Public Act 90-0016 of the 90th General Assembly
Public Act 90-0016
HB0709 Enrolled LRB9002645KDks
AN ACT in relation to taxes, amending named Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Gas Revenue Tax Act is amended by
changing Sections 1 and 3 as follows:
(35 ILCS 615/1) (from Ch. 120, par. 467.16)
Sec. 1. For the purposes of this Act: "Gross receipts"
means the consideration received for gas distributed,
supplied, furnished or sold to persons for use or consumption
and not for resale, and for all services (including the
transportation or storage of gas for an end-user) rendered in
connection therewith, and shall include cash, services and
property of every kind or nature, and shall be determined
without any deduction on account of the cost of the service,
product or commodity supplied, the cost of materials used,
labor or service costs, or any other expense whatsoever.
However, "gross receipts" shall not include receipts from:
(i) any minimum or other charge for gas or gas
service where the customer has taken no therms of gas;
(ii) any charge for a dishonored check;
(iii) any finance or credit charge, penalty or
charge for delayed payment, or discount for prompt
payment;
(iv) any charge for reconnection of service or for
replacement or relocation of facilities;
(v) any advance or contribution in aid of
construction;
(vi) repair, inspection or servicing of equipment
located on customer premises;
(vii) leasing or rental of equipment, the leasing
or rental of which is not necessary to distributing,
furnishing, supplying, selling, transporting or storing
gas;
(viii) any sale to a customer if the taxpayer is
prohibited by federal or State constitution, treaty,
convention, statute or court decision from recovering the
related tax liability from such customer;
(ix) any charges added to customers' bills pursuant
to the provisions of Section 9-221 or Section 9-222 of
the Public Utilities Act, as amended, or any charges
added to customers' bills by taxpayers who are not
subject to rate regulation by the Illinois Commerce
Commission for the purpose of recovering any of the tax
liabilities or other amounts specified in such provisions
of such Act; and
(x) any charge for gas or gas services to a
customer who acquired contractual rights for the direct
purchase of gas or gas services originating from an
out-of-state supplier or source on or before March 1,
1995, except for those charges solely related to the
local distribution of gas by a public utility. This
exemption includes any charge for gas or gas service,
except for those charges solely related to the local
distribution of gas by a public utility, to a customer
who maintained an account with a public utility (as
defined in Section 3-105 of the Public Utilities Act) for
the transportation of customer-owned gas on or before
March 1, 1995. The provisions of this amendatory Act of
1997 are intended to clarify, rather than change,
existing law as to the meaning and scope of this
exemption.
In case credit is extended, the amount thereof shall be
included only as and when payments are received.
"Gross receipts" shall not include consideration received
from business enterprises certified under Section 9-222.1 of
the Public Utilities Act, as amended, to the extent of such
exemption and during the period of time specified by the
Department of Commerce and Community Affairs.
"Department" means the Department of Revenue of the State
of Illinois.
"Director" means the Director of Revenue for the
Department of Revenue of the State of Illinois.
"Taxpayer" means a person engaged in the business of
distributing, supplying, furnishing or selling gas for use or
consumption and not for resale.
"Person" means any natural individual, firm, trust,
estate, partnership, association, joint stock company, joint
adventure, corporation, limited liability company, or a
receiver, trustee, guardian or other representative appointed
by order of any court, or any city, town, county or other
political subdivision of this State.
"Invested capital" means that amount equal to (i) the
average of the balances at the beginning and end of each
taxable period of the taxpayer's total stockholder's equity
and total long-term debt, less investments in and advances to
all corporations, as set forth on the balance sheets included
in the taxpayer's annual report to the Illinois Commerce
Commission for the taxable period; (ii) multiplied by a
fraction determined under Sections 301 and 304(a) of the
"Illinois Income Tax Act" and reported on the Illinois income
tax return for the taxable period ending in or with the
taxable period in question. However, notwithstanding the
income tax return reporting requirement stated above,
beginning July 1, 1979, no taxpayer's denominators used to
compute the sales, property or payroll factors under
subsection (a) of Section 304 of the Illinois Income Tax Act
shall include payroll, property or sales of any corporate
entity other than the taxpayer for the purposes of
determining an allocation for the invested capital tax. This
amendatory Act of 1982, Public Act 82-1024, is not intended
to and does not make any change in the meaning of any
provision of this Act, it having been the intent of the
General Assembly in initially enacting the definition of
"invested capital" to provide for apportionment of the
invested capital of each company, based solely upon the
sales, property and payroll of that company.
"Taxable period" means each period which ends after the
effective date of this Act and which is covered by an annual
report filed by the taxpayer with the Illinois Commerce
Commission.
(Source: P.A. 88-480; 89-417, eff. 1-1-96.)
(35 ILCS 615/3) (from Ch. 120, par. 467.18)
Sec. 3. Except as provided in this Section, on or before
the 15th day of each month, each taxpayer shall make a return
to the Department for the preceding calendar month, stating:
1. His name;
2. The address of his principal place of business,
and the address of the principal place of business (if
that is a different address) from which he engages in the
business of distributing, supplying, furnishing or
selling gas in this State;
3. The total number of therms for which payment was
received by him from customers during the preceding
calendar month and upon the basis of which the tax is
imposed;
4. Gross receipts which were received by him from
customers during the preceding calendar month from such
business, including budget plan and other customer-owned
amounts applied during such month in payment of charges
includible in gross receipts, and upon the basis of
which the tax is imposed;
5. Amount of tax (computed upon Items 3 and 4);
6. Such other reasonable information as the
Department may require.
In making such return the taxpayer may use any reasonable
method to derive reportable "therms" and "gross receipts"
from his billing and payment records.
Any taxpayer required to make payments under this Section
may make the payments by electronic funds transfer. The
Department shall adopt rules necessary to effectuate a
program of electronic funds transfer.
If the taxpayer's average monthly tax liability to the
Department does not exceed $100.00, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given
year being due by April 30 of such year; with the return for
April, May and June of a given year being due by July 31 of
such year; with the return for July, August and September of
a given year being due by October 31 of such year, and with
the return for October, November and December of a given year
being due by January 31 of the following year.
If the taxpayer's average monthly tax liability to the
Department does not exceed $20.00, the Department may
authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 31 of the
following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act
concerning the time within which a taxpayer may file his
return, in the case of any taxpayer who ceases to engage in a
kind of business which makes him responsible for filing
returns under this Act, such taxpayer shall file a final
return under this Act with the Department not more than one
month after discontinuing such business.
In making such return the taxpayer shall determine the
value of any reportable consideration other than money
received by him and shall include such value in his return.
Such determination shall be subject to review and revision by
the Department in the same manner as is provided in this Act
for the correction of returns.
Each taxpayer whose average monthly liability to the
Department under this Act was $10,000 or more during the
preceding calendar year, excluding the month of highest
liability and the month of lowest liability in such calendar
year, and who is not operated by a unit of local government,
shall make estimated payments to the Department on or before
the 7th, 15th, 22nd and last day of the month during which
tax liability to the Department is incurred in an amount not
less than the lower of either 22.5% of the taxpayer's actual
tax liability for the month or 25% of the taxpayer's actual
tax liability for the same calendar month of the preceding
year. The amount of such quarter monthly payments shall be
credited against the final tax liability of the taxpayer's
return for that month. Any outstanding credit, approved by
the Department, arising from the taxpayer's overpayment of
its final tax liability for any month may be applied to
reduce the amount of any subsequent quarter monthly payment
or credited against the final tax liability of the taxpayer's
return for any subsequent month. If any quarter monthly
payment is not paid at the time or in the amount required by
this Section, the taxpayer shall be liable for penalty and
interest on the difference between the minimum amount due as
a payment and the amount of such payment actually and timely
paid, except insofar as the taxpayer has previously made
payments for that month to the Department in excess of the
minimum payments previously due.
If the Director finds that the information required for
the making of an accurate return cannot reasonably be
compiled by a taxpayer within 15 days after the close of the
calendar month for which a return is to be made, he may grant
an extension of time for the filing of such return for a
period of not to exceed 31 calendar days. The granting of
such an extension may be conditioned upon the deposit by the
taxpayer with the Department of an amount of money not
exceeding the amount estimated by the Director to be due with
the return so extended. All such deposits, including any
made before the effective date of this amendatory Act of 1975
with the Department, shall be credited against the taxpayer's
liabilities under this Act. If any such deposit exceeds the
taxpayer's present and probable future liabilities under this
Act, the Department shall issue to the taxpayer a credit
memorandum, which may be assigned by the taxpayer to a
similar taxpayer under this Act, in accordance with
reasonable rules and regulations to be prescribed by the
Department.
The taxpayer making the return provided for in this
Section shall, at the time of making such return, pay to the
Department the amount of tax imposed by this Act. All moneys
received by the Department under this Act shall be paid into
the General Revenue Fund in the State Treasury, except as
otherwise provided.
(Source: P.A. 86-953; 87-14; 87-1258.)
Section 10. The Public Utilities Revenue Act is amended
by changing Section 3 as follows:
(35 ILCS 620/3) (from Ch. 120, par. 470)
Sec. 3. Except as provided in this Section, on or before
the 15th day of each month, each taxpayer shall make a return
to the Department for the preceding calendar month, stating:
1. His name;
2. The address of his principal place of business,
and the address of the principal place of business (if
that is a different address) from which he engages in the
business of distributing, supplying, furnishing or
selling electricity in this State;
3. The total number of kilowatt-hours for which
payment was received by him from customers during the
preceding calendar month and upon the basis of which the
tax is imposed;
4. Gross receipts which were received by him from
customers during the preceding calendar month from such
business, including budget plan and other customer-owned
amounts applied during such month in payment of charges
includible in gross receipts, and upon the basis of which
the tax is imposed;
5. Amount of tax (computed upon Items 3 and 4);
6. The amount of credits to which the taxpayer is
entitled on account of purchases made pursuant to Section
8-403.1 of The Public Utilities Act;
7. Such other reasonable information as the
Department may require.
In making such return the taxpayer may use any reasonable
method to derive reportable "kilowatt-hours" and "gross
receipts" from his billing and payment records.
Any taxpayer required to make payments under this Section
may make the payments by electronic funds transfer. The
Department shall adopt rules necessary to effectuate a
program of electronic funds transfer.
If the taxpayer's average monthly tax liability to the
Department does not exceed $100.00, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given
year being due by April 30 of such year; with the return for
April, May and June of a given year being due by July 31 of
such year; with the return for July, August and September of
a given year being due by October 31 of such year, and with
the return for October, November and December of a given year
being due by January 31 of the following year.
If the taxpayer's average monthly tax liability to the
Department does not exceed $20.00, the Department may
authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 31 of the
following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act
concerning the time within which a taxpayer may file his
return, in the case of any taxpayer who ceases to engage in a
kind of business which makes him responsible for filing
returns under this Act, such taxpayer shall file a final
return under this Act with the Department not more than one
month after discontinuing such business.
In making such return the taxpayer shall determine the
value of any reportable consideration other than money
received by him and shall include such value in his return.
Such determination shall be subject to review and revision by
the Department in the same manner as is provided in this Act
for the correction of returns.
Each taxpayer whose average monthly liability to the
Department under this Act was $10,000 or more during the
preceding calendar year, excluding the month of highest
liability and the month of lowest liability in such calendar
year, and who is not operated by a unit of local government,
shall make estimated payments to the Department on or before
the 7th, 15th, 22nd and last day of the month during which
tax liability to the Department is incurred in an amount not
less than the lower of either 22.5% of the taxpayer's actual
tax liability for the month or 25% of the taxpayer's actual
tax liability for the same calendar month of the preceding
year. The amount of such quarter monthly payments shall be
credited against the final tax liability of the taxpayer's
return for that month. Any outstanding credit, approved by
the Department, arising from the taxpayer's overpayment of
its final tax liability for any month may be applied to
reduce the amount of any subsequent quarter monthly payment
or credited against the final tax liability of the taxpayer's
return for any subsequent month. If any quarter monthly
payment is not paid at the time or in the amount required by
this Section, the taxpayer shall be liable for penalty and
interest on the difference between the minimum amount due as
a payment and the amount of such payment actually and timely
paid, except insofar as the taxpayer has previously made
payments for that month to the Department in excess of the
minimum payments previously due.
If the Director finds that the information required for
the making of an accurate return cannot reasonably be
compiled by a taxpayer within 15 days after the close of the
calendar month for which a return is to be made, he may grant
an extension of time for the filing of such return for a
period of not to exceed 31 calendar days. The granting of
such an extension may be conditioned upon the deposit by the
taxpayer with the Department of an amount of money not
exceeding the amount estimated by the Director to be due with
the return so extended. All such deposits, including any
heretofore made with the Department, shall be credited
against the taxpayer's liabilities under this Act. If any
such deposit exceeds the taxpayer's present and probable
future liabilities under this Act, the Department shall issue
to the taxpayer a credit memorandum, which may be assigned by
the taxpayer to a similar taxpayer under this Act, in
accordance with reasonable rules and regulations to be
prescribed by the Department.
The taxpayer making the return provided for in this
Section shall, at the time of making such return, pay to the
Department the amount of tax imposed by this Act. All moneys
received by the Department under this Act shall be paid into
the General Revenue Fund in the State treasury, except as
otherwise provided.
(Source: P.A. 86-953; 87-14; 87-1258.)
Section 15. The Water Company Invested Capital Tax Act
is amended by changing Section 4 as follows:
(35 ILCS 625/4) (from Ch. 120, par. 1414)
Sec. 4. Annual return, collection and payment. A return
with respect to the tax imposed by this Act shall be made by
every public utility for any taxable period for which such
person is liable for such tax. Such return shall be made on
such forms as the Department shall prescribe and shall
contain the following information:
1. Taxpayer's name;
2. Address of taxpayer's principal place of
business, and address of the principal place of business
(if that is a different address) from which the taxpayer
engages in the business of distributing, supplying,
furnishing or selling water in this State;
3. The total proprietary capital and total
long-term debt as of the beginning and end of the taxable
period as set forth on the balance sheets included in the
taxpayer's annual report to the Illinois Commerce
Commission for the taxable period;
4. The taxpayer's base income allocable to Illinois
under Sections 301 and 304(a) of the "Illinois Income Tax
Act", for the period covered by the return;
5. The amount of tax due for the taxable period
(computed on the basis of the amounts set forth in Items
3 and 4); and
6. Such other reasonable information as may be
required by forms or regulations prescribed by the
Department.
The returns prescribed by this Section shall be due and
shall be filed with the Department not later than the 15th
day of the third month following the close of the taxable
period. The taxpayer making the return herein provided for
shall, at the time of making such return, pay to the
Department the remaining amount of tax herein imposed and due
for the taxable period. Each taxpayer shall make estimated
quarterly payments on the 15th day of the third, sixth, ninth
and twelfth months of each taxable period. Such estimated
payments shall be 25% of the tax liability for the
immediately preceding taxable period or the tax liability
that would have been imposed in the immediately preceding
taxable period if this Act had been in effect. All moneys
received by the Department under this Act shall be paid into
the Personal Property Tax Replacement Fund in the State
Treasury.
Any taxpayer required to make payments under this Section
may make the payments by electronic funds transfer. The
Department shall adopt rules necessary to effectuate a
program of electronic funds transfer.
(Source: P.A. 87-205.)
Section 20. The Telecommunications Excise Tax Act is
amended by changing Section 6 as follows:
(35 ILCS 630/6) (from Ch. 120, par. 2006)
Sec. 6. Except as provided hereinafter in this Section,
on or before the 15th day of each month each retailer
maintaining a place of business in this State shall make a
return to the Department for the preceding calendar month,
stating:
1. His name;
2. The address of his principal place of business, and
the address of the principal place of business (if that is a
different address) from which he engages in the business of
transmitting telecommunications;
3. Total amount of gross charges billed by him during
the preceding calendar month for providing telecommunications
during such calendar month;
4. Total amount received by him during the preceding
calendar month on credit extended;
5. Deductions allowed by law;
6. Gross charges which were billed by him during the
preceding calendar month and upon the basis of which the tax
is imposed;
7. Amount of tax (computed upon Item 6);
8. Such other reasonable information as the Department
may require.
Any taxpayer required to make payments under this Section
may make the payments by electronic funds transfer. The
Department shall adopt rules necessary to effectuate a
program of electronic funds transfer.
If the retailer's average monthly tax billings due to the
Department do not exceed $100, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February and March of a given year being
due by April 15 of such year; with the return for April, May
and June of a given year being due by July 15 of such year;
with the return for July, August and September of a given
year being due by October 15 of such year; and with the
return of October, November and December of a given year
being due by January 15 of the following year.
Notwithstanding any other provision of this Article
containing the time within which a retailer may file his
return, in the case of any retailer who ceases to engage in a
kind of business which makes him responsible for filing
returns under this Article, such retailer shall file a final
return under this Article with the Department not more than
one month after discontinuing such business.
In making such return, the retailer shall determine the
value of any consideration other than money received by him
and he shall include such value in his return. Such
determination shall be subject to review and revision by the
Department in the manner hereinafter provided for the
correction of returns.
Each retailer whose average monthly liability to the
Department under this Article was $10,000 or more during the
preceding calendar year, excluding the month of highest
liability and the month of lowest liability in such calendar
year, and who is not operated by a unit of local government,
shall make estimated payments to the Department on or before
the 7th, 15th, 22nd and last day of the month during which
tax collection liability to the Department is incurred in an
amount not less than the lower of either 22.5% of the
retailer's actual tax collections for the month or 25% of the
retailer's actual tax collections for the same calendar month
of the preceding year. The amount of such quarter monthly
payments shall be credited against the final liability of the
retailer's return for that month. Any outstanding credit,
approved by the Department, arising from the retailer's
overpayment of its final liability for any month may be
applied to reduce the amount of any subsequent quarter
monthly payment or credited against the final liability of
the retailer's return for any subsequent month. If any
quarter monthly payment is not paid at the time or in the
amount required by this Section, the retailer shall be liable
for penalty and interest on the difference between the
minimum amount due as a payment and the amount of such
payment actually and timely paid, except insofar as the
retailer has previously made payments for that month to the
Department in excess of the minimum payments previously due.
If the Director finds that the information required for
the making of an accurate return cannot reasonably be
compiled by a retailer within 15 days after the close of the
calendar month for which a return is to be made, he may grant
an extension of time for the filing of such return for a
period of not to exceed 31 calendar days. The granting of
such an extension may be conditioned upon the deposit by the
retailer with the Department of an amount of money not
exceeding the amount estimated by the Director to be due with
the return so extended. All such deposits, including any
heretofore made with the Department, shall be credited
against the retailer's liabilities under this Article. If
any such deposit exceeds the retailer's present and probable
future liabilities under this Article, the Department shall
issue to the retailer a credit memorandum, which may be
assigned by the retailer to a similar retailer under this
Article, in accordance with reasonable rules and regulations
to be prescribed by the Department.
The retailer making the return herein provided for shall,
at the time of making such return, pay to the Department the
amount of tax herein imposed. On and after the effective date
of this Article of 1985, $1,000,000 of the moneys received by
the Department of Revenue pursuant to this Article shall be
paid each month into the Common School Fund and the remainder
into the General Revenue Fund.
(Source: P.A. 84-126.)
Section 25. The Illinois Municipal Code is amended by
changing Section 8-11-2 as follows:
(65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
Sec. 8-11-2. The corporate authorities of any
municipality may tax any or all of the following occupations
or privileges:
1. Persons engaged in the business of transmitting
messages by means of electricity or radio magnetic waves,
or fiber optics, at a rate not to exceed 5% of the gross
receipts from that business originating within the
corporate limits of the municipality.
2. Persons engaged in the business of distributing,
supplying, furnishing, or selling gas for use or
consumption within the corporate limits of a municipality
of 500,000 or fewer population, and not for resale, at a
rate not to exceed 5% of the gross receipts therefrom.
2a. Persons engaged in the business of
distributing, supplying, furnishing, or selling gas for
use or consumption within the corporate limits of a
municipality of over 500,000 population, and not for
resale, at a rate not to exceed 8% of the gross receipts
therefrom. If imposed, this tax shall be paid in monthly
payments.
3. Persons engaged in the business of distributing,
supplying, furnishing, or selling electricity for use or
consumption within the corporate limits of the
municipality, and not for resale, at a rate not to exceed
5% of the gross receipts therefrom.
4. Persons engaged in the business of distributing,
supplying, furnishing, or selling water for use or
consumption within the corporate limits of the
municipality, and not for resale, at a rate not to exceed
5% of the gross receipts therefrom.
None of the taxes authorized by this Section may be
imposed with respect to any transaction in interstate
commerce or otherwise to the extent to which the business may
not, under the constitution and statutes of the United
States, be made the subject of taxation by this State or any
political sub-division thereof; nor shall any persons engaged
in the business of distributing, supplying, furnishing, or
selling gas, water, or electricity, or engaged in the
business of transmitting messages be subject to taxation
under the provisions of this Section for those transactions
that are or may become subject to taxation under the
provisions of the "Municipal Retailers' Occupation Tax Act"
authorized by Section 8-11-1; nor shall any tax authorized by
this Section be imposed upon any person engaged in a business
unless the tax is imposed in like manner and at the same rate
upon all persons engaged in businesses of the same class in
the municipality, whether privately or municipally owned or
operated.
Any of the taxes enumerated in this Section may be in
addition to the payment of money, or value of products or
services furnished to the municipality by the taxpayer as
compensation for the use of its streets, alleys, or other
public places, or installation and maintenance therein,
thereon or thereunder of poles, wires, pipes or other
equipment used in the operation of the taxpayer's business.
(a) If the corporate authorities of any home rule
municipality have adopted an ordinance that imposed a tax on
public utility customers, between July 1, 1971, and October
1, 1981, on the good faith belief that they were exercising
authority pursuant to Section 6 of Article VII of the 1970
Illinois Constitution, that action of the corporate
authorities shall be declared legal and valid,
notwithstanding a later decision of a judicial tribunal
declaring the ordinance invalid. No municipality shall be
required to rebate, refund, or issue credits for any taxes
described in this paragraph, and those taxes shall be deemed
to have been levied and collected in accordance with the
Constitution and laws of this State.
(b) In any case in which (i) prior to October 19, 1979,
the corporate authorities of any municipality have adopted an
ordinance imposing a tax authorized by this Section (or by
the predecessor provision of the "Revised Cities and Villages
Act") and have explicitly or in practice interpreted gross
receipts to include either charges added to customers' bills
pursuant to the provision of paragraph (a) of Section 36 of
the Public Utilities Act or charges added to customers' bills
by taxpayers who are not subject to rate regulation by the
Illinois Commerce Commission for the purpose of recovering
any of the tax liabilities or other amounts specified in such
paragraph (a) of Section 36 of that Act, and (ii) on or after
October 19, 1979, a judicial tribunal has construed gross
receipts to exclude all or part of those charges, then
neither those municipality nor any taxpayer who paid the tax
shall be required to rebate, refund, or issue credits for any
tax imposed or charge collected from customers pursuant to
the municipality's interpretation prior to October 19, 1979.
This paragraph reflects a legislative finding that it would
be contrary to the public interest to require a municipality
or its taxpayers to refund taxes or charges attributable to
the municipality's more inclusive interpretation of gross
receipts prior to October 19, 1979, and is not intended to
prescribe or limit judicial construction of this Section. The
legislative finding set forth in this subsection does not
apply to taxes imposed after the effective date of this
amendatory Act of 1995.
(c) (Blank).
(d) For the purpose of the taxes enumerated in this
Section:
"Gross receipts" means the consideration received for the
transmission of messages, the consideration received for
distributing, supplying, furnishing or selling gas for use or
consumption and not for resale, and the consideration
received for distributing, supplying, furnishing or selling
electricity for use or consumption and not for resale, and
the consideration received for distributing, supplying,
furnishing or selling water for use or consumption and not
for resale, and for all services rendered in connection
therewith valued in money, whether received in money or
otherwise, including cash, credit, services and property of
every kind and material and for all services rendered
therewith, and shall be determined without any deduction on
account of the cost of transmitting such messages, without
any deduction on account of the cost of the service, product
or commodity supplied, the cost of materials used, labor or
service cost, or any other expenses whatsoever. "Gross
receipts" shall not include that portion of the consideration
received for distributing, supplying, furnishing, or selling
gas, electricity, or water to, or for the transmission of
messages for, business enterprises described in paragraph (e)
of this Section to the extent and during the period in which
the exemption authorized by paragraph (e) is in effect or for
school districts or units of local government described in
paragraph (f) during the period in which the exemption
authorized in paragraph (f) is in effect.
For utility bills issued on or after May 1, 1996, but
before May 1, 1997, and for receipts from those utility
bills, "gross receipts" does not include one-third of (i)
amounts added to customers' bills under Section 9-222 of the
Public Utilities Act, or (ii) amounts added to customers'
bills by taxpayers who are not subject to rate regulation by
the Illinois Commerce Commission for the purpose of
recovering any of the tax liabilities described in Section
9-222 of the Public Utilities Act. For utility bills issued
on or after May 1, 1997, but before May 1, 1998, and for
receipts from those utility bills, "gross receipts" does not
include two-thirds of (i) amounts added to customers' bills
under Section 9-222 of the Public Utilities Act, or (ii)
amount added to customers' bills by taxpayers who are not
subject to rate regulation by the Illinois Commerce
Commission for the purpose of recovering any of the tax
liabilities described in Section 9-222 of the Public
Utilities Act. For utility bills issued on or after May 1,
1998, and for receipts from those utility bills, "gross
receipts" does not include (i) amounts added to customers'
bills under Section 9-222 of the Public Utilities Act, or
(ii) amounts added to customers' bills by taxpayers who are
not subject to rate regulation by the Illinois Commerce
Commission for the purpose of recovering any of the tax
liabilities described in Section 9-222 of the Public
Utilities Act.
For purposes of this Section "gross receipts" shall not
include (i) amounts added to customers' bills under Section
9-221 of the Public Utilities Act, or (ii) charges added to
customers' bills to recover the surcharge imposed under the
Emergency Telephone System Act. This paragraph is not
intended to nor does it make any change in the meaning of
"gross receipts" for the purposes of this Section, but is
intended to remove possible ambiguities, thereby confirming
the existing meaning of "gross receipts" prior to the
effective date of this amendatory Act of 1995.
The words "transmitting messages", in addition to the
usual and popular meaning of person to person communication,
shall include the furnishing, for a consideration, of
services or facilities (whether owned or leased), or both, to
persons in connection with the transmission of messages where
those persons do not, in turn, receive any consideration in
connection therewith, but shall not include such furnishing
of services or facilities to persons for the transmission of
messages to the extent that any such services or facilities
for the transmission of messages are furnished for a
consideration, by those persons to other persons, for the
transmission of messages.
"Person" as used in this Section means any natural
individual, firm, trust, estate, partnership, association,
joint stock company, joint adventure, corporation, municipal
corporation or political subdivision of this State, or a
receiver, trustee, guardian or other representative appointed
by order of any court.
"Public utility" shall have the meaning ascribed to it in
Section 3-105 of the Public Utilities Act and shall include
telecommunications carriers as defined in Section 13-202 of
that Act.
In the case of persons engaged in the business of
transmitting messages through the use of mobile equipment,
such as cellular phones and paging systems, the gross
receipts from the business shall be deemed to originate
within the corporate limits of a municipality only if the
address to which the bills for the service are sent is within
those corporate limits. If, however, that address is not
located within a municipality that imposes a tax under this
Section, then (i) if the party responsible for the bill is
not an individual, the gross receipts from the business shall
be deemed to originate within the corporate limits of the
municipality where that party's principal place of business
in Illinois is located, and (ii) if the party responsible for
the bill is an individual, the gross receipts from the
business shall be deemed to originate within the corporate
limits of the municipality where that party's principal
residence in Illinois is located.
(e) Any municipality that imposes taxes upon public
utilities pursuant to this Section whose territory includes
any part of an enterprise zone or federally designated
Foreign Trade Zone or Sub-Zone may, by a majority vote of its
corporate authorities, exempt from those taxes for a period
not exceeding 20 years any specified percentage of gross
receipts of public utilities received from business
enterprises that:
(1) either (i) make investments that cause the
creation of a minimum of 200 full-time equivalent jobs in
Illinois, (ii) make investments of at least $175,000,000
that cause the creation of a minimum of 150 full-time
equivalent jobs in Illinois, or (iii) or (ii) make
investments that cause the retention of a minimum of
1,000 full-time jobs in Illinois; and
(2) are either (i) located in an Enterprise Zone
established pursuant to the Illinois Enterprise Zone Act
or (ii) Department of Commerce and Community Affairs
designated High Impact Businesses located in a federally
designated Foreign Trade Zone or Sub-Zone; and
(3) are certified by the Department of Commerce and
Community Affairs as complying with the requirements
specified in clauses (1) and (2) of this paragraph (e).
Upon adoption of the ordinance authorizing the exemption,
the municipal clerk shall transmit a copy of that ordinance
to the Department of Commerce and Community Affairs. The
Department of Commerce and Community Affairs shall determine
whether the business enterprises located in the municipality
meet the criteria prescribed in this paragraph. If the
Department of Commerce and Community Affairs determines that
the business enterprises meet the criteria, it shall grant
certification. The Department of Commerce and Community
Affairs shall act upon certification requests within 30 days
after receipt of the ordinance.
Upon certification of the business enterprise by the
Department of Commerce and Community Affairs, the Department
of Commerce and Community Affairs shall notify the Department
of Revenue of the certification. The Department of Revenue
shall notify the public utilities of the exemption status of
the gross receipts received from the certified business
enterprises. Such exemption status shall be effective within
3 months after certification.
(f) A municipality that imposes taxes upon public
utilities under this Section and whose territory includes
part of another unit of local government or a school district
may by ordinance exempt the other unit of local government or
school district from those taxes.
(g) The amendment of this Section by Public Act 84-127
shall take precedence over any other amendment of this
Section by any other amendatory Act passed by the 84th
General Assembly before the effective date of Public Act
84-127.
(h) In any case in which, before July 1, 1992, a person
engaged in the business of transmitting messages through the
use of mobile equipment, such as cellular phones and paging
systems, has determined the municipality within which the
gross receipts from the business originated by reference to
the location of its transmitting or switching equipment, then
(i) neither the municipality to which tax was paid on that
basis nor the taxpayer that paid tax on that basis shall be
required to rebate, refund, or issue credits for any such tax
or charge collected from customers to reimburse the taxpayer
for the tax and (ii) no municipality to which tax would have
been paid with respect to those gross receipts if the
provisions of this amendatory Act of 1991 had been in effect
before July 1, 1992, shall have any claim against the
taxpayer for any amount of the tax.
(Source: P.A. 88-132; 89-325, eff. 1-1-96.)
Section 30. The Public Utilities Act is amended by
changing Section 9-222.1 as follows:
(220 ILCS 5/9-222.1) (from Ch. 111 2/3, par. 9-222.1)
Sec. 9-222.1. A business enterprise which is located
within an area designated by a county or municipality as an
enterprise zone pursuant to the Illinois Enterprise Zone Act
or located in a federally designated Foreign Trade Zone or
Sub-Zone shall be exempt from the additional charges added to
the business enterprise's utility bills as a pass-on of
municipal and State utility taxes under Sections 9-221 and
9-222 of this Act, to the extent such charges are exempted by
ordinance adopted in accordance with paragraph (e) of Section
8-11-2 of the Illinois Municipal Code in the case of
municipal utility taxes, and to the extent such charges are
exempted by the percentage specified by the Department of
Commerce and Community Affairs in the case of State utility
taxes, provided such business enterprise meets the following
criteria:
(1) it either (i) makes investments which cause the
creation of a minimum of 200 full-time equivalent jobs in
Illinois; (ii) makes investments of at least $175,000,000
which cause the creation of a minimum of 150 full-time
equivalent jobs in Illinois; or (iii) or (ii) makes
investments which cause the retention of a minimum of
1,000 full-time jobs in Illinois; and
(2) it is either (i) located in an Enterprise Zone
established pursuant to the Illinois Enterprise Zone Act
or (ii) it is located in a federally designated Foreign
Trade Zone or Sub-Zone and is designated a High Impact
Business by the Department of Commerce and Community
Affairs; and
(3) it is certified by the Department of Commerce
and Community Affairs as complying with the requirements
specified in clauses (1) and (2) of this Section.
The Department of Commerce and Community Affairs shall
determine the period during which such exemption from the
charges imposed under Section 9-222 is in effect which shall
not exceed 20 years and shall specify the percentage of the
exemption from State utility taxes.
The Department of Commerce and Community Affairs shall
have the power to promulgate rules and regulations to carry
out the provisions of this Section including procedures for
complying with the requirements specified in clauses (1) and
(2) of this Section and procedures for applying for the
exemptions authorized under this Section; to define the
amounts and types of eligible investments which business
enterprises must make in order to receive State utility tax
exemptions pursuant to Sections 9-222 and 9-222.1 of this
Act; to approve such utility tax exemptions for business
enterprises whose investments are not yet placed in service;
and to require that business enterprises granted tax
exemptions repay the exempted tax should the business
enterprise fail to comply with the terms and conditions of
the certification. However, no business enterprise shall be
required, as a condition for certification under clause (3)
of this Section, to attest that its decision to invest under
clause (1) of this Section and to locate under clause (2) of
this Section is predicated upon the availability of the
exemptions authorized by this Section.
A business enterprise shall be exempt, in whole or in
part, from the pass-on charges of municipal utility taxes
imposed under Section 9-221, only if it meets the criteria
specified in clauses (1) through (3) of this Section and the
municipality has adopted an ordinance authorizing the
exemption under paragraph (e) of Section 8-11-2 of the
Illinois Municipal Code. Upon certification of the business
enterprises by the Department of Commerce and Community
Affairs, the Department of Commerce and Community Affairs
shall notify the Department of Revenue of such certification.
The Department of Revenue shall notify the public utilities
of the exemption status of business enterprises from the
pass-on charges of State and municipal utility taxes. Such
exemption status shall be effective within 3 months after
certification of the business enterprise.
(Source: P.A. 87-535; 87-848; 87-895; 87-1219.)
Section 99. Effective date. This Act takes effect upon
becoming law.