Full Text of HB4724 100th General Assembly
HB4724 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB4724 Introduced , by Rep. Natalie Phelps Finnie SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Hydraulic Fracturing Tax Act. Removes provisions concerning first purchaser exemption certificates.
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| | | FISCAL NOTE ACT MAY APPLY | |
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| 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 Illinois Hydraulic Fracturing Tax Act is | 5 | | amended by changing Section 2-30 as follows: | 6 | | (35 ILCS 450/2-30)
| 7 | | Sec. 2-30. Payment and collection of tax. | 8 | | (a) For oil and gas removed on or after July 1, 2013, the | 9 | | tax incurred under this Act shall be due and payable on or | 10 | | before the last day of the month following the end of the month | 11 | | in which the oil or gas is removed from the production unit. | 12 | | The tax is upon the producers of such oil or gas in the | 13 | | proportion to their respective beneficial interests at the time | 14 | | of severance. The first purchaser of any oil or gas sold shall | 15 | | collect the amount of the tax due from the producers by | 16 | | deducting and withholding such amount from any payments made by | 17 | | such purchaser to the producers and shall remit the tax in this | 18 | | Act. | 19 | | In the event the tax shall be withheld by a purchaser from | 20 | | payments due a producer and such purchaser fails to make | 21 | | payment of the tax to the State as required herein, the first | 22 | | purchaser shall be liable for the tax. However, in the event a | 23 | | first purchaser fails to pay the tax withheld from a producer's |
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| 1 | | payment, the producer's interest remains subject to any lien | 2 | | filed pursuant to subsection (c) of this Section. A producer | 3 | | shall be entitled to bring an action against such purchaser to | 4 | | recover the amount of tax so withheld together with penalties | 5 | | and interest which may have accrued by failure to make such | 6 | | payment. A producer shall be entitled to all attorney fees and | 7 | | court costs incurred in such action. To the extent that a | 8 | | producer liable for the tax imposed by this Act collects the | 9 | | tax, and any penalties and interest, from a purchaser, such | 10 | | tax, penalties, and interest are held in trust by the producer | 11 | | for the benefit of the State of Illinois. | 12 | | (b) For all production units permitted, or required to be | 13 | | permitted, under this Act that a first purchaser begins to | 14 | | purchase oil or gas from on or after July 1, 2013, the first | 15 | | purchaser is required to withhold and remit the tax imposed by | 16 | | this Act to the Department from the oil and gas purchased from | 17 | | the production unit . The changes made by this amendatory Act of | 18 | | the 100th General Assembly apply to taxes required to be | 19 | | withheld on or after the effective date of this amendatory Act | 20 | | of the 100th General Assembly. No exemption certificate issued | 21 | | prior to the effective date of this amendatory Act of the 100th | 22 | | General Assembly shall be valid on or after the effective date | 23 | | of this amendatory Act of the 100th General Assembly. unless | 24 | | the first purchaser obtains from the operator an exemption | 25 | | certificate signed by the operator stating that the production | 26 | | unit is not subject to the tax imposed by this Act. The |
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| 1 | | exemption certificate must include the following information: | 2 | | (1) name and address of the operator; | 3 | | (2) name of the production unit; | 4 | | (3) number assigned to the production unit by the first | 5 | | purchaser, if available; | 6 | | (4) legal description of the production unit; and | 7 | | (5) a statement by the operator that the production | 8 | | unit is exempt from the tax imposed by the Illinois | 9 | | Hydraulic Fracturing Tax Act. | 10 | | If a first purchaser obtains an exemption certificate that | 11 | | contains the required information and reasonably relies on the | 12 | | exemption certificate and it is subsequently determined by the | 13 | | Department that the production unit is subject to the tax | 14 | | imposed by this Act, the Department will collect any tax that | 15 | | is due from the operator and producers, and the first purchaser | 16 | | is relieved of any liability. | 17 | | (c) Notwithstanding subsection (a) of this Section, the tax | 18 | | is a lien on the oil and gas from the time of severance from the | 19 | | land or under the water until the tax and all penalties and | 20 | | interest are fully paid, and the State shall have a lien on all | 21 | | the oil or gas severed from the production unit in this State | 22 | | in the hands of the operator, any producer or the first or any | 23 | | subsequent purchaser thereof to secure the payment of the tax. | 24 | | If a lien is filed by the Department, the purchaser shall | 25 | | withhold from producers or operators the amount of tax, penalty | 26 | | and interest identified in the lien.
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| 1 | | (Source: P.A. 98-22, eff. 6-17-13.)
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