Full Text of HB0826 101st General Assembly
HB0826 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB0826 Introduced , by Rep. Kelly M. Burke SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Municipal Code. Creates the Municipal Gas Use Tax Law. Provides that beginning January 1, 2020, a municipality may impose a self-assessing purchaser tax rate of the lower of 2.4 cents per therm or 5% of the purchase price for the privilege of using in the municipality gas obtained in a purchase of out-of-state gas. Provides that, in the alternative, a purchaser may elect for a tax of 2.4 cents per therm that a delivering supplier maintaining a place of business in the State collects from the purchaser. Provides for registration requirements for self-assessing purchasers and delivering suppliers. Includes procedures for self-assessing purchasers and delivering suppliers to submit returns and to remit the tax to the Department of Revenue. Effective January 1, 2020.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Municipal Code is amended by adding | 5 | | Section 8-11-2.7 as follows: | 6 | | (65 ILCS 5/8-11-2.7 new) | 7 | | Sec. 8-11-2.7. Municipal Gas Use Tax. | 8 | | (a) This Section may be cited as the Municipal Gas Use Tax | 9 | | Law. | 10 | | (b) As used in this Section: | 11 | | "Delivering supplier" means a person engaged in the | 12 | | business of delivering gas to another person for use or | 13 | | consumption and not for resale, and who, in any case where more | 14 | | than one person participates in the delivery of gas to a | 15 | | specific purchaser, is the last of the suppliers engaged in | 16 | | delivering the gas prior to its receipt by the purchaser. | 17 | | "Delivering supplier maintaining a place of business in | 18 | | this State" means any delivering supplier having or maintaining | 19 | | within this State, directly or by a subsidiary, an office, | 20 | | distribution facility, sales office, or other place of | 21 | | business, or any employee, agent, or other representative | 22 | | operating within this State under the authority of the | 23 | | delivering supplier or the delivering supplier's subsidiary, |
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| 1 | | irrespective of whether the place of business or agent or other | 2 | | representative is located in this State permanently or | 3 | | temporarily, or whether the delivering supplier or the | 4 | | delivering supplier's subsidiary is licensed to do business in | 5 | | this State. | 6 | | "Department" means the Department of Revenue. | 7 | | "Gas" means any gaseous fuel distributed through a pipeline | 8 | | system. | 9 | | "Person" means any natural individual, firm, trust, | 10 | | estate, partnership, association, joint stock company, joint | 11 | | adventure, corporation, or limited liability company, any | 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. | 15 | | "Purchase of out-of-State gas" means a transaction for the | 16 | | purchase of gas from any supplier in a manner that does not | 17 | | subject the seller of that gas to liability under the Gas | 18 | | Revenue Tax Act. | 19 | | "Purchase price" means the consideration paid for the | 20 | | distribution, supply, furnishing, sale, transportation, or | 21 | | delivery of gas to a person for use or consumption and not for | 22 | | resale, and for all services directly related to the | 23 | | production, transportation, or distribution of gas | 24 | | distributed, supplied, furnished, sold, transmitted, or | 25 | | delivered for use or consumption, including cash, services, and | 26 | | property of every kind and nature. "Purchase price" does not |
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| 1 | | include consideration paid for: | 2 | | (1) a charge for a dishonored check; | 3 | | (2) a finance or credit charge, penalty, charge for | 4 | | delayed payment, or discount for prompt payment; | 5 | | (3) a charge for reconnection of service or for
| 6 | | replacement or relocation of facilities; | 7 | | (4) an advance or contribution in aid of
construction. | 8 | | (5) repair, inspection, or servicing of equipment
| 9 | | located on customer premises; | 10 | | (6) leasing or rental of equipment, the leasing or
| 11 | | rental of which is not necessary to furnishing, supplying, | 12 | | or selling gas; | 13 | | (7) a purchase by a purchaser if the supplier is
| 14 | | prohibited by a federal or State constitution, treaty, | 15 | | convention, statute, or court decision from recovering the | 16 | | related tax liability from such purchaser; or | 17 | | (8) an amount added to a purchaser's bill because
of | 18 | | changes made pursuant to the tax imposed by the | 19 | | municipality. | 20 | | (c) The privilege of using or consuming gas acquired in a | 21 | | purchase at retail and used or consumed within the corporate | 22 | | limits of a municipality may be taxed at rates not to exceed | 23 | | the maximum rates, calculated on a monthly basis for each | 24 | | purchaser, as provided in this Section. | 25 | | (d) Beginning January 1, 2020, a municipality may impose | 26 | | upon the privilege of using in the municipality gas obtained in |
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| 1 | | a purchase of out-of-state gas at the rate of 2.4 cents per | 2 | | therm or 5% of the purchase price for the billing period, | 3 | | whichever is the lower rate. This tax rate is the | 4 | | self-assessing purchaser tax rate. Beginning with bills issued | 5 | | by delivering suppliers on and after January 1, 2020 to | 6 | | purchasers within a municipality imposing a tax pursuant to | 7 | | this Section, purchasers may elect an alternative tax rate of | 8 | | 2.4 cents per therm to be paid under the provisions of | 9 | | subsection (e) to a delivering supplier maintaining a place of | 10 | | business in this State. This tax rate is the alternate tax | 11 | | rate. | 12 | | (e) Beginning with bills issued on and after January 1, | 13 | | 2020, a delivering supplier maintaining a place of business in | 14 | | this State shall collect from the purchasers within a | 15 | | municipality imposing a tax pursuant to this Section who have | 16 | | elected the alternate tax rate provided in subsection (d) the | 17 | | tax that is imposed by the municipality at the alternate 2.4 | 18 | | cents per therm rate. The tax imposed at the alternate tax rate | 19 | | shall, when collected, be stated as a distinct and separate | 20 | | item apart from the selling price of the gas. The tax collected | 21 | | by a delivering supplier shall constitute a debt owed by that | 22 | | person to the municipality imposing the tax. Upon receipt by a | 23 | | delivering supplier of a copy of a certificate of registration | 24 | | issued to a self-assessing purchaser under subsection (f), the | 25 | | delivering supplier is relieved of the duty to collect the | 26 | | alternate tax from that self-assessing purchaser beginning |
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| 1 | | with bills issued to that self-assessing purchaser 30 or more | 2 | | days after receipt of the copy of that certificate of | 3 | | registration. | 4 | | (f) Any purchaser who does not elect the alternate tax rate | 5 | | to be paid to a delivering supplier shall register with the | 6 | | Department as a self-assessing purchaser and pay the tax | 7 | | imposed by subsection (d) directly to the Department at the | 8 | | self-assessing purchaser rate. | 9 | | Application for a certificate of registration as a | 10 | | self-assessing purchaser shall be made to the Department on | 11 | | forms furnished by the Department and shall contain any | 12 | | reasonable information that the Department requires. The | 13 | | self-assessing purchaser shall disclose the name of the | 14 | | delivering supplier or suppliers who are delivering the gas | 15 | | upon which the self-assessing purchaser will be paying tax to | 16 | | the Department. | 17 | | Upon receipt of an application for a certificate of | 18 | | registration in proper form, the Department shall issue to the | 19 | | applicant a certificate of registration as a self-assessing | 20 | | purchaser. The applicant shall provide a copy of the | 21 | | certificate of registration as a self-assessing purchaser to | 22 | | the applicant's delivering supplier or suppliers. A purchaser | 23 | | registering as a self-assessing purchaser may not revoke the | 24 | | registration for at least one year after registration. | 25 | | (g) Except for purchasers who have chosen the alternate tax | 26 | | rate to be paid to a delivering supplier maintaining a place of |
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| 1 | | business in this State, the tax imposed by the municipality | 2 | | pursuant to subsection (d) shall be paid to the Department | 3 | | directly by each self-assessing purchaser that is subject to | 4 | | the tax imposed by the municipality. Each self-assessing | 5 | | purchaser shall, on or before the 15th day of each month, make | 6 | | a return to the Department for the preceding calendar month, | 7 | | stating the following: | 8 | | (1) the self-assessing purchaser's name and principal | 9 | | address; | 10 | | (2) the total number of therms used by the | 11 | | self-assessing purchaser during the preceding calendar | 12 | | month and upon the basis of which the tax is imposed. | 13 | | (3) the purchase price of gas used by the | 14 | | self-assessing purchaser
during the preceding calendar | 15 | | month and upon the basis of which the tax is imposed; | 16 | | (4) amount of tax (computed upon items (2) and (3)); | 17 | | and | 18 | | (5) any other reasonable information the
Department | 19 | | may require. | 20 | | (h) A delivering supplier maintaining a place of business | 21 | | in this State who engages in the delivery of gas in this State | 22 | | shall register with the Department. A delivering supplier, if | 23 | | required to otherwise register pursuant to a tax imposed under | 24 | | Section 8-11-2 of this Code, need not obtain an additional | 25 | | certificate of registration under this Section, but shall be | 26 | | deemed to be sufficiently registered by virtue of that |
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| 1 | | registration with the Department. | 2 | | Application for a certificate of registration shall be made | 3 | | to the Department on forms furnished by the Department and | 4 | | shall contain any reasonable information the Department may | 5 | | require. Upon receipt of a completed application for a | 6 | | certificate of registration, the Department shall issue to the | 7 | | applicant a certificate of registration. The Department may | 8 | | deny a certificate of registration to any applicant if the | 9 | | applicant is in default for moneys due under this Section. A | 10 | | person aggrieved by a decision of the Department under this | 11 | | subsection may, within 20 days after notice of the decision, | 12 | | protest and request a hearing, whereupon the Department shall | 13 | | give notice to the person of the time and place fixed for the | 14 | | hearing, shall hold a hearing in conformity with the provisions | 15 | | of this Section, and then issue its final administrative | 16 | | decision in the matter to the person. In the absence of a | 17 | | protest within 20 days, the Department's decision shall become | 18 | | final without any further determination being made or notice | 19 | | given. | 20 | | (i) A delivering supplier who is required under subsection | 21 | | (e) to collect the tax imposed by the municipality shall make a | 22 | | return to the Department on or before the 15th day of each | 23 | | month for the preceding calendar month stating the following: | 24 | | (1) the delivering supplier's name; | 25 | | (2) the address of the delivering supplier's principal | 26 | | place of
business and the address of the principal place of |
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| 1 | | business (if that is a different address) from which the | 2 | | delivering supplier engages in the business of delivering | 3 | | gas to persons for use or consumption and not for resale; | 4 | | (3) the total number of therms of gas delivered to
| 5 | | purchasers within a municipality imposing a tax pursuant to | 6 | | this Section during the preceding calendar month and upon | 7 | | the basis of which the tax is imposed; | 8 | | (4) the amount of tax computed upon item (3); and | 9 | | (5) any other reasonable information as the Department | 10 | | may require. | 11 | | In making the return, the delivering supplier engaged in | 12 | | the business of delivering gas to persons for use or | 13 | | consumption and not for resale may use any reasonable method to | 14 | | derive reportable therms from the delivering supplier's | 15 | | billing and payment records. | 16 | | Notwithstanding any other provision in this Section | 17 | | concerning the time within which a delivering supplier may file | 18 | | its return, in the case of a delivering supplier who ceases to | 19 | | engage in a kind of business that makes it responsible for | 20 | | filing returns with a municipality imposing a tax under this | 21 | | Section, the delivering supplier shall file a final return | 22 | | under this Section with the Department of the affected | 23 | | municipality not more than one month after discontinuing a kind | 24 | | of business that makes it responsible for filing returns with a | 25 | | municipality. | 26 | | The delivering supplier making the return provided for in |
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| 1 | | this Section shall, at the time of making the return, pay to | 2 | | the Department the amount of tax imposed by the municipality.
| 3 | | Section 99. Effective date. This Act takes effect January | 4 | | 1, 2020.
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