093_SB1733ham001











                                     LRB093 03177 RCE 17007 a

 1                    AMENDMENT TO SENATE BILL 1733

 2        AMENDMENT NO.     .  Amend Senate Bill 1733 by  replacing
 3    the title with the following:
 4        "AN ACT in relation to taxes."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7                             "ARTICLE 5

 8        Section 5-1. Short title. This Article may  be  cited  as
 9    the Gas Use Tax Law.

10        Section 5-5. Definitions.  For purposes of this Law:
11        "Delivering  supplier"  means  any  person engaged in the
12    business of delivering gas to persons for use or  consumption
13    and  not for resale, and who, in any case where more than one
14    person participates in the delivery  of  gas  to  a  specific
15    purchaser, is the last of the suppliers engaged in delivering
16    the gas prior to its receipt by the purchaser.
17        "Delivering  supplier  maintaining a place of business in
18    this State", or any like term, means any delivering  supplier
19    having  or  maintaining  within  this State, directly or by a
20    subsidiary, an office, distribution facility,  sales  office,
 
                            -2-      LRB093 03177 RCE 17007 a
 1    or  other place of business, or any employee, agent, or other
 2    representative  operating  within  this   State   under   the
 3    authority  of  such  delivering  supplier  or such delivering
 4    supplier's subsidiary, irrespective of whether such place  of
 5    business  or agent or other representative is located in this
 6    State permanently or temporarily, or whether such  delivering
 7    supplier or such delivering supplier's subsidiary is licensed
 8    to do business in this State.
 9        "Department" means the Department of Revenue of the State
10    of Illinois.
11        "Director" means the Director of Revenue.
12        "Gas"  means  any  gaseous  fuel  distributed  through  a
13    pipeline system.
14        "Maintaining  a  place of business in this State", or any
15    like term, means having or  maintaining  within  this  State,
16    directly  or  by a subsidiary, an office, distribution house,
17    sales house, warehouse, or other place of  business,  or  any
18    agent  or  other  representative  operating within this State
19    under the authority of any person or such person's subsidiary
20    engaged  in  the   business   of   distributing,   supplying,
21    furnishing or selling gas, irrespective of whether that place
22    of  business or agent or other representative is located here
23    permanently or temporarily, or whether that  person  or  that
24    person's  subsidiary engaged in the business of distributing,
25    supplying, furnishing, or  selling  gas  is  licensed  to  do
26    business in this State.
27        "Person"  means  any  natural  individual,  firm,  trust,
28    estate,  partnership, association, joint stock company, joint
29    adventure, corporation, or a receiver, trustee, guardian,  or
30    other  representative appointed by order of any court, or any
31    city, town, county, or other political  subdivision  of  this
32    State.
33        "Purchase  of  out-of-State  gas" means a transaction for
34    the purchase of gas from any supplier in a manner  that  does
 
                            -3-      LRB093 03177 RCE 17007 a
 1    not subject the seller of that gas to liability under the Gas
 2    Revenue Tax Act.
 3        "Purchase  price"  means  the  consideration paid for the
 4    distribution, supply, furnishing,  sale,  transportation,  or
 5    delivery  of  gas  to a person for use or consumption and not
 6    for resale, and for all  services  directly  related  to  the
 7    production,    transportation,   or   distribution   of   gas
 8    distributed,  supplied,  furnished,  sold,  transmitted,   or
 9    delivered  for use or consumption, as well as cash, services,
10    and property of every kind and  nature.   However,  "purchase
11    price" shall not include consideration paid for:
12             (i) Any charge for a dishonored check.
13             (ii)  Any  finance or credit charge, penalty, charge
14        for delayed payment, or discount for prompt payment.
15             (iii) Any charge for reconnection of service or  for
16        replacement or relocation of facilities.
17             (iv)   Any   advance   or  contribution  in  aid  of
18        construction.
19             (v) Repair, inspection, or  servicing  of  equipment
20        located on customer premises.
21             (vi)  Leasing or rental of equipment, the leasing or
22        rental  of  which  is  not   necessary   to   furnishing,
23        supplying, or selling gas.
24             (vii)  Any  purchase by a purchaser if the  supplier
25        is prohibited by federal or State  constitution,  treaty,
26        convention,  statute,  or  court decision from recovering
27        the related tax liability from such purchaser.
28             (viii)  Any  amounts  added  to  purchasers'   bills
29        because  of  changes  made pursuant to the tax imposed by
30        this Law.
31    In case credit is  extended,  the  amount  thereof  shall  be
32    included only as and when payments are received.
33        "Purchaser"  means  any person who acquires the ownership
34    of gas for use or consumption, and  not  for  resale,  for  a
 
                            -4-      LRB093 03177 RCE 17007 a
 1    valuable consideration.
 2        "Self-assessing  purchaser"  means a purchaser of gas for
 3    use or consumption that is required to be registered with the
 4    Department and is responsible for filing returns  and  paying
 5    the tax imposed under this Law directly to the Department.
 6        "Use"  means  the  exercise by any person of any right or
 7    power over gas incident to the ownership of that gas,  except
 8    that  it  does  not  include  the  sale of gas in the regular
 9    course of business.

10        Section 5-10. Imposition of  tax.  Beginning  October  1,
11    2003,  a  tax  is imposed upon the privilege of using in this
12    State gas obtained in a purchase of out-of-state gas  at  the
13    rate  of  2.4 cents per therm or 5% of the purchase price for
14    the billing period, whichever is the  lower  rate.  Such  tax
15    rate  shall  be  referred to as the "self-assessing purchaser
16    tax  rate."  Beginning  with  bills  issued   by   delivering
17    suppliers  on and after October 1, 2003, purchasers may elect
18    an alternative tax rate of 2.4 cents per  therm  to  be  paid
19    under  the  provisions  of  Section  5-15  of  this  Law to a
20    delivering supplier maintaining a place of business  in  this
21    State.  Such  tax rate shall be referred to as the "alternate
22    tax rate". The tax imposed under this Section shall not apply
23    to gas used by business enterprises certified  under  Section
24    9-222.1  of  the  Public  Utilities  Act,  as amended, to the
25    extent of such  exemption  and  during  the  period  of  time
26    specified   by  the  Department  of  Commerce  and  Community
27    Affairs.

28        Section 5-15. Collection of Gas Use Tax; relief of  duty.
29    Beginning  with  bills issued on and after October 1, 2003, a
30    delivering supplier maintaining a place of business  in  this
31    State shall collect, from the purchasers who have elected the
32    alternate  tax rate provided in Section 5-10 of this Law, the
 
                            -5-      LRB093 03177 RCE 17007 a
 1    tax that is imposed by this Law at the  alternate  2.4  cents
 2    per  therm rate. The tax imposed at the alternate tax rate by
 3    this Law shall, when collected, be stated as a  distinct  and
 4    separate  item  apart  from the selling price of the gas. The
 5    tax  herein  required  to  be  collected  by  any  delivering
 6    supplier shall constitute a debt owed by that person to  this
 7    State.  Upon  receipt by a delivering supplier of a copy of a
 8    certificate  of  registration  issued  to  a   self-assessing
 9    purchaser  under  Section  5-20  of this Law, that delivering
10    supplier is relieved of the duty to collect the alternate tax
11    from  that  self-assessing  purchaser  beginning  with  bills
12    issued to that self-assessing purchaser 30 or more days after
13    receipt of the copy of that certificate of registration.

14        Section.  5-20.  Self-assessing  purchaser  registration;
15    certificate of registration. Any purchaser who does not elect
16    the alternate tax rate to be paid to  a  delivering  supplier
17    shall  register  with  the  Department  as  a  self-assessing
18    purchaser and pay the tax imposed by Section 5-10 of this Law
19    directly  to  the  Department at the self-assessing purchaser
20    rate.
21        A purchaser registering as a self-assessing purchaser may
22    not  revoke  such  registration  for  at   least   one   year
23    thereafter.  Application for a certificate of registration as
24    a self-assessing purchaser shall be made  to  the  Department
25    upon  forms furnished by the Department and shall contain any
26    reasonable information that the Department may  require.  The
27    self-assessing  purchaser  shall  be required to disclose the
28    name  of  the  delivering  supplier  or  suppliers  who   are
29    delivering  the  gas  upon which the self-assessing purchaser
30    will be paying tax directly to the Department.
31        Upon receipt of the  application  for  a  certificate  of
32    registration  in  proper  form, the Department shall issue to
33    the  applicant   a   certificate   of   registration   as   a
 
                            -6-      LRB093 03177 RCE 17007 a
 1    self-assessing  purchaser. The applicant shall provide a copy
 2    of  the  certificate  of  registration  as  a  self-assessing
 3    purchaser  to  the   applicant's   delivering   supplier   or
 4    suppliers.

 5        Section  5-25.  Self-assessing  purchaser;  direct return
 6    and payment of tax. Except for purchasers who have chosen the
 7    alternate tax rate  to  be  paid  to  a  delivering  supplier
 8    maintaining  a  place  of  business  in  this  State, the tax
 9    imposed in Section 5-10 of this Law  shall  be  paid  to  the
10    Department  directly  by each self-assessing purchaser who is
11    subject to the tax imposed by this Law.  Each  self-assessing
12    purchaser  shall,  on  or  before the 15th day of each month,
13    make a return to the Department for  the  preceding  calendar
14    month, stating the following:
15             (1)  His or her name and principal address.
16             (2)  The  total  number of therms used by him or her
17        during the preceding calendar month and upon the basis of
18        which the tax is imposed.
19             (3)  The purchase price of gas used by  him  or  her
20        during the preceding calendar month and upon the basis of
21        which the tax is imposed.
22             (4)  Amount of tax (computed upon items 2 and 3).
23             (5)  Such   other   reasonable  information  as  the
24        Department may require.
25        In making such return, the self-assessing  purchaser  may
26    use  any  reasonable method to derive reportable "therms" and
27    "purchase price" from his or her billing and payment records.
28        If the average monthly liability  of  the  self-assessing
29    purchaser  to  the  Department  does  not  exceed  $100,  the
30    Department  may authorize his or her returns to be filed on a
31    quarter-annual basis, with the return for January,  February,
32    and March of a given year being due by April 30 of such year;
33    with  the  return  for  April,  May, and June of a given year
 
                            -7-      LRB093 03177 RCE 17007 a
 1    being due by July 31 of such year; with the return for  July,
 2    August, and September of a given year being due by October 31
 3    of  such year; and with the return for October, November, and
 4    December of a given year being  due  by  January  31  of  the
 5    following year.
 6        If  the  average  monthly liability of the self-assessing
 7    purchaser  to  the  Department  does  not  exceed  $20,   the
 8    Department  may authorize his or her returns to be filed on a
 9    annual basis, with the return for a given year being  due  by
10    January 31 of the following year.
11        Such  quarter-annual  and  annual returns, as to form and
12    substance, shall be  subject  to  the  same  requirements  as
13    monthly returns.
14        Notwithstanding   any   other   provision   in  this  Law
15    concerning the time within which a  self-assessing  purchaser
16    may  file  his  or  her  return,  in  the  case  of  any such
17    self-assessing purchaser who ceases to engage in  a  kind  of
18    business  which  makes  him  or  her  responsible  for filing
19    returns under this Law, such person shall file a final return
20    under this Law with the Department not more  than  one  month
21    after discontinuing such business.
22        Each   self-assessing  purchaser  whose  average  monthly
23    liability to the Department under this  Law  was  $10,000  or
24    more  during the preceding calendar year, excluding the month
25    of highest liability and the month  of  lowest  liability  in
26    such  calendar  year,  and  who  is not operated by a unit of
27    local  government,  shall  make  estimated  payments  to  the
28    Department on or before the 7th, 15th, 22nd, and last day  of
29    the  month  during  which  tax liability to the Department is
30    incurred in an amount not less than the lower of either 22.5%
31    of such person's actual tax liability for the month or 25% of
32    such person's actual tax  liability  for  the  same  calendar
33    month   of   the   preceding   year.   The   amount  of  such
34    quarter-monthly payments shall be credited against the  final
 
                            -8-      LRB093 03177 RCE 17007 a
 1    tax  liability  of  the self-assessing purchaser's return for
 2    that  month.  Any  outstanding  credit,   approved   by   the
 3    Department,   arising  from  the  self-assessing  purchaser's
 4    overpayment of his or her final tax liability for  any  month
 5    may  be  applied  to  reduce  the  amount  of  any subsequent
 6    quarter-monthly payment or credited  against  the  final  tax
 7    liability  of  such self-assessing purchaser's return for any
 8    subsequent month. If any quarter-monthly payment is not  paid
 9    at  the  time or in the amount required by this Section, such
10    person shall be  liable  for  penalty  and  interest  on  the
11    difference  between  the  minimum amount due as a payment and
12    the amount of such payment actually and timely  paid,  except
13    insofar  as such person has previously made payments for that
14    month to the Department in excess  of  the  minimum  payments
15    previously due.
16        The  self-assessing  purchaser making the return provided
17    for in this Section shall, at the time of making such return,
18    pay to the Department the amount of tax imposed by this  Law.
19    All moneys received by the Department under this Law shall be
20    paid into the General Revenue Fund in the State treasury.

21        Section  5-30.  Registration  of  delivering suppliers. A
22    delivering supplier maintaining a place of business  in  this
23    State  who engages in the delivery of gas in this State shall
24    register with  the  Department.  A  delivering  supplier,  if
25    required  to register under the Gas Revenue Tax Act, need not
26    obtain an additional certificate of registration  under  this
27    Law,  but  shall  be  deemed to be sufficiently registered by
28    virtue of his being registered under the Gas Revenue Tax Act.
29    Application for a certificate of registration shall  be  made
30    to  the Department upon forms furnished by the Department and
31    shall contain any reasonable information the  Department  may
32    require. Upon receipt of the application for a certificate of
33    registration  in  proper  form, the Department shall issue to
 
                            -9-      LRB093 03177 RCE 17007 a
 1    the applicant a certificate of registration.  The  Department
 2    may  deny  a  certificate of registration to any applicant if
 3    such applicant is in default for moneys due under  this  Law.
 4    Any  person aggrieved by any decision of the Department under
 5    this Section  may,  within  20  days  after  notice  of  such
 6    decision,  protest  and  request  a  hearing,  whereupon  the
 7    Department  shall  give notice to such person of the time and
 8    place fixed for such hearing and  shall  hold  a  hearing  in
 9    conformity with the provisions of this Law and then issue its
10    final  administrative  decision in the matter to such person.
11    In the  absence  of  such  a  protest  within  20  days,  the
12    Department's  decision shall become final without any further
13    determination being made or notice given.

14        Section 5-35. Return and payment  of  tax  by  delivering
15    supplier.   Each  delivering  supplier  who is required under
16    Section 5-15 to collect the tax imposed  by  this  Law  shall
17    make  a return to the Department on or before the 15th day of
18    each month for  the  preceding  calendar  month  stating  the
19    following:
20             (1)  His or her name.
21             (2)  The  address  of  his or her principal place of
22        business and  the  address  of  the  principal  place  of
23        business  (if  that is a different address) from which he
24        or she engages in  the  business  of  delivering  gas  to
25        persons for use or consumption and not for resale.
26             (3)  The  total number of therms of gas delivered to
27        purchasers during the preceding calendar month  and  upon
28        the basis of which the tax is imposed.
29             (4)  Amount of tax computed upon item 3.
30             (5)  Such   other   reasonable  information  as  the
31        Department may require.
32        In making such return the person engaged in the  business
33    of  delivering  gas to persons for use or consumption and not
 
                            -10-     LRB093 03177 RCE 17007 a
 1    for resale may use any reasonable method to derive reportable
 2    "therms" from his or her billing and payment records.
 3        If the average monthly liability to the Department of the
 4    delivering supplier does not exceed $100, the Department  may
 5    authorize  his or her returns to be filed on a quarter-annual
 6    basis, with the return for January, February, and March of  a
 7    given  year  being  due  by  April  30 of such year; with the
 8    return for April, May, and June of a given year being due  by
 9    July  31  of such year; with the return for July, August, and
10    September of a given year being due by  October  31  of  such
11    year; and with the return for October, November, and December
12    of  a  given  year  being  due by January 31 of the following
13    year.
14        If the average monthly liability to the Department of the
15    delivering supplier does not exceed $20, the  Department  may
16    authorize  his or her returns to be filed on an annual basis,
17    with the return for a given year being due by January  31  of
18    the following year.
19        Such  quarter-annual  and  annual returns, as to form and
20    substance, shall be  subject  to  the  same  requirements  as
21    monthly returns.
22        Notwithstanding   any   other   provision   in  this  Law
23    concerning the time within which a  delivering  supplier  may
24    file  his  or  her  return,  in  the  case  of any delivering
25    supplier who ceases to engage in  a  kind  of  business  that
26    makes  him  or  her responsible for filing returns under this
27    Law, such delivering supplier shall file a final return under
28    this Law with the Department not more than  one  month  after
29    discontinuing such business.
30        Each  delivering supplier whose average monthly liability
31    to the Department under this Law was $10,000 or  more  during
32    the  preceding  calendar year, excluding the month of highest
33    liability and the month of lowest liability in such  calendar
34    year,  and who is not operated by a unit of local government,
 
                            -11-     LRB093 03177 RCE 17007 a
 1    shall make estimated payments to the Department on or  before
 2    the  7th,  15th, 22nd, and last day of the month during which
 3    tax liability to the Department is incurred in an amount  not
 4    less  than  the lower of either 22.5% of such person's actual
 5    tax liability for the month or 25% of  such  person's  actual
 6    tax  liability  for  the same calendar month of the preceding
 7    year. The amount of such quarter-monthly  payments  shall  be
 8    credited  against  the  final  tax liability of such person's
 9    return for that month. Any outstanding  credit,  approved  by
10    the Department, arising from such person's overpayment of his
11    or  her  final  tax liability for any month may be applied to
12    reduce the amount of any subsequent  quarter-monthly  payment
13    or  credited against the final tax liability of such person's
14    return for  any  subsequent  month.  If  any  quarter-monthly
15    payment  is not paid at the time or in the amount required by
16    this Section, such person shall be  liable  for  penalty  and
17    interest  on the difference between the minimum amount due as
18    a payment and the amount of such payment actually and  timely
19    paid,  except  insofar  as  such  person  has previously made
20    payments for that month to the Department in  excess  of  the
21    minimum payments previously due.
22        The delivering supplier making the return provided for in
23    this Section shall, at the time of making such return, pay to
24    the  Department  the  amount  of tax imposed by this Law. All
25    moneys received by the Department under  this  Law  shall  be
26    paid into the General Revenue Fund in the State treasury.

27        Section  5-40.  Incorporation of applicable Sections. The
28    Department shall have full power to  administer  and  enforce
29    this  Law;  to collect all taxes, penalties, and interest due
30    hereunder; to dispose of taxes, penalties,  and  interest  so
31    collected   in   the  manner  hereinafter  provided;  and  to
32    determine all rights to credit memoranda or  refunds  arising
33    on  account  of  the  erroneous  payment  of tax, penalty, or
 
                            -12-     LRB093 03177 RCE 17007 a
 1    interest hereunder. In the administration of, and  compliance
 2    with,  this  Section,  the  Department  and  persons  who are
 3    subject to this Section shall have the same rights, remedies,
 4    privileges, immunities, powers, and duties, be subject to the
 5    same conditions, restrictions,  limitations,  penalties,  and
 6    definitions of terms, and employ the same modes of procedure,
 7    as  are  prescribed  in  Sections  2,  4,  5, 6, 7, 9 (except
 8    provisions relating to transaction returns  and  except  that
 9    the  due date for returns shall be the 15th day of each month
10    for the preceding calendar month), 10, 11, 12, 12a, 12b,  13,
11    14,  15,  18,  19, 20, 21, and 22 of the Use Tax Act, and are
12    not inconsistent with this Section,  as  fully  as  if  those
13    provisions were set forth herein.

14        Section  5-45.  Multistate  exemption.  To prevent actual
15    multi-state taxation of the  privilege  that  is  subject  to
16    taxation  under  this  Law,  any  purchaser,  upon proof that
17    purchaser has paid a tax in  another  state  on  such  event,
18    shall  be  allowed  a  credit against the tax imposed by this
19    Law, to the extent of the amount of the tax properly due  and
20    paid in the other state.

21        Section 5-50.  Exemptions. The tax imposed under this Act
22    shall not apply to:
23             (1)  Gas  used  by  business  enterprises  certified
24        under Section 9-222.1 of the Public Utilities Act, to the
25        extent  of  such exemptions and during the period of time
26        specified by the Department  of  Commerce  and  Community
27        Affairs;
28             (2)  Gas   used   by   governmental   bodies,  or  a
29        corporation,   society,   association,   foundation,   or
30        institution  organized  and  operated   exclusively   for
31        charitable, religious, or educational purposes.  Such use
32        shall  not  be  exempt  unless  the  government  body, or
 
                            -13-     LRB093 03177 RCE 17007 a
 1        corporation,   society,   association,   foundation,   or
 2        institution  organized  and  operated   exclusively   for
 3        charitable,  religious, or educational purposes has first
 4        been issued a tax exemption identification number by  the
 5        Department  of  Revenue  pursuant  to  Section  1g of the
 6        Retailers'  Occupation  Tax  Act.  A  limited   liability
 7        company  may qualify for the exemption under this Section
 8        only if the limited liability company  is  organized  and
 9        operated  exclusively  for educational purposes. The term
10        "educational purposes" shall have  the  same  meaning  as
11        that set forth in Section 2h of the Retailers' Occupation
12        Tax Act;
13             (3)  Gas  used in the production of electric energy.
14        This exemption does not include gas used in  the  general
15        maintenance  or  heating of an electric energy production
16        facility or other structure.
17        The  Department  may  adopt  rules   to   implement   the
18    provisions of this Section.

19        Section  5-905.   The  Gas  Revenue Tax Act is amended by
20    changing Sections 1 and 2 as follows:

21        (35 ILCS 615/1) (from Ch. 120, par. 467.16)
22        Sec. 1.  For the purposes of this Act:  "Gross  receipts"
23    means   the   consideration  received  for  gas  distributed,
24    supplied, furnished or sold to persons for use or consumption
25    and not for resale,  and  for  all  services  (including  the
26    transportation or storage of gas for an end-user) rendered in
27    connection  therewith,  and  shall include cash, services and
28    property of every kind or nature,  and  shall  be  determined
29    without  any deduction on account of the cost of the service,
30    product or commodity supplied, the cost  of  materials  used,
31    labor  or  service  costs,  or  any other expense whatsoever.
32    However, "gross receipts" shall not include receipts from:
 
                            -14-     LRB093 03177 RCE 17007 a
 1             (i)  any minimum or other  charge  for  gas  or  gas
 2        service where the customer has taken no therms of gas;
 3             (ii)  any charge for a dishonored check;
 4             (iii)  any  finance  or  credit  charge,  penalty or
 5        charge  for  delayed  payment,  or  discount  for  prompt
 6        payment;
 7             (iv)  any charge for reconnection of service or  for
 8        replacement or relocation of facilities;
 9             (v)  any   advance   or   contribution   in  aid  of
10        construction;
11             (vi)  repair, inspection or servicing  of  equipment
12        located on customer premises;
13             (vii)  leasing  or  rental of equipment, the leasing
14        or rental of which  is  not  necessary  to  distributing,
15        furnishing,  supplying,  selling, transporting or storing
16        gas;
17             (viii)  any sale to a customer if  the  taxpayer  is
18        prohibited  by  federal  or  State  constitution, treaty,
19        convention, statute or court decision from recovering the
20        related tax liability from such customer;
21             (ix)  any charges added to customers' bills pursuant
22        to the provisions of Section 9-221 or  Section  9-222  of
23        the  Public  Utilities  Act,  as  amended, or any charges
24        added to  customers'  bills  by  taxpayers  who  are  not
25        subject  to  rate  regulation  by  the  Illinois Commerce
26        Commission for the purpose of recovering any of  the  tax
27        liabilities or other amounts specified in such provisions
28        of such Act; and
29             (x)  prior to October 1, 2003, any charge for gas or
30        gas  services  to  a  customer  who  acquired contractual
31        rights for the direct purchase of  gas  or  gas  services
32        originating from an out-of-state supplier or source on or
33        before  March  1,  1995,  except for those charges solely
34        related to the local distribution  of  gas  by  a  public
 
                            -15-     LRB093 03177 RCE 17007 a
 1        utility.   This  exemption includes any charge for gas or
 2        gas service, except for those charges solely  related  to
 3        the  local  distribution of gas by a public utility, to a
 4        customer who maintained an account with a public  utility
 5        (as defined in Section 3-105 of the Public Utilities Act)
 6        for the transportation of customer-owned gas on or before
 7        March  1, 1995.  The provisions of this amendatory Act of
 8        1997  are  intended  to  clarify,  rather  than   change,
 9        existing  law  as  to  the  meaning  and  scope  of  this
10        exemption.   This  exemption (x) expires on September 30,
11        2003.
12        In case credit is extended, the amount thereof  shall  be
13    included only as and when payments are received.
14        "Gross receipts" shall not include consideration received
15    from  business enterprises certified under Section 9-222.1 of
16    the Public Utilities Act, as amended, to the extent  of  such
17    exemption  and  during  the  period  of time specified by the
18    Department of Commerce and Community Affairs.
19        "Department" means the Department of Revenue of the State
20    of Illinois.
21        "Director"  means  the  Director  of  Revenue   for   the
22    Department of Revenue of the State of Illinois.
23        "Taxpayer"  means  a  person  engaged  in the business of
24    distributing, supplying, furnishing or selling gas for use or
25    consumption and not for resale.
26        "Person"  means  any  natural  individual,  firm,  trust,
27    estate, partnership, association, joint stock company,  joint
28    adventure,  corporation,  limited  liability  company,  or  a
29    receiver, trustee, guardian or other representative appointed
30    by  order  of  any  court, or any city, town, county or other
31    political subdivision of this State.
32        "Invested capital" means that amount  equal  to  (i)  the
33    average  of  the  balances  at  the beginning and end of each
34    taxable period of the taxpayer's total  stockholder's  equity
 
                            -16-     LRB093 03177 RCE 17007 a
 1    and total long-term debt, less investments in and advances to
 2    all corporations, as set forth on the balance sheets included
 3    in  the  taxpayer's  annual  report  to the Illinois Commerce
 4    Commission for the  taxable  period;  (ii)  multiplied  by  a
 5    fraction  determined  under  Sections  301  and 304(a) of the
 6    "Illinois Income Tax Act" and reported on the Illinois income
 7    tax return for the taxable  period  ending  in  or  with  the
 8    taxable  period  in  question.  However,  notwithstanding the
 9    income  tax  return  reporting  requirement   stated   above,
10    beginning  July  1,  1979, no taxpayer's denominators used to
11    compute  the  sales,  property  or  payroll   factors   under
12    subsection  (a) of Section 304 of the Illinois Income Tax Act
13    shall include payroll, property or  sales  of  any  corporate
14    entity   other   than   the  taxpayer  for  the  purposes  of
15    determining an allocation for the invested capital tax.  This
16    amendatory  Act  of 1982, Public Act 82-1024, is not intended
17    to and does not  make  any  change  in  the  meaning  of  any
18    provision  of  this  Act,  it  having  been the intent of the
19    General Assembly in  initially  enacting  the  definition  of
20    "invested  capital"  to  provide  for  apportionment  of  the
21    invested  capital  of  each  company,  based  solely upon the
22    sales, property and payroll of that company.
23        "Taxable period" means each period which ends  after  the
24    effective  date of this Act and which is covered by an annual
25    report filed by  the  taxpayer  with  the  Illinois  Commerce
26    Commission.
27    (Source: P.A. 89-417, eff. 1-1-96; 90-16, eff. 6-16-97.)

28        (35 ILCS 615/2) (from Ch. 120, par. 467.17)
29        Sec.  2.  A  tax  is  imposed upon persons engaged in the
30    business of distributing, supplying,  furnishing  or  selling
31    gas  to  persons for use or consumption and not for resale at
32    the rate of 2.4 cents per  therm  of  all  gas  which  is  so
33    distributed,  supplied,  furnished, sold or transported to or
 
                            -17-     LRB093 03177 RCE 17007 a
 1    for each customer in the course of such business,  or  5%  of
 2    the  gross  receipts  received  from  each customer from such
 3    business, whichever is the lower  rate  as  applied  to  each
 4    customer  for  that  customer's billing period, provided that
 5    any change in rate imposed by this  amendatory  Act  of  1985
 6    shall become effective only with bills having a meter reading
 7    date on or after January 1, 1986. However, such taxes are not
 8    imposed  with respect to any business in interstate commerce,
 9    or otherwise to the extent to which such  business  may  not,
10    under  the Constitution and statutes of the United States, be
11    made the subject of taxation by this State.
12        Nothing in this amendatory Act of 1985 shall impose a tax
13    with respect to any transaction with respect to which no  tax
14    was  imposed immediately preceding the effective date of this
15    amendatory Act of 1985.
16        Beginning with bills issued to  customers  on  and  after
17    October  1,  2003,  no tax shall be imposed under this Act on
18    transactions with customers who incur a tax  liability  under
19    the Gas Use Tax Law.
20    (Source: P.A. 84-307; 84-1093.)

21        Section 5-999.  Effective date.  This Act takes effect on
22    October 1, 2003.".