AUTHORITY: Implementing the Electricity Excise Tax Law [35 ILCS 640].

SOURCE: Adopted at 25 Ill. Reg. 16495, effective December 18, 2001; amended at 26 Ill. Reg. 5965, effective April 15, 2002.

SUBPART A: GENERAL

 

Section 511.100  Definitions

 

For the purposes of this Part:

 

            "Delivering supplier" means any person engaged in the business of delivering electricity to persons for use or consumption and not for resale who, in any case where more than one person participates in the delivery of electricity to a specific purchaser, is the last of the suppliers engaged in delivering the electricity prior to its receipt by the purchaser.  Effective for periods on and after August 9, 2001, "delivering supplier" does not include an entity engaged in the practice of resale and redistribution of electricity within a building prior to January 2, 1957.

 

            "Delivering supplier maintaining a place of business in this State", or any like term, means any delivering supplier having or maintaining within this State, directly or by a subsidiary, an office, generation facility, transmission facility, distribution facility, sales office or other place of business, or any employee, agent or other representative operating within this State under the authority of such delivering supplier or such delivering supplier's subsidiary, irrespective of whether such place of business or agent or other representative is located in this State permanently or temporarily, or whether such delivering supplier or such delivering supplier's subsidiary is licensed to do business in this State.

 

            "Law" means the Electricity Excise Tax Law [35 ILCS 640].

 

            "Person" means any natural individual, firm, trust, estate, partnership, association, joint stock company, joint venture, corporation, limited liability company, or a receiver, trustee, guardian, or other representative appointed by order of any court, or any city, town, village, county, or other political subdivision of this State.

 

            "Purchaser" means any person who acquires electricity for use or consumption and not for resale, for a valuable consideration.

 

            "Self-assessing purchaser" means a purchaser for non-residential electric use who elects to register with and to pay tax directly to the Department in accordance with Sections 2-10 and 2-11 of the Electricity Excise Tax Law [35 ILCS 640/2-10 and 2-11].

 

            "Use" means the exercise by any person of any right or power over electricity incident to the ownership of that electricity, except that it does not include the generation, production, transmission, distribution, delivery or sale of electricity in the regular course of business or the use of electricity for such purposes. [35 ILCS 640/2-3]

 

(Source:  Amended at 26 Ill. Reg. 5965, effective April 15, 2002)

 

Section 511.110  Imposition of Tax

 

The Electricity Excise Tax Law imposes a tax on the privilege of using in this State electricity purchased for use or consumption (see 35 ILCS 640/2-4). The base and rate of the tax is dependent upon the type of supplier from which the electricity is obtained.

 

a)         Electricity Purchased From Municipal Systems or Electric Cooperatives. A tax is imposed on the privilege of using in this State electricity purchased from a municipal system or electric cooperative, as defined in Article XVII of the Public Utilities Act, which has not made an election as permitted by either Section 17-200 (election to provide existing or future customers access to alternative retail electric suppliers) or Section 17-300 (election to be an alternative retail electric supplier) of the Public Utilities Act, at the lesser of 0.32 cents per kilowatt hour of all electricity distributed, supplied, furnished, sold, transmitted, and delivered by such municipal system or electric cooperative to the purchaser or 5% of each such purchaser's purchase price for all electricity distributed, supplied, furnished, sold, transmitted, and delivered by such municipal system or electric cooperative to the purchaser, whichever is the lower rate as applied to each purchaser in each billing period. [35 ILCS 640/2-4(b)]  Taxpayers who obtain their electricity or electric service from a supplier described in this Part may not elect to become a self-assessing purchaser as described in subsection (c) of this Section.

 

b)         Other Suppliers.  Except as provided in subsection (a) of this Section, the tax is imposed on the privilege of using in this State electricity purchased for use or consumption and not for resale, other than by municipal corporations owning and operating a local transportation system for public service, at the following rates per kilowatt-hour delivered to the purchaser:

 

1)         For the first 2000 kilowatt-hours used or consumed in a month: 0.330 cents per kilowatt-hour;

 

2)         For the next 48,000 kilowatt-hours used or consumed in a month: 0.319 cents per kilowatt-hour;

 

3)         For the next 50,000 kilowatt-hours used or consumed in a month: 0.303 cents per kilowatt-hour;

 

4)         For the next 400,000 kilowatt-hours used or consumed in a month: 0.297 cents per kilowatt-hour;

 

5)         For the next 500,000 kilowatt-hours used or consumed in a month: 0.286 cents per kilowatt-hour;

 

6)         For the next 2,000,000 kilowatt-hours used or consumed in a month: 0.270 cents per kilowatt-hour;

 

7)         For the next 2,000,000 kilowatt-hours used or consumed in a month: 0.254 cents per kilowatt-hour;

 

8)         For the next 5,000,000 kilowatt-hours used or consumed in a month: 0.233 cents per kilowatt-hour;

 

9)         For the next 10,000,000 kilowatt-hours used or consumed in a month: 0.207 cents per kilowatt-hour;

 

10)       For all electricity in excess of 20,000,000 kilowatt-hours used or consumed in a month: 0.202 cents per kilowatt-hour. [35 ILCS 640/2-4(c)]

 

c)         In lieu of the foregoing rates in subsection (b) of this Section, the tax is imposed on a self-assessing purchaser at the rate of 5.1% of the self-assessing purchaser's purchase price for all electricity distributed, supplied, furnished, sold, transmitted and delivered to the self-assessing purchaser in a month. [35 ILCS 640/2-4(a)]

 

Section 511.120  Electronic Fund Transfer and Estimated Payments

 

a)         Estimated payments

 

1)         Each taxpayer under the Electricity Excise Tax Law whose average monthly liability was $10,000 or more during the preceding calendar year, excluding the month of highest liability and the month of lowest liability during such calendar year, shall make quarter monthly payments to the Department on or before the 7^th, 15 ^th, 22^nd, and last day of the month during which the liability is incurred.  The amount of the payments are the lower of either 22.5% of the taxpayer's actual tax liability for the month or 25% of the taxpayer's actual tax liability for the same calendar month of the preceding year. [35 ILCS 640/2-9 and 2-11]

 

2)         No taxpayer under the Electricity Excise Tax Law is required to make estimated payments during calendar year 1998.  For calendar year 1999, the Department will calculate the taxpayer's average monthly liability during calendar year 1998 by taking the sum of the liabilities for the last 5 months of calendar year 1998 and excluding the month of highest liability and the month of lowest liability during that period and dividing by 3.

 

b)         Electronic funds transfer

 

1)         Each taxpayer under the Electricity Excise Tax Law whose average monthly liability was $10,000 or more is also required to make all payments by electronic funds transfer.  This calculation is made by taking the sum of the taxpayer's liabilities for the immediately preceding calendar year and dividing by 12.  [35 ILCS 640/2-9 and 2-11]

 

2)         No taxpayer under the Electricity Excise Tax Law is required to make payments by electronic funds transfer during calendar year 1998.  For calendar year 1999, the Department will calculate the taxpayer's average monthly liability during calendar year 1998 by taking the sum of the liabilities for the last 5 months of calendar year 1998 and dividing by 12.

 

Section 511.130  Transfer of Credit Memorandum

 

a)         Any credit memorandum issued under the tax imposed by Section 2 of the Public Utilities Revenue Act may be applied against liability incurred under the Electricity Excise Tax Law.

 

b)         Any credit memorandum issued under the Electricity Excise Tax Law may be applied against any liability incurred under the tax imposed by Section 2 of the Public Utilities Revenue Act. [35 ILCS 640/2-12]

 

Section 511.140  Public Utility Retail Rate Credit

 

Public utilities that are required to purchase electricity from qualified solid waste energy facilities and incur liability as delivering suppliers are entitled to a credit against their Electricity Excise Tax liability in an amount determined under Section 8-403.1(d) of the Public Utilities Act.  (See 35 ILCS 640/2-7(b).)

 

Section 511.150  Exclusions From Tax

 

a)         Federal Government.  Electricity Excise Tax is not imposed with respect to any transaction in interstate commerce, or otherwise, to the extent to which such transaction may not, under the Constitution and statutes of the United States, be made the subject of taxation by this State.  [35 ILCS 640/2-4(c)]  For example, the federal government is not taxable under the Electricity Excise Tax Law. However, the State of Illinois and any other state or local government is subject to tax under the Electricity Excise Tax Law.  Examples of the federal government include, but are not limited to, entities such as:  the three main branches of government, the Executive, Legislative and Judicial, and the U.S. Postal Service.  A sale of electricity to the federal courthouse would be exempt; however, a sale to a federal judge for his own use would not be exempt.

 

b)         Entities that are exempt from taxation by federal statute are not subject to Electricity Excise Tax liability.  For example, federal credit unions are not subject to Electricity Excise Tax liability pursuant to 12 USC 1768.  Further, Amtrak is not subject to Electricity Excise Tax liability pursuant to 49 USC 24301(l).

 

c)         Businesses Located in Enterprise Zones.  Electricity Excise Tax is not imposed on business enterprises that are certified by the Department of Commerce and Community Affairs under Section 9-222.1 of the Public Utilities Act to the extent of such exemption and during the time specified by the Department of Commerce and Community Affairs. [35 ILCS 640/2-4(c)]

 

d)         Businesses Certified as High Impact Businesses.  Electricity Excise Tax is not imposed on business enterprises that are certified by the Department of Commerce and Community Affairs as High Impact Businesses under Section 9-222.1A of the Public Utilities Act to the extent of such exemption and during the time specified by the Department of Commerce and Community Affairs.  [35 ILCS 640/2-4(c)] In order to qualify for this exclusion from Electricity Excise Tax liability, the High Impact Business must be properly registered with the Department as a self-assessing purchaser under Section 2-10 of the Electricity Excise Tax Law (see Section 511.300 of this Part).  [220 ILCS 5/9-222.1A]

 

e)         Delivering suppliers are required to maintain documentation in their books and records to support the exemptions described in this Section.  In order to document the exemptions listed in subsections (c) and (d) of this Section, delivering suppliers must maintain the current certificate of eligibility issued by the Department of Commerce and Community Affairs to the businesses claiming the exemption.

 

Section 511.160  Net or Single Metering

 

Regardless of whether taxpayers who purchase electricity or electric service and also generate their own electricity, which is put back into their delivering suppliers' electricity distribution systems, use either Single Meters (Dual-Flow Meters) or Separate Meters (Single-Flow Meters), the basis of the tax is on the amount of electricity delivered for use.  These types of meters are defined as follows:

 

a)         Single Meters (Dual-Flow Meters).  These types of meters allow electricity to flow in both ways through the meter (electricity received by the taxpayer and electricity the taxpayer has put back into the delivering supplier's electricity distribution system) and the meter provides a reading only of the net result.

 

b)         Separate Meters (Single-Flow Meters).  Separate or Single-Flow Meters are used to keep track of both the electricity received by the taxpayer from the delivering supplier and the amount returned by the taxpayer to the delivering supplier's electricity distribution system.

SUBPART B: COLLECTION OF TAX BY DELIVERING SUPPLIERS

 

Section 511.200  Collection of Tax by Delivering Supplier

 

Beginning with bills for electricity or electric service issued on and after August 1, 1998, the tax imposed by the Electricity Excise Tax Law shall be collected from the purchaser, other than a self-assessing purchaser where the delivering supplier or suppliers are notified by the Department that the purchaser has been registered as a self-assessing purchaser as described in Section 511.300 of this Part, by any delivering supplier maintaining a place of business in this State.

 

a)         All sales to a purchaser are presumed subject to tax collection unless the Department notifies the delivering supplier that the purchaser has been registered as a self-assessing purchaser for the accounts listed by the self-assessing purchaser as described in Section 511.300 of this Part.  Upon receipt of notification by the Department, the delivering supplier is relieved of all liability for the collection and remittance of tax from the self-assessing purchaser for the accounts specifically listed by the self-assessing purchaser for which notification was provided by the Department.  The delivering supplier is relieved of the liability for the collection of the tax from a self-assessing purchaser until such time as the delivering supplier is notified in writing by the Department that the purchaser's certification as a self-assessing purchaser is no longer in effect.

 

b)         Delivering suppliers shall collect the tax from purchasers by adding the tax to the amount of the purchase price received from the purchaser for delivering electricity for or to the purchaser.  Where a delivering supplier does not collect the tax from a purchaser, other than a self-assessing purchaser, as provided in this Section, such purchaser shall pay the tax directly to the Department. [35 ILCS 640/2-7]

 

Section 511.210  Delivering Supplier Registration

 

a)         Persons engaging in business in this State as delivering suppliers must register with the Department.   Application for registration as a delivering supplier is made on Form RPU-3, Utility Tax Application for Registration.

 

b)         Any person who is denied registration as a delivering supplier may, within 20 days after notice of such decision, protest and request a hearing, whereupon the Department shall give notice to such person of the time and place fixed for such hearing and shall hold a hearing in conformity with the provisions of the Law and then issue its final administrative decision in the matter to such person. In the absence of such a protest within 20 days, the Department's decision shall become final without any further determination being made or notice given. [35 ILCS 640/2-7.5]

 

Section 511.220  Revocation of Delivering Supplier Registration

 

The Department may, after notice and a hearing, revoke the certificate of registration of any person who violates any of the provisions of the Electricity Excise Tax Law. Before revocation of a certificate of registration, the Department shall, within 90 days after non-compliance and at least 7 days prior to the date of the hearing, give the person so accused notice in writing of the charge against him or her, and on the date designated shall conduct a hearing upon this matter.  The lapse of such 90-day period shall not preclude the Department from conducting revocation proceedings at a later date if necessary.   Any such hearing held shall be conducted by the Director or by any officer or employee of the Department designated in writing by the Director. [35 ILCS 640/2-7.6]

 

Section 511.230  Delivering Supplier Return

 

Return and payment of tax by delivering supplier.

 

a)         Each delivering supplier who is required or authorized to collect the tax imposed by the Law shall make a return to the Department on or before the 15th day of each month for the preceding calendar month stating the following:

 

1)         The delivering supplier's name and registration number.

 

2)         The address of the delivering supplier's principal place of business and the address of the principal place of business (if that is a different address) from which the delivering supplier engaged in the business of delivering electricity in this State.

 

3)         The total number of kilowatt-hours which the supplier delivered to or for purchasers during the preceding calendar month and upon the basis of which the tax is imposed.

 

4)         The amount of tax, computed on the number of kilowatt-hours in subsection (a)(3)  at the rates stated in Section 511.110 of this Part.

 

5)         An adjustment for uncollectible amounts of tax in respect of prior period kilowatt-hour deliveries.

 

6)         The amount of credits to which the taxpayer is entitled on account of purchases made under Section 8-403.1 of the Public Utilities Act.

 

7)         The gross receipts from sales of electricity that are taxed on a gross receipts basis under Section 511.110(a) of this Part and any non-taxable deductions from those gross receipts.

 

8)         The amount of any credits to be applied to the liability period of the return in addition to those listed in subsection (a)(6).

 

9)         The signature of the taxpayer.

 

b)         In preparing the return, the delivering supplier may use any reasonable method to derive reportable "kilowatt-hours" from the delivering supplier's records. For example, one such method is basing reportable kilowatt-hours on the amount of electricity billed to customers during the preceding calendar month.

 

c)         The delivering supplier making the return provided for in this Section shall pay to the Department the amount of tax imposed by the Electricity Excise Tax Law at the time of making such return.  [35 ILCS 640/2-9]

            Such return shall be made on the Department's Form RPU-13, Electricity Excise Tax Return.

SUBPART C: SELF-ASSESSING PURCHASERS

 

Section 511.300  Self-assessing Purchaser Election

 

a)         Any purchaser for non-residential electric use may elect to register with the Department as a self-assessing purchaser and to pay the tax imposed by the Electricity Excise Tax Law directly to the Department, at the rate of 5.1% of the self-assessing purchaser's purchase price for all electricity distributed, supplied, furnished, sold, transmitted and delivered to the self-assessing purchaser in a month, rather than paying the tax to such purchaser's delivering supplier. [35 ILCS 640/2-10]

 

b)         A purchaser may not elect to register to be a self-assessing purchaser for accounts where that purchaser's delivering supplier is a municipal system or electric cooperative, as defined in Article XVII of the Public Utilities Act, which has not made an election as permitted by either Section 17-200 (election to provide existing or future customers access to alternative retail electric suppliers) or Section 17-300 (election to be an alternative retail electric supplier) of the  Act.  See Section 511.110(c) of this Part.

 

c)         The election by a purchaser to register as a self-assessing purchaser may not be revoked by the purchaser for at least 2 years after election. [35 ILCS 640/2-10]

 

Section 511.310  Self-assessing Purchaser Registration and Renewal, $200 Fee

 

a)         Application for a certificate of registration as a self-assessing purchaser shall be made to the Department upon Form RPU-3, Utility Tax Application for Registration, along with Form RPU-5, Self-assessing Purchaser Worksheet. Applicants must specify on Form RPU-3 the date upon which the applicant wishes to become a self-assessing purchaser.  Applicants must provide the properly completed application (Form RPU-3 and RPU-5) to the Department at least 30 days before the date they wish to become a self-assessing purchaser in order to give the Department sufficient time to process the application and forward a copy of the RPU-5 to the delivering suppliers listed on that Form.

 

b)         Applicants must identify on Form RPU-5, Self-assessing Purchaser Worksheet, the delivering suppliers and each account with those delivering suppliers upon which the self-assessing purchaser has chosen to pay Electricity Excise Tax directly to the Department.  The Department will then notify those delivering suppliers by sending a photocopy of the applicant's RPU-5 with a letter stating that the delivering supplier is no longer required to collect Electricity Excise Tax on those specified accounts.  An applicant must complete separate RPU-5 Forms for each delivering supplier if the applicant does not wish all of the applicant's account information disclosed to each delivering supplier.

 

c)         Self-assessing purchasers who want to add additional delivering supplier accounts or delete specific accounts must complete a new RPU-5, Self-assessing Purchaser Worksheet, and submit it to the Department at the address listed on that Form at least 30 days before the date they wish to begin or cease self-assessing Electricity Excise Tax on those specified accounts.  The Department will then notify those delivering suppliers by sending a photocopy of the applicant's revised RPU-5.

 

d)         Payment of Non-refundable Biennial Fee.  Applicants are required to pay a non-refundable biennial fee of $200 at the time of application for a certificate of registration as a self-assessing purchaser.

 

e)         Registration as a self-assessing purchaser is valid for a period of 2 years. A certificate of registration as a self-assessing purchaser will be renewed by the Department for an additional 2-year period upon application and payment of a non-refundable biennial fee of $200.  Application for renewal must be received at least 30 days prior to the expiration date of the registration in order to give the Department sufficient time to process the application and forward a copy of the RPU-5 to the delivering suppliers listed on that Form.  If the Department does not receive the renewal application at least 30 days prior to the expiration date of the registration, the registration will be deemed revoked as provided in Section 511.320 of this Part.  This process for issuing a 30-day notice is necessary in order to give the Department sufficient time to forward a copy of the notice of revocation to the applicable delivering suppliers so that the delivering suppliers can begin collecting tax on the date they are required.

 

f)         The Department may deny a certificate of registration to any applicant if the owner, any partner, any manager or member of a limited liability company, or a corporate officer of the applicant, is or has been the owner, a partner, a manager or member of a limited liability company, or a corporate officer, of another self-assessing purchaser that is in default for moneys due under the Electricity Excise Tax Law. [35 ILCS 640/2-10]

 

Section 511.320  Self-assessing Purchaser Revocation

 

a)         The election by a purchaser to register as a self-assessing purchaser may not be revoked by the purchaser for at least 2 years after election.

 

b)         A self-assessing purchaser shall renew his or her registration every 2 years, or the registration shall be deemed to be revoked.  If the Department does not receive the renewal application at least 30 days prior to the expiration date of the registration, the registration will be deemed revoked.

 

c)         A purchaser who revokes his or her registration as a self-assessing purchaser shall not thereafter be permitted to register as a self-assessing purchaser within the succeeding 2 years.  [35 ILCS 640/2-10]

 

d)         The Department may, after notice and a hearing, revoke the certificate of registration of any self-assessing purchaser who violates any of the provisions of the Electricity Excise Tax Law.  Before revocation of a certificate of registration, the Department shall, within 90 days after non-compliance and at least 7 days prior to the date of the hearing, give the person so accused notice in writing of the charge against him or her, and on the date designated shall conduct a hearing upon this matter.  The lapse of such 90-day period shall not preclude the Department from conducting revocation proceedings at a later date if necessary.   Any such hearing held shall be conducted by the Director or by any officer or employee of the Department designated in writing by the Director. [35 ILCS 640/2-10.6]

 

Section 511.330  Self-assessing Purchaser Return and Direct Payment

 

a)         When electricity is used or consumed by a self-assessing purchaser subject to the tax imposed by the Law who did not pay the tax to a delivering supplier maintaining a place of business within this State and required or authorized to collect the tax, that self-assessing purchaser shall, on or before the 15th day of each month, make a return to the Department for the preceding calendar month, stating all of the following:

 

1)         The self-assessing purchaser's name, principal address, and registration number.

 

2)         The aggregate purchase price paid by the self-assessing purchaser for the distribution, supply, furnishing, sale, transmission and delivery of such electricity to or for the purchaser during the preceding calendar month, including budget plan and other purchaser-owned amounts applied during such month in payment of charges includible in the purchase price, and upon the basis of which the tax is imposed.

 

3)         Amount of tax, computed upon the purchase price as outlined in subsection (a)(2) at the rate stated in Section 511.110(c) of this Part.

 

4)         The amount of any credits to be applied to the liability period of the return.

 

5)         The signature of the taxpayer.  In making the return the self-assessing purchaser may use any reasonable method to derive reportable "purchase price" from the self-assessing purchaser's records.

 

b)         The self-assessing purchaser making the return provided for in this Section shall, at the time of making such return, pay to the Department the amount of tax imposed by the Electricity Excise Tax Law.

 

c)         Any self-assessing purchaser who ceases to be responsible for filing returns under the Electricity Excise Tax Law shall file a final return with the Department not more than one month thereafter. [35 ILCS 640/2-11]

            Such return shall be made on the Department's Form RPU-13, Electricity Excise Tax Return.