093_SB1733ham004

 










                                     LRB093 03177 RCE 17315 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 17315 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        "Person"  means  any  natural  individual,  firm,  trust,
15    estate,  partnership, association, joint stock company, joint
16    adventure,  corporation,  limited  liability  company,  or  a
17    receiver,  trustee,   guardian,   or   other   representative
18    appointed  by  order of any court, or any city, town, county,
19    or other political subdivision of this State.
20        "Purchase of out-of-State gas" means  a  transaction  for
21    the  purchase  of gas from any supplier in a manner that does
22    not subject the seller of that gas to liability under the Gas
23    Revenue Tax Act.
24        "Purchase price" means the  consideration  paid  for  the
25    distribution,  supply,  furnishing,  sale, transportation, or
26    delivery of gas to a person for use or  consumption  and  not
27    for  resale,  and  for  all  services directly related to the
28    production,   transportation,   or   distribution   of    gas
29    distributed,   supplied,  furnished,  sold,  transmitted,  or
30    delivered for use or consumption, including  cash,  services,
31    and  property  of  every kind and nature.  However, "purchase
32    price" shall not include consideration paid for:
33             (i) Any charge for a dishonored check.
34             (ii) Any finance or credit charge,  penalty,  charge
 
                            -3-      LRB093 03177 RCE 17315 a
 1        for delayed payment, or discount for prompt payment.
 2             (iii)  Any charge for reconnection of service or for
 3        replacement or relocation of facilities.
 4             (iv)  Any  advance  or  contribution   in   aid   of
 5        construction.
 6             (v)  Repair,  inspection,  or servicing of equipment
 7        located on customer premises.
 8             (vi) Leasing or rental of equipment, the leasing  or
 9        rental   of   which   is  not  necessary  to  furnishing,
10        supplying, or selling gas.
11             (vii) Any purchase by a purchaser if the    supplier
12        is  prohibited  by federal or State constitution, treaty,
13        convention, statute, or court  decision  from  recovering
14        the related tax liability from such purchaser.
15             (viii)   Any  amounts  added  to  purchasers'  bills
16        because of changes made pursuant to the  tax  imposed  by
17        this Law.
18    In  case  credit  is  extended,  the  amount thereof shall be
19    included only as and when payments are received.
20        "Purchaser" means any person who acquires  the  ownership
21    of  gas  for  use  or  consumption, and not for resale, for a
22    valuable consideration.
23        "Self-assessing purchaser" means a purchaser of  gas  for
24    use or consumption that is required to be registered with the
25    Department  and  is responsible for filing returns and paying
26    the tax imposed under this Law directly to the Department.
27        "Use" means the exercise by any person of  any  right  or
28    power  over gas incident to the ownership of that gas, except
29    that it does not include the  sale  of  gas  in  the  regular
30    course of business.

31        Section  5-10.  Imposition  of  tax. Beginning October 1,
32    2003, a tax is imposed upon the privilege of  using  in  this
33    State  gas  obtained in a purchase of out-of-state gas at the
 
                            -4-      LRB093 03177 RCE 17315 a
 1    rate of 2.4 cents per therm or 5% of the purchase  price  for
 2    the  billing  period,  whichever  is the lower rate. Such tax
 3    rate shall be referred to as  the  "self-assessing  purchaser
 4    tax   rate."   Beginning  with  bills  issued  by  delivering
 5    suppliers on and after October 1, 2003, purchasers may  elect
 6    an  alternative  tax  rate  of 2.4 cents per therm to be paid
 7    under the provisions  of  Section  5-15  of  this  Law  to  a
 8    delivering  supplier  maintaining a place of business in this
 9    State. Such tax rate shall be referred to as  the  "alternate
10    tax rate". The tax imposed under this Section shall not apply
11    to  gas  used by business enterprises certified under Section
12    9-222.1 of the Public  Utilities  Act,  as  amended,  to  the
13    extent  of  such  exemption  and  during  the  period of time
14    specified  by  the  Department  of  Commerce  and   Community
15    Affairs.

16        Section  5-15. Collection of Gas Use Tax; relief of duty.
17    Beginning with bills issued on and after October 1,  2003,  a
18    delivering  supplier  maintaining a place of business in this
19    State shall collect, from the purchasers who have elected the
20    alternate tax rate provided in Section 5-10 of this Law,  the
21    tax  that  is  imposed by this Law at the alternate 2.4 cents
22    per therm rate. The tax imposed at the alternate tax rate  by
23    this  Law  shall, when collected, be stated as a distinct and
24    separate item apart from the selling price of  the  gas.  The
25    tax  collected  by any delivering supplier shall constitute a
26    debt owed by that person to this State.  Upon  receipt  by  a
27    delivering   supplier   of   a   copy  of  a  certificate  of
28    registration  issued  to  a  self-assessing  purchaser  under
29    Section  5-20  of  this  Law,  that  delivering  supplier  is
30    relieved of the duty to collect the alternate tax  from  that
31    self-assessing  purchaser beginning with bills issued to that
32    self-assessing purchaser 30 or more days after receipt of the
33    copy of that certificate of registration.
 
                            -5-      LRB093 03177 RCE 17315 a
 1        Section.  5-20.  Self-assessing  purchaser  registration;
 2    certificate of registration. Any purchaser who does not elect
 3    the alternate tax rate to be paid to  a  delivering  supplier
 4    shall  register  with  the  Department  as  a  self-assessing
 5    purchaser and pay the tax imposed by Section 5-10 of this Law
 6    directly  to  the  Department at the self-assessing purchaser
 7    rate.
 8        A purchaser registering as a self-assessing purchaser may
 9    not  revoke  such  registration  for  at   least   one   year
10    thereafter.  Application for a certificate of registration as
11    a self-assessing purchaser shall be made  to  the  Department
12    upon  forms furnished by the Department and shall contain any
13    reasonable information that the Department may  require.  The
14    self-assessing  purchaser  shall  be required to disclose the
15    name  of  the  delivering  supplier  or  suppliers  who   are
16    delivering  the  gas  upon which the self-assessing purchaser
17    will be paying tax directly to the Department.
18        Upon receipt of the  application  for  a  certificate  of
19    registration  in  proper  form, the Department shall issue to
20    the  applicant   a   certificate   of   registration   as   a
21    self-assessing  purchaser. The applicant shall provide a copy
22    of  the  certificate  of  registration  as  a  self-assessing
23    purchaser  to  the   applicant's   delivering   supplier   or
24    suppliers.

25        Section  5-25.  Self-assessing  purchaser;  direct return
26    and payment of tax. Except for purchasers who have chosen the
27    alternate tax rate  to  be  paid  to  a  delivering  supplier
28    maintaining  a  place  of  business  in  this  State, the tax
29    imposed in Section 5-10 of this Law  shall  be  paid  to  the
30    Department  directly  by each self-assessing purchaser who is
31    subject to the tax imposed by this Law.  Each  self-assessing
32    purchaser  shall,  on  or  before the 15th day of each month,
33    make a return to the Department for  the  preceding  calendar
 
                            -6-      LRB093 03177 RCE 17315 a
 1    month, stating the following:
 2             (1)  His or her name and principal address.
 3             (2)  The  total  number of therms used by him or her
 4        during the preceding calendar month and upon the basis of
 5        which the tax is imposed.
 6             (3)  The purchase price of gas used by  him  or  her
 7        during the preceding calendar month and upon the basis of
 8        which the tax is imposed.
 9             (4)  Amount of tax (computed upon items 2 and 3).
10             (5)  Such   other   reasonable  information  as  the
11        Department may require.
12        In making such return, the self-assessing  purchaser  may
13    use  any  reasonable method to derive reportable "therms" and
14    "purchase price" from his or her billing and payment records.
15        If the average monthly liability  of  the  self-assessing
16    purchaser  to  the  Department  does  not  exceed  $100,  the
17    Department  may authorize his or her returns to be filed on a
18    quarter-annual basis, with the return for January,  February,
19    and March of a given year being due by April 30 of such year;
20    with  the  return  for  April,  May, and June of a given year
21    being due by July 31 of such year; with the return for  July,
22    August, and September of a given year being due by October 31
23    of  such year; and with the return for October, November, and
24    December of a given year being  due  by  January  31  of  the
25    following year.
26        If  the  average  monthly liability of the self-assessing
27    purchaser  to  the  Department  does  not  exceed  $20,   the
28    Department  may authorize his or her returns to be filed on a
29    annual basis, with the return for a given year being  due  by
30    January 31 of the following year.
31        Such  quarter-annual  and  annual returns, as to form and
32    substance, shall be  subject  to  the  same  requirements  as
33    monthly returns.
34        Notwithstanding   any   other   provision   in  this  Law
 
                            -7-      LRB093 03177 RCE 17315 a
 1    concerning the time within which a  self-assessing  purchaser
 2    may  file  his  or  her  return,  in  the  case  of  any such
 3    self-assessing purchaser who ceases to engage in  a  kind  of
 4    business  which  makes  him  or  her  responsible  for filing
 5    returns under this Law, such person shall file a final return
 6    under this Law with the Department not more  than  one  month
 7    after discontinuing such business.
 8        Each   self-assessing  purchaser  whose  average  monthly
 9    liability to the Department under this  Law  was  $10,000  or
10    more  during the preceding calendar year, excluding the month
11    of highest liability and the month  of  lowest  liability  in
12    such  calendar  year,  and  who  is not operated by a unit of
13    local  government,  shall  make  estimated  payments  to  the
14    Department on or before the 7th, 15th, 22nd, and last day  of
15    the  month  during  which  tax liability to the Department is
16    incurred in an amount not less than the lower of either 22.5%
17    of such person's actual tax liability for the month or 25% of
18    such person's actual tax  liability  for  the  same  calendar
19    month   of   the   preceding   year.   The   amount  of  such
20    quarter-monthly payments shall be credited against the  final
21    tax  liability  of  the self-assessing purchaser's return for
22    that  month.  Any  outstanding  credit,   approved   by   the
23    Department,   arising  from  the  self-assessing  purchaser's
24    overpayment of his or her final tax liability for  any  month
25    may  be  applied  to  reduce  the  amount  of  any subsequent
26    quarter-monthly payment or credited  against  the  final  tax
27    liability  of  such self-assessing purchaser's return for any
28    subsequent month. If any quarter-monthly payment is not  paid
29    at  the  time or in the amount required by this Section, such
30    person shall be  liable  for  penalty  and  interest  on  the
31    difference  between  the  minimum amount due as a payment and
32    the amount of such payment actually and timely  paid,  except
33    insofar  as such person has previously made payments for that
34    month to the Department in excess  of  the  minimum  payments
 
                            -8-      LRB093 03177 RCE 17315 a
 1    previously due.
 2        The  self-assessing  purchaser making the return provided
 3    for in this Section shall, at the time of making such return,
 4    pay to the Department the amount of tax imposed by this  Law.
 5    All moneys received by the Department under this Law shall be
 6    paid into the General Revenue Fund in the State treasury.

 7        Section  5-30.  Registration  of  delivering suppliers. A
 8    delivering supplier maintaining a place of business  in  this
 9    State  who engages in the delivery of gas in this State shall
10    register with  the  Department.  A  delivering  supplier,  if
11    required  to register under the Gas Revenue Tax Act, need not
12    obtain an additional certificate of registration  under  this
13    Law,  but  shall  be  deemed to be sufficiently registered by
14    virtue of his being registered under the Gas Revenue Tax Act.
15    Application for a certificate of registration shall  be  made
16    to  the Department upon forms furnished by the Department and
17    shall contain any reasonable information the  Department  may
18    require. Upon receipt of the application for a certificate of
19    registration  in  proper  form, the Department shall issue to
20    the applicant a certificate of registration.  The  Department
21    may  deny  a  certificate of registration to any applicant if
22    such applicant is in default for moneys due under  this  Law.
23    Any  person aggrieved by any decision of the Department under
24    this Section  may,  within  20  days  after  notice  of  such
25    decision,  protest  and  request  a  hearing,  whereupon  the
26    Department  shall  give notice to such person of the time and
27    place fixed for such hearing and  shall  hold  a  hearing  in
28    conformity with the provisions of this Law and then issue its
29    final  administrative  decision in the matter to such person.
30    In the  absence  of  such  a  protest  within  20  days,  the
31    Department's  decision shall become final without any further
32    determination being made or notice given.
 
                            -9-      LRB093 03177 RCE 17315 a
 1        Section 5-35. Return and payment  of  tax  by  delivering
 2    supplier.   Each  delivering  supplier  who is required under
 3    Section 5-15 to collect the tax imposed  by  this  Law  shall
 4    make  a return to the Department on or before the 15th day of
 5    each month for  the  preceding  calendar  month  stating  the
 6    following:
 7             (1)  His or her name.
 8             (2)  The  address  of  his or her principal place of
 9        business and  the  address  of  the  principal  place  of
10        business  (if  that is a different address) from which he
11        or she engages in  the  business  of  delivering  gas  to
12        persons for use or consumption and not for resale.
13             (3)  The  total number of therms of gas delivered to
14        purchasers during the preceding calendar month  and  upon
15        the basis of which the tax is imposed.
16             (4)  Amount of tax computed upon item 3.
17             (5)  Such   other   reasonable  information  as  the
18        Department may require.
19        In making such return the person engaged in the  business
20    of  delivering  gas to persons for use or consumption and not
21    for resale may use any reasonable method to derive reportable
22    "therms" from his or her billing and payment records.
23        If the average monthly liability to the Department of the
24    delivering supplier does not exceed $100, the Department  may
25    authorize  his or her returns to be filed on a quarter-annual
26    basis, with the return for January, February, and March of  a
27    given  year  being  due  by  April  30 of such year; with the
28    return for April, May, and June of a given year being due  by
29    July  31  of such year; with the return for July, August, and
30    September of a given year being due by  October  31  of  such
31    year; and with the return for October, November, and December
32    of  a  given  year  being  due by January 31 of the following
33    year.
34        If the average monthly liability to the Department of the
 
                            -10-     LRB093 03177 RCE 17315 a
 1    delivering supplier does not exceed $20, the  Department  may
 2    authorize  his or her returns to be filed on an annual basis,
 3    with the return for a given year being due by January  31  of
 4    the following year.
 5        Such  quarter-annual  and  annual returns, as to form and
 6    substance, shall be  subject  to  the  same  requirements  as
 7    monthly returns.
 8        Notwithstanding   any   other   provision   in  this  Law
 9    concerning the time within which a  delivering  supplier  may
10    file  his  or  her  return,  in  the  case  of any delivering
11    supplier who ceases to engage in  a  kind  of  business  that
12    makes  him  or  her responsible for filing returns under this
13    Law, such delivering supplier shall file a final return under
14    this Law with the Department not more than  one  month  after
15    discontinuing such business.
16        Each  delivering supplier whose average monthly liability
17    to the Department under this Law was $10,000 or  more  during
18    the  preceding  calendar year, excluding the month of highest
19    liability and the month of lowest liability in such  calendar
20    year,  and who is not operated by a unit of local government,
21    shall make estimated payments to the Department on or  before
22    the  7th,  15th, 22nd, and last day of the month during which
23    tax liability to the Department is incurred in an amount  not
24    less  than  the lower of either 22.5% of such person's actual
25    tax liability for the month or 25% of  such  person's  actual
26    tax  liability  for  the same calendar month of the preceding
27    year. The amount of such quarter-monthly  payments  shall  be
28    credited  against  the  final  tax liability of such person's
29    return for that month. Any outstanding  credit,  approved  by
30    the Department, arising from such person's overpayment of his
31    or  her  final  tax liability for any month may be applied to
32    reduce the amount of any subsequent  quarter-monthly  payment
33    or  credited against the final tax liability of such person's
34    return for  any  subsequent  month.  If  any  quarter-monthly
 
                            -11-     LRB093 03177 RCE 17315 a
 1    payment  is not paid at the time or in the amount required by
 2    this Section, such person shall be  liable  for  penalty  and
 3    interest  on the difference between the minimum amount due as
 4    a payment and the amount of such payment actually and  timely
 5    paid,  except  insofar  as  such  person  has previously made
 6    payments for that month to the Department in  excess  of  the
 7    minimum payments previously due.
 8        The delivering supplier making the return provided for in
 9    this Section shall, at the time of making such return, pay to
10    the  Department  the  amount  of tax imposed by this Law. All
11    moneys received by the Department under  this  Law  shall  be
12    paid into the General Revenue Fund in the State treasury.

13        Section  5-40.  Incorporation of applicable Sections. The
14    Department shall have full power to  administer  and  enforce
15    this  Law;  to collect all taxes, penalties, and interest due
16    hereunder; to dispose of taxes, penalties,  and  interest  so
17    collected   in   the  manner  hereinafter  provided;  and  to
18    determine all rights to credit memoranda or  refunds  arising
19    on  account  of  the  erroneous  payment  of tax, penalty, or
20    interest hereunder. In the administration of, and  compliance
21    with,  this  Section,  the  Department  and  persons  who are
22    subject to this Section shall have the same rights, remedies,
23    privileges, immunities, powers, and duties, be subject to the
24    same conditions, restrictions,  limitations,  penalties,  and
25    definitions of terms, and employ the same modes of procedure,
26    as  are  prescribed  in  Sections  2,  4,  5, 6, 7, 9 (except
27    provisions relating to transaction returns  and  except  that
28    the  due date for returns shall be the 15th day of each month
29    for the preceding calendar month), 10, 11, 12, 12a, 12b,  13,
30    14,  15,  18,  19, 20, 21, and 22 of the Use Tax Act, and are
31    not inconsistent with this Section,  as  fully  as  if  those
32    provisions were set forth herein.
 
                            -12-     LRB093 03177 RCE 17315 a
 1        Section  5-45.  Multistate  exemption.  To prevent actual
 2    multi-state taxation of the  privilege  that  is  subject  to
 3    taxation  under  this  Law,  any  purchaser,  upon proof that
 4    purchaser has paid a tax in  another  state  on  such  event,
 5    shall  be  allowed  a  credit against the tax imposed by this
 6    Law, to the extent of the amount of the tax properly due  and
 7    paid in the other state.

 8        Section 5-50.  Exemptions. The tax imposed under this Act
 9    shall not apply to:
10             (1)  Gas  used by business enterprises located in an
11        enterprise zone certified by the Department  of  Commerce
12        and   Economic   Opportunity  pursuant  to  the  Illinois
13        Enterprise Zone Act;
14             (2)  Gas  used  by   governmental   bodies,   or   a
15        corporation,   society,   association,   foundation,   or
16        institution   organized   and  operated  exclusively  for
17        charitable, religious, or educational purposes.  Such use
18        shall not  be  exempt  unless  the  government  body,  or
19        corporation,   society,   association,   foundation,   or
20        institution   organized   and  operated  exclusively  for
21        charitable, religious, or educational purposes has  first
22        been  issued a tax exemption identification number by the
23        Department of Revenue  pursuant  to  Section  1g  of  the
24        Retailers'   Occupation  Tax  Act.  A  limited  liability
25        company may qualify for the exemption under this  Section
26        only  if  the  limited liability company is organized and
27        operated exclusively for educational purposes.  The  term
28        "educational  purposes"  shall  have  the same meaning as
29        that set forth in Section 2h of the Retailers' Occupation
30        Tax Act;
31             (3)  Gas used in the production of electric  energy.
32        This  exemption  does not include gas used in the general
33        maintenance or heating of an electric  energy  production
 
                            -13-     LRB093 03177 RCE 17315 a
 1        facility or other structure;
 2             (4)  Gas used in a petroleum refinery operation;
 3             (5)  Gas   purchased   by   persons   for   use   in
 4        liquefaction  and  fractionation  processes  that produce
 5        value added natural gas byproducts for resale;
 6             (6)  Gas used in the production of anhydrous ammonia
 7        and downstream nitrogen fertilizer products for resale.
 8        The  Department  may  adopt  rules   to   implement   the
 9    provisions of this Section.

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

12        (35 ILCS 615/1) (from Ch. 120, par. 467.16)
13        Sec. 1.  For the purposes of this Act:  "Gross  receipts"
14    means   the   consideration  received  for  gas  distributed,
15    supplied, furnished or sold to persons for use or consumption
16    and not for resale,  and  for  all  services  (including  the
17    transportation or storage of gas for an end-user) rendered in
18    connection  therewith,  and  shall include cash, services and
19    property of every kind or nature,  and  shall  be  determined
20    without  any deduction on account of the cost of the service,
21    product or commodity supplied, the cost  of  materials  used,
22    labor  or  service  costs,  or  any other expense whatsoever.
23    However, "gross receipts" shall not include receipts from:
24             (i)  any minimum or other  charge  for  gas  or  gas
25        service where the customer has taken no therms of gas;
26             (ii)  any charge for a dishonored check;
27             (iii)  any  finance  or  credit  charge,  penalty or
28        charge  for  delayed  payment,  or  discount  for  prompt
29        payment;
30             (iv)  any charge for reconnection of service or  for
31        replacement or relocation of facilities;
32             (v)  any   advance   or   contribution   in  aid  of
 
                            -14-     LRB093 03177 RCE 17315 a
 1        construction;
 2             (vi)  repair, inspection or servicing  of  equipment
 3        located on customer premises;
 4             (vii)  leasing  or  rental of equipment, the leasing
 5        or rental of which  is  not  necessary  to  distributing,
 6        furnishing,  supplying,  selling, transporting or storing
 7        gas;
 8             (viii)  any sale to a customer if  the  taxpayer  is
 9        prohibited  by  federal  or  State  constitution, treaty,
10        convention, statute or court decision from recovering the
11        related tax liability from such customer;
12             (ix)  any charges added to customers' bills pursuant
13        to the provisions of Section 9-221 or  Section  9-222  of
14        the  Public  Utilities  Act,  as  amended, or any charges
15        added to  customers'  bills  by  taxpayers  who  are  not
16        subject  to  rate  regulation  by  the  Illinois Commerce
17        Commission for the purpose of recovering any of  the  tax
18        liabilities or other amounts specified in such provisions
19        of such Act; and
20             (x)  prior to October 1, 2003, any charge for gas or
21        gas  services  to  a  customer  who  acquired contractual
22        rights for the direct purchase of  gas  or  gas  services
23        originating from an out-of-state supplier or source on or
24        before  March  1,  1995,  except for those charges solely
25        related to the local distribution  of  gas  by  a  public
26        utility.   This  exemption includes any charge for gas or
27        gas service, except for those charges solely  related  to
28        the  local  distribution of gas by a public utility, to a
29        customer who maintained an account with a public  utility
30        (as defined in Section 3-105 of the Public Utilities Act)
31        for the transportation of customer-owned gas on or before
32        March  1, 1995.  The provisions of this amendatory Act of
33        1997  are  intended  to  clarify,  rather  than   change,
34        existing  law  as  to  the  meaning  and  scope  of  this
 
                            -15-     LRB093 03177 RCE 17315 a
 1        exemption.   This  exemption (x) expires on September 30,
 2        2003.
 3        In case credit is extended, the amount thereof  shall  be
 4    included only as and when payments are received.
 5        "Gross receipts" shall not include consideration received
 6    from  business enterprises certified under Section 9-222.1 of
 7    the Public Utilities Act, as amended, to the extent  of  such
 8    exemption  and  during  the  period  of time specified by the
 9    Department of Commerce and Community Affairs.
10        "Department" means the Department of Revenue of the State
11    of Illinois.
12        "Director"  means  the  Director  of  Revenue   for   the
13    Department of Revenue of the State of Illinois.
14        "Taxpayer"  means  a  person  engaged  in the business of
15    distributing, supplying, furnishing or selling gas for use or
16    consumption and not for resale.
17        "Person"  means  any  natural  individual,  firm,  trust,
18    estate, partnership, association, joint stock company,  joint
19    adventure,  corporation,  limited  liability  company,  or  a
20    receiver, trustee, guardian or other representative appointed
21    by  order  of  any  court, or any city, town, county or other
22    political subdivision of this State.
23        "Invested capital" means that amount  equal  to  (i)  the
24    average  of  the  balances  at  the beginning and end of each
25    taxable period of the taxpayer's total  stockholder's  equity
26    and total long-term debt, less investments in and advances to
27    all corporations, as set forth on the balance sheets included
28    in  the  taxpayer's  annual  report  to the Illinois Commerce
29    Commission for the  taxable  period;  (ii)  multiplied  by  a
30    fraction  determined  under  Sections  301  and 304(a) of the
31    "Illinois Income Tax Act" and reported on the Illinois income
32    tax return for the taxable  period  ending  in  or  with  the
33    taxable  period  in  question.  However,  notwithstanding the
34    income  tax  return  reporting  requirement   stated   above,
 
                            -16-     LRB093 03177 RCE 17315 a
 1    beginning  July  1,  1979, no taxpayer's denominators used to
 2    compute  the  sales,  property  or  payroll   factors   under
 3    subsection  (a) of Section 304 of the Illinois Income Tax Act
 4    shall include payroll, property or  sales  of  any  corporate
 5    entity   other   than   the  taxpayer  for  the  purposes  of
 6    determining an allocation for the invested capital tax.  This
 7    amendatory  Act  of 1982, Public Act 82-1024, is not intended
 8    to and does not  make  any  change  in  the  meaning  of  any
 9    provision  of  this  Act,  it  having  been the intent of the
10    General Assembly in  initially  enacting  the  definition  of
11    "invested  capital"  to  provide  for  apportionment  of  the
12    invested  capital  of  each  company,  based  solely upon the
13    sales, property and payroll of that company.
14        "Taxable period" means each period which ends  after  the
15    effective  date of this Act and which is covered by an annual
16    report filed by  the  taxpayer  with  the  Illinois  Commerce
17    Commission.
18    (Source: P.A. 89-417, eff. 1-1-96; 90-16, eff. 6-16-97.)

19        (35 ILCS 615/2) (from Ch. 120, par. 467.17)
20        Sec.  2.  A  tax  is  imposed upon persons engaged in the
21    business of distributing, supplying,  furnishing  or  selling
22    gas  to  persons for use or consumption and not for resale at
23    the rate of 2.4 cents per  therm  of  all  gas  which  is  so
24    distributed,  supplied,  furnished, sold or transported to or
25    for each customer in the course of such business,  or  5%  of
26    the  gross  receipts  received  from  each customer from such
27    business, whichever is the lower  rate  as  applied  to  each
28    customer  for  that  customer's billing period, provided that
29    any change in rate imposed by this  amendatory  Act  of  1985
30    shall become effective only with bills having a meter reading
31    date on or after January 1, 1986. However, such taxes are not
32    imposed  with respect to any business in interstate commerce,
33    or otherwise to the extent to which such  business  may  not,
 
                            -17-     LRB093 03177 RCE 17315 a
 1    under  the Constitution and statutes of the United States, be
 2    made the subject of taxation by this State.
 3        Nothing in this amendatory Act of 1985 shall impose a tax
 4    with respect to any transaction with respect to which no  tax
 5    was  imposed immediately preceding the effective date of this
 6    amendatory Act of 1985.
 7        Beginning with bills issued to  customers  on  and  after
 8    October  1,  2003,  no tax shall be imposed under this Act on
 9    transactions with customers who incur a tax  liability  under
10    the Gas Use Tax Law.
11    (Source: P.A. 84-307; 84-1093.)

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