Full Text of HB4599 96th General Assembly
HB4599eng 96TH GENERAL ASSEMBLY
|
|
|
HB4599 Engrossed |
|
LRB096 13427 HLH 28156 b |
|
| 1 |
| AN ACT concerning revenue.
| 2 |
| Be it enacted by the People of the State of Illinois,
| 3 |
| represented in the General Assembly:
| 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 |
|
|
|
HB4599 Engrossed |
- 2 - |
LRB096 13427 HLH 28156 b |
|
| 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.) |
|
|
|
HB4599 Engrossed |
- 3 - |
LRB096 13427 HLH 28156 b |
|
| 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
| 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 |
|
|
|
HB4599 Engrossed |
- 4 - |
LRB096 13427 HLH 28156 b |
|
| 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
| 26 |
| customer-owned gas on or before March 1, 1995. The |
|
|
|
HB4599 Engrossed |
- 5 - |
LRB096 13427 HLH 28156 b |
|
| 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.
| 25 |
| "Department" means the Department of Revenue of the State | 26 |
| of Illinois. |
|
|
|
HB4599 Engrossed |
- 6 - |
LRB096 13427 HLH 28156 b |
|
| 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
| 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 |
|
|
|
HB4599 Engrossed |
- 7 - |
LRB096 13427 HLH 28156 b |
|
| 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:
| 17 |
| (35 ILCS 640/2-4)
| 18 |
| Sec. 2-4. Tax imposed.
| 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
| 24 |
| rates per
kilowatt-hour delivered to the purchaser:
|
|
|
|
HB4599 Engrossed |
- 8 - |
LRB096 13427 HLH 28156 b |
|
| 1 |
| (i) For the first 2000 kilowatt-hours used or
consumed | 2 |
| in a month: 0.330 cents per kilowatt-hour;
| 3 |
| (ii) For the next 48,000 kilowatt-hours used or
| 4 |
| consumed in a month: 0.319 cents per kilowatt-hour;
| 5 |
| (iii) For the next 50,000 kilowatt-hours used or
| 6 |
| consumed in a month: 0.303 cents per kilowatt-hour;
| 7 |
| (iv) For the next 400,000 kilowatt-hours used or
| 8 |
| consumed in a month: 0.297 cents per kilowatt-hour;
| 9 |
| (v) For the next 500,000 kilowatt-hours used or
| 10 |
| consumed in a month: 0.286 cents per kilowatt-hour;
| 11 |
| (vi) For the next 2,000,000 kilowatt-hours used or
| 12 |
| consumed in a month: 0.270 cents per kilowatt-hour;
| 13 |
| (vii) For the next 2,000,000 kilowatt-hours used or
| 14 |
| consumed in a month: 0.254 cents per kilowatt-hour;
| 15 |
| (viii) For the next 5,000,000 kilowatt-hours used
or | 16 |
| consumed in a month: 0.233 cents per kilowatt-hour;
| 17 |
| (ix) For the next 10,000,000 kilowatt-hours used or
| 18 |
| consumed in a month: 0.207 cents per kilowatt-hour;
| 19 |
| (x) For all electricity in excess of 20,000,000
| 20 |
| kilowatt-hours used or consumed in a month: 0.202 cents
per | 21 |
| kilowatt-hour.
| 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,
| 26 |
| transmitted and delivered to the self-assessing purchaser in a
|
|
|
|
HB4599 Engrossed |
- 9 - |
LRB096 13427 HLH 28156 b |
|
| 1 |
| month.
| 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.
| 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
| 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; |
|
|
|
HB4599 Engrossed |
- 10 - |
LRB096 13427 HLH 28156 b |
|
| 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.
| 7 |
| (Source: P.A. 94-793, eff. 5-19-06.)
| 8 |
| Section 99. Effective date. This Act takes effect upon | 9 |
| becoming law.
|
|