Full Text of SB1697 95th General Assembly
SB1697eng 95TH GENERAL ASSEMBLY
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Gas Use Tax Law is amended by changing | 5 |
| Section 5-10 as follows:
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| (35 ILCS 173/5-10)
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| Sec. 5-10. Imposition of tax. Beginning October 1, 2003, a | 8 |
| tax is imposed
upon the privilege of
using in
this State gas | 9 |
| obtained in a purchase of out-of-state gas
at the rate of 2.4 | 10 |
| cents per therm or 5%
of the
purchase price for the billing | 11 |
| period, whichever is the lower rate.
Such tax rate shall be | 12 |
| referred to as the "self-assessing purchaser tax rate".
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| Beginning
with bills issued by delivering suppliers on and | 14 |
| after October 1, 2003,
purchasers
may elect
an alternative tax | 15 |
| rate of 2.4 cents per therm to be paid under the provisions
of | 16 |
| Section 5-15 of this Law to a delivering supplier maintaining a | 17 |
| place of
business in this
State. Such
tax rate shall be | 18 |
| referred to as the "alternate tax rate". | 19 |
| The tax imposed
under this Section
shall not apply to gas | 20 |
| used by business enterprises certified under
Section 9-222.1 of | 21 |
| the
Public Utilities Act, as amended, to the extent of such | 22 |
| exemption and during
the
period of
time specified by the | 23 |
| Department of Commerce and Economic Opportunity. |
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| The tax imposed under this Section does not apply to gas | 2 |
| used by any business enterprise that is properly assigned or | 3 |
| included within one of the following Standard Industrial | 4 |
| Classifications, as designated in the Standard Industrial | 5 |
| Classification Manual prepared by the federal Office of | 6 |
| Management and Budget: 10; 12; 13; 14; 21; 22; 23; 24; 25; 26; | 7 |
| 27; 28; 29; 30; 31; 32; 33; 34; 35; 36; 37; 38; or 39.
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| (Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.)
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| Section 10. The Gas Revenue Tax Act is amended by changing | 10 |
| Section 1 as follows:
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| (35 ILCS 615/1) (from Ch. 120, par. 467.16)
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| Sec. 1. For the purposes of this Act: "Gross receipts" | 13 |
| means the consideration received for gas
distributed, | 14 |
| supplied, furnished or sold to persons for use or
consumption | 15 |
| and not for resale, and for all services (including the
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| transportation or storage of gas for an end-user) rendered in | 17 |
| connection
therewith, and shall include cash, services and | 18 |
| property of every kind or
nature, and shall be determined | 19 |
| without any deduction on account of the
cost of the service, | 20 |
| product or commodity supplied, the cost of materials
used, | 21 |
| labor or service costs, or any other expense whatsoever. | 22 |
| However,
"gross receipts" shall not include receipts from:
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| (i) any minimum or other charge for gas or gas service | 24 |
| where the
customer has taken no therms of gas;
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| (ii) any charge for a dishonored check;
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| (iii) any finance or credit charge, penalty or charge | 3 |
| for delayed
payment, or discount for prompt payment;
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| (iv) any charge for reconnection of service or for | 5 |
| replacement or
relocation of facilities;
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| (v) any advance or contribution in aid of construction;
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| (vi) repair, inspection or servicing of equipment | 8 |
| located on customer
premises;
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| (vii) leasing or rental of equipment, the leasing or | 10 |
| rental of which is
not necessary to distributing, | 11 |
| furnishing, supplying, selling, transporting
or storing | 12 |
| gas;
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| (viii) any sale to a customer if the taxpayer is | 14 |
| prohibited by federal
or State constitution, treaty, | 15 |
| convention, statute or court decision from
recovering the | 16 |
| related tax liability from such customer;
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| (ix) any charges added to customers' bills pursuant to | 18 |
| the provisions of
Section 9-221 or Section 9-222 of the | 19 |
| Public Utilities Act, as amended,
or any charges added to | 20 |
| customers' bills by taxpayers who are not subject to
rate | 21 |
| regulation by the Illinois Commerce Commission for the | 22 |
| purpose of
recovering any of the tax liabilities or other | 23 |
| amounts specified in such
provisions of such Act; and
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| (x) prior to October 1, 2003, any charge for gas or gas | 25 |
| services to a
customer who acquired
contractual rights for | 26 |
| the direct purchase of gas or gas services originating
from |
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| an out-of-state supplier or source on or before March 1, | 2 |
| 1995, except for
those charges solely related to the local | 3 |
| distribution of gas by a public
utility. This exemption | 4 |
| includes any charge for gas or gas service, except
for | 5 |
| those charges solely related to the local distribution of | 6 |
| gas by a public
utility, to a customer who maintained an | 7 |
| account with a public utility (as
defined in Section 3-105 | 8 |
| of the Public Utilities Act) for the transportation of
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| customer-owned gas on or before March 1, 1995. The | 10 |
| provisions of this
amendatory Act of 1997 are intended to | 11 |
| clarify, rather than change, existing
law as to the meaning | 12 |
| and scope of this exemption. This exemption (x)
expires on | 13 |
| September 30, 2003.
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| In case credit is extended, the amount thereof shall be | 15 |
| included only as and
when payments are received.
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| "Gross receipts" shall not include consideration received | 17 |
| from business
enterprises certified under Section 9-222.1 of | 18 |
| the Public Utilities
Act, as amended, to the extent of such | 19 |
| exemption and during the
period of time specified by the | 20 |
| Department of Commerce and Economic Opportunity.
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| "Gross receipts" does not include consideration received | 22 |
| from any business enterprise that is properly assigned or | 23 |
| included within one of the following Standard Industrial | 24 |
| Classifications, as designated in the Standard Industrial | 25 |
| Classification Manual prepared by the federal Office of | 26 |
| Management and Budget: 10; 12; 13; 14; 21; 22; 23; 24; 25; 26; |
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| 27; 28; 29; 30; 31; 32; 33; 34; 35; 36; 37; 38; or 39.
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| "Department" means the Department of Revenue of the State | 3 |
| of Illinois.
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| "Director" means the Director of Revenue for the Department | 5 |
| of Revenue of the
State of Illinois.
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| "Taxpayer" means a person engaged in the business of | 7 |
| distributing, supplying,
furnishing or selling gas for use or | 8 |
| consumption and not for resale.
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| "Person" means any natural individual, firm, trust, | 10 |
| estate, partnership,
association, joint stock company, joint | 11 |
| adventure, corporation, limited
liability company, or a | 12 |
| receiver, trustee, guardian or other representative
appointed | 13 |
| by order of any court, or any city, town, county or other | 14 |
| political
subdivision of this State.
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| "Invested capital" means that amount equal to (i) the | 16 |
| average of the balances
at the beginning and end of each | 17 |
| taxable period of the taxpayer's total
stockholder's equity and | 18 |
| total long-term debt, less investments in and advances
to all | 19 |
| corporations, as set forth on the balance sheets included in | 20 |
| the
taxpayer's annual report to the Illinois Commerce | 21 |
| Commission for the taxable
period; (ii) multiplied by a | 22 |
| fraction determined under Sections 301 and
304(a) of the | 23 |
| "Illinois Income Tax Act" and reported on the Illinois income
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| tax return for the taxable period ending in or with the taxable | 25 |
| period in
question. However, notwithstanding the income tax | 26 |
| return reporting
requirement stated above, beginning July 1, |
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| 1979, no taxpayer's
denominators used to compute the sales, | 2 |
| property or payroll factors under
subsection (a) of Section 304 | 3 |
| of the Illinois Income Tax Act shall include
payroll, property | 4 |
| or sales of any corporate entity other than the taxpayer
for | 5 |
| the purposes of determining an allocation for the invested | 6 |
| capital tax.
This amendatory Act of 1982, Public Act 82-1024, | 7 |
| is not intended to and
does not make any change in the meaning | 8 |
| of any provision of this Act, it
having been the intent of the | 9 |
| General Assembly in initially enacting the
definition of | 10 |
| "invested capital" to provide for apportionment of the
invested | 11 |
| capital of each company, based solely upon the sales, property | 12 |
| and
payroll of that company.
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| "Taxable period" means each period which ends after the | 14 |
| effective date
of this Act and which is covered by an annual | 15 |
| report filed by the taxpayer
with the Illinois Commerce | 16 |
| Commission.
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| (Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.)
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| Section 15. The Electricity Excise Tax Law is amended by | 19 |
| changing Section 2-4 as follows:
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| (35 ILCS 640/2-4)
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| Sec. 2-4. Tax imposed.
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| (a) Except as provided in subsection (b), a tax is
imposed | 23 |
| on the privilege
of using in this State electricity purchased | 24 |
| for use or
consumption and not for resale, other than by |
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| municipal corporations owning and
operating a local | 2 |
| transportation system for public service, at the following
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| rates per
kilowatt-hour delivered to the purchaser:
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| (i) For the first 2000 kilowatt-hours used or
consumed | 5 |
| in a month: 0.330 cents per kilowatt-hour;
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| (ii) For the next 48,000 kilowatt-hours used or
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| consumed in a month: 0.319 cents per kilowatt-hour;
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| (iii) For the next 50,000 kilowatt-hours used or
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| consumed in a month: 0.303 cents per kilowatt-hour;
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| (iv) For the next 400,000 kilowatt-hours used or
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| consumed in a month: 0.297 cents per kilowatt-hour;
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| (v) For the next 500,000 kilowatt-hours used or
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| consumed in a month: 0.286 cents per kilowatt-hour;
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| (vi) For the next 2,000,000 kilowatt-hours used or
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| consumed in a month: 0.270 cents per kilowatt-hour;
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| (vii) For the next 2,000,000 kilowatt-hours used or
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| consumed in a month: 0.254 cents per kilowatt-hour;
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| (viii) For the next 5,000,000 kilowatt-hours used
or | 19 |
| consumed in a month: 0.233 cents per kilowatt-hour;
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| (ix) For the next 10,000,000 kilowatt-hours used or
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| consumed in a month: 0.207 cents per kilowatt-hour;
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| (x) For all electricity in excess of 20,000,000
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| kilowatt-hours used or consumed in a month: 0.202 cents
per | 24 |
| kilowatt-hour.
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| Provided, that in lieu of the foregoing rates, the tax
is | 26 |
| imposed on a self-assessing purchaser at the rate of 5.1%
of |
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| the self-assessing purchaser's purchase price for
all | 2 |
| electricity distributed, supplied, furnished, sold,
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| transmitted and delivered to the self-assessing purchaser in a
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| month.
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| (b) A tax is imposed on the privilege of using in this | 6 |
| State electricity
purchased from a municipal system or electric | 7 |
| cooperative, as defined in
Article XVII of the Public Utilities | 8 |
| Act, which has not made an election as
permitted by either | 9 |
| Section 17-200 or Section 17-300 of such Act, at the lesser
of | 10 |
| 0.32 cents per kilowatt hour of all electricity distributed, | 11 |
| supplied,
furnished, sold, transmitted, and delivered by such | 12 |
| municipal system or
electric cooperative to the purchaser or 5% | 13 |
| of each such purchaser's purchase
price for all electricity | 14 |
| distributed, supplied, furnished, sold, transmitted,
and | 15 |
| delivered by such municipal system or electric cooperative to | 16 |
| the
purchaser, whichever is the lower rate as applied to each | 17 |
| purchaser in each
billing period.
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| (c) The tax imposed by this Section 2-4 is not imposed : (i) | 19 |
| with
respect to any use of electricity by business enterprises
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| certified under Section 9-222.1 or 9-222.1A of the Public | 21 |
| Utilities Act,
as amended, to the extent of such exemption and | 22 |
| during the
time specified by the Department of Commerce and | 23 |
| Economic Opportunity; (ii) with respect to any use by the | 24 |
| purchaser in the process of manufacturing or assembling | 25 |
| tangible personal property for wholesale or for retail sale or | 26 |
| lease; or (iii) with respect to any transaction in interstate
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| commerce, or otherwise, to the extent to which such
transaction | 2 |
| may not, under the Constitution and statutes of
the United | 3 |
| States, be made the subject of taxation by this
State.
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| (Source: P.A. 94-793, eff. 5-19-06.)
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| Section 99. Effective date. This Act takes effect upon | 6 |
| becoming law.
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