Full Text of HB4300 101st General Assembly
HB4300 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB4300 Introduced 1/28/2020, by Rep. Daniel Didech SYNOPSIS AS INTRODUCED: |
| New Act | | 30 ILCS 105/5.891 new | | 30 ILCS 105/5.892 new | | 30 ILCS 105/5.893 new | |
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Creates the Coal Severance Tax Act. Imposes a tax upon the severance and preparation of coal for sale, profit, or commercial use, if the coal is severed from a mine located in this State. Provides that the rate of tax is 5% of the gross value of the severed coal. Contains provisions concerning returns and penalties. Effective January 1, 2020.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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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 1. Short title. This Act may be cited as the the | 5 | | "Coal Severance Tax Act". | 6 | | Section 5. Definitions. | 7 | | "Department" means the Illinois Department of Revenue. | 8 | | "Person" means any natural individual, firm, partnership, | 9 | | association, joint stock company, joint adventure, public or | 10 | | private corporation, limited liability company, or a receiver, | 11 | | executor, trustee, guardian, or other representative appointed | 12 | | by order of any court. | 13 | | Section 10. Tax imposed. | 14 | | (a) On and after January 1, 2020, there is hereby imposed a | 15 | | tax upon any person engaged in the business of severing or | 16 | | preparing coal for sale, profit, or commercial use, if the coal | 17 | | is severed from a mine located in this State. The rate of the | 18 | | tax imposed under this Section is 5% of the gross value of the | 19 | | severed coal. | 20 | | (b) The liability for the tax accrues at the time the coal | 21 | | is severed. |
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| 1 | | Section 15. Payment and collection of tax. | 2 | | (a) The tax imposed under this Act shall be due and payable | 3 | | on or before the 20th day of the month following the month in | 4 | | which the coal is severed. | 5 | | (b) The State shall have a lien on all coal severed in this | 6 | | State on or after January 1, 2016 to secure the payment of the | 7 | | tax. | 8 | | Section 20. Registration. A person who is subject to the | 9 | | tax imposed under this Act shall register with the Department. | 10 | | Application for a certificate of registration shall be made to | 11 | | the Department upon forms furnished by the Department and shall | 12 | | contain any reasonable information the Department may require. | 13 | | Upon receipt of the application for a certificate of | 14 | | registration in proper form, the Department shall issue to the | 15 | | applicant a certificate of registration. | 16 | | Section 25. Inspection of records by Department; subpoena | 17 | | power, contempt. For the purpose of computing the amount of the | 18 | | tax due under this Act, the Department shall have the following | 19 | | powers: | 20 | | (1) to require any person who is subject to this tax to | 21 | | furnish any additional information deemed to be necessary | 22 | | for the computation of the tax; | 23 | | (2) to examine books, records, and files of such | 24 | | person; and |
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| 1 | | (3) to issue subpoenas and examine witnesses under | 2 | | oath; if any witness fails or refuses to appear at the | 3 | | request of the Director, or if any witness refuses access | 4 | | to books, records, or files, the circuit court of the | 5 | | proper county, or the judge thereof, on application of the | 6 | | Department, shall compel obedience by proceedings for | 7 | | contempt, as in the case of disobedience of the | 8 | | requirements of a subpoena issued from that court or a | 9 | | refusal to testify therein. | 10 | | Section 30. Returns. | 11 | | (a) Each taxpayer shall make a return to the Department | 12 | | showing: | 13 | | (1) the name of the taxpayer; | 14 | | (2) the address of the taxpayer's principal place of | 15 | | business; | 16 | | (3) the quantity of coal severed or prepared during the | 17 | | month for which the return is filed; | 18 | | (4) the gross value of the severed coal; | 19 | | (5) the amount of tax due; | 20 | | (6) the signature of the taxpayer; and | 21 | | (7) such other reasonable information as the
| 22 | | Department may require. | 23 | | (b) The return shall be filed on or before the 20th day of | 24 | | the month after the month during which the coal is severed. The | 25 | | Department may require any additional report or information it |
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| 1 | | deems necessary for the proper administration of this Act. | 2 | | (c) Returns due under this Section shall be filed | 3 | | electronically in the manner prescribed by the Department. | 4 | | Taxpayers shall make all payments of the tax to the Department | 5 | | under this Act by electronic funds transfer unless, as provided | 6 | | by rule, the Department grants an exception upon petition of a | 7 | | taxpayer. Returns must be accompanied by appropriate computer | 8 | | generated magnetic media supporting schedule data in the format | 9 | | required by the Department, unless, as provided by rule, the | 10 | | Department grants an exception upon petition of a taxpayer. | 11 | | Section 35. Incorporation by reference. All of the | 12 | | provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 6, | 13 | | 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the "Retailers' | 14 | | Occupation Tax Act" which are not inconsistent with this Act, | 15 | | and all provisions of the Uniform Penalty and Interest Act | 16 | | shall apply, as far as practicable, to the subject matter of | 17 | | this Act to the same extent as if such provisions were included | 18 | | herein. | 19 | | Section 40. Rulemaking. The Department is hereby | 20 | | authorized to adopt such rules as may be necessary to | 21 | | administer and enforce the provisions of this Act. | 22 | | Section 45. The Community Choice Fund; creation. The | 23 | | Community Choice Fund is hereby created as a special fund in |
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| 1 | | the State Treasury. Moneys in the Community Choice Fund shall | 2 | | be used by the Department of Healthcare and Family Services to | 3 | | make grants to Rural Health Centers and Federally Qualified | 4 | | Hospitals designated as such
by the Secretary of the United | 5 | | States Department of Health and Human Services. | 6 | | Section 50. The Coal-Producing Counties Revenue Fund and | 7 | | the All Counties and Municipalities Coal Revenue Fund. | 8 | | (a) The Coal-Producing Counties Revenue Fund and the All | 9 | | Counties and Municipalities Coal Revenue Fund are hereby | 10 | | created as special funds in the State Treasury. | 11 | | (b) Moneys in the Coal-Producing Counties Revenue Fund | 12 | | shall be distributed each quarter to counties in the State by: | 13 | | (1) dividing the total amount of moneys in the Fund then | 14 | | available for distribution by the total number of tons of coal | 15 | | mined in this State during the preceding quarter; and (2) | 16 | | multiplying that quotient by the number of tons of coal removed | 17 | | from the ground in the particular county during the preceding | 18 | | quarter. | 19 | | (c) Moneys in the All Counties and Municipalities Coal | 20 | | Revenue Fund shall be allocated each quarter as follows: | 21 | | (1) the State Treasurer shall first apportion the total | 22 | | amount of moneys available in the Fund by multiplying the | 23 | | total amount in the Fund by the percentage which the | 24 | | population of each county bears to the total population of | 25 | | the State; the amount so apportioned for each county is the |
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| 1 | | county's base share; and | 2 | | (2) each county's base share shall then be subdivided | 3 | | into a county portion and a municipal portion; the county | 4 | | portion shall be determined by multiplying the base share | 5 | | by the percentage which the total population of all | 6 | | unincorporated areas within the county bears to the total | 7 | | population of the county, and the municipal portion shall | 8 | | be determined by multiplying the base share by the | 9 | | percentage which the total population of all | 10 | | municipalities within the county bears to the total | 11 | | population of the county; the county portion shall be paid | 12 | | to the county, and the municipal portion shall be paid to | 13 | | the municipalities of the county; each municipality's | 14 | | share of the municipal portion shall be determined by | 15 | | multiplying the total municipal portion by the percentage | 16 | | which the population of that municipality within the county | 17 | | bears to the total population of all municipalities within | 18 | | the county. | 19 | | Section 55. Distribution of proceeds. Moneys received | 20 | | under this Act shall be distributed as follows: | 21 | | (1) one-third shall be deposited into the Community | 22 | | Choice Fund; | 23 | | (2) one-third shall be deposited into the General | 24 | | Revenue Fund and shall be used to pay the State's past due | 25 | | bills; as used in this Section "past due bill" means a |
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| 1 | | pending voucher approved for payment by the State | 2 | | Comptroller but remaining unpaid at least 60 days after the | 3 | | due date; and | 4 | | (3) of the remaining one-third, 75% shall be deposited | 5 | | into the Coal-Producing Counties Revenue Fund and 25% shall | 6 | | be deposited into the All Counties and Municipalities Coal | 7 | | Revenue Fund. | 8 | | Section 90. The State Finance Act is amended by adding | 9 | | Sections 5.891, 5.892, and 5.893 as follows: | 10 | | (30 ILCS 105/5.891 new) | 11 | | Sec. 5.891. The Community Choice Fund. | 12 | | (30 ILCS 105/5.892 new) | 13 | | Sec. 5.892. The Coal-Producing Counties Revenue Fund. | 14 | | (30 ILCS 105/5.893 new) | 15 | | Sec. 5.893. The All Counties and Municipalities Coal | 16 | | Revenue Fund. | 17 | | Section 99. Effective date. This Act takes effect January | 18 | | 1, 2021.
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