Rolling Stock Exemption Changes

              Beginning July 1, 2004, the rolling
stock exemption qualifications for
second division motor vehicles and
trailers, semitrailers, and pole trailers
have changed. These same qualifica-tions
apply to purchases of repair and
replacement parts. For more informa-tion,
see 86 Illinois Administrative
Code 130.340.
Note: The rolling stock exemption
requirements for purchases of aircraft,
watercraft, and rail carrier items (and
any subsequent repair and
replacement parts) have not changed.
Definitions
We have used the generic terms
“motor vehicle” and “trailer” throughout
this bulletin. Definitions for both of
these terms are shown below.
The term “motor vehicle” means a
second division motor vehicle as
defined in Section 1-146 of the
Illinois Vehicle Code.
The term “trailer” means a trailer as
defined in Section 1-209 of the
Illinois Vehicle Code, a semitrailer
as defined in Section 1-187 of the
Illinois Vehicle Code, and a pole
trailer as defined in Section 1-161
of the Illinois Vehicle Code.
Changes to rolling stock
exemption qualifications
Motor vehicle gross vehicle
weight rating
Rolling Stock Exemption Changes
For information
or forms...
To:
All purchasers who will claim the rolling stock exemption
and all retailers who must document the exemption
Call us at:
1 800 732-8866 or
217 782-3336
Call our TDD
(telecommunications device
for the deaf) at:
1 800 544-5304
Write us at:
Illinois Department of Revenue
P.O. Box 19044
Springfield, IL 62794-9044
Visit our Web site at:
www.ILtax.com
Call
our 24-hour
Forms Order Line at:
1 800 356-6302
Brian A. Hamer
Director of Revenue
Printed by authority of the State of Illinois
250,000 copies - 7/04
A motor vehicle must have a gross
vehicle weight rating (GVWR)
greater than 16,000 pounds. The
GVWR is the weight identified by
the manufacturer or manufacturers
as the maximum loaded weight that
the motor vehicle can carry safely.
more than 50 percent of total
trips or mileage test
A motor vehicle or trailer must
carry persons or property for hire in
interstate commerce for either
— more than 50 percent of its total
trips in a 12-month period, or
— more than 50 percent of its total
miles in a 12-month period.
Qualifying trips or miles in inter-state
commerce change
Trips or mileage of a motor vehicle
or trailer for which persons or
property are carried for hire just
between points in Illinois may be
used to qualify for the exemption if
the journey of the passenger or
shipment of the property either
originates or terminates outside
Illinois.
Trip method or mileage
method documentation
For each motor vehicle or trailer, you
must identify which method you will use
to qualify for the rolling stock exemption
— the trip method or the mileage
method. Once made, this election
cannot be changed.
This bulletin is written to
inform you of recent
changes; it does not replace
statutes, rules and regula-tions,
or court decisions.
Miscellaneous Sales and Use Tax Changes
Illinois Department of Revenue
Informational Bulletin
Stock Exemption Changes
Illinois Department of Revenue
Informational Bulletin July 2004
FY 2005-01