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1     AN ACT concerning revenue.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Gas Use Tax Law is amended by changing
5 Section 5-10 as follows:
 
6     (35 ILCS 173/5-10)
7     Sec. 5-10. Imposition of tax. Beginning October 1, 2003, a
8 tax is imposed upon the privilege of using in this State gas
9 obtained in a purchase of out-of-state gas at the rate of 2.4
10 cents per therm or 5% of the purchase price for the billing
11 period, whichever is the lower rate. Such tax rate shall be
12 referred to as the "self-assessing purchaser tax rate".
13 Beginning with bills issued by delivering suppliers on and
14 after October 1, 2003, purchasers may elect an alternative tax
15 rate of 2.4 cents per therm to be paid under the provisions of
16 Section 5-15 of this Law to a delivering supplier maintaining a
17 place of business in this State. Such tax rate shall be
18 referred to as the "alternate tax rate".
19     The tax imposed under this Section shall not apply to gas
20 used by business enterprises certified under Section 9-222.1 of
21 the Public Utilities Act, as amended, to the extent of such
22 exemption and during the period of time specified by the
23 Department of Commerce and Economic Opportunity.

 

 

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1     The tax imposed under this Section does not apply to gas
2 used by any business enterprise that is properly assigned or
3 included within one of the following Standard Industrial
4 Classifications, as designated in the Standard Industrial
5 Classification Manual prepared by the federal Office of
6 Management and Budget: 10; 12; 13; 14; 21; 22; 23; 24; 25; 26;
7 27; 28; 29; 30; 31; 32; 33; 34; 35; 36; 37; 38; or 39.
8 (Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.)
 
9     Section 10. The Gas Revenue Tax Act is amended by changing
10 Section 1 as follows:
 
11     (35 ILCS 615/1)  (from Ch. 120, par. 467.16)
12     Sec. 1. For the purposes of this Act: "Gross receipts"
13 means the consideration received for gas distributed,
14 supplied, furnished or sold to persons for use or consumption
15 and not for resale, and for all services (including the
16 transportation or storage of gas for an end-user) rendered in
17 connection therewith, and shall include cash, services and
18 property of every kind or nature, and shall be determined
19 without any deduction on account of the cost of the service,
20 product or commodity supplied, the cost of materials used,
21 labor or service costs, or any other expense whatsoever.
22 However, "gross receipts" shall not include receipts from:
23         (i) any minimum or other charge for gas or gas service
24     where the customer has taken no therms of gas;

 

 

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1         (ii) any charge for a dishonored check;
2         (iii) any finance or credit charge, penalty or charge
3     for delayed payment, or discount for prompt payment;
4         (iv) any charge for reconnection of service or for
5     replacement or relocation of facilities;
6         (v) any advance or contribution in aid of construction;
7         (vi) repair, inspection or servicing of equipment
8     located on customer premises;
9         (vii) leasing or rental of equipment, the leasing or
10     rental of which is not necessary to distributing,
11     furnishing, supplying, selling, transporting or storing
12     gas;
13         (viii) any sale to a customer if the taxpayer is
14     prohibited by federal or State constitution, treaty,
15     convention, statute or court decision from recovering the
16     related tax liability from such customer;
17         (ix) any charges added to customers' bills pursuant to
18     the provisions of Section 9-221 or Section 9-222 of the
19     Public Utilities Act, as amended, or any charges added to
20     customers' bills by taxpayers who are not subject to rate
21     regulation by the Illinois Commerce Commission for the
22     purpose of recovering any of the tax liabilities or other
23     amounts specified in such provisions of such Act; and
24         (x) prior to October 1, 2003, any charge for gas or gas
25     services to a customer who acquired contractual rights for
26     the direct purchase of gas or gas services originating from

 

 

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1     an out-of-state supplier or source on or before March 1,
2     1995, except for those charges solely related to the local
3     distribution of gas by a public utility. This exemption
4     includes any charge for gas or gas service, except for
5     those charges solely related to the local distribution of
6     gas by a public utility, to a customer who maintained an
7     account with a public utility (as defined in Section 3-105
8     of the Public Utilities Act) for the transportation of
9     customer-owned gas on or before March 1, 1995. The
10     provisions of this amendatory Act of 1997 are intended to
11     clarify, rather than change, existing law as to the meaning
12     and scope of this exemption. This exemption (x) expires on
13     September 30, 2003.
14     In case credit is extended, the amount thereof shall be
15 included only as and when payments are received.
16     "Gross receipts" shall not include consideration received
17 from business enterprises certified under Section 9-222.1 of
18 the Public Utilities Act, as amended, to the extent of such
19 exemption and during the period of time specified by the
20 Department of Commerce and Economic Opportunity.
21     "Gross receipts" does not include consideration received
22 from any business enterprise that is properly assigned or
23 included within one of the following Standard Industrial
24 Classifications, as designated in the Standard Industrial
25 Classification Manual prepared by the federal Office of
26 Management and Budget: 10; 12; 13; 14; 21; 22; 23; 24; 25; 26;

 

 

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1 27; 28; 29; 30; 31; 32; 33; 34; 35; 36; 37; 38; or 39.
2     "Department" means the Department of Revenue of the State
3 of Illinois.
4     "Director" means the Director of Revenue for the Department
5 of Revenue of the State of Illinois.
6     "Taxpayer" means a person engaged in the business of
7 distributing, supplying, furnishing or selling gas for use or
8 consumption and not for resale.
9     "Person" means any natural individual, firm, trust,
10 estate, partnership, association, joint stock company, joint
11 adventure, corporation, limited liability company, or a
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     "Invested capital" means that amount equal to (i) the
16 average of the balances at the beginning and end of each
17 taxable period of the taxpayer's total stockholder's equity and
18 total long-term debt, less investments in and advances to all
19 corporations, as set forth on the balance sheets included in
20 the taxpayer's annual report to the Illinois Commerce
21 Commission for the taxable period; (ii) multiplied by a
22 fraction determined under Sections 301 and 304(a) of the
23 "Illinois Income Tax Act" and reported on the Illinois income
24 tax return for the taxable period ending in or with the taxable
25 period in question. However, notwithstanding the income tax
26 return reporting requirement stated above, beginning July 1,

 

 

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1 1979, no taxpayer's denominators used to compute the sales,
2 property or payroll factors under subsection (a) of Section 304
3 of the Illinois Income Tax Act shall include payroll, property
4 or sales of any corporate entity other than the taxpayer for
5 the purposes of determining an allocation for the invested
6 capital tax. This amendatory Act of 1982, Public Act 82-1024,
7 is not intended to and does not make any change in the meaning
8 of any provision of this Act, it having been the intent of the
9 General Assembly in initially enacting the definition of
10 "invested capital" to provide for apportionment of the invested
11 capital of each company, based solely upon the sales, property
12 and payroll of that company.
13     "Taxable period" means each period which ends after the
14 effective date of this Act and which is covered by an annual
15 report filed by the taxpayer with the Illinois Commerce
16 Commission.
17 (Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.)
 
18     Section 15. The Electricity Excise Tax Law is amended by
19 changing Section 2-4 as follows:
 
20     (35 ILCS 640/2-4)
21     Sec. 2-4. Tax imposed.
22     (a) Except as provided in subsection (b), a tax is imposed
23 on the privilege of using in this State electricity purchased
24 for use or consumption and not for resale, other than by

 

 

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1 municipal corporations owning and operating a local
2 transportation system for public service, at the following
3 rates per kilowatt-hour delivered to the purchaser:
4         (i) For the first 2000 kilowatt-hours used or consumed
5     in a month: 0.330 cents per kilowatt-hour;
6         (ii) For the next 48,000 kilowatt-hours used or
7     consumed in a month: 0.319 cents per kilowatt-hour;
8         (iii) For the next 50,000 kilowatt-hours used or
9     consumed in a month: 0.303 cents per kilowatt-hour;
10         (iv) For the next 400,000 kilowatt-hours used or
11     consumed in a month: 0.297 cents per kilowatt-hour;
12         (v) For the next 500,000 kilowatt-hours used or
13     consumed in a month: 0.286 cents per kilowatt-hour;
14         (vi) For the next 2,000,000 kilowatt-hours used or
15     consumed in a month: 0.270 cents per kilowatt-hour;
16         (vii) For the next 2,000,000 kilowatt-hours used or
17     consumed in a month: 0.254 cents per kilowatt-hour;
18         (viii) For the next 5,000,000 kilowatt-hours used or
19     consumed in a month: 0.233 cents per kilowatt-hour;
20         (ix) For the next 10,000,000 kilowatt-hours used or
21     consumed in a month: 0.207 cents per kilowatt-hour;
22         (x) For all electricity in excess of 20,000,000
23     kilowatt-hours used or consumed in a month: 0.202 cents per
24     kilowatt-hour.
25     Provided, that in lieu of the foregoing rates, the tax is
26 imposed on a self-assessing purchaser at the rate of 5.1% of

 

 

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1 the self-assessing purchaser's purchase price for all
2 electricity distributed, supplied, furnished, sold,
3 transmitted and delivered to the self-assessing purchaser in a
4 month.
5     (b) A tax is imposed on the privilege of using in this
6 State electricity purchased from a municipal system or electric
7 cooperative, as defined in Article XVII of the Public Utilities
8 Act, which has not made an election as permitted by either
9 Section 17-200 or Section 17-300 of such Act, at the lesser of
10 0.32 cents per kilowatt hour of all electricity distributed,
11 supplied, furnished, sold, transmitted, and delivered by such
12 municipal system or electric cooperative to the purchaser or 5%
13 of each such purchaser's purchase price for all electricity
14 distributed, supplied, furnished, sold, transmitted, and
15 delivered by such municipal system or electric cooperative to
16 the purchaser, whichever is the lower rate as applied to each
17 purchaser in each billing period.
18     (c) The tax imposed by this Section 2-4 is not imposed: (i)
19 with respect to any use of electricity by business enterprises
20 certified under Section 9-222.1 or 9-222.1A of the Public
21 Utilities Act, as amended, to the extent of such exemption and
22 during the time specified by the Department of Commerce and
23 Economic Opportunity; (ii) with respect to any use by the
24 purchaser in the process of manufacturing or assembling
25 tangible personal property for wholesale or for retail sale or
26 lease; or (iii) with respect to any transaction in interstate

 

 

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1 commerce, or otherwise, to the extent to which such transaction
2 may not, under the Constitution and statutes of the United
3 States, be made the subject of taxation by this State.
4 (Source: P.A. 94-793, eff. 5-19-06.)
 
5     Section 99. Effective date. This Act takes effect upon
6 becoming law.