95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0455


 
Introduced 2/8/2007, by Sen. James F. Clayborne, Jr. - William R. Haine
 
SYNOPSIS AS INTRODUCED:
 		













35 ILCS 105/3-6 new






35 ILCS 110/3-6 new






35 ILCS 115/3-6 new






35 ILCS 120/2-5.6 new










    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Exempts the use or sale of certain aircraft and aircraft parts and materials. Provides that the sunset provisions under the Acts do not apply to these exemptions. Effective immediately.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











SB0455

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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 adding Section 3-6 
5
as follows:
 
6
    (35 ILCS 105/3-6  new)
7
    Sec. 3-6. Exemptions for certain aircraft, parts, and 
8
materials.
9
    (a) Beginning on July 1, 2007, no tax is imposed under this 
10
Act on the use of the following items by a domestic air 
11
carrier:
12
        (1) an aircraft that has a maximum certificated takeoff 
13
    weight of at least 6,000 pounds that is used solely in the 
14
    transport of air cargo, passengers, or a combination of air 
15
    cargo and passengers; and
16
        (2) parts and materials, excluding shop equipment and 
17
    fuel, affixed or to be affixed to an aircraft that has a 
18
    maximum certificated takeoff weight of at least 6,000 
19
    pounds that is used solely in the transport of air cargo, 
20
    passengers, or a combination of air cargo and passengers.
21
    (b) Beginning on July 1, 2007, no tax is imposed under this 
22
Act on the use of parts and materials, excluding shop equipment 
23
and fuel, that are affixed to an aircraft that meets all of the 
 


 






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1
following conditions:
2
        (1) the aircraft leaves the State within 15 days after 
3
    the occurrence of the sooner of (i) the issuance of the 
4
    finial billing or (ii) the authorized approval for final 
5
    return to service, completion of the maintenance record 
6
    entry, and completion of the test flight and ground test 
7
    for inspection, as required by 14 C.F.R. 91.407;
8
        (2) the aircraft is not based or registered in this 
9
    State before the parts or materials are affixed to the 
10
    aircraft;  and
11
        (3) the aircraft is not based or registered in this 
12
    State after the parts or materials are affixed to the 
13
    aircraft.
14
    (c) Beginning on July 1, 2007, no tax is imposed under this 
15
Act on the use of an aircraft that is temporarily located in 
16
this State for the purpose of a prepurchase evaluation or the 
17
purpose of a post-sale customization if all of the following 
18
conditions are met:
19
        (1) the aircraft leaves the State within 15 days after 
20
    the occurrence of the sooner of (i) the issuance of the 
21
    finial billing or (ii) the authorized approval for final 
22
    return to service, completion of the maintenance record 
23
    entry, and completion of the test flight and ground test 
24
    for inspection, as required by 14 C.F.R. 91.407;

25
        (2) the aircraft is not based or registered in this 
26
    State before the prepurchase evaluation or post-sale 
 


 






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1
    customization;  and
2
        (3) the aircraft is not based or registered in this 
3
    State after the prepurchase evaluation or post-sale 
4
    customization.
5
    (d) Beginning on July 1, 2007, no tax is imposed under this 
6
Act on the use of an aircraft that is sold to a person for a 
7
subsequent lease to a domestic air carrier that is operating 
8
under a certificate issued by the Federal Aviation 
9
Administration under 14 C.F.R. 121 and that will use the 
10
aircraft solely in the regularly-scheduled transport of 
11
passengers.
12
    (e) For the purposes of this Section:
13
    "Based in this State" means hangared or stored in Illinois 
14
for not less than 10 days in not less than 3 nonconsecutive 
15
months during the immediately preceding period.
16
    "Domestic air carrier" means only those entities that are 
17
engaged primarily, as a business activity, in the commercial 
18
transport for hire of air cargo, passengers, or a combination 
19
of air cargo and passengers.
20
    "Prepurchase evaluation" means an examination of an 
21
aircraft to provide a potential purchaser with information 
22
relevant to the potential purchase.
23
    "Post-sale customization" means an improvement, 
24
maintenance, or repair that is performed on an aircraft 
25
following a transfer of ownership of the aircraft.
26
    (f) This Section is exempt from the provisions of Section 
 


 






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1
3-90.

 
2
    Section 10. The Service Use Tax Act is amended  by adding 
3
Section 3-6 as follows:
 
4
    (35 ILCS 110/3-6  new)
5
    Sec. 3-6. Exemptions for certain aircraft, parts, and 
6
materials.
7
    (a) Beginning on July 1, 2007, no tax is imposed under this 
8
Act on the use of the following items by a domestic air 
9
carrier:
10
        (1) an aircraft that has a maximum certificated takeoff 
11
    weight of at least 6,000 pounds that is used solely in the 
12
    transport of air cargo, passengers, or a combination of air 
13
    cargo and passengers; and
14
        (2) parts and materials, excluding shop equipment and 
15
    fuel, affixed or to be affixed to an aircraft that has a 
16
    maximum certificated takeoff weight of at least 6,000 
17
    pounds that is used solely in the transport of air cargo, 
18
    passengers, or a combination of air cargo and passengers.
19
    (b) Beginning on July 1, 2007, no tax is imposed under this 
20
Act on the use of parts and materials, excluding shop equipment 
21
and fuel, that are affixed to an aircraft that meets all of the 
22
following conditions:
23
        (1) the aircraft leaves the State within 15 days after 
24
    the occurrence of the sooner of (i) the issuance of the 
 


 






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1
    finial billing or (ii) the authorized approval for final 
2
    return to service, completion of the maintenance record 
3
    entry, and completion of the test flight and ground test 
4
    for inspection, as required by 14 C.F.R. 91.407;
5
        (2) the aircraft is not based or registered in this 
6
    State before the parts or materials are affixed to the 
7
    aircraft;  and
8
        (3) the aircraft is not based or registered in this 
9
    State after the parts or materials are affixed to the 
10
    aircraft.
11
    (c) Beginning on July 1, 2007, no tax is imposed under this 
12
Act on the use of an aircraft that is temporarily located in 
13
this State for the purpose of a prepurchase evaluation or the 
14
purpose of a post-sale customization if all of the following 
15
conditions are met:
16
        (1) the aircraft leaves the State within 15 days after 
17
    the occurrence of the sooner of (i) the issuance of the 
18
    finial billing or (ii) the authorized approval for final 
19
    return to service, completion of the maintenance record 
20
    entry, and completion of the test flight and ground test 
21
    for inspection, as required by 14 C.F.R. 91.407;

22
        (2) the aircraft is not based or registered in this 
23
    State before the prepurchase evaluation or post-sale 
24
    customization;  and
25
        (3) the aircraft is not based or registered in this 
26
    State after the prepurchase evaluation or post-sale 
 


 






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1
    customization.
2
    (d) Beginning on July 1, 2007, no tax is imposed under this 
3
Act on the use of an aircraft that is sold to a person for a 
4
subsequent lease to a domestic air carrier that is operating 
5
under a certificate issued by the Federal Aviation 
6
Administration under 14 C.F.R. 121 and that will use the 
7
aircraft solely in the regularly-scheduled transport of 
8
passengers.
9
    (e) For the purposes of this Section:
10
    "Based in this State" means hangared or stored in Illinois 
11
for not less than 10 days in not less than 3 nonconsecutive 
12
months during the immediately preceding period.
13
    "Domestic air carrier" means only those entities that are 
14
engaged primarily, as a business activity, in the commercial 
15
transport for hire of air cargo, passengers, or a combination 
16
of air cargo and passengers.
17
    "Prepurchase evaluation" means an examination of an 
18
aircraft to provide a potential purchaser with information 
19
relevant to the potential purchase.
20
    "Post-sale customization" means an improvement, 
21
maintenance, or repair that is performed on an aircraft 
22
following a transfer of ownership of the aircraft.
23
    (f) This Section is exempt from the provisions of Section 
24
3-75.

 
25
    Section 15. The Service Occupation Tax Act is amended  by 
 


 






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1
adding Section 3-6 as follows:
 
2
    (35 ILCS 115/3-6  new)
3
    Sec. 3-6. Exemptions for certain aircraft, parts, and 
4
materials.
5
    (a) Beginning on July 1, 2007, no tax is imposed under this 
6
Act on the sale of the following items by a domestic air 
7
carrier:
8
        (1) an aircraft that has a maximum certificated takeoff 
9
    weight of at least 6,000 pounds that is used solely in the 
10
    transport of air cargo, passengers, or a combination of air 
11
    cargo and passengers; and
12
        (2) parts and materials, excluding shop equipment and 
13
    fuel, affixed or to be affixed to an aircraft that has a 
14
    maximum certificated takeoff weight of at least 6,000 
15
    pounds that is used solely in the transport of air cargo, 
16
    passengers, or a combination of air cargo and passengers.
17
    (b) Beginning on July 1, 2007, no tax is imposed under this 
18
Act on the sale of parts and materials, excluding shop 
19
equipment and fuel, that are affixed to an aircraft that meets 
20
all of the following conditions:
21
        (1) the aircraft leaves the State within 15 days after 
22
    the occurrence of the sooner of (i) the issuance of the 
23
    finial billing or (ii) the authorized approval for final 
24
    return to service, completion of the maintenance record 
25
    entry, and completion of the test flight and ground test 
 


 






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1
    for inspection, as required by 14 C.F.R. 91.407;
2
        (2) the aircraft is not based or registered in this 
3
    State before the parts or materials are affixed to the 
4
    aircraft;  and
5
        (3) the aircraft is not based or registered in this 
6
    State after the parts or materials are affixed to the 
7
    aircraft.
8
    (c) Beginning on July 1, 2007, no tax is imposed under this 
9
Act on the sale of an aircraft that is temporarily located in 
10
this State for the purpose of a prepurchase evaluation or the 
11
purpose of a post-sale customization if all of the following 
12
conditions are met:
13
        (1) the aircraft leaves the State within 15 days after 
14
    the occurrence of the sooner of (i) the issuance of the 
15
    finial billing or (ii) the authorized approval for final 
16
    return to service, completion of the maintenance record 
17
    entry, and completion of the test flight and ground test 
18
    for inspection, as required by 14 C.F.R. 91.407;

19
        (2) the aircraft is not based or registered in this 
20
    State before the prepurchase evaluation or post-sale 
21
    customization;  and
22
        (3) the aircraft is not based or registered in this 
23
    State after the prepurchase evaluation or post-sale 
24
    customization.
25
    (d) Beginning on July 1, 2007, no tax is imposed under this 
26
Act on the sale of an aircraft that is sold to a person for a 
 


 






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1
subsequent lease to a domestic air carrier that is operating 
2
under a certificate issued by the Federal Aviation 
3
Administration under 14 C.F.R. 121 and that will use the 
4
aircraft solely in the regularly-scheduled transport of 
5
passengers.
6
    (e) For the purposes of this Section:
7
    "Based in this State" means hangared or stored in Illinois 
8
for not less than 10 days in not less than 3 nonconsecutive 
9
months during the immediately preceding period.
10
    "Domestic air carrier" means only those entities that are 
11
engaged primarily, as a business activity, in the commercial 
12
transport for hire of air cargo, passengers, or a combination 
13
of air cargo and passengers.
14
    "Prepurchase evaluation" means an examination of an 
15
aircraft to provide a potential purchaser with information 
16
relevant to the potential purchase.
17
    "Post-sale customization" means an improvement, 
18
maintenance, or repair that is performed on an aircraft 
19
following a transfer of ownership of the aircraft.
20
    (f) This Section is exempt from the provisions of Section 
21
3-55.

 
22
    Section 20. The Retailers' Occupation Tax Act is amended  by 
23
adding Section 2-5.6 as follows:
 
24
    (35 ILCS 120/2-5.6  new)
 


 






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1
    Sec. 2-5.6. Exemptions for certain aircraft, parts, and 
2
materials.
3
    (a) Beginning on July 1, 2007, no tax is imposed under this 
4
Act on the sale of the following items by a domestic air 
5
carrier:
6
        (1) an aircraft that has a maximum certificated takeoff 
7
    weight of at least 6,000 pounds that is used solely in the 
8
    transport of air cargo, passengers, or a combination of air 
9
    cargo and passengers; and
10
        (2) parts and materials, excluding shop equipment and 
11
    fuel, affixed or to be affixed to an aircraft that has a 
12
    maximum certificated takeoff weight of at least 6,000 
13
    pounds that is used solely in the transport of air cargo, 
14
    passengers, or a combination of air cargo and passengers.
15
    (b) Beginning on July 1, 2007, no tax is imposed under this 
16
Act on the sale of parts and materials, excluding shop 
17
equipment and fuel, that are affixed to an aircraft that meets 
18
all of the following conditions:
19
        (1) the aircraft leaves the State within 15 days after 
20
    the occurrence of the sooner of (i) the issuance of the 
21
    finial billing or (ii) the authorized approval for final 
22
    return to service, completion of the maintenance record 
23
    entry, and completion of the test flight and ground test 
24
    for inspection, as required by 14 C.F.R. 91.407;
25
        (2) the aircraft is not based or registered in this 
26
    State before the parts or materials are affixed to the 
 


 






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1
    aircraft;  and
2
        (3) the aircraft is not based or registered in this 
3
    State after the parts or materials are affixed to the 
4
    aircraft.
5
    (c) Beginning on July 1, 2007, no tax is imposed under this 
6
Act on the sale of an aircraft that is temporarily located in 
7
this State for the purpose of a prepurchase evaluation or the 
8
purpose of a post-sale customization if all of the following 
9
conditions are met:
10
        (1) the aircraft leaves the State within 15 days after 
11
    the occurrence of the sooner of (i) the issuance of the 
12
    finial billing or (ii) the authorized approval for final 
13
    return to service, completion of the maintenance record 
14
    entry, and completion of the test flight and ground test 
15
    for inspection, as required by 14 C.F.R. 91.407;

16
        (2) the aircraft is not based or registered in this 
17
    State before the prepurchase evaluation or post-sale 
18
    customization;  and
19
        (3) the aircraft is not based or registered in this 
20
    State after the prepurchase evaluation or post-sale 
21
    customization.
22
    (d) Beginning on July 1, 2007, no tax is imposed under this 
23
Act on the sale of an aircraft that is sold to a person for a 
24
subsequent lease to a domestic air carrier that is operating 
25
under a certificate issued by the Federal Aviation 
26
Administration under 14 C.F.R. 121 and that will use the 
 


 






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1
aircraft solely in the regularly-scheduled transport of 
2
passengers.
3
    (e) For the purposes of this Section:
4
    "Based in this State" means hangared or stored in Illinois 
5
for not less than 10 days in not less than 3 nonconsecutive 
6
months during the immediately preceding period.
7
    "Domestic air carrier" means only those entities that are 
8
engaged primarily, as a business activity, in the commercial 
9
transport for hire of air cargo, passengers, or a combination 
10
of air cargo and passengers.
11
    "Prepurchase evaluation" means an examination of an 
12
aircraft to provide a potential purchaser with information 
13
relevant to the potential purchase.
14
    "Post-sale customization" means an improvement, 
15
maintenance, or repair that is performed on an aircraft 
16
following a transfer of ownership of the aircraft.
17
    (f) This Section is exempt from the provisions of Section 
18
2-70.

 

19
    Section 99. Effective date. This Act takes effect upon 
20
becoming law.