Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2027 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 SB2027 Introduced 2/6/2025, by Sen. Celina Villanueva SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-55 from Ch. 120, par. 439.3-5535 ILCS 105/3-6135 ILCS 110/3-5135 ILCS 115/2d35 ILCS 120/2-535 ILCS 120/2-51625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that there is a rebuttable presumption that the exemption under the Acts for motor vehicles that are sold in this State to a nonresident and are not titled in this State does not apply if the purchaser is a limited liability company and a member of the limited liability company is a resident of Illinois. Provides that the rolling stock exemption for limousines applies only to limousines that are not subject to the provisions of the Transportation Network Providers Act. Amends the Illinois Vehicle Code. Provides that the motor vehicle privilege tax does not apply if the motor vehicle is purchased for the purpose of resale by a retailer registered under the Retailers' Occupation Tax Act. Effective immediately. LRB104 03451 HLH 13474 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2027 Introduced 2/6/2025, by Sen. Celina Villanueva SYNOPSIS AS INTRODUCED: 35 ILCS 105/3-55 from Ch. 120, par. 439.3-5535 ILCS 105/3-6135 ILCS 110/3-5135 ILCS 115/2d35 ILCS 120/2-535 ILCS 120/2-51625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001 35 ILCS 105/3-55 from Ch. 120, par. 439.3-55 35 ILCS 105/3-61 35 ILCS 110/3-51 35 ILCS 115/2d 35 ILCS 120/2-5 35 ILCS 120/2-51 625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001 Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that there is a rebuttable presumption that the exemption under the Acts for motor vehicles that are sold in this State to a nonresident and are not titled in this State does not apply if the purchaser is a limited liability company and a member of the limited liability company is a resident of Illinois. Provides that the rolling stock exemption for limousines applies only to limousines that are not subject to the provisions of the Transportation Network Providers Act. Amends the Illinois Vehicle Code. Provides that the motor vehicle privilege tax does not apply if the motor vehicle is purchased for the purpose of resale by a retailer registered under the Retailers' Occupation Tax Act. Effective immediately. LRB104 03451 HLH 13474 b LRB104 03451 HLH 13474 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2027 Introduced 2/6/2025, by Sen. Celina Villanueva SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 105/3-55 from Ch. 120, par. 439.3-5535 ILCS 105/3-6135 ILCS 110/3-5135 ILCS 115/2d35 ILCS 120/2-535 ILCS 120/2-51625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001 35 ILCS 105/3-55 from Ch. 120, par. 439.3-55 35 ILCS 105/3-61 35 ILCS 110/3-51 35 ILCS 115/2d 35 ILCS 120/2-5 35 ILCS 120/2-51 625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001
4	4	35 ILCS 105/3-55 from Ch. 120, par. 439.3-55
5	5	35 ILCS 105/3-61
6	6	35 ILCS 110/3-51
7	7	35 ILCS 115/2d
8	8	35 ILCS 120/2-5
9	9	35 ILCS 120/2-51
10	10	625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001
11	11	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that there is a rebuttable presumption that the exemption under the Acts for motor vehicles that are sold in this State to a nonresident and are not titled in this State does not apply if the purchaser is a limited liability company and a member of the limited liability company is a resident of Illinois. Provides that the rolling stock exemption for limousines applies only to limousines that are not subject to the provisions of the Transportation Network Providers Act. Amends the Illinois Vehicle Code. Provides that the motor vehicle privilege tax does not apply if the motor vehicle is purchased for the purpose of resale by a retailer registered under the Retailers' Occupation Tax Act. Effective immediately.
12	12	LRB104 03451 HLH 13474 b LRB104 03451 HLH 13474 b
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14	14	A BILL FOR
15	15	SB2027LRB104 03451 HLH 13474 b SB2027 LRB104 03451 HLH 13474 b
16	16	SB2027 LRB104 03451 HLH 13474 b
17	17	1 AN ACT concerning revenue.
18	18	2 Be it enacted by the People of the State of Illinois,
19	19	3 represented in the General Assembly:
20	20	4 Section 5. The Use Tax Act is amended by changing Sections
21	21	5 3-55 and 3-61 as follows:
22	22	6 (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
23	23	7 Sec. 3-55. Multistate exemption. To prevent actual or
24	24	8 likely multistate taxation, the tax imposed by this Act does
25	25	9 not apply to the use of tangible personal property in this
26	26	10 State under the following circumstances:
27	27	11 (a) The use, in this State, of tangible personal property
28	28	12 acquired outside this State by a nonresident individual and
29	29	13 brought into this State by the individual for his or her own
30	30	14 use while temporarily within this State or while passing
31	31	15 through this State.
32	32	16 (b) (Blank).
33	33	17 (c) The use, in this State, by owners or lessors, lessees,
34	34	18 or shippers of tangible personal property that is utilized by
35	35	19 interstate carriers for hire for use as rolling stock moving
36	36	20 in interstate commerce as long as so used by the interstate
37	37	21 carriers for hire, and equipment operated by a
38	38	22 telecommunications provider, licensed as a common carrier by
39	39	23 the Federal Communications Commission, which is permanently
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43	43	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2027 Introduced 2/6/2025, by Sen. Celina Villanueva SYNOPSIS AS INTRODUCED:
44	44	35 ILCS 105/3-55 from Ch. 120, par. 439.3-5535 ILCS 105/3-6135 ILCS 110/3-5135 ILCS 115/2d35 ILCS 120/2-535 ILCS 120/2-51625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001 35 ILCS 105/3-55 from Ch. 120, par. 439.3-55 35 ILCS 105/3-61 35 ILCS 110/3-51 35 ILCS 115/2d 35 ILCS 120/2-5 35 ILCS 120/2-51 625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001
45	45	35 ILCS 105/3-55 from Ch. 120, par. 439.3-55
46	46	35 ILCS 105/3-61
47	47	35 ILCS 110/3-51
48	48	35 ILCS 115/2d
49	49	35 ILCS 120/2-5
50	50	35 ILCS 120/2-51
51	51	625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001
52	52	Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that there is a rebuttable presumption that the exemption under the Acts for motor vehicles that are sold in this State to a nonresident and are not titled in this State does not apply if the purchaser is a limited liability company and a member of the limited liability company is a resident of Illinois. Provides that the rolling stock exemption for limousines applies only to limousines that are not subject to the provisions of the Transportation Network Providers Act. Amends the Illinois Vehicle Code. Provides that the motor vehicle privilege tax does not apply if the motor vehicle is purchased for the purpose of resale by a retailer registered under the Retailers' Occupation Tax Act. Effective immediately.
53	53	LRB104 03451 HLH 13474 b LRB104 03451 HLH 13474 b
54	54	LRB104 03451 HLH 13474 b
55	55	A BILL FOR
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61	61	35 ILCS 105/3-55 from Ch. 120, par. 439.3-55
62	62	35 ILCS 105/3-61
63	63	35 ILCS 110/3-51
64	64	35 ILCS 115/2d
65	65	35 ILCS 120/2-5
66	66	35 ILCS 120/2-51
67	67	625 ILCS 5/3-1001 from Ch. 95 1/2, par. 3-1001
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86	86	1 installed in or affixed to aircraft moving in interstate
87	87	2 commerce.
88	88	3 (d) The use, in this State, of tangible personal property
89	89	4 that is acquired outside this State and caused to be brought
90	90	5 into this State by a person who has already paid a tax in
91	91	6 another State in respect to the sale, purchase, or use of that
92	92	7 property, to the extent of the amount of the tax properly due
93	93	8 and paid in the other State.
94	94	9 (e) The temporary storage, in this State, of tangible
95	95	10 personal property that is acquired outside this State and
96	96	11 that, after being brought into this State and stored here
97	97	12 temporarily, is used solely outside this State or is
98	98	13 physically attached to or incorporated into other tangible
99	99	14 personal property that is used solely outside this State, or
100	100	15 is altered by converting, fabricating, manufacturing,
101	101	16 printing, processing, or shaping, and, as altered, is used
102	102	17 solely outside this State.
103	103	18 (f) The temporary storage in this State of building
104	104	19 materials and fixtures that are acquired either in this State
105	105	20 or outside this State by an Illinois registered combination
106	106	21 retailer and construction contractor, and that the purchaser
107	107	22 thereafter uses outside this State by incorporating that
108	108	23 property into real estate located outside this State.
109	109	24 (g) The use or purchase of tangible personal property by a
110	110	25 common carrier by rail or motor that receives the physical
111	111	26 possession of the property in Illinois, and that transports
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122	122	1 the property, or shares with another common carrier in the
123	123	2 transportation of the property, out of Illinois on a standard
124	124	3 uniform bill of lading showing the seller of the property as
125	125	4 the shipper or consignor of the property to a destination
126	126	5 outside Illinois, for use outside Illinois.
127	127	6 (h) Except as provided in subsections subsection (h-1) and
128	128	7 (h-1.5), the use, in this State, of a motor vehicle that was
129	129	8 sold in this State to a nonresident, even though the motor
130	130	9 vehicle is delivered to the nonresident in this State, if the
131	131	10 motor vehicle is not to be titled in this State, and if a
132	132	11 drive-away permit is issued to the motor vehicle as provided
133	133	12 in Section 3-603 of the Illinois Vehicle Code or if the
134	134	13 nonresident purchaser has vehicle registration plates to
135	135	14 transfer to the motor vehicle upon returning to his or her home
136	136	15 state. The issuance of the drive-away permit or having the
137	137	16 out-of-state registration plates to be transferred shall be
138	138	17 prima facie evidence that the motor vehicle will not be titled
139	139	18 in this State.
140	140	19 (h-1) The exemption under subsection (h) does not apply if
141	141	20 the state in which the motor vehicle will be titled does not
142	142	21 allow a reciprocal exemption for the use in that state of a
143	143	22 motor vehicle sold and delivered in that state to an Illinois
144	144	23 resident but titled in Illinois. The tax collected under this
145	145	24 Act on the sale of a motor vehicle in this State to a resident
146	146	25 of another state that does not allow a reciprocal exemption
147	147	26 shall be imposed at a rate equal to the state's rate of tax on
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158	158	1 taxable property in the state in which the purchaser is a
159	159	2 resident, except that the tax shall not exceed the tax that
160	160	3 would otherwise be imposed under this Act. At the time of the
161	161	4 sale, the purchaser shall execute a statement, signed under
162	162	5 penalty of perjury, of his or her intent to title the vehicle
163	163	6 in the state in which the purchaser is a resident within 30
164	164	7 days after the sale and of the fact of the payment to the State
165	165	8 of Illinois of tax in an amount equivalent to the state's rate
166	166	9 of tax on taxable property in his or her state of residence and
167	167	10 shall submit the statement to the appropriate tax collection
168	168	11 agency in his or her state of residence. In addition, the
169	169	12 retailer must retain a signed copy of the statement in his or
170	170	13 her records. Nothing in this subsection shall be construed to
171	171	14 require the removal of the vehicle from this state following
172	172	15 the filing of an intent to title the vehicle in the purchaser's
173	173	16 state of residence if the purchaser titles the vehicle in his
174	174	17 or her state of residence within 30 days after the date of
175	175	18 sale. The tax collected under this Act in accordance with this
176	176	19 subsection (h-1) shall be proportionately distributed as if
177	177	20 the tax were collected at the 6.25% general rate imposed under
178	178	21 this Act.
179	179	22 (h-1.5) There is a rebuttable presumption that the
180	180	23 exemption under subsection (h) does not apply if the purchaser
181	181	24 is a limited liability company and a member of the limited
182	182	25 liability company is a resident of Illinois. This presumption
183	183	26 may be rebutted by other evidence, such as evidence the motor
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194	194	1 vehicle is insured for primary use at an address outside of
195	195	2 Illinois or evidence that the motor vehicle will be stored or
196	196	3 garaged at a physical address outside Illinois.
197	197	4 (h-2) The following exemptions apply with respect to
198	198	5 certain aircraft:
199	199	6 (1) Beginning on July 1, 2007, no tax is imposed under
200	200	7 this Act on the purchase of an aircraft, as defined in
201	201	8 Section 3 of the Illinois Aeronautics Act, if all of the
202	202	9 following conditions are met:
203	203	10 (A) the aircraft leaves this State within 15 days
204	204	11 after the later of either the issuance of the final
205	205	12 billing for the purchase of the aircraft or the
206	206	13 authorized approval for return to service, completion
207	207	14 of the maintenance record entry, and completion of the
208	208	15 test flight and ground test for inspection, as
209	209	16 required by 14 C.F.R. 91.407;
210	210	17 (B) the aircraft is not based or registered in
211	211	18 this State after the purchase of the aircraft; and
212	212	19 (C) the purchaser provides the Department with a
213	213	20 signed and dated certification, on a form prescribed
214	214	21 by the Department, certifying that the requirements of
215	215	22 this item (1) are met. The certificate must also
216	216	23 include the name and address of the purchaser, the
217	217	24 address of the location where the aircraft is to be
218	218	25 titled or registered, the address of the primary
219	219	26 physical location of the aircraft, and other
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230	230	1 information that the Department may reasonably
231	231	2 require.
232	232	3 (2) Beginning on July 1, 2007, no tax is imposed under
233	233	4 this Act on the use of an aircraft, as defined in Section 3
234	234	5 of the Illinois Aeronautics Act, that is temporarily
235	235	6 located in this State for the purpose of a prepurchase
236	236	7 evaluation if all of the following conditions are met:
237	237	8 (A) the aircraft is not based or registered in
238	238	9 this State after the prepurchase evaluation; and
239	239	10 (B) the purchaser provides the Department with a
240	240	11 signed and dated certification, on a form prescribed
241	241	12 by the Department, certifying that the requirements of
242	242	13 this item (2) are met. The certificate must also
243	243	14 include the name and address of the purchaser, the
244	244	15 address of the location where the aircraft is to be
245	245	16 titled or registered, the address of the primary
246	246	17 physical location of the aircraft, and other
247	247	18 information that the Department may reasonably
248	248	19 require.
249	249	20 (3) Beginning on July 1, 2007, no tax is imposed under
250	250	21 this Act on the use of an aircraft, as defined in Section 3
251	251	22 of the Illinois Aeronautics Act, that is temporarily
252	252	23 located in this State for the purpose of a post-sale
253	253	24 customization if all of the following conditions are met:
254	254	25 (A) the aircraft leaves this State within 15 days
255	255	26 after the authorized approval for return to service,
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266	266	1 completion of the maintenance record entry, and
267	267	2 completion of the test flight and ground test for
268	268	3 inspection, as required by 14 C.F.R. 91.407;
269	269	4 (B) the aircraft is not based or registered in
270	270	5 this State either before or after the post-sale
271	271	6 customization; and
272	272	7 (C) the purchaser provides the Department with a
273	273	8 signed and dated certification, on a form prescribed
274	274	9 by the Department, certifying that the requirements of
275	275	10 this item (3) are met. The certificate must also
276	276	11 include the name and address of the purchaser, the
277	277	12 address of the location where the aircraft is to be
278	278	13 titled or registered, the address of the primary
279	279	14 physical location of the aircraft, and other
280	280	15 information that the Department may reasonably
281	281	16 require.
282	282	17 If tax becomes due under this subsection (h-2) because of
283	283	18 the purchaser's use of the aircraft in this State, the
284	284	19 purchaser shall file a return with the Department and pay the
285	285	20 tax on the fair market value of the aircraft. This return and
286	286	21 payment of the tax must be made no later than 30 days after the
287	287	22 aircraft is used in a taxable manner in this State. The tax is
288	288	23 based on the fair market value of the aircraft on the date that
289	289	24 it is first used in a taxable manner in this State.
290	290	25 For purposes of this subsection (h-2):
291	291	26 "Based in this State" means hangared, stored, or otherwise
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302	302	1 used, excluding post-sale customizations as defined in this
303	303	2 Section, for 10 or more days in each 12-month period
304	304	3 immediately following the date of the sale of the aircraft.
305	305	4 "Post-sale customization" means any improvement,
306	306	5 maintenance, or repair that is performed on an aircraft
307	307	6 following a transfer of ownership of the aircraft.
308	308	7 "Prepurchase evaluation" means an examination of an
309	309	8 aircraft to provide a potential purchaser with information
310	310	9 relevant to the potential purchase.
311	311	10 "Registered in this State" means an aircraft registered
312	312	11 with the Department of Transportation, Aeronautics Division,
313	313	12 or titled or registered with the Federal Aviation
314	314	13 Administration to an address located in this State.
315	315	14 This subsection (h-2) is exempt from the provisions of
316	316	15 Section 3-90.
317	317	16 (i) Beginning July 1, 1999, the use, in this State, of fuel
318	318	17 acquired outside this State and brought into this State in the
319	319	18 fuel supply tanks of locomotives engaged in freight hauling
320	320	19 and passenger service for interstate commerce. This subsection
321	321	20 is exempt from the provisions of Section 3-90.
322	322	21 (j) Beginning on January 1, 2002 and through June 30,
323	323	22 2016, the use of tangible personal property purchased from an
324	324	23 Illinois retailer by a taxpayer engaged in centralized
325	325	24 purchasing activities in Illinois who will, upon receipt of
326	326	25 the property in Illinois, temporarily store the property in
327	327	26 Illinois (i) for the purpose of subsequently transporting it
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338	338	1 outside this State for use or consumption thereafter solely
339	339	2 outside this State or (ii) for the purpose of being processed,
340	340	3 fabricated, or manufactured into, attached to, or incorporated
341	341	4 into other tangible personal property to be transported
342	342	5 outside this State and thereafter used or consumed solely
343	343	6 outside this State. The Director of Revenue shall, pursuant to
344	344	7 rules adopted in accordance with the Illinois Administrative
345	345	8 Procedure Act, issue a permit to any taxpayer in good standing
346	346	9 with the Department who is eligible for the exemption under
347	347	10 this subsection (j). The permit issued under this subsection
348	348	11 (j) shall authorize the holder, to the extent and in the manner
349	349	12 specified in the rules adopted under this Act, to purchase
350	350	13 tangible personal property from a retailer exempt from the
351	351	14 taxes imposed by this Act. Taxpayers shall maintain all
352	352	15 necessary books and records to substantiate the use and
353	353	16 consumption of all such tangible personal property outside of
354	354	17 the State of Illinois.
355	355	18 (Source: P.A. 103-592, eff. 1-1-25.)
356	356	19 (35 ILCS 105/3-61)
357	357	20 Sec. 3-61. Motor vehicles; trailers; use as rolling stock
358	358	21 definition.
359	359	22 (a) (Blank).
360	360	23 (b) (Blank).
361	361	24 (c) This subsection (c) applies to motor vehicles, other
362	362	25 than limousines, purchased through June 30, 2017. For motor
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373	373	1 vehicles, other than limousines, purchased on or after July 1,
374	374	2 2017, subsection (d-5) applies. This subsection (c) applies to
375	375	3 limousines purchased before, on, or after July 1, 2017. "Use
376	376	4 as rolling stock moving in interstate commerce" in paragraph
377	377	5 (c) of Section 3-55 occurs for motor vehicles, as defined in
378	378	6 Section 1-146 of the Illinois Vehicle Code, when during a
379	379	7 12-month period the rolling stock has carried persons or
380	380	8 property for hire in interstate commerce for greater than 50%
381	381	9 of its total trips for that period or for greater than 50% of
382	382	10 its total miles for that period. The person claiming the
383	383	11 exemption shall make an election at the time of purchase to use
384	384	12 either the trips or mileage method. Persons who purchased
385	385	13 motor vehicles prior to July 1, 2004 shall make an election to
386	386	14 use either the trips or mileage method and document that
387	387	15 election in their books and records. If no election is made
388	388	16 under this subsection to use the trips or mileage method, the
389	389	17 person shall be deemed to have chosen the mileage method.
390	390	18 For purposes of determining qualifying trips or miles,
391	391	19 motor vehicles that carry persons or property for hire, even
392	392	20 just between points in Illinois, will be considered used for
393	393	21 hire in interstate commerce if the motor vehicle transports
394	394	22 persons whose journeys or property whose shipments originate
395	395	23 or terminate outside Illinois. The exemption for motor
396	396	24 vehicles used as rolling stock moving in interstate commerce
397	397	25 may be claimed only for the following vehicles: (i) motor
398	398	26 vehicles whose gross vehicle weight rating exceeds 16,000
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409	409	1 pounds; and (ii) limousines, as defined in Section 1-139.1 of
410	410	2 the Illinois Vehicle Code. On and after July 1, 2025, the
411	411	3 exemption for limousines applies only to limousines that are
412	412	4 not subject to the provisions of the Transportation Network
413	413	5 Providers Act. Through June 30, 2017, this definition applies
414	414	6 to all property purchased for the purpose of being attached to
415	415	7 those motor vehicles as a part thereof. On and after July 1,
416	416	8 2017, this definition applies to property purchased for the
417	417	9 purpose of being attached to limousines as a part thereof. For
418	418	10 property that is purchased on or after July 1, 2025 for the
419	419	11 purpose of being attached to a limousines as a part thereof,
420	420	12 this definition applies only if the limousine is not subject
421	421	13 to the provisions of the Transportation Network Providers Act.
422	422	14 (d) For purchases made through June 30, 2017, "use as
423	423	15 rolling stock moving in interstate commerce" in paragraph (c)
424	424	16 of Section 3-55 occurs for trailers, as defined in Section
425	425	17 1-209 of the Illinois Vehicle Code, semitrailers as defined in
426	426	18 Section 1-187 of the Illinois Vehicle Code, and pole trailers
427	427	19 as defined in Section 1-161 of the Illinois Vehicle Code, when
428	428	20 during a 12-month period the rolling stock has carried persons
429	429	21 or property for hire in interstate commerce for greater than
430	430	22 50% of its total trips for that period or for greater than 50%
431	431	23 of its total miles for that period. The person claiming the
432	432	24 exemption for a trailer or trailers that will not be dedicated
433	433	25 to a motor vehicle or group of motor vehicles shall make an
434	434	26 election at the time of purchase to use either the trips or
435	435
436	436
437	437
438	438
439	439
440	440	SB2027 - 11 - LRB104 03451 HLH 13474 b
441	441
442	442
443	443	SB2027- 12 -LRB104 03451 HLH 13474 b SB2027 - 12 - LRB104 03451 HLH 13474 b
444	444	SB2027 - 12 - LRB104 03451 HLH 13474 b
445	445	1 mileage method. Persons who purchased trailers prior to July
446	446	2 1, 2004 that are not dedicated to a motor vehicle or group of
447	447	3 motor vehicles shall make an election to use either the trips
448	448	4 or mileage method and document that election in their books
449	449	5 and records. If no election is made under this subsection to
450	450	6 use the trips or mileage method, the person shall be deemed to
451	451	7 have chosen the mileage method.
452	452	8 For purposes of determining qualifying trips or miles,
453	453	9 trailers, semitrailers, or pole trailers that carry property
454	454	10 for hire, even just between points in Illinois, will be
455	455	11 considered used for hire in interstate commerce if the
456	456	12 trailers, semitrailers, or pole trailers transport property
457	457	13 whose shipments originate or terminate outside Illinois. This
458	458	14 definition applies to all property purchased for the purpose
459	459	15 of being attached to those trailers, semitrailers, or pole
460	460	16 trailers as a part thereof. In lieu of a person providing
461	461	17 documentation regarding the qualifying use of each individual
462	462	18 trailer, semitrailer, or pole trailer, that person may
463	463	19 document such qualifying use by providing documentation of the
464	464	20 following:
465	465	21 (1) If a trailer, semitrailer, or pole trailer is
466	466	22 dedicated to a motor vehicle that qualifies as rolling
467	467	23 stock moving in interstate commerce under subsection (c)
468	468	24 of this Section, then that trailer, semitrailer, or pole
469	469	25 trailer qualifies as rolling stock moving in interstate
470	470	26 commerce under this subsection.
471	471
472	472
473	473
474	474
475	475
476	476	SB2027 - 12 - LRB104 03451 HLH 13474 b
477	477
478	478
479	479	SB2027- 13 -LRB104 03451 HLH 13474 b SB2027 - 13 - LRB104 03451 HLH 13474 b
480	480	SB2027 - 13 - LRB104 03451 HLH 13474 b
481	481	1 (2) If a trailer, semitrailer, or pole trailer is
482	482	2 dedicated to a group of motor vehicles that all qualify as
483	483	3 rolling stock moving in interstate commerce under
484	484	4 subsection (c) of this Section, then that trailer,
485	485	5 semitrailer, or pole trailer qualifies as rolling stock
486	486	6 moving in interstate commerce under this subsection.
487	487	7 (3) If one or more trailers, semitrailers, or pole
488	488	8 trailers are dedicated to a group of motor vehicles and
489	489	9 not all of those motor vehicles in that group qualify as
490	490	10 rolling stock moving in interstate commerce under
491	491	11 subsection (c) of this Section, then the percentage of
492	492	12 those trailers, semitrailers, or pole trailers that
493	493	13 qualifies as rolling stock moving in interstate commerce
494	494	14 under this subsection is equal to the percentage of those
495	495	15 motor vehicles in that group that qualify as rolling stock
496	496	16 moving in interstate commerce under subsection (c) of this
497	497	17 Section to which those trailers, semitrailers, or pole
498	498	18 trailers are dedicated. However, to determine the
499	499	19 qualification for the exemption provided under this item
500	500	20 (3), the mathematical application of the qualifying
501	501	21 percentage to one or more trailers, semitrailers, or pole
502	502	22 trailers under this subpart shall not be allowed as to any
503	503	23 fraction of a trailer, semitrailer, or pole trailer.
504	504	24 (d-5) For motor vehicles and trailers purchased on or
505	505	25 after July 1, 2017, "use as rolling stock moving in interstate
506	506	26 commerce" means that:
507	507
508	508
509	509
510	510
511	511
512	512	SB2027 - 13 - LRB104 03451 HLH 13474 b
513	513
514	514
515	515	SB2027- 14 -LRB104 03451 HLH 13474 b SB2027 - 14 - LRB104 03451 HLH 13474 b
516	516	SB2027 - 14 - LRB104 03451 HLH 13474 b
517	517	1 (1) the motor vehicle or trailer is used to transport
518	518	2 persons or property for hire;
519	519	3 (2) for purposes of the exemption under subsection (c)
520	520	4 of Section 3-55, the purchaser who is an owner, lessor, or
521	521	5 shipper claiming the exemption certifies that the motor
522	522	6 vehicle or trailer will be utilized, from the time of
523	523	7 purchase and continuing through the statute of limitations
524	524	8 for issuing a notice of tax liability under this Act, by an
525	525	9 interstate carrier or carriers for hire who hold, and are
526	526	10 required by Federal Motor Carrier Safety Administration
527	527	11 regulations to hold, an active USDOT Number with the
528	528	12 Carrier Operation listed as "Interstate" and the Operation
529	529	13 Classification listed as "authorized for hire", "exempt
530	530	14 for hire", or both "authorized for hire" and "exempt for
531	531	15 hire"; except that this paragraph (2) does not apply to a
532	532	16 motor vehicle or trailer used at an airport to support the
533	533	17 operation of an aircraft moving in interstate commerce, as
534	534	18 long as (i) in the case of a motor vehicle, the motor
535	535	19 vehicle meets paragraphs (1) and (3) of this subsection
536	536	20 (d-5) or (ii) in the case of a trailer, the trailer meets
537	537	21 paragraph (1) of this subsection (d-5); and
538	538	22 (3) for motor vehicles, the gross vehicle weight
539	539	23 rating exceeds 16,000 pounds.
540	540	24 The definition of "use as rolling stock moving in
541	541	25 interstate commerce" in this subsection (d-5) applies to all
542	542	26 property purchased on or after July 1, 2017 for the purpose of
543	543
544	544
545	545
546	546
547	547
548	548	SB2027 - 14 - LRB104 03451 HLH 13474 b
549	549
550	550
551	551	SB2027- 15 -LRB104 03451 HLH 13474 b SB2027 - 15 - LRB104 03451 HLH 13474 b
552	552	SB2027 - 15 - LRB104 03451 HLH 13474 b
553	553	1 being attached to a motor vehicle or trailer as a part thereof,
554	554	2 regardless of whether the motor vehicle or trailer was
555	555	3 purchased before, on, or after July 1, 2017.
556	556	4 If an item ceases to meet requirements (1) through (3)
557	557	5 under this subsection (d-5), then the tax is imposed on the
558	558	6 selling price, allowing for a reasonable depreciation for the
559	559	7 period during which the item qualified for the exemption.
560	560	8 For purposes of this subsection (d-5):
561	561	9 "Motor vehicle" excludes limousines, but otherwise
562	562	10 means that term as defined in Section 1-146 of the
563	563	11 Illinois Vehicle Code.
564	564	12 "Trailer" means (i) "trailer", as defined in Section
565	565	13 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
566	566	14 defined in Section 1-187 of the Illinois Vehicle Code, and
567	567	15 (iii) "pole trailer", as defined in Section 1-161 of the
568	568	16 Illinois Vehicle Code.
569	569	17 (e) For aircraft and watercraft purchased on or after
570	570	18 January 1, 2014, "use as rolling stock moving in interstate
571	571	19 commerce" in paragraph (c) of Section 3-55 occurs when, during
572	572	20 a 12-month period, the rolling stock has carried persons or
573	573	21 property for hire in interstate commerce for greater than 50%
574	574	22 of its total trips for that period or for greater than 50% of
575	575	23 its total miles for that period. The person claiming the
576	576	24 exemption shall make an election at the time of purchase to use
577	577	25 either the trips or mileage method and document that election
578	578	26 in their books and records. If no election is made under this
579	579
580	580
581	581
582	582
583	583
584	584	SB2027 - 15 - LRB104 03451 HLH 13474 b
585	585
586	586
587	587	SB2027- 16 -LRB104 03451 HLH 13474 b SB2027 - 16 - LRB104 03451 HLH 13474 b
588	588	SB2027 - 16 - LRB104 03451 HLH 13474 b
589	589	1 subsection to use the trips or mileage method, the person
590	590	2 shall be deemed to have chosen the mileage method. For
591	591	3 aircraft, flight hours may be used in lieu of recording miles
592	592	4 in determining whether the aircraft meets the mileage test in
593	593	5 this subsection. For watercraft, nautical miles or trip hours
594	594	6 may be used in lieu of recording miles in determining whether
595	595	7 the watercraft meets the mileage test in this subsection.
596	596	8 Notwithstanding any other provision of law to the
597	597	9 contrary, property purchased on or after January 1, 2014 for
598	598	10 the purpose of being attached to aircraft or watercraft as a
599	599	11 part thereof qualifies as rolling stock moving in interstate
600	600	12 commerce only if the aircraft or watercraft to which it will be
601	601	13 attached qualifies as rolling stock moving in interstate
602	602	14 commerce under the test set forth in this subsection (e),
603	603	15 regardless of when the aircraft or watercraft was purchased.
604	604	16 Persons who purchased aircraft or watercraft prior to January
605	605	17 1, 2014 shall make an election to use either the trips or
606	606	18 mileage method and document that election in their books and
607	607	19 records for the purpose of determining whether property
608	608	20 purchased on or after January 1, 2014 for the purpose of being
609	609	21 attached to aircraft or watercraft as a part thereof qualifies
610	610	22 as rolling stock moving in interstate commerce under this
611	611	23 subsection (e).
612	612	24 (f) The election to use either the trips or mileage method
613	613	25 made under the provisions of subsections (c), (d), or (e) of
614	614	26 this Section will remain in effect for the duration of the
615	615
616	616
617	617
618	618
619	619
620	620	SB2027 - 16 - LRB104 03451 HLH 13474 b
621	621
622	622
623	623	SB2027- 17 -LRB104 03451 HLH 13474 b SB2027 - 17 - LRB104 03451 HLH 13474 b
624	624	SB2027 - 17 - LRB104 03451 HLH 13474 b
625	625	1 purchaser's ownership of that item.
626	626	2 (Source: P.A. 100-321, eff. 8-24-17.)
627	627	3 Section 10. The Service Use Tax Act is amended by changing
628	628	4 Section 3-51 as follows:
629	629	5 (35 ILCS 110/3-51)
630	630	6 Sec. 3-51. Motor vehicles; trailers; use as rolling stock
631	631	7 definition.
632	632	8 (a) (Blank).
633	633	9 (b) (Blank).
634	634	10 (c) This subsection (c) applies to motor vehicles, other
635	635	11 than limousines, purchased through June 30, 2017. For motor
636	636	12 vehicles, other than limousines, purchased on or after July 1,
637	637	13 2017, subsection (d-5) applies. This subsection (c) applies to
638	638	14 limousines purchased before, on, or after July 1, 2017. "Use
639	639	15 as rolling stock moving in interstate commerce" in paragraph
640	640	16 (4a) of the definition of "sale of service" in Section 2 and
641	641	17 subsection (b) of Section 3-45 occurs for motor vehicles, as
642	642	18 defined in Section 1-146 of the Illinois Vehicle Code, when
643	643	19 during a 12-month period the rolling stock has carried persons
644	644	20 or property for hire in interstate commerce for greater than
645	645	21 50% of its total trips for that period or for greater than 50%
646	646	22 of its total miles for that period. The person claiming the
647	647	23 exemption shall make an election at the time of purchase to use
648	648	24 either the trips or mileage method. Persons who purchased
649	649
650	650
651	651
652	652
653	653
654	654	SB2027 - 17 - LRB104 03451 HLH 13474 b
655	655
656	656
657	657	SB2027- 18 -LRB104 03451 HLH 13474 b SB2027 - 18 - LRB104 03451 HLH 13474 b
658	658	SB2027 - 18 - LRB104 03451 HLH 13474 b
659	659	1 motor vehicles prior to July 1, 2004 shall make an election to
660	660	2 use either the trips or mileage method and document that
661	661	3 election in their books and records. If no election is made
662	662	4 under this subsection to use the trips or mileage method, the
663	663	5 person shall be deemed to have chosen the mileage method.
664	664	6 For purposes of determining qualifying trips or miles,
665	665	7 motor vehicles that carry persons or property for hire, even
666	666	8 just between points in Illinois, will be considered used for
667	667	9 hire in interstate commerce if the motor vehicle transports
668	668	10 persons whose journeys or property whose shipments originate
669	669	11 or terminate outside Illinois. The exemption for motor
670	670	12 vehicles used as rolling stock moving in interstate commerce
671	671	13 may be claimed only for the following vehicles: (i) motor
672	672	14 vehicles whose gross vehicle weight rating exceeds 16,000
673	673	15 pounds; and (ii) limousines, as defined in Section 1-139.1 of
674	674	16 the Illinois Vehicle Code. On and after July 1, 2025, the
675	675	17 exemption for limousines applies only to limousines that are
676	676	18 not subject to the provisions of the Transportation Network
677	677	19 Providers Act. Through June 30, 2017, this definition applies
678	678	20 to all property purchased for the purpose of being attached to
679	679	21 those motor vehicles as a part thereof. On and after July 1,
680	680	22 2017, this definition applies to property purchased for the
681	681	23 purpose of being attached to limousines as a part thereof.
682	682	24 With respect to property that is transferred incident to a
683	683	25 sale of service on or after July 1, 2025 for the purpose of
684	684	26 being attached to limousines as a part thereof, this
685	685
686	686
687	687
688	688
689	689
690	690	SB2027 - 18 - LRB104 03451 HLH 13474 b
691	691
692	692
693	693	SB2027- 19 -LRB104 03451 HLH 13474 b SB2027 - 19 - LRB104 03451 HLH 13474 b
694	694	SB2027 - 19 - LRB104 03451 HLH 13474 b
695	695	1 definition applies only if the limousine is not subject to the
696	696	2 provisions of the Transportation Network Providers Act.
697	697	3 (d) For purchases made through June 30, 2017, "use as
698	698	4 rolling stock moving in interstate commerce" in paragraph (4a)
699	699	5 of the definition of "sale of service" in Section 2 and
700	700	6 subsection (b) of Section 3-45 occurs for trailers, as defined
701	701	7 in Section 1-209 of the Illinois Vehicle Code, semitrailers as
702	702	8 defined in Section 1-187 of the Illinois Vehicle Code, and
703	703	9 pole trailers as defined in Section 1-161 of the Illinois
704	704	10 Vehicle Code, when during a 12-month period the rolling stock
705	705	11 has carried persons or property for hire in interstate
706	706	12 commerce for greater than 50% of its total trips for that
707	707	13 period or for greater than 50% of its total miles for that
708	708	14 period. The person claiming the exemption for a trailer or
709	709	15 trailers that will not be dedicated to a motor vehicle or group
710	710	16 of motor vehicles shall make an election at the time of
711	711	17 purchase to use either the trips or mileage method. Persons
712	712	18 who purchased trailers prior to July 1, 2004 that are not
713	713	19 dedicated to a motor vehicle or group of motor vehicles shall
714	714	20 make an election to use either the trips or mileage method and
715	715	21 document that election in their books and records. If no
716	716	22 election is made under this subsection to use the trips or
717	717	23 mileage method, the person shall be deemed to have chosen the
718	718	24 mileage method.
719	719	25 For purposes of determining qualifying trips or miles,
720	720	26 trailers, semitrailers, or pole trailers that carry property
721	721
722	722
723	723
724	724
725	725
726	726	SB2027 - 19 - LRB104 03451 HLH 13474 b
727	727
728	728
729	729	SB2027- 20 -LRB104 03451 HLH 13474 b SB2027 - 20 - LRB104 03451 HLH 13474 b
730	730	SB2027 - 20 - LRB104 03451 HLH 13474 b
731	731	1 for hire, even just between points in Illinois, will be
732	732	2 considered used for hire in interstate commerce if the
733	733	3 trailers, semitrailers, or pole trailers transport property
734	734	4 whose shipments originate or terminate outside Illinois. This
735	735	5 definition applies to all property purchased for the purpose
736	736	6 of being attached to those trailers, semitrailers, or pole
737	737	7 trailers as a part thereof. In lieu of a person providing
738	738	8 documentation regarding the qualifying use of each individual
739	739	9 trailer, semitrailer, or pole trailer, that person may
740	740	10 document such qualifying use by providing documentation of the
741	741	11 following:
742	742	12 (1) If a trailer, semitrailer, or pole trailer is
743	743	13 dedicated to a motor vehicle that qualifies as rolling
744	744	14 stock moving in interstate commerce under subsection (c)
745	745	15 of this Section, then that trailer, semitrailer, or pole
746	746	16 trailer qualifies as rolling stock moving in interstate
747	747	17 commerce under this subsection.
748	748	18 (2) If a trailer, semitrailer, or pole trailer is
749	749	19 dedicated to a group of motor vehicles that all qualify as
750	750	20 rolling stock moving in interstate commerce under
751	751	21 subsection (c) of this Section, then that trailer,
752	752	22 semitrailer, or pole trailer qualifies as rolling stock
753	753	23 moving in interstate commerce under this subsection.
754	754	24 (3) If one or more trailers, semitrailers, or pole
755	755	25 trailers are dedicated to a group of motor vehicles and
756	756	26 not all of those motor vehicles in that group qualify as
757	757
758	758
759	759
760	760
761	761
762	762	SB2027 - 20 - LRB104 03451 HLH 13474 b
763	763
764	764
765	765	SB2027- 21 -LRB104 03451 HLH 13474 b SB2027 - 21 - LRB104 03451 HLH 13474 b
766	766	SB2027 - 21 - LRB104 03451 HLH 13474 b
767	767	1 rolling stock moving in interstate commerce under
768	768	2 subsection (c) of this Section, then the percentage of
769	769	3 those trailers, semitrailers, or pole trailers that
770	770	4 qualifies as rolling stock moving in interstate commerce
771	771	5 under this subsection is equal to the percentage of those
772	772	6 motor vehicles in that group that qualify as rolling stock
773	773	7 moving in interstate commerce under subsection (c) of this
774	774	8 Section to which those trailers, semitrailers, or pole
775	775	9 trailers are dedicated. However, to determine the
776	776	10 qualification for the exemption provided under this item
777	777	11 (3), the mathematical application of the qualifying
778	778	12 percentage to one or more trailers, semitrailers, or pole
779	779	13 trailers under this subpart shall not be allowed as to any
780	780	14 fraction of a trailer, semitrailer, or pole trailer.
781	781	15 (d-5) For motor vehicles and trailers purchased on or
782	782	16 after July 1, 2017, "use as rolling stock moving in interstate
783	783	17 commerce" means that:
784	784	18 (1) the motor vehicle or trailer is used to transport
785	785	19 persons or property for hire;
786	786	20 (2) for purposes of the exemption under paragraph (4a)
787	787	21 of the definition of "sale of service" in Section 2, the
788	788	22 purchaser who is an owner, lessor, or shipper claiming the
789	789	23 exemption certifies that the motor vehicle or trailer will
790	790	24 be utilized, from the time of purchase and continuing
791	791	25 through the statute of limitations for issuing a notice of
792	792	26 tax liability under this Act, by an interstate carrier or
793	793
794	794
795	795
796	796
797	797
798	798	SB2027 - 21 - LRB104 03451 HLH 13474 b
799	799
800	800
801	801	SB2027- 22 -LRB104 03451 HLH 13474 b SB2027 - 22 - LRB104 03451 HLH 13474 b
802	802	SB2027 - 22 - LRB104 03451 HLH 13474 b
803	803	1 carriers for hire who hold, and are required by Federal
804	804	2 Motor Carrier Safety Administration regulations to hold,
805	805	3 an active USDOT Number with the Carrier Operation listed
806	806	4 as "Interstate" and the Operation Classification listed as
807	807	5 "authorized for hire", "exempt for hire", or both
808	808	6 "authorized for hire" and "exempt for hire"; except that
809	809	7 this paragraph (2) does not apply to a motor vehicle or
810	810	8 trailer used at an airport to support the operation of an
811	811	9 aircraft moving in interstate commerce, as long as (i) in
812	812	10 the case of a motor vehicle, the motor vehicle meets
813	813	11 paragraphs (1) and (3) of this subsection (d-5) or (ii) in
814	814	12 the case of a trailer, the trailer meets paragraph (1) of
815	815	13 this subsection (d-5); and
816	816	14 (3) for motor vehicles, the gross vehicle weight
817	817	15 rating exceeds 16,000 pounds.
818	818	16 The definition of "use as rolling stock moving in
819	819	17 interstate commerce" in this subsection (d-5) applies to all
820	820	18 property purchased on or after July 1, 2017 for the purpose of
821	821	19 being attached to a motor vehicle or trailer as a part thereof,
822	822	20 regardless of whether the motor vehicle or trailer was
823	823	21 purchased before, on, or after July 1, 2017.
824	824	22 If an item ceases to meet requirements (1) through (3)
825	825	23 under this subsection (d-5), then the tax is imposed on the
826	826	24 selling price, allowing for a reasonable depreciation for the
827	827	25 period during which the item qualified for the exemption.
828	828	26 For purposes of this subsection (d-5):
829	829
830	830
831	831
832	832
833	833
834	834	SB2027 - 22 - LRB104 03451 HLH 13474 b
835	835
836	836
837	837	SB2027- 23 -LRB104 03451 HLH 13474 b SB2027 - 23 - LRB104 03451 HLH 13474 b
838	838	SB2027 - 23 - LRB104 03451 HLH 13474 b
839	839	1 "Motor vehicle" excludes limousines, but otherwise
840	840	2 means that term as defined in Section 1-146 of the
841	841	3 Illinois Vehicle Code.
842	842	4 "Trailer" means (i) "trailer", as defined in Section
843	843	5 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
844	844	6 defined in Section 1-187 of the Illinois Vehicle Code, and
845	845	7 (iii) "pole trailer", as defined in Section 1-161 of the
846	846	8 Illinois Vehicle Code.
847	847	9 (e) For aircraft and watercraft purchased on or after
848	848	10 January 1, 2014, "use as rolling stock moving in interstate
849	849	11 commerce" in (i) paragraph (4a) of the definition of "sale of
850	850	12 service" in Section 2 and (ii) subsection (b) of Section 3-45
851	851	13 occurs when, during a 12-month period, the rolling stock has
852	852	14 carried persons or property for hire in interstate commerce
853	853	15 for greater than 50% of its total trips for that period or for
854	854	16 greater than 50% of its total miles for that period. The person
855	855	17 claiming the exemption shall make an election at the time of
856	856	18 purchase to use either the trips or mileage method and
857	857	19 document that election in their books and records. If no
858	858	20 election is made under this subsection to use the trips or
859	859	21 mileage method, the person shall be deemed to have chosen the
860	860	22 mileage method. For aircraft, flight hours may be used in lieu
861	861	23 of recording miles in determining whether the aircraft meets
862	862	24 the mileage test in this subsection. For watercraft, nautical
863	863	25 miles or trip hours may be used in lieu of recording miles in
864	864	26 determining whether the watercraft meets the mileage test in
865	865
866	866
867	867
868	868
869	869
870	870	SB2027 - 23 - LRB104 03451 HLH 13474 b
871	871
872	872
873	873	SB2027- 24 -LRB104 03451 HLH 13474 b SB2027 - 24 - LRB104 03451 HLH 13474 b
874	874	SB2027 - 24 - LRB104 03451 HLH 13474 b
875	875	1 this subsection.
876	876	2 Notwithstanding any other provision of law to the
877	877	3 contrary, property purchased on or after January 1, 2014 for
878	878	4 the purpose of being attached to aircraft or watercraft as a
879	879	5 part thereof qualifies as rolling stock moving in interstate
880	880	6 commerce only if the aircraft or watercraft to which it will be
881	881	7 attached qualifies as rolling stock moving in interstate
882	882	8 commerce under the test set forth in this subsection (e),
883	883	9 regardless of when the aircraft or watercraft was purchased.
884	884	10 Persons who purchased aircraft or watercraft prior to January
885	885	11 1, 2014 shall make an election to use either the trips or
886	886	12 mileage method and document that election in their books and
887	887	13 records for the purpose of determining whether property
888	888	14 purchased on or after January 1, 2014 for the purpose of being
889	889	15 attached to aircraft or watercraft as a part thereof qualifies
890	890	16 as rolling stock moving in interstate commerce under this
891	891	17 subsection (e).
892	892	18 (f) The election to use either the trips or mileage method
893	893	19 made under the provisions of subsections (c), (d), or (e) of
894	894	20 this Section will remain in effect for the duration of the
895	895	21 purchaser's ownership of that item.
896	896	22 (Source: P.A. 100-321, eff. 8-24-17.)
897	897	23 Section 15. The Service Occupation Tax Act is amended by
898	898	24 changing Section 2d as follows:
899	899
900	900
901	901
902	902
903	903
904	904	SB2027 - 24 - LRB104 03451 HLH 13474 b
905	905
906	906
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908	908	SB2027 - 25 - LRB104 03451 HLH 13474 b
909	909	1 (35 ILCS 115/2d)
910	910	2 Sec. 2d. Motor vehicles; trailers; use as rolling stock
911	911	3 definition.
912	912	4 (a) (Blank).
913	913	5 (b) (Blank).
914	914	6 (c) This subsection (c) applies to motor vehicles, other
915	915	7 than limousines, purchased through June 30, 2017. For motor
916	916	8 vehicles, other than limousines, purchased on or after July 1,
917	917	9 2017, subsection (d-5) applies. This subsection (c) applies to
918	918	10 limousines purchased before, on, or after July 1, 2017. "Use
919	919	11 as rolling stock moving in interstate commerce" in paragraph
920	920	12 (d-1) of the definition of "sale of service" in Section 2
921	921	13 occurs for motor vehicles, as defined in Section 1-146 of the
922	922	14 Illinois Vehicle Code, when during a 12-month period the
923	923	15 rolling stock has carried persons or property for hire in
924	924	16 interstate commerce for greater than 50% of its total trips
925	925	17 for that period or for greater than 50% of its total miles for
926	926	18 that period. The person claiming the exemption shall make an
927	927	19 election at the time of purchase to use either the trips or
928	928	20 mileage method. Persons who purchased motor vehicles prior to
929	929	21 July 1, 2004 shall make an election to use either the trips or
930	930	22 mileage method and document that election in their books and
931	931	23 records. If no election is made under this subsection to use
932	932	24 the trips or mileage method, the person shall be deemed to have
933	933	25 chosen the mileage method.
934	934	26 For purposes of determining qualifying trips or miles,
935	935
936	936
937	937
938	938
939	939
940	940	SB2027 - 25 - LRB104 03451 HLH 13474 b
941	941
942	942
943	943	SB2027- 26 -LRB104 03451 HLH 13474 b SB2027 - 26 - LRB104 03451 HLH 13474 b
944	944	SB2027 - 26 - LRB104 03451 HLH 13474 b
945	945	1 motor vehicles that carry persons or property for hire, even
946	946	2 just between points in Illinois, will be considered used for
947	947	3 hire in interstate commerce if the motor vehicle transports
948	948	4 persons whose journeys or property whose shipments originate
949	949	5 or terminate outside Illinois. The exemption for motor
950	950	6 vehicles used as rolling stock moving in interstate commerce
951	951	7 may be claimed only for the following vehicles: (i) motor
952	952	8 vehicles whose gross vehicle weight rating exceeds 16,000
953	953	9 pounds; and (ii) limousines, as defined in Section 1-139.1 of
954	954	10 the Illinois Vehicle Code. On and after July 1, 2025, the
955	955	11 exemption for limousines applies only to limousines that are
956	956	12 not subject to the provisions of the Transportation Network
957	957	13 Providers Act. Through June 30, 2017, this definition applies
958	958	14 to all property purchased for the purpose of being attached to
959	959	15 those motor vehicles as a part thereof. On and after July 1,
960	960	16 2017, this definition applies to property purchased for the
961	961	17 purpose of being attached to limousines as a part thereof.
962	962	18 With respect to property that is transferred incident to a
963	963	19 sale of service on or after July 1, 2025 for the purpose of
964	964	20 being attached to limousines as a part thereof, this
965	965	21 definition applies only if the limousine is not subject to the
966	966	22 provisions of the Transportation Network Providers Act.
967	967	23 (d) For purchases made through June 30, 2017, "use as
968	968	24 rolling stock moving in interstate commerce" in paragraph
969	969	25 (d-1) of the definition of "sale of service" in Section 2
970	970	26 occurs for trailers, as defined in Section 1-209 of the
971	971
972	972
973	973
974	974
975	975
976	976	SB2027 - 26 - LRB104 03451 HLH 13474 b
977	977
978	978
979	979	SB2027- 27 -LRB104 03451 HLH 13474 b SB2027 - 27 - LRB104 03451 HLH 13474 b
980	980	SB2027 - 27 - LRB104 03451 HLH 13474 b
981	981	1 Illinois Vehicle Code, semitrailers as defined in Section
982	982	2 1-187 of the Illinois Vehicle Code, and pole trailers as
983	983	3 defined in Section 1-161 of the Illinois Vehicle Code, when
984	984	4 during a 12-month period the rolling stock has carried persons
985	985	5 or property for hire in interstate commerce for greater than
986	986	6 50% of its total trips for that period or for greater than 50%
987	987	7 of its total miles for that period. The person claiming the
988	988	8 exemption for a trailer or trailers that will not be dedicated
989	989	9 to a motor vehicle or group of motor vehicles shall make an
990	990	10 election at the time of purchase to use either the trips or
991	991	11 mileage method. Persons who purchased trailers prior to July
992	992	12 1, 2004 that are not dedicated to a motor vehicle or group of
993	993	13 motor vehicles shall make an election to use either the trips
994	994	14 or mileage method and document that election in their books
995	995	15 and records. If no election is made under this subsection to
996	996	16 use the trips or mileage method, the person shall be deemed to
997	997	17 have chosen the mileage method.
998	998	18 For purposes of determining qualifying trips or miles,
999	999	19 trailers, semitrailers, or pole trailers that carry property
1000	1000	20 for hire, even just between points in Illinois, will be
1001	1001	21 considered used for hire in interstate commerce if the
1002	1002	22 trailers, semitrailers, or pole trailers transport property
1003	1003	23 whose shipments originate or terminate outside Illinois. This
1004	1004	24 definition applies to all property purchased for the purpose
1005	1005	25 of being attached to those trailers, semitrailers, or pole
1006	1006	26 trailers as a part thereof. In lieu of a person providing
1007	1007
1008	1008
1009	1009
1010	1010
1011	1011
1012	1012	SB2027 - 27 - LRB104 03451 HLH 13474 b
1013	1013
1014	1014
1015	1015	SB2027- 28 -LRB104 03451 HLH 13474 b SB2027 - 28 - LRB104 03451 HLH 13474 b
1016	1016	SB2027 - 28 - LRB104 03451 HLH 13474 b
1017	1017	1 documentation regarding the qualifying use of each individual
1018	1018	2 trailer, semitrailer, or pole trailer, that person may
1019	1019	3 document such qualifying use by providing documentation of the
1020	1020	4 following:
1021	1021	5 (1) If a trailer, semitrailer, or pole trailer is
1022	1022	6 dedicated to a motor vehicle that qualifies as rolling
1023	1023	7 stock moving in interstate commerce under subsection (c)
1024	1024	8 of this Section, then that trailer, semitrailer, or pole
1025	1025	9 trailer qualifies as rolling stock moving in interstate
1026	1026	10 commerce under this subsection.
1027	1027	11 (2) If a trailer, semitrailer, or pole trailer is
1028	1028	12 dedicated to a group of motor vehicles that all qualify as
1029	1029	13 rolling stock moving in interstate commerce under
1030	1030	14 subsection (c) of this Section, then that trailer,
1031	1031	15 semitrailer, or pole trailer qualifies as rolling stock
1032	1032	16 moving in interstate commerce under this subsection.
1033	1033	17 (3) If one or more trailers, semitrailers, or pole
1034	1034	18 trailers are dedicated to a group of motor vehicles and
1035	1035	19 not all of those motor vehicles in that group qualify as
1036	1036	20 rolling stock moving in interstate commerce under
1037	1037	21 subsection (c) of this Section, then the percentage of
1038	1038	22 those trailers, semitrailers, or pole trailers that
1039	1039	23 qualifies as rolling stock moving in interstate commerce
1040	1040	24 under this subsection is equal to the percentage of those
1041	1041	25 motor vehicles in that group that qualify as rolling stock
1042	1042	26 moving in interstate commerce under subsection (c) of this
1043	1043
1044	1044
1045	1045
1046	1046
1047	1047
1048	1048	SB2027 - 28 - LRB104 03451 HLH 13474 b
1049	1049
1050	1050
1051	1051	SB2027- 29 -LRB104 03451 HLH 13474 b SB2027 - 29 - LRB104 03451 HLH 13474 b
1052	1052	SB2027 - 29 - LRB104 03451 HLH 13474 b
1053	1053	1 Section to which those trailers, semitrailers, or pole
1054	1054	2 trailers are dedicated. However, to determine the
1055	1055	3 qualification for the exemption provided under this item
1056	1056	4 (3), the mathematical application of the qualifying
1057	1057	5 percentage to one or more trailers, semitrailers, or pole
1058	1058	6 trailers under this subpart shall not be allowed as to any
1059	1059	7 fraction of a trailer, semitrailer, or pole trailer.
1060	1060	8 (d-5) For motor vehicles and trailers purchased on or
1061	1061	9 after July 1, 2017, "use as rolling stock moving in interstate
1062	1062	10 commerce" means that:
1063	1063	11 (1) the motor vehicle or trailer is used to transport
1064	1064	12 persons or property for hire;
1065	1065	13 (2) for purposes of the exemption under paragraph
1066	1066	14 (d-1) of the definition of "sale of service" in Section 2,
1067	1067	15 the purchaser who is an owner, lessor, or shipper claiming
1068	1068	16 the exemption certifies that the motor vehicle or trailer
1069	1069	17 will be utilized, from the time of purchase and continuing
1070	1070	18 through the statute of limitations for issuing a notice of
1071	1071	19 tax liability under this Act, by an interstate carrier or
1072	1072	20 carriers for hire who hold, and are required by Federal
1073	1073	21 Motor Carrier Safety Administration regulations to hold,
1074	1074	22 an active USDOT Number with the Carrier Operation listed
1075	1075	23 as "Interstate" and the Operation Classification listed as
1076	1076	24 "authorized for hire", "exempt for hire", or both
1077	1077	25 "authorized for hire" and "exempt for hire"; except that
1078	1078	26 this paragraph (2) does not apply to a motor vehicle or
1079	1079
1080	1080
1081	1081
1082	1082
1083	1083
1084	1084	SB2027 - 29 - LRB104 03451 HLH 13474 b
1085	1085
1086	1086
1087	1087	SB2027- 30 -LRB104 03451 HLH 13474 b SB2027 - 30 - LRB104 03451 HLH 13474 b
1088	1088	SB2027 - 30 - LRB104 03451 HLH 13474 b
1089	1089	1 trailer used at an airport to support the operation of an
1090	1090	2 aircraft moving in interstate commerce, as long as (i) in
1091	1091	3 the case of a motor vehicle, the motor vehicle meets
1092	1092	4 paragraphs (1) and (3) of this subsection (d-5) or (ii) in
1093	1093	5 the case of a trailer, the trailer meets paragraph (1) of
1094	1094	6 this subsection (d-5); and
1095	1095	7 (3) for motor vehicles, the gross vehicle weight
1096	1096	8 rating exceeds 16,000 pounds.
1097	1097	9 The definition of "use as rolling stock moving in
1098	1098	10 interstate commerce" in this subsection (d-5) applies to all
1099	1099	11 property purchased on or after July 1, 2017 for the purpose of
1100	1100	12 being attached to a motor vehicle or trailer as a part thereof,
1101	1101	13 regardless of whether the motor vehicle or trailer was
1102	1102	14 purchased before, on, or after July 1, 2017.
1103	1103	15 If an item ceases to meet requirements (1) through (3)
1104	1104	16 under this subsection (d-5), then the tax is imposed on the
1105	1105	17 selling price, allowing for a reasonable depreciation for the
1106	1106	18 period during which the item qualified for the exemption.
1107	1107	19 For purposes of this subsection (d-5):
1108	1108	20 "Motor vehicle" excludes limousines, but otherwise
1109	1109	21 means that term as defined in Section 1-146 of the
1110	1110	22 Illinois Vehicle Code.
1111	1111	23 "Trailer" means (i) "trailer", as defined in Section
1112	1112	24 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
1113	1113	25 defined in Section 1-187 of the Illinois Vehicle Code, and
1114	1114	26 (iii) "pole trailer", as defined in Section 1-161 of the
1115	1115
1116	1116
1117	1117
1118	1118
1119	1119
1120	1120	SB2027 - 30 - LRB104 03451 HLH 13474 b
1121	1121
1122	1122
1123	1123	SB2027- 31 -LRB104 03451 HLH 13474 b SB2027 - 31 - LRB104 03451 HLH 13474 b
1124	1124	SB2027 - 31 - LRB104 03451 HLH 13474 b
1125	1125	1 Illinois Vehicle Code.
1126	1126	2 (e) For aircraft and watercraft purchased on or after
1127	1127	3 January 1, 2014, "use as rolling stock moving in interstate
1128	1128	4 commerce" in paragraph (d-1) of the definition of "sale of
1129	1129	5 service" in Section 2 occurs when, during a 12-month period,
1130	1130	6 the rolling stock has carried persons or property for hire in
1131	1131	7 interstate commerce for greater than 50% of its total trips
1132	1132	8 for that period or for greater than 50% of its total miles for
1133	1133	9 that period. The person claiming the exemption shall make an
1134	1134	10 election at the time of purchase to use either the trips or
1135	1135	11 mileage method and document that election in their books and
1136	1136	12 records. If no election is made under this subsection to use
1137	1137	13 the trips or mileage method, the person shall be deemed to have
1138	1138	14 chosen the mileage method. For aircraft, flight hours may be
1139	1139	15 used in lieu of recording miles in determining whether the
1140	1140	16 aircraft meets the mileage test in this subsection. For
1141	1141	17 watercraft, nautical miles or trip hours may be used in lieu of
1142	1142	18 recording miles in determining whether the watercraft meets
1143	1143	19 the mileage test in this subsection.
1144	1144	20 Notwithstanding any other provision of law to the
1145	1145	21 contrary, property purchased on or after January 1, 2014 for
1146	1146	22 the purpose of being attached to aircraft or watercraft as a
1147	1147	23 part thereof qualifies as rolling stock moving in interstate
1148	1148	24 commerce only if the aircraft or watercraft to which it will be
1149	1149	25 attached qualifies as rolling stock moving in interstate
1150	1150	26 commerce under the test set forth in this subsection (e),
1151	1151
1152	1152
1153	1153
1154	1154
1155	1155
1156	1156	SB2027 - 31 - LRB104 03451 HLH 13474 b
1157	1157
1158	1158
1159	1159	SB2027- 32 -LRB104 03451 HLH 13474 b SB2027 - 32 - LRB104 03451 HLH 13474 b
1160	1160	SB2027 - 32 - LRB104 03451 HLH 13474 b
1161	1161	1 regardless of when the aircraft or watercraft was purchased.
1162	1162	2 Persons who purchased aircraft or watercraft prior to January
1163	1163	3 1, 2014 shall make an election to use either the trips or
1164	1164	4 mileage method and document that election in their books and
1165	1165	5 records for the purpose of determining whether property
1166	1166	6 purchased on or after January 1, 2014 for the purpose of being
1167	1167	7 attached to aircraft or watercraft as a part thereof qualifies
1168	1168	8 as rolling stock moving in interstate commerce under this
1169	1169	9 subsection (e).
1170	1170	10 (f) The election to use either the trips or mileage method
1171	1171	11 made under the provisions of subsections (c), (d), or (e) of
1172	1172	12 this Section will remain in effect for the duration of the
1173	1173	13 purchaser's ownership of that item.
1174	1174	14 (Source: P.A. 102-558, eff. 8-20-21.)
1175	1175	15 Section 20. The Retailers' Occupation Tax Act is amended
1176	1176	16 by changing Sections 2-5 and 2-51 as follows:
1177	1177	17 (35 ILCS 120/2-5)
1178	1178	18 Sec. 2-5. Exemptions. Gross receipts from proceeds from
1179	1179	19 the sale, which, on and after January 1, 2025, includes the
1180	1180	20 lease, of the following tangible personal property are exempt
1181	1181	21 from the tax imposed by this Act:
1182	1182	22 (1) Farm chemicals.
1183	1183	23 (2) Farm machinery and equipment, both new and used,
1184	1184	24 including that manufactured on special order, certified by
1185	1185
1186	1186
1187	1187
1188	1188
1189	1189
1190	1190	SB2027 - 32 - LRB104 03451 HLH 13474 b
1191	1191
1192	1192
1193	1193	SB2027- 33 -LRB104 03451 HLH 13474 b SB2027 - 33 - LRB104 03451 HLH 13474 b
1194	1194	SB2027 - 33 - LRB104 03451 HLH 13474 b
1195	1195	1 the purchaser to be used primarily for production
1196	1196	2 agriculture or State or federal agricultural programs,
1197	1197	3 including individual replacement parts for the machinery
1198	1198	4 and equipment, including machinery and equipment purchased
1199	1199	5 for lease, and including implements of husbandry defined
1200	1200	6 in Section 1-130 of the Illinois Vehicle Code, farm
1201	1201	7 machinery and agricultural chemical and fertilizer
1202	1202	8 spreaders, and nurse wagons required to be registered
1203	1203	9 under Section 3-809 of the Illinois Vehicle Code, but
1204	1204	10 excluding other motor vehicles required to be registered
1205	1205	11 under the Illinois Vehicle Code. Horticultural polyhouses
1206	1206	12 or hoop houses used for propagating, growing, or
1207	1207	13 overwintering plants shall be considered farm machinery
1208	1208	14 and equipment under this item (2). Agricultural chemical
1209	1209	15 tender tanks and dry boxes shall include units sold
1210	1210	16 separately from a motor vehicle required to be licensed
1211	1211	17 and units sold mounted on a motor vehicle required to be
1212	1212	18 licensed, if the selling price of the tender is separately
1213	1213	19 stated.
1214	1214	20 Farm machinery and equipment shall include precision
1215	1215	21 farming equipment that is installed or purchased to be
1216	1216	22 installed on farm machinery and equipment including, but
1217	1217	23 not limited to, tractors, harvesters, sprayers, planters,
1218	1218	24 seeders, or spreaders. Precision farming equipment
1219	1219	25 includes, but is not limited to, soil testing sensors,
1220	1220	26 computers, monitors, software, global positioning and
1221	1221
1222	1222
1223	1223
1224	1224
1225	1225
1226	1226	SB2027 - 33 - LRB104 03451 HLH 13474 b
1227	1227
1228	1228
1229	1229	SB2027- 34 -LRB104 03451 HLH 13474 b SB2027 - 34 - LRB104 03451 HLH 13474 b
1230	1230	SB2027 - 34 - LRB104 03451 HLH 13474 b
1231	1231	1 mapping systems, and other such equipment.
1232	1232	2 Farm machinery and equipment also includes computers,
1233	1233	3 sensors, software, and related equipment used primarily in
1234	1234	4 the computer-assisted operation of production agriculture
1235	1235	5 facilities, equipment, and activities such as, but not
1236	1236	6 limited to, the collection, monitoring, and correlation of
1237	1237	7 animal and crop data for the purpose of formulating animal
1238	1238	8 diets and agricultural chemicals.
1239	1239	9 Beginning on January 1, 2024, farm machinery and
1240	1240	10 equipment also includes electrical power generation
1241	1241	11 equipment used primarily for production agriculture.
1242	1242	12 This item (2) is exempt from the provisions of Section
1243	1243	13 2-70.
1244	1244	14 (3) Until July 1, 2003, distillation machinery and
1245	1245	15 equipment, sold as a unit or kit, assembled or installed
1246	1246	16 by the retailer, certified by the user to be used only for
1247	1247	17 the production of ethyl alcohol that will be used for
1248	1248	18 consumption as motor fuel or as a component of motor fuel
1249	1249	19 for the personal use of the user, and not subject to sale
1250	1250	20 or resale.
1251	1251	21 (4) Until July 1, 2003 and beginning again September
1252	1252	22 1, 2004 through August 30, 2014, graphic arts machinery
1253	1253	23 and equipment, including repair and replacement parts,
1254	1254	24 both new and used, and including that manufactured on
1255	1255	25 special order or purchased for lease, certified by the
1256	1256	26 purchaser to be used primarily for graphic arts
1257	1257
1258	1258
1259	1259
1260	1260
1261	1261
1262	1262	SB2027 - 34 - LRB104 03451 HLH 13474 b
1263	1263
1264	1264
1265	1265	SB2027- 35 -LRB104 03451 HLH 13474 b SB2027 - 35 - LRB104 03451 HLH 13474 b
1266	1266	SB2027 - 35 - LRB104 03451 HLH 13474 b
1267	1267	1 production. Equipment includes chemicals or chemicals
1268	1268	2 acting as catalysts but only if the chemicals or chemicals
1269	1269	3 acting as catalysts effect a direct and immediate change
1270	1270	4 upon a graphic arts product. Beginning on July 1, 2017,
1271	1271	5 graphic arts machinery and equipment is included in the
1272	1272	6 manufacturing and assembling machinery and equipment
1273	1273	7 exemption under paragraph (14).
1274	1274	8 (5) A motor vehicle that is used for automobile
1275	1275	9 renting, as defined in the Automobile Renting Occupation
1276	1276	10 and Use Tax Act. This paragraph is exempt from the
1277	1277	11 provisions of Section 2-70.
1278	1278	12 (6) Personal property sold by a teacher-sponsored
1279	1279	13 student organization affiliated with an elementary or
1280	1280	14 secondary school located in Illinois.
1281	1281	15 (7) Until July 1, 2003, proceeds of that portion of
1282	1282	16 the selling price of a passenger car the sale of which is
1283	1283	17 subject to the Replacement Vehicle Tax.
1284	1284	18 (8) Personal property sold to an Illinois county fair
1285	1285	19 association for use in conducting, operating, or promoting
1286	1286	20 the county fair.
1287	1287	21 (9) Personal property sold to a not-for-profit arts or
1288	1288	22 cultural organization that establishes, by proof required
1289	1289	23 by the Department by rule, that it has received an
1290	1290	24 exemption under Section 501(c)(3) of the Internal Revenue
1291	1291	25 Code and that is organized and operated primarily for the
1292	1292	26 presentation or support of arts or cultural programming,
1293	1293
1294	1294
1295	1295
1296	1296
1297	1297
1298	1298	SB2027 - 35 - LRB104 03451 HLH 13474 b
1299	1299
1300	1300
1301	1301	SB2027- 36 -LRB104 03451 HLH 13474 b SB2027 - 36 - LRB104 03451 HLH 13474 b
1302	1302	SB2027 - 36 - LRB104 03451 HLH 13474 b
1303	1303	1 activities, or services. These organizations include, but
1304	1304	2 are not limited to, music and dramatic arts organizations
1305	1305	3 such as symphony orchestras and theatrical groups, arts
1306	1306	4 and cultural service organizations, local arts councils,
1307	1307	5 visual arts organizations, and media arts organizations.
1308	1308	6 On and after July 1, 2001 (the effective date of Public Act
1309	1309	7 92-35), however, an entity otherwise eligible for this
1310	1310	8 exemption shall not make tax-free purchases unless it has
1311	1311	9 an active identification number issued by the Department.
1312	1312	10 (10) Personal property sold by a corporation, society,
1313	1313	11 association, foundation, institution, or organization,
1314	1314	12 other than a limited liability company, that is organized
1315	1315	13 and operated as a not-for-profit service enterprise for
1316	1316	14 the benefit of persons 65 years of age or older if the
1317	1317	15 personal property was not purchased by the enterprise for
1318	1318	16 the purpose of resale by the enterprise.
1319	1319	17 (11) Except as otherwise provided in this Section,
1320	1320	18 personal property sold to a governmental body, to a
1321	1321	19 corporation, society, association, foundation, or
1322	1322	20 institution organized and operated exclusively for
1323	1323	21 charitable, religious, or educational purposes, or to a
1324	1324	22 not-for-profit corporation, society, association,
1325	1325	23 foundation, institution, or organization that has no
1326	1326	24 compensated officers or employees and that is organized
1327	1327	25 and operated primarily for the recreation of persons 55
1328	1328	26 years of age or older. A limited liability company may
1329	1329
1330	1330
1331	1331
1332	1332
1333	1333
1334	1334	SB2027 - 36 - LRB104 03451 HLH 13474 b
1335	1335
1336	1336
1337	1337	SB2027- 37 -LRB104 03451 HLH 13474 b SB2027 - 37 - LRB104 03451 HLH 13474 b
1338	1338	SB2027 - 37 - LRB104 03451 HLH 13474 b
1339	1339	1 qualify for the exemption under this paragraph only if the
1340	1340	2 limited liability company is organized and operated
1341	1341	3 exclusively for educational purposes. On and after July 1,
1342	1342	4 1987, however, no entity otherwise eligible for this
1343	1343	5 exemption shall make tax-free purchases unless it has an
1344	1344	6 active identification number issued by the Department.
1345	1345	7 (12) (Blank).
1346	1346	8 (12-5) On and after July 1, 2003 and through June 30,
1347	1347	9 2004, motor vehicles of the second division with a gross
1348	1348	10 vehicle weight in excess of 8,000 pounds that are subject
1349	1349	11 to the commercial distribution fee imposed under Section
1350	1350	12 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
1351	1351	13 2004 and through June 30, 2005, the use in this State of
1352	1352	14 motor vehicles of the second division: (i) with a gross
1353	1353	15 vehicle weight rating in excess of 8,000 pounds; (ii) that
1354	1354	16 are subject to the commercial distribution fee imposed
1355	1355	17 under Section 3-815.1 of the Illinois Vehicle Code; and
1356	1356	18 (iii) that are primarily used for commercial purposes.
1357	1357	19 Through June 30, 2005, this exemption applies to repair
1358	1358	20 and replacement parts added after the initial purchase of
1359	1359	21 such a motor vehicle if that motor vehicle is used in a
1360	1360	22 manner that would qualify for the rolling stock exemption
1361	1361	23 otherwise provided for in this Act. For purposes of this
1362	1362	24 paragraph, "used for commercial purposes" means the
1363	1363	25 transportation of persons or property in furtherance of
1364	1364	26 any commercial or industrial enterprise whether for-hire
1365	1365
1366	1366
1367	1367
1368	1368
1369	1369
1370	1370	SB2027 - 37 - LRB104 03451 HLH 13474 b
1371	1371
1372	1372
1373	1373	SB2027- 38 -LRB104 03451 HLH 13474 b SB2027 - 38 - LRB104 03451 HLH 13474 b
1374	1374	SB2027 - 38 - LRB104 03451 HLH 13474 b
1375	1375	1 or not.
1376	1376	2 (13) Proceeds from sales to owners or lessors,
1377	1377	3 lessees, or shippers of tangible personal property that is
1378	1378	4 utilized by interstate carriers for hire for use as
1379	1379	5 rolling stock moving in interstate commerce and equipment
1380	1380	6 operated by a telecommunications provider, licensed as a
1381	1381	7 common carrier by the Federal Communications Commission,
1382	1382	8 which is permanently installed in or affixed to aircraft
1383	1383	9 moving in interstate commerce.
1384	1384	10 (14) Machinery and equipment that will be used by the
1385	1385	11 purchaser, or a lessee of the purchaser, primarily in the
1386	1386	12 process of manufacturing or assembling tangible personal
1387	1387	13 property for wholesale or retail sale or lease, whether
1388	1388	14 the sale or lease is made directly by the manufacturer or
1389	1389	15 by some other person, whether the materials used in the
1390	1390	16 process are owned by the manufacturer or some other
1391	1391	17 person, or whether the sale or lease is made apart from or
1392	1392	18 as an incident to the seller's engaging in the service
1393	1393	19 occupation of producing machines, tools, dies, jigs,
1394	1394	20 patterns, gauges, or other similar items of no commercial
1395	1395	21 value on special order for a particular purchaser. The
1396	1396	22 exemption provided by this paragraph (14) does not include
1397	1397	23 machinery and equipment used in (i) the generation of
1398	1398	24 electricity for wholesale or retail sale; (ii) the
1399	1399	25 generation or treatment of natural or artificial gas for
1400	1400	26 wholesale or retail sale that is delivered to customers
1401	1401
1402	1402
1403	1403
1404	1404
1405	1405
1406	1406	SB2027 - 38 - LRB104 03451 HLH 13474 b
1407	1407
1408	1408
1409	1409	SB2027- 39 -LRB104 03451 HLH 13474 b SB2027 - 39 - LRB104 03451 HLH 13474 b
1410	1410	SB2027 - 39 - LRB104 03451 HLH 13474 b
1411	1411	1 through pipes, pipelines, or mains; or (iii) the treatment
1412	1412	2 of water for wholesale or retail sale that is delivered to
1413	1413	3 customers through pipes, pipelines, or mains. The
1414	1414	4 provisions of Public Act 98-583 are declaratory of
1415	1415	5 existing law as to the meaning and scope of this
1416	1416	6 exemption. Beginning on July 1, 2017, the exemption
1417	1417	7 provided by this paragraph (14) includes, but is not
1418	1418	8 limited to, graphic arts machinery and equipment, as
1419	1419	9 defined in paragraph (4) of this Section.
1420	1420	10 (15) Proceeds of mandatory service charges separately
1421	1421	11 stated on customers' bills for purchase and consumption of
1422	1422	12 food and beverages, to the extent that the proceeds of the
1423	1423	13 service charge are in fact turned over as tips or as a
1424	1424	14 substitute for tips to the employees who participate
1425	1425	15 directly in preparing, serving, hosting or cleaning up the
1426	1426	16 food or beverage function with respect to which the
1427	1427	17 service charge is imposed.
1428	1428	18 (16) Tangible personal property sold to a purchaser if
1429	1429	19 the purchaser is exempt from use tax by operation of
1430	1430	20 federal law. This paragraph is exempt from the provisions
1431	1431	21 of Section 2-70.
1432	1432	22 (17) Tangible personal property sold to a common
1433	1433	23 carrier by rail or motor that receives the physical
1434	1434	24 possession of the property in Illinois and that transports
1435	1435	25 the property, or shares with another common carrier in the
1436	1436	26 transportation of the property, out of Illinois on a
1437	1437
1438	1438
1439	1439
1440	1440
1441	1441
1442	1442	SB2027 - 39 - LRB104 03451 HLH 13474 b
1443	1443
1444	1444
1445	1445	SB2027- 40 -LRB104 03451 HLH 13474 b SB2027 - 40 - LRB104 03451 HLH 13474 b
1446	1446	SB2027 - 40 - LRB104 03451 HLH 13474 b
1447	1447	1 standard uniform bill of lading showing the seller of the
1448	1448	2 property as the shipper or consignor of the property to a
1449	1449	3 destination outside Illinois, for use outside Illinois.
1450	1450	4 (18) Legal tender, currency, medallions, or gold or
1451	1451	5 silver coinage issued by the State of Illinois, the
1452	1452	6 government of the United States of America, or the
1453	1453	7 government of any foreign country, and bullion.
1454	1454	8 (19) Until July 1, 2003, oil field exploration,
1455	1455	9 drilling, and production equipment, including (i) rigs and
1456	1456	10 parts of rigs, rotary rigs, cable tool rigs, and workover
1457	1457	11 rigs, (ii) pipe and tubular goods, including casing and
1458	1458	12 drill strings, (iii) pumps and pump-jack units, (iv)
1459	1459	13 storage tanks and flow lines, (v) any individual
1460	1460	14 replacement part for oil field exploration, drilling, and
1461	1461	15 production equipment, and (vi) machinery and equipment
1462	1462	16 purchased for lease; but excluding motor vehicles required
1463	1463	17 to be registered under the Illinois Vehicle Code.
1464	1464	18 (20) Photoprocessing machinery and equipment,
1465	1465	19 including repair and replacement parts, both new and used,
1466	1466	20 including that manufactured on special order, certified by
1467	1467	21 the purchaser to be used primarily for photoprocessing,
1468	1468	22 and including photoprocessing machinery and equipment
1469	1469	23 purchased for lease.
1470	1470	24 (21) Until July 1, 2028, coal and aggregate
1471	1471	25 exploration, mining, off-highway hauling, processing,
1472	1472	26 maintenance, and reclamation equipment, including
1473	1473
1474	1474
1475	1475
1476	1476
1477	1477
1478	1478	SB2027 - 40 - LRB104 03451 HLH 13474 b
1479	1479
1480	1480
1481	1481	SB2027- 41 -LRB104 03451 HLH 13474 b SB2027 - 41 - LRB104 03451 HLH 13474 b
1482	1482	SB2027 - 41 - LRB104 03451 HLH 13474 b
1483	1483	1 replacement parts and equipment, and including equipment
1484	1484	2 purchased for lease, but excluding motor vehicles required
1485	1485	3 to be registered under the Illinois Vehicle Code. The
1486	1486	4 changes made to this Section by Public Act 97-767 apply on
1487	1487	5 and after July 1, 2003, but no claim for credit or refund
1488	1488	6 is allowed on or after August 16, 2013 (the effective date
1489	1489	7 of Public Act 98-456) for such taxes paid during the
1490	1490	8 period beginning July 1, 2003 and ending on August 16,
1491	1491	9 2013 (the effective date of Public Act 98-456).
1492	1492	10 (22) Until June 30, 2013, fuel and petroleum products
1493	1493	11 sold to or used by an air carrier, certified by the carrier
1494	1494	12 to be used for consumption, shipment, or storage in the
1495	1495	13 conduct of its business as an air common carrier, for a
1496	1496	14 flight destined for or returning from a location or
1497	1497	15 locations outside the United States without regard to
1498	1498	16 previous or subsequent domestic stopovers.
1499	1499	17 Beginning July 1, 2013, fuel and petroleum products
1500	1500	18 sold to or used by an air carrier, certified by the carrier
1501	1501	19 to be used for consumption, shipment, or storage in the
1502	1502	20 conduct of its business as an air common carrier, for a
1503	1503	21 flight that (i) is engaged in foreign trade or is engaged
1504	1504	22 in trade between the United States and any of its
1505	1505	23 possessions and (ii) transports at least one individual or
1506	1506	24 package for hire from the city of origination to the city
1507	1507	25 of final destination on the same aircraft, without regard
1508	1508	26 to a change in the flight number of that aircraft.
1509	1509
1510	1510
1511	1511
1512	1512
1513	1513
1514	1514	SB2027 - 41 - LRB104 03451 HLH 13474 b
1515	1515
1516	1516
1517	1517	SB2027- 42 -LRB104 03451 HLH 13474 b SB2027 - 42 - LRB104 03451 HLH 13474 b
1518	1518	SB2027 - 42 - LRB104 03451 HLH 13474 b
1519	1519	1 (23) A transaction in which the purchase order is
1520	1520	2 received by a florist who is located outside Illinois, but
1521	1521	3 who has a florist located in Illinois deliver the property
1522	1522	4 to the purchaser or the purchaser's donee in Illinois.
1523	1523	5 (24) Fuel consumed or used in the operation of ships,
1524	1524	6 barges, or vessels that are used primarily in or for the
1525	1525	7 transportation of property or the conveyance of persons
1526	1526	8 for hire on rivers bordering on this State if the fuel is
1527	1527	9 delivered by the seller to the purchaser's barge, ship, or
1528	1528	10 vessel while it is afloat upon that bordering river.
1529	1529	11 (25) Except as provided in items item (25-5) and
1530	1530	12 (25-6) of this Section, a motor vehicle sold in this State
1531	1531	13 to a nonresident even though the motor vehicle is
1532	1532	14 delivered to the nonresident in this State, if the motor
1533	1533	15 vehicle is not to be titled in this State, and if a
1534	1534	16 drive-away permit is issued to the motor vehicle as
1535	1535	17 provided in Section 3-603 of the Illinois Vehicle Code or
1536	1536	18 if the nonresident purchaser has vehicle registration
1537	1537	19 plates to transfer to the motor vehicle upon returning to
1538	1538	20 his or her home state. The issuance of the drive-away
1539	1539	21 permit or having the out-of-state registration plates to
1540	1540	22 be transferred is prima facie evidence that the motor
1541	1541	23 vehicle will not be titled in this State.
1542	1542	24 (25-5) The exemption under item (25) does not apply if
1543	1543	25 the state in which the motor vehicle will be titled does
1544	1544	26 not allow a reciprocal exemption for a motor vehicle sold
1545	1545
1546	1546
1547	1547
1548	1548
1549	1549
1550	1550	SB2027 - 42 - LRB104 03451 HLH 13474 b
1551	1551
1552	1552
1553	1553	SB2027- 43 -LRB104 03451 HLH 13474 b SB2027 - 43 - LRB104 03451 HLH 13474 b
1554	1554	SB2027 - 43 - LRB104 03451 HLH 13474 b
1555	1555	1 and delivered in that state to an Illinois resident but
1556	1556	2 titled in Illinois. The tax collected under this Act on
1557	1557	3 the sale of a motor vehicle in this State to a resident of
1558	1558	4 another state that does not allow a reciprocal exemption
1559	1559	5 shall be imposed at a rate equal to the state's rate of tax
1560	1560	6 on taxable property in the state in which the purchaser is
1561	1561	7 a resident, except that the tax shall not exceed the tax
1562	1562	8 that would otherwise be imposed under this Act. At the
1563	1563	9 time of the sale, the purchaser shall execute a statement,
1564	1564	10 signed under penalty of perjury, of his or her intent to
1565	1565	11 title the vehicle in the state in which the purchaser is a
1566	1566	12 resident within 30 days after the sale and of the fact of
1567	1567	13 the payment to the State of Illinois of tax in an amount
1568	1568	14 equivalent to the state's rate of tax on taxable property
1569	1569	15 in his or her state of residence and shall submit the
1570	1570	16 statement to the appropriate tax collection agency in his
1571	1571	17 or her state of residence. In addition, the retailer must
1572	1572	18 retain a signed copy of the statement in his or her
1573	1573	19 records. Nothing in this item shall be construed to
1574	1574	20 require the removal of the vehicle from this state
1575	1575	21 following the filing of an intent to title the vehicle in
1576	1576	22 the purchaser's state of residence if the purchaser titles
1577	1577	23 the vehicle in his or her state of residence within 30 days
1578	1578	24 after the date of sale. The tax collected under this Act in
1579	1579	25 accordance with this item (25-5) shall be proportionately
1580	1580	26 distributed as if the tax were collected at the 6.25%
1581	1581
1582	1582
1583	1583
1584	1584
1585	1585
1586	1586	SB2027 - 43 - LRB104 03451 HLH 13474 b
1587	1587
1588	1588
1589	1589	SB2027- 44 -LRB104 03451 HLH 13474 b SB2027 - 44 - LRB104 03451 HLH 13474 b
1590	1590	SB2027 - 44 - LRB104 03451 HLH 13474 b
1591	1591	1 general rate imposed under this Act.
1592	1592	2 (25-6) There is a rebuttable presumption that the
1593	1593	3 exemption under item (25) does not apply if the purchaser
1594	1594	4 is a limited liability company and a member of the limited
1595	1595	5 liability company is a resident of Illinois. This
1596	1596	6 presumption may be rebutted by other evidence, such as
1597	1597	7 evidence the motor vehicle is insured at a garaging or
1598	1598	8 storage address outside Illinois or other evidence of the
1599	1599	9 physical address at which the motor vehicle will be stored
1600	1600	10 or garaged outside Illinois.
1601	1601	11 (25-7) Beginning on July 1, 2007, no tax is imposed
1602	1602	12 under this Act on the sale of an aircraft, as defined in
1603	1603	13 Section 3 of the Illinois Aeronautics Act, if all of the
1604	1604	14 following conditions are met:
1605	1605	15 (1) the aircraft leaves this State within 15 days
1606	1606	16 after the later of either the issuance of the final
1607	1607	17 billing for the sale of the aircraft, or the
1608	1608	18 authorized approval for return to service, completion
1609	1609	19 of the maintenance record entry, and completion of the
1610	1610	20 test flight and ground test for inspection, as
1611	1611	21 required by 14 CFR 91.407;
1612	1612	22 (2) the aircraft is not based or registered in
1613	1613	23 this State after the sale of the aircraft; and
1614	1614	24 (3) the seller retains in his or her books and
1615	1615	25 records and provides to the Department a signed and
1616	1616	26 dated certification from the purchaser, on a form
1617	1617
1618	1618
1619	1619
1620	1620
1621	1621
1622	1622	SB2027 - 44 - LRB104 03451 HLH 13474 b
1623	1623
1624	1624
1625	1625	SB2027- 45 -LRB104 03451 HLH 13474 b SB2027 - 45 - LRB104 03451 HLH 13474 b
1626	1626	SB2027 - 45 - LRB104 03451 HLH 13474 b
1627	1627	1 prescribed by the Department, certifying that the
1628	1628	2 requirements of this item (25-7) are met. The
1629	1629	3 certificate must also include the name and address of
1630	1630	4 the purchaser, the address of the location where the
1631	1631	5 aircraft is to be titled or registered, the address of
1632	1632	6 the primary physical location of the aircraft, and
1633	1633	7 other information that the Department may reasonably
1634	1634	8 require.
1635	1635	9 For purposes of this item (25-7):
1636	1636	10 "Based in this State" means hangared, stored, or
1637	1637	11 otherwise used, excluding post-sale customizations as
1638	1638	12 defined in this Section, for 10 or more days in each
1639	1639	13 12-month period immediately following the date of the sale
1640	1640	14 of the aircraft.
1641	1641	15 "Registered in this State" means an aircraft
1642	1642	16 registered with the Department of Transportation,
1643	1643	17 Aeronautics Division, or titled or registered with the
1644	1644	18 Federal Aviation Administration to an address located in
1645	1645	19 this State.
1646	1646	20 This paragraph (25-7) is exempt from the provisions of
1647	1647	21 Section 2-70.
1648	1648	22 (26) Semen used for artificial insemination of
1649	1649	23 livestock for direct agricultural production.
1650	1650	24 (27) Horses, or interests in horses, registered with
1651	1651	25 and meeting the requirements of any of the Arabian Horse
1652	1652	26 Club Registry of America, Appaloosa Horse Club, American
1653	1653
1654	1654
1655	1655
1656	1656
1657	1657
1658	1658	SB2027 - 45 - LRB104 03451 HLH 13474 b
1659	1659
1660	1660
1661	1661	SB2027- 46 -LRB104 03451 HLH 13474 b SB2027 - 46 - LRB104 03451 HLH 13474 b
1662	1662	SB2027 - 46 - LRB104 03451 HLH 13474 b
1663	1663	1 Quarter Horse Association, United States Trotting
1664	1664	2 Association, or Jockey Club, as appropriate, used for
1665	1665	3 purposes of breeding or racing for prizes. This item (27)
1666	1666	4 is exempt from the provisions of Section 2-70, and the
1667	1667	5 exemption provided for under this item (27) applies for
1668	1668	6 all periods beginning May 30, 1995, but no claim for
1669	1669	7 credit or refund is allowed on or after January 1, 2008
1670	1670	8 (the effective date of Public Act 95-88) for such taxes
1671	1671	9 paid during the period beginning May 30, 2000 and ending
1672	1672	10 on January 1, 2008 (the effective date of Public Act
1673	1673	11 95-88).
1674	1674	12 (28) Computers and communications equipment utilized
1675	1675	13 for any hospital purpose and equipment used in the
1676	1676	14 diagnosis, analysis, or treatment of hospital patients
1677	1677	15 sold to a lessor who leases the equipment, under a lease of
1678	1678	16 one year or longer executed or in effect at the time of the
1679	1679	17 purchase, to a hospital that has been issued an active tax
1680	1680	18 exemption identification number by the Department under
1681	1681	19 Section 1g of this Act.
1682	1682	20 (29) Personal property sold to a lessor who leases the
1683	1683	21 property, under a lease of one year or longer executed or
1684	1684	22 in effect at the time of the purchase, to a governmental
1685	1685	23 body that has been issued an active tax exemption
1686	1686	24 identification number by the Department under Section 1g
1687	1687	25 of this Act.
1688	1688	26 (30) Beginning with taxable years ending on or after
1689	1689
1690	1690
1691	1691
1692	1692
1693	1693
1694	1694	SB2027 - 46 - LRB104 03451 HLH 13474 b
1695	1695
1696	1696
1697	1697	SB2027- 47 -LRB104 03451 HLH 13474 b SB2027 - 47 - LRB104 03451 HLH 13474 b
1698	1698	SB2027 - 47 - LRB104 03451 HLH 13474 b
1699	1699	1 December 31, 1995 and ending with taxable years ending on
1700	1700	2 or before December 31, 2004, personal property that is
1701	1701	3 donated for disaster relief to be used in a State or
1702	1702	4 federally declared disaster area in Illinois or bordering
1703	1703	5 Illinois by a manufacturer or retailer that is registered
1704	1704	6 in this State to a corporation, society, association,
1705	1705	7 foundation, or institution that has been issued a sales
1706	1706	8 tax exemption identification number by the Department that
1707	1707	9 assists victims of the disaster who reside within the
1708	1708	10 declared disaster area.
1709	1709	11 (31) Beginning with taxable years ending on or after
1710	1710	12 December 31, 1995 and ending with taxable years ending on
1711	1711	13 or before December 31, 2004, personal property that is
1712	1712	14 used in the performance of infrastructure repairs in this
1713	1713	15 State, including, but not limited to, municipal roads and
1714	1714	16 streets, access roads, bridges, sidewalks, waste disposal
1715	1715	17 systems, water and sewer line extensions, water
1716	1716	18 distribution and purification facilities, storm water
1717	1717	19 drainage and retention facilities, and sewage treatment
1718	1718	20 facilities, resulting from a State or federally declared
1719	1719	21 disaster in Illinois or bordering Illinois when such
1720	1720	22 repairs are initiated on facilities located in the
1721	1721	23 declared disaster area within 6 months after the disaster.
1722	1722	24 (32) Beginning July 1, 1999, game or game birds sold
1723	1723	25 at a "game breeding and hunting preserve area" as that
1724	1724	26 term is used in the Wildlife Code. This paragraph is
1725	1725
1726	1726
1727	1727
1728	1728
1729	1729
1730	1730	SB2027 - 47 - LRB104 03451 HLH 13474 b
1731	1731
1732	1732
1733	1733	SB2027- 48 -LRB104 03451 HLH 13474 b SB2027 - 48 - LRB104 03451 HLH 13474 b
1734	1734	SB2027 - 48 - LRB104 03451 HLH 13474 b
1735	1735	1 exempt from the provisions of Section 2-70.
1736	1736	2 (33) A motor vehicle, as that term is defined in
1737	1737	3 Section 1-146 of the Illinois Vehicle Code, that is
1738	1738	4 donated to a corporation, limited liability company,
1739	1739	5 society, association, foundation, or institution that is
1740	1740	6 determined by the Department to be organized and operated
1741	1741	7 exclusively for educational purposes. For purposes of this
1742	1742	8 exemption, "a corporation, limited liability company,
1743	1743	9 society, association, foundation, or institution organized
1744	1744	10 and operated exclusively for educational purposes" means
1745	1745	11 all tax-supported public schools, private schools that
1746	1746	12 offer systematic instruction in useful branches of
1747	1747	13 learning by methods common to public schools and that
1748	1748	14 compare favorably in their scope and intensity with the
1749	1749	15 course of study presented in tax-supported schools, and
1750	1750	16 vocational or technical schools or institutes organized
1751	1751	17 and operated exclusively to provide a course of study of
1752	1752	18 not less than 6 weeks duration and designed to prepare
1753	1753	19 individuals to follow a trade or to pursue a manual,
1754	1754	20 technical, mechanical, industrial, business, or commercial
1755	1755	21 occupation.
1756	1756	22 (34) Beginning January 1, 2000, personal property,
1757	1757	23 including food, purchased through fundraising events for
1758	1758	24 the benefit of a public or private elementary or secondary
1759	1759	25 school, a group of those schools, or one or more school
1760	1760	26 districts if the events are sponsored by an entity
1761	1761
1762	1762
1763	1763
1764	1764
1765	1765
1766	1766	SB2027 - 48 - LRB104 03451 HLH 13474 b
1767	1767
1768	1768
1769	1769	SB2027- 49 -LRB104 03451 HLH 13474 b SB2027 - 49 - LRB104 03451 HLH 13474 b
1770	1770	SB2027 - 49 - LRB104 03451 HLH 13474 b
1771	1771	1 recognized by the school district that consists primarily
1772	1772	2 of volunteers and includes parents and teachers of the
1773	1773	3 school children. This paragraph does not apply to
1774	1774	4 fundraising events (i) for the benefit of private home
1775	1775	5 instruction or (ii) for which the fundraising entity
1776	1776	6 purchases the personal property sold at the events from
1777	1777	7 another individual or entity that sold the property for
1778	1778	8 the purpose of resale by the fundraising entity and that
1779	1779	9 profits from the sale to the fundraising entity. This
1780	1780	10 paragraph is exempt from the provisions of Section 2-70.
1781	1781	11 (35) Beginning January 1, 2000 and through December
1782	1782	12 31, 2001, new or used automatic vending machines that
1783	1783	13 prepare and serve hot food and beverages, including
1784	1784	14 coffee, soup, and other items, and replacement parts for
1785	1785	15 these machines. Beginning January 1, 2002 and through June
1786	1786	16 30, 2003, machines and parts for machines used in
1787	1787	17 commercial, coin-operated amusement and vending business
1788	1788	18 if a use or occupation tax is paid on the gross receipts
1789	1789	19 derived from the use of the commercial, coin-operated
1790	1790	20 amusement and vending machines. This paragraph is exempt
1791	1791	21 from the provisions of Section 2-70.
1792	1792	22 (35-5) Beginning August 23, 2001 and through June 30,
1793	1793	23 2016, food for human consumption that is to be consumed
1794	1794	24 off the premises where it is sold (other than alcoholic
1795	1795	25 beverages, soft drinks, and food that has been prepared
1796	1796	26 for immediate consumption) and prescription and
1797	1797
1798	1798
1799	1799
1800	1800
1801	1801
1802	1802	SB2027 - 49 - LRB104 03451 HLH 13474 b
1803	1803
1804	1804
1805	1805	SB2027- 50 -LRB104 03451 HLH 13474 b SB2027 - 50 - LRB104 03451 HLH 13474 b
1806	1806	SB2027 - 50 - LRB104 03451 HLH 13474 b
1807	1807	1 nonprescription medicines, drugs, medical appliances, and
1808	1808	2 insulin, urine testing materials, syringes, and needles
1809	1809	3 used by diabetics, for human use, when purchased for use
1810	1810	4 by a person receiving medical assistance under Article V
1811	1811	5 of the Illinois Public Aid Code who resides in a licensed
1812	1812	6 long-term care facility, as defined in the Nursing Home
1813	1813	7 Care Act, or a licensed facility as defined in the ID/DD
1814	1814	8 Community Care Act, the MC/DD Act, or the Specialized
1815	1815	9 Mental Health Rehabilitation Act of 2013.
1816	1816	10 (36) Beginning August 2, 2001, computers and
1817	1817	11 communications equipment utilized for any hospital purpose
1818	1818	12 and equipment used in the diagnosis, analysis, or
1819	1819	13 treatment of hospital patients sold to a lessor who leases
1820	1820	14 the equipment, under a lease of one year or longer
1821	1821	15 executed or in effect at the time of the purchase, to a
1822	1822	16 hospital that has been issued an active tax exemption
1823	1823	17 identification number by the Department under Section 1g
1824	1824	18 of this Act. This paragraph is exempt from the provisions
1825	1825	19 of Section 2-70.
1826	1826	20 (37) Beginning August 2, 2001, personal property sold
1827	1827	21 to a lessor who leases the property, under a lease of one
1828	1828	22 year or longer executed or in effect at the time of the
1829	1829	23 purchase, to a governmental body that has been issued an
1830	1830	24 active tax exemption identification number by the
1831	1831	25 Department under Section 1g of this Act. This paragraph is
1832	1832	26 exempt from the provisions of Section 2-70.
1833	1833
1834	1834
1835	1835
1836	1836
1837	1837
1838	1838	SB2027 - 50 - LRB104 03451 HLH 13474 b
1839	1839
1840	1840
1841	1841	SB2027- 51 -LRB104 03451 HLH 13474 b SB2027 - 51 - LRB104 03451 HLH 13474 b
1842	1842	SB2027 - 51 - LRB104 03451 HLH 13474 b
1843	1843	1 (38) Beginning on January 1, 2002 and through June 30,
1844	1844	2 2016, tangible personal property purchased from an
1845	1845	3 Illinois retailer by a taxpayer engaged in centralized
1846	1846	4 purchasing activities in Illinois who will, upon receipt
1847	1847	5 of the property in Illinois, temporarily store the
1848	1848	6 property in Illinois (i) for the purpose of subsequently
1849	1849	7 transporting it outside this State for use or consumption
1850	1850	8 thereafter solely outside this State or (ii) for the
1851	1851	9 purpose of being processed, fabricated, or manufactured
1852	1852	10 into, attached to, or incorporated into other tangible
1853	1853	11 personal property to be transported outside this State and
1854	1854	12 thereafter used or consumed solely outside this State. The
1855	1855	13 Director of Revenue shall, pursuant to rules adopted in
1856	1856	14 accordance with the Illinois Administrative Procedure Act,
1857	1857	15 issue a permit to any taxpayer in good standing with the
1858	1858	16 Department who is eligible for the exemption under this
1859	1859	17 paragraph (38). The permit issued under this paragraph
1860	1860	18 (38) shall authorize the holder, to the extent and in the
1861	1861	19 manner specified in the rules adopted under this Act, to
1862	1862	20 purchase tangible personal property from a retailer exempt
1863	1863	21 from the taxes imposed by this Act. Taxpayers shall
1864	1864	22 maintain all necessary books and records to substantiate
1865	1865	23 the use and consumption of all such tangible personal
1866	1866	24 property outside of the State of Illinois.
1867	1867	25 (39) Beginning January 1, 2008, tangible personal
1868	1868	26 property used in the construction or maintenance of a
1869	1869
1870	1870
1871	1871
1872	1872
1873	1873
1874	1874	SB2027 - 51 - LRB104 03451 HLH 13474 b
1875	1875
1876	1876
1877	1877	SB2027- 52 -LRB104 03451 HLH 13474 b SB2027 - 52 - LRB104 03451 HLH 13474 b
1878	1878	SB2027 - 52 - LRB104 03451 HLH 13474 b
1879	1879	1 community water supply, as defined under Section 3.145 of
1880	1880	2 the Environmental Protection Act, that is operated by a
1881	1881	3 not-for-profit corporation that holds a valid water supply
1882	1882	4 permit issued under Title IV of the Environmental
1883	1883	5 Protection Act. This paragraph is exempt from the
1884	1884	6 provisions of Section 2-70.
1885	1885	7 (40) Beginning January 1, 2010 and continuing through
1886	1886	8 December 31, 2029, materials, parts, equipment,
1887	1887	9 components, and furnishings incorporated into or upon an
1888	1888	10 aircraft as part of the modification, refurbishment,
1889	1889	11 completion, replacement, repair, or maintenance of the
1890	1890	12 aircraft. This exemption includes consumable supplies used
1891	1891	13 in the modification, refurbishment, completion,
1892	1892	14 replacement, repair, and maintenance of aircraft. However,
1893	1893	15 until January 1, 2024, this exemption excludes any
1894	1894	16 materials, parts, equipment, components, and consumable
1895	1895	17 supplies used in the modification, replacement, repair,
1896	1896	18 and maintenance of aircraft engines or power plants,
1897	1897	19 whether such engines or power plants are installed or
1898	1898	20 uninstalled upon any such aircraft. "Consumable supplies"
1899	1899	21 include, but are not limited to, adhesive, tape,
1900	1900	22 sandpaper, general purpose lubricants, cleaning solution,
1901	1901	23 latex gloves, and protective films.
1902	1902	24 Beginning January 1, 2010 and continuing through
1903	1903	25 December 31, 2023, this exemption applies only to the sale
1904	1904	26 of qualifying tangible personal property to persons who
1905	1905
1906	1906
1907	1907
1908	1908
1909	1909
1910	1910	SB2027 - 52 - LRB104 03451 HLH 13474 b
1911	1911
1912	1912
1913	1913	SB2027- 53 -LRB104 03451 HLH 13474 b SB2027 - 53 - LRB104 03451 HLH 13474 b
1914	1914	SB2027 - 53 - LRB104 03451 HLH 13474 b
1915	1915	1 modify, refurbish, complete, replace, or maintain an
1916	1916	2 aircraft and who (i) hold an Air Agency Certificate and
1917	1917	3 are empowered to operate an approved repair station by the
1918	1918	4 Federal Aviation Administration, (ii) have a Class IV
1919	1919	5 Rating, and (iii) conduct operations in accordance with
1920	1920	6 Part 145 of the Federal Aviation Regulations. The
1921	1921	7 exemption does not include aircraft operated by a
1922	1922	8 commercial air carrier providing scheduled passenger air
1923	1923	9 service pursuant to authority issued under Part 121 or
1924	1924	10 Part 129 of the Federal Aviation Regulations. From January
1925	1925	11 1, 2024 through December 31, 2029, this exemption applies
1926	1926	12 only to the sale of qualifying tangible personal property
1927	1927	13 to: (A) persons who modify, refurbish, complete, repair,
1928	1928	14 replace, or maintain aircraft and who (i) hold an Air
1929	1929	15 Agency Certificate and are empowered to operate an
1930	1930	16 approved repair station by the Federal Aviation
1931	1931	17 Administration, (ii) have a Class IV Rating, and (iii)
1932	1932	18 conduct operations in accordance with Part 145 of the
1933	1933	19 Federal Aviation Regulations; and (B) persons who engage
1934	1934	20 in the modification, replacement, repair, and maintenance
1935	1935	21 of aircraft engines or power plants without regard to
1936	1936	22 whether or not those persons meet the qualifications of
1937	1937	23 item (A).
1938	1938	24 The changes made to this paragraph (40) by Public Act
1939	1939	25 98-534 are declarative of existing law. It is the intent
1940	1940	26 of the General Assembly that the exemption under this
1941	1941
1942	1942
1943	1943
1944	1944
1945	1945
1946	1946	SB2027 - 53 - LRB104 03451 HLH 13474 b
1947	1947
1948	1948
1949	1949	SB2027- 54 -LRB104 03451 HLH 13474 b SB2027 - 54 - LRB104 03451 HLH 13474 b
1950	1950	SB2027 - 54 - LRB104 03451 HLH 13474 b
1951	1951	1 paragraph (40) applies continuously from January 1, 2010
1952	1952	2 through December 31, 2024; however, no claim for credit or
1953	1953	3 refund is allowed for taxes paid as a result of the
1954	1954	4 disallowance of this exemption on or after January 1, 2015
1955	1955	5 and prior to February 5, 2020 (the effective date of
1956	1956	6 Public Act 101-629).
1957	1957	7 (41) Tangible personal property sold to a
1958	1958	8 public-facilities corporation, as described in Section
1959	1959	9 11-65-10 of the Illinois Municipal Code, for purposes of
1960	1960	10 constructing or furnishing a municipal convention hall,
1961	1961	11 but only if the legal title to the municipal convention
1962	1962	12 hall is transferred to the municipality without any
1963	1963	13 further consideration by or on behalf of the municipality
1964	1964	14 at the time of the completion of the municipal convention
1965	1965	15 hall or upon the retirement or redemption of any bonds or
1966	1966	16 other debt instruments issued by the public-facilities
1967	1967	17 corporation in connection with the development of the
1968	1968	18 municipal convention hall. This exemption includes
1969	1969	19 existing public-facilities corporations as provided in
1970	1970	20 Section 11-65-25 of the Illinois Municipal Code. This
1971	1971	21 paragraph is exempt from the provisions of Section 2-70.
1972	1972	22 (42) Beginning January 1, 2017 and through December
1973	1973	23 31, 2026, menstrual pads, tampons, and menstrual cups.
1974	1974	24 (43) Merchandise that is subject to the Rental
1975	1975	25 Purchase Agreement Occupation and Use Tax. The purchaser
1976	1976	26 must certify that the item is purchased to be rented
1977	1977
1978	1978
1979	1979
1980	1980
1981	1981
1982	1982	SB2027 - 54 - LRB104 03451 HLH 13474 b
1983	1983
1984	1984
1985	1985	SB2027- 55 -LRB104 03451 HLH 13474 b SB2027 - 55 - LRB104 03451 HLH 13474 b
1986	1986	SB2027 - 55 - LRB104 03451 HLH 13474 b
1987	1987	1 subject to a rental-purchase agreement, as defined in the
1988	1988	2 Rental-Purchase Agreement Act, and provide proof of
1989	1989	3 registration under the Rental Purchase Agreement
1990	1990	4 Occupation and Use Tax Act. This paragraph is exempt from
1991	1991	5 the provisions of Section 2-70.
1992	1992	6 (44) Qualified tangible personal property used in the
1993	1993	7 construction or operation of a data center that has been
1994	1994	8 granted a certificate of exemption by the Department of
1995	1995	9 Commerce and Economic Opportunity, whether that tangible
1996	1996	10 personal property is purchased by the owner, operator, or
1997	1997	11 tenant of the data center or by a contractor or
1998	1998	12 subcontractor of the owner, operator, or tenant. Data
1999	1999	13 centers that would have qualified for a certificate of
2000	2000	14 exemption prior to January 1, 2020 had Public Act 101-31
2001	2001	15 been in effect, may apply for and obtain an exemption for
2002	2002	16 subsequent purchases of computer equipment or enabling
2003	2003	17 software purchased or leased to upgrade, supplement, or
2004	2004	18 replace computer equipment or enabling software purchased
2005	2005	19 or leased in the original investment that would have
2006	2006	20 qualified.
2007	2007	21 The Department of Commerce and Economic Opportunity
2008	2008	22 shall grant a certificate of exemption under this item
2009	2009	23 (44) to qualified data centers as defined by Section
2010	2010	24 605-1025 of the Department of Commerce and Economic
2011	2011	25 Opportunity Law of the Civil Administrative Code of
2012	2012	26 Illinois.
2013	2013
2014	2014
2015	2015
2016	2016
2017	2017
2018	2018	SB2027 - 55 - LRB104 03451 HLH 13474 b
2019	2019
2020	2020
2021	2021	SB2027- 56 -LRB104 03451 HLH 13474 b SB2027 - 56 - LRB104 03451 HLH 13474 b
2022	2022	SB2027 - 56 - LRB104 03451 HLH 13474 b
2023	2023	1 For the purposes of this item (44):
2024	2024	2 "Data center" means a building or a series of
2025	2025	3 buildings rehabilitated or constructed to house
2026	2026	4 working servers in one physical location or multiple
2027	2027	5 sites within the State of Illinois.
2028	2028	6 "Qualified tangible personal property" means:
2029	2029	7 electrical systems and equipment; climate control and
2030	2030	8 chilling equipment and systems; mechanical systems and
2031	2031	9 equipment; monitoring and secure systems; emergency
2032	2032	10 generators; hardware; computers; servers; data storage
2033	2033	11 devices; network connectivity equipment; racks;
2034	2034	12 cabinets; telecommunications cabling infrastructure;
2035	2035	13 raised floor systems; peripheral components or
2036	2036	14 systems; software; mechanical, electrical, or plumbing
2037	2037	15 systems; battery systems; cooling systems and towers;
2038	2038	16 temperature control systems; other cabling; and other
2039	2039	17 data center infrastructure equipment and systems
2040	2040	18 necessary to operate qualified tangible personal
2041	2041	19 property, including fixtures; and component parts of
2042	2042	20 any of the foregoing, including installation,
2043	2043	21 maintenance, repair, refurbishment, and replacement of
2044	2044	22 qualified tangible personal property to generate,
2045	2045	23 transform, transmit, distribute, or manage electricity
2046	2046	24 necessary to operate qualified tangible personal
2047	2047	25 property; and all other tangible personal property
2048	2048	26 that is essential to the operations of a computer data
2049	2049
2050	2050
2051	2051
2052	2052
2053	2053
2054	2054	SB2027 - 56 - LRB104 03451 HLH 13474 b
2055	2055
2056	2056
2057	2057	SB2027- 57 -LRB104 03451 HLH 13474 b SB2027 - 57 - LRB104 03451 HLH 13474 b
2058	2058	SB2027 - 57 - LRB104 03451 HLH 13474 b
2059	2059	1 center. The term "qualified tangible personal
2060	2060	2 property" also includes building materials physically
2061	2061	3 incorporated into the qualifying data center. To
2062	2062	4 document the exemption allowed under this Section, the
2063	2063	5 retailer must obtain from the purchaser a copy of the
2064	2064	6 certificate of eligibility issued by the Department of
2065	2065	7 Commerce and Economic Opportunity.
2066	2066	8 This item (44) is exempt from the provisions of
2067	2067	9 Section 2-70.
2068	2068	10 (45) Beginning January 1, 2020 and through December
2069	2069	11 31, 2020, sales of tangible personal property made by a
2070	2070	12 marketplace seller over a marketplace for which tax is due
2071	2071	13 under this Act but for which use tax has been collected and
2072	2072	14 remitted to the Department by a marketplace facilitator
2073	2073	15 under Section 2d of the Use Tax Act are exempt from tax
2074	2074	16 under this Act. A marketplace seller claiming this
2075	2075	17 exemption shall maintain books and records demonstrating
2076	2076	18 that the use tax on such sales has been collected and
2077	2077	19 remitted by a marketplace facilitator. Marketplace sellers
2078	2078	20 that have properly remitted tax under this Act on such
2079	2079	21 sales may file a claim for credit as provided in Section 6
2080	2080	22 of this Act. No claim is allowed, however, for such taxes
2081	2081	23 for which a credit or refund has been issued to the
2082	2082	24 marketplace facilitator under the Use Tax Act, or for
2083	2083	25 which the marketplace facilitator has filed a claim for
2084	2084	26 credit or refund under the Use Tax Act.
2085	2085
2086	2086
2087	2087
2088	2088
2089	2089
2090	2090	SB2027 - 57 - LRB104 03451 HLH 13474 b
2091	2091
2092	2092
2093	2093	SB2027- 58 -LRB104 03451 HLH 13474 b SB2027 - 58 - LRB104 03451 HLH 13474 b
2094	2094	SB2027 - 58 - LRB104 03451 HLH 13474 b
2095	2095	1 (46) Beginning July 1, 2022, breast pumps, breast pump
2096	2096	2 collection and storage supplies, and breast pump kits.
2097	2097	3 This item (46) is exempt from the provisions of Section
2098	2098	4 2-70. As used in this item (46):
2099	2099	5 "Breast pump" means an electrically controlled or
2100	2100	6 manually controlled pump device designed or marketed to be
2101	2101	7 used to express milk from a human breast during lactation,
2102	2102	8 including the pump device and any battery, AC adapter, or
2103	2103	9 other power supply unit that is used to power the pump
2104	2104	10 device and is packaged and sold with the pump device at the
2105	2105	11 time of sale.
2106	2106	12 "Breast pump collection and storage supplies" means
2107	2107	13 items of tangible personal property designed or marketed
2108	2108	14 to be used in conjunction with a breast pump to collect
2109	2109	15 milk expressed from a human breast and to store collected
2110	2110	16 milk until it is ready for consumption.
2111	2111	17 "Breast pump collection and storage supplies"
2112	2112	18 includes, but is not limited to: breast shields and breast
2113	2113	19 shield connectors; breast pump tubes and tubing adapters;
2114	2114	20 breast pump valves and membranes; backflow protectors and
2115	2115	21 backflow protector adaptors; bottles and bottle caps
2116	2116	22 specific to the operation of the breast pump; and breast
2117	2117	23 milk storage bags.
2118	2118	24 "Breast pump collection and storage supplies" does not
2119	2119	25 include: (1) bottles and bottle caps not specific to the
2120	2120	26 operation of the breast pump; (2) breast pump travel bags
2121	2121
2122	2122
2123	2123
2124	2124
2125	2125
2126	2126	SB2027 - 58 - LRB104 03451 HLH 13474 b
2127	2127
2128	2128
2129	2129	SB2027- 59 -LRB104 03451 HLH 13474 b SB2027 - 59 - LRB104 03451 HLH 13474 b
2130	2130	SB2027 - 59 - LRB104 03451 HLH 13474 b
2131	2131	1 and other similar carrying accessories, including ice
2132	2132	2 packs, labels, and other similar products; (3) breast pump
2133	2133	3 cleaning supplies; (4) nursing bras, bra pads, breast
2134	2134	4 shells, and other similar products; and (5) creams,
2135	2135	5 ointments, and other similar products that relieve
2136	2136	6 breastfeeding-related symptoms or conditions of the
2137	2137	7 breasts or nipples, unless sold as part of a breast pump
2138	2138	8 kit that is pre-packaged by the breast pump manufacturer
2139	2139	9 or distributor.
2140	2140	10 "Breast pump kit" means a kit that: (1) contains no
2141	2141	11 more than a breast pump, breast pump collection and
2142	2142	12 storage supplies, a rechargeable battery for operating the
2143	2143	13 breast pump, a breastmilk cooler, bottle stands, ice
2144	2144	14 packs, and a breast pump carrying case; and (2) is
2145	2145	15 pre-packaged as a breast pump kit by the breast pump
2146	2146	16 manufacturer or distributor.
2147	2147	17 (47) Tangible personal property sold by or on behalf
2148	2148	18 of the State Treasurer pursuant to the Revised Uniform
2149	2149	19 Unclaimed Property Act. This item (47) is exempt from the
2150	2150	20 provisions of Section 2-70.
2151	2151	21 (48) Beginning on January 1, 2024, tangible personal
2152	2152	22 property purchased by an active duty member of the armed
2153	2153	23 forces of the United States who presents valid military
2154	2154	24 identification and purchases the property using a form of
2155	2155	25 payment where the federal government is the payor. The
2156	2156	26 member of the armed forces must complete, at the point of
2157	2157
2158	2158
2159	2159
2160	2160
2161	2161
2162	2162	SB2027 - 59 - LRB104 03451 HLH 13474 b
2163	2163
2164	2164
2165	2165	SB2027- 60 -LRB104 03451 HLH 13474 b SB2027 - 60 - LRB104 03451 HLH 13474 b
2166	2166	SB2027 - 60 - LRB104 03451 HLH 13474 b
2167	2167	1 sale, a form prescribed by the Department of Revenue
2168	2168	2 documenting that the transaction is eligible for the
2169	2169	3 exemption under this paragraph. Retailers must keep the
2170	2170	4 form as documentation of the exemption in their records
2171	2171	5 for a period of not less than 6 years. "Armed forces of the
2172	2172	6 United States" means the United States Army, Navy, Air
2173	2173	7 Force, Space Force, Marine Corps, or Coast Guard. This
2174	2174	8 paragraph is exempt from the provisions of Section 2-70.
2175	2175	9 (49) Beginning July 1, 2024, home-delivered meals
2176	2176	10 provided to Medicare or Medicaid recipients when payment
2177	2177	11 is made by an intermediary, such as a Medicare
2178	2178	12 Administrative Contractor, a Managed Care Organization, or
2179	2179	13 a Medicare Advantage Organization, pursuant to a
2180	2180	14 government contract. This paragraph (49) is exempt from
2181	2181	15 the provisions of Section 2-70.
2182	2182	16 (50) (49) Beginning on January 1, 2026, as further
2183	2183	17 defined in Section 2-10, food for human consumption that
2184	2184	18 is to be consumed off the premises where it is sold (other
2185	2185	19 than alcoholic beverages, food consisting of or infused
2186	2186	20 with adult use cannabis, soft drinks, candy, and food that
2187	2187	21 has been prepared for immediate consumption). This item
2188	2188	22 (50) (49) is exempt from the provisions of Section 2-70.
2189	2189	23 (51) (49) Gross receipts from the lease of the
2190	2190	24 following tangible personal property:
2191	2191	25 (1) computer software transferred subject to a
2192	2192	26 license that meets the following requirements:
2193	2193
2194	2194
2195	2195
2196	2196
2197	2197
2198	2198	SB2027 - 60 - LRB104 03451 HLH 13474 b
2199	2199
2200	2200
2201	2201	SB2027- 61 -LRB104 03451 HLH 13474 b SB2027 - 61 - LRB104 03451 HLH 13474 b
2202	2202	SB2027 - 61 - LRB104 03451 HLH 13474 b
2203	2203	1 (A) it is evidenced by a written agreement
2204	2204	2 signed by the licensor and the customer;
2205	2205	3 (i) an electronic agreement in which the
2206	2206	4 customer accepts the license by means of an
2207	2207	5 electronic signature that is verifiable and
2208	2208	6 can be authenticated and is attached to or
2209	2209	7 made part of the license will comply with this
2210	2210	8 requirement;
2211	2211	9 (ii) a license agreement in which the
2212	2212	10 customer electronically accepts the terms by
2213	2213	11 clicking "I agree" does not comply with this
2214	2214	12 requirement;
2215	2215	13 (B) it restricts the customer's duplication
2216	2216	14 and use of the software;
2217	2217	15 (C) it prohibits the customer from licensing,
2218	2218	16 sublicensing, or transferring the software to a
2219	2219	17 third party (except to a related party) without
2220	2220	18 the permission and continued control of the
2221	2221	19 licensor;
2222	2222	20 (D) the licensor has a policy of providing
2223	2223	21 another copy at minimal or no charge if the
2224	2224	22 customer loses or damages the software, or of
2225	2225	23 permitting the licensee to make and keep an
2226	2226	24 archival copy, and such policy is either stated in
2227	2227	25 the license agreement, supported by the licensor's
2228	2228	26 books and records, or supported by a notarized
2229	2229
2230	2230
2231	2231
2232	2232
2233	2233
2234	2234	SB2027 - 61 - LRB104 03451 HLH 13474 b
2235	2235
2236	2236
2237	2237	SB2027- 62 -LRB104 03451 HLH 13474 b SB2027 - 62 - LRB104 03451 HLH 13474 b
2238	2238	SB2027 - 62 - LRB104 03451 HLH 13474 b
2239	2239	1 statement made under penalties of perjury by the
2240	2240	2 licensor; and
2241	2241	3 (E) the customer must destroy or return all
2242	2242	4 copies of the software to the licensor at the end
2243	2243	5 of the license period; this provision is deemed to
2244	2244	6 be met, in the case of a perpetual license,
2245	2245	7 without being set forth in the license agreement;
2246	2246	8 and
2247	2247	9 (2) property that is subject to a tax on lease
2248	2248	10 receipts imposed by a home rule unit of local
2249	2249	11 government if the ordinance imposing that tax was
2250	2250	12 adopted prior to January 1, 2023.
2251	2251	13 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
2252	2252	14 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
2253	2253	15 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
2254	2254	16 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
2255	2255	17 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
2256	2256	18 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; 103-592,
2257	2257	19 eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff. 7-1-24;
2258	2258	20 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995, eff.
2259	2259	21 8-9-24; revised 11-26-24.)
2260	2260	22 (35 ILCS 120/2-51)
2261	2261	23 Sec. 2-51. Motor vehicles; trailers; use as rolling stock
2262	2262	24 definition.
2263	2263	25 (a) (Blank).
2264	2264
2265	2265
2266	2266
2267	2267
2268	2268
2269	2269	SB2027 - 62 - LRB104 03451 HLH 13474 b
2270	2270
2271	2271
2272	2272	SB2027- 63 -LRB104 03451 HLH 13474 b SB2027 - 63 - LRB104 03451 HLH 13474 b
2273	2273	SB2027 - 63 - LRB104 03451 HLH 13474 b
2274	2274	1 (b) (Blank).
2275	2275	2 (c) This subsection (c) applies to motor vehicles, other
2276	2276	3 than limousines, purchased through June 30, 2017. For motor
2277	2277	4 vehicles, other than limousines, purchased on or after July 1,
2278	2278	5 2017, subsection (d-5) applies. This subsection (c) applies to
2279	2279	6 limousines purchased before, on, or after July 1, 2017. "Use
2280	2280	7 as rolling stock moving in interstate commerce" in paragraph
2281	2281	8 (13) of Section 2-5 occurs for motor vehicles, as defined in
2282	2282	9 Section 1-146 of the Illinois Vehicle Code, when during a
2283	2283	10 12-month period the rolling stock has carried persons or
2284	2284	11 property for hire in interstate commerce for greater than 50%
2285	2285	12 of its total trips for that period or for greater than 50% of
2286	2286	13 its total miles for that period. The person claiming the
2287	2287	14 exemption shall make an election at the time of purchase to use
2288	2288	15 either the trips or mileage method. Persons who purchased
2289	2289	16 motor vehicles prior to July 1, 2004 shall make an election to
2290	2290	17 use either the trips or mileage method and document that
2291	2291	18 election in their books and records. If no election is made
2292	2292	19 under this subsection to use the trips or mileage method, the
2293	2293	20 person shall be deemed to have chosen the mileage method.
2294	2294	21 For purposes of determining qualifying trips or miles,
2295	2295	22 motor vehicles that carry persons or property for hire, even
2296	2296	23 just between points in Illinois, will be considered used for
2297	2297	24 hire in interstate commerce if the motor vehicle transports
2298	2298	25 persons whose journeys or property whose shipments originate
2299	2299	26 or terminate outside Illinois. The exemption for motor
2300	2300
2301	2301
2302	2302
2303	2303
2304	2304
2305	2305	SB2027 - 63 - LRB104 03451 HLH 13474 b
2306	2306
2307	2307
2308	2308	SB2027- 64 -LRB104 03451 HLH 13474 b SB2027 - 64 - LRB104 03451 HLH 13474 b
2309	2309	SB2027 - 64 - LRB104 03451 HLH 13474 b
2310	2310	1 vehicles used as rolling stock moving in interstate commerce
2311	2311	2 may be claimed only for the following vehicles: (i) motor
2312	2312	3 vehicles whose gross vehicle weight rating exceeds 16,000
2313	2313	4 pounds; and (ii) limousines, as defined in Section 1-139.1 of
2314	2314	5 the Illinois Vehicle Code. On and after July 1, 2025, the
2315	2315	6 exemption for limousines applies only to limousines that are
2316	2316	7 not subject to the provisions of the Transportation Network
2317	2317	8 Providers Act. Through June 30, 2017, this definition applies
2318	2318	9 to all property purchased for the purpose of being attached to
2319	2319	10 those motor vehicles as a part thereof. On and after July 1,
2320	2320	11 2017, this definition applies to property purchased for the
2321	2321	12 purpose of being attached to limousines as a part thereof. For
2322	2322	13 property that is purchased on or after July 1, 2025 for the
2323	2323	14 purpose of being attached to a limousines as a part thereof,
2324	2324	15 this definition applies only if the limousine is not subject
2325	2325	16 to the provisions of the Transportation Network Providers Act.
2326	2326	17 (d) For purchases made through June 30, 2017, "use as
2327	2327	18 rolling stock moving in interstate commerce" in paragraph (13)
2328	2328	19 of Section 2-5 occurs for trailers, as defined in Section
2329	2329	20 1-209 of the Illinois Vehicle Code, semitrailers as defined in
2330	2330	21 Section 1-187 of the Illinois Vehicle Code, and pole trailers
2331	2331	22 as defined in Section 1-161 of the Illinois Vehicle Code, when
2332	2332	23 during a 12-month period the rolling stock has carried persons
2333	2333	24 or property for hire in interstate commerce for greater than
2334	2334	25 50% of its total trips for that period or for greater than 50%
2335	2335	26 of its total miles for that period. The person claiming the
2336	2336
2337	2337
2338	2338
2339	2339
2340	2340
2341	2341	SB2027 - 64 - LRB104 03451 HLH 13474 b
2342	2342
2343	2343
2344	2344	SB2027- 65 -LRB104 03451 HLH 13474 b SB2027 - 65 - LRB104 03451 HLH 13474 b
2345	2345	SB2027 - 65 - LRB104 03451 HLH 13474 b
2346	2346	1 exemption for a trailer or trailers that will not be dedicated
2347	2347	2 to a motor vehicle or group of motor vehicles shall make an
2348	2348	3 election at the time of purchase to use either the trips or
2349	2349	4 mileage method. Persons who purchased trailers prior to July
2350	2350	5 1, 2004 that are not dedicated to a motor vehicle or group of
2351	2351	6 motor vehicles shall make an election to use either the trips
2352	2352	7 or mileage method and document that election in their books
2353	2353	8 and records. If no election is made under this subsection to
2354	2354	9 use the trips or mileage method, the person shall be deemed to
2355	2355	10 have chosen the mileage method.
2356	2356	11 For purposes of determining qualifying trips or miles,
2357	2357	12 trailers, semitrailers, or pole trailers that carry property
2358	2358	13 for hire, even just between points in Illinois, will be
2359	2359	14 considered used for hire in interstate commerce if the
2360	2360	15 trailers, semitrailers, or pole trailers transport property
2361	2361	16 whose shipments originate or terminate outside Illinois. This
2362	2362	17 definition applies to all property purchased for the purpose
2363	2363	18 of being attached to those trailers, semitrailers, or pole
2364	2364	19 trailers as a part thereof. In lieu of a person providing
2365	2365	20 documentation regarding the qualifying use of each individual
2366	2366	21 trailer, semitrailer, or pole trailer, that person may
2367	2367	22 document such qualifying use by providing documentation of the
2368	2368	23 following:
2369	2369	24 (1) If a trailer, semitrailer, or pole trailer is
2370	2370	25 dedicated to a motor vehicle that qualifies as rolling
2371	2371	26 stock moving in interstate commerce under subsection (c)
2372	2372
2373	2373
2374	2374
2375	2375
2376	2376
2377	2377	SB2027 - 65 - LRB104 03451 HLH 13474 b
2378	2378
2379	2379
2380	2380	SB2027- 66 -LRB104 03451 HLH 13474 b SB2027 - 66 - LRB104 03451 HLH 13474 b
2381	2381	SB2027 - 66 - LRB104 03451 HLH 13474 b
2382	2382	1 of this Section, then that trailer, semitrailer, or pole
2383	2383	2 trailer qualifies as rolling stock moving in interstate
2384	2384	3 commerce under this subsection.
2385	2385	4 (2) If a trailer, semitrailer, or pole trailer is
2386	2386	5 dedicated to a group of motor vehicles that all qualify as
2387	2387	6 rolling stock moving in interstate commerce under
2388	2388	7 subsection (c) of this Section, then that trailer,
2389	2389	8 semitrailer, or pole trailer qualifies as rolling stock
2390	2390	9 moving in interstate commerce under this subsection.
2391	2391	10 (3) If one or more trailers, semitrailers, or pole
2392	2392	11 trailers are dedicated to a group of motor vehicles and
2393	2393	12 not all of those motor vehicles in that group qualify as
2394	2394	13 rolling stock moving in interstate commerce under
2395	2395	14 subsection (c) of this Section, then the percentage of
2396	2396	15 those trailers, semitrailers, or pole trailers that
2397	2397	16 qualifies as rolling stock moving in interstate commerce
2398	2398	17 under this subsection is equal to the percentage of those
2399	2399	18 motor vehicles in that group that qualify as rolling stock
2400	2400	19 moving in interstate commerce under subsection (c) of this
2401	2401	20 Section to which those trailers, semitrailers, or pole
2402	2402	21 trailers are dedicated. However, to determine the
2403	2403	22 qualification for the exemption provided under this item
2404	2404	23 (3), the mathematical application of the qualifying
2405	2405	24 percentage to one or more trailers, semitrailers, or pole
2406	2406	25 trailers under this subpart shall not be allowed as to any
2407	2407	26 fraction of a trailer, semitrailer, or pole trailer.
2408	2408
2409	2409
2410	2410
2411	2411
2412	2412
2413	2413	SB2027 - 66 - LRB104 03451 HLH 13474 b
2414	2414
2415	2415
2416	2416	SB2027- 67 -LRB104 03451 HLH 13474 b SB2027 - 67 - LRB104 03451 HLH 13474 b
2417	2417	SB2027 - 67 - LRB104 03451 HLH 13474 b
2418	2418	1 (d-5) For motor vehicles and trailers purchased on or
2419	2419	2 after July 1, 2017, "use as rolling stock moving in interstate
2420	2420	3 commerce" means that:
2421	2421	4 (1) the motor vehicle or trailer is used to transport
2422	2422	5 persons or property for hire;
2423	2423	6 (2) for purposes of the exemption under paragraph (13)
2424	2424	7 of Section 2-5, the purchaser who is an owner, lessor, or
2425	2425	8 shipper claiming the exemption certifies that the motor
2426	2426	9 vehicle or trailer will be utilized, from the time of
2427	2427	10 purchase and continuing through the statute of limitations
2428	2428	11 for issuing a notice of tax liability under this Act, by an
2429	2429	12 interstate carrier or carriers for hire who hold, and are
2430	2430	13 required by Federal Motor Carrier Safety Administration
2431	2431	14 regulations to hold, an active USDOT Number with the
2432	2432	15 Carrier Operation listed as "Interstate" and the Operation
2433	2433	16 Classification listed as "authorized for hire", "exempt
2434	2434	17 for hire", or both "authorized for hire" and "exempt for
2435	2435	18 hire"; except that this paragraph (2) does not apply to a
2436	2436	19 motor vehicle or trailer used at an airport to support the
2437	2437	20 operation of an aircraft moving in interstate commerce, as
2438	2438	21 long as (i) in the case of a motor vehicle, the motor
2439	2439	22 vehicle meets paragraphs (1) and (3) of this subsection
2440	2440	23 (d-5) or (ii) in the case of a trailer, the trailer meets
2441	2441	24 paragraph (1) of this subsection (d-5); and
2442	2442	25 (3) for motor vehicles, the gross vehicle weight
2443	2443	26 rating exceeds 16,000 pounds.
2444	2444
2445	2445
2446	2446
2447	2447
2448	2448
2449	2449	SB2027 - 67 - LRB104 03451 HLH 13474 b
2450	2450
2451	2451
2452	2452	SB2027- 68 -LRB104 03451 HLH 13474 b SB2027 - 68 - LRB104 03451 HLH 13474 b
2453	2453	SB2027 - 68 - LRB104 03451 HLH 13474 b
2454	2454	1 The definition of "use as rolling stock moving in
2455	2455	2 interstate commerce" in this subsection (d-5) applies to all
2456	2456	3 property purchased on or after July 1, 2017 for the purpose of
2457	2457	4 being attached to a motor vehicle or trailer as a part thereof,
2458	2458	5 regardless of whether the motor vehicle or trailer was
2459	2459	6 purchased before, on, or after July 1, 2017.
2460	2460	7 If an item ceases to meet requirements (1) through (3)
2461	2461	8 under this subsection (d-5), then the tax is imposed on the
2462	2462	9 selling price, allowing for a reasonable depreciation for the
2463	2463	10 period during which the item qualified for the exemption.
2464	2464	11 For purposes of this subsection (d-5):
2465	2465	12 "Motor vehicle" excludes limousines, but otherwise
2466	2466	13 means that term as defined in Section 1-146 of the
2467	2467	14 Illinois Vehicle Code.
2468	2468	15 "Trailer" means (i) "trailer", as defined in Section
2469	2469	16 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
2470	2470	17 defined in Section 1-187 of the Illinois Vehicle Code, and
2471	2471	18 (iii) "pole trailer", as defined in Section 1-161 of the
2472	2472	19 Illinois Vehicle Code.
2473	2473	20 (e) For aircraft and watercraft purchased on or after
2474	2474	21 January 1, 2014, "use as rolling stock moving in interstate
2475	2475	22 commerce" in paragraph (13) of Section 2-5 occurs when, during
2476	2476	23 a 12-month period, the rolling stock has carried persons or
2477	2477	24 property for hire in interstate commerce for greater than 50%
2478	2478	25 of its total trips for that period or for greater than 50% of
2479	2479	26 its total miles for that period. The person claiming the
2480	2480
2481	2481
2482	2482
2483	2483
2484	2484
2485	2485	SB2027 - 68 - LRB104 03451 HLH 13474 b
2486	2486
2487	2487
2488	2488	SB2027- 69 -LRB104 03451 HLH 13474 b SB2027 - 69 - LRB104 03451 HLH 13474 b
2489	2489	SB2027 - 69 - LRB104 03451 HLH 13474 b
2490	2490	1 exemption shall make an election at the time of purchase to use
2491	2491	2 either the trips or mileage method and document that election
2492	2492	3 in their books and records. If no election is made under this
2493	2493	4 subsection to use the trips or mileage method, the person
2494	2494	5 shall be deemed to have chosen the mileage method. For
2495	2495	6 aircraft, flight hours may be used in lieu of recording miles
2496	2496	7 in determining whether the aircraft meets the mileage test in
2497	2497	8 this subsection. For watercraft, nautical miles or trip hours
2498	2498	9 may be used in lieu of recording miles in determining whether
2499	2499	10 the watercraft meets the mileage test in this subsection.
2500	2500	11 Notwithstanding any other provision of law to the
2501	2501	12 contrary, property purchased on or after January 1, 2014 for
2502	2502	13 the purpose of being attached to aircraft or watercraft as a
2503	2503	14 part thereof qualifies as rolling stock moving in interstate
2504	2504	15 commerce only if the aircraft or watercraft to which it will be
2505	2505	16 attached qualifies as rolling stock moving in interstate
2506	2506	17 commerce under the test set forth in this subsection (e),
2507	2507	18 regardless of when the aircraft or watercraft was purchased.
2508	2508	19 Persons who purchased aircraft or watercraft prior to January
2509	2509	20 1, 2014 shall make an election to use either the trips or
2510	2510	21 mileage method and document that election in their books and
2511	2511	22 records for the purpose of determining whether property
2512	2512	23 purchased on or after January 1, 2014 for the purpose of being
2513	2513	24 attached to aircraft or watercraft as a part thereof qualifies
2514	2514	25 as rolling stock moving in interstate commerce under this
2515	2515	26 subsection (e).
2516	2516
2517	2517
2518	2518
2519	2519
2520	2520
2521	2521	SB2027 - 69 - LRB104 03451 HLH 13474 b
2522	2522
2523	2523
2524	2524	SB2027- 70 -LRB104 03451 HLH 13474 b SB2027 - 70 - LRB104 03451 HLH 13474 b
2525	2525	SB2027 - 70 - LRB104 03451 HLH 13474 b
2526	2526	1 (f) The election to use either the trips or mileage method
2527	2527	2 made under the provisions of subsections (c), (d), or (e) of
2528	2528	3 this Section will remain in effect for the duration of the
2529	2529	4 purchaser's ownership of that item.
2530	2530	5 (Source: P.A. 100-321, eff. 8-24-17.)
2531	2531	6 Section 25. The Illinois Vehicle Code is amended by
2532	2532	7 changing Section 3-1001 as follows:
2533	2533	8 (625 ILCS 5/3-1001) (from Ch. 95 1/2, par. 3-1001)
2534	2534	9 Sec. 3-1001. A tax is hereby imposed on the privilege of
2535	2535	10 using, in this State, any motor vehicle as defined in Section
2536	2536	11 1-146 of this Code acquired by gift, transfer, or purchase,
2537	2537	12 and having a year model designation preceding the year of
2538	2538	13 application for title by 5 or fewer years prior to October 1,
2539	2539	14 1985 and 10 or fewer years on and after October 1, 1985 and
2540	2540	15 prior to January 1, 1988. On and after January 1, 1988, the tax
2541	2541	16 shall apply to all motor vehicles without regard to model
2542	2542	17 year. Except that the tax shall not apply:
2543	2543	18 (i) if the use of the motor vehicle is otherwise taxed
2544	2544	19 under the Use Tax Act;
2545	2545	20 (ii) if the motor vehicle is bought and used by a
2546	2546	21 governmental agency or a society, association, foundation
2547	2547	22 or institution organized and operated exclusively for
2548	2548	23 charitable, religious or educational purposes;
2549	2549	24 (iii) if the use of the motor vehicle is not subject to
2550	2550
2551	2551
2552	2552
2553	2553
2554	2554
2555	2555	SB2027 - 70 - LRB104 03451 HLH 13474 b
2556	2556
2557	2557
2558	2558	SB2027- 71 -LRB104 03451 HLH 13474 b SB2027 - 71 - LRB104 03451 HLH 13474 b
2559	2559	SB2027 - 71 - LRB104 03451 HLH 13474 b
2560	2560	1 the Use Tax Act by reason of subsection (a), (b), (c), (d),
2561	2561	2 (e) or (f) of Section 3-55 of that Act dealing with the
2562	2562	3 prevention of actual or likely multistate taxation;
2563	2563	4 (iv) to implements of husbandry;
2564	2564	5 (v) when a junking certificate is issued pursuant to
2565	2565	6 Section 3-117(a) of this Code;
2566	2566	7 (vi) when a vehicle is subject to the replacement
2567	2567	8 vehicle tax imposed by Section 3-2001 of this Act;
2568	2568	9 (vii) when the transfer is a gift to a beneficiary in
2569	2569	10 the administration of an estate and the beneficiary is a
2570	2570	11 surviving spouse; .
2571	2571	12 (viii) if the motor vehicle is purchased for the
2572	2572	13 purpose of resale by a retailer registered under Section
2573	2573	14 2a of the Retailers' Occupation Tax Act.
2574	2574	15 Prior to January 1, 1988, the rate of tax shall be 5% of
2575	2575	16 the selling price for each purchase of a motor vehicle covered
2576	2576	17 by Section 3-1001 of this Code. Except as hereinafter
2577	2577	18 provided, beginning January 1, 1988 and until January 1, 2022,
2578	2578	19 the rate of tax shall be as follows for transactions in which
2579	2579	20 the selling price of the motor vehicle is less than $15,000:
2580	2580	21Number of Years Transpired AfterApplicable Tax 22Model Year of Motor Vehicle231 or less$390242290253215264165 21 Number of Years Transpired After Applicable Tax 22 Model Year of Motor Vehicle 23 1 or less $390 24 2 290 25 3 215 26 4 165
2581	2581	21 Number of Years Transpired After Applicable Tax
2582	2582	22 Model Year of Motor Vehicle
2583	2583	23 1 or less $390
2584	2584	24 2 290
2585	2585	25 3 215
2586	2586	26 4 165
2587	2587
2588	2588
2589	2589
2590	2590
2591	2591
2592	2592	SB2027 - 71 - LRB104 03451 HLH 13474 b
2593	2593
2594	2594
2595	2595	21 Number of Years Transpired After Applicable Tax
2596	2596	22 Model Year of Motor Vehicle
2597	2597	23 1 or less $390
2598	2598	24 2 290
2599	2599	25 3 215
2600	2600	26 4 165
2601	2601
2602	2602
2603	2603	SB2027- 72 -LRB104 03451 HLH 13474 b SB2027 - 72 - LRB104 03451 HLH 13474 b
2604	2604	SB2027 - 72 - LRB104 03451 HLH 13474 b
2605	2605	151152690378048655950610407over 1025 1 5 115 2 6 90 3 7 80 4 8 65 5 9 50 6 10 40 7 over 10 25
2606	2606	1 5 115
2607	2607	2 6 90
2608	2608	3 7 80
2609	2609	4 8 65
2610	2610	5 9 50
2611	2611	6 10 40
2612	2612	7 over 10 25
2613	2613	8 Except as hereinafter provided, beginning January 1, 1988 and
2614	2614	9 until January 1, 2022, the rate of tax shall be as follows for
2615	2615	10 transactions in which the selling price of the motor vehicle
2616	2616	11 is $15,000 or more:
2617	2617	12Selling PriceApplicable Tax13$15,000 - $19,999$ 75014$20,000 - $24,999$1,00015$25,000 - $29,999$1,25016$30,000 and over$1,500 12 Selling Price Applicable Tax 13 $15,000 - $19,999 $ 750 14 $20,000 - $24,999 $1,000 15 $25,000 - $29,999 $1,250 16 $30,000 and over $1,500
2618	2618	12 Selling Price Applicable Tax
2619	2619	13 $15,000 - $19,999 $ 750
2620	2620	14 $20,000 - $24,999 $1,000
2621	2621	15 $25,000 - $29,999 $1,250
2622	2622	16 $30,000 and over $1,500
2623	2623	17 Except as hereinafter provided, beginning on January 1,
2624	2624	18 2022, the rate of tax shall be as follows for transactions in
2625	2625	19 which the selling price of the motor vehicle is less than
2626	2626	20 $15,000:
2627	2627	21 (1) if one year or less has transpired after the model
2628	2628	22 year of the vehicle, then the applicable tax is $465;
2629	2629	23 (2) if 2 years have transpired after the model year of
2630	2630	24 the motor vehicle, then the applicable tax is $365;
2631	2631	25 (3) if 3 years have transpired after the model year of
2632	2632	26 the motor vehicle, then the applicable tax is $290;
2633	2633
2634	2634
2635	2635
2636	2636
2637	2637
2638	2638	SB2027 - 72 - LRB104 03451 HLH 13474 b
2639	2639
2640	2640	1 5 115
2641	2641	2 6 90
2642	2642	3 7 80
2643	2643	4 8 65
2644	2644	5 9 50
2645	2645	6 10 40
2646	2646	7 over 10 25
2647	2647
2648	2648
2649	2649	12 Selling Price Applicable Tax
2650	2650	13 $15,000 - $19,999 $ 750
2651	2651	14 $20,000 - $24,999 $1,000
2652	2652	15 $25,000 - $29,999 $1,250
2653	2653	16 $30,000 and over $1,500
2654	2654
2655	2655
2656	2656	SB2027- 73 -LRB104 03451 HLH 13474 b SB2027 - 73 - LRB104 03451 HLH 13474 b
2657	2657	SB2027 - 73 - LRB104 03451 HLH 13474 b
2658	2658	1 (4) if 4 years have transpired after the model year of
2659	2659	2 the motor vehicle, then the applicable tax is $240;
2660	2660	3 (5) if 5 years have transpired after the model year of
2661	2661	4 the motor vehicle, then the applicable tax is $190;
2662	2662	5 (6) if 6 years have transpired after the model year of
2663	2663	6 the motor vehicle, then the applicable tax is $165;
2664	2664	7 (7) if 7 years have transpired after the model year of
2665	2665	8 the motor vehicle, then the applicable tax is $155;
2666	2666	9 (8) if 8 years have transpired after the model year of
2667	2667	10 the motor vehicle, then the applicable tax is $140;
2668	2668	11 (9) if 9 years have transpired after the model year of
2669	2669	12 the motor vehicle, then the applicable tax is $125;
2670	2670	13 (10) if 10 years have transpired after the model year
2671	2671	14 of the motor vehicle, then the applicable tax is $115; and
2672	2672	15 (11) if more than 10 years have transpired after the
2673	2673	16 model year of the motor vehicle, then the applicable tax
2674	2674	17 is $100.
2675	2675	18 Except as hereinafter provided, beginning on January 1,
2676	2676	19 2022, the rate of tax shall be as follows for transactions in
2677	2677	20 which the selling price of the motor vehicle is $15,000 or
2678	2678	21 more:
2679	2679	22 (1) if the selling price is $15,000 or more, but less
2680	2680	23 than $20,000, then the applicable tax shall be $850;
2681	2681	24 (2) if the selling price is $20,000 or more, but less
2682	2682	25 than $25,000, then the applicable tax shall be $1,100;
2683	2683	26 (3) if the selling price is $25,000 or more, but less
2684	2684
2685	2685
2686	2686
2687	2687
2688	2688
2689	2689	SB2027 - 73 - LRB104 03451 HLH 13474 b
2690	2690
2691	2691
2692	2692	SB2027- 74 -LRB104 03451 HLH 13474 b SB2027 - 74 - LRB104 03451 HLH 13474 b
2693	2693	SB2027 - 74 - LRB104 03451 HLH 13474 b
2694	2694	1 than $30,000, then the applicable tax shall be $1,350;
2695	2695	2 (4) if the selling price is $30,000 or more, but less
2696	2696	3 than $50,000, then the applicable tax shall be $1,600;
2697	2697	4 (5) if the selling price is $50,000 or more, but less
2698	2698	5 than $100,000, then the applicable tax shall be $2,600;
2699	2699	6 (6) if the selling price is $100,000 or more, but less
2700	2700	7 than $1,000,000, then the applicable tax shall be $5,100;
2701	2701	8 and
2702	2702	9 (7) if the selling price is $1,000,000 or more, then
2703	2703	10 the applicable tax shall be $10,100.
2704	2704	11 For the following transactions, the tax rate shall be $15 for
2705	2705	12 each motor vehicle acquired in such transaction:
2706	2706	13 (i) when the transferee or purchaser is the spouse,
2707	2707	14 mother, father, brother, sister or child of the
2708	2708	15 transferor;
2709	2709	16 (ii) when the transfer is a gift to a beneficiary in
2710	2710	17 the administration of an estate, including, but not
2711	2711	18 limited to, the administration of an inter vivos trust
2712	2712	19 that became irrevocable upon the death of a grantor, and
2713	2713	20 the beneficiary is not a surviving spouse;
2714	2714	21 (iii) when a motor vehicle which has once been
2715	2715	22 subjected to the Illinois retailers' occupation tax or use
2716	2716	23 tax is transferred in connection with the organization,
2717	2717	24 reorganization, dissolution or partial liquidation of an
2718	2718	25 incorporated or unincorporated business wherein the
2719	2719	26 beneficial ownership is not changed.
2720	2720
2721	2721
2722	2722
2723	2723
2724	2724
2725	2725	SB2027 - 74 - LRB104 03451 HLH 13474 b
2726	2726
2727	2727
2728	2728	SB2027- 75 -LRB104 03451 HLH 13474 b SB2027 - 75 - LRB104 03451 HLH 13474 b
2729	2729	SB2027 - 75 - LRB104 03451 HLH 13474 b
2730	2730	1 A claim that the transaction is taxable under subparagraph
2731	2731	2 (i) shall be supported by such proof of family relationship as
2732	2732	3 provided by rules of the Department.
2733	2733	4 For a transaction in which a motorcycle, motor driven
2734	2734	5 cycle or moped is acquired the tax rate shall be $25.
2735	2735	6 On and after October 1, 1985 and until January 1, 2022,
2736	2736	7 1/12 of $5,000,000 of the moneys received by the Department of
2737	2737	8 Revenue pursuant to this Section shall be paid each month into
2738	2738	9 the Build Illinois Fund; on and after January 1, 2022, 1/12 of
2739	2739	10 $40,000,000 of the moneys received by the Department of
2740	2740	11 Revenue pursuant to this Section shall be paid each month into
2741	2741	12 the Build Illinois Fund; and the remainder shall be paid into
2742	2742	13 the General Revenue Fund.
2743	2743	14 The tax imposed by this Section shall be abated and no
2744	2744	15 longer imposed when the amount deposited to secure the bonds
2745	2745	16 issued pursuant to the Build Illinois Bond Act is sufficient
2746	2746	17 to provide for the payment of the principal of, and interest
2747	2747	18 and premium, if any, on the bonds, as certified to the State
2748	2748	19 Comptroller and the Director of Revenue by the Director of the
2749	2749	20 Governor's Office of Management and Budget.
2750	2750	21 (Source: P.A. 102-353, eff. 1-1-22; 102-762, eff. 5-13-22.)
2751	2751
2752	2752
2753	2753
2754	2754
2755	2755
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