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Illinois House Bill HB3532

Illinois 2023-2024 Regular Session

Illinois House Bill HB3532 Compare Versions

Only one version of the bill is available at this time.
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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3532 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-55 from Ch. 120, par. 439.3-55 35 ILCS 110/3-45 from Ch. 120, par. 439.33-45 Amends the Use Tax Act and the Service Use Tax Act. Provides that, for the purpose of the multistate exemption, use in this State does not include the return of the property of a lessor or purchaser to this State for storage, repair, or refurbishment so long as the property is not used by a lessee or purchaser in this State. LRB103 05919 HLH 50940 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3532 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-55 from Ch. 120, par. 439.3-55 35 ILCS 110/3-45 from Ch. 120, par. 439.33-45 35 ILCS 105/3-55 from Ch. 120, par. 439.3-55 35 ILCS 110/3-45 from Ch. 120, par. 439.33-45 Amends the Use Tax Act and the Service Use Tax Act. Provides that, for the purpose of the multistate exemption, use in this State does not include the return of the property of a lessor or purchaser to this State for storage, repair, or refurbishment so long as the property is not used by a lessee or purchaser in this State. LRB103 05919 HLH 50940 b LRB103 05919 HLH 50940 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3532 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED:
33 35 ILCS 105/3-55 from Ch. 120, par. 439.3-55 35 ILCS 110/3-45 from Ch. 120, par. 439.33-45 35 ILCS 105/3-55 from Ch. 120, par. 439.3-55 35 ILCS 110/3-45 from Ch. 120, par. 439.33-45
44 35 ILCS 105/3-55 from Ch. 120, par. 439.3-55
55 35 ILCS 110/3-45 from Ch. 120, par. 439.33-45
66 Amends the Use Tax Act and the Service Use Tax Act. Provides that, for the purpose of the multistate exemption, use in this State does not include the return of the property of a lessor or purchaser to this State for storage, repair, or refurbishment so long as the property is not used by a lessee or purchaser in this State.
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1212 1 AN ACT concerning revenue.
1313 2 Be it enacted by the People of the State of Illinois,
1414 3 represented in the General Assembly:
1515 4 Section 5. The Use Tax Act is amended by changing Section
1616 5 3-55 as follows:
1717 6 (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
1818 7 Sec. 3-55. Multistate exemption. To prevent actual or
1919 8 likely multistate taxation, the tax imposed by this Act does
2020 9 not apply to the use of tangible personal property in this
2121 10 State under the following circumstances:
2222 11 (a) The use, in this State, of tangible personal property
2323 12 acquired outside this State by a nonresident individual and
2424 13 brought into this State by the individual for his or her own
2525 14 use while temporarily within this State or while passing
2626 15 through this State.
2727 16 (b) (Blank).
2828 17 (c) The use, in this State, by owners, lessors, or
2929 18 shippers of tangible personal property that is utilized by
3030 19 interstate carriers for hire for use as rolling stock moving
3131 20 in interstate commerce as long as so used by the interstate
3232 21 carriers for hire, and equipment operated by a
3333 22 telecommunications provider, licensed as a common carrier by
3434 23 the Federal Communications Commission, which is permanently
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3838 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3532 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED:
3939 35 ILCS 105/3-55 from Ch. 120, par. 439.3-55 35 ILCS 110/3-45 from Ch. 120, par. 439.33-45 35 ILCS 105/3-55 from Ch. 120, par. 439.3-55 35 ILCS 110/3-45 from Ch. 120, par. 439.33-45
4040 35 ILCS 105/3-55 from Ch. 120, par. 439.3-55
4141 35 ILCS 110/3-45 from Ch. 120, par. 439.33-45
4242 Amends the Use Tax Act and the Service Use Tax Act. Provides that, for the purpose of the multistate exemption, use in this State does not include the return of the property of a lessor or purchaser to this State for storage, repair, or refurbishment so long as the property is not used by a lessee or purchaser in this State.
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7171 1 installed in or affixed to aircraft moving in interstate
7272 2 commerce.
7373 3 (d) The use, in this State, of tangible personal property
7474 4 that is acquired outside this State and caused to be brought
7575 5 into this State by a person who has already paid a tax in
7676 6 another State in respect to the sale, purchase, or use of that
7777 7 property, to the extent of the amount of the tax properly due
7878 8 and paid in the other State.
7979 9 (e) The temporary storage, in this State, of tangible
8080 10 personal property that is acquired outside this State and
8181 11 that, after being brought into this State and stored here
8282 12 temporarily, is used solely outside this State or is
8383 13 physically attached to or incorporated into other tangible
8484 14 personal property that is used solely outside this State, or
8585 15 is altered by converting, fabricating, manufacturing,
8686 16 printing, processing, or shaping, and, as altered, is used
8787 17 solely outside this State. For purposes of this subsection,
8888 18 use in this State does not include the return of the property
8989 19 of a lessor or purchaser to this State for storage, repair, or
9090 20 refurbishment so long as the property is not used by a lessee
9191 21 or purchaser in this State. Refurbishment includes the
9292 22 replacement of component parts as well as upgrades.
9393 23 (f) The temporary storage in this State of building
9494 24 materials and fixtures that are acquired either in this State
9595 25 or outside this State by an Illinois registered combination
9696 26 retailer and construction contractor, and that the purchaser
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107107 1 thereafter uses outside this State by incorporating that
108108 2 property into real estate located outside this State.
109109 3 (g) The use or purchase of tangible personal property by a
110110 4 common carrier by rail or motor that receives the physical
111111 5 possession of the property in Illinois, and that transports
112112 6 the property, or shares with another common carrier in the
113113 7 transportation of the property, out of Illinois on a standard
114114 8 uniform bill of lading showing the seller of the property as
115115 9 the shipper or consignor of the property to a destination
116116 10 outside Illinois, for use outside Illinois.
117117 11 (h) Except as provided in subsection (h-1), the use, in
118118 12 this State, of a motor vehicle that was sold in this State to a
119119 13 nonresident, even though the motor vehicle is delivered to the
120120 14 nonresident in this State, if the motor vehicle is not to be
121121 15 titled in this State, and if a drive-away permit is issued to
122122 16 the motor vehicle as provided in Section 3-603 of the Illinois
123123 17 Vehicle Code or if the nonresident purchaser has vehicle
124124 18 registration plates to transfer to the motor vehicle upon
125125 19 returning to his or her home state. The issuance of the
126126 20 drive-away permit or having the out-of-state registration
127127 21 plates to be transferred shall be prima facie evidence that
128128 22 the motor vehicle will not be titled in this State.
129129 23 (h-1) The exemption under subsection (h) does not apply if
130130 24 the state in which the motor vehicle will be titled does not
131131 25 allow a reciprocal exemption for the use in that state of a
132132 26 motor vehicle sold and delivered in that state to an Illinois
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143143 1 resident but titled in Illinois. The tax collected under this
144144 2 Act on the sale of a motor vehicle in this State to a resident
145145 3 of another state that does not allow a reciprocal exemption
146146 4 shall be imposed at a rate equal to the state's rate of tax on
147147 5 taxable property in the state in which the purchaser is a
148148 6 resident, except that the tax shall not exceed the tax that
149149 7 would otherwise be imposed under this Act. At the time of the
150150 8 sale, the purchaser shall execute a statement, signed under
151151 9 penalty of perjury, of his or her intent to title the vehicle
152152 10 in the state in which the purchaser is a resident within 30
153153 11 days after the sale and of the fact of the payment to the State
154154 12 of Illinois of tax in an amount equivalent to the state's rate
155155 13 of tax on taxable property in his or her state of residence and
156156 14 shall submit the statement to the appropriate tax collection
157157 15 agency in his or her state of residence. In addition, the
158158 16 retailer must retain a signed copy of the statement in his or
159159 17 her records. Nothing in this subsection shall be construed to
160160 18 require the removal of the vehicle from this state following
161161 19 the filing of an intent to title the vehicle in the purchaser's
162162 20 state of residence if the purchaser titles the vehicle in his
163163 21 or her state of residence within 30 days after the date of
164164 22 sale. The tax collected under this Act in accordance with this
165165 23 subsection (h-1) shall be proportionately distributed as if
166166 24 the tax were collected at the 6.25% general rate imposed under
167167 25 this Act.
168168 26 (h-2) The following exemptions apply with respect to
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179179 1 certain aircraft:
180180 2 (1) Beginning on July 1, 2007, no tax is imposed under
181181 3 this Act on the purchase of an aircraft, as defined in
182182 4 Section 3 of the Illinois Aeronautics Act, if all of the
183183 5 following conditions are met:
184184 6 (A) the aircraft leaves this State within 15 days
185185 7 after the later of either the issuance of the final
186186 8 billing for the purchase of the aircraft or the
187187 9 authorized approval for return to service, completion
188188 10 of the maintenance record entry, and completion of the
189189 11 test flight and ground test for inspection, as
190190 12 required by 14 C.F.R. 91.407;
191191 13 (B) the aircraft is not based or registered in
192192 14 this State after the purchase of the aircraft; and
193193 15 (C) the purchaser provides the Department with a
194194 16 signed and dated certification, on a form prescribed
195195 17 by the Department, certifying that the requirements of
196196 18 this item (1) are met. The certificate must also
197197 19 include the name and address of the purchaser, the
198198 20 address of the location where the aircraft is to be
199199 21 titled or registered, the address of the primary
200200 22 physical location of the aircraft, and other
201201 23 information that the Department may reasonably
202202 24 require.
203203 25 (2) Beginning on July 1, 2007, no tax is imposed under
204204 26 this Act on the use of an aircraft, as defined in Section 3
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215215 1 of the Illinois Aeronautics Act, that is temporarily
216216 2 located in this State for the purpose of a prepurchase
217217 3 evaluation if all of the following conditions are met:
218218 4 (A) the aircraft is not based or registered in
219219 5 this State after the prepurchase evaluation; and
220220 6 (B) the purchaser provides the Department with a
221221 7 signed and dated certification, on a form prescribed
222222 8 by the Department, certifying that the requirements of
223223 9 this item (2) are met. The certificate must also
224224 10 include the name and address of the purchaser, the
225225 11 address of the location where the aircraft is to be
226226 12 titled or registered, the address of the primary
227227 13 physical location of the aircraft, and other
228228 14 information that the Department may reasonably
229229 15 require.
230230 16 (3) Beginning on July 1, 2007, no tax is imposed under
231231 17 this Act on the use of an aircraft, as defined in Section 3
232232 18 of the Illinois Aeronautics Act, that is temporarily
233233 19 located in this State for the purpose of a post-sale
234234 20 customization if all of the following conditions are met:
235235 21 (A) the aircraft leaves this State within 15 days
236236 22 after the authorized approval for return to service,
237237 23 completion of the maintenance record entry, and
238238 24 completion of the test flight and ground test for
239239 25 inspection, as required by 14 C.F.R. 91.407;
240240 26 (B) the aircraft is not based or registered in
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251251 1 this State either before or after the post-sale
252252 2 customization; and
253253 3 (C) the purchaser provides the Department with a
254254 4 signed and dated certification, on a form prescribed
255255 5 by the Department, certifying that the requirements of
256256 6 this item (3) are met. The certificate must also
257257 7 include the name and address of the purchaser, the
258258 8 address of the location where the aircraft is to be
259259 9 titled or registered, the address of the primary
260260 10 physical location of the aircraft, and other
261261 11 information that the Department may reasonably
262262 12 require.
263263 13 If tax becomes due under this subsection (h-2) because of
264264 14 the purchaser's use of the aircraft in this State, the
265265 15 purchaser shall file a return with the Department and pay the
266266 16 tax on the fair market value of the aircraft. This return and
267267 17 payment of the tax must be made no later than 30 days after the
268268 18 aircraft is used in a taxable manner in this State. The tax is
269269 19 based on the fair market value of the aircraft on the date that
270270 20 it is first used in a taxable manner in this State.
271271 21 For purposes of this subsection (h-2):
272272 22 "Based in this State" means hangared, stored, or otherwise
273273 23 used, excluding post-sale customizations as defined in this
274274 24 Section, for 10 or more days in each 12-month period
275275 25 immediately following the date of the sale of the aircraft.
276276 26 "Post-sale customization" means any improvement,
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287287 1 maintenance, or repair that is performed on an aircraft
288288 2 following a transfer of ownership of the aircraft.
289289 3 "Prepurchase evaluation" means an examination of an
290290 4 aircraft to provide a potential purchaser with information
291291 5 relevant to the potential purchase.
292292 6 "Registered in this State" means an aircraft registered
293293 7 with the Department of Transportation, Aeronautics Division,
294294 8 or titled or registered with the Federal Aviation
295295 9 Administration to an address located in this State.
296296 10 This subsection (h-2) is exempt from the provisions of
297297 11 Section 3-90.
298298 12 (i) Beginning July 1, 1999, the use, in this State, of fuel
299299 13 acquired outside this State and brought into this State in the
300300 14 fuel supply tanks of locomotives engaged in freight hauling
301301 15 and passenger service for interstate commerce. This subsection
302302 16 is exempt from the provisions of Section 3-90.
303303 17 (j) Beginning on January 1, 2002 and through June 30,
304304 18 2016, the use of tangible personal property purchased from an
305305 19 Illinois retailer by a taxpayer engaged in centralized
306306 20 purchasing activities in Illinois who will, upon receipt of
307307 21 the property in Illinois, temporarily store the property in
308308 22 Illinois (i) for the purpose of subsequently transporting it
309309 23 outside this State for use or consumption thereafter solely
310310 24 outside this State or (ii) for the purpose of being processed,
311311 25 fabricated, or manufactured into, attached to, or incorporated
312312 26 into other tangible personal property to be transported
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323323 1 outside this State and thereafter used or consumed solely
324324 2 outside this State. The Director of Revenue shall, pursuant to
325325 3 rules adopted in accordance with the Illinois Administrative
326326 4 Procedure Act, issue a permit to any taxpayer in good standing
327327 5 with the Department who is eligible for the exemption under
328328 6 this subsection (j). The permit issued under this subsection
329329 7 (j) shall authorize the holder, to the extent and in the manner
330330 8 specified in the rules adopted under this Act, to purchase
331331 9 tangible personal property from a retailer exempt from the
332332 10 taxes imposed by this Act. Taxpayers shall maintain all
333333 11 necessary books and records to substantiate the use and
334334 12 consumption of all such tangible personal property outside of
335335 13 the State of Illinois.
336336 14 (Source: P.A. 100-321, eff. 8-24-17.)
337337 15 Section 10. The Service Use Tax Act is amended by changing
338338 16 Section 3-45 as follows:
339339 17 (35 ILCS 110/3-45) (from Ch. 120, par. 439.33-45)
340340 18 Sec. 3-45. Multistate exemption. To prevent actual or
341341 19 likely multistate taxation, the tax imposed by this Act does
342342 20 not apply to the use of tangible personal property in this
343343 21 State under the following circumstances:
344344 22 (a) The use, in this State, of property acquired outside
345345 23 this State by a nonresident individual and brought into this
346346 24 State by the individual for his or her own use while
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357357 1 temporarily within this State or while passing through this
358358 2 State.
359359 3 (b) The use, in this State, of property that is acquired
360360 4 outside this State and that is moved into this State for use as
361361 5 rolling stock moving in interstate commerce.
362362 6 (c) The use, in this State, of property that is acquired
363363 7 outside this State and caused to be brought into this State by
364364 8 a person who has already paid a tax in another state in respect
365365 9 to the sale, purchase, or use of that property, to the extent
366366 10 of the amount of the tax properly due and paid in the other
367367 11 state.
368368 12 (d) The temporary storage, in this State, of property that
369369 13 is acquired outside this State and that after being brought
370370 14 into this State and stored here temporarily, is used solely
371371 15 outside this State or is physically attached to or
372372 16 incorporated into other property that is used solely outside
373373 17 this State, or is altered by converting, fabricating,
374374 18 manufacturing, printing, processing, or shaping, and, as
375375 19 altered, is used solely outside this State. For purposes of
376376 20 this subsection, use in this State does not include the return
377377 21 of the property of a lessor or purchaser to this State for
378378 22 storage, repair, or refurbishment so long as the property is
379379 23 not used by a lessee or purchaser in this State. Refurbishment
380380 24 includes the replacement of component parts as well as
381381 25 upgrades.
382382 26 (e) Beginning July 1, 1999, the use, in this State, of fuel
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393393 1 acquired outside this State and brought into this State in the
394394 2 fuel supply tanks of locomotives engaged in freight hauling
395395 3 and passenger service for interstate commerce. This subsection
396396 4 is exempt from the provisions of Section 3-75.
397397 5 (f) Beginning on January 1, 2002 and through June 30,
398398 6 2016, the use of tangible personal property purchased from an
399399 7 Illinois retailer by a taxpayer engaged in centralized
400400 8 purchasing activities in Illinois who will, upon receipt of
401401 9 the property in Illinois, temporarily store the property in
402402 10 Illinois (i) for the purpose of subsequently transporting it
403403 11 outside this State for use or consumption thereafter solely
404404 12 outside this State or (ii) for the purpose of being processed,
405405 13 fabricated, or manufactured into, attached to, or incorporated
406406 14 into other tangible personal property to be transported
407407 15 outside this State and thereafter used or consumed solely
408408 16 outside this State. The Director of Revenue shall, pursuant to
409409 17 rules adopted in accordance with the Illinois Administrative
410410 18 Procedure Act, issue a permit to any taxpayer in good standing
411411 19 with the Department who is eligible for the exemption under
412412 20 this subsection (f). The permit issued under this subsection
413413 21 (f) shall authorize the holder, to the extent and in the manner
414414 22 specified in the rules adopted under this Act, to purchase
415415 23 tangible personal property from a retailer exempt from the
416416 24 taxes imposed by this Act. Taxpayers shall maintain all
417417 25 necessary books and records to substantiate the use and
418418 26 consumption of all such tangible personal property outside of
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429429 1 the State of Illinois.
430430 2 (Source: P.A. 97-73, eff. 6-30-11.)
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