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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Gas Use Tax Law is amended by changing | ||||||
5 | Section 5-50 as follows: | ||||||
6 | (35 ILCS 173/5-50) | ||||||
7 | Sec. 5-50. Exemptions. The tax imposed under this Act shall | ||||||
8 | not apply to: | ||||||
9 | (1) Gas used by business enterprises located in an | ||||||
10 | enterprise zone
certified by the Department of Commerce and | ||||||
11 | Economic Opportunity pursuant to
the Illinois Enterprise | ||||||
12 | Zone Act; | ||||||
13 | (2) Gas used by governmental bodies, or a corporation, | ||||||
14 | society,
association,
foundation, or institution organized | ||||||
15 | and operated exclusively for charitable,
religious, or | ||||||
16 | educational purposes. Such use shall not be exempt unless | ||||||
17 | the
government body, or corporation, society, association, | ||||||
18 | foundation, or
institution organized and operated | ||||||
19 | exclusively for charitable, religious, or
educational | ||||||
20 | purposes has first been issued a tax exemption | ||||||
21 | identification
number by the Department of Revenue | ||||||
22 | pursuant to Section 1g of the Retailers'
Occupation Tax | ||||||
23 | Act. A limited liability company may qualify for the |
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1 | exemption
under this Section only if the limited liability | ||||||
2 | company is organized and
operated exclusively for | ||||||
3 | educational purposes. The term "educational
purposes" | ||||||
4 | shall have the same meaning as that set forth in Section 2h | ||||||
5 | of the
Retailers' Occupation Tax Act; | ||||||
6 | (3) Gas used in the production of electric energy. This | ||||||
7 | exemption
does not
include gas used in the general | ||||||
8 | maintenance or heating of an electric energy
production | ||||||
9 | facility or other structure; | ||||||
10 | (4) Gas used in a petroleum refinery operation; | ||||||
11 | (5) Gas purchased by persons for use in liquefaction | ||||||
12 | and fractionation
processes that produce value added | ||||||
13 | natural gas byproducts for resale; | ||||||
14 | (6) Gas used in the production of anhydrous ammonia and | ||||||
15 | downstream
nitrogen fertilizer products for resale. | ||||||
16 | (7) Gas used by any business enterprise that is | ||||||
17 | properly assigned or included within one of the following | ||||||
18 | Standard Industrial Classifications, as designated in the | ||||||
19 | Standard Industrial Classification Manual prepared by the | ||||||
20 | federal Office of Management and Budget: 10; 12; 13; 14; | ||||||
21 | 15; 16; 17; 20; 21; 22; 23; 24; 25; 26; 27; 28; 29; 30; 31; | ||||||
22 | 32; 33; 34; 35; 36; 37; 38; or 39. | ||||||
23 | The Department may adopt rules to implement the provisions | ||||||
24 | of this
Section. | ||||||
25 | (Source: P.A. 93-31, eff. 10-1-03.) |
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1 | Section 10. The Gas Revenue Tax Act is amended by changing | ||||||
2 | Section 1 as follows: | ||||||
3 | (35 ILCS 615/1) (from Ch. 120, par. 467.16) | ||||||
4 | Sec. 1. For the purposes of this Act: "Gross receipts" | ||||||
5 | means the consideration received for gas
distributed, | ||||||
6 | supplied, furnished or sold to persons for use or
consumption | ||||||
7 | and not for resale, and for all services (including the
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8 | transportation or storage of gas for an end-user) rendered in | ||||||
9 | connection
therewith, and shall include cash, services and | ||||||
10 | property of every kind or
nature, and shall be determined | ||||||
11 | without any deduction on account of the
cost of the service, | ||||||
12 | product or commodity supplied, the cost of materials
used, | ||||||
13 | labor or service costs, or any other expense whatsoever. | ||||||
14 | However,
"gross receipts" shall not include receipts from: | ||||||
15 | (i) any minimum or other charge for gas or gas service | ||||||
16 | where the
customer has taken no therms of gas; | ||||||
17 | (ii) any charge for a dishonored check; | ||||||
18 | (iii) any finance or credit charge, penalty or charge | ||||||
19 | for delayed
payment, or discount for prompt payment; | ||||||
20 | (iv) any charge for reconnection of service or for | ||||||
21 | replacement or
relocation of facilities; | ||||||
22 | (v) any advance or contribution in aid of construction; | ||||||
23 | (vi) repair, inspection or servicing of equipment | ||||||
24 | located on customer
premises; | ||||||
25 | (vii) leasing or rental of equipment, the leasing or |
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1 | rental of which is
not necessary to distributing, | ||||||
2 | furnishing, supplying, selling, transporting
or storing | ||||||
3 | gas; | ||||||
4 | (viii) any sale to a customer if the taxpayer is | ||||||
5 | prohibited by federal
or State constitution, treaty, | ||||||
6 | convention, statute or court decision from
recovering the | ||||||
7 | related tax liability from such customer; | ||||||
8 | (ix) any charges added to customers' bills pursuant to | ||||||
9 | the provisions of
Section 9-221 or Section 9-222 of the | ||||||
10 | Public Utilities Act, as amended,
or any charges added to | ||||||
11 | customers' bills by taxpayers who are not subject to
rate | ||||||
12 | regulation by the Illinois Commerce Commission for the | ||||||
13 | purpose of
recovering any of the tax liabilities or other | ||||||
14 | amounts specified in such
provisions of such Act; and | ||||||
15 | (x) prior to October 1, 2003, any charge for gas or gas | ||||||
16 | services to a
customer who acquired
contractual rights for | ||||||
17 | the direct purchase of gas or gas services originating
from | ||||||
18 | an out-of-state supplier or source on or before March 1, | ||||||
19 | 1995, except for
those charges solely related to the local | ||||||
20 | distribution of gas by a public
utility. This exemption | ||||||
21 | includes any charge for gas or gas service, except
for | ||||||
22 | those charges solely related to the local distribution of | ||||||
23 | gas by a public
utility, to a customer who maintained an | ||||||
24 | account with a public utility (as
defined in Section 3-105 | ||||||
25 | of the Public Utilities Act) for the transportation of
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26 | customer-owned gas on or before March 1, 1995. The |
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1 | provisions of this
amendatory Act of 1997 are intended to | ||||||
2 | clarify, rather than change, existing
law as to the meaning | ||||||
3 | and scope of this exemption. This exemption (x)
expires on | ||||||
4 | September 30, 2003. | ||||||
5 | In case credit is extended, the amount thereof shall be | ||||||
6 | included only as and
when payments are received. | ||||||
7 | "Gross receipts" shall not include consideration received | ||||||
8 | from business
enterprises certified under Section 9-222.1 of | ||||||
9 | the Public Utilities
Act, as amended, to the extent of such | ||||||
10 | exemption and during the
period of time specified by the | ||||||
11 | Department of Commerce and Economic Opportunity. | ||||||
12 | "Gross receipts" does not include consideration received | ||||||
13 | from any business enterprise that is properly assigned or | ||||||
14 | included within one of the following Standard Industrial | ||||||
15 | Classifications, as designated in the Standard Industrial | ||||||
16 | Classification Manual prepared by the federal Office of | ||||||
17 | Management and Budget: 10; 12; 13; 14; 15; 16; 17; 20; 21; 22; | ||||||
18 | 23; 24; 25; 26; 27; 28; 29; 30; 31; 32; 33; 34; 35; 36; 37; 38; | ||||||
19 | or 39, during the period in time in which such business | ||||||
20 | enterprise provides a valid exemption certificate (as | ||||||
21 | determined by the Illinois Department of Revenue) to their gas | ||||||
22 | supplier and delivering gas utility. Gas suppliers and | ||||||
23 | delivering gas utilities may reasonably rely on exemption | ||||||
24 | certificates provided by those business enterprises.
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25 | "Department" means the Department of Revenue of the State | ||||||
26 | of Illinois. |
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1 | "Director" means the Director of Revenue for the Department | ||||||
2 | of Revenue of the
State of Illinois. | ||||||
3 | "Taxpayer" means a person engaged in the business of | ||||||
4 | distributing, supplying,
furnishing or selling gas for use or | ||||||
5 | consumption and not for resale. | ||||||
6 | "Person" means any natural individual, firm, trust, | ||||||
7 | estate, partnership,
association, joint stock company, joint | ||||||
8 | adventure, corporation, limited
liability company, or a | ||||||
9 | receiver, trustee, guardian or other representative
appointed | ||||||
10 | by order of any court, or any city, town, county or other | ||||||
11 | political
subdivision of this State. | ||||||
12 | "Invested capital" means that amount equal to (i) the | ||||||
13 | average of the balances
at the beginning and end of each | ||||||
14 | taxable period of the taxpayer's total
stockholder's equity and | ||||||
15 | total long-term debt, less investments in and advances
to all | ||||||
16 | corporations, as set forth on the balance sheets included in | ||||||
17 | the
taxpayer's annual report to the Illinois Commerce | ||||||
18 | Commission for the taxable
period; (ii) multiplied by a | ||||||
19 | fraction determined under Sections 301 and
304(a) of the | ||||||
20 | "Illinois Income Tax Act" and reported on the Illinois income
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21 | tax return for the taxable period ending in or with the taxable | ||||||
22 | period in
question. However, notwithstanding the income tax | ||||||
23 | return reporting
requirement stated above, beginning July 1, | ||||||
24 | 1979, no taxpayer's
denominators used to compute the sales, | ||||||
25 | property or payroll factors under
subsection (a) of Section 304 | ||||||
26 | of the Illinois Income Tax Act shall include
payroll, property |
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1 | or sales of any corporate entity other than the taxpayer
for | ||||||
2 | the purposes of determining an allocation for the invested | ||||||
3 | capital tax.
This amendatory Act of 1982, Public Act 82-1024, | ||||||
4 | is not intended to and
does not make any change in the meaning | ||||||
5 | of any provision of this Act, it
having been the intent of the | ||||||
6 | General Assembly in initially enacting the
definition of | ||||||
7 | "invested capital" to provide for apportionment of the
invested | ||||||
8 | capital of each company, based solely upon the sales, property | ||||||
9 | and
payroll of that company. | ||||||
10 | "Taxable period" means each period which ends after the | ||||||
11 | effective date
of this Act and which is covered by an annual | ||||||
12 | report filed by the taxpayer
with the Illinois Commerce | ||||||
13 | Commission. | ||||||
14 | (Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.) | ||||||
15 | Section 15. The Electricity Excise Tax Law is amended by | ||||||
16 | changing Section 2-4 as follows:
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17 | (35 ILCS 640/2-4)
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18 | Sec. 2-4. Tax imposed.
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19 | (a) Except as provided in subsection (b), a tax is
imposed | ||||||
20 | on the privilege
of using in this State electricity purchased | ||||||
21 | for use or
consumption and not for resale, other than by | ||||||
22 | municipal corporations owning and
operating a local | ||||||
23 | transportation system for public service, at the following
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24 | rates per
kilowatt-hour delivered to the purchaser:
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1 | (i) For the first 2000 kilowatt-hours used or
consumed | ||||||
2 | in a month: 0.330 cents per kilowatt-hour;
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3 | (ii) For the next 48,000 kilowatt-hours used or
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4 | consumed in a month: 0.319 cents per kilowatt-hour;
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5 | (iii) For the next 50,000 kilowatt-hours used or
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6 | consumed in a month: 0.303 cents per kilowatt-hour;
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7 | (iv) For the next 400,000 kilowatt-hours used or
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8 | consumed in a month: 0.297 cents per kilowatt-hour;
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9 | (v) For the next 500,000 kilowatt-hours used or
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10 | consumed in a month: 0.286 cents per kilowatt-hour;
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11 | (vi) For the next 2,000,000 kilowatt-hours used or
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12 | consumed in a month: 0.270 cents per kilowatt-hour;
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13 | (vii) For the next 2,000,000 kilowatt-hours used or
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14 | consumed in a month: 0.254 cents per kilowatt-hour;
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15 | (viii) For the next 5,000,000 kilowatt-hours used
or | ||||||
16 | consumed in a month: 0.233 cents per kilowatt-hour;
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17 | (ix) For the next 10,000,000 kilowatt-hours used or
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18 | consumed in a month: 0.207 cents per kilowatt-hour;
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19 | (x) For all electricity in excess of 20,000,000
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20 | kilowatt-hours used or consumed in a month: 0.202 cents
per | ||||||
21 | kilowatt-hour.
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22 | Provided, that in lieu of the foregoing rates, the tax
is | ||||||
23 | imposed on a self-assessing purchaser at the rate of 5.1%
of | ||||||
24 | the self-assessing purchaser's purchase price for
all | ||||||
25 | electricity distributed, supplied, furnished, sold,
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26 | transmitted and delivered to the self-assessing purchaser in a
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1 | month.
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2 | (b) A tax is imposed on the privilege of using in this | ||||||
3 | State electricity
purchased from a municipal system or electric | ||||||
4 | cooperative, as defined in
Article XVII of the Public Utilities | ||||||
5 | Act, which has not made an election as
permitted by either | ||||||
6 | Section 17-200 or Section 17-300 of such Act, at the lesser
of | ||||||
7 | 0.32 cents per kilowatt hour of all electricity distributed, | ||||||
8 | supplied,
furnished, sold, transmitted, and delivered by such | ||||||
9 | municipal system or
electric cooperative to the purchaser or 5% | ||||||
10 | of each such purchaser's purchase
price for all electricity | ||||||
11 | distributed, supplied, furnished, sold, transmitted,
and | ||||||
12 | delivered by such municipal system or electric cooperative to | ||||||
13 | the
purchaser, whichever is the lower rate as applied to each | ||||||
14 | purchaser in each
billing period.
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15 | (c) The tax imposed by this Section 2-4 is not imposed : (i) | ||||||
16 | with
respect to any use of electricity by business enterprises
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17 | certified under Section 9-222.1 or 9-222.1A of the Public | ||||||
18 | Utilities Act,
as amended, to the extent of such exemption and | ||||||
19 | during the
time specified by the Department of Commerce and | ||||||
20 | Economic Opportunity; (ii) with respect to any use by any | ||||||
21 | business enterprise that is properly assigned or included | ||||||
22 | within one of the following Standard Industrial | ||||||
23 | Classifications, as designated in the Standard Industrial | ||||||
24 | Classification Manual prepared by the federal Office of | ||||||
25 | Management and Budget: 10; 12; 13; 14; 15; 16; 17; 20; 21; 22; | ||||||
26 | 23; 24; 25; 26; 27; 28; 29; 30; 31; 32; 33; 34; 35; 36; 37; 38; |
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1 | or 39, in the process of manufacturing or assembling tangible | ||||||
2 | personal property for wholesale or for retail sale or lease; or | ||||||
3 | (iii) with respect to any transaction in interstate
commerce, | ||||||
4 | or otherwise, to the extent to which such
transaction may not, | ||||||
5 | under the Constitution and statutes of
the United States, be | ||||||
6 | made the subject of taxation by this
State.
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7 | (Source: P.A. 94-793, eff. 5-19-06.)
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8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.
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