PART 510 THE PUBLIC UTILITIES REVENUE ACT : Sections Listing

TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510 THE PUBLIC UTILITIES REVENUE ACT

AUTHORITY: Implementing the Public Utilities Revenue Act [35 ILCS 620] and authorized by Sections 2505-35 and 2505-795 of the Department of Revenue Law [20 ILCS 2505].

SOURCE: Illinois Public Utilities Tax Regulations, adopted March 11, 1937; codified at 8 Ill. Reg. 8616; amended at 11 Ill. Reg. 18759, effective October 30, 1987; amended at 16 Ill. Reg. 5990, effective March 31, 1992; amended at 47 Ill. Reg. 5820, effective April 4, 2023; amended at 47 Ill. Reg. 18748, effective November 28, 2023.

 

Section 510.101  Definitions

 

When used in these regulations, the following words and phrases shall have the meanings hereinafter defined [35 ILCS 620/1]:

 

"Act" means the Public Utilities Revenue Act [35 ILCS 620] (the Act).

 

"Consumer Price Index" means the Consumer Price Index For All Urban Consumers for all items published by the United States Department of Labor; provided that if this index no longer exists, the Department of Revenue shall prescribe the use of a comparable, substitute index.

 

"Department" means the Department of Revenue of the State of Illinois.

 

"Director" means the Director of Revenue for the Department of Revenue of the State of Illinois.

 

"Distributing electricity" means delivering electric energy to an end user over facilities owned, leased, or controlled by the taxpayer.

 

The phrase "gross receipts" means the consideration received for electricity distributed, supplied, furnished or sold to persons for use or consumption and not for resale, and for all services (including the transmission of electricity for an end-user) rendered in connection therewith, and includes cash, services and property of every kind or nature, and shall be determined without any deduction on account of the cost of the service, product or commodity supplied, the cost of materials used, labor or service costs, or any other expense whatsoever. (Section 1 of the Act)

 

"Gross receipts" shall not include receipts from:

 

any minimum or other charge for electricity or electric service where the customer has taken no kilowatt-hours of electricity;

 

any charge for a dishonored check;

 

any finance or credit charge, penalty or charge for delayed payment, or discount for prompt payment;

 

any charge for reconnection of service or for replacement or relocation of facilities;

 

any advance or contribution in aid of construction;

 

repair, inspection or servicing of equipment located on customer premises;

 

leasing or rental of equipment, the leasing or rental of which is not necessary to distributing, furnishing, supplying, selling or transporting electricity;

 

any sale to a customer if the taxpayer is prohibited by federal or State constitution, treaty, convention, statute or court decision from recovering the related tax liability from such customer; and

 

any charges added to customers' bills pursuant to the provisions of Section 9-221 or Section 9-222 of the Public Utilities Act, as amended or any charges added to customers' bills by taxpayers who are not subject to rate regulation by the Illinois Commerce Commission for the purpose of recovering any of the tax liabilities or other amount specified in such provisions of such Act.  In case credit is extended, the amount thereof shall be included only as and when payments are received.

 

"Gross Receipts" shall not include consideration received from business enterprises certified under Section 9-222.1 of the Public Utilities Act, as amended, to the extent of such exemption and during the period of time specified by the Department of Commerce and Economic Opportunity.  (Section 1 of the Act)

 

"Invested capital" in the case of an electric cooperative subject to the tax imposed by Section 2a.1 means an amount equal to the product determined by multiplying, (i) the average of the balances at the beginning and end of the taxable period of the taxpayer's total equity (including memberships, patronage capital, operating margins, non-operating margins, other margins and other equities), as set forth on the balance sheets included in the taxpayer's annual report to the United States Department of Agriculture Rural Utilities Services (established pursuant to the federal Rural Electrification Act of 1936, as amended), by (ii) the fraction determined under Sections 301 and 304(a) of the Illinois Income Tax Act, as amended, for the taxable period. 

 

"Person" means any natural individual, firm, trust, estate, partnership, association, joint stock company, joint adventure, corporation, limited liability company or a receiver, trustee, guardian or other representative appointed by order of any court, or any city, town, county or other political subdivision of this State. 

 

"Taxpayer" for purposes of the tax on the distribution of electricity imposed by the Act means an electric cooperative, an electric utility, or an alternative retail electric supplier (other than a person that is an alternative retail electric supplier solely pursuant to subsection (e) of Section 16-115 of the Public Utilities Act), as those terms are defined in the Public Utilities Act, engaged in the business of distributing electricity in this State for use or consumption and not for resale.

 

"Taxpayer" for purposes of the Public Utilities Revenue Tax means a person engaged in the business of distributing, supplying, furnishing, or selling electricity for use or consumption and not for resale.

 

"Taxable period" means each calendar year which ends after the effective date of the Act.  In the case of an electric cooperative subject to the tax imposed by Section 2a.1, "taxable period" means each calendar year ending after the effective date of the Act and covered by an annual report filed by the taxpayer with the United States Department of Agriculture Rural Utilities Services.  [35 ILCS 620/1]

 

"Units of local government" means counties, municipalities, townships, special districts, and units, designated as units of local government by law, which exercise limited governmental powers or powers in respect to limited governmental subjects, but does not include school districts.  For purposes of this definition, "municipalities" means cities, villages and incorporated towns.  (Ill. Const. Art. VII, § 1)

 

(Source:  Amended at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.105  Disposition of Tax Monies

 

All moneys received by the Department under Sections 2a.1 and 2a.2 shall be paid into the Personal Property Tax Replacement Fund in the State Treasury.  [35 ILCS 620/2a.2]

 

(Source:  Amended at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.110  Imposition of Tax

 

a)         Through December 31, 1997, there is imposed upon persons engaged in this State in the business of distributing, supplying, furnishing or selling electricity to persons, other than municipal corporations owning and operating a local transportation system for public service in this State, for use or consumption and not for resale, a tax at the rate of .32 cents per kilowatt-hour of all electricity which is so distributed, supplied, furnished, or sold or transmitted to or for each customer in the course of such business, or 5% of the gross receipts received from each customer from such business, whichever is the lower rate as applied to each customer for that customer's billing period, provided that any change in rate imposed by P.A. 84-1093 shall become effective only with bills having a meter reading date on or after January 1, 1986.  However, such taxes are not imposed with respect to any transaction in interstate commerce, or otherwise, to the extent to which such business may not, under the Constitution and statutes of the United States, be made the subject of taxation by this State. Nothing in P.A. 84-1093 shall impose a tax with respect to any transaction with respect to which no tax was imposed immediately preceding the effective date of P.A. 84-1093.  (Section 2 of the Act was repealed by P.A. 90-561, effective January 1, 1998)

 

b)         Imposition of Tax on Distribution of Electricity and Invested Capital beginning January 1, 1998

 

1)         Beginning January 1, 1998, in addition to the tax imposed by the Illinois Income Tax Act, there is hereby imposed upon every taxpayer (other than an electric cooperative, a school district or unit of local government as defined in Section 1 of Article VII of the Illinois Constitution of 1970), an additional tax as follows:

 

A)        for the first 500,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.031 cents per kilowatt-hour;

 

B)        for the next 1,000,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.050 cents per kilowatt-hour;

 

C)        for the next 2,500,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.070 cents per kilowatt-hour;

 

D)        for the next 4,000,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.140 cents per kilowatt-hour;

 

E)        for the next 7,000,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.180 cents per kilowatt-hour;

 

F)         for the next 3,000,000,000 kilowatt-hours distributed by the taxpayer in this State during the taxable period, 0.142 cents per kilowatt-hour; and

 

G)        for all kilowatt-hours distributed by the taxpayer in this State during the taxable period in excess of 18,000,000,000 kilowatt-hours, 0.131 cents per kilowatt-hour.

 

2)         Beginning January 1, 1998, there is imposed on electric cooperatives that are required to file reports with the Rural Utilities Service, a tax equal to 0.8% of such cooperative’s invested capital for the taxable period.  The invested capital tax imposed by this subsection shall not be imposed on electric cooperatives not required to file reports with the Rural Utilities Service.

 

3)         If, for any taxable period, the total amount received by the Department from the tax imposed by subsection (b)(1) exceeds $145,279,553 plus, for taxable periods subsequent to 1998, an amount equal to the lesser of (i) 5% or (ii) the percentage increase in the Consumer Price Index during the immediately preceding taxable period, of the total amount received by the Department from the tax imposed by subsection (b)(1) for the immediately preceding taxable period, determined after allowance of the credit provided for in this subsection, the Department shall issue credit memoranda in the aggregate amount of the excess to each of the taxpayers who paid any amount of tax under subsection (b)(1) for that taxable period in the proportion which the amount paid by the taxpayer bears to the total amount paid by all such taxpayers.  This calculation shall be made as of December 1 of the year following the immediately preceding taxable period and shall consist of only those returns with payment then on file with the Department.  All future amendments to returns and monies covering this period received after December 1 of the year following the taxable period will not be included in the calculation of the affected taxable period or any other taxable period.  The provisions of this subsection are not subject to the Uniform Penalty and Interest Act.  Any credit memorandum issued to a taxpayer under this subsection may be used as a credit by the taxpayer against its liability in future taxable periods for tax under subsection (b)(1).  Any amount credited to a taxpayer shall not be refunded to the taxpayer unless the taxpayer demonstrates to the reasonable satisfaction of the Department that it will not incur future liability for tax under subsection (b)(1).  [35 ILCS 620/2a.1]

 

c)         The tax imposed by the Act shall be in addition to all other occupation or privilege taxes imposed by the State of Illinois or by any municipal corporation or political subdivision thereof.  [35 ILCS 620/14]

 

(Source:  Amended at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.115  Effective Period of Act (Repealed)

 

(Source:  Repealed at 16 Ill. Reg. 5990, effective March 31, 1992)

 

Section 510.120  Returns

 

a)         A return with respect to the tax imposed by Section 2a.1 of the Act (See Section 510.110(b)(1) and (2)) shall be made by every person for any taxable period for which such person is liable for such tax.  Returns shall be due and shall be filed with the Department not later than the 15th day of the third month following the close of the taxable period.  A taxpayer making a return shall, at the time of making such return, pay to the Department the remaining amount of tax herein imposed and due for the taxable period.  Such return shall contain the following information:

 

1)         Taxpayer's name;

 

2)         Address of taxpayer's principal place of business, and address of the principal place of business (if that is a different address) from which the taxpayer engages in the business of distributing electricity in this State;

 

3)         The total equity, in the case of electric cooperatives, in the annual reports filed with the Rural Utilities Service for the taxable period;

 

4)         The total kilowatt-hours of electricity distributed by a taxpayer, other than an electric cooperative, in this State for the taxable period covered by the return; and

 

5)         The amount of tax due for the taxable period (computed on the basis of the amounts set forth in Items 3 and 4.  [35 ILCS 620/2a.2]

 

b)         Each taxpayer shall make estimated quarterly payments on the 15th day of the third, sixth, ninth and twelfth months of each taxable period.  Such estimated payments shall be 25% of the tax liability for the immediately preceding taxable period.

 

c)         If any payment provided for in this Section exceeds the taxpayer's liabilities under the Act, as shown on an original return, the taxpayer may credit such excess payment against liability subsequently to be remitted to the Department under the Act.  [35 ILCS 620/2a.2].

 

d)         Notwithstanding any other provision in the Act concerning the time within which a taxpayer may file a return, in the case of any taxpayer who ceases to engage in a kind of business which makes the taxpayer responsible for filing returns under the Act, such taxpayer shall file a final return under the Act with the Department not more than one month after discontinuing such business.

 

e)         The return is to be made on forms prescribed and furnished by the Department and must be signed by the taxpayer or the taxpayer's duly authorized agent for this purpose.  It is the duty of each taxpayer to obtain return forms, and failure to obtain such forms will not relieve a taxpayer from liability for any penalties attaching to failure to make any return.  Return forms may be found on the Department's website.  Returns may be submitted electronically on the Department's website at MyTax.Illinois.gov. 

 

f)         Any taxpayer who fails to make a return, or who makes a fraudulent return, or who willfully violates any other provision of the Act or any rule or regulation of the Department for the administration and enforcement of the Act, is guilty of a business offense and, upon conviction thereof, shall be fined not less than $750 nor more than $7,500.  [35 ILCS 620/13]

 

(Source:  Amended at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.125  Gross Amount of Transactions or Billings Basis of Tax (Repealed)

 

(Source:  Repealed at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.130  Certificate of Registration

 

a)         An application for a Certificate of Registration shall be filed with the Department by every person subject to the Public Utilities Revenue Tax Act.  The application to register must be made on a form prescribed and furnished by the Department on the Department's website.  Applications to register may be submitted electronically on the Department's website at MyTax.Illinois.gov. 

 

1)         Each application shall be signed and verified and shall state:

 

A)        the name and social security number of the applicant;

 

B)        the address of the retailer's principal place of business;

 

C)        the address of the place of business from which the taxpayer engages in the business of distributing electricity in this State and the addresses of all other places of business, if any (enumerating such addresses, if any, in a separate list attached to and made a part of the application) from which the retailer engages in the business of distributing electricity in this State;

 

D)        the name and address of the person or persons who will be responsible for filing returns and payment of taxes due under the Act;

 

E)        in the case of a publicly traded corporation, the name and title of the Chief Financial Officer, Chief Operating Officer, and any other officer or employee with responsibility for preparing tax returns under the Act; and, in the case of all other corporations, the name, title, and social security number of each corporate officer; and

 

F)         in the case of a limited liability company, the name, social security number, and FEIN of each manager and member.

 

2)         Upon completion of the form described in subsection (a)(1), the Department shall issue to the applicant a certificate of registration that shall permit the person to whom it is issued to engage in business as a distributor of electricity in this State.  If an applicant engages in the business of distributing electricity at another location in this State, the Department shall furnish the applicant with a sub-certificate of registration for that place of business, and the applicant shall display the appropriate sub-certificate of registration at that place of business.  The sub-certificate of registration shall bear the same registration number as that appearing upon the certificate of registration to which the sub-certificate relates.

 

3)         A certificate of registration will be valid until it has been revoked by the Department or the taxpayer files a final return.

 

4)         The Department may refuse to issue, reissue, or renew a certificate of registration, permit, or license authorized to be issued by the Department if a person who is named as the owner, a partner, a corporate officer, or, in the case of a limited liability company, a manager or member, of the applicant on the application for the certificate of registration, permit, or license is or has been named as the owner, a partner, a corporate officer, or, in the case of a limited liability company, a manager or member, on the application for the certificate of registration of a person that is in default for moneys due under the tax or fee Act upon which the certificate of registration, permit, or license is required or any other tax or fee Act administered by the Department.  For purposes of this Section only, in determining whether a person is in default for moneys due, the Department shall include only amounts established as a final liability within the 23 years prior to the date of the Department's notice of refusal to issue or reissue the certificate of registration, permit, or license.  [20 ILCS 2505/2505-380(b)]

 

5)         When a taxpayer to whom a certificate of registration is issued under the Act is in default to the State of Illinois for delinquent returns or for moneys due under the Act or any other State tax or fee Act or municipal or county ordinance administered or enforced by the Department, the Department shall, not less than 60 days before the expiration of the certificate of registration, give notice to the taxpayer to whom the certificate was issued, of the following:

 

A)        the account period of the delinquent returns;

 

B)        the amount of tax, penalty, and interest due and owing from the taxpayer; and

 

C)        that the certificate of registration shall not be automatically renewed upon its expiration date unless the taxpayer, on or before the date of expiration, has filed and paid the delinquent returns or paid the defaulted amount in full.

 

6)         The Department may approve renewal of a certificate by a taxpayer who is in default if, at the time of renewal, the taxpayer files all delinquent returns and pays the tax reflected on those returns, and the Department approves a payment plan for the taxpayer to satisfy all outstanding balances owing on returns that have been filed by the taxpayer.

 

b)         If any Certificate or Sub-Certificate is destroyed or defaced as a result of natural wear and tear, upon certification of this fact on a proper form to the Department, a duplicate copy or copies thereof will be issued to the taxpayer.

 

c)         Certificates of Registration are non-transferable and must be returned to the Department when the taxpayer's place of business is sold or discontinued.  Where the taxpayer's place of business is moved to another location, the Certificate must be removed and returned to the Department and the Department advised of such change in location.

 

d)         Any person aggrieved by any decision of the Department under this Section may, within 20 days after notice of the decision, protest and request a hearing pursuant to procedures outlined in 86 Ill. Adm. Code 200.  After receipt of the request for a hearing, the Department shall give notice to the person of the time and place fixed for the hearing, shall hold a hearing, and shall issue its final administrative decision in the matter to the person.  In the absence of a protest within 20 days, the Department's decision shall become final without any further determination being made or notice given.

 

(Source:  Amended at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.131  Enterprise Zone Exemption (Repealed)

 

(Source:  Repealed at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.135  Books and Records

 

a)         Every taxpayer under the Act shall keep books, records, papers, and other documents which are adequate to reflect the information which such taxpayers are required by Section 2a.2 of the Act to report to the Department by filing annual returns with the Department.  For purposes of this Section, "records" means all data maintained by the taxpayer, including data on paper, microfilm, microfiche or any type of machine-sensible data compilation.  [35 ILCS 620/7]

 

b)         All books and records and other papers and documents required by the Act to be kept shall be kept in the English language and shall, at all times during business hours of the day, be subject to inspection by the Department or its duly authorized agents and employees.  Books and records reflecting kilowatt-hours of electricity distributed during any period with respect to which the Department is authorized to establish liability, as provided in Section 5 of the Act, shall be preserved until the expiration of such period, unless the Department, in writing, authorizes their destruction or disposal at an earlier date.  [35 ILCS 620/7]

 

(Source:  Amended at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.140  Claims to Recover Erroneously Paid Tax

 

a)         If it appears, after a claim therefor filed with the Department, that an amount of tax or penalty or interest has been paid which was not due under the Act, whether as the result of a mistake of fact or an error of law, except as hereinafter provided, then the Department shall issue a credit memorandum or refund to the person who made the erroneous payment or, if that person has died or become a person under legal disability, to his or her legal representative, as such.

 

b)         As to any claim for credit or refund filed with the Department on or after each January 1 and July 1, no amounts erroneously paid more than 3 years prior to such January 1 and July 1, respectively, shall be credited or refunded, except that if both the Department and the taxpayer have agreed to an extension of time to issue a notice of tax liability under the Act, the claim may be filed at any time prior to the expiration of the period agreed upon.

 

c)         Beginning June 25, 2021, for any period included in a claim for credit or refund for which the statute of limitations for issuing a notice of tax liability under the Act will expire less than 6 months after the date a taxpayer files the claim for credit or refund, the statute of limitations is automatically extended for 6 months from the date it would have otherwise expired.

 

d)         If it is determined that the Department should issue a credit or refund under the Act, the Department may first apply the amount thereof against any amount of tax or penalty or interest due thereunder from the person entitled to such credit or refund.  Any credit memorandum issued under the Electricity Excise Tax Law may be applied against any liability incurred under the tax previously imposed by Section 2 of the Act.  For this purpose, if proceedings are pending to determine whether or not any tax or penalty or interest is due under the Act from such person, the Department may withhold issuance of the credit or refund pending the final disposition of such proceedings and may apply such credit or refund against any amount found to be due to the Department as a result of such proceedings.  The balance, if any, of the credit or refund shall be issued to the person entitled thereto.  

 

e)         If no tax or penalty or interest is due and no proceeding is pending to determine whether such person is indebted to the Department for tax or penalty or interest, the credit memorandum or refund shall be issued to the claimant; or (in the case of a credit memorandum) the credit memorandum may be assigned and set over by the lawful holder thereof, subject to reasonable rules of the Department, to any other person who is subject to the Act, and the amount thereof shall be applied by the Department against any tax or penalty or interest due or to become due under the Act from such assignee.

 

f)         Claims for credit or refund shall be filed upon forms provided by the Department.  As soon as practicable after any claim for credit or refund is filed, the Department shall examine the same and determine the amount of credit or refund to which the claimant is entitled and shall notify the claimant of such determination, which amount shall be prima facie correct.  Except as otherwise provided by Section 510.110(b)(3), any credit or refund that is allowed under the Act shall bear interest at the rate and in the manner specified in the Uniform Penalty and Interest Act.  [35 ILCS 620/6]

 

g)         In case the Department determines that the claimant is entitled to a refund, such refund shall be made only from such appropriation as may be available for that purpose.  If it appears unlikely that the amount appropriated would permit everyone having a claim allowed during the period covered by such appropriation to elect to receive a cash refund, the Department will make such refunds only in hardship cases (i.e., in cases in which the claimant cannot use a credit memorandum).  The two most likely situations where this would be the case are the situation in which the claimant has discontinued business and the situation in which the claimant will have a small volume of liability to the Department in the foreseeable future, but receives a large credit memorandum which it therefore might take the claimant a long time to liquidate by using it to pay current taxes.  In these instances, the claimant probably would have to sell the credit memorandum at a loss in order to realize anything from it within any reasonable period of time.

 

(Source:  Amended at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.144  Distribution of Electricity

 

a)         The tax in Section 510.110(b)(1) is imposed on the person that distributes electricity to the consumer or the end user of the electricity, when that person owns, leases, or controls the facilities used to distribute the electricity.

 

b)         A person that sells electricity at retail for use or consumption that does not own, lease, or control the facilities used to distribute the electricity to the end user or consumer is not liable for the tax in Section 510.110(b)(1).  The person that owns, leases, or controls the facilities used to distribute the electricity to the end user or consumer on behalf of the person selling the electricity is liable for the tax.

 

(Source:  Added at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.145  Furnishing of Electricity (Repealed)

 

(Source:  Repealed at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.150  Electricity Sold to and by Building Operators

 

a)         Persons owning, operating or leasing buildings, who purchase electricity for sale to tenants, bill the tenants for the electricity, and distribute the electricity to tenants over facilities owned, leased, or controlled by the persons, are liable for the tax in Section 510.110(b)(1) and are required, under the terms of the Act, to file returns and pay tax in the same manner as any other taxpayer.

 

b)         Such persons shall maintain books and records that document the amount of electricity consumed in the operation and maintenance of the building and the amount distributed to the tenants.

 

c)         In order to enable persons selling electricity to owners, operators or lessees of buildings to report accurately to the Department the amount of electricity sold for resale to tenants and the amount sold for use or consumption by the owners, operators or lessees of the buildings, such owners, operators or lessees of buildings should, at the end of each of their billing periods, report to the supplier the amount of electricity (kilowatt hours) consumed by the owner or building operator and not resold by him as such to tenants.  The owners, operators or lessees of buildings need not report to the Department the amount so reported to the supplier.

 

d)         Sales by taxpayers to hotels and like businesses for use or consumption are taxable sales within the Act.

 

(Source:  Amended at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.155  Transactions in Interstate Commerce

 

a)         The tax is not imposed upon any taxpayer with respect to any transaction in interstate commerce to the extent that such transactions may not, under the Constitution and statutes of the United States, be made the subject of taxation by this State.

 

b)         Insofar as the tax is imposed upon persons distributing, supplying, furnishing or selling electricity for use or consumption and not for resale, the following general principles will apply in determining whether or not transactions are in interstate commerce:

 

1)         Where a taxpayer delivers electricity through continuous lines from a point in Illinois to a point outside of Illinois, such transactions are in interstate commerce, and the taxpayer is not liable for tax with respect to gross receipts therefrom.

 

2)         Where a taxpayer not engaged in business in this State delivers electricity through continuous lines from a point outside of Illinois to a point within Illinois, the transaction is in interstate commerce, and the taxpayer is not liable for tax with respect to his receipts therefrom. However, if such company is engaged in the business in Illinois of distributing, supplying, furnishing or selling electricity brought within this State for use or consumption and not for resale, such transactions do not constitute interstate commerce, and the tax will apply.

 

3)         Where a taxpayer delivers electricity through continuous lines from one point in Illinois to a second point within Illinois, the transaction is not in interstate commerce, and the taxpayer will be liable for tax with respect to his receipts therefrom.  This rule applies irrespective of the fact that a portion of the continuous lines of the taxpayer through which electricity passes are situated outside Illinois.

 

c)         Where a taxpayer distributes, supplies, furnishes or sells electricity to a single customer under a contract calling for the delivery of electricity partly within Illinois and partly outside of Illinois, the taxpayer is liable for tax with respect to that portion of gross receipts from the contract accruing from service furnished within this State.

 

Section 510.160  Sales of Electricity to the United States Government

 

a)         Taxpayers are not liable for tax with respect to their receipts from electricity distributed, supplied, furnished or sold to the United States Government, its unincorporated departments, agencies or instrumentalities. This would include sales to the United States Defense Department, the United States Post Office Department and other unincorporated departments of the Federal Government; the Interstate Commerce Commission, the Federal Communications Commission, and other unincorporated commissions of the Federal Government; the Civil Aeronautics Board, the Federal Reserve Board and other unincorporated boards of the Federal Government, etc.

 

b)         Taxpayers are, however, liable for tax with respect to their gross receipts from electricity distributed, supplied, furnished or sold to any agency or instrumentality of the United States Government, which agency or instrumentality is a corporate entity.  This is true even though such electricity may be used in the performance of governmental functions.  For example, receipts from electricity distributed, supplied, furnished or sold to Federal Reserve or National Banks, the Commodity Credit Corporation, the Federal Deposit Insurance Corporation, the Federal Crop Insurance Corporation or other such incorporated Federal agencies and instrumentalities engaged in the performance of governmental functions, are subject to tax.

 

(Source:  Amended at 16 Ill. Reg. 5990, effective March 31, 1992)

 

Section 510.165  Electricity Distributed to The State of Illinois, its Departments, Agencies, Counties, Municipalities or Other Political Subdivisions

 

Taxpayers are liable for tax with respect to the distribution of electricity to the State of Illinois, its Departments, agencies, counties, municipalities (other than municipal corporations owning and operating a local transportation system for public service in this State), school districts, or other political subdivisions for use or consumption and not for resale.

 

(Source:  Amended at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.170  Electricity Distributed to Religious, Scientific, Educational and Charitable Institutions

 

Taxpayers are liable for tax with respect to the distribution of electricity to any religious, scientific, educational, or charitable institution for use or consumption and not for resale.

 

(Source:  Amended at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.175  Meter Readings (Repealed)

 

(Source:  Repealed at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.180  Services Furnished to Officers or Employees (Repealed)

 

(Source:  Repealed at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.185  Interdepartmental Transfers

 

a)         The distribution of electricity between the various departments of a taxpayer does not result in any liability for tax under the Act, notwithstanding that one department of the taxpayer receiving such electricity is, for accounting purposes, charged with the value of the electricity by another department of the same taxpayer distributing the electricity.

 

b)         However, where electricity is distributed to a separate corporation or legal entity for use or consumption and not for resale, the taxpayer distributing the electricity is liable for tax.

 

c)         It is immaterial that electricity so distributed by a taxpayer is distributed to the taxpayer's wholly-owned subsidiary, or that the two corporations may be wholly or partially under a common ownership or management.  The Department will not disregard separate corporate entities in applying the Act.

 

(Source:  Amended at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.190  Discounts, Penalties and Finance or Interest Charges (Repealed)

 

(Source:  Repealed at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.195  Sales of Appliances, Equipment or Services Subject to Other Tax Acts (Repealed)

 

(Source:  Repealed at 47 Ill. Reg. 18748, effective November 28, 2023)

 

Section 510.200  Application of the Retailers’ Occupation Tax Act to the Subject Matter of the Act

 

All of the provisions of Sections 4, (except that the time limitation provisions shall run from the date when the tax is due rather than from the date when gross receipts are received), 5 (except that the time limitation provisions on the issuance of notices of tax liability shall run from the date when the tax is due rather than from the date when gross receipts are received and except that, in the case of a failure to file a return required by the Act, no notice of tax liability shall be issued covering tax due with that return more than 6 years after the original due date of that return, and except that the 30% penalty provided for in Section 5 shall not apply), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6b, and 6c of the Retailers' Occupation Tax Act, which are not inconsistent with the Act, and the Uniform Penalty and Interest Act shall apply, as far as practicable, to the subject matter of the Act to the same extent as if such provisions were included therein.  References to retailers, to sellers or to persons engaged in the business of selling tangible personal property mean persons engaged in the business of distributing electricity when used in the Act.  References in such incorporated Sections of the Retailers' Occupation Tax Act to sales of tangible personal property mean the distribution of electricity when used in the Act.  [35 ILCS 620/5]

 

(Source:  Added at 47 Ill. Reg. 18748, effective November 28, 2023)