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
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
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
LRB104 03451 HLH 13474 b
A BILL FOR
SB2027LRB104 03451 HLH 13474 b SB2027 LRB104 03451 HLH 13474 b
SB2027 LRB104 03451 HLH 13474 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing Sections
5 3-55 and 3-61 as follows:
6 (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
7 Sec. 3-55. Multistate exemption. To prevent actual or
8 likely multistate taxation, the tax imposed by this Act does
9 not apply to the use of tangible personal property in this
10 State under the following circumstances:
11 (a) The use, in this State, of tangible personal property
12 acquired outside this State by a nonresident individual and
13 brought into this State by the individual for his or her own
14 use while temporarily within this State or while passing
15 through this State.
16 (b) (Blank).
17 (c) The use, in this State, by owners or lessors, lessees,
18 or shippers of tangible personal property that is utilized by
19 interstate carriers for hire for use as rolling stock moving
20 in interstate commerce as long as so used by the interstate
21 carriers for hire, and equipment operated by a
22 telecommunications provider, licensed as a common carrier by
23 the Federal Communications Commission, which is permanently
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
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
LRB104 03451 HLH 13474 b
A BILL FOR
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
LRB104 03451 HLH 13474 b
SB2027 LRB104 03451 HLH 13474 b
SB2027- 2 -LRB104 03451 HLH 13474 b SB2027 - 2 - LRB104 03451 HLH 13474 b
SB2027 - 2 - LRB104 03451 HLH 13474 b
1 installed in or affixed to aircraft moving in interstate
2 commerce.
3 (d) The use, in this State, of tangible personal property
4 that is acquired outside this State and caused to be brought
5 into this State by a person who has already paid a tax in
6 another State in respect to the sale, purchase, or use of that
7 property, to the extent of the amount of the tax properly due
8 and paid in the other State.
9 (e) The temporary storage, in this State, of tangible
10 personal property that is acquired outside this State and
11 that, after being brought into this State and stored here
12 temporarily, is used solely outside this State or is
13 physically attached to or incorporated into other tangible
14 personal property that is used solely outside this State, or
15 is altered by converting, fabricating, manufacturing,
16 printing, processing, or shaping, and, as altered, is used
17 solely outside this State.
18 (f) The temporary storage in this State of building
19 materials and fixtures that are acquired either in this State
20 or outside this State by an Illinois registered combination
21 retailer and construction contractor, and that the purchaser
22 thereafter uses outside this State by incorporating that
23 property into real estate located outside this State.
24 (g) The use or purchase of tangible personal property by a
25 common carrier by rail or motor that receives the physical
26 possession of the property in Illinois, and that transports
SB2027 - 2 - LRB104 03451 HLH 13474 b
SB2027- 3 -LRB104 03451 HLH 13474 b SB2027 - 3 - LRB104 03451 HLH 13474 b
SB2027 - 3 - LRB104 03451 HLH 13474 b
1 the property, or shares with another common carrier in the
2 transportation of the property, out of Illinois on a standard
3 uniform bill of lading showing the seller of the property as
4 the shipper or consignor of the property to a destination
5 outside Illinois, for use outside Illinois.
6 (h) Except as provided in subsections subsection (h-1) and
7 (h-1.5), the use, in this State, of a motor vehicle that was
8 sold in this State to a nonresident, even though the motor
9 vehicle is delivered to the nonresident in this State, if the
10 motor vehicle is not to be titled in this State, and if a
11 drive-away permit is issued to the motor vehicle as provided
12 in Section 3-603 of the Illinois Vehicle Code or if the
13 nonresident purchaser has vehicle registration plates to
14 transfer to the motor vehicle upon returning to his or her home
15 state. The issuance of the drive-away permit or having the
16 out-of-state registration plates to be transferred shall be
17 prima facie evidence that the motor vehicle will not be titled
18 in this State.
19 (h-1) The exemption under subsection (h) does not apply if
20 the state in which the motor vehicle will be titled does not
21 allow a reciprocal exemption for the use in that state of a
22 motor vehicle sold and delivered in that state to an Illinois
23 resident but titled in Illinois. The tax collected under this
24 Act on the sale of a motor vehicle in this State to a resident
25 of another state that does not allow a reciprocal exemption
26 shall be imposed at a rate equal to the state's rate of tax on
SB2027 - 3 - LRB104 03451 HLH 13474 b
SB2027- 4 -LRB104 03451 HLH 13474 b SB2027 - 4 - LRB104 03451 HLH 13474 b
SB2027 - 4 - LRB104 03451 HLH 13474 b
1 taxable property in the state in which the purchaser is a
2 resident, except that the tax shall not exceed the tax that
3 would otherwise be imposed under this Act. At the time of the
4 sale, the purchaser shall execute a statement, signed under
5 penalty of perjury, of his or her intent to title the vehicle
6 in the state in which the purchaser is a resident within 30
7 days after the sale and of the fact of the payment to the State
8 of Illinois of tax in an amount equivalent to the state's rate
9 of tax on taxable property in his or her state of residence and
10 shall submit the statement to the appropriate tax collection
11 agency in his or her state of residence. In addition, the
12 retailer must retain a signed copy of the statement in his or
13 her records. Nothing in this subsection shall be construed to
14 require the removal of the vehicle from this state following
15 the filing of an intent to title the vehicle in the purchaser's
16 state of residence if the purchaser titles the vehicle in his
17 or her state of residence within 30 days after the date of
18 sale. The tax collected under this Act in accordance with this
19 subsection (h-1) shall be proportionately distributed as if
20 the tax were collected at the 6.25% general rate imposed under
21 this Act.
22 (h-1.5) There is a rebuttable presumption that the
23 exemption under subsection (h) does not apply if the purchaser
24 is a limited liability company and a member of the limited
25 liability company is a resident of Illinois. This presumption
26 may be rebutted by other evidence, such as evidence the motor
SB2027 - 4 - LRB104 03451 HLH 13474 b
SB2027- 5 -LRB104 03451 HLH 13474 b SB2027 - 5 - LRB104 03451 HLH 13474 b
SB2027 - 5 - LRB104 03451 HLH 13474 b
1 vehicle is insured for primary use at an address outside of
2 Illinois or evidence that the motor vehicle will be stored or
3 garaged at a physical address outside Illinois.
4 (h-2) The following exemptions apply with respect to
5 certain aircraft:
6 (1) Beginning on July 1, 2007, no tax is imposed under
7 this Act on the purchase of an aircraft, as defined in
8 Section 3 of the Illinois Aeronautics Act, if all of the
9 following conditions are met:
10 (A) the aircraft leaves this State within 15 days
11 after the later of either the issuance of the final
12 billing for the purchase of the aircraft or the
13 authorized approval for return to service, completion
14 of the maintenance record entry, and completion of the
15 test flight and ground test for inspection, as
16 required by 14 C.F.R. 91.407;
17 (B) the aircraft is not based or registered in
18 this State after the purchase of the aircraft; and
19 (C) the purchaser provides the Department with a
20 signed and dated certification, on a form prescribed
21 by the Department, certifying that the requirements of
22 this item (1) are met. The certificate must also
23 include the name and address of the purchaser, the
24 address of the location where the aircraft is to be
25 titled or registered, the address of the primary
26 physical location of the aircraft, and other
SB2027 - 5 - LRB104 03451 HLH 13474 b
SB2027- 6 -LRB104 03451 HLH 13474 b SB2027 - 6 - LRB104 03451 HLH 13474 b
SB2027 - 6 - LRB104 03451 HLH 13474 b
1 information that the Department may reasonably
2 require.
3 (2) Beginning on July 1, 2007, no tax is imposed under
4 this Act on the use of an aircraft, as defined in Section 3
5 of the Illinois Aeronautics Act, that is temporarily
6 located in this State for the purpose of a prepurchase
7 evaluation if all of the following conditions are met:
8 (A) the aircraft is not based or registered in
9 this State after the prepurchase evaluation; and
10 (B) the purchaser provides the Department with a
11 signed and dated certification, on a form prescribed
12 by the Department, certifying that the requirements of
13 this item (2) are met. The certificate must also
14 include the name and address of the purchaser, the
15 address of the location where the aircraft is to be
16 titled or registered, the address of the primary
17 physical location of the aircraft, and other
18 information that the Department may reasonably
19 require.
20 (3) Beginning on July 1, 2007, no tax is imposed under
21 this Act on the use of an aircraft, as defined in Section 3
22 of the Illinois Aeronautics Act, that is temporarily
23 located in this State for the purpose of a post-sale
24 customization if all of the following conditions are met:
25 (A) the aircraft leaves this State within 15 days
26 after the authorized approval for return to service,
SB2027 - 6 - LRB104 03451 HLH 13474 b
SB2027- 7 -LRB104 03451 HLH 13474 b SB2027 - 7 - LRB104 03451 HLH 13474 b
SB2027 - 7 - LRB104 03451 HLH 13474 b
1 completion of the maintenance record entry, and
2 completion of the test flight and ground test for
3 inspection, as required by 14 C.F.R. 91.407;
4 (B) the aircraft is not based or registered in
5 this State either before or after the post-sale
6 customization; and
7 (C) the purchaser provides the Department with a
8 signed and dated certification, on a form prescribed
9 by the Department, certifying that the requirements of
10 this item (3) are met. The certificate must also
11 include the name and address of the purchaser, the
12 address of the location where the aircraft is to be
13 titled or registered, the address of the primary
14 physical location of the aircraft, and other
15 information that the Department may reasonably
16 require.
17 If tax becomes due under this subsection (h-2) because of
18 the purchaser's use of the aircraft in this State, the
19 purchaser shall file a return with the Department and pay the
20 tax on the fair market value of the aircraft. This return and
21 payment of the tax must be made no later than 30 days after the
22 aircraft is used in a taxable manner in this State. The tax is
23 based on the fair market value of the aircraft on the date that
24 it is first used in a taxable manner in this State.
25 For purposes of this subsection (h-2):
26 "Based in this State" means hangared, stored, or otherwise
SB2027 - 7 - LRB104 03451 HLH 13474 b
SB2027- 8 -LRB104 03451 HLH 13474 b SB2027 - 8 - LRB104 03451 HLH 13474 b
SB2027 - 8 - LRB104 03451 HLH 13474 b
1 used, excluding post-sale customizations as defined in this
2 Section, for 10 or more days in each 12-month period
3 immediately following the date of the sale of the aircraft.
4 "Post-sale customization" means any improvement,
5 maintenance, or repair that is performed on an aircraft
6 following a transfer of ownership of the aircraft.
7 "Prepurchase evaluation" means an examination of an
8 aircraft to provide a potential purchaser with information
9 relevant to the potential purchase.
10 "Registered in this State" means an aircraft registered
11 with the Department of Transportation, Aeronautics Division,
12 or titled or registered with the Federal Aviation
13 Administration to an address located in this State.
14 This subsection (h-2) is exempt from the provisions of
15 Section 3-90.
16 (i) Beginning July 1, 1999, the use, in this State, of fuel
17 acquired outside this State and brought into this State in the
18 fuel supply tanks of locomotives engaged in freight hauling
19 and passenger service for interstate commerce. This subsection
20 is exempt from the provisions of Section 3-90.
21 (j) Beginning on January 1, 2002 and through June 30,
22 2016, the use of tangible personal property purchased from an
23 Illinois retailer by a taxpayer engaged in centralized
24 purchasing activities in Illinois who will, upon receipt of
25 the property in Illinois, temporarily store the property in
26 Illinois (i) for the purpose of subsequently transporting it
SB2027 - 8 - LRB104 03451 HLH 13474 b
SB2027- 9 -LRB104 03451 HLH 13474 b SB2027 - 9 - LRB104 03451 HLH 13474 b
SB2027 - 9 - LRB104 03451 HLH 13474 b
1 outside this State for use or consumption thereafter solely
2 outside this State or (ii) for the purpose of being processed,
3 fabricated, or manufactured into, attached to, or incorporated
4 into other tangible personal property to be transported
5 outside this State and thereafter used or consumed solely
6 outside this State. The Director of Revenue shall, pursuant to
7 rules adopted in accordance with the Illinois Administrative
8 Procedure Act, issue a permit to any taxpayer in good standing
9 with the Department who is eligible for the exemption under
10 this subsection (j). The permit issued under this subsection
11 (j) shall authorize the holder, to the extent and in the manner
12 specified in the rules adopted under this Act, to purchase
13 tangible personal property from a retailer exempt from the
14 taxes imposed by this Act. Taxpayers shall maintain all
15 necessary books and records to substantiate the use and
16 consumption of all such tangible personal property outside of
17 the State of Illinois.
18 (Source: P.A. 103-592, eff. 1-1-25.)
19 (35 ILCS 105/3-61)
20 Sec. 3-61. Motor vehicles; trailers; use as rolling stock
21 definition.
22 (a) (Blank).
23 (b) (Blank).
24 (c) This subsection (c) applies to motor vehicles, other
25 than limousines, purchased through June 30, 2017. For motor
SB2027 - 9 - LRB104 03451 HLH 13474 b
SB2027- 10 -LRB104 03451 HLH 13474 b SB2027 - 10 - LRB104 03451 HLH 13474 b
SB2027 - 10 - LRB104 03451 HLH 13474 b
1 vehicles, other than limousines, purchased on or after July 1,
2 2017, subsection (d-5) applies. This subsection (c) applies to
3 limousines purchased before, on, or after July 1, 2017. "Use
4 as rolling stock moving in interstate commerce" in paragraph
5 (c) of Section 3-55 occurs for motor vehicles, as defined in
6 Section 1-146 of the Illinois Vehicle Code, when during a
7 12-month period the rolling stock has carried persons or
8 property for hire in interstate commerce for greater than 50%
9 of its total trips for that period or for greater than 50% of
10 its total miles for that period. The person claiming the
11 exemption shall make an election at the time of purchase to use
12 either the trips or mileage method. Persons who purchased
13 motor vehicles prior to July 1, 2004 shall make an election to
14 use either the trips or mileage method and document that
15 election in their books and records. If no election is made
16 under this subsection to use the trips or mileage method, the
17 person shall be deemed to have chosen the mileage method.
18 For purposes of determining qualifying trips or miles,
19 motor vehicles that carry persons or property for hire, even
20 just between points in Illinois, will be considered used for
21 hire in interstate commerce if the motor vehicle transports
22 persons whose journeys or property whose shipments originate
23 or terminate outside Illinois. The exemption for motor
24 vehicles used as rolling stock moving in interstate commerce
25 may be claimed only for the following vehicles: (i) motor
26 vehicles whose gross vehicle weight rating exceeds 16,000
SB2027 - 10 - LRB104 03451 HLH 13474 b
SB2027- 11 -LRB104 03451 HLH 13474 b SB2027 - 11 - LRB104 03451 HLH 13474 b
SB2027 - 11 - LRB104 03451 HLH 13474 b
1 pounds; and (ii) limousines, as defined in Section 1-139.1 of
2 the Illinois Vehicle Code. On and after July 1, 2025, the
3 exemption for limousines applies only to limousines that are
4 not subject to the provisions of the Transportation Network
5 Providers Act. Through June 30, 2017, this definition applies
6 to all property purchased for the purpose of being attached to
7 those motor vehicles as a part thereof. On and after July 1,
8 2017, this definition applies to property purchased for the
9 purpose of being attached to limousines as a part thereof. For
10 property that is purchased on or after July 1, 2025 for the
11 purpose of being attached to a limousines as a part thereof,
12 this definition applies only if the limousine is not subject
13 to the provisions of the Transportation Network Providers Act.
14 (d) For purchases made through June 30, 2017, "use as
15 rolling stock moving in interstate commerce" in paragraph (c)
16 of Section 3-55 occurs for trailers, as defined in Section
17 1-209 of the Illinois Vehicle Code, semitrailers as defined in
18 Section 1-187 of the Illinois Vehicle Code, and pole trailers
19 as defined in Section 1-161 of the Illinois Vehicle Code, when
20 during a 12-month period the rolling stock has carried persons
21 or property for hire in interstate commerce for greater than
22 50% of its total trips for that period or for greater than 50%
23 of its total miles for that period. The person claiming the
24 exemption for a trailer or trailers that will not be dedicated
25 to a motor vehicle or group of motor vehicles shall make an
26 election at the time of purchase to use either the trips or
SB2027 - 11 - LRB104 03451 HLH 13474 b
SB2027- 12 -LRB104 03451 HLH 13474 b SB2027 - 12 - LRB104 03451 HLH 13474 b
SB2027 - 12 - LRB104 03451 HLH 13474 b
1 mileage method. Persons who purchased trailers prior to July
2 1, 2004 that are not dedicated to a motor vehicle or group of
3 motor vehicles shall make an election to use either the trips
4 or mileage method and document that election in their books
5 and records. If no election is made under this subsection to
6 use the trips or mileage method, the person shall be deemed to
7 have chosen the mileage method.
8 For purposes of determining qualifying trips or miles,
9 trailers, semitrailers, or pole trailers that carry property
10 for hire, even just between points in Illinois, will be
11 considered used for hire in interstate commerce if the
12 trailers, semitrailers, or pole trailers transport property
13 whose shipments originate or terminate outside Illinois. This
14 definition applies to all property purchased for the purpose
15 of being attached to those trailers, semitrailers, or pole
16 trailers as a part thereof. In lieu of a person providing
17 documentation regarding the qualifying use of each individual
18 trailer, semitrailer, or pole trailer, that person may
19 document such qualifying use by providing documentation of the
20 following:
21 (1) If a trailer, semitrailer, or pole trailer is
22 dedicated to a motor vehicle that qualifies as rolling
23 stock moving in interstate commerce under subsection (c)
24 of this Section, then that trailer, semitrailer, or pole
25 trailer qualifies as rolling stock moving in interstate
26 commerce under this subsection.
SB2027 - 12 - LRB104 03451 HLH 13474 b
SB2027- 13 -LRB104 03451 HLH 13474 b SB2027 - 13 - LRB104 03451 HLH 13474 b
SB2027 - 13 - LRB104 03451 HLH 13474 b
1 (2) If a trailer, semitrailer, or pole trailer is
2 dedicated to a group of motor vehicles that all qualify as
3 rolling stock moving in interstate commerce under
4 subsection (c) of this Section, then that trailer,
5 semitrailer, or pole trailer qualifies as rolling stock
6 moving in interstate commerce under this subsection.
7 (3) If one or more trailers, semitrailers, or pole
8 trailers are dedicated to a group of motor vehicles and
9 not all of those motor vehicles in that group qualify as
10 rolling stock moving in interstate commerce under
11 subsection (c) of this Section, then the percentage of
12 those trailers, semitrailers, or pole trailers that
13 qualifies as rolling stock moving in interstate commerce
14 under this subsection is equal to the percentage of those
15 motor vehicles in that group that qualify as rolling stock
16 moving in interstate commerce under subsection (c) of this
17 Section to which those trailers, semitrailers, or pole
18 trailers are dedicated. However, to determine the
19 qualification for the exemption provided under this item
20 (3), the mathematical application of the qualifying
21 percentage to one or more trailers, semitrailers, or pole
22 trailers under this subpart shall not be allowed as to any
23 fraction of a trailer, semitrailer, or pole trailer.
24 (d-5) For motor vehicles and trailers purchased on or
25 after July 1, 2017, "use as rolling stock moving in interstate
26 commerce" means that:
SB2027 - 13 - LRB104 03451 HLH 13474 b
SB2027- 14 -LRB104 03451 HLH 13474 b SB2027 - 14 - LRB104 03451 HLH 13474 b
SB2027 - 14 - LRB104 03451 HLH 13474 b
1 (1) the motor vehicle or trailer is used to transport
2 persons or property for hire;
3 (2) for purposes of the exemption under subsection (c)
4 of Section 3-55, the purchaser who is an owner, lessor, or
5 shipper claiming the exemption certifies that the motor
6 vehicle or trailer will be utilized, from the time of
7 purchase and continuing through the statute of limitations
8 for issuing a notice of tax liability under this Act, by an
9 interstate carrier or carriers for hire who hold, and are
10 required by Federal Motor Carrier Safety Administration
11 regulations to hold, an active USDOT Number with the
12 Carrier Operation listed as "Interstate" and the Operation
13 Classification listed as "authorized for hire", "exempt
14 for hire", or both "authorized for hire" and "exempt for
15 hire"; except that this paragraph (2) does not apply to a
16 motor vehicle or trailer used at an airport to support the
17 operation of an aircraft moving in interstate commerce, as
18 long as (i) in the case of a motor vehicle, the motor
19 vehicle meets paragraphs (1) and (3) of this subsection
20 (d-5) or (ii) in the case of a trailer, the trailer meets
21 paragraph (1) of this subsection (d-5); and
22 (3) for motor vehicles, the gross vehicle weight
23 rating exceeds 16,000 pounds.
24 The definition of "use as rolling stock moving in
25 interstate commerce" in this subsection (d-5) applies to all
26 property purchased on or after July 1, 2017 for the purpose of
SB2027 - 14 - LRB104 03451 HLH 13474 b
SB2027- 15 -LRB104 03451 HLH 13474 b SB2027 - 15 - LRB104 03451 HLH 13474 b
SB2027 - 15 - LRB104 03451 HLH 13474 b
1 being attached to a motor vehicle or trailer as a part thereof,
2 regardless of whether the motor vehicle or trailer was
3 purchased before, on, or after July 1, 2017.
4 If an item ceases to meet requirements (1) through (3)
5 under this subsection (d-5), then the tax is imposed on the
6 selling price, allowing for a reasonable depreciation for the
7 period during which the item qualified for the exemption.
8 For purposes of this subsection (d-5):
9 "Motor vehicle" excludes limousines, but otherwise
10 means that term as defined in Section 1-146 of the
11 Illinois Vehicle Code.
12 "Trailer" means (i) "trailer", as defined in Section
13 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
14 defined in Section 1-187 of the Illinois Vehicle Code, and
15 (iii) "pole trailer", as defined in Section 1-161 of the
16 Illinois Vehicle Code.
17 (e) For aircraft and watercraft purchased on or after
18 January 1, 2014, "use as rolling stock moving in interstate
19 commerce" in paragraph (c) of Section 3-55 occurs when, during
20 a 12-month period, the rolling stock has carried persons or
21 property for hire in interstate commerce for greater than 50%
22 of its total trips for that period or for greater than 50% of
23 its total miles for that period. The person claiming the
24 exemption shall make an election at the time of purchase to use
25 either the trips or mileage method and document that election
26 in their books and records. If no election is made under this
SB2027 - 15 - LRB104 03451 HLH 13474 b
SB2027- 16 -LRB104 03451 HLH 13474 b SB2027 - 16 - LRB104 03451 HLH 13474 b
SB2027 - 16 - LRB104 03451 HLH 13474 b
1 subsection to use the trips or mileage method, the person
2 shall be deemed to have chosen the mileage method. For
3 aircraft, flight hours may be used in lieu of recording miles
4 in determining whether the aircraft meets the mileage test in
5 this subsection. For watercraft, nautical miles or trip hours
6 may be used in lieu of recording miles in determining whether
7 the watercraft meets the mileage test in this subsection.
8 Notwithstanding any other provision of law to the
9 contrary, property purchased on or after January 1, 2014 for
10 the purpose of being attached to aircraft or watercraft as a
11 part thereof qualifies as rolling stock moving in interstate
12 commerce only if the aircraft or watercraft to which it will be
13 attached qualifies as rolling stock moving in interstate
14 commerce under the test set forth in this subsection (e),
15 regardless of when the aircraft or watercraft was purchased.
16 Persons who purchased aircraft or watercraft prior to January
17 1, 2014 shall make an election to use either the trips or
18 mileage method and document that election in their books and
19 records for the purpose of determining whether property
20 purchased on or after January 1, 2014 for the purpose of being
21 attached to aircraft or watercraft as a part thereof qualifies
22 as rolling stock moving in interstate commerce under this
23 subsection (e).
24 (f) The election to use either the trips or mileage method
25 made under the provisions of subsections (c), (d), or (e) of
26 this Section will remain in effect for the duration of the
SB2027 - 16 - LRB104 03451 HLH 13474 b
SB2027- 17 -LRB104 03451 HLH 13474 b SB2027 - 17 - LRB104 03451 HLH 13474 b
SB2027 - 17 - LRB104 03451 HLH 13474 b
1 purchaser's ownership of that item.
2 (Source: P.A. 100-321, eff. 8-24-17.)
3 Section 10. The Service Use Tax Act is amended by changing
4 Section 3-51 as follows:
5 (35 ILCS 110/3-51)
6 Sec. 3-51. Motor vehicles; trailers; use as rolling stock
7 definition.
8 (a) (Blank).
9 (b) (Blank).
10 (c) This subsection (c) applies to motor vehicles, other
11 than limousines, purchased through June 30, 2017. For motor
12 vehicles, other than limousines, purchased on or after July 1,
13 2017, subsection (d-5) applies. This subsection (c) applies to
14 limousines purchased before, on, or after July 1, 2017. "Use
15 as rolling stock moving in interstate commerce" in paragraph
16 (4a) of the definition of "sale of service" in Section 2 and
17 subsection (b) of Section 3-45 occurs for motor vehicles, as
18 defined in Section 1-146 of the Illinois Vehicle Code, when
19 during a 12-month period the rolling stock has carried persons
20 or property for hire in interstate commerce for greater than
21 50% of its total trips for that period or for greater than 50%
22 of its total miles for that period. The person claiming the
23 exemption shall make an election at the time of purchase to use
24 either the trips or mileage method. Persons who purchased
SB2027 - 17 - LRB104 03451 HLH 13474 b
SB2027- 18 -LRB104 03451 HLH 13474 b SB2027 - 18 - LRB104 03451 HLH 13474 b
SB2027 - 18 - LRB104 03451 HLH 13474 b
1 motor vehicles prior to July 1, 2004 shall make an election to
2 use either the trips or mileage method and document that
3 election in their books and records. If no election is made
4 under this subsection to use the trips or mileage method, the
5 person shall be deemed to have chosen the mileage method.
6 For purposes of determining qualifying trips or miles,
7 motor vehicles that carry persons or property for hire, even
8 just between points in Illinois, will be considered used for
9 hire in interstate commerce if the motor vehicle transports
10 persons whose journeys or property whose shipments originate
11 or terminate outside Illinois. The exemption for motor
12 vehicles used as rolling stock moving in interstate commerce
13 may be claimed only for the following vehicles: (i) motor
14 vehicles whose gross vehicle weight rating exceeds 16,000
15 pounds; and (ii) limousines, as defined in Section 1-139.1 of
16 the Illinois Vehicle Code. On and after July 1, 2025, the
17 exemption for limousines applies only to limousines that are
18 not subject to the provisions of the Transportation Network
19 Providers Act. Through June 30, 2017, this definition applies
20 to all property purchased for the purpose of being attached to
21 those motor vehicles as a part thereof. On and after July 1,
22 2017, this definition applies to property purchased for the
23 purpose of being attached to limousines as a part thereof.
24 With respect to property that is transferred incident to a
25 sale of service on or after July 1, 2025 for the purpose of
26 being attached to limousines as a part thereof, this
SB2027 - 18 - LRB104 03451 HLH 13474 b
SB2027- 19 -LRB104 03451 HLH 13474 b SB2027 - 19 - LRB104 03451 HLH 13474 b
SB2027 - 19 - LRB104 03451 HLH 13474 b
1 definition applies only if the limousine is not subject to the
2 provisions of the Transportation Network Providers Act.
3 (d) For purchases made through June 30, 2017, "use as
4 rolling stock moving in interstate commerce" in paragraph (4a)
5 of the definition of "sale of service" in Section 2 and
6 subsection (b) of Section 3-45 occurs for trailers, as defined
7 in Section 1-209 of the Illinois Vehicle Code, semitrailers as
8 defined in Section 1-187 of the Illinois Vehicle Code, and
9 pole trailers as defined in Section 1-161 of the Illinois
10 Vehicle Code, when during a 12-month period the rolling stock
11 has carried persons or property for hire in interstate
12 commerce for greater than 50% of its total trips for that
13 period or for greater than 50% of its total miles for that
14 period. The person claiming the exemption for a trailer or
15 trailers that will not be dedicated to a motor vehicle or group
16 of motor vehicles shall make an election at the time of
17 purchase to use either the trips or mileage method. Persons
18 who purchased trailers prior to July 1, 2004 that are not
19 dedicated to a motor vehicle or group of motor vehicles shall
20 make an election to use either the trips or mileage method and
21 document that election in their books and records. If no
22 election is made under this subsection to use the trips or
23 mileage method, the person shall be deemed to have chosen the
24 mileage method.
25 For purposes of determining qualifying trips or miles,
26 trailers, semitrailers, or pole trailers that carry property
SB2027 - 19 - LRB104 03451 HLH 13474 b
SB2027- 20 -LRB104 03451 HLH 13474 b SB2027 - 20 - LRB104 03451 HLH 13474 b
SB2027 - 20 - LRB104 03451 HLH 13474 b
1 for hire, even just between points in Illinois, will be
2 considered used for hire in interstate commerce if the
3 trailers, semitrailers, or pole trailers transport property
4 whose shipments originate or terminate outside Illinois. This
5 definition applies to all property purchased for the purpose
6 of being attached to those trailers, semitrailers, or pole
7 trailers as a part thereof. In lieu of a person providing
8 documentation regarding the qualifying use of each individual
9 trailer, semitrailer, or pole trailer, that person may
10 document such qualifying use by providing documentation of the
11 following:
12 (1) If a trailer, semitrailer, or pole trailer is
13 dedicated to a motor vehicle that qualifies as rolling
14 stock moving in interstate commerce under subsection (c)
15 of this Section, then that trailer, semitrailer, or pole
16 trailer qualifies as rolling stock moving in interstate
17 commerce under this subsection.
18 (2) If a trailer, semitrailer, or pole trailer is
19 dedicated to a group of motor vehicles that all qualify as
20 rolling stock moving in interstate commerce under
21 subsection (c) of this Section, then that trailer,
22 semitrailer, or pole trailer qualifies as rolling stock
23 moving in interstate commerce under this subsection.
24 (3) If one or more trailers, semitrailers, or pole
25 trailers are dedicated to a group of motor vehicles and
26 not all of those motor vehicles in that group qualify as
SB2027 - 20 - LRB104 03451 HLH 13474 b
SB2027- 21 -LRB104 03451 HLH 13474 b SB2027 - 21 - LRB104 03451 HLH 13474 b
SB2027 - 21 - LRB104 03451 HLH 13474 b
1 rolling stock moving in interstate commerce under
2 subsection (c) of this Section, then the percentage of
3 those trailers, semitrailers, or pole trailers that
4 qualifies as rolling stock moving in interstate commerce
5 under this subsection is equal to the percentage of those
6 motor vehicles in that group that qualify as rolling stock
7 moving in interstate commerce under subsection (c) of this
8 Section to which those trailers, semitrailers, or pole
9 trailers are dedicated. However, to determine the
10 qualification for the exemption provided under this item
11 (3), the mathematical application of the qualifying
12 percentage to one or more trailers, semitrailers, or pole
13 trailers under this subpart shall not be allowed as to any
14 fraction of a trailer, semitrailer, or pole trailer.
15 (d-5) For motor vehicles and trailers purchased on or
16 after July 1, 2017, "use as rolling stock moving in interstate
17 commerce" means that:
18 (1) the motor vehicle or trailer is used to transport
19 persons or property for hire;
20 (2) for purposes of the exemption under paragraph (4a)
21 of the definition of "sale of service" in Section 2, the
22 purchaser who is an owner, lessor, or shipper claiming the
23 exemption certifies that the motor vehicle or trailer will
24 be utilized, from the time of purchase and continuing
25 through the statute of limitations for issuing a notice of
26 tax liability under this Act, by an interstate carrier or
SB2027 - 21 - LRB104 03451 HLH 13474 b
SB2027- 22 -LRB104 03451 HLH 13474 b SB2027 - 22 - LRB104 03451 HLH 13474 b
SB2027 - 22 - LRB104 03451 HLH 13474 b
1 carriers for hire who hold, and are required by Federal
2 Motor Carrier Safety Administration regulations to hold,
3 an active USDOT Number with the Carrier Operation listed
4 as "Interstate" and the Operation Classification listed as
5 "authorized for hire", "exempt for hire", or both
6 "authorized for hire" and "exempt for hire"; except that
7 this paragraph (2) does not apply to a motor vehicle or
8 trailer used at an airport to support the operation of an
9 aircraft moving in interstate commerce, as long as (i) in
10 the case of a motor vehicle, the motor vehicle meets
11 paragraphs (1) and (3) of this subsection (d-5) or (ii) in
12 the case of a trailer, the trailer meets paragraph (1) of
13 this subsection (d-5); and
14 (3) for motor vehicles, the gross vehicle weight
15 rating exceeds 16,000 pounds.
16 The definition of "use as rolling stock moving in
17 interstate commerce" in this subsection (d-5) applies to all
18 property purchased on or after July 1, 2017 for the purpose of
19 being attached to a motor vehicle or trailer as a part thereof,
20 regardless of whether the motor vehicle or trailer was
21 purchased before, on, or after July 1, 2017.
22 If an item ceases to meet requirements (1) through (3)
23 under this subsection (d-5), then the tax is imposed on the
24 selling price, allowing for a reasonable depreciation for the
25 period during which the item qualified for the exemption.
26 For purposes of this subsection (d-5):
SB2027 - 22 - LRB104 03451 HLH 13474 b
SB2027- 23 -LRB104 03451 HLH 13474 b SB2027 - 23 - LRB104 03451 HLH 13474 b
SB2027 - 23 - LRB104 03451 HLH 13474 b
1 "Motor vehicle" excludes limousines, but otherwise
2 means that term as defined in Section 1-146 of the
3 Illinois Vehicle Code.
4 "Trailer" means (i) "trailer", as defined in Section
5 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
6 defined in Section 1-187 of the Illinois Vehicle Code, and
7 (iii) "pole trailer", as defined in Section 1-161 of the
8 Illinois Vehicle Code.
9 (e) For aircraft and watercraft purchased on or after
10 January 1, 2014, "use as rolling stock moving in interstate
11 commerce" in (i) paragraph (4a) of the definition of "sale of
12 service" in Section 2 and (ii) subsection (b) of Section 3-45
13 occurs when, during a 12-month period, the rolling stock has
14 carried persons or property for hire in interstate commerce
15 for greater than 50% of its total trips for that period or for
16 greater than 50% of its total miles for that period. The person
17 claiming the exemption shall make an election at the time of
18 purchase to use either the trips or mileage method and
19 document that election in their books and records. If no
20 election is made under this subsection to use the trips or
21 mileage method, the person shall be deemed to have chosen the
22 mileage method. For aircraft, flight hours may be used in lieu
23 of recording miles in determining whether the aircraft meets
24 the mileage test in this subsection. For watercraft, nautical
25 miles or trip hours may be used in lieu of recording miles in
26 determining whether the watercraft meets the mileage test in
SB2027 - 23 - LRB104 03451 HLH 13474 b
SB2027- 24 -LRB104 03451 HLH 13474 b SB2027 - 24 - LRB104 03451 HLH 13474 b
SB2027 - 24 - LRB104 03451 HLH 13474 b
1 this subsection.
2 Notwithstanding any other provision of law to the
3 contrary, property purchased on or after January 1, 2014 for
4 the purpose of being attached to aircraft or watercraft as a
5 part thereof qualifies as rolling stock moving in interstate
6 commerce only if the aircraft or watercraft to which it will be
7 attached qualifies as rolling stock moving in interstate
8 commerce under the test set forth in this subsection (e),
9 regardless of when the aircraft or watercraft was purchased.
10 Persons who purchased aircraft or watercraft prior to January
11 1, 2014 shall make an election to use either the trips or
12 mileage method and document that election in their books and
13 records for the purpose of determining whether property
14 purchased on or after January 1, 2014 for the purpose of being
15 attached to aircraft or watercraft as a part thereof qualifies
16 as rolling stock moving in interstate commerce under this
17 subsection (e).
18 (f) The election to use either the trips or mileage method
19 made under the provisions of subsections (c), (d), or (e) of
20 this Section will remain in effect for the duration of the
21 purchaser's ownership of that item.
22 (Source: P.A. 100-321, eff. 8-24-17.)
23 Section 15. The Service Occupation Tax Act is amended by
24 changing Section 2d as follows:
SB2027 - 24 - LRB104 03451 HLH 13474 b
SB2027- 25 -LRB104 03451 HLH 13474 b SB2027 - 25 - LRB104 03451 HLH 13474 b
SB2027 - 25 - LRB104 03451 HLH 13474 b
1 (35 ILCS 115/2d)
2 Sec. 2d. Motor vehicles; trailers; use as rolling stock
3 definition.
4 (a) (Blank).
5 (b) (Blank).
6 (c) This subsection (c) applies to motor vehicles, other
7 than limousines, purchased through June 30, 2017. For motor
8 vehicles, other than limousines, purchased on or after July 1,
9 2017, subsection (d-5) applies. This subsection (c) applies to
10 limousines purchased before, on, or after July 1, 2017. "Use
11 as rolling stock moving in interstate commerce" in paragraph
12 (d-1) of the definition of "sale of service" in Section 2
13 occurs for motor vehicles, as defined in Section 1-146 of the
14 Illinois Vehicle Code, when during a 12-month period the
15 rolling stock has carried persons or property for hire in
16 interstate commerce for greater than 50% of its total trips
17 for that period or for greater than 50% of its total miles for
18 that period. The person claiming the exemption shall make an
19 election at the time of purchase to use either the trips or
20 mileage method. Persons who purchased motor vehicles prior to
21 July 1, 2004 shall make an election to use either the trips or
22 mileage method and document that election in their books and
23 records. If no election is made under this subsection to use
24 the trips or mileage method, the person shall be deemed to have
25 chosen the mileage method.
26 For purposes of determining qualifying trips or miles,
SB2027 - 25 - LRB104 03451 HLH 13474 b
SB2027- 26 -LRB104 03451 HLH 13474 b SB2027 - 26 - LRB104 03451 HLH 13474 b
SB2027 - 26 - LRB104 03451 HLH 13474 b
1 motor vehicles that carry persons or property for hire, even
2 just between points in Illinois, will be considered used for
3 hire in interstate commerce if the motor vehicle transports
4 persons whose journeys or property whose shipments originate
5 or terminate outside Illinois. The exemption for motor
6 vehicles used as rolling stock moving in interstate commerce
7 may be claimed only for the following vehicles: (i) motor
8 vehicles whose gross vehicle weight rating exceeds 16,000
9 pounds; and (ii) limousines, as defined in Section 1-139.1 of
10 the Illinois Vehicle Code. On and after July 1, 2025, the
11 exemption for limousines applies only to limousines that are
12 not subject to the provisions of the Transportation Network
13 Providers Act. Through June 30, 2017, this definition applies
14 to all property purchased for the purpose of being attached to
15 those motor vehicles as a part thereof. On and after July 1,
16 2017, this definition applies to property purchased for the
17 purpose of being attached to limousines as a part thereof.
18 With respect to property that is transferred incident to a
19 sale of service on or after July 1, 2025 for the purpose of
20 being attached to limousines as a part thereof, this
21 definition applies only if the limousine is not subject to the
22 provisions of the Transportation Network Providers Act.
23 (d) For purchases made through June 30, 2017, "use as
24 rolling stock moving in interstate commerce" in paragraph
25 (d-1) of the definition of "sale of service" in Section 2
26 occurs for trailers, as defined in Section 1-209 of the
SB2027 - 26 - LRB104 03451 HLH 13474 b
SB2027- 27 -LRB104 03451 HLH 13474 b SB2027 - 27 - LRB104 03451 HLH 13474 b
SB2027 - 27 - LRB104 03451 HLH 13474 b
1 Illinois Vehicle Code, semitrailers as defined in Section
2 1-187 of the Illinois Vehicle Code, and pole trailers as
3 defined in Section 1-161 of the Illinois Vehicle Code, when
4 during a 12-month period the rolling stock has carried persons
5 or property for hire in interstate commerce for greater than
6 50% of its total trips for that period or for greater than 50%
7 of its total miles for that period. The person claiming the
8 exemption for a trailer or trailers that will not be dedicated
9 to a motor vehicle or group of motor vehicles shall make an
10 election at the time of purchase to use either the trips or
11 mileage method. Persons who purchased trailers prior to July
12 1, 2004 that are not dedicated to a motor vehicle or group of
13 motor vehicles shall make an election to use either the trips
14 or mileage method and document that election in their books
15 and records. If no election is made under this subsection to
16 use the trips or mileage method, the person shall be deemed to
17 have chosen the mileage method.
18 For purposes of determining qualifying trips or miles,
19 trailers, semitrailers, or pole trailers that carry property
20 for hire, even just between points in Illinois, will be
21 considered used for hire in interstate commerce if the
22 trailers, semitrailers, or pole trailers transport property
23 whose shipments originate or terminate outside Illinois. This
24 definition applies to all property purchased for the purpose
25 of being attached to those trailers, semitrailers, or pole
26 trailers as a part thereof. In lieu of a person providing
SB2027 - 27 - LRB104 03451 HLH 13474 b
SB2027- 28 -LRB104 03451 HLH 13474 b SB2027 - 28 - LRB104 03451 HLH 13474 b
SB2027 - 28 - LRB104 03451 HLH 13474 b
1 documentation regarding the qualifying use of each individual
2 trailer, semitrailer, or pole trailer, that person may
3 document such qualifying use by providing documentation of the
4 following:
5 (1) If a trailer, semitrailer, or pole trailer is
6 dedicated to a motor vehicle that qualifies as rolling
7 stock moving in interstate commerce under subsection (c)
8 of this Section, then that trailer, semitrailer, or pole
9 trailer qualifies as rolling stock moving in interstate
10 commerce under this subsection.
11 (2) If a trailer, semitrailer, or pole trailer is
12 dedicated to a group of motor vehicles that all qualify as
13 rolling stock moving in interstate commerce under
14 subsection (c) of this Section, then that trailer,
15 semitrailer, or pole trailer qualifies as rolling stock
16 moving in interstate commerce under this subsection.
17 (3) If one or more trailers, semitrailers, or pole
18 trailers are dedicated to a group of motor vehicles and
19 not all of those motor vehicles in that group qualify as
20 rolling stock moving in interstate commerce under
21 subsection (c) of this Section, then the percentage of
22 those trailers, semitrailers, or pole trailers that
23 qualifies as rolling stock moving in interstate commerce
24 under this subsection is equal to the percentage of those
25 motor vehicles in that group that qualify as rolling stock
26 moving in interstate commerce under subsection (c) of this
SB2027 - 28 - LRB104 03451 HLH 13474 b
SB2027- 29 -LRB104 03451 HLH 13474 b SB2027 - 29 - LRB104 03451 HLH 13474 b
SB2027 - 29 - LRB104 03451 HLH 13474 b
1 Section to which those trailers, semitrailers, or pole
2 trailers are dedicated. However, to determine the
3 qualification for the exemption provided under this item
4 (3), the mathematical application of the qualifying
5 percentage to one or more trailers, semitrailers, or pole
6 trailers under this subpart shall not be allowed as to any
7 fraction of a trailer, semitrailer, or pole trailer.
8 (d-5) For motor vehicles and trailers purchased on or
9 after July 1, 2017, "use as rolling stock moving in interstate
10 commerce" means that:
11 (1) the motor vehicle or trailer is used to transport
12 persons or property for hire;
13 (2) for purposes of the exemption under paragraph
14 (d-1) of the definition of "sale of service" in Section 2,
15 the purchaser who is an owner, lessor, or shipper claiming
16 the exemption certifies that the motor vehicle or trailer
17 will be utilized, from the time of purchase and continuing
18 through the statute of limitations for issuing a notice of
19 tax liability under this Act, by an interstate carrier or
20 carriers for hire who hold, and are required by Federal
21 Motor Carrier Safety Administration regulations to hold,
22 an active USDOT Number with the Carrier Operation listed
23 as "Interstate" and the Operation Classification listed as
24 "authorized for hire", "exempt for hire", or both
25 "authorized for hire" and "exempt for hire"; except that
26 this paragraph (2) does not apply to a motor vehicle or
SB2027 - 29 - LRB104 03451 HLH 13474 b
SB2027- 30 -LRB104 03451 HLH 13474 b SB2027 - 30 - LRB104 03451 HLH 13474 b
SB2027 - 30 - LRB104 03451 HLH 13474 b
1 trailer used at an airport to support the operation of an
2 aircraft moving in interstate commerce, as long as (i) in
3 the case of a motor vehicle, the motor vehicle meets
4 paragraphs (1) and (3) of this subsection (d-5) or (ii) in
5 the case of a trailer, the trailer meets paragraph (1) of
6 this subsection (d-5); and
7 (3) for motor vehicles, the gross vehicle weight
8 rating exceeds 16,000 pounds.
9 The definition of "use as rolling stock moving in
10 interstate commerce" in this subsection (d-5) applies to all
11 property purchased on or after July 1, 2017 for the purpose of
12 being attached to a motor vehicle or trailer as a part thereof,
13 regardless of whether the motor vehicle or trailer was
14 purchased before, on, or after July 1, 2017.
15 If an item ceases to meet requirements (1) through (3)
16 under this subsection (d-5), then the tax is imposed on the
17 selling price, allowing for a reasonable depreciation for the
18 period during which the item qualified for the exemption.
19 For purposes of this subsection (d-5):
20 "Motor vehicle" excludes limousines, but otherwise
21 means that term as defined in Section 1-146 of the
22 Illinois Vehicle Code.
23 "Trailer" means (i) "trailer", as defined in Section
24 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
25 defined in Section 1-187 of the Illinois Vehicle Code, and
26 (iii) "pole trailer", as defined in Section 1-161 of the
SB2027 - 30 - LRB104 03451 HLH 13474 b
SB2027- 31 -LRB104 03451 HLH 13474 b SB2027 - 31 - LRB104 03451 HLH 13474 b
SB2027 - 31 - LRB104 03451 HLH 13474 b
1 Illinois Vehicle Code.
2 (e) For aircraft and watercraft purchased on or after
3 January 1, 2014, "use as rolling stock moving in interstate
4 commerce" in paragraph (d-1) of the definition of "sale of
5 service" in Section 2 occurs when, during a 12-month period,
6 the rolling stock has carried persons or property for hire in
7 interstate commerce for greater than 50% of its total trips
8 for that period or for greater than 50% of its total miles for
9 that period. The person claiming the exemption shall make an
10 election at the time of purchase to use either the trips or
11 mileage method and document that election in their books and
12 records. If no election is made under this subsection to use
13 the trips or mileage method, the person shall be deemed to have
14 chosen the mileage method. For aircraft, flight hours may be
15 used in lieu of recording miles in determining whether the
16 aircraft meets the mileage test in this subsection. For
17 watercraft, nautical miles or trip hours may be used in lieu of
18 recording miles in determining whether the watercraft meets
19 the mileage test in this subsection.
20 Notwithstanding any other provision of law to the
21 contrary, property purchased on or after January 1, 2014 for
22 the purpose of being attached to aircraft or watercraft as a
23 part thereof qualifies as rolling stock moving in interstate
24 commerce only if the aircraft or watercraft to which it will be
25 attached qualifies as rolling stock moving in interstate
26 commerce under the test set forth in this subsection (e),
SB2027 - 31 - LRB104 03451 HLH 13474 b
SB2027- 32 -LRB104 03451 HLH 13474 b SB2027 - 32 - LRB104 03451 HLH 13474 b
SB2027 - 32 - LRB104 03451 HLH 13474 b
1 regardless of when the aircraft or watercraft was purchased.
2 Persons who purchased aircraft or watercraft prior to January
3 1, 2014 shall make an election to use either the trips or
4 mileage method and document that election in their books and
5 records for the purpose of determining whether property
6 purchased on or after January 1, 2014 for the purpose of being
7 attached to aircraft or watercraft as a part thereof qualifies
8 as rolling stock moving in interstate commerce under this
9 subsection (e).
10 (f) The election to use either the trips or mileage method
11 made under the provisions of subsections (c), (d), or (e) of
12 this Section will remain in effect for the duration of the
13 purchaser's ownership of that item.
14 (Source: P.A. 102-558, eff. 8-20-21.)
15 Section 20. The Retailers' Occupation Tax Act is amended
16 by changing Sections 2-5 and 2-51 as follows:
17 (35 ILCS 120/2-5)
18 Sec. 2-5. Exemptions. Gross receipts from proceeds from
19 the sale, which, on and after January 1, 2025, includes the
20 lease, of the following tangible personal property are exempt
21 from the tax imposed by this Act:
22 (1) Farm chemicals.
23 (2) Farm machinery and equipment, both new and used,
24 including that manufactured on special order, certified by
SB2027 - 32 - LRB104 03451 HLH 13474 b
SB2027- 33 -LRB104 03451 HLH 13474 b SB2027 - 33 - LRB104 03451 HLH 13474 b
SB2027 - 33 - LRB104 03451 HLH 13474 b
1 the purchaser to be used primarily for production
2 agriculture or State or federal agricultural programs,
3 including individual replacement parts for the machinery
4 and equipment, including machinery and equipment purchased
5 for lease, and including implements of husbandry defined
6 in Section 1-130 of the Illinois Vehicle Code, farm
7 machinery and agricultural chemical and fertilizer
8 spreaders, and nurse wagons required to be registered
9 under Section 3-809 of the Illinois Vehicle Code, but
10 excluding other motor vehicles required to be registered
11 under the Illinois Vehicle Code. Horticultural polyhouses
12 or hoop houses used for propagating, growing, or
13 overwintering plants shall be considered farm machinery
14 and equipment under this item (2). Agricultural chemical
15 tender tanks and dry boxes shall include units sold
16 separately from a motor vehicle required to be licensed
17 and units sold mounted on a motor vehicle required to be
18 licensed, if the selling price of the tender is separately
19 stated.
20 Farm machinery and equipment shall include precision
21 farming equipment that is installed or purchased to be
22 installed on farm machinery and equipment including, but
23 not limited to, tractors, harvesters, sprayers, planters,
24 seeders, or spreaders. Precision farming equipment
25 includes, but is not limited to, soil testing sensors,
26 computers, monitors, software, global positioning and
SB2027 - 33 - LRB104 03451 HLH 13474 b
SB2027- 34 -LRB104 03451 HLH 13474 b SB2027 - 34 - LRB104 03451 HLH 13474 b
SB2027 - 34 - LRB104 03451 HLH 13474 b
1 mapping systems, and other such equipment.
2 Farm machinery and equipment also includes computers,
3 sensors, software, and related equipment used primarily in
4 the computer-assisted operation of production agriculture
5 facilities, equipment, and activities such as, but not
6 limited to, the collection, monitoring, and correlation of
7 animal and crop data for the purpose of formulating animal
8 diets and agricultural chemicals.
9 Beginning on January 1, 2024, farm machinery and
10 equipment also includes electrical power generation
11 equipment used primarily for production agriculture.
12 This item (2) is exempt from the provisions of Section
13 2-70.
14 (3) Until July 1, 2003, distillation machinery and
15 equipment, sold as a unit or kit, assembled or installed
16 by the retailer, certified by the user to be used only for
17 the production of ethyl alcohol that will be used for
18 consumption as motor fuel or as a component of motor fuel
19 for the personal use of the user, and not subject to sale
20 or resale.
21 (4) Until July 1, 2003 and beginning again September
22 1, 2004 through August 30, 2014, graphic arts machinery
23 and equipment, including repair and replacement parts,
24 both new and used, and including that manufactured on
25 special order or purchased for lease, certified by the
26 purchaser to be used primarily for graphic arts
SB2027 - 34 - LRB104 03451 HLH 13474 b
SB2027- 35 -LRB104 03451 HLH 13474 b SB2027 - 35 - LRB104 03451 HLH 13474 b
SB2027 - 35 - LRB104 03451 HLH 13474 b
1 production. Equipment includes chemicals or chemicals
2 acting as catalysts but only if the chemicals or chemicals
3 acting as catalysts effect a direct and immediate change
4 upon a graphic arts product. Beginning on July 1, 2017,
5 graphic arts machinery and equipment is included in the
6 manufacturing and assembling machinery and equipment
7 exemption under paragraph (14).
8 (5) A motor vehicle that is used for automobile
9 renting, as defined in the Automobile Renting Occupation
10 and Use Tax Act. This paragraph is exempt from the
11 provisions of Section 2-70.
12 (6) Personal property sold by a teacher-sponsored
13 student organization affiliated with an elementary or
14 secondary school located in Illinois.
15 (7) Until July 1, 2003, proceeds of that portion of
16 the selling price of a passenger car the sale of which is
17 subject to the Replacement Vehicle Tax.
18 (8) Personal property sold to an Illinois county fair
19 association for use in conducting, operating, or promoting
20 the county fair.
21 (9) Personal property sold to a not-for-profit arts or
22 cultural organization that establishes, by proof required
23 by the Department by rule, that it has received an
24 exemption under Section 501(c)(3) of the Internal Revenue
25 Code and that is organized and operated primarily for the
26 presentation or support of arts or cultural programming,
SB2027 - 35 - LRB104 03451 HLH 13474 b
SB2027- 36 -LRB104 03451 HLH 13474 b SB2027 - 36 - LRB104 03451 HLH 13474 b
SB2027 - 36 - LRB104 03451 HLH 13474 b
1 activities, or services. These organizations include, but
2 are not limited to, music and dramatic arts organizations
3 such as symphony orchestras and theatrical groups, arts
4 and cultural service organizations, local arts councils,
5 visual arts organizations, and media arts organizations.
6 On and after July 1, 2001 (the effective date of Public Act
7 92-35), however, an entity otherwise eligible for this
8 exemption shall not make tax-free purchases unless it has
9 an active identification number issued by the Department.
10 (10) Personal property sold by a corporation, society,
11 association, foundation, institution, or organization,
12 other than a limited liability company, that is organized
13 and operated as a not-for-profit service enterprise for
14 the benefit of persons 65 years of age or older if the
15 personal property was not purchased by the enterprise for
16 the purpose of resale by the enterprise.
17 (11) Except as otherwise provided in this Section,
18 personal property sold to a governmental body, to a
19 corporation, society, association, foundation, or
20 institution organized and operated exclusively for
21 charitable, religious, or educational purposes, or to a
22 not-for-profit corporation, society, association,
23 foundation, institution, or organization that has no
24 compensated officers or employees and that is organized
25 and operated primarily for the recreation of persons 55
26 years of age or older. A limited liability company may
SB2027 - 36 - LRB104 03451 HLH 13474 b
SB2027- 37 -LRB104 03451 HLH 13474 b SB2027 - 37 - LRB104 03451 HLH 13474 b
SB2027 - 37 - LRB104 03451 HLH 13474 b
1 qualify for the exemption under this paragraph only if the
2 limited liability company is organized and operated
3 exclusively for educational purposes. On and after July 1,
4 1987, however, no entity otherwise eligible for this
5 exemption shall make tax-free purchases unless it has an
6 active identification number issued by the Department.
7 (12) (Blank).
8 (12-5) On and after July 1, 2003 and through June 30,
9 2004, motor vehicles of the second division with a gross
10 vehicle weight in excess of 8,000 pounds that are subject
11 to the commercial distribution fee imposed under Section
12 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
13 2004 and through June 30, 2005, the use in this State of
14 motor vehicles of the second division: (i) with a gross
15 vehicle weight rating in excess of 8,000 pounds; (ii) that
16 are subject to the commercial distribution fee imposed
17 under Section 3-815.1 of the Illinois Vehicle Code; and
18 (iii) that are primarily used for commercial purposes.
19 Through June 30, 2005, this exemption applies to repair
20 and replacement parts added after the initial purchase of
21 such a motor vehicle if that motor vehicle is used in a
22 manner that would qualify for the rolling stock exemption
23 otherwise provided for in this Act. For purposes of this
24 paragraph, "used for commercial purposes" means the
25 transportation of persons or property in furtherance of
26 any commercial or industrial enterprise whether for-hire
SB2027 - 37 - LRB104 03451 HLH 13474 b
SB2027- 38 -LRB104 03451 HLH 13474 b SB2027 - 38 - LRB104 03451 HLH 13474 b
SB2027 - 38 - LRB104 03451 HLH 13474 b
1 or not.
2 (13) Proceeds from sales to owners or lessors,
3 lessees, or shippers of tangible personal property that is
4 utilized by interstate carriers for hire for use as
5 rolling stock moving in interstate commerce and equipment
6 operated by a telecommunications provider, licensed as a
7 common carrier by the Federal Communications Commission,
8 which is permanently installed in or affixed to aircraft
9 moving in interstate commerce.
10 (14) Machinery and equipment that will be used by the
11 purchaser, or a lessee of the purchaser, primarily in the
12 process of manufacturing or assembling tangible personal
13 property for wholesale or retail sale or lease, whether
14 the sale or lease is made directly by the manufacturer or
15 by some other person, whether the materials used in the
16 process are owned by the manufacturer or some other
17 person, or whether the sale or lease is made apart from or
18 as an incident to the seller's engaging in the service
19 occupation of producing machines, tools, dies, jigs,
20 patterns, gauges, or other similar items of no commercial
21 value on special order for a particular purchaser. The
22 exemption provided by this paragraph (14) does not include
23 machinery and equipment used in (i) the generation of
24 electricity for wholesale or retail sale; (ii) the
25 generation or treatment of natural or artificial gas for
26 wholesale or retail sale that is delivered to customers
SB2027 - 38 - LRB104 03451 HLH 13474 b
SB2027- 39 -LRB104 03451 HLH 13474 b SB2027 - 39 - LRB104 03451 HLH 13474 b
SB2027 - 39 - LRB104 03451 HLH 13474 b
1 through pipes, pipelines, or mains; or (iii) the treatment
2 of water for wholesale or retail sale that is delivered to
3 customers through pipes, pipelines, or mains. The
4 provisions of Public Act 98-583 are declaratory of
5 existing law as to the meaning and scope of this
6 exemption. Beginning on July 1, 2017, the exemption
7 provided by this paragraph (14) includes, but is not
8 limited to, graphic arts machinery and equipment, as
9 defined in paragraph (4) of this Section.
10 (15) Proceeds of mandatory service charges separately
11 stated on customers' bills for purchase and consumption of
12 food and beverages, to the extent that the proceeds of the
13 service charge are in fact turned over as tips or as a
14 substitute for tips to the employees who participate
15 directly in preparing, serving, hosting or cleaning up the
16 food or beverage function with respect to which the
17 service charge is imposed.
18 (16) Tangible personal property sold to a purchaser if
19 the purchaser is exempt from use tax by operation of
20 federal law. This paragraph is exempt from the provisions
21 of Section 2-70.
22 (17) Tangible personal property sold to a common
23 carrier by rail or motor that receives the physical
24 possession of the property in Illinois and that transports
25 the property, or shares with another common carrier in the
26 transportation of the property, out of Illinois on a
SB2027 - 39 - LRB104 03451 HLH 13474 b
SB2027- 40 -LRB104 03451 HLH 13474 b SB2027 - 40 - LRB104 03451 HLH 13474 b
SB2027 - 40 - LRB104 03451 HLH 13474 b
1 standard uniform bill of lading showing the seller of the
2 property as the shipper or consignor of the property to a
3 destination outside Illinois, for use outside Illinois.
4 (18) Legal tender, currency, medallions, or gold or
5 silver coinage issued by the State of Illinois, the
6 government of the United States of America, or the
7 government of any foreign country, and bullion.
8 (19) Until July 1, 2003, oil field exploration,
9 drilling, and production equipment, including (i) rigs and
10 parts of rigs, rotary rigs, cable tool rigs, and workover
11 rigs, (ii) pipe and tubular goods, including casing and
12 drill strings, (iii) pumps and pump-jack units, (iv)
13 storage tanks and flow lines, (v) any individual
14 replacement part for oil field exploration, drilling, and
15 production equipment, and (vi) machinery and equipment
16 purchased for lease; but excluding motor vehicles required
17 to be registered under the Illinois Vehicle Code.
18 (20) Photoprocessing machinery and equipment,
19 including repair and replacement parts, both new and used,
20 including that manufactured on special order, certified by
21 the purchaser to be used primarily for photoprocessing,
22 and including photoprocessing machinery and equipment
23 purchased for lease.
24 (21) Until July 1, 2028, coal and aggregate
25 exploration, mining, off-highway hauling, processing,
26 maintenance, and reclamation equipment, including
SB2027 - 40 - LRB104 03451 HLH 13474 b
SB2027- 41 -LRB104 03451 HLH 13474 b SB2027 - 41 - LRB104 03451 HLH 13474 b
SB2027 - 41 - LRB104 03451 HLH 13474 b
1 replacement parts and equipment, and including equipment
2 purchased for lease, but excluding motor vehicles required
3 to be registered under the Illinois Vehicle Code. The
4 changes made to this Section by Public Act 97-767 apply on
5 and after July 1, 2003, but no claim for credit or refund
6 is allowed on or after August 16, 2013 (the effective date
7 of Public Act 98-456) for such taxes paid during the
8 period beginning July 1, 2003 and ending on August 16,
9 2013 (the effective date of Public Act 98-456).
10 (22) Until June 30, 2013, fuel and petroleum products
11 sold to or used by an air carrier, certified by the carrier
12 to be used for consumption, shipment, or storage in the
13 conduct of its business as an air common carrier, for a
14 flight destined for or returning from a location or
15 locations outside the United States without regard to
16 previous or subsequent domestic stopovers.
17 Beginning July 1, 2013, fuel and petroleum products
18 sold to or used by an air carrier, certified by the carrier
19 to be used for consumption, shipment, or storage in the
20 conduct of its business as an air common carrier, for a
21 flight that (i) is engaged in foreign trade or is engaged
22 in trade between the United States and any of its
23 possessions and (ii) transports at least one individual or
24 package for hire from the city of origination to the city
25 of final destination on the same aircraft, without regard
26 to a change in the flight number of that aircraft.
SB2027 - 41 - LRB104 03451 HLH 13474 b
SB2027- 42 -LRB104 03451 HLH 13474 b SB2027 - 42 - LRB104 03451 HLH 13474 b
SB2027 - 42 - LRB104 03451 HLH 13474 b
1 (23) A transaction in which the purchase order is
2 received by a florist who is located outside Illinois, but
3 who has a florist located in Illinois deliver the property
4 to the purchaser or the purchaser's donee in Illinois.
5 (24) Fuel consumed or used in the operation of ships,
6 barges, or vessels that are used primarily in or for the
7 transportation of property or the conveyance of persons
8 for hire on rivers bordering on this State if the fuel is
9 delivered by the seller to the purchaser's barge, ship, or
10 vessel while it is afloat upon that bordering river.
11 (25) Except as provided in items item (25-5) and
12 (25-6) of this Section, a motor vehicle sold in this State
13 to a nonresident even though the motor vehicle is
14 delivered to the nonresident in this State, if the motor
15 vehicle is not to be titled in this State, and if a
16 drive-away permit is issued to the motor vehicle as
17 provided in Section 3-603 of the Illinois Vehicle Code or
18 if the nonresident purchaser has vehicle registration
19 plates to transfer to the motor vehicle upon returning to
20 his or her home state. The issuance of the drive-away
21 permit or having the out-of-state registration plates to
22 be transferred is prima facie evidence that the motor
23 vehicle will not be titled in this State.
24 (25-5) The exemption under item (25) does not apply if
25 the state in which the motor vehicle will be titled does
26 not allow a reciprocal exemption for a motor vehicle sold
SB2027 - 42 - LRB104 03451 HLH 13474 b
SB2027- 43 -LRB104 03451 HLH 13474 b SB2027 - 43 - LRB104 03451 HLH 13474 b
SB2027 - 43 - LRB104 03451 HLH 13474 b
1 and delivered in that state to an Illinois resident but
2 titled in Illinois. The tax collected under this Act on
3 the sale of a motor vehicle in this State to a resident of
4 another state that does not allow a reciprocal exemption
5 shall be imposed at a rate equal to the state's rate of tax
6 on taxable property in the state in which the purchaser is
7 a resident, except that the tax shall not exceed the tax
8 that would otherwise be imposed under this Act. At the
9 time of the sale, the purchaser shall execute a statement,
10 signed under penalty of perjury, of his or her intent to
11 title the vehicle in the state in which the purchaser is a
12 resident within 30 days after the sale and of the fact of
13 the payment to the State of Illinois of tax in an amount
14 equivalent to the state's rate of tax on taxable property
15 in his or her state of residence and shall submit the
16 statement to the appropriate tax collection agency in his
17 or her state of residence. In addition, the retailer must
18 retain a signed copy of the statement in his or her
19 records. Nothing in this item shall be construed to
20 require the removal of the vehicle from this state
21 following the filing of an intent to title the vehicle in
22 the purchaser's state of residence if the purchaser titles
23 the vehicle in his or her state of residence within 30 days
24 after the date of sale. The tax collected under this Act in
25 accordance with this item (25-5) shall be proportionately
26 distributed as if the tax were collected at the 6.25%
SB2027 - 43 - LRB104 03451 HLH 13474 b
SB2027- 44 -LRB104 03451 HLH 13474 b SB2027 - 44 - LRB104 03451 HLH 13474 b
SB2027 - 44 - LRB104 03451 HLH 13474 b
1 general rate imposed under this Act.
2 (25-6) There is a rebuttable presumption that the
3 exemption under item (25) does not apply if the purchaser
4 is a limited liability company and a member of the limited
5 liability company is a resident of Illinois. This
6 presumption may be rebutted by other evidence, such as
7 evidence the motor vehicle is insured at a garaging or
8 storage address outside Illinois or other evidence of the
9 physical address at which the motor vehicle will be stored
10 or garaged outside Illinois.
11 (25-7) Beginning on July 1, 2007, no tax is imposed
12 under this Act on the sale of an aircraft, as defined in
13 Section 3 of the Illinois Aeronautics Act, if all of the
14 following conditions are met:
15 (1) the aircraft leaves this State within 15 days
16 after the later of either the issuance of the final
17 billing for the sale of the aircraft, or the
18 authorized approval for return to service, completion
19 of the maintenance record entry, and completion of the
20 test flight and ground test for inspection, as
21 required by 14 CFR 91.407;
22 (2) the aircraft is not based or registered in
23 this State after the sale of the aircraft; and
24 (3) the seller retains in his or her books and
25 records and provides to the Department a signed and
26 dated certification from the purchaser, on a form
SB2027 - 44 - LRB104 03451 HLH 13474 b
SB2027- 45 -LRB104 03451 HLH 13474 b SB2027 - 45 - LRB104 03451 HLH 13474 b
SB2027 - 45 - LRB104 03451 HLH 13474 b
1 prescribed by the Department, certifying that the
2 requirements of this item (25-7) are met. The
3 certificate must also include the name and address of
4 the purchaser, the address of the location where the
5 aircraft is to be titled or registered, the address of
6 the primary physical location of the aircraft, and
7 other information that the Department may reasonably
8 require.
9 For purposes of this item (25-7):
10 "Based in this State" means hangared, stored, or
11 otherwise used, excluding post-sale customizations as
12 defined in this Section, for 10 or more days in each
13 12-month period immediately following the date of the sale
14 of the aircraft.
15 "Registered in this State" means an aircraft
16 registered with the Department of Transportation,
17 Aeronautics Division, or titled or registered with the
18 Federal Aviation Administration to an address located in
19 this State.
20 This paragraph (25-7) is exempt from the provisions of
21 Section 2-70.
22 (26) Semen used for artificial insemination of
23 livestock for direct agricultural production.
24 (27) Horses, or interests in horses, registered with
25 and meeting the requirements of any of the Arabian Horse
26 Club Registry of America, Appaloosa Horse Club, American
SB2027 - 45 - LRB104 03451 HLH 13474 b
SB2027- 46 -LRB104 03451 HLH 13474 b SB2027 - 46 - LRB104 03451 HLH 13474 b
SB2027 - 46 - LRB104 03451 HLH 13474 b
1 Quarter Horse Association, United States Trotting
2 Association, or Jockey Club, as appropriate, used for
3 purposes of breeding or racing for prizes. This item (27)
4 is exempt from the provisions of Section 2-70, and the
5 exemption provided for under this item (27) applies for
6 all periods beginning May 30, 1995, but no claim for
7 credit or refund is allowed on or after January 1, 2008
8 (the effective date of Public Act 95-88) for such taxes
9 paid during the period beginning May 30, 2000 and ending
10 on January 1, 2008 (the effective date of Public Act
11 95-88).
12 (28) Computers and communications equipment utilized
13 for any hospital purpose and equipment used in the
14 diagnosis, analysis, or treatment of hospital patients
15 sold to a lessor who leases the equipment, under a lease of
16 one year or longer executed or in effect at the time of the
17 purchase, to a hospital that has been issued an active tax
18 exemption identification number by the Department under
19 Section 1g of this Act.
20 (29) Personal property sold to a lessor who leases the
21 property, under a lease of one year or longer executed or
22 in effect at the time of the purchase, to a governmental
23 body that has been issued an active tax exemption
24 identification number by the Department under Section 1g
25 of this Act.
26 (30) Beginning with taxable years ending on or after
SB2027 - 46 - LRB104 03451 HLH 13474 b
SB2027- 47 -LRB104 03451 HLH 13474 b SB2027 - 47 - LRB104 03451 HLH 13474 b
SB2027 - 47 - LRB104 03451 HLH 13474 b
1 December 31, 1995 and ending with taxable years ending on
2 or before December 31, 2004, personal property that is
3 donated for disaster relief to be used in a State or
4 federally declared disaster area in Illinois or bordering
5 Illinois by a manufacturer or retailer that is registered
6 in this State to a corporation, society, association,
7 foundation, or institution that has been issued a sales
8 tax exemption identification number by the Department that
9 assists victims of the disaster who reside within the
10 declared disaster area.
11 (31) Beginning with taxable years ending on or after
12 December 31, 1995 and ending with taxable years ending on
13 or before December 31, 2004, personal property that is
14 used in the performance of infrastructure repairs in this
15 State, including, but not limited to, municipal roads and
16 streets, access roads, bridges, sidewalks, waste disposal
17 systems, water and sewer line extensions, water
18 distribution and purification facilities, storm water
19 drainage and retention facilities, and sewage treatment
20 facilities, resulting from a State or federally declared
21 disaster in Illinois or bordering Illinois when such
22 repairs are initiated on facilities located in the
23 declared disaster area within 6 months after the disaster.
24 (32) Beginning July 1, 1999, game or game birds sold
25 at a "game breeding and hunting preserve area" as that
26 term is used in the Wildlife Code. This paragraph is
SB2027 - 47 - LRB104 03451 HLH 13474 b
SB2027- 48 -LRB104 03451 HLH 13474 b SB2027 - 48 - LRB104 03451 HLH 13474 b
SB2027 - 48 - LRB104 03451 HLH 13474 b
1 exempt from the provisions of Section 2-70.
2 (33) A motor vehicle, as that term is defined in
3 Section 1-146 of the Illinois Vehicle Code, that is
4 donated to a corporation, limited liability company,
5 society, association, foundation, or institution that is
6 determined by the Department to be organized and operated
7 exclusively for educational purposes. For purposes of this
8 exemption, "a corporation, limited liability company,
9 society, association, foundation, or institution organized
10 and operated exclusively for educational purposes" means
11 all tax-supported public schools, private schools that
12 offer systematic instruction in useful branches of
13 learning by methods common to public schools and that
14 compare favorably in their scope and intensity with the
15 course of study presented in tax-supported schools, and
16 vocational or technical schools or institutes organized
17 and operated exclusively to provide a course of study of
18 not less than 6 weeks duration and designed to prepare
19 individuals to follow a trade or to pursue a manual,
20 technical, mechanical, industrial, business, or commercial
21 occupation.
22 (34) Beginning January 1, 2000, personal property,
23 including food, purchased through fundraising events for
24 the benefit of a public or private elementary or secondary
25 school, a group of those schools, or one or more school
26 districts if the events are sponsored by an entity
SB2027 - 48 - LRB104 03451 HLH 13474 b
SB2027- 49 -LRB104 03451 HLH 13474 b SB2027 - 49 - LRB104 03451 HLH 13474 b
SB2027 - 49 - LRB104 03451 HLH 13474 b
1 recognized by the school district that consists primarily
2 of volunteers and includes parents and teachers of the
3 school children. This paragraph does not apply to
4 fundraising events (i) for the benefit of private home
5 instruction or (ii) for which the fundraising entity
6 purchases the personal property sold at the events from
7 another individual or entity that sold the property for
8 the purpose of resale by the fundraising entity and that
9 profits from the sale to the fundraising entity. This
10 paragraph is exempt from the provisions of Section 2-70.
11 (35) Beginning January 1, 2000 and through December
12 31, 2001, new or used automatic vending machines that
13 prepare and serve hot food and beverages, including
14 coffee, soup, and other items, and replacement parts for
15 these machines. Beginning January 1, 2002 and through June
16 30, 2003, machines and parts for machines used in
17 commercial, coin-operated amusement and vending business
18 if a use or occupation tax is paid on the gross receipts
19 derived from the use of the commercial, coin-operated
20 amusement and vending machines. This paragraph is exempt
21 from the provisions of Section 2-70.
22 (35-5) Beginning August 23, 2001 and through June 30,
23 2016, food for human consumption that is to be consumed
24 off the premises where it is sold (other than alcoholic
25 beverages, soft drinks, and food that has been prepared
26 for immediate consumption) and prescription and
SB2027 - 49 - LRB104 03451 HLH 13474 b
SB2027- 50 -LRB104 03451 HLH 13474 b SB2027 - 50 - LRB104 03451 HLH 13474 b
SB2027 - 50 - LRB104 03451 HLH 13474 b
1 nonprescription medicines, drugs, medical appliances, and
2 insulin, urine testing materials, syringes, and needles
3 used by diabetics, for human use, when purchased for use
4 by a person receiving medical assistance under Article V
5 of the Illinois Public Aid Code who resides in a licensed
6 long-term care facility, as defined in the Nursing Home
7 Care Act, or a licensed facility as defined in the ID/DD
8 Community Care Act, the MC/DD Act, or the Specialized
9 Mental Health Rehabilitation Act of 2013.
10 (36) Beginning August 2, 2001, computers and
11 communications equipment utilized for any hospital purpose
12 and equipment used in the diagnosis, analysis, or
13 treatment of hospital patients sold to a lessor who leases
14 the equipment, under a lease of one year or longer
15 executed or in effect at the time of the purchase, to a
16 hospital that has been issued an active tax exemption
17 identification number by the Department under Section 1g
18 of this Act. This paragraph is exempt from the provisions
19 of Section 2-70.
20 (37) Beginning August 2, 2001, personal property sold
21 to a lessor who leases the property, under a lease of one
22 year or longer executed or in effect at the time of the
23 purchase, to a governmental body that has been issued an
24 active tax exemption identification number by the
25 Department under Section 1g of this Act. This paragraph is
26 exempt from the provisions of Section 2-70.
SB2027 - 50 - LRB104 03451 HLH 13474 b
SB2027- 51 -LRB104 03451 HLH 13474 b SB2027 - 51 - LRB104 03451 HLH 13474 b
SB2027 - 51 - LRB104 03451 HLH 13474 b
1 (38) Beginning on January 1, 2002 and through June 30,
2 2016, tangible personal property purchased from an
3 Illinois retailer by a taxpayer engaged in centralized
4 purchasing activities in Illinois who will, upon receipt
5 of the property in Illinois, temporarily store the
6 property in Illinois (i) for the purpose of subsequently
7 transporting it outside this State for use or consumption
8 thereafter solely outside this State or (ii) for the
9 purpose of being processed, fabricated, or manufactured
10 into, attached to, or incorporated into other tangible
11 personal property to be transported outside this State and
12 thereafter used or consumed solely outside this State. The
13 Director of Revenue shall, pursuant to rules adopted in
14 accordance with the Illinois Administrative Procedure Act,
15 issue a permit to any taxpayer in good standing with the
16 Department who is eligible for the exemption under this
17 paragraph (38). The permit issued under this paragraph
18 (38) shall authorize the holder, to the extent and in the
19 manner specified in the rules adopted under this Act, to
20 purchase tangible personal property from a retailer exempt
21 from the taxes imposed by this Act. Taxpayers shall
22 maintain all necessary books and records to substantiate
23 the use and consumption of all such tangible personal
24 property outside of the State of Illinois.
25 (39) Beginning January 1, 2008, tangible personal
26 property used in the construction or maintenance of a
SB2027 - 51 - LRB104 03451 HLH 13474 b
SB2027- 52 -LRB104 03451 HLH 13474 b SB2027 - 52 - LRB104 03451 HLH 13474 b
SB2027 - 52 - LRB104 03451 HLH 13474 b
1 community water supply, as defined under Section 3.145 of
2 the Environmental Protection Act, that is operated by a
3 not-for-profit corporation that holds a valid water supply
4 permit issued under Title IV of the Environmental
5 Protection Act. This paragraph is exempt from the
6 provisions of Section 2-70.
7 (40) Beginning January 1, 2010 and continuing through
8 December 31, 2029, materials, parts, equipment,
9 components, and furnishings incorporated into or upon an
10 aircraft as part of the modification, refurbishment,
11 completion, replacement, repair, or maintenance of the
12 aircraft. This exemption includes consumable supplies used
13 in the modification, refurbishment, completion,
14 replacement, repair, and maintenance of aircraft. However,
15 until January 1, 2024, this exemption excludes any
16 materials, parts, equipment, components, and consumable
17 supplies used in the modification, replacement, repair,
18 and maintenance of aircraft engines or power plants,
19 whether such engines or power plants are installed or
20 uninstalled upon any such aircraft. "Consumable supplies"
21 include, but are not limited to, adhesive, tape,
22 sandpaper, general purpose lubricants, cleaning solution,
23 latex gloves, and protective films.
24 Beginning January 1, 2010 and continuing through
25 December 31, 2023, this exemption applies only to the sale
26 of qualifying tangible personal property to persons who
SB2027 - 52 - LRB104 03451 HLH 13474 b
SB2027- 53 -LRB104 03451 HLH 13474 b SB2027 - 53 - LRB104 03451 HLH 13474 b
SB2027 - 53 - LRB104 03451 HLH 13474 b
1 modify, refurbish, complete, replace, or maintain an
2 aircraft and who (i) hold an Air Agency Certificate and
3 are empowered to operate an approved repair station by the
4 Federal Aviation Administration, (ii) have a Class IV
5 Rating, and (iii) conduct operations in accordance with
6 Part 145 of the Federal Aviation Regulations. The
7 exemption does not include aircraft operated by a
8 commercial air carrier providing scheduled passenger air
9 service pursuant to authority issued under Part 121 or
10 Part 129 of the Federal Aviation Regulations. From January
11 1, 2024 through December 31, 2029, this exemption applies
12 only to the sale of qualifying tangible personal property
13 to: (A) persons who modify, refurbish, complete, repair,
14 replace, or maintain aircraft and who (i) hold an Air
15 Agency Certificate and are empowered to operate an
16 approved repair station by the Federal Aviation
17 Administration, (ii) have a Class IV Rating, and (iii)
18 conduct operations in accordance with Part 145 of the
19 Federal Aviation Regulations; and (B) persons who engage
20 in the modification, replacement, repair, and maintenance
21 of aircraft engines or power plants without regard to
22 whether or not those persons meet the qualifications of
23 item (A).
24 The changes made to this paragraph (40) by Public Act
25 98-534 are declarative of existing law. It is the intent
26 of the General Assembly that the exemption under this
SB2027 - 53 - LRB104 03451 HLH 13474 b
SB2027- 54 -LRB104 03451 HLH 13474 b SB2027 - 54 - LRB104 03451 HLH 13474 b
SB2027 - 54 - LRB104 03451 HLH 13474 b
1 paragraph (40) applies continuously from January 1, 2010
2 through December 31, 2024; however, no claim for credit or
3 refund is allowed for taxes paid as a result of the
4 disallowance of this exemption on or after January 1, 2015
5 and prior to February 5, 2020 (the effective date of
6 Public Act 101-629).
7 (41) Tangible personal property sold to a
8 public-facilities corporation, as described in Section
9 11-65-10 of the Illinois Municipal Code, for purposes of
10 constructing or furnishing a municipal convention hall,
11 but only if the legal title to the municipal convention
12 hall is transferred to the municipality without any
13 further consideration by or on behalf of the municipality
14 at the time of the completion of the municipal convention
15 hall or upon the retirement or redemption of any bonds or
16 other debt instruments issued by the public-facilities
17 corporation in connection with the development of the
18 municipal convention hall. This exemption includes
19 existing public-facilities corporations as provided in
20 Section 11-65-25 of the Illinois Municipal Code. This
21 paragraph is exempt from the provisions of Section 2-70.
22 (42) Beginning January 1, 2017 and through December
23 31, 2026, menstrual pads, tampons, and menstrual cups.
24 (43) Merchandise that is subject to the Rental
25 Purchase Agreement Occupation and Use Tax. The purchaser
26 must certify that the item is purchased to be rented
SB2027 - 54 - LRB104 03451 HLH 13474 b
SB2027- 55 -LRB104 03451 HLH 13474 b SB2027 - 55 - LRB104 03451 HLH 13474 b
SB2027 - 55 - LRB104 03451 HLH 13474 b
1 subject to a rental-purchase agreement, as defined in the
2 Rental-Purchase Agreement Act, and provide proof of
3 registration under the Rental Purchase Agreement
4 Occupation and Use Tax Act. This paragraph is exempt from
5 the provisions of Section 2-70.
6 (44) Qualified tangible personal property used in the
7 construction or operation of a data center that has been
8 granted a certificate of exemption by the Department of
9 Commerce and Economic Opportunity, whether that tangible
10 personal property is purchased by the owner, operator, or
11 tenant of the data center or by a contractor or
12 subcontractor of the owner, operator, or tenant. Data
13 centers that would have qualified for a certificate of
14 exemption prior to January 1, 2020 had Public Act 101-31
15 been in effect, may apply for and obtain an exemption for
16 subsequent purchases of computer equipment or enabling
17 software purchased or leased to upgrade, supplement, or
18 replace computer equipment or enabling software purchased
19 or leased in the original investment that would have
20 qualified.
21 The Department of Commerce and Economic Opportunity
22 shall grant a certificate of exemption under this item
23 (44) to qualified data centers as defined by Section
24 605-1025 of the Department of Commerce and Economic
25 Opportunity Law of the Civil Administrative Code of
26 Illinois.
SB2027 - 55 - LRB104 03451 HLH 13474 b
SB2027- 56 -LRB104 03451 HLH 13474 b SB2027 - 56 - LRB104 03451 HLH 13474 b
SB2027 - 56 - LRB104 03451 HLH 13474 b
1 For the purposes of this item (44):
2 "Data center" means a building or a series of
3 buildings rehabilitated or constructed to house
4 working servers in one physical location or multiple
5 sites within the State of Illinois.
6 "Qualified tangible personal property" means:
7 electrical systems and equipment; climate control and
8 chilling equipment and systems; mechanical systems and
9 equipment; monitoring and secure systems; emergency
10 generators; hardware; computers; servers; data storage
11 devices; network connectivity equipment; racks;
12 cabinets; telecommunications cabling infrastructure;
13 raised floor systems; peripheral components or
14 systems; software; mechanical, electrical, or plumbing
15 systems; battery systems; cooling systems and towers;
16 temperature control systems; other cabling; and other
17 data center infrastructure equipment and systems
18 necessary to operate qualified tangible personal
19 property, including fixtures; and component parts of
20 any of the foregoing, including installation,
21 maintenance, repair, refurbishment, and replacement of
22 qualified tangible personal property to generate,
23 transform, transmit, distribute, or manage electricity
24 necessary to operate qualified tangible personal
25 property; and all other tangible personal property
26 that is essential to the operations of a computer data
SB2027 - 56 - LRB104 03451 HLH 13474 b
SB2027- 57 -LRB104 03451 HLH 13474 b SB2027 - 57 - LRB104 03451 HLH 13474 b
SB2027 - 57 - LRB104 03451 HLH 13474 b
1 center. The term "qualified tangible personal
2 property" also includes building materials physically
3 incorporated into the qualifying data center. To
4 document the exemption allowed under this Section, the
5 retailer must obtain from the purchaser a copy of the
6 certificate of eligibility issued by the Department of
7 Commerce and Economic Opportunity.
8 This item (44) is exempt from the provisions of
9 Section 2-70.
10 (45) Beginning January 1, 2020 and through December
11 31, 2020, sales of tangible personal property made by a
12 marketplace seller over a marketplace for which tax is due
13 under this Act but for which use tax has been collected and
14 remitted to the Department by a marketplace facilitator
15 under Section 2d of the Use Tax Act are exempt from tax
16 under this Act. A marketplace seller claiming this
17 exemption shall maintain books and records demonstrating
18 that the use tax on such sales has been collected and
19 remitted by a marketplace facilitator. Marketplace sellers
20 that have properly remitted tax under this Act on such
21 sales may file a claim for credit as provided in Section 6
22 of this Act. No claim is allowed, however, for such taxes
23 for which a credit or refund has been issued to the
24 marketplace facilitator under the Use Tax Act, or for
25 which the marketplace facilitator has filed a claim for
26 credit or refund under the Use Tax Act.
SB2027 - 57 - LRB104 03451 HLH 13474 b
SB2027- 58 -LRB104 03451 HLH 13474 b SB2027 - 58 - LRB104 03451 HLH 13474 b
SB2027 - 58 - LRB104 03451 HLH 13474 b
1 (46) Beginning July 1, 2022, breast pumps, breast pump
2 collection and storage supplies, and breast pump kits.
3 This item (46) is exempt from the provisions of Section
4 2-70. As used in this item (46):
5 "Breast pump" means an electrically controlled or
6 manually controlled pump device designed or marketed to be
7 used to express milk from a human breast during lactation,
8 including the pump device and any battery, AC adapter, or
9 other power supply unit that is used to power the pump
10 device and is packaged and sold with the pump device at the
11 time of sale.
12 "Breast pump collection and storage supplies" means
13 items of tangible personal property designed or marketed
14 to be used in conjunction with a breast pump to collect
15 milk expressed from a human breast and to store collected
16 milk until it is ready for consumption.
17 "Breast pump collection and storage supplies"
18 includes, but is not limited to: breast shields and breast
19 shield connectors; breast pump tubes and tubing adapters;
20 breast pump valves and membranes; backflow protectors and
21 backflow protector adaptors; bottles and bottle caps
22 specific to the operation of the breast pump; and breast
23 milk storage bags.
24 "Breast pump collection and storage supplies" does not
25 include: (1) bottles and bottle caps not specific to the
26 operation of the breast pump; (2) breast pump travel bags
SB2027 - 58 - LRB104 03451 HLH 13474 b
SB2027- 59 -LRB104 03451 HLH 13474 b SB2027 - 59 - LRB104 03451 HLH 13474 b
SB2027 - 59 - LRB104 03451 HLH 13474 b
1 and other similar carrying accessories, including ice
2 packs, labels, and other similar products; (3) breast pump
3 cleaning supplies; (4) nursing bras, bra pads, breast
4 shells, and other similar products; and (5) creams,
5 ointments, and other similar products that relieve
6 breastfeeding-related symptoms or conditions of the
7 breasts or nipples, unless sold as part of a breast pump
8 kit that is pre-packaged by the breast pump manufacturer
9 or distributor.
10 "Breast pump kit" means a kit that: (1) contains no
11 more than a breast pump, breast pump collection and
12 storage supplies, a rechargeable battery for operating the
13 breast pump, a breastmilk cooler, bottle stands, ice
14 packs, and a breast pump carrying case; and (2) is
15 pre-packaged as a breast pump kit by the breast pump
16 manufacturer or distributor.
17 (47) Tangible personal property sold by or on behalf
18 of the State Treasurer pursuant to the Revised Uniform
19 Unclaimed Property Act. This item (47) is exempt from the
20 provisions of Section 2-70.
21 (48) Beginning on January 1, 2024, tangible personal
22 property purchased by an active duty member of the armed
23 forces of the United States who presents valid military
24 identification and purchases the property using a form of
25 payment where the federal government is the payor. The
26 member of the armed forces must complete, at the point of
SB2027 - 59 - LRB104 03451 HLH 13474 b
SB2027- 60 -LRB104 03451 HLH 13474 b SB2027 - 60 - LRB104 03451 HLH 13474 b
SB2027 - 60 - LRB104 03451 HLH 13474 b
1 sale, a form prescribed by the Department of Revenue
2 documenting that the transaction is eligible for the
3 exemption under this paragraph. Retailers must keep the
4 form as documentation of the exemption in their records
5 for a period of not less than 6 years. "Armed forces of the
6 United States" means the United States Army, Navy, Air
7 Force, Space Force, Marine Corps, or Coast Guard. This
8 paragraph is exempt from the provisions of Section 2-70.
9 (49) Beginning July 1, 2024, home-delivered meals
10 provided to Medicare or Medicaid recipients when payment
11 is made by an intermediary, such as a Medicare
12 Administrative Contractor, a Managed Care Organization, or
13 a Medicare Advantage Organization, pursuant to a
14 government contract. This paragraph (49) is exempt from
15 the provisions of Section 2-70.
16 (50) (49) Beginning on January 1, 2026, as further
17 defined in Section 2-10, food for human consumption that
18 is to be consumed off the premises where it is sold (other
19 than alcoholic beverages, food consisting of or infused
20 with adult use cannabis, soft drinks, candy, and food that
21 has been prepared for immediate consumption). This item
22 (50) (49) is exempt from the provisions of Section 2-70.
23 (51) (49) Gross receipts from the lease of the
24 following tangible personal property:
25 (1) computer software transferred subject to a
26 license that meets the following requirements:
SB2027 - 60 - LRB104 03451 HLH 13474 b
SB2027- 61 -LRB104 03451 HLH 13474 b SB2027 - 61 - LRB104 03451 HLH 13474 b
SB2027 - 61 - LRB104 03451 HLH 13474 b
1 (A) it is evidenced by a written agreement
2 signed by the licensor and the customer;
3 (i) an electronic agreement in which the
4 customer accepts the license by means of an
5 electronic signature that is verifiable and
6 can be authenticated and is attached to or
7 made part of the license will comply with this
8 requirement;
9 (ii) a license agreement in which the
10 customer electronically accepts the terms by
11 clicking "I agree" does not comply with this
12 requirement;
13 (B) it restricts the customer's duplication
14 and use of the software;
15 (C) it prohibits the customer from licensing,
16 sublicensing, or transferring the software to a
17 third party (except to a related party) without
18 the permission and continued control of the
19 licensor;
20 (D) the licensor has a policy of providing
21 another copy at minimal or no charge if the
22 customer loses or damages the software, or of
23 permitting the licensee to make and keep an
24 archival copy, and such policy is either stated in
25 the license agreement, supported by the licensor's
26 books and records, or supported by a notarized
SB2027 - 61 - LRB104 03451 HLH 13474 b
SB2027- 62 -LRB104 03451 HLH 13474 b SB2027 - 62 - LRB104 03451 HLH 13474 b
SB2027 - 62 - LRB104 03451 HLH 13474 b
1 statement made under penalties of perjury by the
2 licensor; and
3 (E) the customer must destroy or return all
4 copies of the software to the licensor at the end
5 of the license period; this provision is deemed to
6 be met, in the case of a perpetual license,
7 without being set forth in the license agreement;
8 and
9 (2) property that is subject to a tax on lease
10 receipts imposed by a home rule unit of local
11 government if the ordinance imposing that tax was
12 adopted prior to January 1, 2023.
13 (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
14 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,
15 Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
16 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
17 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
18 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; 103-592,
19 eff. 1-1-25; 103-605, eff. 7-1-24; 103-643, eff. 7-1-24;
20 103-746, eff. 1-1-25; 103-781, eff. 8-5-24; 103-995, eff.
21 8-9-24; revised 11-26-24.)
22 (35 ILCS 120/2-51)
23 Sec. 2-51. Motor vehicles; trailers; use as rolling stock
24 definition.
25 (a) (Blank).
SB2027 - 62 - LRB104 03451 HLH 13474 b
SB2027- 63 -LRB104 03451 HLH 13474 b SB2027 - 63 - LRB104 03451 HLH 13474 b
SB2027 - 63 - LRB104 03451 HLH 13474 b
1 (b) (Blank).
2 (c) This subsection (c) applies to motor vehicles, other
3 than limousines, purchased through June 30, 2017. For motor
4 vehicles, other than limousines, purchased on or after July 1,
5 2017, subsection (d-5) applies. This subsection (c) applies to
6 limousines purchased before, on, or after July 1, 2017. "Use
7 as rolling stock moving in interstate commerce" in paragraph
8 (13) of Section 2-5 occurs for motor vehicles, as defined in
9 Section 1-146 of the Illinois Vehicle Code, when during a
10 12-month period the rolling stock has carried persons or
11 property for hire in interstate commerce for greater than 50%
12 of its total trips for that period or for greater than 50% of
13 its total miles for that period. The person claiming the
14 exemption shall make an election at the time of purchase to use
15 either the trips or mileage method. Persons who purchased
16 motor vehicles prior to July 1, 2004 shall make an election to
17 use either the trips or mileage method and document that
18 election in their books and records. If no election is made
19 under this subsection to use the trips or mileage method, the
20 person shall be deemed to have chosen the mileage method.
21 For purposes of determining qualifying trips or miles,
22 motor vehicles that carry persons or property for hire, even
23 just between points in Illinois, will be considered used for
24 hire in interstate commerce if the motor vehicle transports
25 persons whose journeys or property whose shipments originate
26 or terminate outside Illinois. The exemption for motor
SB2027 - 63 - LRB104 03451 HLH 13474 b
SB2027- 64 -LRB104 03451 HLH 13474 b SB2027 - 64 - LRB104 03451 HLH 13474 b
SB2027 - 64 - LRB104 03451 HLH 13474 b
1 vehicles used as rolling stock moving in interstate commerce
2 may be claimed only for the following vehicles: (i) motor
3 vehicles whose gross vehicle weight rating exceeds 16,000
4 pounds; and (ii) limousines, as defined in Section 1-139.1 of
5 the Illinois Vehicle Code. On and after July 1, 2025, the
6 exemption for limousines applies only to limousines that are
7 not subject to the provisions of the Transportation Network
8 Providers Act. Through June 30, 2017, this definition applies
9 to all property purchased for the purpose of being attached to
10 those motor vehicles as a part thereof. On and after July 1,
11 2017, this definition applies to property purchased for the
12 purpose of being attached to limousines as a part thereof. For
13 property that is purchased on or after July 1, 2025 for the
14 purpose of being attached to a limousines as a part thereof,
15 this definition applies only if the limousine is not subject
16 to the provisions of the Transportation Network Providers Act.
17 (d) For purchases made through June 30, 2017, "use as
18 rolling stock moving in interstate commerce" in paragraph (13)
19 of Section 2-5 occurs for trailers, as defined in Section
20 1-209 of the Illinois Vehicle Code, semitrailers as defined in
21 Section 1-187 of the Illinois Vehicle Code, and pole trailers
22 as defined in Section 1-161 of the Illinois Vehicle Code, when
23 during a 12-month period the rolling stock has carried persons
24 or property for hire in interstate commerce for greater than
25 50% of its total trips for that period or for greater than 50%
26 of its total miles for that period. The person claiming the
SB2027 - 64 - LRB104 03451 HLH 13474 b
SB2027- 65 -LRB104 03451 HLH 13474 b SB2027 - 65 - LRB104 03451 HLH 13474 b
SB2027 - 65 - LRB104 03451 HLH 13474 b
1 exemption for a trailer or trailers that will not be dedicated
2 to a motor vehicle or group of motor vehicles shall make an
3 election at the time of purchase to use either the trips or
4 mileage method. Persons who purchased trailers prior to July
5 1, 2004 that are not dedicated to a motor vehicle or group of
6 motor vehicles shall make an election to use either the trips
7 or mileage method and document that election in their books
8 and records. If no election is made under this subsection to
9 use the trips or mileage method, the person shall be deemed to
10 have chosen the mileage method.
11 For purposes of determining qualifying trips or miles,
12 trailers, semitrailers, or pole trailers that carry property
13 for hire, even just between points in Illinois, will be
14 considered used for hire in interstate commerce if the
15 trailers, semitrailers, or pole trailers transport property
16 whose shipments originate or terminate outside Illinois. This
17 definition applies to all property purchased for the purpose
18 of being attached to those trailers, semitrailers, or pole
19 trailers as a part thereof. In lieu of a person providing
20 documentation regarding the qualifying use of each individual
21 trailer, semitrailer, or pole trailer, that person may
22 document such qualifying use by providing documentation of the
23 following:
24 (1) If a trailer, semitrailer, or pole trailer is
25 dedicated to a motor vehicle that qualifies as rolling
26 stock moving in interstate commerce under subsection (c)
SB2027 - 65 - LRB104 03451 HLH 13474 b
SB2027- 66 -LRB104 03451 HLH 13474 b SB2027 - 66 - LRB104 03451 HLH 13474 b
SB2027 - 66 - LRB104 03451 HLH 13474 b
1 of this Section, then that trailer, semitrailer, or pole
2 trailer qualifies as rolling stock moving in interstate
3 commerce under this subsection.
4 (2) If a trailer, semitrailer, or pole trailer is
5 dedicated to a group of motor vehicles that all qualify as
6 rolling stock moving in interstate commerce under
7 subsection (c) of this Section, then that trailer,
8 semitrailer, or pole trailer qualifies as rolling stock
9 moving in interstate commerce under this subsection.
10 (3) If one or more trailers, semitrailers, or pole
11 trailers are dedicated to a group of motor vehicles and
12 not all of those motor vehicles in that group qualify as
13 rolling stock moving in interstate commerce under
14 subsection (c) of this Section, then the percentage of
15 those trailers, semitrailers, or pole trailers that
16 qualifies as rolling stock moving in interstate commerce
17 under this subsection is equal to the percentage of those
18 motor vehicles in that group that qualify as rolling stock
19 moving in interstate commerce under subsection (c) of this
20 Section to which those trailers, semitrailers, or pole
21 trailers are dedicated. However, to determine the
22 qualification for the exemption provided under this item
23 (3), the mathematical application of the qualifying
24 percentage to one or more trailers, semitrailers, or pole
25 trailers under this subpart shall not be allowed as to any
26 fraction of a trailer, semitrailer, or pole trailer.
SB2027 - 66 - LRB104 03451 HLH 13474 b
SB2027- 67 -LRB104 03451 HLH 13474 b SB2027 - 67 - LRB104 03451 HLH 13474 b
SB2027 - 67 - LRB104 03451 HLH 13474 b
1 (d-5) For motor vehicles and trailers purchased on or
2 after July 1, 2017, "use as rolling stock moving in interstate
3 commerce" means that:
4 (1) the motor vehicle or trailer is used to transport
5 persons or property for hire;
6 (2) for purposes of the exemption under paragraph (13)
7 of Section 2-5, the purchaser who is an owner, lessor, or
8 shipper claiming the exemption certifies that the motor
9 vehicle or trailer will be utilized, from the time of
10 purchase and continuing through the statute of limitations
11 for issuing a notice of tax liability under this Act, by an
12 interstate carrier or carriers for hire who hold, and are
13 required by Federal Motor Carrier Safety Administration
14 regulations to hold, an active USDOT Number with the
15 Carrier Operation listed as "Interstate" and the Operation
16 Classification listed as "authorized for hire", "exempt
17 for hire", or both "authorized for hire" and "exempt for
18 hire"; except that this paragraph (2) does not apply to a
19 motor vehicle or trailer used at an airport to support the
20 operation of an aircraft moving in interstate commerce, as
21 long as (i) in the case of a motor vehicle, the motor
22 vehicle meets paragraphs (1) and (3) of this subsection
23 (d-5) or (ii) in the case of a trailer, the trailer meets
24 paragraph (1) of this subsection (d-5); and
25 (3) for motor vehicles, the gross vehicle weight
26 rating exceeds 16,000 pounds.
SB2027 - 67 - LRB104 03451 HLH 13474 b
SB2027- 68 -LRB104 03451 HLH 13474 b SB2027 - 68 - LRB104 03451 HLH 13474 b
SB2027 - 68 - LRB104 03451 HLH 13474 b
1 The definition of "use as rolling stock moving in
2 interstate commerce" in this subsection (d-5) applies to all
3 property purchased on or after July 1, 2017 for the purpose of
4 being attached to a motor vehicle or trailer as a part thereof,
5 regardless of whether the motor vehicle or trailer was
6 purchased before, on, or after July 1, 2017.
7 If an item ceases to meet requirements (1) through (3)
8 under this subsection (d-5), then the tax is imposed on the
9 selling price, allowing for a reasonable depreciation for the
10 period during which the item qualified for the exemption.
11 For purposes of this subsection (d-5):
12 "Motor vehicle" excludes limousines, but otherwise
13 means that term as defined in Section 1-146 of the
14 Illinois Vehicle Code.
15 "Trailer" means (i) "trailer", as defined in Section
16 1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as
17 defined in Section 1-187 of the Illinois Vehicle Code, and
18 (iii) "pole trailer", as defined in Section 1-161 of the
19 Illinois Vehicle Code.
20 (e) For aircraft and watercraft purchased on or after
21 January 1, 2014, "use as rolling stock moving in interstate
22 commerce" in paragraph (13) of Section 2-5 occurs when, during
23 a 12-month period, the rolling stock has carried persons or
24 property for hire in interstate commerce for greater than 50%
25 of its total trips for that period or for greater than 50% of
26 its total miles for that period. The person claiming the
SB2027 - 68 - LRB104 03451 HLH 13474 b
SB2027- 69 -LRB104 03451 HLH 13474 b SB2027 - 69 - LRB104 03451 HLH 13474 b
SB2027 - 69 - LRB104 03451 HLH 13474 b
1 exemption shall make an election at the time of purchase to use
2 either the trips or mileage method and document that election
3 in their books and records. If no election is made under this
4 subsection to use the trips or mileage method, the person
5 shall be deemed to have chosen the mileage method. For
6 aircraft, flight hours may be used in lieu of recording miles
7 in determining whether the aircraft meets the mileage test in
8 this subsection. For watercraft, nautical miles or trip hours
9 may be used in lieu of recording miles in determining whether
10 the watercraft meets the mileage test in this subsection.
11 Notwithstanding any other provision of law to the
12 contrary, property purchased on or after January 1, 2014 for
13 the purpose of being attached to aircraft or watercraft as a
14 part thereof qualifies as rolling stock moving in interstate
15 commerce only if the aircraft or watercraft to which it will be
16 attached qualifies as rolling stock moving in interstate
17 commerce under the test set forth in this subsection (e),
18 regardless of when the aircraft or watercraft was purchased.
19 Persons who purchased aircraft or watercraft prior to January
20 1, 2014 shall make an election to use either the trips or
21 mileage method and document that election in their books and
22 records for the purpose of determining whether property
23 purchased on or after January 1, 2014 for the purpose of being
24 attached to aircraft or watercraft as a part thereof qualifies
25 as rolling stock moving in interstate commerce under this
26 subsection (e).
SB2027 - 69 - LRB104 03451 HLH 13474 b
SB2027- 70 -LRB104 03451 HLH 13474 b SB2027 - 70 - LRB104 03451 HLH 13474 b
SB2027 - 70 - LRB104 03451 HLH 13474 b
1 (f) The election to use either the trips or mileage method
2 made under the provisions of subsections (c), (d), or (e) of
3 this Section will remain in effect for the duration of the
4 purchaser's ownership of that item.
5 (Source: P.A. 100-321, eff. 8-24-17.)
6 Section 25. The Illinois Vehicle Code is amended by
7 changing Section 3-1001 as follows:
8 (625 ILCS 5/3-1001) (from Ch. 95 1/2, par. 3-1001)
9 Sec. 3-1001. A tax is hereby imposed on the privilege of
10 using, in this State, any motor vehicle as defined in Section
11 1-146 of this Code acquired by gift, transfer, or purchase,
12 and having a year model designation preceding the year of
13 application for title by 5 or fewer years prior to October 1,
14 1985 and 10 or fewer years on and after October 1, 1985 and
15 prior to January 1, 1988. On and after January 1, 1988, the tax
16 shall apply to all motor vehicles without regard to model
17 year. Except that the tax shall not apply:
18 (i) if the use of the motor vehicle is otherwise taxed
19 under the Use Tax Act;
20 (ii) if the motor vehicle is bought and used by a
21 governmental agency or a society, association, foundation
22 or institution organized and operated exclusively for
23 charitable, religious or educational purposes;
24 (iii) if the use of the motor vehicle is not subject to
SB2027 - 70 - LRB104 03451 HLH 13474 b
SB2027- 71 -LRB104 03451 HLH 13474 b SB2027 - 71 - LRB104 03451 HLH 13474 b
SB2027 - 71 - LRB104 03451 HLH 13474 b
1 the Use Tax Act by reason of subsection (a), (b), (c), (d),
2 (e) or (f) of Section 3-55 of that Act dealing with the
3 prevention of actual or likely multistate taxation;
4 (iv) to implements of husbandry;
5 (v) when a junking certificate is issued pursuant to
6 Section 3-117(a) of this Code;
7 (vi) when a vehicle is subject to the replacement
8 vehicle tax imposed by Section 3-2001 of this Act;
9 (vii) when the transfer is a gift to a beneficiary in
10 the administration of an estate and the beneficiary is a
11 surviving spouse; .
12 (viii) if the motor vehicle is purchased for the
13 purpose of resale by a retailer registered under Section
14 2a of the Retailers' Occupation Tax Act.
15 Prior to January 1, 1988, the rate of tax shall be 5% of
16 the selling price for each purchase of a motor vehicle covered
17 by Section 3-1001 of this Code. Except as hereinafter
18 provided, beginning January 1, 1988 and until January 1, 2022,
19 the rate of tax shall be as follows for transactions in which
20 the selling price of the motor vehicle is less than $15,000:
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
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
SB2027 - 71 - LRB104 03451 HLH 13474 b
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
SB2027- 72 -LRB104 03451 HLH 13474 b SB2027 - 72 - LRB104 03451 HLH 13474 b
SB2027 - 72 - LRB104 03451 HLH 13474 b
151152690378048655950610407over 1025 1 5 115 2 6 90 3 7 80 4 8 65 5 9 50 6 10 40 7 over 10 25
1 5 115
2 6 90
3 7 80
4 8 65
5 9 50
6 10 40
7 over 10 25
8 Except as hereinafter provided, beginning January 1, 1988 and
9 until January 1, 2022, the rate of tax shall be as follows for
10 transactions in which the selling price of the motor vehicle
11 is $15,000 or more:
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
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
17 Except as hereinafter provided, beginning on January 1,
18 2022, the rate of tax shall be as follows for transactions in
19 which the selling price of the motor vehicle is less than
20 $15,000:
21 (1) if one year or less has transpired after the model
22 year of the vehicle, then the applicable tax is $465;
23 (2) if 2 years have transpired after the model year of
24 the motor vehicle, then the applicable tax is $365;
25 (3) if 3 years have transpired after the model year of
26 the motor vehicle, then the applicable tax is $290;
SB2027 - 72 - LRB104 03451 HLH 13474 b
1 5 115
2 6 90
3 7 80
4 8 65
5 9 50
6 10 40
7 over 10 25
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
SB2027- 73 -LRB104 03451 HLH 13474 b SB2027 - 73 - LRB104 03451 HLH 13474 b
SB2027 - 73 - LRB104 03451 HLH 13474 b
1 (4) if 4 years have transpired after the model year of
2 the motor vehicle, then the applicable tax is $240;
3 (5) if 5 years have transpired after the model year of
4 the motor vehicle, then the applicable tax is $190;
5 (6) if 6 years have transpired after the model year of
6 the motor vehicle, then the applicable tax is $165;
7 (7) if 7 years have transpired after the model year of
8 the motor vehicle, then the applicable tax is $155;
9 (8) if 8 years have transpired after the model year of
10 the motor vehicle, then the applicable tax is $140;
11 (9) if 9 years have transpired after the model year of
12 the motor vehicle, then the applicable tax is $125;
13 (10) if 10 years have transpired after the model year
14 of the motor vehicle, then the applicable tax is $115; and
15 (11) if more than 10 years have transpired after the
16 model year of the motor vehicle, then the applicable tax
17 is $100.
18 Except as hereinafter provided, beginning on January 1,
19 2022, the rate of tax shall be as follows for transactions in
20 which the selling price of the motor vehicle is $15,000 or
21 more:
22 (1) if the selling price is $15,000 or more, but less
23 than $20,000, then the applicable tax shall be $850;
24 (2) if the selling price is $20,000 or more, but less
25 than $25,000, then the applicable tax shall be $1,100;
26 (3) if the selling price is $25,000 or more, but less
SB2027 - 73 - LRB104 03451 HLH 13474 b
SB2027- 74 -LRB104 03451 HLH 13474 b SB2027 - 74 - LRB104 03451 HLH 13474 b
SB2027 - 74 - LRB104 03451 HLH 13474 b
1 than $30,000, then the applicable tax shall be $1,350;
2 (4) if the selling price is $30,000 or more, but less
3 than $50,000, then the applicable tax shall be $1,600;
4 (5) if the selling price is $50,000 or more, but less
5 than $100,000, then the applicable tax shall be $2,600;
6 (6) if the selling price is $100,000 or more, but less
7 than $1,000,000, then the applicable tax shall be $5,100;
8 and
9 (7) if the selling price is $1,000,000 or more, then
10 the applicable tax shall be $10,100.
11 For the following transactions, the tax rate shall be $15 for
12 each motor vehicle acquired in such transaction:
13 (i) when the transferee or purchaser is the spouse,
14 mother, father, brother, sister or child of the
15 transferor;
16 (ii) when the transfer is a gift to a beneficiary in
17 the administration of an estate, including, but not
18 limited to, the administration of an inter vivos trust
19 that became irrevocable upon the death of a grantor, and
20 the beneficiary is not a surviving spouse;
21 (iii) when a motor vehicle which has once been
22 subjected to the Illinois retailers' occupation tax or use
23 tax is transferred in connection with the organization,
24 reorganization, dissolution or partial liquidation of an
25 incorporated or unincorporated business wherein the
26 beneficial ownership is not changed.
SB2027 - 74 - LRB104 03451 HLH 13474 b
SB2027- 75 -LRB104 03451 HLH 13474 b SB2027 - 75 - LRB104 03451 HLH 13474 b
SB2027 - 75 - LRB104 03451 HLH 13474 b
1 A claim that the transaction is taxable under subparagraph
2 (i) shall be supported by such proof of family relationship as
3 provided by rules of the Department.
4 For a transaction in which a motorcycle, motor driven
5 cycle or moped is acquired the tax rate shall be $25.
6 On and after October 1, 1985 and until January 1, 2022,
7 1/12 of $5,000,000 of the moneys received by the Department of
8 Revenue pursuant to this Section shall be paid each month into
9 the Build Illinois Fund; on and after January 1, 2022, 1/12 of
10 $40,000,000 of the moneys received by the Department of
11 Revenue pursuant to this Section shall be paid each month into
12 the Build Illinois Fund; and the remainder shall be paid into
13 the General Revenue Fund.
14 The tax imposed by this Section shall be abated and no
15 longer imposed when the amount deposited to secure the bonds
16 issued pursuant to the Build Illinois Bond Act is sufficient
17 to provide for the payment of the principal of, and interest
18 and premium, if any, on the bonds, as certified to the State
19 Comptroller and the Director of Revenue by the Director of the
20 Governor's Office of Management and Budget.
21 (Source: P.A. 102-353, eff. 1-1-22; 102-762, eff. 5-13-22.)
SB2027 - 75 - LRB104 03451 HLH 13474 b