TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.101 DEFINITIONS
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)
 | TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.105 DISPOSITION OF TAX MONIES
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)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.110 IMPOSITION OF TAX
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)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.115 EFFECTIVE PERIOD OF ACT (REPEALED)
Section 510.115 Effective
Period of Act (Repealed)
(Source: Repealed at 16 Ill. Reg. 5990, effective March 31, 1992)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.120 RETURNS
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)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.125 GROSS AMOUNT OF TRANSACTIONS OR BILLINGS BASIS OF TAX (REPEALED)
Section 510.125 Gross Amount
of Transactions or Billings Basis of Tax (Repealed)
(Source: Repealed at 47 Ill. Reg. 18748, effective November 28, 2023)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.130 CERTIFICATE OF REGISTRATION
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)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.131 ENTERPRISE ZONE EXEMPTION (REPEALED)
Section 510.131 Enterprise
Zone Exemption (Repealed)
(Source: Repealed at 47 Ill. Reg. 18748, effective November 28, 2023)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.135 BOOKS AND RECORDS
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)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.140 CLAIMS TO RECOVER ERRONEOUSLY PAID TAX
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)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.144 DISTRIBUTION OF ELECTRICITY
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)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.145 FURNISHING OF ELECTRICITY (REPEALED)
Section 510.145 Furnishing
of Electricity (Repealed)
(Source: Repealed at 47 Ill. Reg. 18748, effective November 28, 2023)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.150 ELECTRICITY SOLD TO AND BY BUILDING OPERATORS
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)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.155 TRANSACTIONS IN INTERSTATE COMMERCE
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.
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.160 SALES OF ELECTRICITY TO THE UNITED STATES GOVERNMENT
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)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.165 ELECTRICITY DISTRIBUTED TO THE STATE OF ILLINOIS, ITS DEPARTMENTS, AGENCIES, COUNTIES, MUNICIPALITIES OR OTHER POLITICAL SUBDIVISIONS
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)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.170 ELECTRICITY DISTRIBUTED TO RELIGIOUS, SCIENTIFIC, EDUCATIONAL AND CHARITABLE INSTITUTIONS
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)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.175 METER READINGS (REPEALED)
Section 510.175 Meter
Readings (Repealed)
(Source: Repealed at 47 Ill. Reg. 18748, effective November 28, 2023)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.180 SERVICES FURNISHED TO OFFICERS OR EMPLOYEES (REPEALED)
Section 510.180 Services
Furnished to Officers or Employees (Repealed)
(Source:
Repealed at 47 Ill. Reg. 18748, effective November 28, 2023)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.185 INTERDEPARTMENTAL TRANSFERS
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)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.190 DISCOUNTS, PENALTIES AND FINANCE OR INTEREST CHARGES (REPEALED)
Section 510.190 Discounts,
Penalties and Finance or Interest Charges (Repealed)
(Source: Repealed at 47 Ill. Reg. 18748, effective November 28, 2023)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.195 SALES OF APPLIANCES, EQUIPMENT OR SERVICES SUBJECT TO OTHER TAX ACTS (REPEALED)
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)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 510
THE PUBLIC UTILITIES REVENUE ACT
SECTION 510.200 APPLICATION OF THE RETAILERS OCCUPATION TAX ACT TO THE SUBJECT MATTER OF THE ACT
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)
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