093_SB1733enr

 
SB1733 Enrolled                      LRB093 03177 JLS 03194 b

 1        AN ACT in relation to taxes.

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

 4                              ARTICLE 5

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

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

18        Section  5-10.  Imposition  of  tax. Beginning October 1,
19    2003, a tax is imposed upon the privilege of  using  in  this
20    State  gas  obtained in a purchase of out-of-state gas at the
21    rate of 2.4 cents per therm or 5% of the purchase  price  for
22    the  billing  period,  whichever  is the lower rate. Such tax
23    rate shall be referred to as  the  "self-assessing  purchaser
24    tax   rate".   Beginning  with  bills  issued  by  delivering
25    suppliers on and after October 1, 2003, purchasers may  elect
26    an  alternative  tax  rate  of 2.4 cents per therm to be paid
27    under the provisions  of  Section  5-15  of  this  Law  to  a
28    delivering  supplier  maintaining a place of business in this
29    State. Such tax rate shall be referred to as  the  "alternate
30    tax rate". The tax imposed under this Section shall not apply
31    to  gas  used by business enterprises certified under Section
32    9-222.1 of the Public  Utilities  Act,  as  amended,  to  the
33    extent  of  such  exemption  and  during  the  period of time
 
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 1    specified  by  the  Department  of  Commerce  and   Community
 2    Affairs.

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

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

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

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

22        Section  5-35.  Return  and  payment of tax by delivering
23    supplier.  Each delivering supplier  who  is  required  under
24    Section  5-15  to  collect  the tax imposed by this Law shall
25    make a return to the Department on or before the 15th day  of
26    each  month  for  the  preceding  calendar  month stating the
27    following:
28             (1)  His or her name.
29             (2)  The address of his or her  principal  place  of
30        business  and  the  address  of  the  principal  place of
31        business (if that is a different address) from  which  he
32        or  she  engages  in  the  business  of delivering gas to
33        persons for use or consumption and not for resale.
 
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 1             (3)  The total number of therms of gas delivered  to
 2        purchasers  during  the preceding calendar month and upon
 3        the basis of which the tax is imposed.
 4             (4)  Amount of tax computed upon item 3.
 5             (5)  Such  other  reasonable  information   as   the
 6        Department may require.
 7        In  making such return the person engaged in the business
 8    of delivering gas to persons for use or consumption  and  not
 9    for resale may use any reasonable method to derive reportable
10    "therms" from his or her billing and payment records.
11        If the average monthly liability to the Department of the
12    delivering  supplier does not exceed $100, the Department may
13    authorize his or her returns to be filed on a  quarter-annual
14    basis,  with the return for January, February, and March of a
15    given year being due by April  30  of  such  year;  with  the
16    return  for April, May, and June of a given year being due by
17    July 31 of such year; with the return for July,  August,  and
18    September  of  a  given  year being due by October 31 of such
19    year; and with the return for October, November, and December
20    of a given year being due by  January  31  of  the  following
21    year.
22        If the average monthly liability to the Department of the
23    delivering  supplier  does not exceed $20, the Department may
24    authorize his or her returns to be filed on an annual  basis,
25    with  the  return for a given year being due by January 31 of
26    the following year.
27        Such quarter-annual and annual returns, as  to  form  and
28    substance,  shall  be  subject  to  the  same requirements as
29    monthly returns.
30        Notwithstanding  any  other   provision   in   this   Law
31    concerning  the  time  within which a delivering supplier may
32    file his or  her  return,  in  the  case  of  any  delivering
33    supplier  who  ceases  to  engage  in a kind of business that
34    makes him or her responsible for filing  returns  under  this
 
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 1    Law, such delivering supplier shall file a final return under
 2    this  Law  with  the Department not more than one month after
 3    discontinuing such business.
 4        Each delivering supplier whose average monthly  liability
 5    to  the  Department under this Law was $10,000 or more during
 6    the preceding calendar year, excluding the month  of  highest
 7    liability  and the month of lowest liability in such calendar
 8    year, and who is not operated by a unit of local  government,
 9    shall  make estimated payments to the Department on or before
10    the 7th, 15th, 22nd, and last day of the month  during  which
11    tax  liability to the Department is incurred in an amount not
12    less than the lower of either 22.5% of such  person's  actual
13    tax  liability  for  the month or 25% of such person's actual
14    tax liability for the same calendar month  of  the  preceding
15    year.  The  amount  of such quarter-monthly payments shall be
16    credited against the final tax  liability  of  such  person's
17    return  for  that  month. Any outstanding credit, approved by
18    the Department, arising from such person's overpayment of his
19    or her final tax liability for any month may  be  applied  to
20    reduce  the  amount of any subsequent quarter-monthly payment
21    or credited against the final tax liability of such  person's
22    return  for  any  subsequent  month.  If  any quarter-monthly
23    payment is not paid at the time or in the amount required  by
24    this  Section,  such  person  shall be liable for penalty and
25    interest on the difference between the minimum amount due  as
26    a  payment and the amount of such payment actually and timely
27    paid, except insofar  as  such  person  has  previously  made
28    payments  for  that  month to the Department in excess of the
29    minimum payments previously due.
30        The delivering supplier making the return provided for in
31    this Section shall, at the time of making such return, pay to
32    the Department the amount of tax imposed  by  this  Law.  All
33    moneys  received  by  the  Department under this Law shall be
34    paid into the General Revenue Fund in the State treasury.
 
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 1        Section 5-40. Incorporation of applicable  Sections.  The
 2    Department  shall  have  full power to administer and enforce
 3    this Law; to collect all taxes, penalties, and  interest  due
 4    hereunder;  to  dispose  of taxes, penalties, and interest so
 5    collected  in  the  manner  hereinafter  provided;   and   to
 6    determine  all  rights to credit memoranda or refunds arising
 7    on account of the  erroneous  payment  of  tax,  penalty,  or
 8    interest  hereunder. In the administration of, and compliance
 9    with, this  Section,  the  Department  and  persons  who  are
10    subject to this Section shall have the same rights, remedies,
11    privileges, immunities, powers, and duties, be subject to the
12    same  conditions,  restrictions,  limitations, penalties, and
13    definitions of terms, and employ the same modes of procedure,
14    as are prescribed in Sections  2,  4,  5,  6,  7,  9  (except
15    provisions  relating  to  transaction returns and except that
16    the due date for returns shall be the 15th day of each  month
17    for  the preceding calendar month), 10, 11, 12, 12a, 12b, 13,
18    14, 15, 18, 19, 20, 21, and 22 of the Use Tax  Act,  and  are
19    not  inconsistent  with  this  Section,  as fully as if those
20    provisions were set forth herein.

21        Section 5-45. Multistate  exemption.  To  prevent  actual
22    multi-state  taxation  of  the  privilege  that is subject to
23    taxation under this  Law,  any  purchaser,  upon  proof  that
24    purchaser  has  paid  a  tax  in another state on such event,
25    shall be allowed a credit against the  tax  imposed  by  this
26    Law,  to the extent of the amount of the tax properly due and
27    paid in the other state.

28        Section 5-50.  Exemptions. The tax imposed under this Act
29    shall not apply to:
30             (1)  Gas used by business enterprises located in  an
31        enterprise  zone  certified by the Department of Commerce
32        and  Economic  Opportunity  pursuant  to   the   Illinois
 
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 1        Enterprise Zone Act;
 2             (2)  Gas   used   by   governmental   bodies,  or  a
 3        corporation,   society,   association,   foundation,   or
 4        institution  organized  and  operated   exclusively   for
 5        charitable, religious, or educational purposes.  Such use
 6        shall  not  be  exempt  unless  the  government  body, or
 7        corporation,   society,   association,   foundation,   or
 8        institution  organized  and  operated   exclusively   for
 9        charitable,  religious, or educational purposes has first
10        been issued a tax exemption identification number by  the
11        Department  of  Revenue  pursuant  to  Section  1g of the
12        Retailers'  Occupation  Tax  Act.  A  limited   liability
13        company  may qualify for the exemption under this Section
14        only if the limited liability company  is  organized  and
15        operated  exclusively  for educational purposes. The term
16        "educational purposes" shall have  the  same  meaning  as
17        that set forth in Section 2h of the Retailers' Occupation
18        Tax Act;
19             (3)  Gas  used in the production of electric energy.
20        This exemption does not include gas used in  the  general
21        maintenance  or  heating of an electric energy production
22        facility or other structure;
23             (4)  Gas used in a petroleum refinery operation;
24             (5)  Gas   purchased   by   persons   for   use   in
25        liquefaction and  fractionation  processes  that  produce
26        value added natural gas byproducts for resale;
27             (6)  Gas used in the production of anhydrous ammonia
28        and downstream nitrogen fertilizer products for resale.
29        The   Department   may   adopt  rules  to  implement  the
30    provisions of this Section.

31        Section 5-905.  The Gas Revenue Tax  Act  is  amended  by
32    changing Sections 1 and 2 as follows:
 
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 1        (35 ILCS 615/1) (from Ch. 120, par. 467.16)
 2        Sec.  1.   For the purposes of this Act: "Gross receipts"
 3    means  the  consideration  received  for   gas   distributed,
 4    supplied, furnished or sold to persons for use or consumption
 5    and  not  for  resale,  and  for  all services (including the
 6    transportation or storage of gas for an end-user) rendered in
 7    connection therewith, and shall include  cash,  services  and
 8    property  of  every  kind  or nature, and shall be determined
 9    without any deduction on account of the cost of the  service,
10    product  or  commodity  supplied, the cost of materials used,
11    labor or service costs,  or  any  other  expense  whatsoever.
12    However, "gross receipts" shall not include receipts from:
13             (i)  any  minimum  or  other  charge  for gas or gas
14        service where the customer has taken no therms of gas;
15             (ii)  any charge for a dishonored check;
16             (iii)  any finance  or  credit  charge,  penalty  or
17        charge  for  delayed  payment,  or  discount  for  prompt
18        payment;
19             (iv)  any  charge for reconnection of service or for
20        replacement or relocation of facilities;
21             (v)  any  advance  or   contribution   in   aid   of
22        construction;
23             (vi)  repair,  inspection  or servicing of equipment
24        located on customer premises;
25             (vii)  leasing or rental of equipment,  the  leasing
26        or  rental  of  which  is  not necessary to distributing,
27        furnishing, supplying, selling, transporting  or  storing
28        gas;
29             (viii)  any  sale  to  a customer if the taxpayer is
30        prohibited by  federal  or  State  constitution,  treaty,
31        convention, statute or court decision from recovering the
32        related tax liability from such customer;
33             (ix)  any charges added to customers' bills pursuant
34        to  the  provisions  of Section 9-221 or Section 9-222 of
 
SB1733 Enrolled            -14-      LRB093 03177 JLS 03194 b
 1        the Public Utilities Act,  as  amended,  or  any  charges
 2        added  to  customers'  bills  by  taxpayers  who  are not
 3        subject to  rate  regulation  by  the  Illinois  Commerce
 4        Commission  for  the purpose of recovering any of the tax
 5        liabilities or other amounts specified in such provisions
 6        of such Act; and
 7             (x)  prior to October 1, 2003, any charge for gas or
 8        gas services  to  a  customer  who  acquired  contractual
 9        rights  for  the  direct  purchase of gas or gas services
10        originating from an out-of-state supplier or source on or
11        before March 1, 1995, except  for  those  charges  solely
12        related  to  the  local  distribution  of gas by a public
13        utility.  This exemption includes any charge for  gas  or
14        gas  service,  except for those charges solely related to
15        the local distribution of gas by a public utility,  to  a
16        customer  who maintained an account with a public utility
17        (as defined in Section 3-105 of the Public Utilities Act)
18        for the transportation of customer-owned gas on or before
19        March 1, 1995.  The provisions of this amendatory Act  of
20        1997   are  intended  to  clarify,  rather  than  change,
21        existing  law  as  to  the  meaning  and  scope  of  this
22        exemption.  This exemption (x) expires on  September  30,
23        2003.
24        In  case  credit is extended, the amount thereof shall be
25    included only as and when payments are received.
26        "Gross receipts" shall not include consideration received
27    from business enterprises certified under Section 9-222.1  of
28    the  Public  Utilities Act, as amended, to the extent of such
29    exemption and during the period  of  time  specified  by  the
30    Department of Commerce and Community Affairs.
31        "Department" means the Department of Revenue of the State
32    of Illinois.
33        "Director"   means   the  Director  of  Revenue  for  the
34    Department of Revenue of the State of Illinois.
 
SB1733 Enrolled            -15-      LRB093 03177 JLS 03194 b
 1        "Taxpayer" means a person  engaged  in  the  business  of
 2    distributing, supplying, furnishing or selling gas for use or
 3    consumption and not for resale.
 4        "Person"  means  any  natural  individual,  firm,  trust,
 5    estate,  partnership, association, joint stock company, joint
 6    adventure,  corporation,  limited  liability  company,  or  a
 7    receiver, trustee, guardian or other representative appointed
 8    by order of any court, or any city,  town,  county  or  other
 9    political subdivision of this State.
10        "Invested  capital"  means  that  amount equal to (i) the
11    average of the balances at the  beginning  and  end  of  each
12    taxable  period  of the taxpayer's total stockholder's equity
13    and total long-term debt, less investments in and advances to
14    all corporations, as set forth on the balance sheets included
15    in the taxpayer's annual  report  to  the  Illinois  Commerce
16    Commission  for  the  taxable  period;  (ii)  multiplied by a
17    fraction determined under Sections  301  and  304(a)  of  the
18    "Illinois Income Tax Act" and reported on the Illinois income
19    tax  return  for  the  taxable  period  ending in or with the
20    taxable period  in  question.  However,  notwithstanding  the
21    income   tax   return  reporting  requirement  stated  above,
22    beginning July 1, 1979, no taxpayer's  denominators  used  to
23    compute   the   sales,  property  or  payroll  factors  under
24    subsection (a) of Section 304 of the Illinois Income Tax  Act
25    shall  include  payroll,  property  or sales of any corporate
26    entity  other  than  the  taxpayer  for   the   purposes   of
27    determining  an allocation for the invested capital tax. This
28    amendatory Act of 1982, Public Act 82-1024, is  not  intended
29    to  and  does  not  make  any  change  in  the meaning of any
30    provision of this Act, it  having  been  the  intent  of  the
31    General  Assembly  in  initially  enacting  the definition of
32    "invested  capital"  to  provide  for  apportionment  of  the
33    invested capital of  each  company,  based  solely  upon  the
34    sales, property and payroll of that company.
 
SB1733 Enrolled            -16-      LRB093 03177 JLS 03194 b
 1        "Taxable  period"  means each period which ends after the
 2    effective date of this Act and which is covered by an  annual
 3    report  filed  by  the  taxpayer  with  the Illinois Commerce
 4    Commission.
 5    (Source: P.A. 89-417, eff. 1-1-96; 90-16, eff. 6-16-97.)

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

32        Section 5-999.  Effective date.  This Act takes effect on
 
SB1733 Enrolled            -17-      LRB093 03177 JLS 03194 b
 1    October 1, 2003.