Bill > SB1406

This bill amends several tax-related acts in Illinois to modify how "rolling stock moving in interstate commerce" is defined for aircraft purchased on or after January 1, 2025. Specifically, the bill extends the evaluation period for determining whether an aircraft qualifies as interstate rolling stock from 12 months to 24 months. Under the new provision, an aircraft will be considered rolling stock moving in interstate commerce if, during a 24-month period, it has carried persons or property for hire in interstate commerce for more than 50% of its total trips or total miles. The bill requires the person claiming the tax exemption to make an election at the time of purchase to use either the trips or mileage method for calculating interstate use, with flight hours able to be used in lieu of recording miles. If no election is made, the person will be deemed to have chosen the mileage method. The changes apply to four different tax acts: the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, ensuring consistent treatment of aircraft used in interstate commerce across different tax contexts. The bill is effective immediately upon enactment.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1406&GAID=18&DocTypeID=SB&SessionID=114&GA=104