35 ILCS 640/2-2
2021 Illinois Compiled Statutes|Chapter 35 - REVENUE|35 ILCS 640/ - Electricity Excise Tax Law.|Article 2 - Electricity Excise Tax Law

Sec. 2-2.     Findings and intent.     The General Assembly finds  that the deregulation and restructuring of the electric  utility industry in this State mandated and implemented by  this amendatory Act of 1997, including the unbundling of  services and the authorization of competition in the provision  of those services such that consumers may in the future  transact with multiple providers to obtain the services that  were formerly provided by a single franchised monopoly  supplier of electricity, renders the system of taxation  embodied in the Public Utilities Revenue Act impracticable and  infeasible.  The General Assembly further finds that the  deregulation and restructuring of the electric utility  industry necessitate changes to the existing system of  taxation in order to preserve  revenue neutrality in tax  collections for the State of Illinois, to avoid placing any  supplier engaged in the business of distributing, supplying,  furnishing, selling, transmitting or delivering electricity at  a competitive disadvantage, to minimize  additional  administrative costs and burdens of collection, and to avoid  the imposition of increased tax burdens on individual  consumers of electricity, particularly residential electric  users virtually all of whom, pursuant to Section 2 of the  Public Utilities Revenue Act, presently bear the economic  burden of the tax imposed thereunder at the rate of .32 cents  per kilowatt-hour distributed, supplied, furnished, sold,  transmitted or delivered to them.  The General Assembly  further finds that to change the current rates at which non-residential users  bear the economic burden of the Public  Utilities Revenue Tax, thereby resulting  in increases in the  amount of tax for which non-residential users bear the  economic burden, could impose additional cost burdens on  businesses in this State and adversely affect economic  development and business retention in Illinois unless such  users are provided options for paying an excise tax on the  basis of purchase price.  The  General Assembly therefore finds that there is a compelling public need  to modify the system of taxation embodied in the Public  Utilities Revenue Act by repealing the tax imposed by Section  2 of that Act and imposing this electricity excise tax so as  to:(1) Impose the electricity excise tax on the     privilege of electric use measured by  the kilowatt-hours delivered to the purchaser;(2) As part of this amendatory Act of 1997, repeal     the tax imposed by Section 2-202 of the Public Utilities Act as applicable to electric utilities and establish the rates of tax imposed under the electricity excise tax in order to collect substantially the same amount of revenue as was collected under Section 2-202 of that Act; and(3) Allow non-residential consumers of electricity to     elect to register with the Department of Revenue as self-assessing purchasers and to pay the electricity excise tax directly to the Department at a rate which is established as a percentage of such consumer's purchase price for electricity distributed, supplied, furnished, sold, transmitted or delivered to the purchaser.   (Source: P.A. 90-561, eff. 8-1-98.)