HB5014 95TH GENERAL ASSEMBLY

LRB095 17816 BDD 43895 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB5014

Introduced , by Rep. George Scully, Jr.

SYNOPSIS AS INTRODUCED:

35 ILCS 615/2

from Ch. 120, par. 467.17

Amends the Gas Revenue Tax Act. Provides that each July 1, beginning on July 1, 2008, the rate of the tax imposed for gas that is distributed, supplied, furnished, sold, or transported to a residential customer is reduced by $0.006 per therm until the rate of the tax is zero, but provides that, in no case, shall the tax be imposed with respect to gas that is distributed, supplied, furnished, sold, or transported to a residential customer on or after July 1, 2012. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Gas Revenue Tax Act is amended by changing Section 2 as follows:

(35 ILCS 615/2) (from Ch. 120, par. 467.17)

Sec. 2. Tax imposed; rate; phase-out for residential customers.

(a) Except as provided in subsection (b), a A tax is imposed upon persons engaged in the business of distributing, supplying, furnishing or selling gas to persons for use or consumption and not for resale at the rate of 2.4 cents per therm of all gas which is so distributed, supplied, furnished, sold or transported 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 this amendatory Act of 1985 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 business 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 this amendatory Act of 1985 shall impose a tax with respect to any transaction with respect to which no tax was imposed immediately preceding the effective date of this amendatory Act of 1985.

Beginning with bills issued to customers on and after October 1, 2003, no tax shall be imposed under this Act on transactions with customers who incur a tax liability under the Gas Use Tax Law.

(b) Each July 1, beginning on July 1, 2008, the rate of the tax imposed under this Section for gas that is distributed, supplied, furnished, sold, or transported to a residential customer is reduced by $0.006 per therm until the rate of the tax is zero. In no case, however, shall the tax under this Section be imposed with respect to gas that is distributed, supplied, furnished, sold, or transported to a residential customer on or after July 1, 2012.

For purposes of this subsection, "residential customer" means a customer who is receiving gas or gas service for household purposes that is either (i) distributed to a dwelling of 2 or fewer units and billed under a residential rate or (ii) distributed to a dwelling unit or units, billed under a residential rate, and registered by a separate meter for each dwelling unit.

(Source: P.A. 93-31, eff. 10-1-03.)

Section 99. Effective date. This Act takes effect upon becoming law.