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91_HB1551
LRB9104890PTpk
1 AN ACT to exempt school districts from certain taxes,
2 amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Gas Revenue Tax Act is amended by
6 changing Section 1 as follows:
7 (35 ILCS 615/1) (from Ch. 120, par. 467.16)
8 Sec. 1. Definitions. For the purposes of this Act:
9 "Gross receipts" means the consideration received for gas
10 distributed, supplied, furnished or sold to persons for use
11 or consumption and not for resale, and for all services
12 (including the transportation or storage of gas for an
13 end-user) rendered in connection therewith, and shall include
14 cash, services and property of every kind or nature, and
15 shall be determined without any deduction on account of the
16 cost of the service, product or commodity supplied, the cost
17 of materials used, labor or service costs, or any other
18 expense whatsoever. However, "gross receipts" shall not
19 include receipts from:
20 (i) any minimum or other charge for gas or gas
21 service where the customer has taken no therms of gas;
22 (ii) any charge for a dishonored check;
23 (iii) any finance or credit charge, penalty or
24 charge for delayed payment, or discount for prompt
25 payment;
26 (iv) any charge for reconnection of service or for
27 replacement or relocation of facilities;
28 (v) any advance or contribution in aid of
29 construction;
30 (vi) repair, inspection or servicing of equipment
31 located on customer premises;
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1 (vii) leasing or rental of equipment, the leasing
2 or rental of which is not necessary to distributing,
3 furnishing, supplying, selling, transporting or storing
4 gas;
5 (viii) any sale to a customer if the taxpayer is
6 prohibited by federal or State constitution, treaty,
7 convention, statute or court decision from recovering the
8 related tax liability from such customer;
9 (ix) any charges added to customers' bills pursuant
10 to the provisions of Section 9-221 or Section 9-222 of
11 the Public Utilities Act, as amended, or any charges
12 added to customers' bills by taxpayers who are not
13 subject to rate regulation by the Illinois Commerce
14 Commission for the purpose of recovering any of the tax
15 liabilities or other amounts specified in such provisions
16 of such Act; and
17 (x) any charge for gas or gas services to a
18 customer who acquired contractual rights for the direct
19 purchase of gas or gas services originating from an
20 out-of-state supplier or source on or before March 1,
21 1995, except for those charges solely related to the
22 local distribution of gas by a public utility. This
23 exemption includes any charge for gas or gas service,
24 except for those charges solely related to the local
25 distribution of gas by a public utility, to a customer
26 who maintained an account with a public utility (as
27 defined in Section 3-105 of the Public Utilities Act) for
28 the transportation of customer-owned gas on or before
29 March 1, 1995. The provisions of this amendatory Act of
30 1997 are intended to clarify, rather than change,
31 existing law as to the meaning and scope of this
32 exemption; and
33 (xi) a sale to a school district subject to the
34 School Code.
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1 In case credit is extended, the amount thereof shall be
2 included only as and when payments are received.
3 "Gross receipts" shall not include consideration received
4 from business enterprises certified under Section 9-222.1 of
5 the Public Utilities Act, as amended, to the extent of such
6 exemption and during the period of time specified by the
7 Department of Commerce and Community Affairs.
8 "Department" means the Department of Revenue of the State
9 of Illinois.
10 "Director" means the Director of Revenue for the
11 Department of Revenue of the State of Illinois.
12 "Taxpayer" means a person engaged in the business of
13 distributing, supplying, furnishing or selling gas for use or
14 consumption and not for resale.
15 "Person" means any natural individual, firm, trust,
16 estate, partnership, association, joint stock company, joint
17 adventure, corporation, limited liability company, or a
18 receiver, trustee, guardian or other representative appointed
19 by order of any court, or any city, town, county or other
20 political subdivision of this State.
21 "Invested capital" means that amount equal to (i) the
22 average of the balances at the beginning and end of each
23 taxable period of the taxpayer's total stockholder's equity
24 and total long-term debt, less investments in and advances to
25 all corporations, as set forth on the balance sheets included
26 in the taxpayer's annual report to the Illinois Commerce
27 Commission for the taxable period; (ii) multiplied by a
28 fraction determined under Sections 301 and 304(a) of the
29 "Illinois Income Tax Act" and reported on the Illinois income
30 tax return for the taxable period ending in or with the
31 taxable period in question. However, notwithstanding the
32 income tax return reporting requirement stated above,
33 beginning July 1, 1979, no taxpayer's denominators used to
34 compute the sales, property or payroll factors under
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1 subsection (a) of Section 304 of the Illinois Income Tax Act
2 shall include payroll, property or sales of any corporate
3 entity other than the taxpayer for the purposes of
4 determining an allocation for the invested capital tax. This
5 amendatory Act of 1982, Public Act 82-1024, is not intended
6 to and does not make any change in the meaning of any
7 provision of this Act, it having been the intent of the
8 General Assembly in initially enacting the definition of
9 "invested capital" to provide for apportionment of the
10 invested capital of each company, based solely upon the
11 sales, property and payroll of that company.
12 "Taxable period" means each period which ends after the
13 effective date of this Act and which is covered by an annual
14 report filed by the taxpayer with the Illinois Commerce
15 Commission.
16 (Source: P.A. 89-417, eff. 1-1-96; 90-16, eff. 6-16-97.)
17 Section 10. The Public Utilities Revenue Act is amended
18 by changing Section 1 as follows:
19 (35 ILCS 620/1) (from Ch. 120, par. 468)
20 Sec. 1. Definitions. For the purposes of this Law:
21 "Consumer Price Index" means the Consumer Price Index For
22 All Urban Consumers for all items published by the United
23 States Department of Labor; provided that if this index no
24 longer exists, the Department of Revenue shall prescribe the
25 use of a comparable, substitute index.
26 "Gross receipts" means the consideration received for
27 electricity distributed, supplied, furnished or sold to
28 persons for use or consumption and not for resale, and for
29 all services (including the transmission of electricity for
30 an end-user) rendered in connection therewith, and includes
31 cash, services and property of every kind or nature, and
32 shall be determined without any deduction on account of the
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1 cost of the service, product or commodity supplied, the cost
2 of materials used, labor or service costs, or any other
3 expense whatsoever. However, "gross receipts" shall not
4 include receipts from:
5 (i) any minimum or other charge for electricity or
6 electric service where the customer has taken no
7 kilowatt-hours of electricity;
8 (ii) any charge for a dishonored check;
9 (iii) any finance or credit charge, penalty or
10 charge for delayed payment, or discount for prompt
11 payment;
12 (iv) any charge for reconnection of service or for
13 replacement or relocation of facilities;
14 (v) any advance or contribution in aid of
15 construction;
16 (vi) repair, inspection or servicing of equipment
17 located on customer premises;
18 (vii) leasing or rental of equipment, the leasing
19 or rental of which is not necessary to distributing,
20 furnishing, supplying, selling or transporting
21 electricity;
22 (viii) any sale to a customer if the taxpayer is
23 prohibited by federal or State constitution, treaty,
24 convention, statute or court decision from recovering the
25 related tax liability from such customer; and
26 (ix) any charges added to customers' bills pursuant
27 to the provisions of Section 9-221 or Section 9-222 of
28 the Public Utilities Act, as amended, or any charges
29 added to customers' bills by taxpayers who are not
30 subject to rate regulation by the Illinois Commerce
31 Commission for the purpose of recovering any of the tax
32 liabilities or other amount specified in such provisions
33 of such Act. In case credit is extended, the amount
34 thereof shall be included only as and when payments are
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1 received; and
2 (x) a sale to a school district subject to the
3 School Code.
4 "Gross receipts" shall not include consideration received
5 from business enterprises certified under Section 9-222.1 of
6 the Public Utilities Act, as amended, to the extent of such
7 exemption and during the period of time specified by the
8 Department of Commerce and Community Affairs.
9 "Department" means the Department of Revenue of the State
10 of Illinois.
11 "Director" means the Director of Revenue for the
12 Department of Revenue of the State of Illinois.
13 "Distributing electricity" means delivering electric
14 energy to an end user over facilities owned, leased, or
15 controlled by the taxpayer.
16 "Taxpayer" for purposes of the tax on the distribution of
17 electricity imposed by this Act means an electric
18 cooperative, an electric utility, or an alternative retail
19 electric supplier (other than a person that is an alternative
20 retail electric supplier solely pursuant to subsection (e) of
21 Section 16-115 of the Public Utilities Act), as those terms
22 are defined in the Public Utilities Act, engaged in the
23 business of distributing electricity in this State for use or
24 consumption and not for resale.
25 "Taxpayer" for purposes of the Public Utilities Revenue
26 Tax means a person engaged in the business of distributing,
27 supplying, furnishing or selling electricity for use or
28 consumption and not for resale.
29 "Person" means any natural individual, firm, trust,
30 estate, partnership, association, joint stock company, joint
31 adventure, corporation, limited liability company, or a
32 receiver, trustee, guardian or other representative appointed
33 by order of any court, or any city, town, county or other
34 political subdivision of this State.
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1 "Invested capital" in the case of an electric cooperative
2 subject to the tax imposed by Section 2a.1 means an amount
3 equal to the product determined by multiplying, (i) the
4 average of the balances at the beginning and end of the
5 taxable period of the taxpayer's total equity (including
6 memberships, patronage capital, operating margins,
7 non-operating margins, other margins and other equities), as
8 set forth on the balance sheets included in the taxpayer's
9 annual report to the United States Department of Agriculture
10 Rural Utilities Services (established pursuant to the federal
11 Rural Electrification Act of 1936, as amended), by (ii) the
12 fraction determined under Sections 301 and 304(a) of the
13 Illinois Income Tax Act, as amended, for the taxable period.
14 "Taxable period" means each calendar year which ends
15 after the effective date of this Act. In the case of an
16 electric cooperative subject to the tax imposed by Section
17 2a.1, "taxable period" means each calendar year ending after
18 the effective date of this Act and covered by an annual
19 report filed by the taxpayer with the United States
20 Department of Agriculture Rural Utilities Services.
21 (Source: P.A. 90-561, eff. 1-1-98.)
22 Section 15. The Telecommunications Excise Tax Act is
23 amended by changing Section 2 as follows:
24 (35 ILCS 630/2) (from Ch. 120, par. 2002)
25 Sec. 2. Definitions. As used in this Article, unless
26 the context clearly requires otherwise:
27 (a) "Gross charge" means the amount paid for the act or
28 privilege of originating or receiving telecommunications in
29 this State and for all services and equipment provided in
30 connection therewith by a retailer, valued in money whether
31 paid in money or otherwise, including cash, credits, services
32 and property of every kind or nature, and shall be determined
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1 without any deduction on account of the cost of such
2 telecommunications, the cost of materials used, labor or
3 service costs or any other expense whatsoever. In case
4 credit is extended, the amount thereof shall be included only
5 as and when paid. "Gross charges" for private line service
6 shall include charges imposed at each channel point within
7 this State, charges for the channel mileage between each
8 channel point within this State, and charges for that portion
9 of the interstate inter-office channel provided within
10 Illinois. However, "gross charges" shall not include:
11 (1) any amounts added to a purchaser's bill because
12 of a charge made pursuant to (i) the tax imposed by this
13 Article; (ii) charges added to customers' bills pursuant
14 to the provisions of Sections 9-221 or 9-222 of the
15 Public Utilities Act, as amended, or any similar charges
16 added to customers' bills by retailers who are not
17 subject to rate regulation by the Illinois Commerce
18 Commission for the purpose of recovering any of the tax
19 liabilities or other amounts specified in such provisions
20 of such Act; or (iii) the tax imposed by Section 4251 of
21 the Internal Revenue Code;
22 (2) charges for a sent collect telecommunication
23 received outside of the State;
24 (3) charges for leased time on equipment or charges
25 for the storage of data or information for subsequent
26 retrieval or the processing of data or information
27 intended to change its form or content. Such equipment
28 includes, but is not limited to, the use of calculators,
29 computers, data processing equipment, tabulating
30 equipment or accounting equipment and also includes the
31 usage of computers under a time-sharing agreement;
32 (4) charges for customer equipment, including such
33 equipment that is leased or rented by the customer from
34 any source, wherein such charges are disaggregated and
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1 separately identified from other charges;
2 (5) charges to business enterprises certified under
3 Section 9-222.1 of the Public Utilities Act, as amended,
4 to the extent of such exemption and during the period of
5 time specified by the Department of Commerce and
6 Community Affairs;
7 (6) charges for telecommunications and all services
8 and equipment provided in connection therewith between a
9 parent corporation and its wholly owned subsidiaries or
10 between wholly owned subsidiaries when the tax imposed
11 under this Article has already been paid to a retailer
12 and only to the extent that the charges between the
13 parent corporation and wholly owned subsidiaries or
14 between wholly owned subsidiaries represent expense
15 allocation between the corporations and not the
16 generation of profit for the corporation rendering such
17 service;
18 (7) bad debts. Bad debt means any portion of a debt
19 that is related to a sale at retail for which gross
20 charges are not otherwise deductible or excludable that
21 has become worthless or uncollectable, as determined
22 under applicable federal income tax standards. If the
23 portion of the debt deemed to be bad is subsequently
24 paid, the retailer shall report and pay the tax on that
25 portion during the reporting period in which the payment
26 is made;
27 (8) charges paid by inserting coins in
28 coin-operated telecommunication devices;
29 (9) amounts paid by telecommunications retailers
30 under the Telecommunications Municipal Infrastructure
31 Maintenance Fee Act; and
32 (10) charges to school districts subject to the
33 School Code.
34 (b) "Amount paid" means the amount charged to the
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1 taxpayer's service address in this State regardless of where
2 such amount is billed or paid.
3 (c) "Telecommunications", in addition to the meaning
4 ordinarily and popularly ascribed to it, includes, without
5 limitation, messages or information transmitted through use
6 of local, toll and wide area telephone service; private line
7 services; channel services; telegraph services;
8 teletypewriter; computer exchange services; cellular mobile
9 telecommunications service; specialized mobile radio;
10 stationary two way radio; paging service; or any other form
11 of mobile and portable one-way or two-way communications; or
12 any other transmission of messages or information by
13 electronic or similar means, between or among points by wire,
14 cable, fiber-optics, laser, microwave, radio, satellite or
15 similar facilities. As used in this Act, "private line" means
16 a dedicated non-traffic sensitive service for a single
17 customer, that entitles the customer to exclusive or priority
18 use of a communications channel or group of channels, from
19 one or more specified locations to one or more other
20 specified locations. The definition of "telecommunications"
21 shall not include value added services in which computer
22 processing applications are used to act on the form, content,
23 code and protocol of the information for purposes other than
24 transmission. "Telecommunications" shall not include
25 purchases of telecommunications by a telecommunications
26 service provider for use as a component part of the service
27 provided by him to the ultimate retail consumer who
28 originates or terminates the taxable end-to-end
29 communications. Carrier access charges, right of access
30 charges, charges for use of inter-company facilities, and all
31 telecommunications resold in the subsequent provision of,
32 used as a component of, or integrated into end-to-end
33 telecommunications service shall be non-taxable as sales for
34 resale.
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1 (d) "Interstate telecommunications" means all
2 telecommunications that either originate or terminate outside
3 this State.
4 (e) "Intrastate telecommunications" means all
5 telecommunications that originate and terminate within this
6 State.
7 (f) "Department" means the Department of Revenue of the
8 State of Illinois.
9 (g) "Director" means the Director of Revenue for the
10 Department of Revenue of the State of Illinois.
11 (h) "Taxpayer" means a person who individually or
12 through his agents, employees or permittees engages in the
13 act or privilege of originating or receiving
14 telecommunications in this State and who incurs a tax
15 liability under this Article.
16 (i) "Person" means any natural individual, firm, trust,
17 estate, partnership, association, joint stock company, joint
18 venture, corporation, limited liability company, or a
19 receiver, trustee, guardian or other representative appointed
20 by order of any court, the Federal and State governments,
21 including State universities created by statute or any city,
22 town, county or other political subdivision of this State.
23 (j) "Purchase at retail" means the acquisition,
24 consumption or use of telecommunication through a sale at
25 retail.
26 (k) "Sale at retail" means the transmitting, supplying
27 or furnishing of telecommunications and all services and
28 equipment provided in connection therewith for a
29 consideration to persons other than the Federal and State
30 governments, and State universities created by statute and
31 other than between a parent corporation and its wholly owned
32 subsidiaries or between wholly owned subsidiaries for their
33 use or consumption and not for resale.
34 (l) "Retailer" means and includes every person engaged
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1 in the business of making sales at retail as defined in this
2 Article. The Department may, in its discretion, upon
3 application, authorize the collection of the tax hereby
4 imposed by any retailer not maintaining a place of business
5 within this State, who, to the satisfaction of the
6 Department, furnishes adequate security to insure collection
7 and payment of the tax. Such retailer shall be issued,
8 without charge, a permit to collect such tax. When so
9 authorized, it shall be the duty of such retailer to collect
10 the tax upon all of the gross charges for telecommunications
11 in this State in the same manner and subject to the same
12 requirements as a retailer maintaining a place of business
13 within this State. The permit may be revoked by the
14 Department at its discretion.
15 (m) "Retailer maintaining a place of business in this
16 State", or any like term, means and includes any retailer
17 having or maintaining within this State, directly or by a
18 subsidiary, an office, distribution facilities, transmission
19 facilities, sales office, warehouse or other place of
20 business, or any agent or other representative operating
21 within this State under the authority of the retailer or its
22 subsidiary, irrespective of whether such place of business or
23 agent or other representative is located here permanently or
24 temporarily, or whether such retailer or subsidiary is
25 licensed to do business in this State.
26 (n) "Service address" means the location of
27 telecommunications equipment from which the
28 telecommunications services are originated or at which
29 telecommunications services are received by a taxpayer. In
30 the event this may not be a defined location, as in the case
31 of mobile phones, paging systems, maritime systems,
32 air-to-ground systems and the like, service address shall
33 mean the location of a taxpayer's primary use of the
34 telecommunications equipment as defined by telephone number,
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1 authorization code, or location in Illinois where bills are
2 sent.
3 (Source: P.A. 90-562, eff. 12-16-97.)
4 Section 20. The Electricity Excise Tax Law is amended by
5 changing Section 2-3 as follows:
6 (35 ILCS 640/2-3)
7 Sec. 2-3. Definitions. As used in this Law, unless the
8 context clearly requires otherwise:
9 (a) "Department" means the Department of Revenue of the
10 State of Illinois.
11 (b) "Director" means the Director of the Department of
12 Revenue of the State of Illinois.
13 (c) "Person" means any natural individual, firm, trust,
14 estate, partnership, association, joint stock company, joint
15 venture, corporation, limited liability company, or a
16 receiver, trustee, guardian, or other representative
17 appointed by order of any court, or any city, town, village,
18 county, or other political subdivision of this State.
19 (d) "Purchase price" means the consideration paid for
20 the distribution, supply, furnishing, sale, transmission or
21 delivery of electricity to a person for non-residential use
22 or consumption (and for both residential and non-residential
23 use or consumption in the case of electricity purchased from
24 a municipal system or electric cooperative described in
25 subsection (b) of Section 2-4) and not for resale, and for
26 all services directly related to the production, transmission
27 or distribution of electricity distributed, supplied,
28 furnished, sold, transmitted or delivered for non-residential
29 use or consumption, and includes transition charges imposed
30 in accordance with Article XVI of the Public Utilities Act
31 and instrument funding charges imposed in accordance with
32 Article XVIII of the Public Utilities Act, as well as cash,
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1 services and property of every kind or nature, and shall be
2 determined without any deduction on account of the cost of
3 the service, product or commodity supplied, the cost of
4 materials used, labor or service costs, or any other expense
5 whatsoever. However, "purchase price" shall not include
6 consideration paid for:
7 (i) any charge for a dishonored check;
8 (ii) any finance or credit charge, penalty or
9 charge for delayed payment, or discount for prompt
10 payment;
11 (iii) any charge for reconnection of service or for
12 replacement or relocation of facilities;
13 (iv) any advance or contribution in aid of
14 construction;
15 (v) repair, inspection or servicing of equipment
16 located on customer premises;
17 (vi) leasing or rental of equipment, the leasing or
18 rental of which is not necessary to furnishing, supplying
19 or selling electricity;
20 (vii) any purchase by a purchaser if the supplier
21 is prohibited by federal or State constitution, treaty,
22 convention, statute or court decision from recovering the
23 related tax liability from such purchaser; and
24 (viii) any amounts added to purchasers' bills
25 because of charges made pursuant to the tax imposed by
26 this Law; and
27 (ix) any purchase by a school district subject to
28 the School Code.
29 In case credit is extended, the amount thereof shall be
30 included only as and when payments are made.
31 "Purchase price" shall not include consideration received
32 from business enterprises certified under Section 9-222.1 of
33 the Public Utilities Act, as amended, to the extent of such
34 exemption and during the period of time specified by the
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1 Department of Commerce and Community Affairs.
2 (e) "Purchaser" means any person who acquires
3 electricity for use or consumption and not for resale, for a
4 valuable consideration.
5 (f) "Non-residential electric use" means any use or
6 consumption of electricity which is not residential electric
7 use.
8 (g) "Residential electric use" means electricity used or
9 consumed at a dwelling of 2 or fewer units, or electricity
10 for household purposes used or consumed at a building with
11 multiple dwelling units where the electricity is registered
12 by a separate meter for each dwelling unit.
13 (h) "Self-assessing purchaser" means a purchaser for
14 non-residential electric use who elects to register with and
15 to pay tax directly to the Department in accordance with
16 Sections 2-10 and 2-11 of this Law.
17 (i) "Delivering supplier" means any person engaged in
18 the business of delivering electricity to persons for use or
19 consumption and not for resale and who, in any case where
20 more than one person participates in the delivery of
21 electricity to a specific purchaser, is the last of the
22 suppliers engaged in delivering the electricity prior to its
23 receipt by the purchaser.
24 (j) "Delivering supplier maintaining a place of business
25 in this State", or any like term, means any delivering
26 supplier having or maintaining within this State, directly or
27 by a subsidiary, an office, generation facility, transmission
28 facility, distribution facility, sales office or other place
29 of business, or any employee, agent or other representative
30 operating within this State under the authority of such
31 delivering supplier or such delivering supplier's subsidiary,
32 irrespective of whether such place of business or agent or
33 other representative is located in this State permanently or
34 temporarily, or whether such delivering supplier or such
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1 delivering supplier's subsidiary is licensed to do business
2 in this State.
3 (k) "Use" means the exercise by any person of any right
4 or power over electricity incident to the ownership of that
5 electricity, except that it does not include the generation,
6 production, transmission, distribution, delivery or sale of
7 electricity in the regular course of business or the use of
8 electricity for such purposes.
9 (Source: P.A. 90-561, eff. 8-1-98.)
10 Section 25. The Public Utilities Act is amended by
11 changing Section 3-121 as follows:
12 (220 ILCS 5/3-121) (from Ch. 111 2/3, par. 3-121)
13 Sec. 3-121. Gross revenue. As used in Section 2-202 of
14 this Act, the term "gross revenue" includes all revenue which
15 (1) is collected by a public utility subject to regulations
16 under this Act (a) pursuant to the rates, other charges, and
17 classifications which it is required to file under Section
18 9-102 of this Act and (b) pursuant to emergency rates as
19 permitted by Section 9-104 of this Act, and (2) is derived
20 from the intrastate public utility business of such a
21 utility. Such term does not include revenue derived by such a
22 public utility from the sale of public utility services,
23 products or commodities to another public utility or to an
24 electric cooperative for resale by such public utility or
25 electric cooperative or to school districts subject to the
26 School Code. "Gross revenue" shall not include any charges
27 added to customers' bills pursuant to the provisions of
28 Section 9-221, 9-221.1 and 9-222 of this Act or consideration
29 received from business enterprises certified under Section
30 9-222.1 of this Act to the extent of such exemption and
31 during the period in which the exemption is in effect.
32 (Source: P.A. 85-1021.)