104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB1406 Introduced 1/31/2025, by Sen. Dale Fowler SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-6135 ILCS 110/3-5135 ILCS 115/2d35 ILCS 120/2-51 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, for aircraft purchased on or after January 1, 2025, "use as rolling stock moving in interstate commerce" occurs when, during a 24-month period (currently, a 12-month period), the rolling stock has carried persons or property for hire in interstate commerce for more than 50% of its total trips for that period or for more than 50% of its total miles for that period. Effective immediately. LRB104 03813 HLH 13837 b A BILL FOR 104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB1406 Introduced 1/31/2025, by Sen. Dale Fowler SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-6135 ILCS 110/3-5135 ILCS 115/2d35 ILCS 120/2-51 35 ILCS 105/3-61 35 ILCS 110/3-51 35 ILCS 115/2d 35 ILCS 120/2-51 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, for aircraft purchased on or after January 1, 2025, "use as rolling stock moving in interstate commerce" occurs when, during a 24-month period (currently, a 12-month period), the rolling stock has carried persons or property for hire in interstate commerce for more than 50% of its total trips for that period or for more than 50% of its total miles for that period. Effective immediately. LRB104 03813 HLH 13837 b LRB104 03813 HLH 13837 b A BILL FOR
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB1406 Introduced 1/31/2025, by Sen. Dale Fowler SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-6135 ILCS 110/3-5135 ILCS 115/2d35 ILCS 120/2-51 35 ILCS 105/3-61 35 ILCS 110/3-51 35 ILCS 115/2d 35 ILCS 120/2-51
35 ILCS 105/3-61
35 ILCS 110/3-51
35 ILCS 115/2d
35 ILCS 120/2-51
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, for aircraft purchased on or after January 1, 2025, "use as rolling stock moving in interstate commerce" occurs when, during a 24-month period (currently, a 12-month period), the rolling stock has carried persons or property for hire in interstate commerce for more than 50% of its total trips for that period or for more than 50% of its total miles for that period. Effective immediately.
LRB104 03813 HLH 13837 b LRB104 03813 HLH 13837 b
LRB104 03813 HLH 13837 b
A BILL FOR
SB1406LRB104 03813 HLH 13837 b SB1406 LRB104 03813 HLH 13837 b
SB1406 LRB104 03813 HLH 13837 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing Section
5 3-61 as follows:
6 (35 ILCS 105/3-61)
7 Sec. 3-61. Motor vehicles; trailers; use as rolling stock
8 definition.
9 (a) (Blank).
10 (b) (Blank).
11 (c) This subsection (c) applies to motor vehicles, other
12 than limousines, purchased through June 30, 2017. For motor
13 vehicles, other than limousines, purchased on or after July 1,
14 2017, subsection (d-5) applies. This subsection (c) applies to
15 limousines purchased before, on, or after July 1, 2017. "Use
16 as rolling stock moving in interstate commerce" in paragraph
17 (c) of Section 3-55 occurs for motor vehicles, as defined in
18 Section 1-146 of the Illinois Vehicle Code, when during a
19 12-month period the rolling stock has carried persons or
20 property for hire in interstate commerce for greater than 50%
21 of its total trips for that period or for greater than 50% of
22 its total miles for that period. The person claiming the
23 exemption shall make an election at the time of purchase to use
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB1406 Introduced 1/31/2025, by Sen. Dale Fowler SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-6135 ILCS 110/3-5135 ILCS 115/2d35 ILCS 120/2-51 35 ILCS 105/3-61 35 ILCS 110/3-51 35 ILCS 115/2d 35 ILCS 120/2-51
35 ILCS 105/3-61
35 ILCS 110/3-51
35 ILCS 115/2d
35 ILCS 120/2-51
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, for aircraft purchased on or after January 1, 2025, "use as rolling stock moving in interstate commerce" occurs when, during a 24-month period (currently, a 12-month period), the rolling stock has carried persons or property for hire in interstate commerce for more than 50% of its total trips for that period or for more than 50% of its total miles for that period. Effective immediately.
LRB104 03813 HLH 13837 b LRB104 03813 HLH 13837 b
LRB104 03813 HLH 13837 b
A BILL FOR
35 ILCS 105/3-61
35 ILCS 110/3-51
35 ILCS 115/2d
35 ILCS 120/2-51
LRB104 03813 HLH 13837 b
SB1406 LRB104 03813 HLH 13837 b
SB1406- 2 -LRB104 03813 HLH 13837 b SB1406 - 2 - LRB104 03813 HLH 13837 b
SB1406 - 2 - LRB104 03813 HLH 13837 b
1 either the trips or mileage method. Persons who purchased
2 motor vehicles prior to July 1, 2004 shall make an election to
3 use either the trips or mileage method and document that
4 election in their books and records. If no election is made
5 under this subsection to use the trips or mileage method, the
6 person shall be deemed to have chosen the mileage method.
7 For purposes of determining qualifying trips or miles,
8 motor vehicles that carry persons or property for hire, even
9 just between points in Illinois, will be considered used for
10 hire in interstate commerce if the motor vehicle transports
11 persons whose journeys or property whose shipments originate
12 or terminate outside Illinois. The exemption for motor
13 vehicles used as rolling stock moving in interstate commerce
14 may be claimed only for the following vehicles: (i) motor
15 vehicles whose gross vehicle weight rating exceeds 16,000
16 pounds; and (ii) limousines, as defined in Section 1-139.1 of
17 the Illinois Vehicle Code. Through June 30, 2017, this
18 definition applies to all property purchased for the purpose
19 of being attached to those motor vehicles as a part thereof. On
20 and after July 1, 2017, this definition applies to property
21 purchased for the purpose of being attached to limousines as a
22 part thereof.
23 (d) For purchases made through June 30, 2017, "use as
24 rolling stock moving in interstate commerce" in paragraph (c)
25 of Section 3-55 occurs for trailers, as defined in Section
26 1-209 of the Illinois Vehicle Code, semitrailers as defined in
SB1406 - 2 - LRB104 03813 HLH 13837 b
SB1406- 3 -LRB104 03813 HLH 13837 b SB1406 - 3 - LRB104 03813 HLH 13837 b
SB1406 - 3 - LRB104 03813 HLH 13837 b
1 Section 1-187 of the Illinois Vehicle Code, and pole trailers
2 as defined in Section 1-161 of the Illinois Vehicle Code, when
3 during a 12-month period the rolling stock has carried persons
4 or property for hire in interstate commerce for greater than
5 50% of its total trips for that period or for greater than 50%
6 of its total miles for that period. The person claiming the
7 exemption for a trailer or trailers that will not be dedicated
8 to a motor vehicle or group of motor vehicles shall make an
9 election at the time of purchase to use either the trips or
10 mileage method. Persons who purchased trailers prior to July
11 1, 2004 that are not dedicated to a motor vehicle or group of
12 motor vehicles shall make an election to use either the trips
13 or mileage method and document that election in their books
14 and records. If no election is made under this subsection to
15 use the trips or mileage method, the person shall be deemed to
16 have chosen the mileage method.
17 For purposes of determining qualifying trips or miles,
18 trailers, semitrailers, or pole trailers that carry property
19 for hire, even just between points in Illinois, will be
20 considered used for hire in interstate commerce if the
21 trailers, semitrailers, or pole trailers transport property
22 whose shipments originate or terminate outside Illinois. This
23 definition applies to all property purchased for the purpose
24 of being attached to those trailers, semitrailers, or pole
25 trailers as a part thereof. In lieu of a person providing
26 documentation regarding the qualifying use of each individual
SB1406 - 3 - LRB104 03813 HLH 13837 b
SB1406- 4 -LRB104 03813 HLH 13837 b SB1406 - 4 - LRB104 03813 HLH 13837 b
SB1406 - 4 - LRB104 03813 HLH 13837 b
1 trailer, semitrailer, or pole trailer, that person may
2 document such qualifying use by providing documentation of the
3 following:
4 (1) If a trailer, semitrailer, or pole trailer is
5 dedicated to a motor vehicle that qualifies as rolling
6 stock moving in interstate commerce under subsection (c)
7 of this Section, then that trailer, semitrailer, or pole
8 trailer qualifies as rolling stock moving in interstate
9 commerce under this subsection.
10 (2) If a trailer, semitrailer, or pole trailer is
11 dedicated to a group of motor vehicles that all qualify as
12 rolling stock moving in interstate commerce under
13 subsection (c) of this Section, then that trailer,
14 semitrailer, or pole trailer qualifies as rolling stock
15 moving in interstate commerce under this subsection.
16 (3) If one or more trailers, semitrailers, or pole
17 trailers are dedicated to a group of motor vehicles and
18 not all of those motor vehicles in that group qualify as
19 rolling stock moving in interstate commerce under
20 subsection (c) of this Section, then the percentage of
21 those trailers, semitrailers, or pole trailers that
22 qualifies as rolling stock moving in interstate commerce
23 under this subsection is equal to the percentage of those
24 motor vehicles in that group that qualify as rolling stock
25 moving in interstate commerce under subsection (c) of this
26 Section to which those trailers, semitrailers, or pole
SB1406 - 4 - LRB104 03813 HLH 13837 b
SB1406- 5 -LRB104 03813 HLH 13837 b SB1406 - 5 - LRB104 03813 HLH 13837 b
SB1406 - 5 - LRB104 03813 HLH 13837 b
1 trailers are dedicated. However, to determine the
2 qualification for the exemption provided under this item
3 (3), the mathematical application of the qualifying
4 percentage to one or more trailers, semitrailers, or pole
5 trailers under this subpart shall not be allowed as to any
6 fraction of a trailer, semitrailer, or pole trailer.
7 (d-5) For motor vehicles and trailers purchased on or
8 after July 1, 2017, "use as rolling stock moving in interstate
9 commerce" means that:
10 (1) the motor vehicle or trailer is used to transport
11 persons or property for hire;
12 (2) for purposes of the exemption under subsection (c)
13 of Section 3-55, the purchaser who is an owner, lessor, or
14 shipper claiming the exemption certifies that the motor
15 vehicle or trailer will be utilized, from the time of
16 purchase and continuing through the statute of limitations
17 for issuing a notice of tax liability under this Act, by an
18 interstate carrier or carriers for hire who hold, and are
19 required by Federal Motor Carrier Safety Administration
20 regulations to hold, an active USDOT Number with the
21 Carrier Operation listed as "Interstate" and the Operation
22 Classification listed as "authorized for hire", "exempt
23 for hire", or both "authorized for hire" and "exempt for
24 hire"; except that this paragraph (2) does not apply to a
25 motor vehicle or trailer used at an airport to support the
26 operation of an aircraft moving in interstate commerce, as
SB1406 - 5 - LRB104 03813 HLH 13837 b
SB1406- 6 -LRB104 03813 HLH 13837 b SB1406 - 6 - LRB104 03813 HLH 13837 b
SB1406 - 6 - LRB104 03813 HLH 13837 b
1 long as (i) in the case of a motor vehicle, the motor
2 vehicle meets paragraphs (1) and (3) of this subsection
3 (d-5) or (ii) in the case of a trailer, the trailer meets
4 paragraph (1) of this subsection (d-5); and
5 (3) for motor vehicles, the gross vehicle weight
6 rating exceeds 16,000 pounds.
7 The definition of "use as rolling stock moving in
8 interstate commerce" in this subsection (d-5) applies to all
9 property purchased on or after July 1, 2017 for the purpose of
10 being attached to a motor vehicle or trailer as a part thereof,
11 regardless of whether the motor vehicle or trailer was
12 purchased before, on, or after July 1, 2017.
13 If an item ceases to meet requirements (1) through (3)
14 under this subsection (d-5), then the tax is imposed on the
15 selling price, allowing for a reasonable depreciation for the
16 period during which the item qualified for the exemption.
17 For purposes of this subsection (d-5):
18 "Motor vehicle" excludes limousines, but otherwise
19 means that term as defined in Section 1-146 of the
20 Illinois Vehicle Code.
21 "Trailer" means (i) "trailer", as defined in Section
22 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
23 defined in Section 1-187 of the Illinois Vehicle Code, and
24 (iii) "pole trailer", as defined in Section 1-161 of the
25 Illinois Vehicle Code.
26 (e) For aircraft purchased on or after January 1, 2014 and
SB1406 - 6 - LRB104 03813 HLH 13837 b
SB1406- 7 -LRB104 03813 HLH 13837 b SB1406 - 7 - LRB104 03813 HLH 13837 b
SB1406 - 7 - LRB104 03813 HLH 13837 b
1 purchased before January 1, 2025 and for watercraft purchased
2 on or after January 1, 2014, "use as rolling stock moving in
3 interstate commerce" in paragraph (c) of Section 3-55 occurs
4 when, during a 12-month period, the rolling stock has carried
5 persons or property for hire in interstate commerce for
6 greater than 50% of its total trips for that period or for
7 greater than 50% of its total miles for that period. For
8 aircraft purchased on or after January 1, 2025, "use as
9 rolling stock moving in interstate commerce" in paragraph (c)
10 of Section 3-55 occurs when, during a 24-month period, the
11 rolling stock has carried persons or property for hire in
12 interstate commerce for more than 50% of its total trips for
13 that period or for more than 50% of its total miles for that
14 period. The person claiming the exemption shall make an
15 election at the time of purchase to use either the trips or
16 mileage method and document that election in their books and
17 records. If no election is made under this subsection to use
18 the trips or mileage method, the person shall be deemed to have
19 chosen the mileage method. For aircraft, flight hours may be
20 used in lieu of recording miles in determining whether the
21 aircraft meets the mileage test in this subsection. For
22 watercraft, nautical miles or trip hours may be used in lieu of
23 recording miles in determining whether the watercraft meets
24 the mileage test in this subsection.
25 Notwithstanding any other provision of law to the
26 contrary, property purchased on or after January 1, 2014 for
SB1406 - 7 - LRB104 03813 HLH 13837 b
SB1406- 8 -LRB104 03813 HLH 13837 b SB1406 - 8 - LRB104 03813 HLH 13837 b
SB1406 - 8 - LRB104 03813 HLH 13837 b
1 the purpose of being attached to aircraft or watercraft as a
2 part thereof qualifies as rolling stock moving in interstate
3 commerce only if the aircraft or watercraft to which it will be
4 attached qualifies as rolling stock moving in interstate
5 commerce under the test set forth in this subsection (e),
6 regardless of when the aircraft or watercraft was purchased.
7 Persons who purchased aircraft or watercraft prior to January
8 1, 2014 shall make an election to use either the trips or
9 mileage method and document that election in their books and
10 records for the purpose of determining whether property
11 purchased on or after January 1, 2014 for the purpose of being
12 attached to aircraft or watercraft as a part thereof qualifies
13 as rolling stock moving in interstate commerce under this
14 subsection (e).
15 (f) The election to use either the trips or mileage method
16 made under the provisions of subsections (c), (d), or (e) of
17 this Section will remain in effect for the duration of the
18 purchaser's ownership of that item.
19 (Source: P.A. 100-321, eff. 8-24-17.)
20 Section 10. The Service Use Tax Act is amended by changing
21 Section 3-51 as follows:
22 (35 ILCS 110/3-51)
23 Sec. 3-51. Motor vehicles; trailers; use as rolling stock
24 definition.
SB1406 - 8 - LRB104 03813 HLH 13837 b
SB1406- 9 -LRB104 03813 HLH 13837 b SB1406 - 9 - LRB104 03813 HLH 13837 b
SB1406 - 9 - LRB104 03813 HLH 13837 b
1 (a) (Blank).
2 (b) (Blank).
3 (c) This subsection (c) applies to motor vehicles, other
4 than limousines, purchased through June 30, 2017. For motor
5 vehicles, other than limousines, purchased on or after July 1,
6 2017, subsection (d-5) applies. This subsection (c) applies to
7 limousines purchased before, on, or after July 1, 2017. "Use
8 as rolling stock moving in interstate commerce" in paragraph
9 (4a) of the definition of "sale of service" in Section 2 and
10 subsection (b) of Section 3-45 occurs for motor vehicles, as
11 defined in Section 1-146 of the Illinois Vehicle Code, when
12 during a 12-month period the rolling stock has carried persons
13 or property for hire in interstate commerce for greater than
14 50% of its total trips for that period or for greater than 50%
15 of its total miles for that period. The person claiming the
16 exemption shall make an election at the time of purchase to use
17 either the trips or mileage method. Persons who purchased
18 motor vehicles prior to July 1, 2004 shall make an election to
19 use either the trips or mileage method and document that
20 election in their books and records. If no election is made
21 under this subsection to use the trips or mileage method, the
22 person shall be deemed to have chosen the mileage method.
23 For purposes of determining qualifying trips or miles,
24 motor vehicles that carry persons or property for hire, even
25 just between points in Illinois, will be considered used for
26 hire in interstate commerce if the motor vehicle transports
SB1406 - 9 - LRB104 03813 HLH 13837 b
SB1406- 10 -LRB104 03813 HLH 13837 b SB1406 - 10 - LRB104 03813 HLH 13837 b
SB1406 - 10 - LRB104 03813 HLH 13837 b
1 persons whose journeys or property whose shipments originate
2 or terminate outside Illinois. The exemption for motor
3 vehicles used as rolling stock moving in interstate commerce
4 may be claimed only for the following vehicles: (i) motor
5 vehicles whose gross vehicle weight rating exceeds 16,000
6 pounds; and (ii) limousines, as defined in Section 1-139.1 of
7 the Illinois Vehicle Code. Through June 30, 2017, this
8 definition applies to all property purchased for the purpose
9 of being attached to those motor vehicles as a part thereof. On
10 and after July 1, 2017, this definition applies to property
11 purchased for the purpose of being attached to limousines as a
12 part thereof.
13 (d) For purchases made through June 30, 2017, "use as
14 rolling stock moving in interstate commerce" in paragraph (4a)
15 of the definition of "sale of service" in Section 2 and
16 subsection (b) of Section 3-45 occurs for trailers, as defined
17 in Section 1-209 of the Illinois Vehicle Code, semitrailers as
18 defined in Section 1-187 of the Illinois Vehicle Code, and
19 pole trailers as defined in Section 1-161 of the Illinois
20 Vehicle Code, when during a 12-month period the rolling stock
21 has carried persons or property for hire in interstate
22 commerce for greater than 50% of its total trips for that
23 period or for greater than 50% of its total miles for that
24 period. The person claiming the exemption for a trailer or
25 trailers that will not be dedicated to a motor vehicle or group
26 of motor vehicles shall make an election at the time of
SB1406 - 10 - LRB104 03813 HLH 13837 b
SB1406- 11 -LRB104 03813 HLH 13837 b SB1406 - 11 - LRB104 03813 HLH 13837 b
SB1406 - 11 - LRB104 03813 HLH 13837 b
1 purchase to use either the trips or mileage method. Persons
2 who purchased trailers prior to July 1, 2004 that are not
3 dedicated to a motor vehicle or group of motor vehicles shall
4 make an election to use either the trips or mileage method and
5 document that election in their books and records. If no
6 election is made under this subsection to use the trips or
7 mileage method, the person shall be deemed to have chosen the
8 mileage method.
9 For purposes of determining qualifying trips or miles,
10 trailers, semitrailers, or pole trailers that carry property
11 for hire, even just between points in Illinois, will be
12 considered used for hire in interstate commerce if the
13 trailers, semitrailers, or pole trailers transport property
14 whose shipments originate or terminate outside Illinois. This
15 definition applies to all property purchased for the purpose
16 of being attached to those trailers, semitrailers, or pole
17 trailers as a part thereof. In lieu of a person providing
18 documentation regarding the qualifying use of each individual
19 trailer, semitrailer, or pole trailer, that person may
20 document such qualifying use by providing documentation of the
21 following:
22 (1) If a trailer, semitrailer, or pole trailer is
23 dedicated to a motor vehicle that qualifies as rolling
24 stock moving in interstate commerce under subsection (c)
25 of this Section, then that trailer, semitrailer, or pole
26 trailer qualifies as rolling stock moving in interstate
SB1406 - 11 - LRB104 03813 HLH 13837 b
SB1406- 12 -LRB104 03813 HLH 13837 b SB1406 - 12 - LRB104 03813 HLH 13837 b
SB1406 - 12 - LRB104 03813 HLH 13837 b
1 commerce under this subsection.
2 (2) If a trailer, semitrailer, or pole trailer is
3 dedicated to a group of motor vehicles that all qualify as
4 rolling stock moving in interstate commerce under
5 subsection (c) of this Section, then that trailer,
6 semitrailer, or pole trailer qualifies as rolling stock
7 moving in interstate commerce under this subsection.
8 (3) If one or more trailers, semitrailers, or pole
9 trailers are dedicated to a group of motor vehicles and
10 not all of those motor vehicles in that group qualify as
11 rolling stock moving in interstate commerce under
12 subsection (c) of this Section, then the percentage of
13 those trailers, semitrailers, or pole trailers that
14 qualifies as rolling stock moving in interstate commerce
15 under this subsection is equal to the percentage of those
16 motor vehicles in that group that qualify as rolling stock
17 moving in interstate commerce under subsection (c) of this
18 Section to which those trailers, semitrailers, or pole
19 trailers are dedicated. However, to determine the
20 qualification for the exemption provided under this item
21 (3), the mathematical application of the qualifying
22 percentage to one or more trailers, semitrailers, or pole
23 trailers under this subpart shall not be allowed as to any
24 fraction of a trailer, semitrailer, or pole trailer.
25 (d-5) For motor vehicles and trailers purchased on or
26 after July 1, 2017, "use as rolling stock moving in interstate
SB1406 - 12 - LRB104 03813 HLH 13837 b
SB1406- 13 -LRB104 03813 HLH 13837 b SB1406 - 13 - LRB104 03813 HLH 13837 b
SB1406 - 13 - LRB104 03813 HLH 13837 b
1 commerce" means that:
2 (1) the motor vehicle or trailer is used to transport
3 persons or property for hire;
4 (2) for purposes of the exemption under paragraph (4a)
5 of the definition of "sale of service" in Section 2, the
6 purchaser who is an owner, lessor, or shipper claiming the
7 exemption certifies that the motor vehicle or trailer will
8 be utilized, from the time of purchase and continuing
9 through the statute of limitations for issuing a notice of
10 tax liability under this Act, by an interstate carrier or
11 carriers for hire who hold, and are required by Federal
12 Motor Carrier Safety Administration regulations to hold,
13 an active USDOT Number with the Carrier Operation listed
14 as "Interstate" and the Operation Classification listed as
15 "authorized for hire", "exempt for hire", or both
16 "authorized for hire" and "exempt for hire"; except that
17 this paragraph (2) does not apply to a motor vehicle or
18 trailer used at an airport to support the operation of an
19 aircraft moving in interstate commerce, as long as (i) in
20 the case of a motor vehicle, the motor vehicle meets
21 paragraphs (1) and (3) of this subsection (d-5) or (ii) in
22 the case of a trailer, the trailer meets paragraph (1) of
23 this subsection (d-5); and
24 (3) for motor vehicles, the gross vehicle weight
25 rating exceeds 16,000 pounds.
26 The definition of "use as rolling stock moving in
SB1406 - 13 - LRB104 03813 HLH 13837 b
SB1406- 14 -LRB104 03813 HLH 13837 b SB1406 - 14 - LRB104 03813 HLH 13837 b
SB1406 - 14 - LRB104 03813 HLH 13837 b
1 interstate commerce" in this subsection (d-5) applies to all
2 property purchased on or after July 1, 2017 for the purpose of
3 being attached to a motor vehicle or trailer as a part thereof,
4 regardless of whether the motor vehicle or trailer was
5 purchased before, on, or after July 1, 2017.
6 If an item ceases to meet requirements (1) through (3)
7 under this subsection (d-5), then the tax is imposed on the
8 selling price, allowing for a reasonable depreciation for the
9 period during which the item qualified for the exemption.
10 For purposes of this subsection (d-5):
11 "Motor vehicle" excludes limousines, but otherwise
12 means that term as defined in Section 1-146 of the
13 Illinois Vehicle Code.
14 "Trailer" means (i) "trailer", as defined in Section
15 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
16 defined in Section 1-187 of the Illinois Vehicle Code, and
17 (iii) "pole trailer", as defined in Section 1-161 of the
18 Illinois Vehicle Code.
19 (e) For aircraft purchased on or after January 1, 2014 and
20 purchased before January 1, 2025 and for watercraft purchased
21 on or after January 1, 2014, "use as rolling stock moving in
22 interstate commerce" in (i) paragraph (4a) of the definition
23 of "sale of service" in Section 2 and (ii) subsection (b) of
24 Section 3-45 occurs when, during a 12-month period, the
25 rolling stock has carried persons or property for hire in
26 interstate commerce for greater than 50% of its total trips
SB1406 - 14 - LRB104 03813 HLH 13837 b
SB1406- 15 -LRB104 03813 HLH 13837 b SB1406 - 15 - LRB104 03813 HLH 13837 b
SB1406 - 15 - LRB104 03813 HLH 13837 b
1 for that period or for greater than 50% of its total miles for
2 that period. For aircraft purchased on or after January 1,
3 2025, "use as rolling stock moving in interstate commerce" in
4 (i) paragraph (4a) of the definition of "sale of service" in
5 Section 2 and (ii) subsection (b) of Section 3-45 occurs when,
6 during a 24-month period, the rolling stock has carried
7 persons or property for hire in interstate commerce for more
8 than 50% of its total trips for that period or for more than
9 50% of 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 and document that election
12 in their books and records. If no election is made under this
13 subsection to use the trips or mileage method, the person
14 shall be deemed to have chosen the mileage method. For
15 aircraft, flight hours may be used in lieu of recording miles
16 in determining whether the aircraft meets the mileage test in
17 this subsection. For watercraft, nautical miles or trip hours
18 may be used in lieu of recording miles in determining whether
19 the watercraft meets the mileage test in this subsection.
20 Notwithstanding any other provision of law to the
21 contrary, property purchased on or after January 1, 2014 for
22 the purpose of being attached to aircraft or watercraft as a
23 part thereof qualifies as rolling stock moving in interstate
24 commerce only if the aircraft or watercraft to which it will be
25 attached qualifies as rolling stock moving in interstate
26 commerce under the test set forth in this subsection (e),
SB1406 - 15 - LRB104 03813 HLH 13837 b
SB1406- 16 -LRB104 03813 HLH 13837 b SB1406 - 16 - LRB104 03813 HLH 13837 b
SB1406 - 16 - LRB104 03813 HLH 13837 b
1 regardless of when the aircraft or watercraft was purchased.
2 Persons who purchased aircraft or watercraft prior to January
3 1, 2014 shall make an election to use either the trips or
4 mileage method and document that election in their books and
5 records for the purpose of determining whether property
6 purchased on or after January 1, 2014 for the purpose of being
7 attached to aircraft or watercraft as a part thereof qualifies
8 as rolling stock moving in interstate commerce under this
9 subsection (e).
10 (f) The election to use either the trips or mileage method
11 made under the provisions of subsections (c), (d), or (e) of
12 this Section will remain in effect for the duration of the
13 purchaser's ownership of that item.
14 (Source: P.A. 100-321, eff. 8-24-17.)
15 Section 15. The Service Occupation Tax Act is amended by
16 changing Section 2d as follows:
17 (35 ILCS 115/2d)
18 Sec. 2d. Motor vehicles; trailers; use as rolling stock
19 definition.
20 (a) (Blank).
21 (b) (Blank).
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,
SB1406 - 16 - LRB104 03813 HLH 13837 b
SB1406- 17 -LRB104 03813 HLH 13837 b SB1406 - 17 - LRB104 03813 HLH 13837 b
SB1406 - 17 - LRB104 03813 HLH 13837 b
1 2017, subsection (d-5) applies. This subsection (c) applies to
2 limousines purchased before, on, or after July 1, 2017. "Use
3 as rolling stock moving in interstate commerce" in paragraph
4 (d-1) of the definition of "sale of service" in Section 2
5 occurs for motor vehicles, as defined in Section 1-146 of the
6 Illinois Vehicle Code, when during a 12-month period the
7 rolling stock has carried persons or property for hire in
8 interstate commerce for greater than 50% of its total trips
9 for that period or for greater than 50% of its total miles for
10 that period. The person claiming the exemption shall make an
11 election at the time of purchase to use either the trips or
12 mileage method. Persons who purchased motor vehicles prior to
13 July 1, 2004 shall make an election to use either the trips or
14 mileage method and document that election in their books and
15 records. If no election is made under this subsection to use
16 the trips or mileage method, the person shall be deemed to have
17 chosen the mileage method.
18 For purposes of determining qualifying trips or miles,
19 motor vehicles that carry persons or property for hire, even
20 just between points in Illinois, will be considered used for
21 hire in interstate commerce if the motor vehicle transports
22 persons whose journeys or property whose shipments originate
23 or terminate outside Illinois. The exemption for motor
24 vehicles used as rolling stock moving in interstate commerce
25 may be claimed only for the following vehicles: (i) motor
26 vehicles whose gross vehicle weight rating exceeds 16,000
SB1406 - 17 - LRB104 03813 HLH 13837 b
SB1406- 18 -LRB104 03813 HLH 13837 b SB1406 - 18 - LRB104 03813 HLH 13837 b
SB1406 - 18 - LRB104 03813 HLH 13837 b
1 pounds; and (ii) limousines, as defined in Section 1-139.1 of
2 the Illinois Vehicle Code. Through June 30, 2017, this
3 definition applies to all property purchased for the purpose
4 of being attached to those motor vehicles as a part thereof. On
5 and after July 1, 2017, this definition applies to property
6 purchased for the purpose of being attached to limousines as a
7 part thereof.
8 (d) For purchases made through June 30, 2017, "use as
9 rolling stock moving in interstate commerce" in paragraph
10 (d-1) of the definition of "sale of service" in Section 2
11 occurs for trailers, as defined in Section 1-209 of the
12 Illinois Vehicle Code, semitrailers as defined in Section
13 1-187 of the Illinois Vehicle Code, and pole trailers as
14 defined in Section 1-161 of the Illinois Vehicle Code, when
15 during a 12-month period the rolling stock has carried persons
16 or property for hire in interstate commerce for greater than
17 50% of its total trips for that period or for greater than 50%
18 of 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
23 1, 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
26 and records. If no election is made under this subsection to
SB1406 - 18 - LRB104 03813 HLH 13837 b
SB1406- 19 -LRB104 03813 HLH 13837 b SB1406 - 19 - LRB104 03813 HLH 13837 b
SB1406 - 19 - LRB104 03813 HLH 13837 b
1 use the trips or mileage method, the person shall be deemed to
2 have 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
10 of 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
14 document 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)
19 of 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
SB1406 - 19 - LRB104 03813 HLH 13837 b
SB1406- 20 -LRB104 03813 HLH 13837 b SB1406 - 20 - LRB104 03813 HLH 13837 b
SB1406 - 20 - LRB104 03813 HLH 13837 b
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
4 not 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
20 after 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
25 (d-1) of the definition of "sale of service" in Section 2,
26 the purchaser who is an owner, lessor, or shipper claiming
SB1406 - 20 - LRB104 03813 HLH 13837 b
SB1406- 21 -LRB104 03813 HLH 13837 b SB1406 - 21 - LRB104 03813 HLH 13837 b
SB1406 - 21 - LRB104 03813 HLH 13837 b
1 the exemption certifies that the motor vehicle or trailer
2 will 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
8 as "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
19 rating 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)
SB1406 - 21 - LRB104 03813 HLH 13837 b
SB1406- 22 -LRB104 03813 HLH 13837 b SB1406 - 22 - LRB104 03813 HLH 13837 b
SB1406 - 22 - LRB104 03813 HLH 13837 b
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
7 Illinois 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 purchased on or after January 1, 2014 and
14 purchased before January 1, 2025 and for watercraft purchased
15 on or after January 1, 2014, "use as rolling stock moving in
16 interstate commerce" in paragraph (d-1) of the definition of
17 "sale of service" in Section 2 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. For aircraft purchased on or after
22 January 1, 2025, "use as rolling stock moving in interstate
23 commerce" in paragraph (d-1) of the definition of "sale of
24 service" in Section 2 occurs when, during a 24-month period,
25 the rolling stock has carried persons or property for hire in
26 interstate commerce for more than 50% of its total trips for
SB1406 - 22 - LRB104 03813 HLH 13837 b
SB1406- 23 -LRB104 03813 HLH 13837 b SB1406 - 23 - LRB104 03813 HLH 13837 b
SB1406 - 23 - LRB104 03813 HLH 13837 b
1 that period or for more than 50% of its total miles for that
2 period. The person claiming the exemption shall make an
3 election at the time of purchase to use either the trips or
4 mileage method and document that election in their books and
5 records. If no election is made under this subsection to use
6 the trips or mileage method, the person shall be deemed to have
7 chosen the mileage method. For aircraft, flight hours may be
8 used in lieu of recording miles in determining whether the
9 aircraft meets the mileage test in this subsection. For
10 watercraft, nautical miles or trip hours may be used in lieu of
11 recording miles in determining whether the watercraft meets
12 the mileage test in this subsection.
13 Notwithstanding any other provision of law to the
14 contrary, property purchased on or after January 1, 2014 for
15 the purpose of being attached to aircraft or watercraft as a
16 part thereof qualifies as rolling stock moving in interstate
17 commerce only if the aircraft or watercraft to which it will be
18 attached qualifies as rolling stock moving in interstate
19 commerce under the test set forth in this subsection (e),
20 regardless of when the aircraft or watercraft was purchased.
21 Persons who purchased aircraft or watercraft prior to January
22 1, 2014 shall make an election to use either the trips or
23 mileage method and document that election in their books and
24 records for the purpose of determining whether property
25 purchased on or after January 1, 2014 for the purpose of being
26 attached to aircraft or watercraft as a part thereof qualifies
SB1406 - 23 - LRB104 03813 HLH 13837 b
SB1406- 24 -LRB104 03813 HLH 13837 b SB1406 - 24 - LRB104 03813 HLH 13837 b
SB1406 - 24 - LRB104 03813 HLH 13837 b
1 as rolling stock moving in interstate commerce under this
2 subsection (e).
3 (f) The election to use either the trips or mileage method
4 made under the provisions of subsections (c), (d), or (e) of
5 this Section will remain in effect for the duration of the
6 purchaser's ownership of that item.
7 (Source: P.A. 102-558, eff. 8-20-21.)
8 Section 20. The Retailers' Occupation Tax Act is amended
9 by changing Section 2-51 as follows:
10 (35 ILCS 120/2-51)
11 Sec. 2-51. Motor vehicles; trailers; use as rolling stock
12 definition.
13 (a) (Blank).
14 (b) (Blank).
15 (c) This subsection (c) applies to motor vehicles, other
16 than limousines, purchased through June 30, 2017. For motor
17 vehicles, other than limousines, purchased on or after July 1,
18 2017, subsection (d-5) applies. This subsection (c) applies to
19 limousines purchased before, on, or after July 1, 2017. "Use
20 as rolling stock moving in interstate commerce" in paragraph
21 (13) of Section 2-5 occurs for motor vehicles, as defined in
22 Section 1-146 of the Illinois Vehicle Code, when during a
23 12-month period the rolling stock has carried persons or
24 property for hire in interstate commerce for greater than 50%
SB1406 - 24 - LRB104 03813 HLH 13837 b
SB1406- 25 -LRB104 03813 HLH 13837 b SB1406 - 25 - LRB104 03813 HLH 13837 b
SB1406 - 25 - LRB104 03813 HLH 13837 b
1 of its total trips for that period or for greater than 50% of
2 its total miles for that period. The person claiming the
3 exemption shall make an election at the time of purchase to use
4 either the trips or mileage method. Persons who purchased
5 motor vehicles prior to July 1, 2004 shall make an election to
6 use either the trips or mileage method and document that
7 election in their books and records. If no election is made
8 under this subsection to use the trips or mileage method, the
9 person shall be deemed to have chosen the mileage method.
10 For purposes of determining qualifying trips or miles,
11 motor vehicles that carry persons or property for hire, even
12 just between points in Illinois, will be considered used for
13 hire in interstate commerce if the motor vehicle transports
14 persons whose journeys or property whose shipments originate
15 or terminate outside Illinois. The exemption for motor
16 vehicles used as rolling stock moving in interstate commerce
17 may be claimed only for the following vehicles: (i) motor
18 vehicles whose gross vehicle weight rating exceeds 16,000
19 pounds; and (ii) limousines, as defined in Section 1-139.1 of
20 the Illinois Vehicle Code. Through June 30, 2017, this
21 definition applies to all property purchased for the purpose
22 of being attached to those motor vehicles as a part thereof. On
23 and after July 1, 2017, this definition applies to property
24 purchased for the purpose of being attached to limousines as a
25 part thereof.
26 (d) For purchases made through June 30, 2017, "use as
SB1406 - 25 - LRB104 03813 HLH 13837 b
SB1406- 26 -LRB104 03813 HLH 13837 b SB1406 - 26 - LRB104 03813 HLH 13837 b
SB1406 - 26 - LRB104 03813 HLH 13837 b
1 rolling stock moving in interstate commerce" in paragraph (13)
2 of Section 2-5 occurs for trailers, as defined in Section
3 1-209 of the Illinois Vehicle Code, semitrailers as defined in
4 Section 1-187 of the Illinois Vehicle Code, and pole trailers
5 as defined in Section 1-161 of the Illinois Vehicle Code, when
6 during a 12-month period the rolling stock has carried persons
7 or property for hire in interstate commerce for greater than
8 50% of its total trips for that period or for greater than 50%
9 of its total miles for that period. The person claiming the
10 exemption for a trailer or trailers that will not be dedicated
11 to a motor vehicle or group of motor vehicles shall make an
12 election at the time of purchase to use either the trips or
13 mileage method. Persons who purchased trailers prior to July
14 1, 2004 that are not dedicated to a motor vehicle or group of
15 motor vehicles shall make an election to use either the trips
16 or mileage method and document that election in their books
17 and records. If no election is made under this subsection to
18 use the trips or mileage method, the person shall be deemed to
19 have chosen the mileage method.
20 For purposes of determining qualifying trips or miles,
21 trailers, semitrailers, or pole trailers that carry property
22 for hire, even just between points in Illinois, will be
23 considered used for hire in interstate commerce if the
24 trailers, semitrailers, or pole trailers transport property
25 whose shipments originate or terminate outside Illinois. This
26 definition applies to all property purchased for the purpose
SB1406 - 26 - LRB104 03813 HLH 13837 b
SB1406- 27 -LRB104 03813 HLH 13837 b SB1406 - 27 - LRB104 03813 HLH 13837 b
SB1406 - 27 - LRB104 03813 HLH 13837 b
1 of being attached to those trailers, semitrailers, or pole
2 trailers as a part thereof. In lieu of a person providing
3 documentation regarding the qualifying use of each individual
4 trailer, semitrailer, or pole trailer, that person may
5 document such qualifying use by providing documentation of the
6 following:
7 (1) If a trailer, semitrailer, or pole trailer is
8 dedicated to a motor vehicle that qualifies as rolling
9 stock moving in interstate commerce under subsection (c)
10 of this Section, then that trailer, semitrailer, or pole
11 trailer qualifies as rolling stock moving in interstate
12 commerce under this subsection.
13 (2) If a trailer, semitrailer, or pole trailer is
14 dedicated to a group of motor vehicles that all qualify as
15 rolling stock moving in interstate commerce under
16 subsection (c) of this Section, then that trailer,
17 semitrailer, or pole trailer qualifies as rolling stock
18 moving in interstate commerce under this subsection.
19 (3) If one or more trailers, semitrailers, or pole
20 trailers are dedicated to a group of motor vehicles and
21 not all of those motor vehicles in that group qualify as
22 rolling stock moving in interstate commerce under
23 subsection (c) of this Section, then the percentage of
24 those trailers, semitrailers, or pole trailers that
25 qualifies as rolling stock moving in interstate commerce
26 under this subsection is equal to the percentage of those
SB1406 - 27 - LRB104 03813 HLH 13837 b
SB1406- 28 -LRB104 03813 HLH 13837 b SB1406 - 28 - LRB104 03813 HLH 13837 b
SB1406 - 28 - LRB104 03813 HLH 13837 b
1 motor vehicles in that group that qualify as rolling stock
2 moving in interstate commerce under subsection (c) of this
3 Section to which those trailers, semitrailers, or pole
4 trailers are dedicated. However, to determine the
5 qualification for the exemption provided under this item
6 (3), the mathematical application of the qualifying
7 percentage to one or more trailers, semitrailers, or pole
8 trailers under this subpart shall not be allowed as to any
9 fraction of a trailer, semitrailer, or pole trailer.
10 (d-5) For motor vehicles and trailers purchased on or
11 after July 1, 2017, "use as rolling stock moving in interstate
12 commerce" means that:
13 (1) the motor vehicle or trailer is used to transport
14 persons or property for hire;
15 (2) for purposes of the exemption under paragraph (13)
16 of Section 2-5, the purchaser who is an owner, lessor, or
17 shipper claiming the exemption certifies that the motor
18 vehicle or trailer will be utilized, from the time of
19 purchase and continuing through the statute of limitations
20 for issuing a notice of tax liability under this Act, by an
21 interstate carrier or carriers for hire who hold, and are
22 required by Federal Motor Carrier Safety Administration
23 regulations to hold, an active USDOT Number with the
24 Carrier Operation listed as "Interstate" and the Operation
25 Classification listed as "authorized for hire", "exempt
26 for hire", or both "authorized for hire" and "exempt for
SB1406 - 28 - LRB104 03813 HLH 13837 b
SB1406- 29 -LRB104 03813 HLH 13837 b SB1406 - 29 - LRB104 03813 HLH 13837 b
SB1406 - 29 - LRB104 03813 HLH 13837 b
1 hire"; except that this paragraph (2) does not apply to a
2 motor vehicle or trailer used at an airport to support the
3 operation of an aircraft moving in interstate commerce, as
4 long as (i) in the case of a motor vehicle, the motor
5 vehicle meets paragraphs (1) and (3) of this subsection
6 (d-5) or (ii) in the case of a trailer, the trailer meets
7 paragraph (1) of this subsection (d-5); and
8 (3) for motor vehicles, the gross vehicle weight
9 rating exceeds 16,000 pounds.
10 The definition of "use as rolling stock moving in
11 interstate commerce" in this subsection (d-5) applies to all
12 property purchased on or after July 1, 2017 for the purpose of
13 being attached to a motor vehicle or trailer as a part thereof,
14 regardless of whether the motor vehicle or trailer was
15 purchased before, on, or after July 1, 2017.
16 If an item ceases to meet requirements (1) through (3)
17 under this subsection (d-5), then the tax is imposed on the
18 selling price, allowing for a reasonable depreciation for the
19 period during which the item qualified for the exemption.
20 For purposes of this subsection (d-5):
21 "Motor vehicle" excludes limousines, but otherwise
22 means that term as defined in Section 1-146 of the
23 Illinois Vehicle Code.
24 "Trailer" means (i) "trailer", as defined in Section
25 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
26 defined in Section 1-187 of the Illinois Vehicle Code, and
SB1406 - 29 - LRB104 03813 HLH 13837 b
SB1406- 30 -LRB104 03813 HLH 13837 b SB1406 - 30 - LRB104 03813 HLH 13837 b
SB1406 - 30 - LRB104 03813 HLH 13837 b
1 (iii) "pole trailer", as defined in Section 1-161 of the
2 Illinois Vehicle Code.
3 (e) For aircraft purchased on or after January 1, 2014 and
4 purchased before January 1, 2025 and for watercraft purchased
5 on or after January 1, 2014, "use as rolling stock moving in
6 interstate commerce" in paragraph (13) of Section 2-5 occurs
7 when, during a 12-month period, the rolling stock has carried
8 persons or property for hire in interstate commerce for
9 greater than 50% of its total trips for that period or for
10 greater than 50% of its total miles for that period. For
11 aircraft purchased on or after January 1, 2025, "use as
12 rolling stock moving in interstate commerce" in paragraph (13)
13 of Section 2-5 occurs when, during a 24-month period, the
14 rolling stock has carried persons or property for hire in
15 interstate commerce for more than 50% of its total trips for
16 that period or for more than 50% of its total miles for that
17 period. The person claiming the exemption shall make an
18 election at the time of purchase to use either the trips or
19 mileage method and document that election in their books and
20 records. If no election is made under this subsection to use
21 the trips or mileage method, the person shall be deemed to have
22 chosen the mileage method. For aircraft, flight hours may be
23 used in lieu of recording miles in determining whether the
24 aircraft meets the mileage test in this subsection. For
25 watercraft, nautical miles or trip hours may be used in lieu of
26 recording miles in determining whether the watercraft meets
SB1406 - 30 - LRB104 03813 HLH 13837 b
SB1406- 31 -LRB104 03813 HLH 13837 b SB1406 - 31 - LRB104 03813 HLH 13837 b
SB1406 - 31 - LRB104 03813 HLH 13837 b
1 the mileage test in this subsection.
2 Notwithstanding any other provision of law to the
3 contrary, property purchased on or after January 1, 2014 for
4 the purpose of being attached to aircraft or watercraft as a
5 part thereof qualifies as rolling stock moving in interstate
6 commerce only if the aircraft or watercraft to which it will be
7 attached qualifies as rolling stock moving in interstate
8 commerce under the test set forth in this subsection (e),
9 regardless of when the aircraft or watercraft was purchased.
10 Persons who purchased aircraft or watercraft prior to January
11 1, 2014 shall make an election to use either the trips or
12 mileage method and document that election in their books and
13 records for the purpose of determining whether property
14 purchased on or after January 1, 2014 for the purpose of being
15 attached to aircraft or watercraft as a part thereof qualifies
16 as rolling stock moving in interstate commerce under this
17 subsection (e).
18 (f) The election to use either the trips or mileage method
19 made under the provisions of subsections (c), (d), or (e) of
20 this Section will remain in effect for the duration of the
21 purchaser's ownership of that item.
22 (Source: P.A. 100-321, eff. 8-24-17.)
SB1406 - 31 - LRB104 03813 HLH 13837 b