2023 Illinois Compiled Statutes › Chapter 35 - REVENUE › 35 ILCS 173/ - Gas Use Tax Law. › Article 5 - Gas Use Tax Law

(35 ILCS 173/Art. 5 heading)
ARTICLE 5
(35 ILCS 173/5-1)
Sec. 5-1. 
		Short title. 
		This Article may be cited as the Gas
Use Tax
Law.
(Source: P.A. 93-31, eff. 10-1-03.)
(35 ILCS 173/5-5)
Sec. 5-5. 
		Definitions. 
		For purposes of this Law:
"Delivering supplier" means any person engaged in the business of
delivering gas
to persons 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", or
any like
term, 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 such delivering supplier or such delivering supplier's subsidiary,
irrespective
of whether such place of business or agent or other representative is located
in
this State
permanently or temporarily, or whether such delivering supplier or such
delivering
supplier's subsidiary is licensed to do business in this State.
"Department" means the Department of Revenue of the State of Illinois.
"Director" means the Director 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, limited liability company,
or a 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.  However,
"purchase price" shall not include consideration paid for:
(i) Any charge for a dishonored check.
(ii) Any finance or credit charge, penalty, charge     for delayed payment, or discount for prompt payment.
(iii) Any charge for reconnection of service or for     replacement or relocation of facilities.
(iv) Any advance or contribution in aid of     construction.
(v) Repair, inspection, or servicing of equipment     located on customer premises.
(vi) Leasing or rental of equipment, the leasing or     rental of which is not necessary to furnishing, supplying, or selling gas.
(vii) Any purchase by a purchaser if the  supplier is     prohibited by federal or State constitution, treaty, convention, statute, or court decision from recovering the related tax liability from such purchaser.
(viii) Any amounts added to purchasers' bills because     of changes made pursuant to the tax imposed by this Law.
		In case credit is extended, the amount thereof shall be included only as and
when
payments are received.
"Purchaser" means any person who acquires the ownership of gas for use or
consumption, and not for resale, for a valuable consideration.
"Self-assessing purchaser" means a purchaser of gas for use or
consumption that
is required to be registered with the Department and is responsible for filing
returns and
paying the tax imposed under this Law directly to the Department.
"Use" means the exercise by any person of any right or power over gas
incident to
the ownership of that gas, except that it does not include the sale of gas in
the regular
course of business.
(Source: P.A. 93-31, eff. 10-1-03.)
(35 ILCS 173/5-10)
Sec. 5-10. Imposition of tax. Beginning October 1, 2003, a tax is imposed
upon the privilege of
using in
this State gas obtained in 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.
Such tax rate shall be referred to as the "self-assessing purchaser tax rate".
Beginning
with bills issued by delivering suppliers on and after October 1, 2003,
purchasers
may elect
an alternative tax rate of 2.4 cents per therm to be paid under the provisions
of Section 5-15 of this Law to a delivering supplier maintaining a place of
business in this
State. Such
tax rate shall be referred to as the "alternate tax rate". The tax imposed
under this Section
shall not apply to gas used by business enterprises certified under
Section 9-222.1 of the
Public Utilities Act, as amended, to the extent of such exemption and during
the
period of
time specified by the Department of Commerce and Economic Opportunity.
(Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.)
(35 ILCS 173/5-15)
Sec. 5-15. 
		Collection of Gas Use Tax; relief of duty. 
		Beginning with
bills
issued on and after October 1, 2003, a delivering supplier maintaining a place
of
business in
this State shall collect, from the purchasers who have elected the alternate
tax
rate
provided in Section 5-10 of this Law, the tax that is imposed by this Law at
the
alternate
2.4 cents per therm rate. The tax imposed at the alternate tax rate by this
Law shall,
when collected, be stated as a distinct and separate item apart from the
selling
price of the
gas. The tax collected by any delivering supplier shall
constitute a
debt owed by that person to this State. Upon receipt by a delivering supplier
of a copy of a
certificate of registration issued to a self-assessing purchaser under Section
5-20 of this
Law, that delivering supplier is relieved of the duty to collect the alternate
tax from that
self-assessing purchaser beginning with bills issued to that self-assessing
purchaser 30 or
more days after receipt of the copy of that certificate of registration.
(Source: P.A. 93-31, eff. 10-1-03.)
(35 ILCS 173/5-20)
Sec. 5-20. 
		
		Self-assessing purchaser registration; certificate of
registration.
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 Section 5-10 of this Law directly to the Department at the self-assessing
purchaser
rate.
A purchaser registering as a self-assessing purchaser may not revoke such
registration for at least one year thereafter. Application for a certificate of
registration as
a self-assessing purchaser shall be made to the Department upon forms furnished
by the
Department and shall contain any reasonable information that the Department may
require. The self-assessing purchaser shall be required to disclose the name
of the
delivering supplier or suppliers who are delivering the gas upon which the
self-assessing purchaser will be paying tax directly to the Department.
Upon receipt of the 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.
(Source: P.A. 93-31, eff. 10-1-03.)
(35 ILCS 173/5-25)
Sec. 5-25. 
		Self-assessing purchaser; direct return and payment of tax. 
		Except for
purchasers who
have chosen the alternate tax rate to be paid to a delivering supplier
maintaining a place
of business in this State,
the tax imposed in Section 5-10 of
this
Law  shall be
paid to the
Department directly by each self-assessing purchaser who is subject to the tax
imposed by
this
Law. 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) His or her name and principal address.
(2) The total number of therms used by him or her     during the preceding calendar month and upon the basis of which the tax is imposed.
(3) The purchase price of gas used by him or her     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).
(5) Such other reasonable information as the     Department may require.
In making such return, the self-assessing purchaser may use any reasonable
method to
derive
reportable "therms" and "purchase price" from his or her billing and payment
records.
If the average monthly liability of the self-assessing purchaser to the
Department does
not
exceed $100, the Department may authorize his or her returns to be filed on a
quarter-annual basis, with the return for January, February, and March of a
given year
being due
by April 30 of such year; with the return for April, May, and June of a given
year being
due by July 31 of such year; with the return for July, August, and September of
a given
year being due by October 31 of such year; and with the return for October,
November,
and December of a given year being due by January 31 of the following year.
If the average monthly liability of the self-assessing purchaser to the
Department does
not
exceed $20, the Department may authorize his or her returns to be filed on a
annual basis,
with the return for a given year being due by January 31 of the following year.
Such quarter-annual and annual returns, as to form and substance, shall
be subject
to the same requirements as monthly returns.
Notwithstanding any other provision in this Law concerning the time
within which
a self-assessing purchaser may file his or her return, in the case of any such
self-assessing purchaser who
ceases to
engage in a kind of business which makes him or her responsible for filing
returns under
this Law, such person shall file a final return under this Law with the
Department not more
than one month after discontinuing such business.
Each self-assessing purchaser whose average monthly liability to the
Department under
this Law
was $10,000 or more during the preceding calendar year, excluding the month of
highest
liability and the month of lowest liability in such calendar year, and who is
not operated
by a unit of local government, shall make estimated payments to the Department
on or
before the 7th, 15th, 22nd, and last day of the month during which tax
liability
to the
Department is incurred in an amount not less than the lower of either 22.5% of
such
person's actual tax liability for the month or 25% of such person's actual tax
liability for the
same calendar month of the preceding year. The amount of such quarter-monthly
payments shall be credited against the final tax liability of the
self-assessing purchaser's
return for that
month. Any outstanding credit, approved by the Department, arising from the
self-assessing purchaser's
overpayment of his or her final tax liability for any month may be applied to
reduce the
amount of any subsequent quarter-monthly payment or credited against the final
tax
liability of such self-assessing purchaser's return for any subsequent month.
If any
quarter-monthly
payment is not paid at the time or in the amount required by this Section, such
person
shall be liable for penalty and interest on the difference between the minimum
amount
due as a payment and the amount of such payment actually and timely paid,
except
insofar as such person has previously made payments for that month to the
Department in
excess of the minimum payments previously due.
The self-assessing purchaser making the return provided for in this Section
shall, at
the time of
making such return, pay to the Department the amount of tax imposed by this
Law.
All
moneys received by the Department under this Law shall be paid into the General
Revenue Fund in the State treasury.
(Source: P.A. 93-31, eff. 10-1-03.)
(35 ILCS 173/5-30)
Sec. 5-30. 
		Registration of delivering suppliers. 
		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
register
under the Gas Revenue Tax Act, need not obtain an additional certificate of
registration
under this Law, but shall be deemed to be sufficiently registered by virtue of
his being
registered under the Gas Revenue Tax Act. Application for a certificate of
registration
shall be made to the Department upon forms furnished by the Department and
shall
contain any reasonable information the Department may require. Upon receipt of
the
application for a certificate of registration in proper form, the Department
shall issue to
the applicant a certificate of registration. The Department may deny a
certificate of
registration to any applicant if such applicant is in default for moneys due
under this Law.
Any person aggrieved by any decision of the Department under this Section may,
within
20 days after notice of such decision, protest and request a hearing, whereupon
the
Department shall give notice to such person of the time and place fixed
for such hearing
and shall hold a hearing in conformity with the provisions of this Law and then
issue its
final administrative decision in the matter to such person. In the absence of
such a
protest within 20 days, the Department's decision shall become final without
any further
determination being made or notice given.
(Source: P.A. 93-31, eff. 10-1-03.)
(35 ILCS 173/5-35)
Sec. 5-35. 
		Return and payment of tax by delivering supplier. 
		Each
delivering supplier
who is required under Section 5-15
to collect
the tax imposed by this Law 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) His or her name.
(2) The address of his or her principal place of     business and the address of the principal place of business (if that is a different address) from which he or she 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 during the preceding calendar month and upon the basis of which the tax is imposed.
(4) Amount of tax computed upon item 3.
(5) Such other reasonable information as the     Department may require.
In making such return the person 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 his or her billing and payment records.
If the average monthly liability to the Department of the delivering supplier
does not exceed
$100, the
Department may authorize his or her returns to be filed on a quarter-annual
basis, with
the return for January, February, and March of a given year being due by April
30 of such
year; with the return for April, May, and June of a given year being due by
July
31 of
such year; with the return for July, August, and September of a given year
being
due by
October 31 of such year; and with the return for October, November, and
December
of a
given year being due by January 31 of the following year.
If the average monthly liability to the Department of the delivering supplier
does not exceed
$20, the
Department may authorize his or her returns to be filed on an annual basis,
with
the return
for a given year being due by January 31 of the following year.
Such quarter-annual and annual returns, as to form and substance, shall
be subject
to the same requirements as monthly returns.
Notwithstanding any other provision in this Law concerning the time
within which
a delivering supplier may
file his or her return, in the case of any delivering supplier who ceases to
engage in
a
kind of
business that makes him or her responsible for filing returns under this Law,
such
delivering supplier shall file a final return under this Law with the
Department not more
than one
month after discontinuing such business.
Each delivering supplier
whose average monthly liability to the Department under this Law
was
$10,000 or more during the preceding calendar year, excluding the month of
highest
liability and the month of lowest liability in such calendar year, and who is
not operated
by a unit of local government, shall make estimated payments to the Department
on or
before the 7th, 15th, 22nd, and last day of the month during which tax
liability
to the
Department is incurred in an amount not less than the lower of either 22.5% of
such
person's actual tax liability for the month or 25% of such person's actual tax
liability for
the same calendar month of the preceding year. The amount of such
quarter-monthly
payments shall be credited against the final tax liability of such person's
return for that
month. Any outstanding credit, approved by the Department, arising from such
person's
overpayment of his or her final tax liability for any month may be applied to
reduce the
amount of any subsequent quarter-monthly payment or credited against the final
tax
liability of such person's return for any subsequent month. If any
quarter-monthly
payment is not paid at the time or in the amount required by this Section, such
person
shall be liable for penalty and interest on the difference between the minimum
amount
due as a payment and the amount of such payment actually and timely paid,
except
insofar as such person has previously made payments for that month to the
Department in
excess of the minimum payments previously due.
The delivering supplier
making the return provided for in this Section shall, at the time
of
making
such return, pay to the Department the amount of tax imposed by this Law. All
moneys
received by the Department under this Law shall be paid into the General
Revenue
Fund
in the State treasury.
(Source: P.A. 93-31, eff. 10-1-03.)
(35 ILCS 173/5-40)
Sec. 5-40. Incorporation of applicable Sections. The Department shall
have
full power to administer and enforce this Law; to collect all taxes, penalties,
and interest
due hereunder; to dispose of taxes, penalties, and interest so collected in the
manner
hereinafter provided; and to determine all rights to credit memoranda or
refunds
arising
on account of the erroneous payment of tax, penalty, or interest hereunder. In
the
administration of, and compliance with, this Section, the Department and
persons
who
are subject to this Section shall have the same rights, remedies, privileges,
immunities,
powers, and duties, be subject to the same conditions, restrictions,
limitations,
penalties, and definitions of terms, and employ the same modes of procedure, as
are
prescribed in Sections 2, 4, 5, 6, 7, 9 (except provisions relating to
transaction returns and
except that the due date for returns shall be the 15th day of each month for
the
preceding
calendar month), 10, 11, 12, 12a, 12b, 13, 14, 15, 18, 19, 20, 21, and 22 of
the
Use Tax
Act, and are not inconsistent with this Section, as fully as if those
provisions
were set
forth herein.
Notwithstanding any other provision of this Chapter, a business enterprise classified under Standard Industrial Code  (SIC) 3221 that (i) was located, on or before November 1, 2005, in an enterprise zone certified by the Department of Commerce and Economic Opportunity, (ii) was eligible for an exemption under item (1) of Section 5-50 of this Act for the entire period of November 1, 2005, through October 31, 2008, (iii) was entitled to a refund of at least $75,000 during any 6-month period between November 1, 2005 and October 31, 2008, and (iv) paid the tax due under this Act for the period from November 1, 2005 through October 31, 2008, may request that the public utility file an amended return or returns with the Department reflecting the entire credit due to the business enterprise, and the utility shall file that amended return or returns. The business enterprise must make a written request to the public utility within 15 days after the effective date of this amendatory Act of the 96th General Assembly.  The utility must file the amended return or returns within 45 days after receiving the request.
(Source: P.A. 96-27, eff. 6-30-09.)
(35 ILCS 173/5-45)
Sec. 5-45. 
		Multistate exemption. 
		To prevent actual multi-state
taxation of the
privilege that is subject to taxation under this Law, any purchaser, upon proof
that
purchaser has paid a tax in another state on such event, shall be allowed a
credit against
the tax imposed by this Law, to the extent of the amount of the tax properly
due
and paid
in the other state.
(Source: P.A. 93-31, eff. 10-1-03.)
(35 ILCS 173/5-50)
Sec. 5-50. 
		Exemptions. 
		The tax imposed under this Act shall not apply to:
(1) Gas used by business enterprises located in an     enterprise zone certified by the Department of Commerce and Economic Opportunity pursuant to the Illinois Enterprise Zone Act;
(2) Gas used by governmental bodies, or a     corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes.  Such use shall not be exempt unless the government body, or corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes has first been issued a tax exemption identification number by the Department of Revenue pursuant to Section 1g of the Retailers' Occupation Tax Act. A limited liability company may qualify for the exemption under this Section only if the limited liability company is organized and operated exclusively for educational purposes. The term "educational purposes" shall have the same meaning as that set forth in Section 2h of the Retailers' Occupation Tax Act;
(3) Gas used in the production of electric energy.      This exemption does not include gas used in the general maintenance or heating of an electric energy production facility or other structure;
(4) Gas used in a petroleum refinery operation;
(5) Gas purchased by persons for use in liquefaction     and fractionation processes that produce value added natural gas byproducts for resale;
(6) Gas used in the production of anhydrous ammonia     and downstream nitrogen fertilizer products for resale.
The Department may adopt rules to implement the provisions of this
Section.
(Source: P.A. 93-31, eff. 10-1-03.)
(35 ILCS 173/5-905)
Sec. 5-905. 
		(Amendatory provisions; text omitted).
(Source: P.A. 93-31, eff. 10-1-03.)
(35 ILCS 173/5-999)
Sec. 5-999. 
		Effective date. 
		This Act takes effect on October 1, 2003.
(Source: P.A. 93-31, eff. 10-1-03.)