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91_SB0334sam001
LRB9102941SMdvam01
1 AMENDMENT TO SENATE BILL 334
2 AMENDMENT NO. . Amend Senate Bill 334 by replacing
3 the title with the following:
4 "AN ACT regarding electricity excise taxes."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Illinois Enterprise Zone Act is amended
8 by changing Section 5.5 as follows:
9 (20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
10 Sec. 5.5. High Impact Business.
11 (a) In order to respond to unique opportunities to
12 assist in the encouragement, development, growth and
13 expansion of the private sector through large scale
14 investment and development projects, the Department is
15 authorized to receive and approve applications for the
16 designation of "High Impact Businesses" in Illinois subject
17 to the following conditions:
18 (1) such applications may be submitted at any time
19 during the year;
20 (2) such business is not located, at the time of
21 designation, in an enterprise zone designated pursuant to
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1 this Act;
2 (3) the business intends to make a minimum
3 investment of $12,000,000 which will be placed in service
4 in qualified property and intends to create 500 full-time
5 equivalent jobs at a designated location in Illinois or
6 intends to make a minimum investment of $30,000,000 which
7 will be placed in service in qualified property and
8 intends to retain 1,500 full-time jobs at a designated
9 location in Illinois. The business must certify in
10 writing that the investments would not be placed in
11 service in qualified property and the job creation or job
12 retention would not occur without the tax credits and
13 exemptions set forth in subsection (b) of this Section.
14 The terms "placed in service" and "qualified property"
15 have the same meanings as described in subsection (h) of
16 Section 201 of the Illinois Income Tax Act; and
17 (4) no later than 90 days after an application is
18 submitted, the Department shall notify the applicant of
19 the Department's determination of the qualification of
20 the proposed High Impact Business under this Section.
21 (b) Businesses designated as High Impact Businesses
22 pursuant to this Section shall qualify for the credits and
23 exemptions described in the following Acts: Section 9-222 and
24 9-222.1A of The Public Utilities Act, subsection (h) of
25 Section 201 of the Illinois Income Tax Act; and, Section 1d
26 of the Retailers' Occupation Tax Act, provided that these
27 credits and exemptions described in these Acts shall not be
28 authorized until the minimum investments set forth in
29 subsection (a) of this Section have been placed in service in
30 qualified properties and, in the case of the exemptions
31 described in the Public Utilities Act and Section 1d of the
32 Retailers' Occupation Tax Act, the minimum full-time
33 equivalent jobs or full-time jobs set forth in subsection (a)
34 of this Section have been created or retained. Businesses
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1 designated as High Impact Businesses under this Section shall
2 also qualify for the exemption described in Section 5l of the
3 Retailers' Occupation Tax Act. The credit provided in
4 subsection (h) of Section 201 of the Illinois Income Tax Act
5 shall be applicable to investments in qualified property as
6 set forth in subsection (a) of this Section.
7 (c) High Impact Businesses located in federally
8 designated foreign trade zones or sub-zones are also eligible
9 for additional credits, exemptions and deductions as
10 described in the following Acts: Section 9-221 of the Public
11 Utilities Act; and subsection (g) of Section 201, and Section
12 203 of the Illinois Income Tax Act.
13 (d) Existing Illinois businesses which apply for
14 designation as a High Impact Business must provide the
15 Department with the prospective plan for which 1,500
16 full-time jobs would be eliminated in the event that the
17 business is not designated.
18 (e) New proposed facilities which apply for designation
19 as High Impact Business must provide the Department with
20 proof of alternative non-Illinois sites which would receive
21 the proposed investment and job creation in the event that
22 the business is not designated as a High Impact Business.
23 (f) In the event that a business is designated a High
24 Impact Business and it is later determined after reasonable
25 notice and an opportunity for a hearing as provided under The
26 Illinois Administrative Procedure Act, that the business
27 would have placed in service in qualified property the
28 investments and created or retained the requisite number of
29 jobs without the benefits of the High Impact Business
30 designation, the Department shall be required to immediately
31 revoke the designation and notify the Director of the
32 Department of Revenue who shall begin proceedings to recover
33 all wrongfully exempted State taxes with interest. The
34 business shall also be ineligible for all State funded
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1 Department programs for a period of 10 years.
2 (g) The Department shall revoke a High Impact Business
3 designation if the participating business fails to comply
4 with the terms and conditions of the designation.
5 (h) Prior to designating a business, the Department
6 shall provide the members of the General Assembly and
7 Illinois Economic and Fiscal Commission with a report setting
8 forth the terms and conditions of the designation and
9 guarantees that have been received by the Department in
10 relation to the proposed business being designated.
11 (Source: P.A. 89-89, eff. 6-30-95.)
12 Section 10. The Electricity Excise Tax Law is amended by
13 changing Sections 2-3 and 2-4 as follows:
14 (35 ILCS 640/2-3)
15 Sec. 2-3. Definitions. As used in this Law, unless the
16 context clearly requires otherwise:
17 (a) "Department" means the Department of Revenue of the
18 State of Illinois.
19 (b) "Director" means the Director of the Department of
20 Revenue of the State of Illinois.
21 (c) "Person" means any natural individual, firm, trust,
22 estate, partnership, association, joint stock company, joint
23 venture, corporation, limited liability company, or a
24 receiver, trustee, guardian, or other representative
25 appointed by order of any court, or any city, town, village,
26 county, or other political subdivision of this State.
27 (d) "Purchase price" means the consideration paid for
28 the distribution, supply, furnishing, sale, transmission or
29 delivery of electricity to a person for non-residential use
30 or consumption (and for both residential and non-residential
31 use or consumption in the case of electricity purchased from
32 a municipal system or electric cooperative described in
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1 subsection (b) of Section 2-4) and not for resale, and for
2 all services directly related to the production, transmission
3 or distribution of electricity distributed, supplied,
4 furnished, sold, transmitted or delivered for non-residential
5 use or consumption, and includes transition charges imposed
6 in accordance with Article XVI of the Public Utilities Act
7 and instrument funding charges imposed in accordance with
8 Article XVIII of the Public Utilities Act, as well as cash,
9 services and property of every kind or nature, and shall be
10 determined without any deduction on account of the cost of
11 the service, product or commodity supplied, the cost of
12 materials used, labor or service costs, or any other expense
13 whatsoever. However, "purchase price" shall not include
14 consideration paid for:
15 (i) any charge for a dishonored check;
16 (ii) any finance or credit charge, penalty or
17 charge for delayed payment, or discount for prompt
18 payment;
19 (iii) any charge for reconnection of service or for
20 replacement or relocation of facilities;
21 (iv) any advance or contribution in aid of
22 construction;
23 (v) repair, inspection or servicing of equipment
24 located on customer premises;
25 (vi) leasing or rental of equipment, the leasing or
26 rental of which is not necessary to furnishing, supplying
27 or selling electricity;
28 (vii) any purchase by a purchaser if the supplier
29 is prohibited by federal or State constitution, treaty,
30 convention, statute or court decision from recovering the
31 related tax liability from such purchaser; and
32 (viii) any amounts added to purchasers' bills
33 because of charges made pursuant to the tax imposed by
34 this Law.
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1 In case credit is extended, the amount thereof shall be
2 included only as and when payments are made.
3 "Purchase price" shall not include consideration received
4 from business enterprises certified under Section 9-222.1 or
5 9-222.1A of the Public Utilities Act, as amended, to the
6 extent of such exemption and during the period of time
7 specified by the Department of Commerce and Community
8 Affairs.
9 (e) "Purchaser" means any person who acquires
10 electricity for use or consumption and not for resale, for a
11 valuable consideration.
12 (f) "Non-residential electric use" means any use or
13 consumption of electricity which is not residential electric
14 use.
15 (g) "Residential electric use" means electricity used or
16 consumed at a dwelling of 2 or fewer units, or electricity
17 for household purposes used or consumed at a building with
18 multiple dwelling units where the electricity is registered
19 by a separate meter for each dwelling unit.
20 (h) "Self-assessing purchaser" means a purchaser for
21 non-residential electric use who elects to register with and
22 to pay tax directly to the Department in accordance with
23 Sections 2-10 and 2-11 of this Law.
24 (i) "Delivering supplier" means any person engaged in
25 the business of delivering electricity to persons for use or
26 consumption and not for resale and who, in any case where
27 more than one person participates in the delivery of
28 electricity to a specific purchaser, is the last of the
29 suppliers engaged in delivering the electricity prior to its
30 receipt by the purchaser.
31 (j) "Delivering supplier maintaining a place of business
32 in this State", or any like term, means any delivering
33 supplier having or maintaining within this State, directly or
34 by a subsidiary, an office, generation facility, transmission
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1 facility, distribution facility, sales office or other place
2 of business, or any employee, agent or other representative
3 operating within this State under the authority of such
4 delivering supplier or such delivering supplier's subsidiary,
5 irrespective of whether such place of business or agent or
6 other representative is located in this State permanently or
7 temporarily, or whether such delivering supplier or such
8 delivering supplier's subsidiary is licensed to do business
9 in this State.
10 (k) "Use" means the exercise by any person of any right
11 or power over electricity incident to the ownership of that
12 electricity, except that it does not include the generation,
13 production, transmission, distribution, delivery or sale of
14 electricity in the regular course of business or the use of
15 electricity for such purposes.
16 (Source: P.A. 90-561, eff. 8-1-98.)
17 (35 ILCS 640/2-4)
18 Sec. 2-4. Tax imposed.
19 (a) Except as provided in subsection (b), a tax is
20 imposed on the privilege of using in this State electricity
21 purchased for use or consumption and not for resale, other
22 than by municipal corporations owning and operating a local
23 transportation system for public service, at the following
24 rates per kilowatt-hour delivered to the purchaser:
25 (i) For the first 2000 kilowatt-hours used or
26 consumed in a month: 0.330 cents per kilowatt-hour;
27 (ii) For the next 48,000 kilowatt-hours used or
28 consumed in a month: 0.319 cents per kilowatt-hour;
29 (iii) For the next 50,000 kilowatt-hours used or
30 consumed in a month: 0.303 cents per kilowatt-hour;
31 (iv) For the next 400,000 kilowatt-hours used or
32 consumed in a month: 0.297 cents per kilowatt-hour;
33 (v) For the next 500,000 kilowatt-hours used or
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1 consumed in a month: 0.286 cents per kilowatt-hour;
2 (vi) For the next 2,000,000 kilowatt-hours used or
3 consumed in a month: 0.270 cents per kilowatt-hour;
4 (vii) For the next 2,000,000 kilowatt-hours used or
5 consumed in a month: 0.254 cents per kilowatt-hour;
6 (viii) For the next 5,000,000 kilowatt-hours used
7 or consumed in a month: 0.233 cents per kilowatt-hour;
8 (ix) For the next 10,000,000 kilowatt-hours used or
9 consumed in a month: 0.207 cents per kilowatt-hour;
10 (x) For all electricity in excess of 20,000,000
11 kilowatt-hours used or consumed in a month: 0.202 cents
12 per kilowatt-hour.
13 Provided, that in lieu of the foregoing rates, the tax is
14 imposed on a self-assessing purchaser at the rate of 5.1% of
15 the self-assessing purchaser's purchase price for all
16 electricity distributed, supplied, furnished, sold,
17 transmitted and delivered to the self-assessing purchaser in
18 a month.
19 (b) A tax is imposed on the privilege of using in this
20 State electricity purchased from a municipal system or
21 electric cooperative, as defined in Article XVII of the
22 Public Utilities Act, which has not made an election as
23 permitted by either Section 17-200 or Section 17-300 of such
24 Act, at the lesser of 0.32 cents per kilowatt hour of all
25 electricity distributed, supplied, furnished, sold,
26 transmitted, and delivered by such municipal system or
27 electric cooperative to the purchaser or 5% of each such
28 purchaser's purchase price for all electricity distributed,
29 supplied, furnished, sold, transmitted, and delivered by such
30 municipal system or electric cooperative to the purchaser,
31 whichever is the lower rate as applied to each purchaser in
32 each billing period.
33 (c) The tax imposed by this Section 2-4 is not imposed
34 with respect to any use of electricity by business
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1 enterprises certified under Section 9-222.1 or 9-222.1A of
2 the Public Utilities Act, as amended, to the extent of such
3 exemption and during the time specified by the Department of
4 Commerce and Community Affairs; or with respect to any
5 transaction in interstate commerce, or otherwise, to the
6 extent to which such transaction may not, under the
7 Constitution and statutes of the United States, be made the
8 subject of taxation by this State.
9 (Source: P.A. 90-561, eff. 8-1-98.)
10 Section 15. The Public Utilities Act is amended by
11 changing Section 9-222 and adding Section 9-222.1A as
12 follows:
13 (220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
14 Sec. 9-222. Whenever a tax is imposed upon a public
15 utility engaged in the business of distributing, supplying,
16 furnishing, or selling gas for use or consumption pursuant to
17 Section 2 of the Gas Revenue Tax Act, or whenever a tax is
18 required to be collected by a delivering supplier pursuant to
19 Section 2-7 of the Electricity Excise Tax Act imposed upon a
20 public utility in the business of distributing, supplying,
21 furnishing or selling electricity for use or consumption
22 pursuant to Section 2 of The Public Utilities Revenue Act, or
23 whenever a tax is imposed upon a public utility pursuant to
24 Section 2-202 of this Act, such utility may charge its
25 customers, other than customers who are high impact
26 businesses under Section 5.5 of the Illinois Enterprise Zone
27 Act, or certified business enterprises under Section 9-222.1
28 of this Act, to the extent of such exemption and during the
29 period in which such exemption is in effect, in addition to
30 any rate authorized by this Act, an additional charge equal
31 to the total amount of such taxes. The exemption of this
32 Section relating to high impact businesses shall be subject
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1 to the provisions of subsections (a) and (b) of Section 5.5
2 of the Illinois Enterprise Zone Act. This requirement shall
3 not apply to taxes on invested capital imposed pursuant to
4 the Messages Tax Act, the Gas Revenue Tax Act and the Public
5 Utilities Revenue Act. Such utility shall file with the
6 Commission a supplemental schedule which shall specify such
7 additional charge and which shall become effective upon
8 filing without further notice. Such additional charge shall
9 be shown separately on the utility bill to each customer.
10 The Commission shall have the power to investigate whether or
11 not such supplemental schedule correctly specifies such
12 additional charge, but shall have no power to suspend such
13 supplemental schedule. If the Commission finds, after a
14 hearing, that such supplemental schedule does not correctly
15 specify such additional charge, it shall by order require a
16 refund to the appropriate customers of the excess, if any,
17 with interest, in such manner as it shall deem just and
18 reasonable, and in and by such order shall require the
19 utility to file an amended supplemental schedule
20 corresponding to the finding and order of the Commission.
21 Except with respect to taxes imposed on invested capital,
22 such tax liabilities shall be recovered from customers solely
23 by means of the additional charges authorized by this
24 Section.
25 (Source: P.A. 85-1182.)
26 (220 ILCS 5/9-222.1A new)
27 Sec. 9-222.1A. High impact business. Beginning on August
28 1, 1998 and thereafter, a business enterprise that is
29 certified as a High Impact Business by the Department of
30 Commerce and Community Affairs is exempt from the tax
31 imposed by Section 2-4 of the Electricity Excise Tax Law, if
32 the High Impact Business is registered to self-assess that
33 tax, and is exempt from any additional charges added to the
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1 business enterprise's utility bills as a pass-on of State
2 utility taxes under Section 9-222 of this Act, to the extent
3 the tax or charges are exempted by the percentage specified
4 by the Department of Commerce and Community Affairs for
5 State utility taxes, provided the business enterprise meets
6 the following criteria:
7 (1) it intends either (i) to make a minimum
8 eligible investment of $12,000,000 that will be placed in
9 service in qualified property in Illinois and is intended
10 to create at least 500 full-time equivalent jobs at a
11 designated location in Illinois; or (ii) to make a
12 minimum eligible investment of $30,000,000 that will be
13 placed in service in qualified property in Illinois and
14 is intended to retain at least 1,500 full-time equivalent
15 jobs at a designated location in Illinois;
16 (2) it is designated as a High Impact Business by
17 the Department of Commerce and Community Affairs; and
18 (3) it is certified by the Department of Commerce
19 and Community Affairs as complying with the requirements
20 specified in clauses (1) and (2) of this Section.
21 The Department of Commerce and Community Affairs shall
22 determine the period during which the exemption from the
23 Electricity Excise Tax Law and the charges imposed under
24 Section 9-222 are in effect, which shall not exceed 20 years,
25 and shall specify the percentage of the exemption from those
26 taxes.
27 The Department of Commerce and Community Affairs is
28 authorized to promulgate rules and regulations to carry out
29 the provisions of this Section, including procedures for
30 complying with the requirements specified in clauses (1)
31 and (2) of this Section and procedures for applying for the
32 exemptions authorized under this Section; to define the
33 amounts and types of eligible investments that business
34 enterprises must make in order to receive State utility tax
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1 exemptions pursuant to Sections 9-222 and this Section; to
2 approve such utility tax exemptions for business enterprises
3 whose investments are not yet placed in service; and to
4 require that business enterprises granted tax exemptions
5 repay the exempted tax if the business enterprise fails to
6 comply with the terms and conditions of the certification.
7 Upon certification of the business enterprises by the
8 Department of Commerce and Community Affairs, the Department
9 of Commerce and Community Affairs shall notify the Department
10 of Revenue of the certification. The Department of Revenue
11 shall notify the public utilities of the exemption status of
12 business enterprises from the pass-on charges of State
13 utility taxes. The exemption status shall take effect within
14 3 months after certification of the business enterprise.
15 Section 99. Effective date. This Act takes effect upon
16 becoming law.".