Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1406 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	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
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1406 Introduced 1/31/2025, by Sen. Dale Fowler SYNOPSIS AS INTRODUCED:
3	3	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
4	4	35 ILCS 105/3-61
5	5	35 ILCS 110/3-51
6	6	35 ILCS 115/2d
7	7	35 ILCS 120/2-51
8	8	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.
9	9	LRB104 03813 HLH 13837 b LRB104 03813 HLH 13837 b
10	10	LRB104 03813 HLH 13837 b
11	11	A BILL FOR
12	12	SB1406LRB104 03813 HLH 13837 b SB1406 LRB104 03813 HLH 13837 b
13	13	SB1406 LRB104 03813 HLH 13837 b
14	14	1 AN ACT concerning revenue.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Use Tax Act is amended by changing Section
18	18	5 3-61 as follows:
19	19	6 (35 ILCS 105/3-61)
20	20	7 Sec. 3-61. Motor vehicles; trailers; use as rolling stock
21	21	8 definition.
22	22	9 (a) (Blank).
23	23	10 (b) (Blank).
24	24	11 (c) This subsection (c) applies to motor vehicles, other
25	25	12 than limousines, purchased through June 30, 2017. For motor
26	26	13 vehicles, other than limousines, purchased on or after July 1,
27	27	14 2017, subsection (d-5) applies. This subsection (c) applies to
28	28	15 limousines purchased before, on, or after July 1, 2017. "Use
29	29	16 as rolling stock moving in interstate commerce" in paragraph
30	30	17 (c) of Section 3-55 occurs for motor vehicles, as defined in
31	31	18 Section 1-146 of the Illinois Vehicle Code, when during a
32	32	19 12-month period the rolling stock has carried persons or
33	33	20 property for hire in interstate commerce for greater than 50%
34	34	21 of its total trips for that period or for greater than 50% of
35	35	22 its total miles for that period. The person claiming the
36	36	23 exemption shall make an election at the time of purchase to use
37	37
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40	40	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1406 Introduced 1/31/2025, by Sen. Dale Fowler SYNOPSIS AS INTRODUCED:
41	41	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
42	42	35 ILCS 105/3-61
43	43	35 ILCS 110/3-51
44	44	35 ILCS 115/2d
45	45	35 ILCS 120/2-51
46	46	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.
47	47	LRB104 03813 HLH 13837 b LRB104 03813 HLH 13837 b
48	48	LRB104 03813 HLH 13837 b
49	49	A BILL FOR
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55	55	35 ILCS 105/3-61
56	56	35 ILCS 110/3-51
57	57	35 ILCS 115/2d
58	58	35 ILCS 120/2-51
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77	77	1 either the trips or mileage method. Persons who purchased
78	78	2 motor vehicles prior to July 1, 2004 shall make an election to
79	79	3 use either the trips or mileage method and document that
80	80	4 election in their books and records. If no election is made
81	81	5 under this subsection to use the trips or mileage method, the
82	82	6 person shall be deemed to have chosen the mileage method.
83	83	7 For purposes of determining qualifying trips or miles,
84	84	8 motor vehicles that carry persons or property for hire, even
85	85	9 just between points in Illinois, will be considered used for
86	86	10 hire in interstate commerce if the motor vehicle transports
87	87	11 persons whose journeys or property whose shipments originate
88	88	12 or terminate outside Illinois. The exemption for motor
89	89	13 vehicles used as rolling stock moving in interstate commerce
90	90	14 may be claimed only for the following vehicles: (i) motor
91	91	15 vehicles whose gross vehicle weight rating exceeds 16,000
92	92	16 pounds; and (ii) limousines, as defined in Section 1-139.1 of
93	93	17 the Illinois Vehicle Code. Through June 30, 2017, this
94	94	18 definition applies to all property purchased for the purpose
95	95	19 of being attached to those motor vehicles as a part thereof. On
96	96	20 and after July 1, 2017, this definition applies to property
97	97	21 purchased for the purpose of being attached to limousines as a
98	98	22 part thereof.
99	99	23 (d) For purchases made through June 30, 2017, "use as
100	100	24 rolling stock moving in interstate commerce" in paragraph (c)
101	101	25 of Section 3-55 occurs for trailers, as defined in Section
102	102	26 1-209 of the Illinois Vehicle Code, semitrailers as defined in
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113	113	1 Section 1-187 of the Illinois Vehicle Code, and pole trailers
114	114	2 as defined in Section 1-161 of the Illinois Vehicle Code, when
115	115	3 during a 12-month period the rolling stock has carried persons
116	116	4 or property for hire in interstate commerce for greater than
117	117	5 50% of its total trips for that period or for greater than 50%
118	118	6 of its total miles for that period. The person claiming the
119	119	7 exemption for a trailer or trailers that will not be dedicated
120	120	8 to a motor vehicle or group of motor vehicles shall make an
121	121	9 election at the time of purchase to use either the trips or
122	122	10 mileage method. Persons who purchased trailers prior to July
123	123	11 1, 2004 that are not dedicated to a motor vehicle or group of
124	124	12 motor vehicles shall make an election to use either the trips
125	125	13 or mileage method and document that election in their books
126	126	14 and records. If no election is made under this subsection to
127	127	15 use the trips or mileage method, the person shall be deemed to
128	128	16 have chosen the mileage method.
129	129	17 For purposes of determining qualifying trips or miles,
130	130	18 trailers, semitrailers, or pole trailers that carry property
131	131	19 for hire, even just between points in Illinois, will be
132	132	20 considered used for hire in interstate commerce if the
133	133	21 trailers, semitrailers, or pole trailers transport property
134	134	22 whose shipments originate or terminate outside Illinois. This
135	135	23 definition applies to all property purchased for the purpose
136	136	24 of being attached to those trailers, semitrailers, or pole
137	137	25 trailers as a part thereof. In lieu of a person providing
138	138	26 documentation regarding the qualifying use of each individual
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149	149	1 trailer, semitrailer, or pole trailer, that person may
150	150	2 document such qualifying use by providing documentation of the
151	151	3 following:
152	152	4 (1) If a trailer, semitrailer, or pole trailer is
153	153	5 dedicated to a motor vehicle that qualifies as rolling
154	154	6 stock moving in interstate commerce under subsection (c)
155	155	7 of this Section, then that trailer, semitrailer, or pole
156	156	8 trailer qualifies as rolling stock moving in interstate
157	157	9 commerce under this subsection.
158	158	10 (2) If a trailer, semitrailer, or pole trailer is
159	159	11 dedicated to a group of motor vehicles that all qualify as
160	160	12 rolling stock moving in interstate commerce under
161	161	13 subsection (c) of this Section, then that trailer,
162	162	14 semitrailer, or pole trailer qualifies as rolling stock
163	163	15 moving in interstate commerce under this subsection.
164	164	16 (3) If one or more trailers, semitrailers, or pole
165	165	17 trailers are dedicated to a group of motor vehicles and
166	166	18 not all of those motor vehicles in that group qualify as
167	167	19 rolling stock moving in interstate commerce under
168	168	20 subsection (c) of this Section, then the percentage of
169	169	21 those trailers, semitrailers, or pole trailers that
170	170	22 qualifies as rolling stock moving in interstate commerce
171	171	23 under this subsection is equal to the percentage of those
172	172	24 motor vehicles in that group that qualify as rolling stock
173	173	25 moving in interstate commerce under subsection (c) of this
174	174	26 Section to which those trailers, semitrailers, or pole
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185	185	1 trailers are dedicated. However, to determine the
186	186	2 qualification for the exemption provided under this item
187	187	3 (3), the mathematical application of the qualifying
188	188	4 percentage to one or more trailers, semitrailers, or pole
189	189	5 trailers under this subpart shall not be allowed as to any
190	190	6 fraction of a trailer, semitrailer, or pole trailer.
191	191	7 (d-5) For motor vehicles and trailers purchased on or
192	192	8 after July 1, 2017, "use as rolling stock moving in interstate
193	193	9 commerce" means that:
194	194	10 (1) the motor vehicle or trailer is used to transport
195	195	11 persons or property for hire;
196	196	12 (2) for purposes of the exemption under subsection (c)
197	197	13 of Section 3-55, the purchaser who is an owner, lessor, or
198	198	14 shipper claiming the exemption certifies that the motor
199	199	15 vehicle or trailer will be utilized, from the time of
200	200	16 purchase and continuing through the statute of limitations
201	201	17 for issuing a notice of tax liability under this Act, by an
202	202	18 interstate carrier or carriers for hire who hold, and are
203	203	19 required by Federal Motor Carrier Safety Administration
204	204	20 regulations to hold, an active USDOT Number with the
205	205	21 Carrier Operation listed as "Interstate" and the Operation
206	206	22 Classification listed as "authorized for hire", "exempt
207	207	23 for hire", or both "authorized for hire" and "exempt for
208	208	24 hire"; except that this paragraph (2) does not apply to a
209	209	25 motor vehicle or trailer used at an airport to support the
210	210	26 operation of an aircraft moving in interstate commerce, as
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221	221	1 long as (i) in the case of a motor vehicle, the motor
222	222	2 vehicle meets paragraphs (1) and (3) of this subsection
223	223	3 (d-5) or (ii) in the case of a trailer, the trailer meets
224	224	4 paragraph (1) of this subsection (d-5); and
225	225	5 (3) for motor vehicles, the gross vehicle weight
226	226	6 rating exceeds 16,000 pounds.
227	227	7 The definition of "use as rolling stock moving in
228	228	8 interstate commerce" in this subsection (d-5) applies to all
229	229	9 property purchased on or after July 1, 2017 for the purpose of
230	230	10 being attached to a motor vehicle or trailer as a part thereof,
231	231	11 regardless of whether the motor vehicle or trailer was
232	232	12 purchased before, on, or after July 1, 2017.
233	233	13 If an item ceases to meet requirements (1) through (3)
234	234	14 under this subsection (d-5), then the tax is imposed on the
235	235	15 selling price, allowing for a reasonable depreciation for the
236	236	16 period during which the item qualified for the exemption.
237	237	17 For purposes of this subsection (d-5):
238	238	18 "Motor vehicle" excludes limousines, but otherwise
239	239	19 means that term as defined in Section 1-146 of the
240	240	20 Illinois Vehicle Code.
241	241	21 "Trailer" means (i) "trailer", as defined in Section
242	242	22 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
243	243	23 defined in Section 1-187 of the Illinois Vehicle Code, and
244	244	24 (iii) "pole trailer", as defined in Section 1-161 of the
245	245	25 Illinois Vehicle Code.
246	246	26 (e) For aircraft purchased on or after January 1, 2014 and
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257	257	1 purchased before January 1, 2025 and for watercraft purchased
258	258	2 on or after January 1, 2014, "use as rolling stock moving in
259	259	3 interstate commerce" in paragraph (c) of Section 3-55 occurs
260	260	4 when, during a 12-month period, the rolling stock has carried
261	261	5 persons or property for hire in interstate commerce for
262	262	6 greater than 50% of its total trips for that period or for
263	263	7 greater than 50% of its total miles for that period. For
264	264	8 aircraft purchased on or after January 1, 2025, "use as
265	265	9 rolling stock moving in interstate commerce" in paragraph (c)
266	266	10 of Section 3-55 occurs when, during a 24-month period, the
267	267	11 rolling stock has carried persons or property for hire in
268	268	12 interstate commerce for more than 50% of its total trips for
269	269	13 that period or for more than 50% of its total miles for that
270	270	14 period. The person claiming the exemption shall make an
271	271	15 election at the time of purchase to use either the trips or
272	272	16 mileage method and document that election in their books and
273	273	17 records. If no election is made under this subsection to use
274	274	18 the trips or mileage method, the person shall be deemed to have
275	275	19 chosen the mileage method. For aircraft, flight hours may be
276	276	20 used in lieu of recording miles in determining whether the
277	277	21 aircraft meets the mileage test in this subsection. For
278	278	22 watercraft, nautical miles or trip hours may be used in lieu of
279	279	23 recording miles in determining whether the watercraft meets
280	280	24 the mileage test in this subsection.
281	281	25 Notwithstanding any other provision of law to the
282	282	26 contrary, property purchased on or after January 1, 2014 for
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293	293	1 the purpose of being attached to aircraft or watercraft as a
294	294	2 part thereof qualifies as rolling stock moving in interstate
295	295	3 commerce only if the aircraft or watercraft to which it will be
296	296	4 attached qualifies as rolling stock moving in interstate
297	297	5 commerce under the test set forth in this subsection (e),
298	298	6 regardless of when the aircraft or watercraft was purchased.
299	299	7 Persons who purchased aircraft or watercraft prior to January
300	300	8 1, 2014 shall make an election to use either the trips or
301	301	9 mileage method and document that election in their books and
302	302	10 records for the purpose of determining whether property
303	303	11 purchased on or after January 1, 2014 for the purpose of being
304	304	12 attached to aircraft or watercraft as a part thereof qualifies
305	305	13 as rolling stock moving in interstate commerce under this
306	306	14 subsection (e).
307	307	15 (f) The election to use either the trips or mileage method
308	308	16 made under the provisions of subsections (c), (d), or (e) of
309	309	17 this Section will remain in effect for the duration of the
310	310	18 purchaser's ownership of that item.
311	311	19 (Source: P.A. 100-321, eff. 8-24-17.)
312	312	20 Section 10. The Service Use Tax Act is amended by changing
313	313	21 Section 3-51 as follows:
314	314	22 (35 ILCS 110/3-51)
315	315	23 Sec. 3-51. Motor vehicles; trailers; use as rolling stock
316	316	24 definition.
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327	327	1 (a) (Blank).
328	328	2 (b) (Blank).
329	329	3 (c) This subsection (c) applies to motor vehicles, other
330	330	4 than limousines, purchased through June 30, 2017. For motor
331	331	5 vehicles, other than limousines, purchased on or after July 1,
332	332	6 2017, subsection (d-5) applies. This subsection (c) applies to
333	333	7 limousines purchased before, on, or after July 1, 2017. "Use
334	334	8 as rolling stock moving in interstate commerce" in paragraph
335	335	9 (4a) of the definition of "sale of service" in Section 2 and
336	336	10 subsection (b) of Section 3-45 occurs for motor vehicles, as
337	337	11 defined in Section 1-146 of the Illinois Vehicle Code, when
338	338	12 during a 12-month period the rolling stock has carried persons
339	339	13 or property for hire in interstate commerce for greater than
340	340	14 50% of its total trips for that period or for greater than 50%
341	341	15 of its total miles for that period. The person claiming the
342	342	16 exemption shall make an election at the time of purchase to use
343	343	17 either the trips or mileage method. Persons who purchased
344	344	18 motor vehicles prior to July 1, 2004 shall make an election to
345	345	19 use either the trips or mileage method and document that
346	346	20 election in their books and records. If no election is made
347	347	21 under this subsection to use the trips or mileage method, the
348	348	22 person shall be deemed to have chosen the mileage method.
349	349	23 For purposes of determining qualifying trips or miles,
350	350	24 motor vehicles that carry persons or property for hire, even
351	351	25 just between points in Illinois, will be considered used for
352	352	26 hire in interstate commerce if the motor vehicle transports
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363	363	1 persons whose journeys or property whose shipments originate
364	364	2 or terminate outside Illinois. The exemption for motor
365	365	3 vehicles used as rolling stock moving in interstate commerce
366	366	4 may be claimed only for the following vehicles: (i) motor
367	367	5 vehicles whose gross vehicle weight rating exceeds 16,000
368	368	6 pounds; and (ii) limousines, as defined in Section 1-139.1 of
369	369	7 the Illinois Vehicle Code. Through June 30, 2017, this
370	370	8 definition applies to all property purchased for the purpose
371	371	9 of being attached to those motor vehicles as a part thereof. On
372	372	10 and after July 1, 2017, this definition applies to property
373	373	11 purchased for the purpose of being attached to limousines as a
374	374	12 part thereof.
375	375	13 (d) For purchases made through June 30, 2017, "use as
376	376	14 rolling stock moving in interstate commerce" in paragraph (4a)
377	377	15 of the definition of "sale of service" in Section 2 and
378	378	16 subsection (b) of Section 3-45 occurs for trailers, as defined
379	379	17 in Section 1-209 of the Illinois Vehicle Code, semitrailers as
380	380	18 defined in Section 1-187 of the Illinois Vehicle Code, and
381	381	19 pole trailers as defined in Section 1-161 of the Illinois
382	382	20 Vehicle Code, when during a 12-month period the rolling stock
383	383	21 has carried persons or property for hire in interstate
384	384	22 commerce for greater than 50% of its total trips for that
385	385	23 period or for greater than 50% of its total miles for that
386	386	24 period. The person claiming the exemption for a trailer or
387	387	25 trailers that will not be dedicated to a motor vehicle or group
388	388	26 of motor vehicles shall make an election at the time of
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399	399	1 purchase to use either the trips or mileage method. Persons
400	400	2 who purchased trailers prior to July 1, 2004 that are not
401	401	3 dedicated to a motor vehicle or group of motor vehicles shall
402	402	4 make an election to use either the trips or mileage method and
403	403	5 document that election in their books and records. If no
404	404	6 election is made under this subsection to use the trips or
405	405	7 mileage method, the person shall be deemed to have chosen the
406	406	8 mileage method.
407	407	9 For purposes of determining qualifying trips or miles,
408	408	10 trailers, semitrailers, or pole trailers that carry property
409	409	11 for hire, even just between points in Illinois, will be
410	410	12 considered used for hire in interstate commerce if the
411	411	13 trailers, semitrailers, or pole trailers transport property
412	412	14 whose shipments originate or terminate outside Illinois. This
413	413	15 definition applies to all property purchased for the purpose
414	414	16 of being attached to those trailers, semitrailers, or pole
415	415	17 trailers as a part thereof. In lieu of a person providing
416	416	18 documentation regarding the qualifying use of each individual
417	417	19 trailer, semitrailer, or pole trailer, that person may
418	418	20 document such qualifying use by providing documentation of the
419	419	21 following:
420	420	22 (1) If a trailer, semitrailer, or pole trailer is
421	421	23 dedicated to a motor vehicle that qualifies as rolling
422	422	24 stock moving in interstate commerce under subsection (c)
423	423	25 of this Section, then that trailer, semitrailer, or pole
424	424	26 trailer qualifies as rolling stock moving in interstate
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435	435	1 commerce under this subsection.
436	436	2 (2) If a trailer, semitrailer, or pole trailer is
437	437	3 dedicated to a group of motor vehicles that all qualify as
438	438	4 rolling stock moving in interstate commerce under
439	439	5 subsection (c) of this Section, then that trailer,
440	440	6 semitrailer, or pole trailer qualifies as rolling stock
441	441	7 moving in interstate commerce under this subsection.
442	442	8 (3) If one or more trailers, semitrailers, or pole
443	443	9 trailers are dedicated to a group of motor vehicles and
444	444	10 not all of those motor vehicles in that group qualify as
445	445	11 rolling stock moving in interstate commerce under
446	446	12 subsection (c) of this Section, then the percentage of
447	447	13 those trailers, semitrailers, or pole trailers that
448	448	14 qualifies as rolling stock moving in interstate commerce
449	449	15 under this subsection is equal to the percentage of those
450	450	16 motor vehicles in that group that qualify as rolling stock
451	451	17 moving in interstate commerce under subsection (c) of this
452	452	18 Section to which those trailers, semitrailers, or pole
453	453	19 trailers are dedicated. However, to determine the
454	454	20 qualification for the exemption provided under this item
455	455	21 (3), the mathematical application of the qualifying
456	456	22 percentage to one or more trailers, semitrailers, or pole
457	457	23 trailers under this subpart shall not be allowed as to any
458	458	24 fraction of a trailer, semitrailer, or pole trailer.
459	459	25 (d-5) For motor vehicles and trailers purchased on or
460	460	26 after July 1, 2017, "use as rolling stock moving in interstate
461	461
462	462
463	463
464	464
465	465
466	466	SB1406 - 12 - LRB104 03813 HLH 13837 b
467	467
468	468
469	469	SB1406- 13 -LRB104 03813 HLH 13837 b SB1406 - 13 - LRB104 03813 HLH 13837 b
470	470	SB1406 - 13 - LRB104 03813 HLH 13837 b
471	471	1 commerce" means that:
472	472	2 (1) the motor vehicle or trailer is used to transport
473	473	3 persons or property for hire;
474	474	4 (2) for purposes of the exemption under paragraph (4a)
475	475	5 of the definition of "sale of service" in Section 2, the
476	476	6 purchaser who is an owner, lessor, or shipper claiming the
477	477	7 exemption certifies that the motor vehicle or trailer will
478	478	8 be utilized, from the time of purchase and continuing
479	479	9 through the statute of limitations for issuing a notice of
480	480	10 tax liability under this Act, by an interstate carrier or
481	481	11 carriers for hire who hold, and are required by Federal
482	482	12 Motor Carrier Safety Administration regulations to hold,
483	483	13 an active USDOT Number with the Carrier Operation listed
484	484	14 as "Interstate" and the Operation Classification listed as
485	485	15 "authorized for hire", "exempt for hire", or both
486	486	16 "authorized for hire" and "exempt for hire"; except that
487	487	17 this paragraph (2) does not apply to a motor vehicle or
488	488	18 trailer used at an airport to support the operation of an
489	489	19 aircraft moving in interstate commerce, as long as (i) in
490	490	20 the case of a motor vehicle, the motor vehicle meets
491	491	21 paragraphs (1) and (3) of this subsection (d-5) or (ii) in
492	492	22 the case of a trailer, the trailer meets paragraph (1) of
493	493	23 this subsection (d-5); and
494	494	24 (3) for motor vehicles, the gross vehicle weight
495	495	25 rating exceeds 16,000 pounds.
496	496	26 The definition of "use as rolling stock moving in
497	497
498	498
499	499
500	500
501	501
502	502	SB1406 - 13 - LRB104 03813 HLH 13837 b
503	503
504	504
505	505	SB1406- 14 -LRB104 03813 HLH 13837 b SB1406 - 14 - LRB104 03813 HLH 13837 b
506	506	SB1406 - 14 - LRB104 03813 HLH 13837 b
507	507	1 interstate commerce" in this subsection (d-5) applies to all
508	508	2 property purchased on or after July 1, 2017 for the purpose of
509	509	3 being attached to a motor vehicle or trailer as a part thereof,
510	510	4 regardless of whether the motor vehicle or trailer was
511	511	5 purchased before, on, or after July 1, 2017.
512	512	6 If an item ceases to meet requirements (1) through (3)
513	513	7 under this subsection (d-5), then the tax is imposed on the
514	514	8 selling price, allowing for a reasonable depreciation for the
515	515	9 period during which the item qualified for the exemption.
516	516	10 For purposes of this subsection (d-5):
517	517	11 "Motor vehicle" excludes limousines, but otherwise
518	518	12 means that term as defined in Section 1-146 of the
519	519	13 Illinois Vehicle Code.
520	520	14 "Trailer" means (i) "trailer", as defined in Section
521	521	15 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
522	522	16 defined in Section 1-187 of the Illinois Vehicle Code, and
523	523	17 (iii) "pole trailer", as defined in Section 1-161 of the
524	524	18 Illinois Vehicle Code.
525	525	19 (e) For aircraft purchased on or after January 1, 2014 and
526	526	20 purchased before January 1, 2025 and for watercraft purchased
527	527	21 on or after January 1, 2014, "use as rolling stock moving in
528	528	22 interstate commerce" in (i) paragraph (4a) of the definition
529	529	23 of "sale of service" in Section 2 and (ii) subsection (b) of
530	530	24 Section 3-45 occurs when, during a 12-month period, the
531	531	25 rolling stock has carried persons or property for hire in
532	532	26 interstate commerce for greater than 50% of its total trips
533	533
534	534
535	535
536	536
537	537
538	538	SB1406 - 14 - LRB104 03813 HLH 13837 b
539	539
540	540
541	541	SB1406- 15 -LRB104 03813 HLH 13837 b SB1406 - 15 - LRB104 03813 HLH 13837 b
542	542	SB1406 - 15 - LRB104 03813 HLH 13837 b
543	543	1 for that period or for greater than 50% of its total miles for
544	544	2 that period. For aircraft purchased on or after January 1,
545	545	3 2025, "use as rolling stock moving in interstate commerce" in
546	546	4 (i) paragraph (4a) of the definition of "sale of service" in
547	547	5 Section 2 and (ii) subsection (b) of Section 3-45 occurs when,
548	548	6 during a 24-month period, the rolling stock has carried
549	549	7 persons or property for hire in interstate commerce for more
550	550	8 than 50% of its total trips for that period or for more than
551	551	9 50% of its total miles for that period. The person claiming the
552	552	10 exemption shall make an election at the time of purchase to use
553	553	11 either the trips or mileage method and document that election
554	554	12 in their books and records. If no election is made under this
555	555	13 subsection to use the trips or mileage method, the person
556	556	14 shall be deemed to have chosen the mileage method. For
557	557	15 aircraft, flight hours may be used in lieu of recording miles
558	558	16 in determining whether the aircraft meets the mileage test in
559	559	17 this subsection. For watercraft, nautical miles or trip hours
560	560	18 may be used in lieu of recording miles in determining whether
561	561	19 the watercraft meets the mileage test in this subsection.
562	562	20 Notwithstanding any other provision of law to the
563	563	21 contrary, property purchased on or after January 1, 2014 for
564	564	22 the purpose of being attached to aircraft or watercraft as a
565	565	23 part thereof qualifies as rolling stock moving in interstate
566	566	24 commerce only if the aircraft or watercraft to which it will be
567	567	25 attached qualifies as rolling stock moving in interstate
568	568	26 commerce under the test set forth in this subsection (e),
569	569
570	570
571	571
572	572
573	573
574	574	SB1406 - 15 - LRB104 03813 HLH 13837 b
575	575
576	576
577	577	SB1406- 16 -LRB104 03813 HLH 13837 b SB1406 - 16 - LRB104 03813 HLH 13837 b
578	578	SB1406 - 16 - LRB104 03813 HLH 13837 b
579	579	1 regardless of when the aircraft or watercraft was purchased.
580	580	2 Persons who purchased aircraft or watercraft prior to January
581	581	3 1, 2014 shall make an election to use either the trips or
582	582	4 mileage method and document that election in their books and
583	583	5 records for the purpose of determining whether property
584	584	6 purchased on or after January 1, 2014 for the purpose of being
585	585	7 attached to aircraft or watercraft as a part thereof qualifies
586	586	8 as rolling stock moving in interstate commerce under this
587	587	9 subsection (e).
588	588	10 (f) The election to use either the trips or mileage method
589	589	11 made under the provisions of subsections (c), (d), or (e) of
590	590	12 this Section will remain in effect for the duration of the
591	591	13 purchaser's ownership of that item.
592	592	14 (Source: P.A. 100-321, eff. 8-24-17.)
593	593	15 Section 15. The Service Occupation Tax Act is amended by
594	594	16 changing Section 2d as follows:
595	595	17 (35 ILCS 115/2d)
596	596	18 Sec. 2d. Motor vehicles; trailers; use as rolling stock
597	597	19 definition.
598	598	20 (a) (Blank).
599	599	21 (b) (Blank).
600	600	22 (c) This subsection (c) applies to motor vehicles, other
601	601	23 than limousines, purchased through June 30, 2017. For motor
602	602	24 vehicles, other than limousines, purchased on or after July 1,
603	603
604	604
605	605
606	606
607	607
608	608	SB1406 - 16 - LRB104 03813 HLH 13837 b
609	609
610	610
611	611	SB1406- 17 -LRB104 03813 HLH 13837 b SB1406 - 17 - LRB104 03813 HLH 13837 b
612	612	SB1406 - 17 - LRB104 03813 HLH 13837 b
613	613	1 2017, subsection (d-5) applies. This subsection (c) applies to
614	614	2 limousines purchased before, on, or after July 1, 2017. "Use
615	615	3 as rolling stock moving in interstate commerce" in paragraph
616	616	4 (d-1) of the definition of "sale of service" in Section 2
617	617	5 occurs for motor vehicles, as defined in Section 1-146 of the
618	618	6 Illinois Vehicle Code, when during a 12-month period the
619	619	7 rolling stock has carried persons or property for hire in
620	620	8 interstate commerce for greater than 50% of its total trips
621	621	9 for that period or for greater than 50% of its total miles for
622	622	10 that period. The person claiming the exemption shall make an
623	623	11 election at the time of purchase to use either the trips or
624	624	12 mileage method. Persons who purchased motor vehicles prior to
625	625	13 July 1, 2004 shall make an election to use either the trips or
626	626	14 mileage method and document that election in their books and
627	627	15 records. If no election is made under this subsection to use
628	628	16 the trips or mileage method, the person shall be deemed to have
629	629	17 chosen the mileage method.
630	630	18 For purposes of determining qualifying trips or miles,
631	631	19 motor vehicles that carry persons or property for hire, even
632	632	20 just between points in Illinois, will be considered used for
633	633	21 hire in interstate commerce if the motor vehicle transports
634	634	22 persons whose journeys or property whose shipments originate
635	635	23 or terminate outside Illinois. The exemption for motor
636	636	24 vehicles used as rolling stock moving in interstate commerce
637	637	25 may be claimed only for the following vehicles: (i) motor
638	638	26 vehicles whose gross vehicle weight rating exceeds 16,000
639	639
640	640
641	641
642	642
643	643
644	644	SB1406 - 17 - LRB104 03813 HLH 13837 b
645	645
646	646
647	647	SB1406- 18 -LRB104 03813 HLH 13837 b SB1406 - 18 - LRB104 03813 HLH 13837 b
648	648	SB1406 - 18 - LRB104 03813 HLH 13837 b
649	649	1 pounds; and (ii) limousines, as defined in Section 1-139.1 of
650	650	2 the Illinois Vehicle Code. Through June 30, 2017, this
651	651	3 definition applies to all property purchased for the purpose
652	652	4 of being attached to those motor vehicles as a part thereof. On
653	653	5 and after July 1, 2017, this definition applies to property
654	654	6 purchased for the purpose of being attached to limousines as a
655	655	7 part thereof.
656	656	8 (d) For purchases made through June 30, 2017, "use as
657	657	9 rolling stock moving in interstate commerce" in paragraph
658	658	10 (d-1) of the definition of "sale of service" in Section 2
659	659	11 occurs for trailers, as defined in Section 1-209 of the
660	660	12 Illinois Vehicle Code, semitrailers as defined in Section
661	661	13 1-187 of the Illinois Vehicle Code, and pole trailers as
662	662	14 defined in Section 1-161 of the Illinois Vehicle Code, when
663	663	15 during a 12-month period the rolling stock has carried persons
664	664	16 or property for hire in interstate commerce for greater than
665	665	17 50% of its total trips for that period or for greater than 50%
666	666	18 of its total miles for that period. The person claiming the
667	667	19 exemption for a trailer or trailers that will not be dedicated
668	668	20 to a motor vehicle or group of motor vehicles shall make an
669	669	21 election at the time of purchase to use either the trips or
670	670	22 mileage method. Persons who purchased trailers prior to July
671	671	23 1, 2004 that are not dedicated to a motor vehicle or group of
672	672	24 motor vehicles shall make an election to use either the trips
673	673	25 or mileage method and document that election in their books
674	674	26 and records. If no election is made under this subsection to
675	675
676	676
677	677
678	678
679	679
680	680	SB1406 - 18 - LRB104 03813 HLH 13837 b
681	681
682	682
683	683	SB1406- 19 -LRB104 03813 HLH 13837 b SB1406 - 19 - LRB104 03813 HLH 13837 b
684	684	SB1406 - 19 - LRB104 03813 HLH 13837 b
685	685	1 use the trips or mileage method, the person shall be deemed to
686	686	2 have chosen the mileage method.
687	687	3 For purposes of determining qualifying trips or miles,
688	688	4 trailers, semitrailers, or pole trailers that carry property
689	689	5 for hire, even just between points in Illinois, will be
690	690	6 considered used for hire in interstate commerce if the
691	691	7 trailers, semitrailers, or pole trailers transport property
692	692	8 whose shipments originate or terminate outside Illinois. This
693	693	9 definition applies to all property purchased for the purpose
694	694	10 of being attached to those trailers, semitrailers, or pole
695	695	11 trailers as a part thereof. In lieu of a person providing
696	696	12 documentation regarding the qualifying use of each individual
697	697	13 trailer, semitrailer, or pole trailer, that person may
698	698	14 document such qualifying use by providing documentation of the
699	699	15 following:
700	700	16 (1) If a trailer, semitrailer, or pole trailer is
701	701	17 dedicated to a motor vehicle that qualifies as rolling
702	702	18 stock moving in interstate commerce under subsection (c)
703	703	19 of this Section, then that trailer, semitrailer, or pole
704	704	20 trailer qualifies as rolling stock moving in interstate
705	705	21 commerce under this subsection.
706	706	22 (2) If a trailer, semitrailer, or pole trailer is
707	707	23 dedicated to a group of motor vehicles that all qualify as
708	708	24 rolling stock moving in interstate commerce under
709	709	25 subsection (c) of this Section, then that trailer,
710	710	26 semitrailer, or pole trailer qualifies as rolling stock
711	711
712	712
713	713
714	714
715	715
716	716	SB1406 - 19 - LRB104 03813 HLH 13837 b
717	717
718	718
719	719	SB1406- 20 -LRB104 03813 HLH 13837 b SB1406 - 20 - LRB104 03813 HLH 13837 b
720	720	SB1406 - 20 - LRB104 03813 HLH 13837 b
721	721	1 moving in interstate commerce under this subsection.
722	722	2 (3) If one or more trailers, semitrailers, or pole
723	723	3 trailers are dedicated to a group of motor vehicles and
724	724	4 not all of those motor vehicles in that group qualify as
725	725	5 rolling stock moving in interstate commerce under
726	726	6 subsection (c) of this Section, then the percentage of
727	727	7 those trailers, semitrailers, or pole trailers that
728	728	8 qualifies as rolling stock moving in interstate commerce
729	729	9 under this subsection is equal to the percentage of those
730	730	10 motor vehicles in that group that qualify as rolling stock
731	731	11 moving in interstate commerce under subsection (c) of this
732	732	12 Section to which those trailers, semitrailers, or pole
733	733	13 trailers are dedicated. However, to determine the
734	734	14 qualification for the exemption provided under this item
735	735	15 (3), the mathematical application of the qualifying
736	736	16 percentage to one or more trailers, semitrailers, or pole
737	737	17 trailers under this subpart shall not be allowed as to any
738	738	18 fraction of a trailer, semitrailer, or pole trailer.
739	739	19 (d-5) For motor vehicles and trailers purchased on or
740	740	20 after July 1, 2017, "use as rolling stock moving in interstate
741	741	21 commerce" means that:
742	742	22 (1) the motor vehicle or trailer is used to transport
743	743	23 persons or property for hire;
744	744	24 (2) for purposes of the exemption under paragraph
745	745	25 (d-1) of the definition of "sale of service" in Section 2,
746	746	26 the purchaser who is an owner, lessor, or shipper claiming
747	747
748	748
749	749
750	750
751	751
752	752	SB1406 - 20 - LRB104 03813 HLH 13837 b
753	753
754	754
755	755	SB1406- 21 -LRB104 03813 HLH 13837 b SB1406 - 21 - LRB104 03813 HLH 13837 b
756	756	SB1406 - 21 - LRB104 03813 HLH 13837 b
757	757	1 the exemption certifies that the motor vehicle or trailer
758	758	2 will be utilized, from the time of purchase and continuing
759	759	3 through the statute of limitations for issuing a notice of
760	760	4 tax liability under this Act, by an interstate carrier or
761	761	5 carriers for hire who hold, and are required by Federal
762	762	6 Motor Carrier Safety Administration regulations to hold,
763	763	7 an active USDOT Number with the Carrier Operation listed
764	764	8 as "Interstate" and the Operation Classification listed as
765	765	9 "authorized for hire", "exempt for hire", or both
766	766	10 "authorized for hire" and "exempt for hire"; except that
767	767	11 this paragraph (2) does not apply to a motor vehicle or
768	768	12 trailer used at an airport to support the operation of an
769	769	13 aircraft moving in interstate commerce, as long as (i) in
770	770	14 the case of a motor vehicle, the motor vehicle meets
771	771	15 paragraphs (1) and (3) of this subsection (d-5) or (ii) in
772	772	16 the case of a trailer, the trailer meets paragraph (1) of
773	773	17 this subsection (d-5); and
774	774	18 (3) for motor vehicles, the gross vehicle weight
775	775	19 rating exceeds 16,000 pounds.
776	776	20 The definition of "use as rolling stock moving in
777	777	21 interstate commerce" in this subsection (d-5) applies to all
778	778	22 property purchased on or after July 1, 2017 for the purpose of
779	779	23 being attached to a motor vehicle or trailer as a part thereof,
780	780	24 regardless of whether the motor vehicle or trailer was
781	781	25 purchased before, on, or after July 1, 2017.
782	782	26 If an item ceases to meet requirements (1) through (3)
783	783
784	784
785	785
786	786
787	787
788	788	SB1406 - 21 - LRB104 03813 HLH 13837 b
789	789
790	790
791	791	SB1406- 22 -LRB104 03813 HLH 13837 b SB1406 - 22 - LRB104 03813 HLH 13837 b
792	792	SB1406 - 22 - LRB104 03813 HLH 13837 b
793	793	1 under this subsection (d-5), then the tax is imposed on the
794	794	2 selling price, allowing for a reasonable depreciation for the
795	795	3 period during which the item qualified for the exemption.
796	796	4 For purposes of this subsection (d-5):
797	797	5 "Motor vehicle" excludes limousines, but otherwise
798	798	6 means that term as defined in Section 1-146 of the
799	799	7 Illinois Vehicle Code.
800	800	8 "Trailer" means (i) "trailer", as defined in Section
801	801	9 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
802	802	10 defined in Section 1-187 of the Illinois Vehicle Code, and
803	803	11 (iii) "pole trailer", as defined in Section 1-161 of the
804	804	12 Illinois Vehicle Code.
805	805	13 (e) For aircraft purchased on or after January 1, 2014 and
806	806	14 purchased before January 1, 2025 and for watercraft purchased
807	807	15 on or after January 1, 2014, "use as rolling stock moving in
808	808	16 interstate commerce" in paragraph (d-1) of the definition of
809	809	17 "sale of service" in Section 2 occurs when, during a 12-month
810	810	18 period, the rolling stock has carried persons or property for
811	811	19 hire in interstate commerce for greater than 50% of its total
812	812	20 trips for that period or for greater than 50% of its total
813	813	21 miles for that period. For aircraft purchased on or after
814	814	22 January 1, 2025, "use as rolling stock moving in interstate
815	815	23 commerce" in paragraph (d-1) of the definition of "sale of
816	816	24 service" in Section 2 occurs when, during a 24-month period,
817	817	25 the rolling stock has carried persons or property for hire in
818	818	26 interstate commerce for more than 50% of its total trips for
819	819
820	820
821	821
822	822
823	823
824	824	SB1406 - 22 - LRB104 03813 HLH 13837 b
825	825
826	826
827	827	SB1406- 23 -LRB104 03813 HLH 13837 b SB1406 - 23 - LRB104 03813 HLH 13837 b
828	828	SB1406 - 23 - LRB104 03813 HLH 13837 b
829	829	1 that period or for more than 50% of its total miles for that
830	830	2 period. The person claiming the exemption shall make an
831	831	3 election at the time of purchase to use either the trips or
832	832	4 mileage method and document that election in their books and
833	833	5 records. If no election is made under this subsection to use
834	834	6 the trips or mileage method, the person shall be deemed to have
835	835	7 chosen the mileage method. For aircraft, flight hours may be
836	836	8 used in lieu of recording miles in determining whether the
837	837	9 aircraft meets the mileage test in this subsection. For
838	838	10 watercraft, nautical miles or trip hours may be used in lieu of
839	839	11 recording miles in determining whether the watercraft meets
840	840	12 the mileage test in this subsection.
841	841	13 Notwithstanding any other provision of law to the
842	842	14 contrary, property purchased on or after January 1, 2014 for
843	843	15 the purpose of being attached to aircraft or watercraft as a
844	844	16 part thereof qualifies as rolling stock moving in interstate
845	845	17 commerce only if the aircraft or watercraft to which it will be
846	846	18 attached qualifies as rolling stock moving in interstate
847	847	19 commerce under the test set forth in this subsection (e),
848	848	20 regardless of when the aircraft or watercraft was purchased.
849	849	21 Persons who purchased aircraft or watercraft prior to January
850	850	22 1, 2014 shall make an election to use either the trips or
851	851	23 mileage method and document that election in their books and
852	852	24 records for the purpose of determining whether property
853	853	25 purchased on or after January 1, 2014 for the purpose of being
854	854	26 attached to aircraft or watercraft as a part thereof qualifies
855	855
856	856
857	857
858	858
859	859
860	860	SB1406 - 23 - LRB104 03813 HLH 13837 b
861	861
862	862
863	863	SB1406- 24 -LRB104 03813 HLH 13837 b SB1406 - 24 - LRB104 03813 HLH 13837 b
864	864	SB1406 - 24 - LRB104 03813 HLH 13837 b
865	865	1 as rolling stock moving in interstate commerce under this
866	866	2 subsection (e).
867	867	3 (f) The election to use either the trips or mileage method
868	868	4 made under the provisions of subsections (c), (d), or (e) of
869	869	5 this Section will remain in effect for the duration of the
870	870	6 purchaser's ownership of that item.
871	871	7 (Source: P.A. 102-558, eff. 8-20-21.)
872	872	8 Section 20. The Retailers' Occupation Tax Act is amended
873	873	9 by changing Section 2-51 as follows:
874	874	10 (35 ILCS 120/2-51)
875	875	11 Sec. 2-51. Motor vehicles; trailers; use as rolling stock
876	876	12 definition.
877	877	13 (a) (Blank).
878	878	14 (b) (Blank).
879	879	15 (c) This subsection (c) applies to motor vehicles, other
880	880	16 than limousines, purchased through June 30, 2017. For motor
881	881	17 vehicles, other than limousines, purchased on or after July 1,
882	882	18 2017, subsection (d-5) applies. This subsection (c) applies to
883	883	19 limousines purchased before, on, or after July 1, 2017. "Use
884	884	20 as rolling stock moving in interstate commerce" in paragraph
885	885	21 (13) of Section 2-5 occurs for motor vehicles, as defined in
886	886	22 Section 1-146 of the Illinois Vehicle Code, when during a
887	887	23 12-month period the rolling stock has carried persons or
888	888	24 property for hire in interstate commerce for greater than 50%
889	889
890	890
891	891
892	892
893	893
894	894	SB1406 - 24 - LRB104 03813 HLH 13837 b
895	895
896	896
897	897	SB1406- 25 -LRB104 03813 HLH 13837 b SB1406 - 25 - LRB104 03813 HLH 13837 b
898	898	SB1406 - 25 - LRB104 03813 HLH 13837 b
899	899	1 of its total trips for that period or for greater than 50% of
900	900	2 its total miles for that period. The person claiming the
901	901	3 exemption shall make an election at the time of purchase to use
902	902	4 either the trips or mileage method. Persons who purchased
903	903	5 motor vehicles prior to July 1, 2004 shall make an election to
904	904	6 use either the trips or mileage method and document that
905	905	7 election in their books and records. If no election is made
906	906	8 under this subsection to use the trips or mileage method, the
907	907	9 person shall be deemed to have chosen the mileage method.
908	908	10 For purposes of determining qualifying trips or miles,
909	909	11 motor vehicles that carry persons or property for hire, even
910	910	12 just between points in Illinois, will be considered used for
911	911	13 hire in interstate commerce if the motor vehicle transports
912	912	14 persons whose journeys or property whose shipments originate
913	913	15 or terminate outside Illinois. The exemption for motor
914	914	16 vehicles used as rolling stock moving in interstate commerce
915	915	17 may be claimed only for the following vehicles: (i) motor
916	916	18 vehicles whose gross vehicle weight rating exceeds 16,000
917	917	19 pounds; and (ii) limousines, as defined in Section 1-139.1 of
918	918	20 the Illinois Vehicle Code. Through June 30, 2017, this
919	919	21 definition applies to all property purchased for the purpose
920	920	22 of being attached to those motor vehicles as a part thereof. On
921	921	23 and after July 1, 2017, this definition applies to property
922	922	24 purchased for the purpose of being attached to limousines as a
923	923	25 part thereof.
924	924	26 (d) For purchases made through June 30, 2017, "use as
925	925
926	926
927	927
928	928
929	929
930	930	SB1406 - 25 - LRB104 03813 HLH 13837 b
931	931
932	932
933	933	SB1406- 26 -LRB104 03813 HLH 13837 b SB1406 - 26 - LRB104 03813 HLH 13837 b
934	934	SB1406 - 26 - LRB104 03813 HLH 13837 b
935	935	1 rolling stock moving in interstate commerce" in paragraph (13)
936	936	2 of Section 2-5 occurs for trailers, as defined in Section
937	937	3 1-209 of the Illinois Vehicle Code, semitrailers as defined in
938	938	4 Section 1-187 of the Illinois Vehicle Code, and pole trailers
939	939	5 as defined in Section 1-161 of the Illinois Vehicle Code, when
940	940	6 during a 12-month period the rolling stock has carried persons
941	941	7 or property for hire in interstate commerce for greater than
942	942	8 50% of its total trips for that period or for greater than 50%
943	943	9 of its total miles for that period. The person claiming the
944	944	10 exemption for a trailer or trailers that will not be dedicated
945	945	11 to a motor vehicle or group of motor vehicles shall make an
946	946	12 election at the time of purchase to use either the trips or
947	947	13 mileage method. Persons who purchased trailers prior to July
948	948	14 1, 2004 that are not dedicated to a motor vehicle or group of
949	949	15 motor vehicles shall make an election to use either the trips
950	950	16 or mileage method and document that election in their books
951	951	17 and records. If no election is made under this subsection to
952	952	18 use the trips or mileage method, the person shall be deemed to
953	953	19 have chosen the mileage method.
954	954	20 For purposes of determining qualifying trips or miles,
955	955	21 trailers, semitrailers, or pole trailers that carry property
956	956	22 for hire, even just between points in Illinois, will be
957	957	23 considered used for hire in interstate commerce if the
958	958	24 trailers, semitrailers, or pole trailers transport property
959	959	25 whose shipments originate or terminate outside Illinois. This
960	960	26 definition applies to all property purchased for the purpose
961	961
962	962
963	963
964	964
965	965
966	966	SB1406 - 26 - LRB104 03813 HLH 13837 b
967	967
968	968
969	969	SB1406- 27 -LRB104 03813 HLH 13837 b SB1406 - 27 - LRB104 03813 HLH 13837 b
970	970	SB1406 - 27 - LRB104 03813 HLH 13837 b
971	971	1 of being attached to those trailers, semitrailers, or pole
972	972	2 trailers as a part thereof. In lieu of a person providing
973	973	3 documentation regarding the qualifying use of each individual
974	974	4 trailer, semitrailer, or pole trailer, that person may
975	975	5 document such qualifying use by providing documentation of the
976	976	6 following:
977	977	7 (1) If a trailer, semitrailer, or pole trailer is
978	978	8 dedicated to a motor vehicle that qualifies as rolling
979	979	9 stock moving in interstate commerce under subsection (c)
980	980	10 of this Section, then that trailer, semitrailer, or pole
981	981	11 trailer qualifies as rolling stock moving in interstate
982	982	12 commerce under this subsection.
983	983	13 (2) If a trailer, semitrailer, or pole trailer is
984	984	14 dedicated to a group of motor vehicles that all qualify as
985	985	15 rolling stock moving in interstate commerce under
986	986	16 subsection (c) of this Section, then that trailer,
987	987	17 semitrailer, or pole trailer qualifies as rolling stock
988	988	18 moving in interstate commerce under this subsection.
989	989	19 (3) If one or more trailers, semitrailers, or pole
990	990	20 trailers are dedicated to a group of motor vehicles and
991	991	21 not all of those motor vehicles in that group qualify as
992	992	22 rolling stock moving in interstate commerce under
993	993	23 subsection (c) of this Section, then the percentage of
994	994	24 those trailers, semitrailers, or pole trailers that
995	995	25 qualifies as rolling stock moving in interstate commerce
996	996	26 under this subsection is equal to the percentage of those
997	997
998	998
999	999
1000	1000
1001	1001
1002	1002	SB1406 - 27 - LRB104 03813 HLH 13837 b
1003	1003
1004	1004
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1006	1006	SB1406 - 28 - LRB104 03813 HLH 13837 b
1007	1007	1 motor vehicles in that group that qualify as rolling stock
1008	1008	2 moving in interstate commerce under subsection (c) of this
1009	1009	3 Section to which those trailers, semitrailers, or pole
1010	1010	4 trailers are dedicated. However, to determine the
1011	1011	5 qualification for the exemption provided under this item
1012	1012	6 (3), the mathematical application of the qualifying
1013	1013	7 percentage to one or more trailers, semitrailers, or pole
1014	1014	8 trailers under this subpart shall not be allowed as to any
1015	1015	9 fraction of a trailer, semitrailer, or pole trailer.
1016	1016	10 (d-5) For motor vehicles and trailers purchased on or
1017	1017	11 after July 1, 2017, "use as rolling stock moving in interstate
1018	1018	12 commerce" means that:
1019	1019	13 (1) the motor vehicle or trailer is used to transport
1020	1020	14 persons or property for hire;
1021	1021	15 (2) for purposes of the exemption under paragraph (13)
1022	1022	16 of Section 2-5, the purchaser who is an owner, lessor, or
1023	1023	17 shipper claiming the exemption certifies that the motor
1024	1024	18 vehicle or trailer will be utilized, from the time of
1025	1025	19 purchase and continuing through the statute of limitations
1026	1026	20 for issuing a notice of tax liability under this Act, by an
1027	1027	21 interstate carrier or carriers for hire who hold, and are
1028	1028	22 required by Federal Motor Carrier Safety Administration
1029	1029	23 regulations to hold, an active USDOT Number with the
1030	1030	24 Carrier Operation listed as "Interstate" and the Operation
1031	1031	25 Classification listed as "authorized for hire", "exempt
1032	1032	26 for hire", or both "authorized for hire" and "exempt for
1033	1033
1034	1034
1035	1035
1036	1036
1037	1037
1038	1038	SB1406 - 28 - LRB104 03813 HLH 13837 b
1039	1039
1040	1040
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1043	1043	1 hire"; except that this paragraph (2) does not apply to a
1044	1044	2 motor vehicle or trailer used at an airport to support the
1045	1045	3 operation of an aircraft moving in interstate commerce, as
1046	1046	4 long as (i) in the case of a motor vehicle, the motor
1047	1047	5 vehicle meets paragraphs (1) and (3) of this subsection
1048	1048	6 (d-5) or (ii) in the case of a trailer, the trailer meets
1049	1049	7 paragraph (1) of this subsection (d-5); and
1050	1050	8 (3) for motor vehicles, the gross vehicle weight
1051	1051	9 rating exceeds 16,000 pounds.
1052	1052	10 The definition of "use as rolling stock moving in
1053	1053	11 interstate commerce" in this subsection (d-5) applies to all
1054	1054	12 property purchased on or after July 1, 2017 for the purpose of
1055	1055	13 being attached to a motor vehicle or trailer as a part thereof,
1056	1056	14 regardless of whether the motor vehicle or trailer was
1057	1057	15 purchased before, on, or after July 1, 2017.
1058	1058	16 If an item ceases to meet requirements (1) through (3)
1059	1059	17 under this subsection (d-5), then the tax is imposed on the
1060	1060	18 selling price, allowing for a reasonable depreciation for the
1061	1061	19 period during which the item qualified for the exemption.
1062	1062	20 For purposes of this subsection (d-5):
1063	1063	21 "Motor vehicle" excludes limousines, but otherwise
1064	1064	22 means that term as defined in Section 1-146 of the
1065	1065	23 Illinois Vehicle Code.
1066	1066	24 "Trailer" means (i) "trailer", as defined in Section
1067	1067	25 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
1068	1068	26 defined in Section 1-187 of the Illinois Vehicle Code, and
1069	1069
1070	1070
1071	1071
1072	1072
1073	1073
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1075	1075
1076	1076
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1078	1078	SB1406 - 30 - LRB104 03813 HLH 13837 b
1079	1079	1 (iii) "pole trailer", as defined in Section 1-161 of the
1080	1080	2 Illinois Vehicle Code.
1081	1081	3 (e) For aircraft purchased on or after January 1, 2014 and
1082	1082	4 purchased before January 1, 2025 and for watercraft purchased
1083	1083	5 on or after January 1, 2014, "use as rolling stock moving in
1084	1084	6 interstate commerce" in paragraph (13) of Section 2-5 occurs
1085	1085	7 when, during a 12-month period, the rolling stock has carried
1086	1086	8 persons or property for hire in interstate commerce for
1087	1087	9 greater than 50% of its total trips for that period or for
1088	1088	10 greater than 50% of its total miles for that period. For
1089	1089	11 aircraft purchased on or after January 1, 2025, "use as
1090	1090	12 rolling stock moving in interstate commerce" in paragraph (13)
1091	1091	13 of Section 2-5 occurs when, during a 24-month period, the
1092	1092	14 rolling stock has carried persons or property for hire in
1093	1093	15 interstate commerce for more than 50% of its total trips for
1094	1094	16 that period or for more than 50% of its total miles for that
1095	1095	17 period. The person claiming the exemption shall make an
1096	1096	18 election at the time of purchase to use either the trips or
1097	1097	19 mileage method and document that election in their books and
1098	1098	20 records. If no election is made under this subsection to use
1099	1099	21 the trips or mileage method, the person shall be deemed to have
1100	1100	22 chosen the mileage method. For aircraft, flight hours may be
1101	1101	23 used in lieu of recording miles in determining whether the
1102	1102	24 aircraft meets the mileage test in this subsection. For
1103	1103	25 watercraft, nautical miles or trip hours may be used in lieu of
1104	1104	26 recording miles in determining whether the watercraft meets
1105	1105
1106	1106
1107	1107
1108	1108
1109	1109
1110	1110	SB1406 - 30 - LRB104 03813 HLH 13837 b
1111	1111
1112	1112
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1115	1115	1 the mileage test in this subsection.
1116	1116	2 Notwithstanding any other provision of law to the
1117	1117	3 contrary, property purchased on or after January 1, 2014 for
1118	1118	4 the purpose of being attached to aircraft or watercraft as a
1119	1119	5 part thereof qualifies as rolling stock moving in interstate
1120	1120	6 commerce only if the aircraft or watercraft to which it will be
1121	1121	7 attached qualifies as rolling stock moving in interstate
1122	1122	8 commerce under the test set forth in this subsection (e),
1123	1123	9 regardless of when the aircraft or watercraft was purchased.
1124	1124	10 Persons who purchased aircraft or watercraft prior to January
1125	1125	11 1, 2014 shall make an election to use either the trips or
1126	1126	12 mileage method and document that election in their books and
1127	1127	13 records for the purpose of determining whether property
1128	1128	14 purchased on or after January 1, 2014 for the purpose of being
1129	1129	15 attached to aircraft or watercraft as a part thereof qualifies
1130	1130	16 as rolling stock moving in interstate commerce under this
1131	1131	17 subsection (e).
1132	1132	18 (f) The election to use either the trips or mileage method
1133	1133	19 made under the provisions of subsections (c), (d), or (e) of
1134	1134	20 this Section will remain in effect for the duration of the
1135	1135	21 purchaser's ownership of that item.
1136	1136	22 (Source: P.A. 100-321, eff. 8-24-17.)
1137	1137
1138	1138
1139	1139
1140	1140
1141	1141
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