Section 511.100  Definitions

 

For the purposes of this Part:

 

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

 

"Delivering supplier" means any person engaged in the business of delivering electricity to persons for use or consumption and not for resale who, in any case where more than one person participates in the delivery of electricity to a specific purchaser, is the last of the suppliers engaged in delivering the electricity prior to its receipt by the purchaser.  Effective for periods on and after August 9, 2001, "delivering supplier" does not include an entity engaged in the practice of resale and redistribution of electricity within a building prior to January 2, 1957.

 

"Delivering supplier maintaining a place of business in this State", or any like term, means any delivering supplier having or maintaining within this State, directly or by a subsidiary, an office, generation facility, transmission facility, distribution facility, sales office or other place of business, or any employee, agent or other representative operating within this State under the authority of such delivering supplier or such delivering supplier's subsidiary, irrespective of whether such place of business or agent or other representative is located in this State permanently or temporarily, or whether such delivering supplier or such delivering supplier's subsidiary is licensed to do business in this State.

 

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

 

"Law" means the Electricity Excise Tax Law [35 ILCS 640].

 

"Non-residential electric use" means any use or consumption of electricity which is not residential electric use.

 

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

 

"Purchase price" means the consideration paid for the distribution, supply, furnishing, sale, transmission or delivery of electricity to a person for non-residential use or consumption (and for both residential and non-residential use or consumption in the case of electricity purchased from a municipal system or electric cooperative described in 35 ILCS 640/2-4(b) and not for resale, and for all services directly related to the production, transmission or distribution of electricity distributed, supplied, furnished, sold, transmitted or delivered for non-residential use or consumption, and includes transition charges imposed in accordance with Article XVI of the Public Utilities Act and instrument funding charges imposed in accordance with Article XVIII of the Public Utilities Act, as well as 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.  However, "purchase price" shall not include consideration paid for:

 

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 furnishing, supplying or selling electricity;

 

any purchase by a purchaser if the supplier is prohibited by federal or State constitution, treaty, convention, statute or court decision from recovering the related tax liability from such purchaser; and

 

any amounts added to purchasers' bills because of charges made pursuant to the tax imposed by the Law.

 

In case credit is extended, the amount thereof shall be included only as and when payments are made.

 

"Purchase price" shall not include consideration received from business enterprises certified under Section 9-222.1 or 9-222.1A 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.

 

"Purchaser" means any person who acquires electricity for use or consumption and not for resale, for a valuable consideration.

 

"Residential electric use" means electricity used or consumed at a dwelling of 2 or fewer units, or electricity for household purposes used or consumed at a building with multiple dwelling units where the electricity is registered by a separate meter for each dwelling unit.  [35 ILCS 640/2-3]

 

"Self-assessing purchaser" means a purchaser for non-residential electric use who elects to register with and to pay tax directly to the Department in accordance with Sections 2-10 and 2-11 of the Electricity Excise Tax Law [35 ILCS 640/2-10 and 2-11].

 

"Use" means the exercise by any person of any right or power over electricity incident to the ownership of that electricity, except that it does not include the generation, production, transmission, distribution, delivery or sale of electricity in the regular course of business or the use of electricity for such purposes. [35 ILCS 640/2-3]

 

(Source:  Amended at 48 Ill. Reg. 17635, effective November 22, 2024)

 

Section 511.110  Imposition of Tax

 

The Electricity Excise Tax Law imposes a tax on the privilege of using in this State electricity purchased for use or consumption (see 35 ILCS 640/2-4). The base and rate of the tax is dependent upon the type of supplier from which the electricity is obtained.

 

a)         Electricity Purchased From Municipal Systems or Electric Cooperatives. A tax is imposed on the privilege of using in this State electricity purchased from a municipal system or electric cooperative, as defined in Article XVII of the Public Utilities Act, which has not made an election as permitted by either Section 17-200 (election to provide existing or future customers access to alternative retail electric suppliers) or Section 17-300 (election to be an alternative retail electric supplier) of the Public Utilities Act, at the lesser of 0.32 cents per kilowatt hour of all electricity distributed, supplied, furnished, sold, transmitted, and delivered by such municipal system or electric cooperative to the purchaser or 5% of each such purchaser's purchase price for all electricity distributed, supplied, furnished, sold, transmitted, and delivered by such municipal system or electric cooperative to the purchaser, whichever is the lower rate as applied to each purchaser in each billing period. [35 ILCS 640/2-4(b)]  Taxpayers who obtain their electricity or electric service from a supplier described in this Part may not elect to become a self-assessing purchaser as described in subsection (c) of this Section.

 

b)         Other Suppliers.  Except as provided in subsection (a) and (c), the tax is imposed on the privilege of using in this State electricity purchased for use or consumption and not for resale, other than by municipal corporations owning and operating a local transportation system for public service, at the following rates per kilowatt-hour delivered to the purchaser:

 

1)         For the first 2000 kilowatt-hours used or consumed in a month: 0.330 cents per kilowatt-hour;

 

2)         For the next 48,000 kilowatt-hours used or consumed in a month: 0.319 cents per kilowatt-hour;

 

3)         For the next 50,000 kilowatt-hours used or consumed in a month: 0.303 cents per kilowatt-hour;

 

4)         For the next 400,000 kilowatt-hours used or consumed in a month: 0.297 cents per kilowatt-hour;

 

5)         For the next 500,000 kilowatt-hours used or consumed in a month: 0.286 cents per kilowatt-hour;

 

6)         For the next 2,000,000 kilowatt-hours used or consumed in a month: 0.270 cents per kilowatt-hour;

 

7)         For the next 2,000,000 kilowatt-hours used or consumed in a month: 0.254 cents per kilowatt-hour;

 

8)         For the next 5,000,000 kilowatt-hours used or consumed in a month: 0.233 cents per kilowatt-hour;

 

9)         For the next 10,000,000 kilowatt-hours used or consumed in a month: 0.207 cents per kilowatt-hour; and

 

10)       For all electricity in excess of 20,000,000 kilowatt-hours used or consumed in a month: 0.202 cents per kilowatt-hour.

 

c)         In lieu of the foregoing rates in subsection (b), the tax is imposed on a self-assessing purchaser at the rate of 5.1% of the self-assessing purchaser's purchase price for all electricity distributed, supplied, furnished, sold, transmitted and delivered to the self-assessing purchaser in a month. [35 ILCS 640/2-4(a)]

 

d)         The tax required to be collected by any delivering supplier maintaining a place of business in this State, and any such tax collected by that person, shall constitute a debt owed by that person to this State, provided, that the delivering supplier shall be allowed credit for such tax related to deliveries of electricity the charges for which are written off as uncollectible, and provided further, that if such charges are thereafter collected, the delivering supplier shall be obligated to remit such tax.  For purposes of this Section, any partial payment not specifically identified by the purchaser shall be deemed to be for the delivery of electricity.  [35 ILCS 640/2-8]

 

(Source:  Amended at 48 Ill. Reg. 17635, effective November 22, 2024)

 

Section 511.120  Electronic Fund Transfer and Estimated Payments

 

a)         Estimated payments

 

1)         A taxpayer whose average monthly liability to the Department under the Law was $10,000 or more during the preceding calendar year, excluding the month of highest liability and the month of lowest liability in such calendar year, and who is not operated by a unit of local government, shall make estimated payments to the Department on or before the 7^th, 15^th, 22^nd and last day of the month during which tax liability to the Department is incurred in an amount not less than the lower of either 22.5% of such delivering supplier's actual tax liability for the month or 25% of such taxpayer's actual tax liability for the same calendar month of the preceding year.  The amount of such quarter-monthly payments shall be credited against the final tax liability of such taxpayer's return for that month.

 

2)         An outstanding credit approved by the Department or a credit memorandum issued by the Department arising from such taxpayer's overpayment of the taxpayer's final tax liability for any month may be applied to reduce the amount of any subsequent quarter-monthly payment or credited against the final tax liability of such taxpayer's return for any subsequent month.

 

3)         If any quarter-monthly payment is not paid at the time or in the amount required by this Section, such taxpayer shall be liable for penalty and interest on the difference between the minimum amount due as a payment and the amount of such payment actually and timely paid, except insofar as such taxpayer has previously made payments for that month to the Department in excess of the minimum payments previously due.  [35 ILCS 640/2-9 and 2-11]

 

b)         Electronic funds transfer

 

1)         A taxpayer (other than an individual taxpayer) who has an annual tax liability of $20,000 or more and an individual taxpayer who has an annual tax liability of $200,000 or more shall make all payments of the tax to the Department by electronic funds transfer.  For purposes of this subsection (b), the term "annual tax liability" means, except as provided in subsections (c) and (d) of Section 2505-210 of the Department of Revenue Law, the sum of the taxpayer's liabilities under the Law for the immediately preceding calendar year.

 

2)         Before August 1 of each year, the Department will notify all taxpayers required to make payments by electronic funds transfer.  All taxpayers required to make payments by electronic funds transfer shall make those payments for a minimum of one year beginning on October 1.  [20 ILCS 2505/2505-210]

 

(Source:  Amended at 48 Ill. Reg. 17635, effective November 22, 2024)

 

Section 511.130  Transfer of Credit Memorandum

 

a)         Any credit memorandum issued under the tax imposed by Section 2 of the Public Utilities Revenue Act may be applied against liability incurred under the Electricity Excise Tax Law.

 

b)         Any credit memorandum issued under the Electricity Excise Tax Law may be applied against any liability incurred under the tax imposed by Section 2 of the Public Utilities Revenue Act. [35 ILCS 640/2-12]

 

Section 511.140  Public Utility Retail Rate Credit

 

Public utilities that are required to purchase electricity from qualified solid waste energy facilities and incur liability as delivering suppliers are entitled to a credit against their Electricity Excise Tax liability in an amount determined under Section 8-403.1(d) of the Public Utilities Act [220 ILCS 5/8-403.1(d)].  (See 35 ILCS 640/2-7(b).)

 

(Source:  Amended at 48 Ill. Reg. 17635, effective November 22, 2024)

 

Section 511.150  Exclusions From Tax

 

a)         Federal Government.  Electricity Excise Tax is not imposed with respect to any transaction in interstate commerce, or otherwise, to the extent to which such transaction may not, under the Constitution and statutes of the United States, be made the subject of taxation by this State.  [35 ILCS 640/2-4(c)]  For example, the federal government is not taxable under the Electricity Excise Tax Law. However, the State of Illinois and any other state or local government is subject to tax under the Electricity Excise Tax Law.  Examples of the federal government include, but are not limited to, entities such as:  the three main branches of government, the Executive, Legislative and Judicial, and the U.S. Postal Service.  A sale of electricity to the federal courthouse would be exempt; however, a sale to a federal judge for his own use would not be exempt.

 

b)         Entities that are exempt from taxation by federal statute are not subject to Electricity Excise Tax liability.  For example, federal credit unions are not subject to Electricity Excise Tax liability pursuant to 12 USC 1768.  Further, Amtrak is not subject to Electricity Excise Tax liability pursuant to 49 USC 24301(l).

 

c)         Businesses Located in Enterprise Zones.  The tax imposed by 35 ILCS 640/2-4 is not imposed with respect to any use of electricity by business enterprises certified under Section 9-222.1 of the Public Utilities Act, as amended, to the extent of such exemption and during the time specified by the Department of Commerce and Economic Opportunity ("DCEO"). [35 ILCS 640/2-4(c)]

 

d)         Businesses Certified as High Impact Businesses.  The tax imposed by 35 ILCS 640/2-4 is not imposed with respect to any use of electricity by business enterprises certified under Section 9-222.1A of the Public Utilities Act, as amended, to the extent of such exemption and during the time specified by the DCEO.  [35 ILCS 640/2-4(c)]  In order to qualify for the tax exemption under Section 2-4 of the Electricity Excise Tax Law, the business enterprise must be certified as a High Impact Business by the DCEO and must be registered with the Department of Revenue as a self-assessing purchaser under Section 2-10 of the Electricity Excise Tax Law.  [220 ILCS 5/9-222.1A]

 

e)         Reimagining Energy and Vehicles in Illinois ("REV Illinois") Act Project sites.  The tax imposed by 35 ILCS 640/2-4 is not imposed with respect to any use of electricity at a REV Illinois Project site that has received a certification for tax exemption from DCEO pursuant to Section 95 of the Reimagining Energy and Vehicles in Illinois Act, to the extent of such exemption, which shall be no more than 10 years.  [35 ILCS 640/2-4(d)]  DCEO may certify a taxpayer with a REV Illinois credit for a Project that meets the qualifications under Section paragraphs (1), (2), and (4) of subsection (c) of Section 20 of the REV Illinois Act, subject to an agreement under the REV Illinois Act for an exemption from the tax imposed at the project site by Section 2-4 of the Electricity Excise Tax Law.  To receive such certification, the taxpayer must be registered to self-assess that tax.  The taxpayer is also exempt from any additional charges added to the taxpayer's utility bills at the project site as a pass-on of State utility taxes under Section 9-222 of the Public Utilities Act.  The taxpayer must meet any other criteria for certification set by the DCEO.  [20 ILCS 686/95]

 

f)         Manufacturing Illinois Chips for Real Opportunity (MICRO) Act Projects sites.  The tax imposed by 35 ILCS 640/2-4 is not imposed with respect to any use of electricity at a project site that has received a certification for tax exemption from the DCEO pursuant to Section 110-95 of the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act ("MICRO Act"), to the extent of such exemption, which shall be no more than 10 years.  [35 ILCS 640/2-4(e)]  DCEO may certify a taxpayer with a credit for a project that meets the qualifications under paragraphs (1), (2), and (4) of subsection (c) of Section 110-20 of the MICRO Act, subject to an agreement under the MICRO Act, for an exemption from the tax imposed at the project site by Section 2-4 of the Electricity Excise Tax Law.  To receive such certification, the taxpayer must be registered to self-assess that tax.  The taxpayer is also exempt from any additional charges added to the taxpayer's utility bills at the project site as a pass-on of State utility taxes under Section 9-222 of the Public Utilities Act.  The taxpayer must meet any other criteria for certification set by the DCEO. [35 ILCS 45/110-95]

 

g)         Delivering suppliers are required to maintain documentation in their books and records to support the exemptions described in this Section.  In order to document the exemptions listed in subsections (c) through (f) of this Section, delivering suppliers must maintain the current certificate of eligibility issued by the DCEO to the businesses claiming the exemption.

 

(Source:  Amended at 48 Ill. Reg. 17635, effective November 22, 2024)

 

Section 511.160  Net or Single Metering

 

Regardless of whether taxpayers who purchase electricity or electric service and also generate their own electricity, which is put back into their delivering suppliers' electricity distribution systems, use either Single Meters (Dual-Flow Meters) or Separate Meters (Single-Flow Meters), the basis of the tax is on the amount of electricity delivered for use.  These types of meters are defined as follows:

 

a)         Single Meters (Dual-Flow Meters).  These types of meters allow electricity to flow in both ways through the meter (electricity received by the taxpayer and electricity the taxpayer has put back into the delivering supplier's electricity distribution system) and the meter provides a reading only of the net result.

 

b)         Separate Meters (Single-Flow Meters).  Separate or Single-Flow Meters are used to keep track of both the electricity received by the taxpayer from the delivering supplier and the amount returned by the taxpayer to the delivering supplier's electricity distribution system.

SUBPART B: COLLECTION OF TAX BY DELIVERING SUPPLIERS

 

Section 511.200  Collection of Tax by Delivering Supplier

 

The tax imposed by the Law shall be collected from the purchaser, other than a self-assessing purchaser where the delivering supplier or suppliers are notified by the Department that the purchaser has been registered as a self-assessing purchaser as described in Section 511.300 of this Part, by any delivering supplier maintaining a place of business in this State.

 

a)         All sales to a purchaser are presumed subject to tax collection unless the Department notifies the delivering supplier that the purchaser has been registered as a self-assessing purchaser for the accounts listed by the self-assessing purchaser as described in Section 511.300 of this Part .  Upon receipt of notification by the Department, the delivering supplier is relieved of all liability for the collection and remittance of tax from the self-assessing purchaser for the accounts specifically listed by the self-assessing purchaser for which notification was provided by the Department.  The delivering supplier is relieved of the liability for the collection of the tax from a self-assessing purchaser until such time as the delivering supplier is notified in writing by the Department that the purchaser's certification as a self-assessing purchaser is no longer in effect.

 

b)         Delivering suppliers shall collect the tax from purchasers by adding the tax to the amount of the purchase price received from the purchaser for delivering electricity for or to the purchaser.  Where a delivering supplier does not collect the tax from a purchaser, other than a self-assessing purchaser, as provided in this Section, such purchaser shall pay the tax directly to the Department. [35 ILCS 640/2-7]

 

(Source:  Amended at 48 Ill. Reg. 17635, effective November 22, 2024)

 

Section 511.210  Delivering Supplier Registration

 

a)         A person who engages in business as a delivering supplier of electricity in this State shall register with the Department.  Application for registration as a delivering supplier is made on Form REG-1, Illinois Business Registration Application.

 

b)         The Department may refuse to issue, reissue, or renew a certificate of registration 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, 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, permit, or license of a person that is in default for moneys due under the Law 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)]

 

c)         Any person aggrieved by any decision of the Department under this Section may, within 20 days after notice of such decision, protest and request a hearing, whereupon the Department shall give notice to such person of the time and place fixed for such hearing and shall hold a hearing in conformity with the provisions of the Law and then issue its final administrative decision in the matter to such person. In the absence of such a protest within 20 days, the Department's decision shall become final without any further determination being made or notice given.  [35 ILCS 640/2-7.5]

 

(Source:  Amended at 48 Ill. Reg. 17635, effective November 22, 2024)

 

Section 511.220  Revocation of Delivering Supplier Registration

 

a)         The Department may, after notice and a hearing, revoke the certificate of registration of any person who violates any of the provisions of the Law.  [35 ILCS 640/2-7.6]

 

b)         The Department has the power, after notice and an opportunity for a hearing, to revoke a certificate of registration issued by the Department if the holder of the certificate of registration fails to file a return, or to pay the tax, fee, penalty, or interest shown in a filed return, or to pay any final assessment of tax, fee, penalty, or interest, as required by the Law or any other tax or fee Act administered by the Department.  [20 ILCS 2505/2505-380(a)]

 

c)         Before revocation of a certificate of registration, the Department shall, within 90 days after non-compliance and at least 7 days prior to the date of the hearing, give the person so accused notice in writing of the charge against the person, and on the date designated shall conduct a hearing upon this matter.  The lapse of such 90-day period shall not preclude the Department from conducting revocation proceedings at a later date if necessary.  Any hearing held under this Section shall be conducted by the Director or by any officer or employee of the Department designated in writing by the Director.  [35 ILCS 640/2-7.6]

 

(Source:  Amended at 48 Ill. Reg. 17635, effective November 22, 2024)

 

Section 511.230  Delivering Supplier Return

 

Return and payment of tax by delivering supplier.

 

a)         Each delivering supplier who is required or authorized to collect the tax imposed by the Law shall make a return to the Department on or before the 15^th day of each month for the preceding calendar month stating the following:

 

1)         the delivering supplier's name and registration number;

 

2)         the address of the delivering supplier's principal place of business and the address of the principal place of business (if that is a different address) from which the delivering supplier engaged in the business of delivering electricity in this State;

 

3)         the total number of kilowatt-hours which the supplier delivered to or for purchasers during the preceding calendar month and upon the basis of which the tax is imposed;

 

4)         the amount of tax, computed on the number of kilowatt-hours in subsection (a)(3) at the rates stated in Section 511.110 of this Part;

 

5)         an adjustment for uncollectible amounts of tax in respect of prior period kilowatt-hour deliveries;

 

6)         the amount of credits to which the taxpayer is entitled on account of purchases made under Section 8-403.1 of the Public Utilities Act [220 ILCS 5/8-403.1];

 

7)         the gross receipts from sales of electricity that are taxed on a gross receipts basis under Section 511.110(a) of this Part and any non-taxable deductions from those gross receipts;

 

8)         the amount of any credits to be applied to the liability period of the return in addition to those listed in subsection (a)(6); and

 

9)         the signature of the taxpayer.

 

b)         In preparing the return, the delivering supplier may use any reasonable method to derive reportable "kilowatt-hours" from the delivering supplier's records. For example, one such method is basing reportable kilowatt-hours on the amount of electricity billed to customers during the preceding calendar month.

 

c)         The delivering supplier making the return provided for in this Section shall pay to the Department the amount of tax imposed by the Electricity Excise Tax Law at the time of making such return.  [35 ILCS 640/2-9]  Such return shall be made on the Department's Form RPU-13, Electricity Excise Tax Return.  See Section 511.120 for an explanation when a delivering supplier must make estimated tax payments and must make all payments to the Department by electronic funds transfer.

 

d)         Notwithstanding any other provision in the Law concerning the time within which a delivering supplier may file a return, any such delivering supplier who ceases to engage in a kind of business which makes the person responsible for filing returns under the Law shall file a final return under the Law with the Department not more than one month after discontinuing such business.  [35 ILCS 640/2-9]

 

(Source:  Amended at 48 Ill. Reg. 17635, effective November 22, 2024)

SUBPART C: SELF-ASSESSING PURCHASERS

 

Section 511.300  Self-assessing Purchaser Election

 

a)         Any purchaser for non-residential electric use may elect to register with the Department as a self-assessing purchaser and to pay the tax imposed by the Law directly to the Department, at the rate of 5.1% of the self-assessing purchaser's purchase price for all electricity distributed, supplied, furnished, sold, transmitted, and delivered to the self-assessing purchaser in a month, rather than paying the tax to such purchaser's delivering supplier. [35 ILCS 640/2-10]

 

b)         A purchaser may not elect to register to be a self-assessing purchaser for accounts where that purchaser's delivering supplier is a municipal system or electric cooperative, as defined in Article XVII of the Public Utilities Act, which has not made an election as permitted by either Section 17-200 (election to provide existing or future customers access to alternative retail electric suppliers) or Section 17-300 (election to be an alternative retail electric supplier) of the Act.  See Section 511.110 of this Part.

 

c)         The election by a purchaser to register as a self-assessing purchaser may not be revoked by the purchaser for at least 2 years after election. [35 ILCS 640/2-10]

 

(Source:  Amended at 48 Ill. Reg. 17635, effective November 22, 2024)

 

Section 511.310  Self-assessing Purchaser Registration and Renewal, $200 Fee

 

a)         Any purchaser for non-residential electric use may elect to register with the Department as a self-assessing purchaser and to pay the tax imposed by 35 ILCS 640/2-4 directly to the Department, at the rate stated in that Section for self-assessing purchasers, rather than paying the tax to such purchaser's delivering supplier.  [35 ILCS 640/2-10]  Application for a certificate of registration as a self-assessing purchaser shall be made to the Department upon Form REG-1, Illinois Business Registration Application, along with Schedule REG-1-D, Electricity Tax Self-Assessing Purchaser. Applicants must specify on Form REG-1 the date upon which the applicant wishes to become a self-assessing purchaser.  Applicants must provide the properly completed application (Form REG-1 and Schedule REG-1-D) to the Department at least 30 days before the date they wish to become a self-assessing purchaser in order to give the Department sufficient time to process the application and forward a copy of the Schedule REG-1-D to the delivering suppliers listed on that Schedule.

 

b)         Applicants must identify on Schedule REG-1-D the delivering suppliers and each account with those delivering suppliers upon which the self-assessing purchaser has chosen to pay Electricity Excise Tax directly to the Department.  The Department will then notify those delivering suppliers by sending a photocopy of the applicant's Schedule REG-1-D with a letter stating that the delivering supplier is no longer required to collect tax on those specified accounts.  An applicant must complete separate Schedule REG-1-D for each delivering supplier if the applicant does not wish all of the applicant's account information disclosed to each delivering supplier.

 

c)         Self-assessing purchasers who want to add additional delivering supplier accounts or delete specific accounts must complete a new Schedule REG-1-D and submit it to the Department at the address listed on that Schedule at least 30 days before the date they wish to begin or cease self-assessing Electricity Excise Tax on those specified accounts.  The Department will then notify those delivering suppliers by sending a photocopy of the applicant's revised Schedule REG-1-D.

 

d)         Payment of Non-refundable Biennial Fee.  Upon receipt of the application for a certificate of registration in proper form and payment of a non-refundable biennial fee of $200, the Department shall issue to the applicant a certificate of registration that permits the person to whom it was issued to pay the tax incurred under the Law directly to the Department for a period of 2 years.  [35 ILCS 640/2-10]

 

e)         A certificate of registration under this Section shall be renewed upon application and payment of a non-refundable biennial $200 fee, subject to revocation as provided by the Law, for additional 2-year periods from the date of its expiration unless otherwise notified by the Department.  Application for renewal must be received at least 30 days prior to the expiration date of the registration in order to give the Department sufficient time to process the application and forward a copy of the Schedule REG-1-D to the delivering suppliers listed on that Schedule.  If the Department does not receive the renewal application at least 30 days prior to the expiration date of the registration, the registration will be deemed revoked as provided in Section 511.320 of this Part.  This process for issuing a 30-day notice is necessary in order to give the Department sufficient time to forward a copy of the notice of revocation to the applicable delivering suppliers so that the delivering suppliers can begin collecting tax on the date they are required.

 

f)         The Department may deny a certificate of registration to any applicant if the owner, any partner, any manager or member of a limited liability company, or a corporate officer of the applicant, is or has been the owner, a partner, a manager or member of a limited liability company, or a corporate officer, of another self-assessing purchaser that is in default for moneys due under the Electricity Excise Tax Law. [35 ILCS 640/2-10]

 

g)         The Department may refuse to issue, reissue, or renew a certificate of registration 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, 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, permit, or license of a person that is in default for moneys due under the Law 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)]

 

h)         Any person aggrieved by any decision of the Department under this Section may, within 20 days after notice of such decision, protest and request a hearing, whereupon the Department shall give notice to such person of the time and place fixed for such hearing and shall hold a hearing in conformity with the provisions of the Law and then issue its final administrative decision in the matter to such person.  In the absence of such a protest within 20 days, the Department's decision shall become final without any further determination being made or notice given.  Upon the expiration, revocation, or denial of a certificate of registration as a self-assessing purchaser, the Department of Revenue shall provide written notice of the expiration, revocation, or denial of the certificate to the self-assessing purchaser's delivering supplier or suppliers.  [35 ILCS 640/2-10]

 

(Source:  Amended at 48 Ill. Reg. 17635, effective November 22, 2024)

 

Section 511.320  Self-assessing Purchaser Revocation

 

a)         The election by a purchaser to register as a self-assessing purchaser may not be revoked by the purchaser for at least 2 years after election.

 

b)         A self-assessing purchaser shall renew their registration every 2 years, or the registration shall be deemed to be revoked.  If the Department does not receive the renewal application at least 30 days prior to the expiration date of the registration, the registration will be deemed revoked.

 

c)         A purchaser who revokes their registration as a self-assessing purchaser shall not thereafter be permitted to register as a self-assessing purchaser within the succeeding 2 years.  [35 ILCS 640/2-10]

 

d)         The Department may, after notice and a hearing, revoke the certificate of registration of any self-assessing purchaser who violates any of the provisions of the Electricity Excise Tax Law. [35 ILCS 640/2-10.6]

 

e)         The Department has the power, after notice and an opportunity for a hearing, to revoke a certificate of registration issued by the Department if the holder of the certificate of registration fails to file a return, or to pay the tax, fee, penalty, or interest shown in a filed return, or to pay any final assessment of tax, fee, penalty, or interest, as required by the Law or any other tax or fee Act administered by the Department.  [20 ILCS 2505/2505-380(a)]

 

f)         Before revocation of a certificate of registration, the Department shall, within 90 days after non-compliance and at least 7 days prior to the date of the hearing, give the person so accused notice in writing of the charge against him or her, and on the date designated shall conduct a hearing upon this matter.  The lapse of such 90-day period shall not preclude the Department from conducting revocation proceedings at a later date if necessary.  Any such hearing held shall be conducted by the Director or by any officer or employee of the Department designated in writing by the Director.  [35 ILCS 640/2-10.6]

 

(Source:  Amended at 48 Ill. Reg. 17635, effective November 22, 2024)

 

Section 511.330  Self-assessing Purchaser Return and Direct Payment

 

a)         When electricity is used or consumed by a self-assessing purchaser subject to the tax imposed by the Law who did not pay the tax to a delivering supplier maintaining a place of business within this State and required or authorized to collect the tax, that self-assessing purchaser shall, on or before the 15^th day of each month, make a return to the Department for the preceding calendar month, stating all of the following:

 

1)         The self-assessing purchaser's name, principal address, and registration number.

 

2)         The aggregate purchase price paid by the self-assessing purchaser for the distribution, supply, furnishing, sale, transmission and delivery of such electricity to or for the purchaser during the preceding calendar month, including budget plan and other purchaser-owned amounts applied during such month in payment of charges includible in the purchase price, and upon the basis of which the tax is imposed.  In making the return the self-assessing purchaser may use any reasonable method to derive reportable "purchase price" from the self-assessing purchaser's records.

 

3)         Amount of tax, computed upon the purchase price as outlined in subsection (a)(2) at the rate stated in Section 511.110(c) of this Part.

 

4)         The amount of any credits to be applied to the liability period of the return.

 

5)         The signature of the taxpayer.

 

b)         The self-assessing purchaser making the return provided for in this Section must, at the time of making such return, pay to the Department the amount of tax imposed by the Law.  See Section 511.120 for an explanation when a self-assessing purchaser must make estimated tax payments and must make all payments to the Department by electronic funds transfer.

 

c)         Any self-assessing purchaser who ceases to be responsible for filing returns under the Law shall file a final return with the Department not more than one month thereafter. [35 ILCS 640/2-11]  Such return shall be made on the Department's Form RPU-13, Electricity Excise Tax Return.

 

(Source:  Amended at 48 Ill. Reg. 17635, effective November 22, 2024)

 

Section 511.340  Books and Records

 

a)         Every delivering supplier maintaining a place of business in this State who is obligated to collect and remit the tax imposed on a purchaser by the Law, and every self-assessing purchaser who is obligated to pay the tax imposed by the Law directly to the Department, shall keep books, records, papers and other documents which are adequate to reflect the information which such supplier or such self-assessing purchaser, as the case may be, is required by Section 2-9 or Section 2-11 of the Electricity Excise Tax Law to report to the Department by filing returns with the Department.

 

b)         All books and records and other papers and documents required by the Law 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.

 

c)         Books and records reflecting purchase price paid and kilowatt-hours delivered, used or consumed during any period with respect to which the Department is authorized to establish liability as provided in 35 ILCS 640/2-12 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 640/2-13]

 

(Source:  Added at 48 Ill. Reg. 17635, effective November 22, 2024)

 

Section 511.350 Applicability of Retailers' Occupation Tax 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 issuances 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 Law, no notice of tax liability shall be issued on and after each July 1 and January 1 covering tax due with that return during any month or period more than 6 years before that July 1 or January 1, respectively, and except that the 30% penalty provided for in Section 5 shall not apply), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i and 5j of the Retailers' Occupation Tax Act, and Sections 6, 8, 9, 10 and 11 of the Public Utilities Revenue Act, which are not inconsistent with this Law, and the Uniform Penalty and Interest Act shall apply, as far as practicable, to the subject matter of the Law to the same extent as if such provisions were included herein.  References in such incorporated Sections of the Retailers' Occupation Tax Act and Public Utilities Revenue Act and to taxpayers and to persons engaged in the business of selling tangible personal property at retail means both purchasers and delivering suppliers maintaining a place of business in this State, as required by the particular context, when used in the Law.  References in such incorporated Sections of the Retailers' Occupation Tax Act and Public Utilities Revenue Act to gross receipts and to gross receipts received means purchase price or kilowatt-hours used or consumed by the purchaser, as required by the particular context.  [35 ILCS 640/2-12]

 

(Source:  Added at 48 Ill. Reg. 17635, effective November 22, 2024)

 

Section 511.360  Violations

 

Any purchaser or delivering supplier who is required to but fails to make a return, or who makes a fraudulent return, or who willfully violates any other provision of the Law or any rule or regulation of the Department for the administration and enforcement of the Law, is guilty of a business offense and, upon conviction thereof, shall be fined not less than $750 nor more than $7,500.  [35 ILCS 640/2-16]

 

(Source:  Added at 48 Ill. Reg. 17635, effective November 22, 2024)