Bill Text: IL SB0214 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB0214 Detail]

Download: Illinois-2019-SB0214-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB0214 Introduced 1/31/2019, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
65 ILCS 5/8-11-2.7 new
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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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Municipal Code is amended by adding
Section 8-11-2.7 as follows:
(65 ILCS 5/8-11-2.7 new)
Sec. 8-11-2.7. Municipal Gas Use Tax.
(a) This Section may be cited as the Municipal Gas Use Tax
Law.
(b) As used in this Section:
"Delivering supplier" means a person engaged in the
business of delivering gas to another person for use or
consumption and not for resale, and who, in any case where more
than one person participates in the delivery of gas to a
specific purchaser, is the last of the suppliers engaged in
delivering the gas prior to its receipt by the purchaser.
"Delivering supplier maintaining a place of business in
this State" means any delivering supplier having or maintaining
within this State, directly or by a subsidiary, an office,
distribution facility, sales office, or other place of
business, or any employee, agent, or other representative
operating within this State under the authority of the
delivering supplier or the delivering supplier's subsidiary,

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irrespective of whether the place of business or agent or other
representative is located in this State permanently or
temporarily, or whether the delivering supplier or the
delivering supplier's subsidiary is licensed to do business in
this State.
"Department" means the Department of Revenue.
"Gas" means any gaseous fuel distributed through a pipeline
system.
"Person" means any natural individual, firm, trust,
estate, partnership, association, joint stock company, joint
adventure, corporation, or limited liability company, any
receiver, trustee, guardian, or other representative appointed
by order of any court, or any city, town, county, or other
political subdivision of this State.
"Purchase of out-of-State gas" means a transaction for the
purchase of gas from any supplier in a manner that does not
subject the seller of that gas to liability under the Gas
Revenue Tax Act.
"Purchase price" means the consideration paid for the
distribution, supply, furnishing, sale, transportation, or
delivery of gas to a person for use or consumption and not for
resale, and for all services directly related to the
production, transportation, or distribution of gas
distributed, supplied, furnished, sold, transmitted, or
delivered for use or consumption, including cash, services, and
property of every kind and nature. "Purchase price" does not

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include consideration paid for:
(1) a charge for a dishonored check;
(2) a finance or credit charge, penalty, charge for
delayed payment, or discount for prompt payment;
(3) a charge for reconnection of service or for
replacement or relocation of facilities;
(4) an advance or contribution in aid of construction.
(5) repair, inspection, or servicing of equipment
located on customer premises;
(6) leasing or rental of equipment, the leasing or
rental of which is not necessary to furnishing, supplying,
or selling gas;
(7) a purchase by a purchaser if the supplier is
prohibited by a federal or State constitution, treaty,
convention, statute, or court decision from recovering the
related tax liability from such purchaser; or
(8) an amount added to a purchaser's bill because of
changes made pursuant to the tax imposed by the
municipality.
(c) The privilege of using or consuming gas acquired in a
purchase at retail and used or consumed within the corporate
limits of a municipality may be taxed at rates not to exceed
the maximum rates, calculated on a monthly basis for each
purchaser, as provided in this Section.
(d) Beginning January 1, 2020, a municipality may impose
upon the privilege of using in the municipality gas obtained in

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a purchase of out-of-state gas at the rate of 2.4 cents per
therm or 5% of the purchase price for the billing period,
whichever is the lower rate. This tax rate is the
self-assessing purchaser tax rate. Beginning with bills issued
by delivering suppliers on and after January 1, 2020 to
purchasers within a municipality imposing a tax pursuant to
this Section, purchasers may elect an alternative tax rate of
2.4 cents per therm to be paid under the provisions of
subsection (e) to a delivering supplier maintaining a place of
business in this State. This tax rate is the alternate tax
rate.
(e) Beginning with bills issued on and after January 1,
2020, a delivering supplier maintaining a place of business in
this State shall collect from the purchasers within a
municipality imposing a tax pursuant to this Section who have
elected the alternate tax rate provided in subsection (d) the
tax that is imposed by the municipality at the alternate 2.4
cents per therm rate. The tax imposed at the alternate tax rate
shall, when collected, be stated as a distinct and separate
item apart from the selling price of the gas. The tax collected
by a delivering supplier shall constitute a debt owed by that
person to the municipality imposing the tax. Upon receipt by a
delivering supplier of a copy of a certificate of registration
issued to a self-assessing purchaser under subsection (f), the
delivering supplier is relieved of the duty to collect the
alternate tax from that self-assessing purchaser beginning

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with bills issued to that self-assessing purchaser 30 or more
days after receipt of the copy of that certificate of
registration.
(f) Any purchaser who does not elect the alternate tax rate
to be paid to a delivering supplier shall register with the
Department as a self-assessing purchaser and pay the tax
imposed by subsection (d) directly to the Department at the
self-assessing purchaser rate.
Application for a certificate of registration as a
self-assessing purchaser shall be made to the Department on
forms furnished by the Department and shall contain any
reasonable information that the Department requires. The
self-assessing purchaser shall disclose the name of the
delivering supplier or suppliers who are delivering the gas
upon which the self-assessing purchaser will be paying tax to
the Department.
Upon receipt of an application for a certificate of
registration in proper form, the Department shall issue to the
applicant a certificate of registration as a self-assessing
purchaser. The applicant shall provide a copy of the
certificate of registration as a self-assessing purchaser to
the applicant's delivering supplier or suppliers. A purchaser
registering as a self-assessing purchaser may not revoke the
registration for at least one year after registration.
(g) Except for purchasers who have chosen the alternate tax
rate to be paid to a delivering supplier maintaining a place of

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business in this State, the tax imposed by the municipality
pursuant to subsection (d) shall be paid to the Department
directly by each self-assessing purchaser that is subject to
the tax imposed by the municipality. Each self-assessing
purchaser shall, on or before the 15th day of each month, make
a return to the Department for the preceding calendar month,
stating the following:
(1) the self-assessing purchaser's name and principal
address;
(2) the total number of therms used by the
self-assessing purchaser during the preceding calendar
month and upon the basis of which the tax is imposed.
(3) the purchase price of gas used by the
self-assessing purchaser during the preceding calendar
month and upon the basis of which the tax is imposed;
(4) amount of tax (computed upon items (2) and (3));
and
(5) any other reasonable information the Department
may require.
(h) A delivering supplier maintaining a place of business
in this State who engages in the delivery of gas in this State
shall register with the Department. A delivering supplier, if
required to otherwise register pursuant to a tax imposed under
Section 8-11-2 of this Code, need not obtain an additional
certificate of registration under this Section, but shall be
deemed to be sufficiently registered by virtue of that

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registration with the Department.
Application for a certificate of registration shall be made
to the Department on forms furnished by the Department and
shall contain any reasonable information the Department may
require. Upon receipt of a completed application for a
certificate of registration, the Department shall issue to the
applicant a certificate of registration. The Department may
deny a certificate of registration to any applicant if the
applicant is in default for moneys due under this Section. A
person aggrieved by a decision of the Department under this
subsection may, within 20 days after notice of the decision,
protest and request a hearing, whereupon the Department shall
give notice to the person of the time and place fixed for the
hearing, shall hold a hearing in conformity with the provisions
of this Section, and then issue its final administrative
decision in the matter to the person. In the absence of a
protest within 20 days, the Department's decision shall become
final without any further determination being made or notice
given.
(i) A delivering supplier who is required under subsection
(e) to collect the tax imposed by the municipality shall make a
return to the Department on or before the 15th day of each
month for the preceding calendar month stating the following:
(1) the delivering supplier's name;
(2) the address of the delivering supplier's principal
place of business and the address of the principal place of

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business (if that is a different address) from which the
delivering supplier engages in the business of delivering
gas to persons for use or consumption and not for resale;
(3) the total number of therms of gas delivered to
purchasers within a municipality imposing a tax pursuant to
this Section during the preceding calendar month and upon
the basis of which the tax is imposed;
(4) the amount of tax computed upon item (3); and
(5) any other reasonable information as the Department
may require.
In making the return, the delivering supplier engaged in
the business of delivering gas to persons for use or
consumption and not for resale may use any reasonable method to
derive reportable therms from the delivering supplier's
billing and payment records.
Notwithstanding any other provision in this Section
concerning the time within which a delivering supplier may file
its return, in the case of a delivering supplier who ceases to
engage in a kind of business that makes it responsible for
filing returns with a municipality imposing a tax under this
Section, the delivering supplier shall file a final return
under this Section with the Department of the affected
municipality not more than one month after discontinuing a kind
of business that makes it responsible for filing returns with a
municipality.
The delivering supplier making the return provided for in

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this Section shall, at the time of making the return, pay to
the Department the amount of tax imposed by the municipality.
Section 99. Effective date. This Act takes effect January
1, 2020.