Full Text of HB0826 101st General Assembly
HB0826ham001 101ST GENERAL ASSEMBLY | Rep. Michael J. Zalewski Filed: 3/27/2019
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| 1 | | AMENDMENT TO HOUSE BILL 826
| 2 | | AMENDMENT NO. ______. Amend House Bill 826 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Municipal Code is amended by | 5 | | adding Section 8-11-2.7 as follows: | 6 | | (65 ILCS 5/8-11-2.7 new) | 7 | | Sec. 8-11-2.7. Non-Home Rule Municipal Gas Use Tax. | 8 | | (a) This Section may be cited as the Non-Home Rule | 9 | | Municipal Gas Use Tax Law. | 10 | | (b) As used in this Section: | 11 | | "Delivering supplier" means a person engaged in the | 12 | | business of delivering gas to another person for use or | 13 | | consumption and not for resale, and who, in any case where more | 14 | | than one person participates in the delivery of gas to a | 15 | | specific purchaser, is the last of the suppliers engaged in | 16 | | delivering the gas prior to its receipt by the purchaser. |
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| 1 | | "Delivering supplier maintaining a place of business in | 2 | | this State" means any delivering supplier having or maintaining | 3 | | within this State, directly or by a subsidiary, an office, | 4 | | distribution facility, sales office, or other place of | 5 | | business, or any employee, agent, or other representative | 6 | | operating within this State under the authority of the | 7 | | delivering supplier or the delivering supplier's subsidiary, | 8 | | irrespective of whether the place of business or agent or other | 9 | | representative is located in this State permanently or | 10 | | temporarily, or whether the delivering supplier or the | 11 | | delivering supplier's subsidiary is licensed to do business in | 12 | | this State. | 13 | | "Gas" means any gaseous fuel distributed through a pipeline | 14 | | system. | 15 | | "Person" means any natural individual, firm, trust, | 16 | | estate, partnership, association, joint stock company, joint | 17 | | adventure, corporation, or limited liability company, any | 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 | | "Purchase of out-of-state gas" means a transaction for the | 22 | | purchase of gas from any supplier in a manner that does not | 23 | | subject the seller of that gas to liability for a tax imposed | 24 | | under paragraph 2 of Section 8-11-2 of the Illinois Municipal | 25 | | Code. | 26 | | "Purchase price" means the consideration paid for the |
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| 1 | | distribution, supply, furnishing, sale, transportation, or | 2 | | delivery of gas to a person for use or consumption and not for | 3 | | resale, and for all services directly related to the | 4 | | production, transportation, or distribution of gas | 5 | | distributed, supplied, furnished, sold, transmitted, or | 6 | | delivered for use or consumption, including cash, services, and | 7 | | property of every kind and nature. "Purchase price" does not | 8 | | include consideration paid for: | 9 | | (1) a charge for a dishonored check; | 10 | | (2) a finance or credit charge, penalty, charge for | 11 | | delayed payment, or discount for prompt payment; | 12 | | (3) a charge for reconnection of service or for
| 13 | | replacement or relocation of facilities; | 14 | | (4) an advance or contribution in aid of
construction; | 15 | | (5) repair, inspection, or servicing of equipment
| 16 | | located on customer premises; | 17 | | (6) leasing or rental of equipment, the leasing or
| 18 | | rental of which is not necessary to furnishing, supplying, | 19 | | or selling gas; | 20 | | (7) a purchase by a purchaser if the supplier is
| 21 | | prohibited by a federal or State constitution, treaty, | 22 | | convention, statute, or court decision from recovering the | 23 | | related tax liability from such purchaser; or | 24 | | (8) an amount added to a purchaser's bill because
of | 25 | | changes made pursuant to the tax imposed by the | 26 | | municipality. |
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| 1 | | (c) The privilege of using or consuming gas acquired in a | 2 | | purchase at retail and used or consumed within the corporate | 3 | | limits of a non-home rule municipality may be taxed at rates | 4 | | not to exceed the maximum rates, calculated on a monthly basis | 5 | | for each purchaser, as provided in this Section. | 6 | | (d) Beginning January 1, 2020, a non-home rule municipality | 7 | | may impose upon the privilege of using in the municipality gas | 8 | | obtained in a purchase of out-of-state gas at the rate per | 9 | | therm established by the non-home rule municipality or 5% of | 10 | | the purchase price for the billing period, whichever is the | 11 | | lower rate. This tax rate is the self-assessing purchaser tax | 12 | | rate. Beginning with bills issued by delivering suppliers on | 13 | | and after January 1, 2020 to purchasers within a municipality | 14 | | imposing a tax pursuant to this Section, purchasers may elect | 15 | | an alternate tax rate per therm established by the non-home | 16 | | rule municipality to be paid under the provisions of subsection | 17 | | (e) to a delivering supplier maintaining a place of business in | 18 | | this State. The non-home rule municipality shall establish this | 19 | | alternate tax rate, not less than annually, a rate per therm | 20 | | that would not exceed a tax imposed at the rate of 5% of the | 21 | | gross receipts for the purchase price for the billing period. | 22 | | (e) Beginning with bills issued on and after January 1, | 23 | | 2020, a delivering supplier maintaining a place of business in | 24 | | this State shall collect from the purchasers within a | 25 | | municipality imposing a tax pursuant to this Section who have | 26 | | elected the alternate tax rate provided in subsection (d) the |
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| 1 | | tax that is imposed by the municipality at the alternate tax | 2 | | rate. The tax imposed at the alternate tax rate shall, when | 3 | | collected, be stated as a distinct and separate item apart from | 4 | | the selling price of the gas. The tax collected by a delivering | 5 | | supplier shall constitute a debt owed by that person to the | 6 | | municipality imposing the tax. Upon receipt by a delivering | 7 | | supplier of a copy of a certificate of registration issued to a | 8 | | self-assessing purchaser under subsection (f), the delivering | 9 | | supplier is relieved of the duty to collect the alternate tax | 10 | | from that self-assessing purchaser beginning with bills issued | 11 | | to that self-assessing purchaser 30 or more days after receipt | 12 | | of the copy of that certificate of registration. | 13 | | (f) Any purchaser who does not elect the alternate tax rate | 14 | | to be paid to a delivering supplier shall register with the | 15 | | municipality imposing the tax as a self-assessing purchaser and | 16 | | pay the tax imposed directly to the municipality imposing the | 17 | | tax at the self-assessing purchaser rate. | 18 | | Application for a certificate of registration as a | 19 | | self-assessing purchaser shall be made to the municipality | 20 | | imposing the tax on forms furnished by the municipality and | 21 | | shall contain any reasonable information that the municipality | 22 | | requires. The self-assessing purchaser shall disclose the name | 23 | | of the delivering supplier or suppliers who are delivering the | 24 | | gas upon which the self-assessing purchaser will be paying tax | 25 | | to the municipality imposing the tax. | 26 | | Upon receipt of an application for a certificate of |
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| 1 | | registration in proper form, the municipality imposing the tax | 2 | | shall issue to the applicant a certificate of registration as a | 3 | | self-assessing purchaser. The applicant shall provide a copy of | 4 | | the certificate of registration as a self-assessing purchaser | 5 | | to the applicant's delivering supplier or suppliers. A | 6 | | purchaser registering as a self-assessing purchaser may not | 7 | | revoke the registration for at least one year after | 8 | | registration. | 9 | | (g) Except for purchasers who have chosen the alternate tax | 10 | | rate to be paid to a delivering supplier maintaining a place of | 11 | | business in this State, the tax imposed by the municipality | 12 | | pursuant to subsection (d) shall be paid to the municipality | 13 | | imposing the tax directly by each self-assessing purchaser that | 14 | | is subject to the tax imposed by the municipality. Each | 15 | | self-assessing purchaser shall, on or before the 15th day of | 16 | | each month, make a return to the municipality imposing the tax | 17 | | for the preceding calendar month, stating the following: | 18 | | (1) the self-assessing purchaser's name and principal | 19 | | address; | 20 | | (2) the total number of therms used by the | 21 | | self-assessing purchaser during the preceding calendar | 22 | | month and upon the basis of which the tax is imposed; | 23 | | (3) the purchase price of gas used by the | 24 | | self-assessing purchaser
during the preceding calendar | 25 | | month and upon the basis of which the tax is imposed; | 26 | | (4) amount of tax (computed upon items (2) and (3)); |
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| 1 | | and | 2 | | (5) any other reasonable information the
municipality | 3 | | imposing the tax may require. | 4 | | (h) A delivering supplier maintaining a place of business | 5 | | in this State who engages in the delivery of gas to customers | 6 | | within a municipality imposing the tax in this State shall | 7 | | register with the municipality imposing the tax. A delivering | 8 | | supplier, if required to otherwise register pursuant to a tax | 9 | | imposed under Section 8-11-2 of this Code, need not obtain an | 10 | | additional certificate of registration under this Section, but | 11 | | shall be deemed to be sufficiently registered by virtue of that | 12 | | registration with the municipality imposing the tax. | 13 | | Application for a certificate of registration shall be made | 14 | | to the municipality imposing the tax on forms furnished by the | 15 | | municipality and shall contain any reasonable information the | 16 | | municipality may require. Upon receipt of a completed | 17 | | application for a certificate of registration, the | 18 | | municipality imposing the tax shall issue to the applicant a | 19 | | certificate of registration. The municipality imposing the tax | 20 | | may deny a certificate of registration to any applicant if the | 21 | | applicant is in default for moneys due under this Section. A | 22 | | person aggrieved by a decision of the municipality imposing the | 23 | | tax under this subsection may, within 20 days after notice of | 24 | | the decision, protest and request a hearing, whereupon the | 25 | | municipality imposing the tax shall give notice to the person | 26 | | of the time and place fixed for the hearing, shall hold a |
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| 1 | | hearing in conformity with the provisions of this Section, and | 2 | | then issue its final administrative decision in the matter to | 3 | | the person. In the absence of a protest within 20 days, the | 4 | | municipality's decision shall become final without any further | 5 | | determination being made or notice given. | 6 | | (i) A delivering supplier who is required under subsection | 7 | | (e) to collect the tax imposed by the municipality shall make a | 8 | | return to the municipality imposing the tax on or before the | 9 | | 15th day of each month for the preceding calendar month stating | 10 | | the following: | 11 | | (1) the delivering supplier's name; | 12 | | (2) the address of the delivering supplier's principal | 13 | | place of
business and the address of the principal place of | 14 | | business (if that is a different address) from which the | 15 | | delivering supplier engages in the business of delivering | 16 | | gas to persons for use or consumption and not for resale; | 17 | | (3) the total number of therms of gas delivered to
| 18 | | purchasers within a municipality imposing a tax pursuant to | 19 | | this Section during the preceding calendar month and upon | 20 | | the basis of which the tax is imposed; | 21 | | (4) the amount of tax computed upon item (3); and | 22 | | (5) any other reasonable information as the | 23 | | municipality imposing the tax may require. | 24 | | In making the return, the delivering supplier engaged in | 25 | | the business of delivering gas to persons for use or | 26 | | consumption and not for resale may use any reasonable method to |
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| 1 | | derive reportable therms from the delivering supplier's | 2 | | billing and payment records. | 3 | | Notwithstanding any other provision in this Section | 4 | | concerning the time within which a delivering supplier may file | 5 | | its return, in the case of a delivering supplier who ceases to | 6 | | engage in a kind of business that makes it responsible for | 7 | | filing returns with a municipality imposing a tax under this | 8 | | Section, the delivering supplier shall file a final return | 9 | | under this Section with the affected municipality not more than | 10 | | one month after discontinuing a kind of business that makes it | 11 | | responsible for filing returns with a municipality. | 12 | | The delivering supplier making the return provided for in | 13 | | this Section shall, at the time of making the return, pay to | 14 | | the municipality the amount of tax imposed by the municipality. | 15 | | Section 10. The Public Utilities Act is amended by changing | 16 | | Section 9-221 as follows:
| 17 | | (220 ILCS 5/9-221) (from Ch. 111 2/3, par. 9-221)
| 18 | | Sec. 9-221.
Whenever a municipality pursuant to Section | 19 | | 8-11-2 or 8-11-2.7 of the
Illinois Municipal Code, as | 20 | | heretofore and hereafter amended, imposes a
tax on any public | 21 | | utility, such utility may charge its customers, other
than | 22 | | customers who are certified business enterprises under | 23 | | paragraph (e)
of Section 8-11-2 of the Illinois Municipal Code | 24 | | or are exempted from those
taxes under paragraph (f) of that |
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| 1 | | Section, to the
extent of such exemption and during the period | 2 | | in which such exemption is
in effect, in addition to any rate | 3 | | authorized by this Act, an additional
charge equal to the sum | 4 | | of (1) an amount equal to such municipal tax, or
any part | 5 | | thereof (2) 3% of such tax, or any part thereof, as the case | 6 | | may
be, to cover costs of accounting, and (3) an amount equal | 7 | | to the increase
in taxes and other payments to governmental | 8 | | bodies resulting from the
amount of such additional charge. | 9 | | Such utility shall file with the
Commission a true and correct | 10 | | copy of the municipal ordinance imposing such
tax; and also | 11 | | shall file with the Commission a supplemental schedule
| 12 | | applicable to such municipality which shall specify such | 13 | | additional charge
and which shall become effective upon filing | 14 | | without further notice. Such
additional charge shall be shown | 15 | | separately on the utility bill to each
customer. The Commission | 16 | | shall have power to investigate whether or not
such | 17 | | supplemental schedule correctly specifies such additional | 18 | | charge, but
shall have no power to suspend such supplemental | 19 | | schedule. If the
Commission finds, after a hearing, that such | 20 | | supplemental schedule does not
correctly specify such | 21 | | additional charge, it shall by order require a
refund to the | 22 | | appropriate customers of the excess, if any, with interest,
in | 23 | | such manner as it shall deem just and reasonable, and in and by | 24 | | such
order shall require the utility to file an amended | 25 | | supplemental schedule
corresponding to the finding and order of | 26 | | the Commission.
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| 1 | | (Source: P.A. 87-895; 88-132.)
| 2 | | Section 99. Effective date. This Act takes effect January | 3 | | 1, 2020.".
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