Illinois – Amended Aircraft Fuel Exemption

SALT Report 2873 – The Illinois General Assembly enacted legislation that amends the exemption for fuel and petroleum products sold to, or used by, air carriers.  Therefore, effective July 1, 2013, petroleum that is certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier is exempt from the Illinois use tax, service use tax, service occupation tax, and retailers’ occupation tax, if the flight:

  • Is engaged in foreign trade, or
  • Is engaged in trade between the United States and any of its possessions, and
  • Transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft

Prior to these amendments the exemption only applied to fuel and petroleum products that were sold to, or used by an air common carrier and certified to be used for consumption, shipment, or storage for a flight destined for, or returning from, a location or locations outside the United States without regard to previous or subsequent domestic stopovers.

For Further Information

Illinois General Assembly – House Bill 2499, Laws 2013