97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3126

 

Introduced 2/23/2011, by Rep. Randy Ramey, Jr.

 

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

    Amends the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act. Provides that beginning on July 1, 2011, "use as rolling stock moving in interstate commerce" occurs for motor vehicles when during a 12-month period the rolling stock has carried persons or property for hire in interstate commerce for greater than 25% (now, 50%) of its total trips for that period or for greater than 25% (now, 50%) of its total miles for that period. Effective immediately.


LRB097 08928 HLH 49060 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3126LRB097 08928 HLH 49060 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-61 as follows:
 
6    (35 ILCS 105/3-61)
7    Sec. 3-61. Motor vehicles; trailers; use as rolling stock
8definition.
9    (a) Through June 30, 2003, "use as rolling stock moving in
10interstate commerce" in subsections (b) and (c) of Section 3-55
11means for motor vehicles, as defined in Section 1-146 of the
12Illinois Vehicle Code, and trailers, as defined in Section
131-209 of the Illinois Vehicle Code, when on 15 or more
14occasions in a 12-month period the motor vehicle and trailer
15has carried persons or property for hire in interstate
16commerce, even just between points in Illinois, if the motor
17vehicle and trailer transports persons whose journeys or
18property whose shipments originate or terminate outside
19Illinois. This definition applies to all property purchased for
20the purpose of being attached to those motor vehicles or
21trailers as a part thereof.
22    (b) On and after July 1, 2003 and through June 30, 2004,
23"use as rolling stock moving in interstate commerce" in

 

 

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1paragraphs (b) and (c) of Section 3-55 occurs for motor
2vehicles, as defined in Section 1-146 of the Illinois Vehicle
3Code, when during a 12-month period the rolling stock has
4carried persons or property for hire in interstate commerce for
551% of its total trips and transports persons whose journeys or
6property whose shipments originate or terminate outside
7Illinois. Trips that are only between points in Illinois shall
8not be counted as interstate trips when calculating whether the
9tangible personal property qualifies for the exemption but such
10trips shall be included in total trips taken.
11    (c) Beginning July 1, 2011 2004, "use as rolling stock
12moving in interstate commerce" in paragraphs (b) and (c) of
13Section 3-55 occurs for motor vehicles, as defined in Section
141-146 of the Illinois Vehicle Code, when during a 12-month
15period the rolling stock has carried persons or property for
16hire in interstate commerce for greater than 25% 50% of its
17total trips for that period or for greater than 25% 50% of its
18total miles for that period. The person claiming the exemption
19shall make an election at the time of purchase to use either
20the trips or mileage method. Persons who purchased motor
21vehicles prior to July 1, 2004 shall make an election to use
22either the trips or mileage method and document that election
23in their books and records. If no election is made under this
24subsection to use the trips or mileage method, the person shall
25be deemed to have chosen the mileage method. Any election to
26use either the trips or mileage method will remain in effect

 

 

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1for that motor vehicle for any period for which the Department
2may issue a notice of tax liability under this Act.
3    For purposes of determining qualifying trips or miles,
4motor vehicles that carry persons or property for hire, even
5just between points in Illinois, will be considered used for
6hire in interstate commerce if the motor vehicle transports
7persons whose journeys or property whose shipments originate or
8terminate outside Illinois. The exemption for motor vehicles
9used as rolling stock moving in interstate commerce may be
10claimed only for the following vehicles: (i) motor vehicles
11whose gross vehicle weight rating exceeds 16,000 pounds; and
12(ii) limousines, as defined in Section 1-139.1 of the Illinois
13Vehicle Code. This definition applies to all property purchased
14for the purpose of being attached to those motor vehicles as a
15part thereof.
16    (d) Beginning July 1, 2004, "use as rolling stock moving in
17interstate commerce" in paragraphs (b) and (c) of Section 3-55
18occurs for trailers, as defined in Section 1-209 of the
19Illinois Vehicle Code, semitrailers as defined in Section 1-187
20of the Illinois Vehicle Code, and pole trailers as defined in
21Section 1-161 of the Illinois Vehicle Code, when during a
2212-month period the rolling stock has carried persons or
23property for hire in interstate commerce for greater than 50%
24of its total trips for that period or for greater than 50% of
25its total miles for that period. The person claiming the
26exemption for a trailer or trailers that will not be dedicated

 

 

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1to a motor vehicle or group of motor vehicles shall make an
2election at the time of purchase to use either the trips or
3mileage method. Persons who purchased trailers prior to July 1,
42004 that are not dedicated to a motor vehicle or group of
5motor vehicles shall make an election to use either the trips
6or mileage method and document that election in their books and
7records. If no election is made under this subsection to use
8the trips or mileage method, the person shall be deemed to have
9chosen the mileage method. Any election to use either the trips
10or mileage method will remain in effect for that trailer for
11any period for which the Department may issue a notice of tax
12liability under this Act.
13    For purposes of determining qualifying trips or miles,
14trailers, semitrailers, or pole trailers that carry property
15for hire, even just between points in Illinois, will be
16considered used for hire in interstate commerce if the
17trailers, semitrailers, or pole trailers transport property
18whose shipments originate or terminate outside Illinois. This
19definition applies to all property purchased for the purpose of
20being attached to those trailers, semitrailers, or pole
21trailers as a part thereof. In lieu of a person providing
22documentation regarding the qualifying use of each individual
23trailer, semitrailer, or pole trailer, that person may document
24such qualifying use by providing documentation of the
25following:
26        (1) If a trailer, semitrailer, or pole trailer is

 

 

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

 

 

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1    trailers under this subpart shall not be allowed as to any
2    fraction of a trailer, semitrailer, or pole trailer.
3(Source: P.A. 95-528, eff. 8-28-07.)
 
4    Section 10. The Service Use Tax Act is amended by changing
5Section 3-51 as follows:
 
6    (35 ILCS 110/3-51)
7    Sec. 3-51. Motor vehicles; trailers; use as rolling stock
8definition.
9    (a) Through June 30, 2003, "use as rolling stock moving in
10interstate commerce" in subsection (b) of Section 3-45 means
11for motor vehicles, as defined in Section 1-46 of the Illinois
12Vehicle Code, and trailers, as defined in Section 1-209 of the
13Illinois Vehicle Code, when on 15 or more occasions in a
1412-month period the motor vehicle and trailer has carried
15persons or property for hire in interstate commerce, even just
16between points in Illinois, if the motor vehicle and trailer
17transports persons whose journeys or property whose shipments
18originate or terminate outside Illinois. This definition
19applies to all property purchased for the purpose of being
20attached to those motor vehicles or trailers as a part thereof.
21    (b) On and after July 1, 2003 and through June 30, 2004,
22"use as rolling stock moving in interstate commerce" in
23paragraphs (4) and (4a) of the definition of "sale of service"
24in Section 2 and subsection (b) of Section 3-45 occurs for

 

 

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1motor vehicles, as defined in Section 1-146 of the Illinois
2Vehicle Code, when during a 12-month period the rolling stock
3has carried persons or property for hire in interstate commerce
4for 51% of its total trips and transports persons whose
5journeys or property whose shipments originate or terminate
6outside Illinois. Trips that are only between points in
7Illinois shall not be counted as interstate trips when
8calculating whether the tangible personal property qualifies
9for the exemption but such trips shall be included in total
10trips taken.
11    (c) Beginning July 1, 2011 2004, "use as rolling stock
12moving in interstate commerce" in paragraphs (4) and (4a) of
13the definition of "sale of service" in Section 2 and subsection
14(b) of Section 3-45 occurs for motor vehicles, as defined in
15Section 1-146 of the Illinois Vehicle Code, when during a
1612-month period the rolling stock has carried persons or
17property for hire in interstate commerce for greater than 25%
1850% of its total trips for that period or for greater than 25%
1950% of its total miles for that period. The person claiming the
20exemption shall make an election at the time of purchase to use
21either the trips or mileage method. Persons who purchased motor
22vehicles prior to July 1, 2004 shall make an election to use
23either the trips or mileage method and document that election
24in their books and records. If no election is made under this
25subsection to use the trips or mileage method, the person shall
26be deemed to have chosen the mileage method. Any election to

 

 

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1use either the trips or mileage method will remain in effect
2for that motor vehicle for any period for which the Department
3may issue a notice of tax liability under this Act.
4    For purposes of determining qualifying trips or miles,
5motor vehicles that carry persons or property for hire, even
6just between points in Illinois, will be considered used for
7hire in interstate commerce if the motor vehicle transports
8persons whose journeys or property whose shipments originate or
9terminate outside Illinois. The exemption for motor vehicles
10used as rolling stock moving in interstate commerce may be
11claimed only for the following vehicles: (i) motor vehicles
12whose gross vehicle weight rating exceeds 16,000 pounds; and
13(ii) limousines, as defined in Section 1-139.1 of the Illinois
14Vehicle Code. This definition applies to all property purchased
15for the purpose of being attached to those motor vehicles as a
16part thereof.
17    (d) Beginning July 1, 2004, "use as rolling stock moving in
18interstate commerce" in paragraphs (4) and (4a) of the
19definition of "sale of service" in Section 2 and subsection (b)
20of Section 3-45 occurs for trailers, as defined in Section
211-209 of the Illinois Vehicle Code, semitrailers as defined in
22Section 1-187 of the Illinois Vehicle Code, and pole trailers
23as defined in Section 1-161 of the Illinois Vehicle Code, when
24during a 12-month period the rolling stock has carried persons
25or property for hire in interstate commerce for greater than
2650% of its total trips for that period or for greater than 50%

 

 

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1of its total miles for that period. The person claiming the
2exemption for a trailer or trailers that will not be dedicated
3to a motor vehicle or group of motor vehicles shall make an
4election at the time of purchase to use either the trips or
5mileage method. Persons who purchased trailers prior to July 1,
62004 that are not dedicated to a motor vehicle or group of
7motor vehicles shall make an election to use either the trips
8or mileage method and document that election in their books and
9records. If no election is made under this subsection to use
10the trips or mileage method, the person shall be deemed to have
11chosen the mileage method. Any election to use either the trips
12or mileage method will remain in effect for that trailer for
13any period for which the Department may issue a notice of tax
14liability under this Act.
15    For purposes of determining qualifying trips or miles,
16trailers, semitrailers, or pole trailers that carry property
17for hire, even just between points in Illinois, will be
18considered used for hire in interstate commerce if the
19trailers, semitrailers, or pole trailers transport property
20whose shipments originate or terminate outside Illinois. This
21definition applies to all property purchased for the purpose of
22being attached to those trailers, semitrailers, or pole
23trailers as a part thereof. In lieu of a person providing
24documentation regarding the qualifying use of each individual
25trailer, semitrailer, or pole trailer, that person may document
26such qualifying use by providing documentation of the

 

 

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

 

 

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1    (3), the mathematical application of the qualifying
2    percentage to one or more trailers, semitrailers, or pole
3    trailers under this subpart shall not be allowed as to any
4    fraction of a trailer, semitrailer, or pole trailer.
5(Source: P.A. 95-528, eff. 8-28-07.)
 
6    Section 15. The Service Occupation Tax Act is amended by
7changing Section 2d as follows:
 
8    (35 ILCS 115/2d)
9    Sec. 2d. Motor vehicles; trailers; use as rolling stock
10definition.
11    (a) Through June 30, 2003, "use as rolling stock moving in
12interstate commerce" in subsections (d) and (d-1) of the
13definition of "sale of service" in Section 2 means for motor
14vehicles, as defined in Section 1-146 of the Illinois Vehicle
15Code, and trailers, as defined in Section 1-209 of the Illinois
16Vehicle Code, when on 15 or more occasions in a 12-month period
17the motor vehicle and trailer has carried persons or property
18for hire in interstate commerce, even just between points in
19Illinois, if the motor vehicle and trailer transports persons
20whose journeys or property whose shipments originate or
21terminate outside Illinois. This definition applies to all
22property purchased for the purpose of being attached to those
23motor vehicles or trailers as a part thereof.
24    (b) On and after July 1, 2003 and through June 30, 2004,

 

 

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1"use as rolling stock moving in interstate commerce" in
2paragraphs (d) and (d-1) of the definition of "sale of service"
3in Section 2 occurs for motor vehicles, as defined in Section
41-146 of the Illinois Vehicle Code, when during a 12-month
5period the rolling stock has carried persons or property for
6hire in interstate commerce for 51% of its total trips and
7transports persons whose journeys or property whose shipments
8originate or terminate outside Illinois. Trips that are only
9between points in Illinois will not be counted as interstate
10trips when calculating whether the tangible personal property
11qualifies for the exemption but such trips will be included in
12total trips taken.
13    (c) Beginning July 1, 2011 2004, "use as rolling stock
14moving in interstate commerce" in paragraphs (d) and (d-1) of
15the definition of "sale of service" in Section 2 occurs for
16motor vehicles, as defined in Section 1-146 of the Illinois
17Vehicle Code, when during a 12-month period the rolling stock
18has carried persons or property for hire in interstate commerce
19for greater than 25% 50% of its total trips for that period or
20for greater than 25% 50% of its total miles for that period.
21The person claiming the exemption shall make an election at the
22time of purchase to use either the trips or mileage method.
23Persons who purchased motor vehicles prior to July 1, 2004
24shall make an election to use either the trips or mileage
25method and document that election in their books and records.
26If no election is made under this subsection to use the trips

 

 

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1or mileage method, the person shall be deemed to have chosen
2the mileage method. Any election to use either the trips or
3mileage method will remain in effect for that motor vehicle for
4any period for which the Department may issue a notice of tax
5liability under this Act.
6    For purposes of determining qualifying trips or miles,
7motor vehicles that carry persons or property for hire, even
8just between points in Illinois, will be considered used for
9hire in interstate commerce if the motor vehicle transports
10persons whose journeys or property whose shipments originate or
11terminate outside Illinois. The exemption for motor vehicles
12used as rolling stock moving in interstate commerce may be
13claimed only for the following vehicles: (i) motor vehicles
14whose gross vehicle weight rating exceeds 16,000 pounds; and
15(ii) limousines, as defined in Section 1-139.1 of the Illinois
16Vehicle Code. This definition applies to all property purchased
17for the purpose of being attached to those motor vehicles as a
18part thereof.
19    (d) Beginning July 1, 2004, "use as rolling stock moving in
20interstate commerce" in paragraphs (d) and (d-1) of the
21definition of "sale of service" in Section 2 occurs for
22trailers, as defined in Section 1-209 of the Illinois Vehicle
23Code, semitrailers as defined in Section 1-187 of the Illinois
24Vehicle Code, and pole trailers as defined in Section 1-161 of
25the Illinois Vehicle Code, when during a 12-month period the
26rolling stock has carried persons or property for hire in

 

 

HB3126- 14 -LRB097 08928 HLH 49060 b

1interstate commerce for greater than 50% of its total trips for
2that period or for greater than 50% of its total miles for that
3period. The person claiming the exemption for a trailer or
4trailers that will not be dedicated to a motor vehicle or group
5of motor vehicles shall make an election at the time of
6purchase to use either the trips or mileage method. Persons who
7purchased trailers prior to July 1, 2004 that are not dedicated
8to a motor vehicle or group of motor vehicles shall make an
9election to use either the trips or mileage method and document
10that election in their books and records. If no election is
11made under this subsection to use the trips or mileage method,
12the person shall be deemed to have chosen the mileage method.
13Any election to use either the trips or mileage method will
14remain in effect for that trailer for any period for which the
15Department may issue a notice of tax liability under this Act.
16    For purposes of determining qualifying trips or miles,
17trailers, semitrailers, or pole trailers that carry property
18for hire, even just between points in Illinois, will be
19considered used for hire in interstate commerce if the
20trailers, semitrailers, or pole trailers transport property
21whose shipments originate or terminate outside Illinois. This
22definition applies to all property purchased for the purpose of
23being attached to those trailers, semitrailers, or pole
24trailers as a part thereof. In lieu of a person providing
25documentation regarding the qualifying use of each individual
26trailer, semitrailer, or pole trailer, that person may document

 

 

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

 

 

HB3126- 16 -LRB097 08928 HLH 49060 b

1    qualification for the exemption provided under this item
2    (3), the mathematical application of the qualifying
3    percentage to one or more trailers, semitrailers, or pole
4    trailers under this subpart shall not be allowed as to any
5    fraction of a trailer, semitrailer, or pole trailer.
6(Source: P.A. 95-528, eff. 8-28-07.)
 
7    Section 20. The Retailers' Occupation Tax Act is amended by
8changing Section 2-51 as follows:
 
9    (35 ILCS 120/2-51)
10    Sec. 2-51. Motor vehicles; trailers; use as rolling stock
11definition.
12    (a) Through June 30, 2003, "use as rolling stock moving in
13interstate commerce" in paragraphs (12) and (13) of Section 2-5
14means for motor vehicles, as defined in Section 1-146 of the
15Illinois Vehicle Code, and trailers, as defined in Section
161-209 of the Illinois Vehicle Code, when on 15 or more
17occasions in a 12-month period the motor vehicle and trailer
18has carried persons or property for hire in interstate
19commerce, even just between points in Illinois, if the motor
20vehicle and trailer transports persons whose journeys or
21property whose shipments originate or terminate outside
22Illinois. This definition applies to all property purchased for
23the purpose of being attached to those motor vehicles or
24trailers as a part thereof.

 

 

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1    (b) On and after July 1, 2003 and through June 30, 2004,
2"use as rolling stock moving in interstate commerce" in
3paragraphs (12) and (13) of Section 2-5 occurs for motor
4vehicles, as defined in Section 1-146 of the Illinois Vehicle
5Code, when during a 12-month period the rolling stock has
6carried persons or property for hire in interstate commerce for
751% of its total trips and transports persons whose journeys or
8property whose shipments originate or terminate outside
9Illinois. Trips that are only between points in Illinois shall
10not be counted as interstate trips when calculating whether the
11tangible personal property qualifies for the exemption but such
12trips shall be included in total trips taken.
13    (c) Beginning July 1, 2011 2004, "use as rolling stock
14moving in interstate commerce" in paragraphs (12) and (13) of
15Section 2-5 occurs for motor vehicles, as defined in Section
161-146 of the Illinois Vehicle Code, when during a 12-month
17period the rolling stock has carried persons or property for
18hire in interstate commerce for greater than 25% 50% of its
19total trips for that period or for greater than 25% 50% of its
20total miles for that period. The person claiming the exemption
21shall make an election at the time of purchase to use either
22the trips or mileage method. Persons who purchased motor
23vehicles prior to July 1, 2004 shall make an election to use
24either the trips or mileage method and document that election
25in their books and records. If no election is made under this
26subsection to use the trips or mileage method, the person shall

 

 

HB3126- 18 -LRB097 08928 HLH 49060 b

1be deemed to have chosen the mileage method. Any election to
2use either the trips or mileage method will remain in effect
3for that motor vehicle for any period for which the Department
4may issue a notice of tax liability under this Act.
5    For purposes of determining qualifying trips or miles,
6motor vehicles that carry persons or property for hire, even
7just between points in Illinois, will be considered used for
8hire in interstate commerce if the motor vehicle transports
9persons whose journeys or property whose shipments originate or
10terminate outside Illinois. The exemption for motor vehicles
11used as rolling stock moving in interstate commerce may be
12claimed only for the following vehicles: (i) motor vehicles
13whose gross vehicle weight rating exceeds 16,000 pounds; and
14(ii) limousines, as defined in Section 1-139.1 of the Illinois
15Vehicle Code. This definition applies to all property purchased
16for the purpose of being attached to those motor vehicles as a
17part thereof.
18    (d) Beginning July 1, 2004, "use as rolling stock moving in
19interstate commerce" in paragraphs (12) and (13) of Section 2-5
20occurs for trailers, as defined in Section 1-209 of the
21Illinois Vehicle Code, semitrailers as defined in Section 1-187
22of the Illinois Vehicle Code, and pole trailers as defined in
23Section 1-161 of the Illinois Vehicle Code, when during a
2412-month period the rolling stock has carried persons or
25property for hire in interstate commerce for greater than 50%
26of its total trips for that period or for greater than 50% of

 

 

HB3126- 19 -LRB097 08928 HLH 49060 b

1its total miles for that period. The person claiming the
2exemption for a trailer or trailers that will not be dedicated
3to a motor vehicle or group of motor vehicles shall make an
4election at the time of purchase to use either the trips or
5mileage method. Persons who purchased trailers prior to July 1,
62004 that are not dedicated to a motor vehicle or group of
7motor vehicles shall make an election to use either the trips
8or mileage method and document that election in their books and
9records. If no election is made under this subsection to use
10the trips or mileage method, the person shall be deemed to have
11chosen the mileage method. Any election to use either the trips
12or mileage method will remain in effect for that trailer for
13any period for which the Department may issue a notice of tax
14liability under this Act.
15    For purposes of determining qualifying trips or miles,
16trailers, semitrailers, or pole trailers that carry property
17for hire, even just between points in Illinois, will be
18considered used for hire in interstate commerce if the
19trailers, semitrailers, or pole trailers transport property
20whose shipments originate or terminate outside Illinois. This
21definition applies to all property purchased for the purpose of
22being attached to those trailers, semitrailers, or pole
23trailers as a part thereof. In lieu of a person providing
24documentation regarding the qualifying use of each individual
25trailer, semitrailer, or pole trailer, that person may document
26such qualifying use by providing documentation of the

 

 

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

 

 

HB3126- 21 -LRB097 08928 HLH 49060 b

1    (3), the mathematical application of the qualifying
2    percentage to one or more trailers, semitrailers, or pole
3    trailers under this subpart shall not be allowed as to any
4    fraction of a trailer, semitrailer, or pole trailer.
5(Source: P.A. 95-528, eff. 8-28-07.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.