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90_HB0709enr
35 ILCS 615/3 from Ch. 120, par. 467.18
35 ILCS 620/3 from Ch. 120, par. 470
35 ILCS 625/4 from Ch. 120, par. 1414
35 ILCS 630/6 from Ch. 120, par. 2006
Amends the Gas Revenue Tax Act, the Public Utilities
Revenue Act, the Water Company Invested Capital Tax Act, and
the Telecommunications Excise Tax Act. Provides that a
taxpayer may make the payments required under those Acts by
electronic funds transfer. Provides that the Department of
Revenue shall adopt rules necessary to effectuate a program
of electronic funds transfer. Effective immediately.
LRB9002645KDks
HB0709 Enrolled LRB9002645KDks
1 AN ACT in relation to taxes, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Gas Revenue Tax Act is amended by
5 changing Sections 1 and 3 as follows:
6 (35 ILCS 615/1) (from Ch. 120, par. 467.16)
7 Sec. 1. For the purposes of this Act: "Gross receipts"
8 means the consideration received for gas distributed,
9 supplied, furnished or sold to persons for use or consumption
10 and not for resale, and for all services (including the
11 transportation or storage of gas for an end-user) rendered in
12 connection therewith, and shall include cash, services and
13 property of every kind or nature, and shall be determined
14 without any deduction on account of the cost of the service,
15 product or commodity supplied, the cost of materials used,
16 labor or service costs, or any other expense whatsoever.
17 However, "gross receipts" shall not include receipts from:
18 (i) any minimum or other charge for gas or gas
19 service where the customer has taken no therms of gas;
20 (ii) any charge for a dishonored check;
21 (iii) any finance or credit charge, penalty or
22 charge for delayed payment, or discount for prompt
23 payment;
24 (iv) any charge for reconnection of service or for
25 replacement or relocation of facilities;
26 (v) any advance or contribution in aid of
27 construction;
28 (vi) repair, inspection or servicing of equipment
29 located on customer premises;
30 (vii) leasing or rental of equipment, the leasing
31 or rental of which is not necessary to distributing,
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1 furnishing, supplying, selling, transporting or storing
2 gas;
3 (viii) any sale to a customer if the taxpayer is
4 prohibited by federal or State constitution, treaty,
5 convention, statute or court decision from recovering the
6 related tax liability from such customer;
7 (ix) any charges added to customers' bills pursuant
8 to the provisions of Section 9-221 or Section 9-222 of
9 the Public Utilities Act, as amended, or any charges
10 added to customers' bills by taxpayers who are not
11 subject to rate regulation by the Illinois Commerce
12 Commission for the purpose of recovering any of the tax
13 liabilities or other amounts specified in such provisions
14 of such Act; and
15 (x) any charge for gas or gas services to a
16 customer who acquired contractual rights for the direct
17 purchase of gas or gas services originating from an
18 out-of-state supplier or source on or before March 1,
19 1995, except for those charges solely related to the
20 local distribution of gas by a public utility. This
21 exemption includes any charge for gas or gas service,
22 except for those charges solely related to the local
23 distribution of gas by a public utility, to a customer
24 who maintained an account with a public utility (as
25 defined in Section 3-105 of the Public Utilities Act) for
26 the transportation of customer-owned gas on or before
27 March 1, 1995. The provisions of this amendatory Act of
28 1997 are intended to clarify, rather than change,
29 existing law as to the meaning and scope of this
30 exemption.
31 In case credit is extended, the amount thereof shall be
32 included only as and when payments are received.
33 "Gross receipts" shall not include consideration received
34 from business enterprises certified under Section 9-222.1 of
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1 the Public Utilities Act, as amended, to the extent of such
2 exemption and during the period of time specified by the
3 Department of Commerce and Community Affairs.
4 "Department" means the Department of Revenue of the State
5 of Illinois.
6 "Director" means the Director of Revenue for the
7 Department of Revenue of the State of Illinois.
8 "Taxpayer" means a person engaged in the business of
9 distributing, supplying, furnishing or selling gas for use or
10 consumption and not for resale.
11 "Person" means any natural individual, firm, trust,
12 estate, partnership, association, joint stock company, joint
13 adventure, corporation, limited liability company, or a
14 receiver, trustee, guardian or other representative appointed
15 by order of any court, or any city, town, county or other
16 political subdivision of this State.
17 "Invested capital" means that amount equal to (i) the
18 average of the balances at the beginning and end of each
19 taxable period of the taxpayer's total stockholder's equity
20 and total long-term debt, less investments in and advances to
21 all corporations, as set forth on the balance sheets included
22 in the taxpayer's annual report to the Illinois Commerce
23 Commission for the taxable period; (ii) multiplied by a
24 fraction determined under Sections 301 and 304(a) of the
25 "Illinois Income Tax Act" and reported on the Illinois income
26 tax return for the taxable period ending in or with the
27 taxable period in question. However, notwithstanding the
28 income tax return reporting requirement stated above,
29 beginning July 1, 1979, no taxpayer's denominators used to
30 compute the sales, property or payroll factors under
31 subsection (a) of Section 304 of the Illinois Income Tax Act
32 shall include payroll, property or sales of any corporate
33 entity other than the taxpayer for the purposes of
34 determining an allocation for the invested capital tax. This
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1 amendatory Act of 1982, Public Act 82-1024, is not intended
2 to and does not make any change in the meaning of any
3 provision of this Act, it having been the intent of the
4 General Assembly in initially enacting the definition of
5 "invested capital" to provide for apportionment of the
6 invested capital of each company, based solely upon the
7 sales, property and payroll of that company.
8 "Taxable period" means each period which ends after the
9 effective date of this Act and which is covered by an annual
10 report filed by the taxpayer with the Illinois Commerce
11 Commission.
12 (Source: P.A. 88-480; 89-417, eff. 1-1-96.)
13 (35 ILCS 615/3) (from Ch. 120, par. 467.18)
14 Sec. 3. Except as provided in this Section, on or before
15 the 15th day of each month, each taxpayer shall make a return
16 to the Department for the preceding calendar month, stating:
17 1. His name;
18 2. The address of his principal place of business,
19 and the address of the principal place of business (if
20 that is a different address) from which he engages in the
21 business of distributing, supplying, furnishing or
22 selling gas in this State;
23 3. The total number of therms for which payment was
24 received by him from customers during the preceding
25 calendar month and upon the basis of which the tax is
26 imposed;
27 4. Gross receipts which were received by him from
28 customers during the preceding calendar month from such
29 business, including budget plan and other customer-owned
30 amounts applied during such month in payment of charges
31 includible in gross receipts, and upon the basis of
32 which the tax is imposed;
33 5. Amount of tax (computed upon Items 3 and 4);
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1 6. Such other reasonable information as the
2 Department may require.
3 In making such return the taxpayer may use any reasonable
4 method to derive reportable "therms" and "gross receipts"
5 from his billing and payment records.
6 Any taxpayer required to make payments under this Section
7 may make the payments by electronic funds transfer. The
8 Department shall adopt rules necessary to effectuate a
9 program of electronic funds transfer.
10 If the taxpayer's average monthly tax liability to the
11 Department does not exceed $100.00, the Department may
12 authorize his returns to be filed on a quarter annual basis,
13 with the return for January, February and March of a given
14 year being due by April 30 of such year; with the return for
15 April, May and June of a given year being due by July 31 of
16 such year; with the return for July, August and September of
17 a given year being due by October 31 of such year, and with
18 the return for October, November and December of a given year
19 being due by January 31 of the following year.
20 If the taxpayer's average monthly tax liability to the
21 Department does not exceed $20.00, the Department may
22 authorize his returns to be filed on an annual basis, with
23 the return for a given year being due by January 31 of the
24 following year.
25 Such quarter annual and annual returns, as to form and
26 substance, shall be subject to the same requirements as
27 monthly returns.
28 Notwithstanding any other provision in this Act
29 concerning the time within which a taxpayer may file his
30 return, in the case of any taxpayer who ceases to engage in a
31 kind of business which makes him responsible for filing
32 returns under this Act, such taxpayer shall file a final
33 return under this Act with the Department not more than one
34 month after discontinuing such business.
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1 In making such return the taxpayer shall determine the
2 value of any reportable consideration other than money
3 received by him and shall include such value in his return.
4 Such determination shall be subject to review and revision by
5 the Department in the same manner as is provided in this Act
6 for the correction of returns.
7 Each taxpayer whose average monthly liability to the
8 Department under this Act was $10,000 or more during the
9 preceding calendar year, excluding the month of highest
10 liability and the month of lowest liability in such calendar
11 year, and who is not operated by a unit of local government,
12 shall make estimated payments to the Department on or before
13 the 7th, 15th, 22nd and last day of the month during which
14 tax liability to the Department is incurred in an amount not
15 less than the lower of either 22.5% of the taxpayer's actual
16 tax liability for the month or 25% of the taxpayer's actual
17 tax liability for the same calendar month of the preceding
18 year. The amount of such quarter monthly payments shall be
19 credited against the final tax liability of the taxpayer's
20 return for that month. Any outstanding credit, approved by
21 the Department, arising from the taxpayer's overpayment of
22 its final tax liability for any month may be applied to
23 reduce the amount of any subsequent quarter monthly payment
24 or credited against the final tax liability of the taxpayer's
25 return for any subsequent month. If any quarter monthly
26 payment is not paid at the time or in the amount required by
27 this Section, the taxpayer shall be liable for penalty and
28 interest on the difference between the minimum amount due as
29 a payment and the amount of such payment actually and timely
30 paid, except insofar as the taxpayer has previously made
31 payments for that month to the Department in excess of the
32 minimum payments previously due.
33 If the Director finds that the information required for
34 the making of an accurate return cannot reasonably be
HB0709 Enrolled -7- LRB9002645KDks
1 compiled by a taxpayer within 15 days after the close of the
2 calendar month for which a return is to be made, he may grant
3 an extension of time for the filing of such return for a
4 period of not to exceed 31 calendar days. The granting of
5 such an extension may be conditioned upon the deposit by the
6 taxpayer with the Department of an amount of money not
7 exceeding the amount estimated by the Director to be due with
8 the return so extended. All such deposits, including any
9 made before the effective date of this amendatory Act of 1975
10 with the Department, shall be credited against the taxpayer's
11 liabilities under this Act. If any such deposit exceeds the
12 taxpayer's present and probable future liabilities under this
13 Act, the Department shall issue to the taxpayer a credit
14 memorandum, which may be assigned by the taxpayer to a
15 similar taxpayer under this Act, in accordance with
16 reasonable rules and regulations to be prescribed by the
17 Department.
18 The taxpayer making the return provided for in this
19 Section shall, at the time of making such return, pay to the
20 Department the amount of tax imposed by this Act. All moneys
21 received by the Department under this Act shall be paid into
22 the General Revenue Fund in the State Treasury, except as
23 otherwise provided.
24 (Source: P.A. 86-953; 87-14; 87-1258.)
25 Section 10. The Public Utilities Revenue Act is amended
26 by changing Section 3 as follows:
27 (35 ILCS 620/3) (from Ch. 120, par. 470)
28 Sec. 3. Except as provided in this Section, on or before
29 the 15th day of each month, each taxpayer shall make a return
30 to the Department for the preceding calendar month, stating:
31 1. His name;
32 2. The address of his principal place of business,
HB0709 Enrolled -8- LRB9002645KDks
1 and the address of the principal place of business (if
2 that is a different address) from which he engages in the
3 business of distributing, supplying, furnishing or
4 selling electricity in this State;
5 3. The total number of kilowatt-hours for which
6 payment was received by him from customers during the
7 preceding calendar month and upon the basis of which the
8 tax is imposed;
9 4. Gross receipts which were received by him from
10 customers during the preceding calendar month from such
11 business, including budget plan and other customer-owned
12 amounts applied during such month in payment of charges
13 includible in gross receipts, and upon the basis of which
14 the tax is imposed;
15 5. Amount of tax (computed upon Items 3 and 4);
16 6. The amount of credits to which the taxpayer is
17 entitled on account of purchases made pursuant to Section
18 8-403.1 of The Public Utilities Act;
19 7. Such other reasonable information as the
20 Department may require.
21 In making such return the taxpayer may use any reasonable
22 method to derive reportable "kilowatt-hours" and "gross
23 receipts" from his billing and payment records.
24 Any taxpayer required to make payments under this Section
25 may make the payments by electronic funds transfer. The
26 Department shall adopt rules necessary to effectuate a
27 program of electronic funds transfer.
28 If the taxpayer's average monthly tax liability to the
29 Department does not exceed $100.00, the Department may
30 authorize his returns to be filed on a quarter annual basis,
31 with the return for January, February and March of a given
32 year being due by April 30 of such year; with the return for
33 April, May and June of a given year being due by July 31 of
34 such year; with the return for July, August and September of
HB0709 Enrolled -9- LRB9002645KDks
1 a given year being due by October 31 of such year, and with
2 the return for October, November and December of a given year
3 being due by January 31 of the following year.
4 If the taxpayer's average monthly tax liability to the
5 Department does not exceed $20.00, the Department may
6 authorize his returns to be filed on an annual basis, with
7 the return for a given year being due by January 31 of the
8 following year.
9 Such quarter annual and annual returns, as to form and
10 substance, shall be subject to the same requirements as
11 monthly returns.
12 Notwithstanding any other provision in this Act
13 concerning the time within which a taxpayer may file his
14 return, in the case of any taxpayer who ceases to engage in a
15 kind of business which makes him responsible for filing
16 returns under this Act, such taxpayer shall file a final
17 return under this Act with the Department not more than one
18 month after discontinuing such business.
19 In making such return the taxpayer shall determine the
20 value of any reportable consideration other than money
21 received by him and shall include such value in his return.
22 Such determination shall be subject to review and revision by
23 the Department in the same manner as is provided in this Act
24 for the correction of returns.
25 Each taxpayer whose average monthly liability to the
26 Department under this Act was $10,000 or more during the
27 preceding calendar year, excluding the month of highest
28 liability and the month of lowest liability in such calendar
29 year, and who is not operated by a unit of local government,
30 shall make estimated payments to the Department on or before
31 the 7th, 15th, 22nd and last day of the month during which
32 tax liability to the Department is incurred in an amount not
33 less than the lower of either 22.5% of the taxpayer's actual
34 tax liability for the month or 25% of the taxpayer's actual
HB0709 Enrolled -10- LRB9002645KDks
1 tax liability for the same calendar month of the preceding
2 year. The amount of such quarter monthly payments shall be
3 credited against the final tax liability of the taxpayer's
4 return for that month. Any outstanding credit, approved by
5 the Department, arising from the taxpayer's overpayment of
6 its final tax liability for any month may be applied to
7 reduce the amount of any subsequent quarter monthly payment
8 or credited against the final tax liability of the taxpayer's
9 return for any subsequent month. If any quarter monthly
10 payment is not paid at the time or in the amount required by
11 this Section, the taxpayer shall be liable for penalty and
12 interest on the difference between the minimum amount due as
13 a payment and the amount of such payment actually and timely
14 paid, except insofar as the taxpayer has previously made
15 payments for that month to the Department in excess of the
16 minimum payments previously due.
17 If the Director finds that the information required for
18 the making of an accurate return cannot reasonably be
19 compiled by a taxpayer within 15 days after the close of the
20 calendar month for which a return is to be made, he may grant
21 an extension of time for the filing of such return for a
22 period of not to exceed 31 calendar days. The granting of
23 such an extension may be conditioned upon the deposit by the
24 taxpayer with the Department of an amount of money not
25 exceeding the amount estimated by the Director to be due with
26 the return so extended. All such deposits, including any
27 heretofore made with the Department, shall be credited
28 against the taxpayer's liabilities under this Act. If any
29 such deposit exceeds the taxpayer's present and probable
30 future liabilities under this Act, the Department shall issue
31 to the taxpayer a credit memorandum, which may be assigned by
32 the taxpayer to a similar taxpayer under this Act, in
33 accordance with reasonable rules and regulations to be
34 prescribed by the Department.
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1 The taxpayer making the return provided for in this
2 Section shall, at the time of making such return, pay to the
3 Department the amount of tax imposed by this Act. All moneys
4 received by the Department under this Act shall be paid into
5 the General Revenue Fund in the State treasury, except as
6 otherwise provided.
7 (Source: P.A. 86-953; 87-14; 87-1258.)
8 Section 15. The Water Company Invested Capital Tax Act
9 is amended by changing Section 4 as follows:
10 (35 ILCS 625/4) (from Ch. 120, par. 1414)
11 Sec. 4. Annual return, collection and payment. A return
12 with respect to the tax imposed by this Act shall be made by
13 every public utility for any taxable period for which such
14 person is liable for such tax. Such return shall be made on
15 such forms as the Department shall prescribe and shall
16 contain the following information:
17 1. Taxpayer's name;
18 2. Address of taxpayer's principal place of
19 business, and address of the principal place of business
20 (if that is a different address) from which the taxpayer
21 engages in the business of distributing, supplying,
22 furnishing or selling water in this State;
23 3. The total proprietary capital and total
24 long-term debt as of the beginning and end of the taxable
25 period as set forth on the balance sheets included in the
26 taxpayer's annual report to the Illinois Commerce
27 Commission for the taxable period;
28 4. The taxpayer's base income allocable to Illinois
29 under Sections 301 and 304(a) of the "Illinois Income Tax
30 Act", for the period covered by the return;
31 5. The amount of tax due for the taxable period
32 (computed on the basis of the amounts set forth in Items
HB0709 Enrolled -12- LRB9002645KDks
1 3 and 4); and
2 6. Such other reasonable information as may be
3 required by forms or regulations prescribed by the
4 Department.
5 The returns prescribed by this Section shall be due and
6 shall be filed with the Department not later than the 15th
7 day of the third month following the close of the taxable
8 period. The taxpayer making the return herein provided for
9 shall, at the time of making such return, pay to the
10 Department the remaining amount of tax herein imposed and due
11 for the taxable period. Each taxpayer shall make estimated
12 quarterly payments on the 15th day of the third, sixth, ninth
13 and twelfth months of each taxable period. Such estimated
14 payments shall be 25% of the tax liability for the
15 immediately preceding taxable period or the tax liability
16 that would have been imposed in the immediately preceding
17 taxable period if this Act had been in effect. All moneys
18 received by the Department under this Act shall be paid into
19 the Personal Property Tax Replacement Fund in the State
20 Treasury.
21 Any taxpayer required to make payments under this Section
22 may make the payments by electronic funds transfer. The
23 Department shall adopt rules necessary to effectuate a
24 program of electronic funds transfer.
25 (Source: P.A. 87-205.)
26 Section 20. The Telecommunications Excise Tax Act is
27 amended by changing Section 6 as follows:
28 (35 ILCS 630/6) (from Ch. 120, par. 2006)
29 Sec. 6. Except as provided hereinafter in this Section,
30 on or before the 15th day of each month each retailer
31 maintaining a place of business in this State shall make a
32 return to the Department for the preceding calendar month,
HB0709 Enrolled -13- LRB9002645KDks
1 stating:
2 1. His name;
3 2. The address of his principal place of business, and
4 the address of the principal place of business (if that is a
5 different address) from which he engages in the business of
6 transmitting telecommunications;
7 3. Total amount of gross charges billed by him during
8 the preceding calendar month for providing telecommunications
9 during such calendar month;
10 4. Total amount received by him during the preceding
11 calendar month on credit extended;
12 5. Deductions allowed by law;
13 6. Gross charges which were billed by him during the
14 preceding calendar month and upon the basis of which the tax
15 is imposed;
16 7. Amount of tax (computed upon Item 6);
17 8. Such other reasonable information as the Department
18 may require.
19 Any taxpayer required to make payments under this Section
20 may make the payments by electronic funds transfer. The
21 Department shall adopt rules necessary to effectuate a
22 program of electronic funds transfer.
23 If the retailer's average monthly tax billings due to the
24 Department do not exceed $100, the Department may authorize
25 his returns to be filed on a quarter annual basis, with the
26 return for January, February and March of a given year being
27 due by April 15 of such year; with the return for April, May
28 and June of a given year being due by July 15 of such year;
29 with the return for July, August and September of a given
30 year being due by October 15 of such year; and with the
31 return of October, November and December of a given year
32 being due by January 15 of the following year.
33 Notwithstanding any other provision of this Article
34 containing the time within which a retailer may file his
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1 return, in the case of any retailer who ceases to engage in a
2 kind of business which makes him responsible for filing
3 returns under this Article, such retailer shall file a final
4 return under this Article with the Department not more than
5 one month after discontinuing such business.
6 In making such return, the retailer shall determine the
7 value of any consideration other than money received by him
8 and he shall include such value in his return. Such
9 determination shall be subject to review and revision by the
10 Department in the manner hereinafter provided for the
11 correction of returns.
12 Each retailer whose average monthly liability to the
13 Department under this Article was $10,000 or more during the
14 preceding calendar year, excluding the month of highest
15 liability and the month of lowest liability in such calendar
16 year, and who is not operated by a unit of local government,
17 shall make estimated payments to the Department on or before
18 the 7th, 15th, 22nd and last day of the month during which
19 tax collection liability to the Department is incurred in an
20 amount not less than the lower of either 22.5% of the
21 retailer's actual tax collections for the month or 25% of the
22 retailer's actual tax collections for the same calendar month
23 of the preceding year. The amount of such quarter monthly
24 payments shall be credited against the final liability of the
25 retailer's return for that month. Any outstanding credit,
26 approved by the Department, arising from the retailer's
27 overpayment of its final liability for any month may be
28 applied to reduce the amount of any subsequent quarter
29 monthly payment or credited against the final liability of
30 the retailer's return for any subsequent month. If any
31 quarter monthly payment is not paid at the time or in the
32 amount required by this Section, the retailer shall be liable
33 for penalty and interest on the difference between the
34 minimum amount due as a payment and the amount of such
HB0709 Enrolled -15- LRB9002645KDks
1 payment actually and timely paid, except insofar as the
2 retailer has previously made payments for that month to the
3 Department in excess of the minimum payments previously due.
4 If the Director finds that the information required for
5 the making of an accurate return cannot reasonably be
6 compiled by a retailer within 15 days after the close of the
7 calendar month for which a return is to be made, he may grant
8 an extension of time for the filing of such return for a
9 period of not to exceed 31 calendar days. The granting of
10 such an extension may be conditioned upon the deposit by the
11 retailer with the Department of an amount of money not
12 exceeding the amount estimated by the Director to be due with
13 the return so extended. All such deposits, including any
14 heretofore made with the Department, shall be credited
15 against the retailer's liabilities under this Article. If
16 any such deposit exceeds the retailer's present and probable
17 future liabilities under this Article, the Department shall
18 issue to the retailer a credit memorandum, which may be
19 assigned by the retailer to a similar retailer under this
20 Article, in accordance with reasonable rules and regulations
21 to be prescribed by the Department.
22 The retailer making the return herein provided for shall,
23 at the time of making such return, pay to the Department the
24 amount of tax herein imposed. On and after the effective date
25 of this Article of 1985, $1,000,000 of the moneys received by
26 the Department of Revenue pursuant to this Article shall be
27 paid each month into the Common School Fund and the remainder
28 into the General Revenue Fund.
29 (Source: P.A. 84-126.)
30 Section 25. The Illinois Municipal Code is amended by
31 changing Section 8-11-2 as follows:
32 (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
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1 Sec. 8-11-2. The corporate authorities of any
2 municipality may tax any or all of the following occupations
3 or privileges:
4 1. Persons engaged in the business of transmitting
5 messages by means of electricity or radio magnetic waves,
6 or fiber optics, at a rate not to exceed 5% of the gross
7 receipts from that business originating within the
8 corporate limits of the municipality.
9 2. Persons engaged in the business of distributing,
10 supplying, furnishing, or selling gas for use or
11 consumption within the corporate limits of a municipality
12 of 500,000 or fewer population, and not for resale, at a
13 rate not to exceed 5% of the gross receipts therefrom.
14 2a. Persons engaged in the business of
15 distributing, supplying, furnishing, or selling gas for
16 use or consumption within the corporate limits of a
17 municipality of over 500,000 population, and not for
18 resale, at a rate not to exceed 8% of the gross receipts
19 therefrom. If imposed, this tax shall be paid in monthly
20 payments.
21 3. Persons engaged in the business of distributing,
22 supplying, furnishing, or selling electricity for use or
23 consumption within the corporate limits of the
24 municipality, and not for resale, at a rate not to exceed
25 5% of the gross receipts therefrom.
26 4. Persons engaged in the business of distributing,
27 supplying, furnishing, or selling water for use or
28 consumption within the corporate limits of the
29 municipality, and not for resale, at a rate not to exceed
30 5% of the gross receipts therefrom.
31 None of the taxes authorized by this Section may be
32 imposed with respect to any transaction in interstate
33 commerce or otherwise to the extent to which the business may
34 not, under the constitution and statutes of the United
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1 States, be made the subject of taxation by this State or any
2 political sub-division thereof; nor shall any persons engaged
3 in the business of distributing, supplying, furnishing, or
4 selling gas, water, or electricity, or engaged in the
5 business of transmitting messages be subject to taxation
6 under the provisions of this Section for those transactions
7 that are or may become subject to taxation under the
8 provisions of the "Municipal Retailers' Occupation Tax Act"
9 authorized by Section 8-11-1; nor shall any tax authorized by
10 this Section be imposed upon any person engaged in a business
11 unless the tax is imposed in like manner and at the same rate
12 upon all persons engaged in businesses of the same class in
13 the municipality, whether privately or municipally owned or
14 operated.
15 Any of the taxes enumerated in this Section may be in
16 addition to the payment of money, or value of products or
17 services furnished to the municipality by the taxpayer as
18 compensation for the use of its streets, alleys, or other
19 public places, or installation and maintenance therein,
20 thereon or thereunder of poles, wires, pipes or other
21 equipment used in the operation of the taxpayer's business.
22 (a) If the corporate authorities of any home rule
23 municipality have adopted an ordinance that imposed a tax on
24 public utility customers, between July 1, 1971, and October
25 1, 1981, on the good faith belief that they were exercising
26 authority pursuant to Section 6 of Article VII of the 1970
27 Illinois Constitution, that action of the corporate
28 authorities shall be declared legal and valid,
29 notwithstanding a later decision of a judicial tribunal
30 declaring the ordinance invalid. No municipality shall be
31 required to rebate, refund, or issue credits for any taxes
32 described in this paragraph, and those taxes shall be deemed
33 to have been levied and collected in accordance with the
34 Constitution and laws of this State.
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1 (b) In any case in which (i) prior to October 19, 1979,
2 the corporate authorities of any municipality have adopted an
3 ordinance imposing a tax authorized by this Section (or by
4 the predecessor provision of the "Revised Cities and Villages
5 Act") and have explicitly or in practice interpreted gross
6 receipts to include either charges added to customers' bills
7 pursuant to the provision of paragraph (a) of Section 36 of
8 the Public Utilities Act or charges added to customers' bills
9 by taxpayers who are not subject to rate regulation by the
10 Illinois Commerce Commission for the purpose of recovering
11 any of the tax liabilities or other amounts specified in such
12 paragraph (a) of Section 36 of that Act, and (ii) on or after
13 October 19, 1979, a judicial tribunal has construed gross
14 receipts to exclude all or part of those charges, then
15 neither those municipality nor any taxpayer who paid the tax
16 shall be required to rebate, refund, or issue credits for any
17 tax imposed or charge collected from customers pursuant to
18 the municipality's interpretation prior to October 19, 1979.
19 This paragraph reflects a legislative finding that it would
20 be contrary to the public interest to require a municipality
21 or its taxpayers to refund taxes or charges attributable to
22 the municipality's more inclusive interpretation of gross
23 receipts prior to October 19, 1979, and is not intended to
24 prescribe or limit judicial construction of this Section. The
25 legislative finding set forth in this subsection does not
26 apply to taxes imposed after the effective date of this
27 amendatory Act of 1995.
28 (c) (Blank).
29 (d) For the purpose of the taxes enumerated in this
30 Section:
31 "Gross receipts" means the consideration received for the
32 transmission of messages, the consideration received for
33 distributing, supplying, furnishing or selling gas for use or
34 consumption and not for resale, and the consideration
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1 received for distributing, supplying, furnishing or selling
2 electricity for use or consumption and not for resale, and
3 the consideration received for distributing, supplying,
4 furnishing or selling water for use or consumption and not
5 for resale, and for all services rendered in connection
6 therewith valued in money, whether received in money or
7 otherwise, including cash, credit, services and property of
8 every kind and material and for all services rendered
9 therewith, and shall be determined without any deduction on
10 account of the cost of transmitting such messages, without
11 any deduction on account of the cost of the service, product
12 or commodity supplied, the cost of materials used, labor or
13 service cost, or any other expenses whatsoever. "Gross
14 receipts" shall not include that portion of the consideration
15 received for distributing, supplying, furnishing, or selling
16 gas, electricity, or water to, or for the transmission of
17 messages for, business enterprises described in paragraph (e)
18 of this Section to the extent and during the period in which
19 the exemption authorized by paragraph (e) is in effect or for
20 school districts or units of local government described in
21 paragraph (f) during the period in which the exemption
22 authorized in paragraph (f) is in effect.
23 For utility bills issued on or after May 1, 1996, but
24 before May 1, 1997, and for receipts from those utility
25 bills, "gross receipts" does not include one-third of (i)
26 amounts added to customers' bills under Section 9-222 of the
27 Public Utilities Act, or (ii) amounts added to customers'
28 bills by taxpayers who are not subject to rate regulation by
29 the Illinois Commerce Commission for the purpose of
30 recovering any of the tax liabilities described in Section
31 9-222 of the Public Utilities Act. For utility bills issued
32 on or after May 1, 1997, but before May 1, 1998, and for
33 receipts from those utility bills, "gross receipts" does not
34 include two-thirds of (i) amounts added to customers' bills
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1 under Section 9-222 of the Public Utilities Act, or (ii)
2 amount added to customers' bills by taxpayers who are not
3 subject to rate regulation by the Illinois Commerce
4 Commission for the purpose of recovering any of the tax
5 liabilities described in Section 9-222 of the Public
6 Utilities Act. For utility bills issued on or after May 1,
7 1998, and for receipts from those utility bills, "gross
8 receipts" does not include (i) amounts added to customers'
9 bills under Section 9-222 of the Public Utilities Act, or
10 (ii) amounts added to customers' bills by taxpayers who are
11 not subject to rate regulation by the Illinois Commerce
12 Commission for the purpose of recovering any of the tax
13 liabilities described in Section 9-222 of the Public
14 Utilities Act.
15 For purposes of this Section "gross receipts" shall not
16 include (i) amounts added to customers' bills under Section
17 9-221 of the Public Utilities Act, or (ii) charges added to
18 customers' bills to recover the surcharge imposed under the
19 Emergency Telephone System Act. This paragraph is not
20 intended to nor does it make any change in the meaning of
21 "gross receipts" for the purposes of this Section, but is
22 intended to remove possible ambiguities, thereby confirming
23 the existing meaning of "gross receipts" prior to the
24 effective date of this amendatory Act of 1995.
25 The words "transmitting messages", in addition to the
26 usual and popular meaning of person to person communication,
27 shall include the furnishing, for a consideration, of
28 services or facilities (whether owned or leased), or both, to
29 persons in connection with the transmission of messages where
30 those persons do not, in turn, receive any consideration in
31 connection therewith, but shall not include such furnishing
32 of services or facilities to persons for the transmission of
33 messages to the extent that any such services or facilities
34 for the transmission of messages are furnished for a
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1 consideration, by those persons to other persons, for the
2 transmission of messages.
3 "Person" as used in this Section means any natural
4 individual, firm, trust, estate, partnership, association,
5 joint stock company, joint adventure, corporation, municipal
6 corporation or political subdivision of this State, or a
7 receiver, trustee, guardian or other representative appointed
8 by order of any court.
9 "Public utility" shall have the meaning ascribed to it in
10 Section 3-105 of the Public Utilities Act and shall include
11 telecommunications carriers as defined in Section 13-202 of
12 that Act.
13 In the case of persons engaged in the business of
14 transmitting messages through the use of mobile equipment,
15 such as cellular phones and paging systems, the gross
16 receipts from the business shall be deemed to originate
17 within the corporate limits of a municipality only if the
18 address to which the bills for the service are sent is within
19 those corporate limits. If, however, that address is not
20 located within a municipality that imposes a tax under this
21 Section, then (i) if the party responsible for the bill is
22 not an individual, the gross receipts from the business shall
23 be deemed to originate within the corporate limits of the
24 municipality where that party's principal place of business
25 in Illinois is located, and (ii) if the party responsible for
26 the bill is an individual, the gross receipts from the
27 business shall be deemed to originate within the corporate
28 limits of the municipality where that party's principal
29 residence in Illinois is located.
30 (e) Any municipality that imposes taxes upon public
31 utilities pursuant to this Section whose territory includes
32 any part of an enterprise zone or federally designated
33 Foreign Trade Zone or Sub-Zone may, by a majority vote of its
34 corporate authorities, exempt from those taxes for a period
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1 not exceeding 20 years any specified percentage of gross
2 receipts of public utilities received from business
3 enterprises that:
4 (1) either (i) make investments that cause the
5 creation of a minimum of 200 full-time equivalent jobs in
6 Illinois, (ii) make investments of at least $175,000,000
7 that cause the creation of a minimum of 150 full-time
8 equivalent jobs in Illinois, or (iii) or (ii) make
9 investments that cause the retention of a minimum of
10 1,000 full-time jobs in Illinois; and
11 (2) are either (i) located in an Enterprise Zone
12 established pursuant to the Illinois Enterprise Zone Act
13 or (ii) Department of Commerce and Community Affairs
14 designated High Impact Businesses located in a federally
15 designated Foreign Trade Zone or Sub-Zone; and
16 (3) are certified by the Department of Commerce and
17 Community Affairs as complying with the requirements
18 specified in clauses (1) and (2) of this paragraph (e).
19 Upon adoption of the ordinance authorizing the exemption,
20 the municipal clerk shall transmit a copy of that ordinance
21 to the Department of Commerce and Community Affairs. The
22 Department of Commerce and Community Affairs shall determine
23 whether the business enterprises located in the municipality
24 meet the criteria prescribed in this paragraph. If the
25 Department of Commerce and Community Affairs determines that
26 the business enterprises meet the criteria, it shall grant
27 certification. The Department of Commerce and Community
28 Affairs shall act upon certification requests within 30 days
29 after receipt of the ordinance.
30 Upon certification of the business enterprise by the
31 Department of Commerce and Community Affairs, the Department
32 of Commerce and Community Affairs shall notify the Department
33 of Revenue of the certification. The Department of Revenue
34 shall notify the public utilities of the exemption status of
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1 the gross receipts received from the certified business
2 enterprises. Such exemption status shall be effective within
3 3 months after certification.
4 (f) A municipality that imposes taxes upon public
5 utilities under this Section and whose territory includes
6 part of another unit of local government or a school district
7 may by ordinance exempt the other unit of local government or
8 school district from those taxes.
9 (g) The amendment of this Section by Public Act 84-127
10 shall take precedence over any other amendment of this
11 Section by any other amendatory Act passed by the 84th
12 General Assembly before the effective date of Public Act
13 84-127.
14 (h) In any case in which, before July 1, 1992, a person
15 engaged in the business of transmitting messages through the
16 use of mobile equipment, such as cellular phones and paging
17 systems, has determined the municipality within which the
18 gross receipts from the business originated by reference to
19 the location of its transmitting or switching equipment, then
20 (i) neither the municipality to which tax was paid on that
21 basis nor the taxpayer that paid tax on that basis shall be
22 required to rebate, refund, or issue credits for any such tax
23 or charge collected from customers to reimburse the taxpayer
24 for the tax and (ii) no municipality to which tax would have
25 been paid with respect to those gross receipts if the
26 provisions of this amendatory Act of 1991 had been in effect
27 before July 1, 1992, shall have any claim against the
28 taxpayer for any amount of the tax.
29 (Source: P.A. 88-132; 89-325, eff. 1-1-96.)
30 Section 30. The Public Utilities Act is amended by
31 changing Section 9-222.1 as follows:
32 (220 ILCS 5/9-222.1) (from Ch. 111 2/3, par. 9-222.1)
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1 Sec. 9-222.1. A business enterprise which is located
2 within an area designated by a county or municipality as an
3 enterprise zone pursuant to the Illinois Enterprise Zone Act
4 or located in a federally designated Foreign Trade Zone or
5 Sub-Zone shall be exempt from the additional charges added to
6 the business enterprise's utility bills as a pass-on of
7 municipal and State utility taxes under Sections 9-221 and
8 9-222 of this Act, to the extent such charges are exempted by
9 ordinance adopted in accordance with paragraph (e) of Section
10 8-11-2 of the Illinois Municipal Code in the case of
11 municipal utility taxes, and to the extent such charges are
12 exempted by the percentage specified by the Department of
13 Commerce and Community Affairs in the case of State utility
14 taxes, provided such business enterprise meets the following
15 criteria:
16 (1) it either (i) makes investments which cause the
17 creation of a minimum of 200 full-time equivalent jobs in
18 Illinois; (ii) makes investments of at least $175,000,000
19 which cause the creation of a minimum of 150 full-time
20 equivalent jobs in Illinois; or (iii) or (ii) makes
21 investments which cause the retention of a minimum of
22 1,000 full-time jobs in Illinois; and
23 (2) it is either (i) located in an Enterprise Zone
24 established pursuant to the Illinois Enterprise Zone Act
25 or (ii) it is located in a federally designated Foreign
26 Trade Zone or Sub-Zone and is designated a High Impact
27 Business by the Department of Commerce and Community
28 Affairs; and
29 (3) it is certified by the Department of Commerce
30 and Community Affairs as complying with the requirements
31 specified in clauses (1) and (2) of this Section.
32 The Department of Commerce and Community Affairs shall
33 determine the period during which such exemption from the
34 charges imposed under Section 9-222 is in effect which shall
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1 not exceed 20 years and shall specify the percentage of the
2 exemption from State utility taxes.
3 The Department of Commerce and Community Affairs shall
4 have the power to promulgate rules and regulations to carry
5 out the provisions of this Section including procedures for
6 complying with the requirements specified in clauses (1) and
7 (2) of this Section and procedures for applying for the
8 exemptions authorized under this Section; to define the
9 amounts and types of eligible investments which business
10 enterprises must make in order to receive State utility tax
11 exemptions pursuant to Sections 9-222 and 9-222.1 of this
12 Act; to approve such utility tax exemptions for business
13 enterprises whose investments are not yet placed in service;
14 and to require that business enterprises granted tax
15 exemptions repay the exempted tax should the business
16 enterprise fail to comply with the terms and conditions of
17 the certification. However, no business enterprise shall be
18 required, as a condition for certification under clause (3)
19 of this Section, to attest that its decision to invest under
20 clause (1) of this Section and to locate under clause (2) of
21 this Section is predicated upon the availability of the
22 exemptions authorized by this Section.
23 A business enterprise shall be exempt, in whole or in
24 part, from the pass-on charges of municipal utility taxes
25 imposed under Section 9-221, only if it meets the criteria
26 specified in clauses (1) through (3) of this Section and the
27 municipality has adopted an ordinance authorizing the
28 exemption under paragraph (e) of Section 8-11-2 of the
29 Illinois Municipal Code. Upon certification of the business
30 enterprises by the Department of Commerce and Community
31 Affairs, the Department of Commerce and Community Affairs
32 shall notify the Department of Revenue of such certification.
33 The Department of Revenue shall notify the public utilities
34 of the exemption status of business enterprises from the
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1 pass-on charges of State and municipal utility taxes. Such
2 exemption status shall be effective within 3 months after
3 certification of the business enterprise.
4 (Source: P.A. 87-535; 87-848; 87-895; 87-1219.)
5 Section 99. Effective date. This Act takes effect upon
6 becoming law.