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91_HB3425
LRB9110850SMdv
1 AN ACT to amend the Illinois Municipal Code by adding
2 Section 8-11-21.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Municipal Code is amended by
6 adding Section 8-11-21 as follows:
7 (65 ILCS 5/8-11-21 new)
8 Sec. 8-11-21. Municipal gas use tax.
9 (a) The corporate authorities of any municipality in
10 this State may impose a use tax on the act or privilege of
11 using or consuming gas within the corporate limits of that
12 municipality that is purchased in a sale at retail. The
13 ultimate incidence of and liability for payment of the tax is
14 on the retail purchaser and nothing in this Section shall be
15 construed to impose a tax on the occupation of distributing,
16 supplying, furnishing, selling, or transporting gas. The
17 rate of the use tax on gas imposed on a retail purchaser by a
18 municipality under this Section shall not exceed $0.02 per
19 therm of gas used or consumed.
20 (b) The use tax authorized by subsection (a) of this
21 Section may be levied only if the municipality does not then
22 have in effect an occupation tax imposed on persons engaged
23 in the business of distributing, supplying, furnishing, or
24 selling gas, as authorized by Section 8-11-2.
25 (c) The retail purchaser shall pay the use tax
26 authorized by this Section, measured by the amount of therms
27 of all gas delivered to the retail purchaser's premises, and
28 the use tax shall be collected by the public utility
29 maintaining a place of business in this State and making or
30 effectuating the final delivery of the gas subject to the use
31 tax to the retail purchaser. Any use tax required to be
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1 collected pursuant to an ordinance authorized by this Section
2 and any such tax collected by a public utility shall
3 constitute a debt owed by the public utility to the
4 municipality. Public utilities shall collect the tax from the
5 retail purchaser by adding the tax to the gross charge for
6 the act or privilege of delivering the gas, in the manner
7 prescribed by the municipality. The tax authorized by this
8 Section shall constitute a debt of the retail purchaser to
9 the public utility that delivers the gas until paid and, if
10 unpaid, is recoverable at law in the same manner as the
11 original charge for the delivery services. If the public
12 utility fails to collect the use tax from the taxpayer, then
13 the taxpayer is required to pay the use tax directly to the
14 municipality in the manner provided by the municipality. The
15 municipality imposing the use tax shall provide for its
16 administration and enforcement.
17 (d) For purposes of the use tax described by this
18 Section:
19 "Person" means any individual, firm, trust, estate,
20 partnership, association, joint stock company, joint
21 venture, corporation, limited liability company,
22 municipal corporation, or political subdivision of this
23 State or a receiver, trustee, conservator, or other
24 representative appointed by order of any court.
25 "Public utility" means a public utility as defined
26 in Section 3-105 of the Public Utilities Act.
27 "Retail purchaser" means any person who purchases
28 gas in a sale at retail.
29 "Sale at retail" means any sale of gas by a retailer
30 to a person for use or consumption, and not for resale.
31 For this purpose, the term "retailer" means any person
32 engaged in the business of distribution, supplying,
33 furnishing, or selling gas.
34 (e) Public utilities filing tax returns with a
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1 municipality under this Section shall, at the time of filing
2 the return, pay to the municipality the amount of the tax
3 collected under this Section, less a commission of 3.00%,
4 which is allowed to reimburse the public utility for the
5 expenses incurred in keeping records, billing the customer,
6 preparing and filing returns, remitting the tax, and
7 supplying data to the municipality upon request. No
8 commission may be claimed by a public utility for tax not
9 timely remitted to the municipality.
10 (f) If a person who receives gas in a municipality that
11 imposes a use tax on gas under this Section claims to be a
12 reseller of the gas and not a retail purchaser, that person
13 shall apply to the municipality for a resale number. The
14 applicant shall state facts that show the municipality why
15 the applicant is not liable for tax under any ordinance
16 authorized by this Section on the use of gas and shall
17 furnish such additional information as the municipality may
18 reasonably require. Upon approval of the application, the
19 municipality shall assign a resale number to the applicant
20 and shall certify that number to the applicant. The
21 municipality may cancel any number that is obtained through
22 misrepresentation, that is used to use or consume gas which
23 in fact is not for resale, or that no longer applies because
24 of the person's having discontinued the making of resales.
25 Except as otherwise provided in this Section, the act or
26 privilege of using or consuming gas in this State shall not
27 be made tax-free on the ground of being delivered for resale
28 unless the person has an active resale number from the
29 municipality and furnishes that number to the public utility
30 in connection with certifying to the public utility that any
31 delivery to that person is non-taxable because of being a
32 delivery for resale.
33 (g) A municipality that imposes a use tax upon gas under
34 this Section and whose territory includes all or part of
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1 another unit of local government or a school district may, by
2 ordinance, exempt the other unit of local government or
3 school district from those taxes.
4 (h) A municipality that imposes a use tax upon gas under
5 this Section may, by ordinance, (i) reduce the rate of the
6 tax for persons 65 years of age or older or (ii) exempt
7 persons 65 years of age or older from the tax. Taxes related
8 to such rate reductions or exemptions shall be rebated from
9 the municipality directly to persons qualified for the rate
10 reduction or exemption as determined by the municipality's
11 ordinance.