||
8 | organizations, local arts councils, visual arts organizations,
| ||||||
9 | and media arts organizations.
On and after the effective date | ||||||
10 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
11 | an entity otherwise eligible for this exemption shall not
make | ||||||
12 | tax-free purchases unless it has an active identification | ||||||
13 | number issued by
the Department.
| ||||||
14 | (10) Personal property sold by a corporation, society, | ||||||
15 | association,
foundation, institution, or organization, other | ||||||
16 | than a limited liability
company, that is organized and | ||||||
17 | operated as a not-for-profit service enterprise
for the benefit | ||||||
18 | of persons 65 years of age or older if the personal property
| ||||||
19 | was not purchased by the enterprise for the purpose of resale | ||||||
20 | by the
enterprise.
| ||||||
21 | (11) Personal property sold to a governmental body, to a | ||||||
22 | corporation,
society, association, foundation, or institution | ||||||
23 | organized and operated
exclusively for charitable, religious, | ||||||
24 | or educational purposes, or to a
not-for-profit corporation, | ||||||
25 | society, association, foundation, institution,
or organization | ||||||
26 | that has no compensated officers or employees and that is
|
| |||||||
| |||||||
1 | organized and operated primarily for the recreation of persons | ||||||
2 | 55 years of
age or older. A limited liability company may | ||||||
3 | qualify for the exemption under
this paragraph only if the | ||||||
4 | limited liability company is organized and operated
| ||||||
5 | exclusively for educational purposes. On and after July 1, | ||||||
6 | 1987, however, no
entity otherwise eligible for this exemption | ||||||
7 | shall make tax-free purchases
unless it has an active | ||||||
8 | identification number issued by the Department.
| ||||||
9 | (12) (Blank). Tangible personal property sold to
| ||||||
10 | interstate carriers
for hire for use as
rolling stock moving in | ||||||
11 | interstate commerce or to lessors under leases of
one year or | ||||||
12 | longer executed or in effect at the time of purchase by
| ||||||
13 | interstate carriers for hire for use as rolling stock moving in | ||||||
14 | interstate
commerce and equipment operated by a | ||||||
15 | telecommunications provider, licensed as a
common carrier by | ||||||
16 | the Federal Communications Commission, which is permanently
| ||||||
17 | installed in or affixed to aircraft moving in interstate | ||||||
18 | commerce.
| ||||||
19 | (12-5) On and after July 1, 2003 and through June 30, 2004, | ||||||
20 | motor vehicles of the second division
with a gross vehicle | ||||||
21 | weight in excess of 8,000 pounds
that
are
subject to the | ||||||
22 | commercial distribution fee imposed under Section 3-815.1 of
| ||||||
23 | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||||||
24 | through June 30, 2005, the use in this State of motor vehicles | ||||||
25 | of the second division: (i) with a gross vehicle weight rating | ||||||
26 | in excess of 8,000 pounds; (ii) that are subject to the |
| |||||||
| |||||||
1 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
2 | the Illinois Vehicle Code; and (iii) that are primarily used | ||||||
3 | for commercial purposes. Through June 30, 2005, this
exemption | ||||||
4 | applies to repair and replacement parts added
after the
initial | ||||||
5 | purchase of such a motor vehicle if that motor vehicle is used | ||||||
6 | in a
manner that
would qualify for the rolling stock exemption | ||||||
7 | otherwise provided for in this
Act. For purposes of this | ||||||
8 | paragraph, "used for commercial purposes" means the | ||||||
9 | transportation of persons or property in furtherance of any | ||||||
10 | commercial or industrial enterprise whether for-hire or not.
| ||||||
11 | (13) Proceeds from sales to owners, lessors, or
shippers of
| ||||||
12 | tangible personal property that is utilized by interstate | ||||||
13 | carriers for
hire for use as rolling stock moving in interstate | ||||||
14 | commerce
and equipment operated by a telecommunications | ||||||
15 | provider, licensed as a
common carrier by the Federal | ||||||
16 | Communications Commission, which is
permanently installed in | ||||||
17 | or affixed to aircraft moving in interstate commerce.
| ||||||
18 | (14) Machinery and equipment that will be used by the | ||||||
19 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
20 | process of manufacturing or
assembling tangible personal | ||||||
21 | property for wholesale or retail sale or
lease, whether the | ||||||
22 | sale or lease is made directly by the manufacturer or by
some | ||||||
23 | other person, whether the materials used in the process are | ||||||
24 | owned by
the manufacturer or some other person, or whether the | ||||||
25 | sale or lease is made
apart from or as an incident to the | ||||||
26 | seller's engaging in the service
occupation of producing |
| |||||||
| |||||||
1 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
2 | items of no commercial value on special order for a particular
| ||||||
3 | purchaser. The exemption provided by this paragraph (14) does | ||||||
4 | not include machinery and equipment used in (i) the generation | ||||||
5 | of electricity for wholesale or retail sale; (ii) the | ||||||
6 | generation or treatment of natural or artificial gas for | ||||||
7 | wholesale or retail sale that is delivered to customers through | ||||||
8 | pipes, pipelines, or mains; or (iii) the treatment of water for | ||||||
9 | wholesale or retail sale that is delivered to customers through | ||||||
10 | pipes, pipelines, or mains. The provisions of Public Act 98-583 | ||||||
11 | are declaratory of existing law as to the meaning and scope of | ||||||
12 | this exemption.
| ||||||
13 | (15) Proceeds of mandatory service charges separately | ||||||
14 | stated on
customers' bills for purchase and consumption of food | ||||||
15 | and beverages, to the
extent that the proceeds of the service | ||||||
16 | charge are in fact turned over as
tips or as a substitute for | ||||||
17 | tips to the employees who participate directly
in preparing, | ||||||
18 | serving, hosting or cleaning up the food or beverage function
| ||||||
19 | with respect to which the service charge is imposed.
| ||||||
20 | (16) Petroleum products sold to a purchaser if the seller
| ||||||
21 | is prohibited by federal law from charging tax to the | ||||||
22 | purchaser.
| ||||||
23 | (17) Tangible personal property sold to a common carrier by | ||||||
24 | rail or
motor that
receives the physical possession of the | ||||||
25 | property in Illinois and that
transports the property, or | ||||||
26 | shares with another common carrier in the
transportation of the |
| |||||||
| |||||||
1 | property, out of Illinois on a standard uniform bill
of lading | ||||||
2 | showing the seller of the property as the shipper or consignor | ||||||
3 | of
the property to a destination outside Illinois, for use | ||||||
4 | outside Illinois.
| ||||||
5 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
6 | coinage
issued by the State of Illinois, the government of the | ||||||
7 | United States of
America, or the government of any foreign | ||||||
8 | country, and bullion.
| ||||||
9 | (19) Until July 1 2003, oil field exploration, drilling, | ||||||
10 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
11 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
12 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
13 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
14 | individual replacement part for oil field exploration,
| ||||||
15 | drilling, and production equipment, and (vi) machinery and | ||||||
16 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
17 | required to be registered under the Illinois
Vehicle Code.
| ||||||
18 | (20) Photoprocessing machinery and equipment, including | ||||||
19 | repair and
replacement parts, both new and used, including that | ||||||
20 | manufactured on
special order, certified by the purchaser to be | ||||||
21 | used primarily for
photoprocessing, and including | ||||||
22 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
23 | (21) Coal and aggregate exploration, mining, off-highway | ||||||
24 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
25 | including
replacement parts and equipment, and including
| ||||||
26 | equipment purchased for lease, but excluding motor vehicles |
| |||||||
| |||||||
1 | required to be
registered under the Illinois Vehicle Code. The | ||||||
2 | changes made to this Section by Public Act 97-767 apply on and | ||||||
3 | after July 1, 2003, but no claim for credit or refund is | ||||||
4 | allowed on or after August 16, 2013 (the effective date of | ||||||
5 | Public Act 98-456)
for such taxes paid during the period | ||||||
6 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
7 | effective date of Public Act 98-456).
| ||||||
8 | (22) Until June 30, 2013, fuel and petroleum products sold | ||||||
9 | to or used by an air carrier,
certified by the carrier to be | ||||||
10 | used for consumption, shipment, or storage
in the conduct of | ||||||
11 | its business as an air common carrier, for a flight
destined | ||||||
12 | for or returning from a location or locations
outside the | ||||||
13 | United States without regard to previous or subsequent domestic
| ||||||
14 | stopovers.
| ||||||
15 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
16 | or used by an air carrier, certified by the carrier to be used | ||||||
17 | for consumption, shipment, or storage in the conduct of its | ||||||
18 | business as an air common carrier, for a flight that (i) is | ||||||
19 | engaged in foreign trade or is engaged in trade between the | ||||||
20 | United States and any of its possessions and (ii) transports at | ||||||
21 | least one individual or package for hire from the city of | ||||||
22 | origination to the city of final destination on the same | ||||||
23 | aircraft, without regard to a change in the flight number of | ||||||
24 | that aircraft. | ||||||
25 | (23) A transaction in which the purchase order is received | ||||||
26 | by a florist
who is located outside Illinois, but who has a |
| |||||||
| |||||||
1 | florist located in Illinois
deliver the property to the | ||||||
2 | purchaser or the purchaser's donee in Illinois.
| ||||||
3 | (24) Fuel consumed or used in the operation of ships, | ||||||
4 | barges, or vessels
that are used primarily in or for the | ||||||
5 | transportation of property or the
conveyance of persons for | ||||||
6 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
7 | by the seller to the purchaser's barge, ship, or vessel
while | ||||||
8 | it is afloat upon that bordering river.
| ||||||
9 | (25) Except as provided in item (25-5) of this Section, a
| ||||||
10 | motor vehicle sold in this State to a nonresident even though | ||||||
11 | the
motor vehicle is delivered to the nonresident in this | ||||||
12 | State, if the motor
vehicle is not to be titled in this State, | ||||||
13 | and if a drive-away permit
is issued to the motor vehicle as | ||||||
14 | provided in Section 3-603 of the Illinois
Vehicle Code or if | ||||||
15 | the nonresident purchaser has vehicle registration
plates to | ||||||
16 | transfer to the motor vehicle upon returning to his or her home
| ||||||
17 | state. The issuance of the drive-away permit or having
the
| ||||||
18 | out-of-state registration plates to be transferred is prima | ||||||
19 | facie evidence
that the motor vehicle will not be titled in | ||||||
20 | this State.
| ||||||
21 | (25-5) The exemption under item (25) does not apply if the | ||||||
22 | state in which the motor vehicle will be titled does not allow | ||||||
23 | a reciprocal exemption for a motor vehicle sold and delivered | ||||||
24 | in that state to an Illinois resident but titled in Illinois. | ||||||
25 | The tax collected under this Act on the sale of a motor vehicle | ||||||
26 | in this State to a resident of another state that does not |
| |||||||
| |||||||
1 | allow a reciprocal exemption shall be imposed at a rate equal | ||||||
2 | to the state's rate of tax on taxable property in the state in | ||||||
3 | which the purchaser is a resident, except that the tax shall | ||||||
4 | not exceed the tax that would otherwise be imposed under this | ||||||
5 | Act. At the time of the sale, the purchaser shall execute a | ||||||
6 | statement, signed under penalty of perjury, of his or her | ||||||
7 | intent to title the vehicle in the state in which the purchaser | ||||||
8 | is a resident within 30 days after the sale and of the fact of | ||||||
9 | the payment to the State of Illinois of tax in an amount | ||||||
10 | equivalent to the state's rate of tax on taxable property in | ||||||
11 | his or her state of residence and shall submit the statement to | ||||||
12 | the appropriate tax collection agency in his or her state of | ||||||
13 | residence. In addition, the retailer must retain a signed copy | ||||||
14 | of the statement in his or her records. Nothing in this item | ||||||
15 | shall be construed to require the removal of the vehicle from | ||||||
16 | this state following the filing of an intent to title the | ||||||
17 | vehicle in the purchaser's state of residence if the purchaser | ||||||
18 | titles the vehicle in his or her state of residence within 30 | ||||||
19 | days after the date of sale. The tax collected under this Act | ||||||
20 | in accordance with this item (25-5) shall be proportionately | ||||||
21 | distributed as if the tax were collected at the 6.25% general | ||||||
22 | rate imposed under this Act.
| ||||||
23 | (25-7) Beginning on July 1, 2007, no tax is imposed under | ||||||
24 | this Act on the sale of an aircraft, as defined in Section 3 of | ||||||
25 | the Illinois Aeronautics Act, if all of the following | ||||||
26 | conditions are met: |
| |||||||
| |||||||
1 | (1) the aircraft leaves this State within 15 days after | ||||||
2 | the later of either the issuance of the final billing for | ||||||
3 | the sale of the aircraft, or the authorized approval for | ||||||
4 | return to service, completion of the maintenance record | ||||||
5 | entry, and completion of the test flight and ground test | ||||||
6 | for inspection, as required by 14 C.F.R. 91.407; | ||||||
7 | (2) the aircraft is not based or registered in this | ||||||
8 | State after the sale of the aircraft; and | ||||||
9 | (3) the seller retains in his or her books and records | ||||||
10 | and provides to the Department a signed and dated | ||||||
11 | certification from the purchaser, on a form prescribed by | ||||||
12 | the Department, certifying that the requirements of this | ||||||
13 | item (25-7) are met. The certificate must also include the | ||||||
14 | name and address of the purchaser, the address of the | ||||||
15 | location where the aircraft is to be titled or registered, | ||||||
16 | the address of the primary physical location of the | ||||||
17 | aircraft, and other information that the Department may | ||||||
18 | reasonably require. | ||||||
19 | For purposes of this item (25-7): | ||||||
20 | "Based in this State" means hangared, stored, or otherwise | ||||||
21 | used, excluding post-sale customizations as defined in this | ||||||
22 | Section, for 10 or more days in each 12-month period | ||||||
23 | immediately following the date of the sale of the aircraft. | ||||||
24 | "Registered in this State" means an aircraft registered | ||||||
25 | with the Department of Transportation, Aeronautics Division, | ||||||
26 | or titled or registered with the Federal Aviation |
| |||||||
| |||||||
1 | Administration to an address located in this State. | ||||||
2 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
3 | Section 2-70.
| ||||||
4 | (26) Semen used for artificial insemination of livestock | ||||||
5 | for direct
agricultural production.
| ||||||
6 | (27) Horses, or interests in horses, registered with and | ||||||
7 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
8 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
9 | Horse Association, United States
Trotting Association, or | ||||||
10 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
11 | racing for prizes. This item (27) is exempt from the provisions | ||||||
12 | of Section 2-70, and the exemption provided for under this item | ||||||
13 | (27) applies for all periods beginning May 30, 1995, but no | ||||||
14 | claim for credit or refund is allowed on or after January 1, | ||||||
15 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
16 | paid during the period beginning May 30, 2000 and ending on | ||||||
17 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
18 | (28) Computers and communications equipment utilized for | ||||||
19 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
20 | analysis, or treatment of hospital patients sold to a lessor | ||||||
21 | who leases the
equipment, under a lease of one year or longer | ||||||
22 | executed or in effect at the
time of the purchase, to a
| ||||||
23 | hospital
that has been issued an active tax exemption | ||||||
24 | identification number by the
Department under Section 1g of | ||||||
25 | this Act.
| ||||||
26 | (29) Personal property sold to a lessor who leases the
|
| |||||||
| |||||||
1 | property, under a
lease of one year or longer executed or in | ||||||
2 | effect at the time of the purchase,
to a governmental body
that | ||||||
3 | has been issued an active tax exemption identification number | ||||||
4 | by the
Department under Section 1g of this Act.
| ||||||
5 | (30) Beginning with taxable years ending on or after | ||||||
6 | December
31, 1995
and
ending with taxable years ending on or | ||||||
7 | before December 31, 2004,
personal property that is
donated for | ||||||
8 | disaster relief to be used in a State or federally declared
| ||||||
9 | disaster area in Illinois or bordering Illinois by a | ||||||
10 | manufacturer or retailer
that is registered in this State to a | ||||||
11 | corporation, society, association,
foundation, or institution | ||||||
12 | that has been issued a sales tax exemption
identification | ||||||
13 | number by the Department that assists victims of the disaster
| ||||||
14 | who reside within the declared disaster area.
| ||||||
15 | (31) Beginning with taxable years ending on or after | ||||||
16 | December
31, 1995 and
ending with taxable years ending on or | ||||||
17 | before December 31, 2004, personal
property that is used in the | ||||||
18 | performance of infrastructure repairs in this
State, including | ||||||
19 | but not limited to municipal roads and streets, access roads,
| ||||||
20 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
21 | line extensions,
water distribution and purification | ||||||
22 | facilities, storm water drainage and
retention facilities, and | ||||||
23 | sewage treatment facilities, resulting from a State
or | ||||||
24 | federally declared disaster in Illinois or bordering Illinois | ||||||
25 | when such
repairs are initiated on facilities located in the | ||||||
26 | declared disaster area
within 6 months after the disaster.
|
| |||||||
| |||||||
1 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
2 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
3 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
4 | provisions
of
Section 2-70.
| ||||||
5 | (33) A motor vehicle, as that term is defined in Section | ||||||
6 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
7 | corporation, limited liability
company, society, association, | ||||||
8 | foundation, or institution that is determined by
the Department | ||||||
9 | to be organized and operated exclusively for educational
| ||||||
10 | purposes. For purposes of this exemption, "a corporation, | ||||||
11 | limited liability
company, society, association, foundation, | ||||||
12 | or institution organized and
operated
exclusively for | ||||||
13 | educational purposes" means all tax-supported public schools,
| ||||||
14 | private schools that offer systematic instruction in useful | ||||||
15 | branches of
learning by methods common to public schools and | ||||||
16 | that compare favorably in
their scope and intensity with the | ||||||
17 | course of study presented in tax-supported
schools, and | ||||||
18 | vocational or technical schools or institutes organized and
| ||||||
19 | operated exclusively to provide a course of study of not less | ||||||
20 | than 6 weeks
duration and designed to prepare individuals to | ||||||
21 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
22 | industrial, business, or commercial
occupation.
| ||||||
23 | (34) Beginning January 1, 2000, personal property, | ||||||
24 | including food, purchased
through fundraising events for the | ||||||
25 | benefit of a public or private elementary or
secondary school, | ||||||
26 | a group of those schools, or one or more school districts if
|
| |||||||
| |||||||
1 | the events are sponsored by an entity recognized by the school | ||||||
2 | district that
consists primarily of volunteers and includes | ||||||
3 | parents and teachers of the
school children. This paragraph | ||||||
4 | does not apply to fundraising events (i) for
the benefit of | ||||||
5 | private home instruction or (ii) for which the fundraising
| ||||||
6 | entity purchases the personal property sold at the events from | ||||||
7 | another
individual or entity that sold the property for the | ||||||
8 | purpose of resale by the
fundraising entity and that profits | ||||||
9 | from the sale to the fundraising entity.
This paragraph is | ||||||
10 | exempt from the provisions of Section 2-70.
| ||||||
11 | (35) Beginning January 1, 2000 and through December 31, | ||||||
12 | 2001, new or used
automatic vending machines that prepare and | ||||||
13 | serve hot food and beverages,
including coffee, soup, and other | ||||||
14 | items, and replacement parts for these
machines. Beginning | ||||||
15 | January 1, 2002 and through June 30, 2003, machines
and parts | ||||||
16 | for machines used in
commercial, coin-operated amusement and | ||||||
17 | vending business if a use or occupation
tax is paid on the | ||||||
18 | gross receipts derived from the use of the commercial,
| ||||||
19 | coin-operated amusement and vending machines. This paragraph | ||||||
20 | is exempt from
the provisions of Section 2-70.
| ||||||
21 | (35-5) Beginning August 23, 2001 and through June 30, 2016, | ||||||
22 | food for human consumption that is to be consumed off
the | ||||||
23 | premises where it is sold (other than alcoholic beverages, soft | ||||||
24 | drinks,
and food that has been prepared for immediate | ||||||
25 | consumption) and prescription
and nonprescription medicines, | ||||||
26 | drugs, medical appliances, and insulin, urine
testing |
| |||||||
| |||||||
1 | materials, syringes, and needles used by diabetics, for human | ||||||
2 | use, when
purchased for use by a person receiving medical | ||||||
3 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
4 | resides in a licensed long-term care facility,
as defined in | ||||||
5 | the Nursing Home Care Act, or a licensed facility as defined in | ||||||
6 | the ID/DD Community Care Act, the MC/DD Act, or the Specialized | ||||||
7 | Mental Health Rehabilitation Act of 2013.
| ||||||
8 | (36) Beginning August 2, 2001, computers and | ||||||
9 | communications equipment
utilized for any hospital purpose and | ||||||
10 | equipment used in the diagnosis,
analysis, or treatment of | ||||||
11 | hospital patients sold to a lessor who leases the
equipment, | ||||||
12 | under a lease of one year or longer executed or in effect at | ||||||
13 | the
time of the purchase, to a hospital that has been issued an | ||||||
14 | active tax
exemption identification number by the Department | ||||||
15 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
16 | provisions of Section 2-70.
| ||||||
17 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
18 | lessor who
leases the property, under a lease of one year or | ||||||
19 | longer executed or in effect
at the time of the purchase, to a | ||||||
20 | governmental body that has been issued an
active tax exemption | ||||||
21 | identification number by the Department under Section 1g
of | ||||||
22 | this Act. This paragraph is exempt from the provisions of | ||||||
23 | Section 2-70.
| ||||||
24 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
25 | 2016, tangible personal property purchased
from an Illinois | ||||||
26 | retailer by a taxpayer engaged in centralized purchasing
|
| |||||||
| |||||||
1 | activities in Illinois who will, upon receipt of the property | ||||||
2 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
3 | the purpose of subsequently
transporting it outside this State | ||||||
4 | for use or consumption thereafter solely
outside this State or | ||||||
5 | (ii) for the purpose of being processed, fabricated, or
| ||||||
6 | manufactured into, attached to, or incorporated into other | ||||||
7 | tangible personal
property to be transported outside this State | ||||||
8 | and thereafter used or consumed
solely outside this State. The | ||||||
9 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
10 | accordance with the Illinois Administrative Procedure Act, | ||||||
11 | issue a
permit to any taxpayer in good standing with the | ||||||
12 | Department who is eligible for
the exemption under this | ||||||
13 | paragraph (38). The permit issued under
this paragraph (38) | ||||||
14 | shall authorize the holder, to the extent and
in the manner | ||||||
15 | specified in the rules adopted under this Act, to purchase
| ||||||
16 | tangible personal property from a retailer exempt from the | ||||||
17 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
18 | necessary books and records to
substantiate the use and | ||||||
19 | consumption of all such tangible personal property
outside of | ||||||
20 | the State of Illinois.
| ||||||
21 | (39) Beginning January 1, 2008, tangible personal property | ||||||
22 | used in the construction or maintenance of a community water | ||||||
23 | supply, as defined under Section 3.145 of the Environmental | ||||||
24 | Protection Act, that is operated by a not-for-profit | ||||||
25 | corporation that holds a valid water supply permit issued under | ||||||
26 | Title IV of the Environmental Protection Act. This paragraph is |
| |||||||
| |||||||
1 | exempt from the provisions of Section 2-70.
| ||||||
2 | (40) Beginning January 1, 2010, materials, parts, | ||||||
3 | equipment, components, and furnishings incorporated into or | ||||||
4 | upon an aircraft as part of the modification, refurbishment, | ||||||
5 | completion, replacement, repair, or maintenance of the | ||||||
6 | aircraft. This exemption includes consumable supplies used in | ||||||
7 | the modification, refurbishment, completion, replacement, | ||||||
8 | repair, and maintenance of aircraft, but excludes any | ||||||
9 | materials, parts, equipment, components, and consumable | ||||||
10 | supplies used in the modification, replacement, repair, and | ||||||
11 | maintenance of aircraft engines or power plants, whether such | ||||||
12 | engines or power plants are installed or uninstalled upon any | ||||||
13 | such aircraft. "Consumable supplies" include, but are not | ||||||
14 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
15 | lubricants, cleaning solution, latex gloves, and protective | ||||||
16 | films. This exemption applies only to the sale of qualifying | ||||||
17 | tangible personal property to persons who modify, refurbish, | ||||||
18 | complete, replace, or maintain an aircraft and who (i) hold an | ||||||
19 | Air Agency Certificate and are empowered to operate an approved | ||||||
20 | repair station by the Federal Aviation Administration, (ii) | ||||||
21 | have a Class IV Rating, and (iii) conduct operations in | ||||||
22 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
23 | The exemption does not include aircraft operated by a | ||||||
24 | commercial air carrier providing scheduled passenger air | ||||||
25 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
26 | of the Federal Aviation Regulations. The changes made to this |
| |||||||
| |||||||
1 | paragraph (40) by Public Act 98-534 are declarative of existing | ||||||
2 | law. | ||||||
3 | (41) Tangible personal property sold to a | ||||||
4 | public-facilities corporation, as described in Section | ||||||
5 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
6 | constructing or furnishing a municipal convention hall, but | ||||||
7 | only if the legal title to the municipal convention hall is | ||||||
8 | transferred to the municipality without any further | ||||||
9 | consideration by or on behalf of the municipality at the time | ||||||
10 | of the completion of the municipal convention hall or upon the | ||||||
11 | retirement or redemption of any bonds or other debt instruments | ||||||
12 | issued by the public-facilities corporation in connection with | ||||||
13 | the development of the municipal convention hall. This | ||||||
14 | exemption includes existing public-facilities corporations as | ||||||
15 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
16 | This paragraph is exempt from the provisions of Section 2-70. | ||||||
17 | (42) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
18 | and menstrual cups. | ||||||
19 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
20 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. | ||||||
21 | 1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | ||||||
22 | 7-29-15; 99-855, eff. 8-19-16.)
| ||||||
23 | (35 ILCS 120/2-51)
| ||||||
24 | Sec. 2-51. Motor vehicles; trailers; use as rolling stock | ||||||
25 | definition. |
| |||||||
| |||||||
1 | (a) (Blank). Through
June 30, 2003, "use
as
rolling stock | ||||||
2 | moving
in
interstate commerce" in
paragraphs (12) and (13) of | ||||||
3 | Section 2-5 means for motor vehicles, as defined in
Section | ||||||
4 | 1-146 of the Illinois Vehicle Code, and trailers, as defined in | ||||||
5 | Section
1-209 of the Illinois Vehicle Code, when on 15 or more | ||||||
6 | occasions in a
12-month period the motor vehicle and trailer | ||||||
7 | has carried persons or property
for
hire in
interstate | ||||||
8 | commerce, even just between points in Illinois, if the motor | ||||||
9 | vehicle
and trailer transports persons whose journeys or | ||||||
10 | property whose shipments
originate or terminate outside | ||||||
11 | Illinois. This
definition applies to all
property purchased for | ||||||
12 | the purpose of being attached to those motor vehicles or
| ||||||
13 | trailers as a part thereof.
| ||||||
14 | (b) (Blank). On and after July 1, 2003 and through June 30, | ||||||
15 | 2004, "use as rolling stock moving in interstate
commerce" in
| ||||||
16 | paragraphs (12) and (13) of Section 2-5 occurs for motor | ||||||
17 | vehicles, as defined
in Section 1-146 of the Illinois Vehicle | ||||||
18 | Code, when during a 12-month
period the
rolling stock has | ||||||
19 | carried persons or property for hire in interstate commerce
for | ||||||
20 | 51% of
its total trips and transports persons whose journeys or | ||||||
21 | property whose
shipments
originate or terminate outside | ||||||
22 | Illinois. Trips that are only between points in
Illinois shall
| ||||||
23 | not be counted as interstate trips when calculating whether the | ||||||
24 | tangible
personal property
qualifies for the exemption but such | ||||||
25 | trips shall be included in total trips
taken.
| ||||||
26 | (c) This subsection (c) applies to motor vehicles, other |
| |||||||
| |||||||
1 | than limousines, purchased through June 30, 2017. For motor | ||||||
2 | vehicles, other than limousines, purchased on or after July 1, | ||||||
3 | 2017, subsection (d-5) applies. This subsection (c) applies to | ||||||
4 | limousines purchased before, on, or after July 1, 2017. "Use | ||||||
5 | Beginning July 1, 2004, "use as rolling stock moving in | ||||||
6 | interstate commerce" in paragraph paragraphs (12) and (13) of | ||||||
7 | Section 2-5 occurs for motor vehicles, as defined in Section | ||||||
8 | 1-146 of the Illinois Vehicle Code, when during a 12-month | ||||||
9 | period the rolling stock has carried persons or property for | ||||||
10 | hire in interstate commerce for greater than 50% of its total | ||||||
11 | trips for that period or for greater than 50% of its total | ||||||
12 | miles for that period. The person claiming the exemption shall | ||||||
13 | make an election at the time of purchase to use either the | ||||||
14 | trips or mileage method. Persons who purchased motor vehicles | ||||||
15 | prior to July 1, 2004 shall make an election to use either the | ||||||
16 | trips or mileage method and document that election in their | ||||||
17 | books and records. If no election is made under this subsection | ||||||
18 | to use the trips or mileage method, the person shall be deemed | ||||||
19 | to have chosen the mileage method. | ||||||
20 | For purposes of determining qualifying trips or miles, | ||||||
21 | motor vehicles that carry persons or property for hire, even | ||||||
22 | just between points in Illinois, will be considered used for | ||||||
23 | hire in interstate commerce if the motor vehicle transports | ||||||
24 | persons whose journeys or property whose shipments originate or | ||||||
25 | terminate outside Illinois. The exemption for motor vehicles
| ||||||
26 | used as rolling stock moving in interstate commerce may be
|
| |||||||
| |||||||
1 | claimed only for the following vehicles: (i) motor vehicles | ||||||
2 | whose gross vehicle weight
rating exceeds 16,000 pounds; and | ||||||
3 | (ii) limousines, as defined in Section 1-139.1 of the Illinois | ||||||
4 | Vehicle Code. Through June 30, 2017, this This definition | ||||||
5 | applies to all property purchased for the purpose of being | ||||||
6 | attached to those motor vehicles as a part thereof. On and | ||||||
7 | after July 1, 2017, this definition applies to property | ||||||
8 | purchased for the purpose of being attached to limousines as a | ||||||
9 | part thereof. | ||||||
10 | (d) For purchases made through June 30, 2017 Beginning July | ||||||
11 | 1, 2004 , "use as rolling stock moving in interstate commerce" | ||||||
12 | in paragraph paragraphs (12) and (13) of Section 2-5 occurs for | ||||||
13 | trailers, as defined in Section 1-209 of the Illinois Vehicle | ||||||
14 | Code, semitrailers as defined in Section 1-187 of the Illinois | ||||||
15 | Vehicle Code, and pole trailers as defined in Section 1-161 of | ||||||
16 | the Illinois Vehicle Code, when during a 12-month period the | ||||||
17 | rolling stock has carried persons or property for hire in | ||||||
18 | interstate commerce for greater than 50% of its total trips for | ||||||
19 | that period or for greater than 50% of its total miles for that | ||||||
20 | period. The person claiming the exemption for a trailer or | ||||||
21 | trailers that will not be dedicated to a motor vehicle or group | ||||||
22 | of motor vehicles shall make an election at the time of | ||||||
23 | purchase to use either the trips or mileage method. Persons who | ||||||
24 | purchased trailers prior to July 1, 2004 that are not dedicated | ||||||
25 | to a motor vehicle or group of motor vehicles shall make an | ||||||
26 | election to use either the trips or mileage method and document |
| |||||||
| |||||||
1 | that election in their books and records. If no election is | ||||||
2 | made under this subsection to use the trips or mileage method, | ||||||
3 | the person shall be deemed to have chosen the mileage method. | ||||||
4 | For purposes of determining qualifying trips or miles, | ||||||
5 | trailers, semitrailers, or pole trailers that carry property | ||||||
6 | for hire, even just between points in Illinois, will be | ||||||
7 | considered used for hire in interstate commerce if the | ||||||
8 | trailers, semitrailers, or pole trailers transport property | ||||||
9 | whose shipments originate or terminate outside Illinois. This | ||||||
10 | definition applies to all property purchased for the purpose of | ||||||
11 | being attached to those trailers, semitrailers, or pole | ||||||
12 | trailers as a part thereof. In lieu of a person providing | ||||||
13 | documentation regarding the qualifying use of each individual | ||||||
14 | trailer, semitrailer, or pole trailer, that person may document | ||||||
15 | such qualifying use by providing documentation of the | ||||||
16 | following: | ||||||
17 | (1) If a trailer, semitrailer, or pole trailer is | ||||||
18 | dedicated to a motor vehicle that qualifies as rolling | ||||||
19 | stock moving in interstate commerce under subsection (c) of | ||||||
20 | this Section, then that trailer, semitrailer, or pole | ||||||
21 | trailer qualifies as rolling stock moving in interstate | ||||||
22 | commerce under this subsection. | ||||||
23 | (2) If a trailer, semitrailer, or pole trailer is | ||||||
24 | dedicated to a group of motor vehicles that all qualify as | ||||||
25 | rolling stock moving in interstate commerce under | ||||||
26 | subsection (c) of this Section, then that trailer, |
| |||||||
| |||||||
1 | semitrailer, or pole trailer qualifies as rolling stock | ||||||
2 | moving in interstate commerce under this subsection. | ||||||
3 | (3) If one or more trailers, semitrailers, or pole | ||||||
4 | trailers are dedicated to a group of motor vehicles and not | ||||||
5 | all of those motor vehicles in that group qualify as | ||||||
6 | rolling stock moving in interstate commerce under | ||||||
7 | subsection (c) of this Section, then the percentage of | ||||||
8 | those trailers, semitrailers, or pole trailers that | ||||||
9 | qualifies as rolling stock moving in interstate commerce | ||||||
10 | under this subsection is equal to the percentage of those | ||||||
11 | motor vehicles in that group that qualify as rolling stock | ||||||
12 | moving in interstate commerce under subsection (c) of this | ||||||
13 | Section to which those trailers, semitrailers, or pole | ||||||
14 | trailers are dedicated. However, to determine the | ||||||
15 | qualification for the exemption provided under this item | ||||||
16 | (3), the mathematical application of the qualifying | ||||||
17 | percentage to one or more trailers, semitrailers, or pole | ||||||
18 | trailers under this subpart shall not be allowed as to any | ||||||
19 | fraction of a trailer, semitrailer, or pole trailer.
| ||||||
20 | (d-5) For motor vehicles and trailers purchased on or after | ||||||
21 | July 1, 2017, "use as rolling stock moving in interstate | ||||||
22 | commerce" means that: | ||||||
23 | (1) the motor vehicle or trailer is used to transport | ||||||
24 | persons or property for hire; | ||||||
25 | (2) for purposes of the exemption under paragraph (13) | ||||||
26 | of Section 2-5, the purchaser who is an owner, lessor, or |
| |||||||
| |||||||
1 | shipper claiming the exemption certifies that the motor | ||||||
2 | vehicle or trailer will be utilized, from the time of | ||||||
3 | purchase and continuing through the statute of limitations | ||||||
4 | for issuing a notice of tax liability under this Act, by an | ||||||
5 | interstate carrier or carriers for hire who hold, and are | ||||||
6 | required by Federal Motor Carrier Safety Administration | ||||||
7 | regulations to hold, an active USDOT Number with the | ||||||
8 | Carrier Operation listed as "Interstate" and the Operation | ||||||
9 | Classification listed as "authorized for hire", "exempt | ||||||
10 | for hire", or both "authorized for hire" and "exempt for | ||||||
11 | hire"; except that this paragraph (2) does not apply to a | ||||||
12 | motor vehicle or trailer used at an airport to support the | ||||||
13 | operation of an aircraft moving in interstate commerce, as | ||||||
14 | long as (i) in the case of a motor vehicle, the motor | ||||||
15 | vehicle meets paragraphs (1) and (3) of this subsection | ||||||
16 | (d-5) or (ii) in the case of a trailer, the trailer meets | ||||||
17 | paragraph (1) of this subsection (d-5); and | ||||||
18 | (3) for motor vehicles, the gross vehicle weight rating | ||||||
19 | exceeds 16,000 pounds. | ||||||
20 | The definition of "use as rolling stock moving in | ||||||
21 | interstate commerce" in this subsection (d-5) applies to all | ||||||
22 | property purchased on or after July 1, 2017 for the purpose of | ||||||
23 | being attached to a motor vehicle or trailer as a part thereof, | ||||||
24 | regardless of whether the motor vehicle or trailer was | ||||||
25 | purchased before, on, or after July 1, 2017. | ||||||
26 | If an item ceases to meet requirements (1) through (3) |
| |||||||
| |||||||
1 | under this subsection (d-5), then the tax is imposed on the | ||||||
2 | selling price, allowing for a reasonable depreciation for the | ||||||
3 | period 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 Illinois | ||||||
7 | 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 and watercraft purchased on or after | ||||||
14 | January 1, 2014, "use as rolling stock moving in interstate | ||||||
15 | commerce" in paragraph paragraphs (12) and (13) of Section 2-5 | ||||||
16 | occurs when, during a 12-month period, the rolling stock has | ||||||
17 | carried persons or property for hire in interstate commerce for | ||||||
18 | greater than 50% of its total trips for that period or for | ||||||
19 | greater than 50% of its total miles for that period. The person | ||||||
20 | claiming the exemption shall make an election at the time of | ||||||
21 | purchase to use either the trips or mileage method and document | ||||||
22 | that election in their books and records. If no election is | ||||||
23 | made under this subsection to use the trips or mileage method, | ||||||
24 | the person shall be deemed to have chosen the mileage method. | ||||||
25 | For aircraft, flight hours may be used in lieu of recording | ||||||
26 | miles in determining whether the aircraft meets the mileage |
| |||||||
| |||||||
1 | test in this subsection. For watercraft, nautical miles or trip | ||||||
2 | hours may be used in lieu of recording miles in determining | ||||||
3 | whether the watercraft meets the mileage test in this | ||||||
4 | subsection. | ||||||
5 | Notwithstanding any other provision of law to the contrary, | ||||||
6 | property purchased on or after January 1, 2014 for the purpose | ||||||
7 | of being attached to aircraft or watercraft as a part thereof | ||||||
8 | qualifies as rolling stock moving in interstate commerce only | ||||||
9 | if the aircraft or watercraft to which it will be attached | ||||||
10 | qualifies as rolling stock moving in interstate commerce under | ||||||
11 | the test set forth in this subsection (e), regardless of when | ||||||
12 | the aircraft or watercraft was purchased. Persons who purchased | ||||||
13 | aircraft or watercraft prior to January 1, 2014 shall make an | ||||||
14 | election to use either the trips or mileage method and document | ||||||
15 | that election in their books and records for the purpose of | ||||||
16 | determining whether property purchased on or after January 1, | ||||||
17 | 2014 for the purpose of being attached to aircraft or | ||||||
18 | watercraft as a part thereof qualifies as rolling stock moving | ||||||
19 | in interstate commerce under this subsection (e). | ||||||
20 | (f) The election to use either the trips or mileage method | ||||||
21 | made under the provisions of subsections (c), (d), or (e) of | ||||||
22 | this Section will remain in effect for the duration of the | ||||||
23 | purchaser's ownership of that item. | ||||||
24 | (Source: P.A. 98-584, eff. 8-27-13.)
| ||||||
25 | Section 99. Effective date. This Act takes effect July 1, | ||||||
26 | 2017.
|