State of Illinois
92nd General Assembly
Legislation

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92_HB4361

 
                                               LRB9211362SMdv

 1        AN  ACT  to  amend  the Illinois Municipal Code by adding
 2    Section 8-11-21.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.   The  Illinois  Municipal Code is amended by
 6    adding Section 8-11-21 as follows:

 7        (65 ILCS 5/8-11-21 new)
 8        Sec. 8-11-21.  Municipal gas use tax.
 9        (a)  The corporate authorities  of  any  municipality  in
10    this  State  may  impose a use tax on the act or privilege of
11    using or consuming gas within the corporate  limits  of  that
12    municipality  that  is  purchased  in  a sale at retail.  The
13    ultimate incidence of and liability for payment of the tax is
14    on the retail purchaser and nothing in this Section shall  be
15    construed  to impose a tax on the occupation of distributing,
16    supplying, furnishing, selling,  or  transporting  gas.   The
17    rate of the use tax on gas imposed on a retail purchaser by a
18    municipality  under  this  Section shall not exceed $0.02 per
19    therm of gas used or consumed.
20        (b)  The use tax authorized by  subsection  (a)  of  this
21    Section  may be levied only if the municipality does not then
22    have in effect an occupation tax imposed on  persons  engaged
23    in  the  business  of distributing, supplying, furnishing, or
24    selling gas, as authorized by Section 8-11-2.
25        (c)  The  retail  purchaser  shall  pay   the   use   tax
26    authorized  by this Section, measured by the amount of therms
27    of all gas delivered to the retail purchaser's premises,  and
28    the  use  tax  shall  be  collected  by  the  public  utility
29    maintaining  a  place of business in this State and making or
30    effectuating the final delivery of the gas subject to the use
31    tax to the retail purchaser.  Any  use  tax  required  to  be
 
                            -2-                LRB9211362SMdv
 1    collected pursuant to an ordinance authorized by this Section
 2    and  any  such  tax  collected  by  a  public  utility  shall
 3    constitute   a  debt  owed  by  the  public  utility  to  the
 4    municipality. Public utilities shall collect the tax from the
 5    retail purchaser by adding the tax to the  gross  charge  for
 6    the  act  or  privilege  of delivering the gas, in the manner
 7    prescribed by the municipality.  The tax authorized  by  this
 8    Section  shall  constitute  a debt of the retail purchaser to
 9    the public utility that delivers the gas until paid  and,  if
10    unpaid,  is  recoverable  at  law  in  the same manner as the
11    original charge for the delivery  services.   If  the  public
12    utility  fails to collect the use tax from the taxpayer, then
13    the taxpayer is required to pay the use tax directly  to  the
14    municipality in the manner provided by the municipality.  The
15    municipality  imposing  the  use  tax  shall  provide for its
16    administration and enforcement.
17        (d)  For purposes  of  the  use  tax  described  by  this
18    Section:
19             "Person"  means any individual, firm, trust, estate,
20        partnership,  association,  joint  stock  company,  joint
21        venture,   corporation,   limited   liability    company,
22        municipal  corporation,  or political subdivision of this
23        State or  a  receiver,  trustee,  conservator,  or  other
24        representative appointed by order of any court.
25             "Public  utility"  means a public utility as defined
26        in Section 3-105 of the Public Utilities Act.
27             "Retail purchaser" means any  person  who  purchases
28        gas in a sale at retail.
29             "Sale at retail" means any sale of gas by a retailer
30        to  a  person for use or consumption, and not for resale.
31        For this purpose, the term "retailer"  means  any  person
32        engaged  in  the  business  of  distributing,  supplying,
33        furnishing, or selling gas.
34        (e)  Public   utilities   filing   tax   returns  with  a
 
                            -3-                LRB9211362SMdv
 1    municipality under this Section shall, at the time of  filing
 2    the  return,  pay  to  the municipality the amount of the tax
 3    collected under this Section, less  a  commission  of  3.00%,
 4    which  is  allowed  to  reimburse  the public utility for the
 5    expenses incurred in keeping records, billing  the  customer,
 6    preparing   and   filing  returns,  remitting  the  tax,  and
 7    supplying  data  to  the  municipality  upon   request.    No
 8    commission  may  be  claimed  by a public utility for tax not
 9    timely remitted to the municipality.
10        (f)  If a person who receives gas in a municipality  that
11    imposes  a  use  tax on gas under this Section claims to be a
12    reseller of the gas and not a retail purchaser,  that  person
13    shall  apply  to  the  municipality for a resale number.  The
14    applicant shall state facts that show  the  municipality  why
15    the  applicant  is  not  liable  for  tax under any ordinance
16    authorized by this Section  on  the  use  of  gas  and  shall
17    furnish  such  additional information as the municipality may
18    reasonably require. Upon approval  of  the  application,  the
19    municipality  shall  assign  a resale number to the applicant
20    and  shall  certify  that  number  to  the  applicant.    The
21    municipality  may  cancel any number that is obtained through
22    misrepresentation, that is used to use or consume  gas  which
23    in  fact is not for resale, or that no longer applies because
24    of the person's having discontinued the  making  of  resales.
25    Except  as  otherwise  provided  in  this Section, the act or
26    privilege of using or consuming gas in this State  shall  not
27    be  made tax-free on the ground of being delivered for resale
28    unless the person  has  an  active  resale  number  from  the
29    municipality  and furnishes that number to the public utility
30    in connection with certifying to the public utility that  any
31    delivery  to  that  person  is non-taxable because of being a
32    delivery for resale.
33        (g)  A municipality that imposes a use tax upon gas under
34    this Section and whose territory  includes  all  or  part  of
 
                            -4-                LRB9211362SMdv
 1    another unit of local government or a school district may, by
 2    ordinance,  exempt  the  other  unit  of  local government or
 3    school district from those taxes.
 4        (h)  A municipality that imposes a use tax upon gas under
 5    this Section may, by ordinance, (i) reduce the  rate  of  the
 6    tax  for  persons  65  years  of  age or older or (ii) exempt
 7    persons 65 years of age or older from the tax.  Taxes related
 8    to such rate reductions or exemptions shall be  rebated  from
 9    the  municipality  directly to persons qualified for the rate
10    reduction or exemption as determined  by  the  municipality's
11    ordinance.

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