Full Text of HB2075 097th General Assembly
HB2075 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB2075 Introduced 2/22/2011, by Rep. Lou Lang SYNOPSIS AS INTRODUCED: |
| 35 ILCS 173/5-50 | | 35 ILCS 615/1 | from Ch. 120, par. 467.16 | 35 ILCS 640/2-4 | |
| Amends the Gas Use Tax Law. Exempts certain business enterprises designated by Standard Industrial Classification from taxation under the Act. Amends the Gas Revenue Tax Act. Provides that the definition of "gross receipts" does not include consideration received from those business enterprises. Amends the Electricity Excise Tax Law. Provides that the tax under the Act is not imposed with respect to any use by those business enterprises in the process of manufacturing or assembling tangible personal property for wholesale or for retail sale or lease. Effective immediately.
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| | 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 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 |
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| 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 | | 20; 21; 22; 23; 24; 25; 26; 27; 28; 29; 30; 31; 32; 33; 34; | 22 | | 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.) |
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| 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 |
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| 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 |
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| 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; 20; 21; 22; 23; 24; 25; | 18 | | 26; 27; 28; 29; 30; 31; 32; 33; 34; 35; 36; 37; 38; or 39, | 19 | | during the period in time in which such business enterprise | 20 | | provides a valid exemption certificate (as determined by the | 21 | | Illinois Department of Revenue) to their gas supplier and | 22 | | delivering gas utility. Gas suppliers and delivering gas | 23 | | utilities may reasonably rely on exemption certificates | 24 | | provided by those business enterprises. Gas suppliers and | 25 | | delivering gas utilities may implement this exemption | 26 | | beginning with any bill issued to the business enterprise on or |
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| 1 | | after receipt of the certificate of exemption, but shall | 2 | | implement the exemption not later than the first bill issued on | 3 | | or after 30 days after receipt of the certificate of exemption.
| 4 | | "Department" means the Department of Revenue of the State | 5 | | of Illinois. | 6 | | "Director" means the Director of Revenue for the Department | 7 | | of Revenue of the
State of Illinois. | 8 | | "Taxpayer" means a person engaged in the business of | 9 | | distributing, supplying,
furnishing or selling gas for use or | 10 | | consumption and not for resale. | 11 | | "Person" means any natural individual, firm, trust, | 12 | | estate, partnership,
association, joint stock company, joint | 13 | | adventure, corporation, limited
liability company, or a | 14 | | receiver, trustee, guardian or other representative
appointed | 15 | | by order of any court, or any city, town, county or other | 16 | | political
subdivision of this State. | 17 | | "Invested capital" means that amount equal to (i) the | 18 | | average of the balances
at the beginning and end of each | 19 | | taxable period of the taxpayer's total
stockholder's equity and | 20 | | total long-term debt, less investments in and advances
to all | 21 | | corporations, as set forth on the balance sheets included in | 22 | | the
taxpayer's annual report to the Illinois Commerce | 23 | | Commission for the taxable
period; (ii) multiplied by a | 24 | | fraction determined under Sections 301 and
304(a) of the | 25 | | "Illinois Income Tax Act" and reported on the Illinois income
| 26 | | tax return for the taxable period ending in or with the taxable |
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| 1 | | period in
question. However, notwithstanding the income tax | 2 | | return reporting
requirement stated above, beginning July 1, | 3 | | 1979, no taxpayer's
denominators used to compute the sales, | 4 | | property or payroll factors under
subsection (a) of Section 304 | 5 | | of the Illinois Income Tax Act shall include
payroll, property | 6 | | or sales of any corporate entity other than the taxpayer
for | 7 | | the purposes of determining an allocation for the invested | 8 | | capital tax.
This amendatory Act of 1982, Public Act 82-1024, | 9 | | is not intended to and
does not make any change in the meaning | 10 | | of any provision of this Act, it
having been the intent of the | 11 | | General Assembly in initially enacting the
definition of | 12 | | "invested capital" to provide for apportionment of the
invested | 13 | | capital of each company, based solely upon the sales, property | 14 | | and
payroll of that company. | 15 | | "Taxable period" means each period which ends after the | 16 | | effective date
of this Act and which is covered by an annual | 17 | | report filed by the taxpayer
with the Illinois Commerce | 18 | | Commission. | 19 | | (Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.) | 20 | | Section 15. The Electricity Excise Tax Law is amended by | 21 | | changing Section 2-4 as follows:
| 22 | | (35 ILCS 640/2-4)
| 23 | | Sec. 2-4. Tax imposed.
| 24 | | (a) Except as provided in subsection (b), a tax is
imposed |
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| 1 | | on the privilege
of using in this State electricity purchased | 2 | | for use or
consumption and not for resale, other than by | 3 | | municipal corporations owning and
operating a local | 4 | | transportation system for public service, at the following
| 5 | | rates per
kilowatt-hour delivered to the purchaser:
| 6 | | (i) For the first 2000 kilowatt-hours used or
consumed | 7 | | in a month: 0.330 cents per kilowatt-hour;
| 8 | | (ii) For the next 48,000 kilowatt-hours used or
| 9 | | consumed in a month: 0.319 cents per kilowatt-hour;
| 10 | | (iii) For the next 50,000 kilowatt-hours used or
| 11 | | consumed in a month: 0.303 cents per kilowatt-hour;
| 12 | | (iv) For the next 400,000 kilowatt-hours used or
| 13 | | consumed in a month: 0.297 cents per kilowatt-hour;
| 14 | | (v) For the next 500,000 kilowatt-hours used or
| 15 | | consumed in a month: 0.286 cents per kilowatt-hour;
| 16 | | (vi) For the next 2,000,000 kilowatt-hours used or
| 17 | | consumed in a month: 0.270 cents per kilowatt-hour;
| 18 | | (vii) For the next 2,000,000 kilowatt-hours used or
| 19 | | consumed in a month: 0.254 cents per kilowatt-hour;
| 20 | | (viii) For the next 5,000,000 kilowatt-hours used
or | 21 | | consumed in a month: 0.233 cents per kilowatt-hour;
| 22 | | (ix) For the next 10,000,000 kilowatt-hours used or
| 23 | | consumed in a month: 0.207 cents per kilowatt-hour;
| 24 | | (x) For all electricity in excess of 20,000,000
| 25 | | kilowatt-hours used or consumed in a month: 0.202 cents
per | 26 | | kilowatt-hour.
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| 1 | | Provided, that in lieu of the foregoing rates, the tax
is | 2 | | imposed on a self-assessing purchaser at the rate of 5.1%
of | 3 | | the self-assessing purchaser's purchase price for
all | 4 | | electricity distributed, supplied, furnished, sold,
| 5 | | transmitted and delivered to the self-assessing purchaser in a
| 6 | | month.
| 7 | | (b) A tax is imposed on the privilege of using in this | 8 | | State electricity
purchased from a municipal system or electric | 9 | | cooperative, as defined in
Article XVII of the Public Utilities | 10 | | Act, which has not made an election as
permitted by either | 11 | | Section 17-200 or Section 17-300 of such Act, at the lesser
of | 12 | | 0.32 cents per kilowatt hour of all electricity distributed, | 13 | | supplied,
furnished, sold, transmitted, and delivered by such | 14 | | municipal system or
electric cooperative to the purchaser or 5% | 15 | | of each such purchaser's purchase
price for all electricity | 16 | | distributed, supplied, furnished, sold, transmitted,
and | 17 | | delivered by such municipal system or electric cooperative to | 18 | | the
purchaser, whichever is the lower rate as applied to each | 19 | | purchaser in each
billing period.
| 20 | | (c) The tax imposed by this Section 2-4 is not imposed : (i) | 21 | | with
respect to any use of electricity by business enterprises
| 22 | | certified under Section 9-222.1 or 9-222.1A of the Public | 23 | | Utilities Act,
as amended, to the extent of such exemption and | 24 | | during the
time specified by the Department of Commerce and | 25 | | Economic Opportunity; (ii) with respect to any use by any | 26 | | business enterprise that is properly assigned or included |
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| 1 | | within one of the following Standard Industrial | 2 | | Classifications, as designated in the Standard Industrial | 3 | | Classification Manual prepared by the federal Office of | 4 | | Management and Budget: 10; 12; 13; 14; 20; 21; 22; 23; 24; 25; | 5 | | 26; 27; 28; 29; 30; 31; 32; 33; 34; 35; 36; 37; 38; or 39, in | 6 | | the process of manufacturing or assembling tangible personal | 7 | | property for wholesale or for retail sale or lease; or (iii) | 8 | | with respect to any transaction in interstate
commerce, or | 9 | | otherwise, to the extent to which such
transaction may not, | 10 | | under the Constitution and statutes of
the United States, be | 11 | | made the subject of taxation by this
State.
| 12 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.
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