Rep. Michael J. Zalewski

Filed: 3/27/2019





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2    AMENDMENT NO. ______. Amend House Bill 826 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Municipal Code is amended by
5adding Section 8-11-2.7 as follows:
6    (65 ILCS 5/8-11-2.7 new)
7    Sec. 8-11-2.7. Non-Home Rule Municipal Gas Use Tax.
8    (a) This Section may be cited as the Non-Home Rule
9Municipal Gas Use Tax Law.
10    (b) As used in this Section:
11    "Delivering supplier" means a person engaged in the
12business of delivering gas to another person for use or
13consumption and not for resale, and who, in any case where more
14than one person participates in the delivery of gas to a
15specific purchaser, is the last of the suppliers engaged in
16delivering the gas prior to its receipt by the purchaser.



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1    "Delivering supplier maintaining a place of business in
2this State" means any delivering supplier having or maintaining
3within this State, directly or by a subsidiary, an office,
4distribution facility, sales office, or other place of
5business, or any employee, agent, or other representative
6operating within this State under the authority of the
7delivering supplier or the delivering supplier's subsidiary,
8irrespective of whether the place of business or agent or other
9representative is located in this State permanently or
10temporarily, or whether the delivering supplier or the
11delivering supplier's subsidiary is licensed to do business in
12this State.
13    "Gas" means any gaseous fuel distributed through a pipeline
15    "Person" means any natural individual, firm, trust,
16estate, partnership, association, joint stock company, joint
17adventure, corporation, or limited liability company, any
18receiver, trustee, guardian, or other representative appointed
19by order of any court, or any city, town, county, or other
20political subdivision of this State.
21    "Purchase of out-of-state gas" means a transaction for the
22purchase of gas from any supplier in a manner that does not
23subject the seller of that gas to liability for a tax imposed
24under paragraph 2 of Section 8-11-2 of the Illinois Municipal
26    "Purchase price" means the consideration paid for the



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1distribution, supply, furnishing, sale, transportation, or
2delivery of gas to a person for use or consumption and not for
3resale, and for all services directly related to the
4production, transportation, or distribution of gas
5distributed, supplied, furnished, sold, transmitted, or
6delivered for use or consumption, including cash, services, and
7property of every kind and nature. "Purchase price" does not
8include consideration paid for:
9        (1) a charge for a dishonored check;
10        (2) a finance or credit charge, penalty, charge for
11    delayed payment, or discount for prompt payment;
12        (3) a charge for reconnection of service or for
13    replacement or relocation of facilities;
14        (4) an advance or contribution in aid of construction;
15        (5) repair, inspection, or servicing of equipment
16    located on customer premises;
17        (6) leasing or rental of equipment, the leasing or
18    rental of which is not necessary to furnishing, supplying,
19    or selling gas;
20        (7) a purchase by a purchaser if the supplier is
21    prohibited by a federal or State constitution, treaty,
22    convention, statute, or court decision from recovering the
23    related tax liability from such purchaser; or
24        (8) an amount added to a purchaser's bill because of
25    changes made pursuant to the tax imposed by the
26    municipality.



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1    (c) The privilege of using or consuming gas acquired in a
2purchase at retail and used or consumed within the corporate
3limits of a non-home rule municipality may be taxed at rates
4not to exceed the maximum rates, calculated on a monthly basis
5for each purchaser, as provided in this Section.
6    (d) Beginning January 1, 2020, a non-home rule municipality
7may impose upon the privilege of using in the municipality gas
8obtained in a purchase of out-of-state gas at the rate per
9therm established by the non-home rule municipality or 5% of
10the purchase price for the billing period, whichever is the
11lower rate. This tax rate is the self-assessing purchaser tax
12rate. Beginning with bills issued by delivering suppliers on
13and after January 1, 2020 to purchasers within a municipality
14imposing a tax pursuant to this Section, purchasers may elect
15an alternate tax rate per therm established by the non-home
16rule municipality to be paid under the provisions of subsection
17(e) to a delivering supplier maintaining a place of business in
18this State. The non-home rule municipality shall establish this
19alternate tax rate, not less than annually, a rate per therm
20that would not exceed a tax imposed at the rate of 5% of the
21gross receipts for the purchase price for the billing period.
22    (e) Beginning with bills issued on and after January 1,
232020, a delivering supplier maintaining a place of business in
24this State shall collect from the purchasers within a
25municipality imposing a tax pursuant to this Section who have
26elected the alternate tax rate provided in subsection (d) the



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1tax that is imposed by the municipality at the alternate tax
2rate. The tax imposed at the alternate tax rate shall, when
3collected, be stated as a distinct and separate item apart from
4the selling price of the gas. The tax collected by a delivering
5supplier shall constitute a debt owed by that person to the
6municipality imposing the tax. Upon receipt by a delivering
7supplier of a copy of a certificate of registration issued to a
8self-assessing purchaser under subsection (f), the delivering
9supplier is relieved of the duty to collect the alternate tax
10from that self-assessing purchaser beginning with bills issued
11to that self-assessing purchaser 30 or more days after receipt
12of the copy of that certificate of registration.
13    (f) Any purchaser who does not elect the alternate tax rate
14to be paid to a delivering supplier shall register with the
15municipality imposing the tax as a self-assessing purchaser and
16pay the tax imposed directly to the municipality imposing the
17tax at the self-assessing purchaser rate.
18    Application for a certificate of registration as a
19self-assessing purchaser shall be made to the municipality
20imposing the tax on forms furnished by the municipality and
21shall contain any reasonable information that the municipality
22requires. The self-assessing purchaser shall disclose the name
23of the delivering supplier or suppliers who are delivering the
24gas upon which the self-assessing purchaser will be paying tax
25to the municipality imposing the tax.
26    Upon receipt of an application for a certificate of



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1registration in proper form, the municipality imposing the tax
2shall issue to the applicant a certificate of registration as a
3self-assessing purchaser. The applicant shall provide a copy of
4the certificate of registration as a self-assessing purchaser
5to the applicant's delivering supplier or suppliers. A
6purchaser registering as a self-assessing purchaser may not
7revoke the registration for at least one year after
9    (g) Except for purchasers who have chosen the alternate tax
10rate to be paid to a delivering supplier maintaining a place of
11business in this State, the tax imposed by the municipality
12pursuant to subsection (d) shall be paid to the municipality
13imposing the tax directly by each self-assessing purchaser that
14is subject to the tax imposed by the municipality. Each
15self-assessing purchaser shall, on or before the 15th day of
16each month, make a return to the municipality imposing the tax
17for the preceding calendar month, stating the following:
18        (1) the self-assessing purchaser's name and principal
19    address;
20        (2) the total number of therms used by the
21    self-assessing purchaser during the preceding calendar
22    month and upon the basis of which the tax is imposed;
23        (3) the purchase price of gas used by the
24    self-assessing purchaser during the preceding calendar
25    month and upon the basis of which the tax is imposed;
26        (4) amount of tax (computed upon items (2) and (3));



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1    and
2        (5) any other reasonable information the municipality
3    imposing the tax may require.
4    (h) A delivering supplier maintaining a place of business
5in this State who engages in the delivery of gas to customers
6within a municipality imposing the tax in this State shall
7register with the municipality imposing the tax. A delivering
8supplier, if required to otherwise register pursuant to a tax
9imposed under Section 8-11-2 of this Code, need not obtain an
10additional certificate of registration under this Section, but
11shall be deemed to be sufficiently registered by virtue of that
12registration with the municipality imposing the tax.
13    Application for a certificate of registration shall be made
14to the municipality imposing the tax on forms furnished by the
15municipality and shall contain any reasonable information the
16municipality may require. Upon receipt of a completed
17application for a certificate of registration, the
18municipality imposing the tax shall issue to the applicant a
19certificate of registration. The municipality imposing the tax
20may deny a certificate of registration to any applicant if the
21applicant is in default for moneys due under this Section. A
22person aggrieved by a decision of the municipality imposing the
23tax under this subsection may, within 20 days after notice of
24the decision, protest and request a hearing, whereupon the
25municipality imposing the tax shall give notice to the person
26of the time and place fixed for the hearing, shall hold a



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1hearing in conformity with the provisions of this Section, and
2then issue its final administrative decision in the matter to
3the person. In the absence of a protest within 20 days, the
4municipality's decision shall become final without any further
5determination being made or notice given.
6    (i) A delivering supplier who is required under subsection
7(e) to collect the tax imposed by the municipality shall make a
8return to the municipality imposing the tax on or before the
915th day of each month for the preceding calendar month stating
10the following:
11        (1) the delivering supplier's name;
12        (2) the address of the delivering supplier's principal
13    place of business and the address of the principal place of
14    business (if that is a different address) from which the
15    delivering supplier engages in the business of delivering
16    gas to persons for use or consumption and not for resale;
17        (3) the total number of therms of gas delivered to
18    purchasers within a municipality imposing a tax pursuant to
19    this Section during the preceding calendar month and upon
20    the basis of which the tax is imposed;
21        (4) the amount of tax computed upon item (3); and
22        (5) any other reasonable information as the
23    municipality imposing the tax may require.
24    In making the return, the delivering supplier engaged in
25the business of delivering gas to persons for use or
26consumption and not for resale may use any reasonable method to



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1derive reportable therms from the delivering supplier's
2billing and payment records.
3    Notwithstanding any other provision in this Section
4concerning the time within which a delivering supplier may file
5its return, in the case of a delivering supplier who ceases to
6engage in a kind of business that makes it responsible for
7filing returns with a municipality imposing a tax under this
8Section, the delivering supplier shall file a final return
9under this Section with the affected municipality not more than
10one month after discontinuing a kind of business that makes it
11responsible for filing returns with a municipality.
12    The delivering supplier making the return provided for in
13this Section shall, at the time of making the return, pay to
14the municipality the amount of tax imposed by the municipality.
15    Section 10. The Public Utilities Act is amended by changing
16Section 9-221 as follows:
17    (220 ILCS 5/9-221)  (from Ch. 111 2/3, par. 9-221)
18    Sec. 9-221. Whenever a municipality pursuant to Section
198-11-2 or 8-11-2.7 of the Illinois Municipal Code, as
20heretofore and hereafter amended, imposes a tax on any public
21utility, such utility may charge its customers, other than
22customers who are certified business enterprises under
23paragraph (e) of Section 8-11-2 of the Illinois Municipal Code
24or are exempted from those taxes under paragraph (f) of that



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1Section, to the extent of such exemption and during the period
2in which such exemption is in effect, in addition to any rate
3authorized by this Act, an additional charge equal to the sum
4of (1) an amount equal to such municipal tax, or any part
5thereof (2) 3% of such tax, or any part thereof, as the case
6may be, to cover costs of accounting, and (3) an amount equal
7to the increase in taxes and other payments to governmental
8bodies resulting from the amount of such additional charge.
9Such utility shall file with the Commission a true and correct
10copy of the municipal ordinance imposing such tax; and also
11shall file with the Commission a supplemental schedule
12applicable to such municipality which shall specify such
13additional charge and which shall become effective upon filing
14without further notice. Such additional charge shall be shown
15separately on the utility bill to each customer. The Commission
16shall have power to investigate whether or not such
17supplemental schedule correctly specifies such additional
18charge, but shall have no power to suspend such supplemental
19schedule. If the Commission finds, after a hearing, that such
20supplemental schedule does not correctly specify such
21additional charge, it shall by order require a refund to the
22appropriate customers of the excess, if any, with interest, in
23such manner as it shall deem just and reasonable, and in and by
24such order shall require the utility to file an amended
25supplemental schedule corresponding to the finding and order of
26the Commission.



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1(Source: P.A. 87-895; 88-132.)
2    Section 99. Effective date. This Act takes effect January
31, 2020.".