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| [ Introduced ] | [ Senate Amendment 001 ] |
91_SB0006eng SB6 Engrossed LRB9100929PTpk 1 AN ACT to amend the Illinois Municipal Code by changing 2 Section 8-11-2. 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 changing Section 8-11-2 as follows: 7 (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2) 8 Sec. 8-11-2. The corporate authorities of any 9 municipality may tax any or all of the following occupations 10 or privileges: 11 1. Persons engaged in the business of transmitting 12 messages by means of electricity or radio magnetic waves, 13 or fiber optics, at a rate not to exceed 5% of the gross 14 receipts from that business originating within the 15 corporate limits of the municipality. 16 2. Persons engaged in the business of distributing, 17 supplying, furnishing, or selling gas for use or 18 consumption within the corporate limits of a municipality 19 of 500,000 or fewer population, and not for resale, at a 20 rate not to exceed 5% of the gross receipts therefrom. 21 2a. Persons engaged in the business of 22 distributing, supplying, furnishing, or selling gas for 23 use or consumption within the corporate limits of a 24 municipality of over 500,000 population, and not for 25 resale, at a rate not to exceed 8% of the gross receipts 26 therefrom. If imposed, this tax shall be paid in monthly 27 payments. 28 3. The privilege of using or consuming electricity 29 acquired in a purchase at retail and used or consumed 30 within the corporate limits of the municipality at rates 31 not to exceed the following maximum rates, calculated on SB6 Engrossed -2- LRB9100929PTpk 1 a monthly basis for each purchaser: 2 (i) For the first 2,000 kilowatt-hours used or 3 consumed in a month; 0.61 cents per kilowatt-hour; 4 (ii) For the next 48,000 kilowatt-hours used or 5 consumed in a month; 0.40 cents per kilowatt-hour; 6 (iii) For the next 50,000 kilowatt-hours used or 7 consumed in a month; 0.36 cents per kilowatt-hour; 8 (iv) For the next 400,000 kilowatt-hours used or 9 consumed in a month; 0.35 cents per kilowatt-hour; 10 (v) For the next 500,000 kilowatt-hours used or 11 consumed in a month; 0.34 cents per kilowatt-hour; 12 (vi) For the next 2,000,000 kilowatt-hours used or 13 consumed in a month; 0.32 cents per kilowatt-hour; 14 (vii) For the next 2,000,000 kilowatt-hours used or 15 consumed in a month; 0.315 cents per kilowatt-hour; 16 (viii) For the next 5,000,000 kilowatt-hours used 17 or consumed in a month; 0.31 cents per kilowatt-hour; 18 (ix) For the next 10,000,000 kilowatt-hours used or 19 consumed in a month; 0.305 cents per kilowatt-hour; and 20 (x) For all electricity used or consumed in excess 21 of 20,000,000 kilowatt-hours in a month, 0.30 cents per 22 kilowatt-hour. 23 If a municipality imposes a tax at rates lower than 24 either the maximum rates specified in this Section or the 25 alternative maximum rates promulgated by the Illinois 26 Commerce Commission, as provided below, the tax rates 27 shall be imposed upon the kilowatt hour categories set 28 forth above with the same proportional relationship as 29 that which exists among such maximum rates. 30 Notwithstanding the foregoing, until December 31, 2008, 31 no municipality shall establish rates that are in excess 32 of rates reasonably calculated to produce revenues that 33 equal the maximum total revenues such municipality could 34 have received under the tax authorized by this SB6 Engrossed -3- LRB9100929PTpk 1 subparagraph in the last full calendar year prior to the 2 effective date of Section 65 of this amendatory Act of 3 1997; provided that this shall not be a limitation on the 4 amount of tax revenues actually collected by such 5 municipality. 6 Upon the request of the corporate authorities of a 7 municipality, the Illinois Commerce Commission shall, 8 within 90 days after receipt of such request, promulgate 9 alternative rates for each of these kilowatt-hour 10 categories that will reflect, as closely as reasonably 11 practical for that municipality, the distribution of the 12 tax among classes of purchasers as if the tax were based 13 on a uniform percentage of the purchase price of 14 electricity. A municipality that has adopted an 15 ordinance imposing a tax pursuant to subparagraph 3 as it 16 existed prior to the effective date of Section 65 of this 17 amendatory Act of 1997 may, rather than imposing the tax 18 permitted by this amendatory Act of 1997, continue to 19 impose the tax pursuant to that ordinance with respect to 20 gross receipts received from residential customers 21 through July 31, 1999, and with respect to gross receipts 22 from any non-residential customer until the first bill 23 issued to such customer for delivery services in 24 accordance with Section 16-104 of the Public Utilities 25 Act but in no case later than the last bill issued to 26 such customer before December 31, 2000. No ordinance 27 imposing the tax permitted by this amendatory Act of 1997 28 shall be applicable to any non-residential customer until 29 the first bill issued to such customer for delivery 30 services in accordance with Section 16-104 of the Public 31 Utilities Act but in no case later than the last bill 32 issued to such non-residential customer before December 33 31, 2000. 34 The taxes imposed under this subparagraph 3 shall SB6 Engrossed -4- LRB9100929PTpk 1 not be in addition to the tax authorized by subsection 2 (c-5), but rather shall be an alternative method to 3 impose the tax. 4 4. Persons engaged in the business of distributing, 5 supplying, furnishing, or selling water for use or 6 consumption within the corporate limits of the 7 municipality, and not for resale, at a rate not to exceed 8 5% of the gross receipts therefrom. 9 None of the taxes authorized by this Section may be 10 imposed with respect to any transaction in interstate 11 commerce or otherwise to the extent to which the business or 12 privilege may not, under the constitution and statutes of the 13 United States, be made the subject of taxation by this State 14 or any political sub-division thereof; nor shall any persons 15 engaged in the business of distributing, supplying, 16 furnishing, selling or transmitting gas, water, or 17 electricity, or engaged in the business of transmitting 18 messages, or using or consuming electricity acquired in a 19 purchase at retail, be subject to taxation under the 20 provisions of this Section for those transactions that are or 21 may become subject to taxation under the provisions of the 22 "Municipal Retailers' Occupation Tax Act" authorized by 23 Section 8-11-1; nor shall any tax authorized by this Section 24 be imposed upon any person engaged in a business or on any 25 privilege unless the tax is imposed in like manner and at the 26 same rate upon all persons engaged in businesses of the same 27 class in the municipality, whether privately or municipally 28 owned or operated, or exercising the same privilege within 29 the municipality. 30 Any of the taxes enumerated in this Section may be in 31 addition to the payment of money, or value of products or 32 services furnished to the municipality by the taxpayer as 33 compensation for the use of its streets, alleys, or other 34 public places, or installation and maintenance therein, SB6 Engrossed -5- LRB9100929PTpk 1 thereon or thereunder of poles, wires, pipes or other 2 equipment used in the operation of the taxpayer's business. 3 (a) If the corporate authorities of any home rule 4 municipality have adopted an ordinance that imposed a tax on 5 public utility customers, between July 1, 1971, and October 6 1, 1981, on the good faith belief that they were exercising 7 authority pursuant to Section 6 of Article VII of the 1970 8 Illinois Constitution, that action of the corporate 9 authorities shall be declared legal and valid, 10 notwithstanding a later decision of a judicial tribunal 11 declaring the ordinance invalid. No municipality shall be 12 required to rebate, refund, or issue credits for any taxes 13 described in this paragraph, and those taxes shall be deemed 14 to have been levied and collected in accordance with the 15 Constitution and laws of this State. 16 (b) In any case in which (i) prior to October 19, 1979, 17 the corporate authorities of any municipality have adopted an 18 ordinance imposing a tax authorized by this Section (or by 19 the predecessor provision of the "Revised Cities and Villages 20 Act") and have explicitly or in practice interpreted gross 21 receipts to include either charges added to customers' bills 22 pursuant to the provision of paragraph (a) of Section 36 of 23 the Public Utilities Act or charges added to customers' bills 24 by taxpayers who are not subject to rate regulation by the 25 Illinois Commerce Commission for the purpose of recovering 26 any of the tax liabilities or other amounts specified in such 27 paragraph (a) of Section 36 of that Act, and (ii) on or after 28 October 19, 1979, a judicial tribunal has construed gross 29 receipts to exclude all or part of those charges, then 30 neither those municipality nor any taxpayer who paid the tax 31 shall be required to rebate, refund, or issue credits for any 32 tax imposed or charge collected from customers pursuant to 33 the municipality's interpretation prior to October 19, 1979. 34 This paragraph reflects a legislative finding that it would SB6 Engrossed -6- LRB9100929PTpk 1 be contrary to the public interest to require a municipality 2 or its taxpayers to refund taxes or charges attributable to 3 the municipality's more inclusive interpretation of gross 4 receipts prior to October 19, 1979, and is not intended to 5 prescribe or limit judicial construction of this Section. The 6 legislative finding set forth in this subsection does not 7 apply to taxes imposed after the effective date of this 8 amendatory Act of 1995. 9 (c) The tax authorized by subparagraph 3 shall be 10 collected from the purchaser by the person maintaining a 11 place of business in this State who delivers the electricity 12 to the purchaser. This tax shall constitute a debt of the 13 purchaser to the person who delivers the electricity to the 14 purchaser and if unpaid, is recoverable in the same manner as 15 the original charge for delivering the electricity. Any tax 16 required to be collected pursuant to an ordinance authorized 17 by subparagraph 3 and any such tax collected by a person 18 delivering electricity shall constitute a debt owed to the 19 municipality by such person delivering the electricity, 20 provided, that the person delivering electricity shall be 21 allowed credit for such tax related to deliveries of 22 electricity the charges for which are written off as 23 uncollectible, and provided further, that if such charges are 24 thereafter collected, the delivering supplier shall be 25 obligated to remit such tax. For purposes of this subsection 26 (c), any partial payment not specifically identified by the 27 purchaser shall be deemed to be for the delivery of 28 electricity. Persons delivering electricity shall collect the 29 tax from the purchaser by adding such tax to the gross charge 30 for delivering the electricity, in the manner prescribed by 31 the municipality. Persons delivering electricity shall also 32 be authorized to add to such gross charge an amount equal to 33 3% of the tax to reimburse the person delivering electricity 34 for the expenses incurred in keeping records, billing SB6 Engrossed -7- LRB9100929PTpk 1 customers, preparing and filing returns, remitting the tax 2 and supplying data to the municipality upon request. If the 3 person delivering electricity fails to collect the tax from 4 the purchaser, then the purchaser shall be required to pay 5 the tax directly to the municipality in the manner prescribed 6 by the municipality. Persons delivering electricity who file 7 returns pursuant to this paragraph (c) shall, at the time of 8 filing such return, pay the municipality the amount of the 9 tax collected pursuant to subparagraph 3. 10 (c-5) A municipality may, by ordinance, allow a 11 purchaser for non-residential electrical use (i) to elect to 12 register with the municipality as a self-assessing purchaser 13 in relation to payment of the tax imposed by subparagraph 3, 14 on the privilege of using or consuming electricity, and (ii) 15 to pay the tax imposed by subparagraph 3 directly to the 16 municipality on the basis of the uniform percentage of the 17 gross purchase price of electricity purchased at retail and 18 used in the municipality rather than paying the tax to the 19 purchaser's delivering supplier. The maximum rate of tax for 20 a self-assessing purchaser may not exceed 5% and the minimum 21 rate of tax shall be no less than and, until December 31, 22 2008, the maximum rate of tax shall be no more than, the rate 23 the municipality applied in the last full calendar year prior 24 to the effective date of Section 65 of Public Act 90-561 25 (August 1, 1998) based on the purchase price of the 26 electricity purchased at retail and used in the community as 27 calculated on a monthly basis for each purchaser. The 28 municipality shall establish by ordinance the requirements 29 for (i) the voluntary election, registration, and termination 30 of a self-assessing purchaser, (ii) direct return and payment 31 of the taxes to the municipality by a self-assessing 32 purchaser, and (iii) the rate of tax applied, which shall be 33 the percent of the gross purchase price as provided in this 34 subsection up to but not exceeding 5%. The taxes imposed SB6 Engrossed -8- LRB9100929PTpk 1 under this subsection (c-5) shall not be in addition to the 2 tax authorized by subparagraph 3, but rather shall be an 3 alternative method to impose the tax. 4 (d) For the purpose of the taxes enumerated in this 5 Section: 6 "Gross receipts" means the consideration received for the 7 transmission of messages, the consideration received for 8 distributing, supplying, furnishing or selling gas for use or 9 consumption and not for resale, and the consideration 10 received for distributing, supplying, furnishing or selling 11 water for use or consumption and not for resale, and for all 12 services rendered in connection therewith valued in money, 13 whether received in money or otherwise, including cash, 14 credit, services and property of every kind and material and 15 for all services rendered therewith, and shall be determined 16 without any deduction on account of the cost of transmitting 17 such messages, without any deduction on account of the cost 18 of the service, product or commodity supplied, the cost of 19 materials used, labor or service cost, or any other expenses 20 whatsoever. "Gross receipts" shall not include that portion 21 of the consideration received for distributing, supplying, 22 furnishing, or selling gas or water to, or for the 23 transmission of messages for, business enterprises described 24 in paragraph (e) of this Section to the extent and during the 25 period in which the exemption authorized by paragraph (e) is 26 in effect or for school districts or units of local 27 government described in paragraph (f) during the period in 28 which the exemption authorized in paragraph (f) is in effect. 29 "Gross receipts" shall not include amounts paid by 30 telecommunications retailers under the Telecommunications 31 Municipal Infrastructure Maintenance Fee Act. 32 For utility bills issued on or after May 1, 1996, but 33 before May 1, 1997, and for receipts from those utility 34 bills, "gross receipts" does not include one-third of (i) SB6 Engrossed -9- LRB9100929PTpk 1 amounts added to customers' bills under Section 9-222 of the 2 Public Utilities Act, or (ii) amounts added to customers' 3 bills by taxpayers who are not subject to rate regulation by 4 the Illinois Commerce Commission for the purpose of 5 recovering any of the tax liabilities described in Section 6 9-222 of the Public Utilities Act. For utility bills issued 7 on or after May 1, 1997, but before May 1, 1998, and for 8 receipts from those utility bills, "gross receipts" does not 9 include two-thirds of (i) amounts added to customers' bills 10 under Section 9-222 of the Public Utilities Act, or (ii) 11 amount added to customers' bills by taxpayers who are not 12 subject to rate regulation by the Illinois Commerce 13 Commission for the purpose of recovering any of the tax 14 liabilities described in Section 9-222 of the Public 15 Utilities Act. For utility bills issued on or after May 1, 16 1998, and for receipts from those utility bills, "gross 17 receipts" does not include (i) amounts added to customers' 18 bills under Section 9-222 of the Public Utilities Act, or 19 (ii) amounts added to customers' bills by taxpayers who are 20 not subject to rate regulation by the Illinois Commerce 21 Commission for the purpose of recovering any of the tax 22 liabilities described in Section 9-222 of the Public 23 Utilities Act. 24 For purposes of this Section "gross receipts" shall not 25 include (i) amounts added to customers' bills under Section 26 9-221 of the Public Utilities Act, or (ii) charges added to 27 customers' bills to recover the surcharge imposed under the 28 Emergency Telephone System Act. This paragraph is not 29 intended to nor does it make any change in the meaning of 30 "gross receipts" for the purposes of this Section, but is 31 intended to remove possible ambiguities, thereby confirming 32 the existing meaning of "gross receipts" prior to the 33 effective date of this amendatory Act of 1995. 34 The words "transmitting messages", in addition to the SB6 Engrossed -10- LRB9100929PTpk 1 usual and popular meaning of person to person communication, 2 shall include the furnishing, for a consideration, of 3 services or facilities (whether owned or leased), or both, to 4 persons in connection with the transmission of messages where 5 those persons do not, in turn, receive any consideration in 6 connection therewith, but shall not include such furnishing 7 of services or facilities to persons for the transmission of 8 messages to the extent that any such services or facilities 9 for the transmission of messages are furnished for a 10 consideration, by those persons to other persons, for the 11 transmission of messages. 12 "Person" as used in this Section means any natural 13 individual, firm, trust, estate, partnership, association, 14 joint stock company, joint adventure, corporation, limited 15 liability company, municipal corporation, the State or any of 16 its political subdivisions, any State university created by 17 statute, or a receiver, trustee, guardian or other 18 representative appointed by order of any court. 19 "Person maintaining a place of business in this State" 20 shall mean any person having or maintaining within this 21 State, directly or by a subsidiary or other affiliate, an 22 office, generation facility, distribution facility, 23 transmission facility, sales office or other place of 24 business, or any employee, agent, or other representative 25 operating within this State under the authority of the person 26 or its subsidiary or other affiliate, irrespective of whether 27 such place of business or agent or other representative is 28 located in this State permanently or temporarily, or whether 29 such person, subsidiary or other affiliate is licensed or 30 qualified to do business in this State. 31 "Public utility" shall have the meaning ascribed to it in 32 Section 3-105 of the Public Utilities Act and shall include 33 telecommunications carriers as defined in Section 13-202 of 34 that Act and alternative retail electric suppliers as defined SB6 Engrossed -11- LRB9100929PTpk 1 in Section 16-102 of that Act. 2 "Purchase at retail" shall mean any acquisition of 3 electricity by a purchaser for purposes of use or 4 consumption, and not for resale, but shall not include the 5 use of electricity by a public utility directly in the 6 generation, production, transmission, delivery or sale of 7 electricity. 8 "Purchaser" shall mean any person who uses or consumes, 9 within the corporate limits of the municipality, electricity 10 acquired in a purchase at retail. 11 In the case of persons engaged in the business of 12 transmitting messages through the use of mobile equipment, 13 such as cellular phones and paging systems, the gross 14 receipts from the business shall be deemed to originate 15 within the corporate limits of a municipality only if the 16 address to which the bills for the service are sent is within 17 those corporate limits. If, however, that address is not 18 located within a municipality that imposes a tax under this 19 Section, then (i) if the party responsible for the bill is 20 not an individual, the gross receipts from the business shall 21 be deemed to originate within the corporate limits of the 22 municipality where that party's principal place of business 23 in Illinois is located, and (ii) if the party responsible for 24 the bill is an individual, the gross receipts from the 25 business shall be deemed to originate within the corporate 26 limits of the municipality where that party's principal 27 residence in Illinois is located. 28 (e) Any municipality that imposes taxes upon public 29 utilities or upon the privilege of using or consuming 30 electricity pursuant to this Section whose territory includes 31 any part of an enterprise zone or federally designated 32 Foreign Trade Zone or Sub-Zone may, by a majority vote of its 33 corporate authorities, exempt from those taxes for a period 34 not exceeding 20 years any specified percentage of gross SB6 Engrossed -12- LRB9100929PTpk 1 receipts of public utilities received from, or electricity 2 used or consumed by, business enterprises that: 3 (1) either (i) make investments that cause the 4 creation of a minimum of 200 full-time equivalent jobs in 5 Illinois, (ii) make investments of at least $175,000,000 6 that cause the creation of a minimum of 150 full-time 7 equivalent jobs in Illinois, or (iii) make investments 8 that cause the retention of a minimum of 1,000 full-time 9 jobs in Illinois; and 10 (2) are either (i) located in an Enterprise Zone 11 established pursuant to the Illinois Enterprise Zone Act 12 or (ii) Department of Commerce and Community Affairs 13 designated High Impact Businesses located in a federally 14 designated Foreign Trade Zone or Sub-Zone; and 15 (3) are certified by the Department of Commerce and 16 Community Affairs as complying with the requirements 17 specified in clauses (1) and (2) of this paragraph (e). 18 Upon adoption of the ordinance authorizing the exemption, 19 the municipal clerk shall transmit a copy of that ordinance 20 to the Department of Commerce and Community Affairs. The 21 Department of Commerce and Community Affairs shall determine 22 whether the business enterprises located in the municipality 23 meet the criteria prescribed in this paragraph. If the 24 Department of Commerce and Community Affairs determines that 25 the business enterprises meet the criteria, it shall grant 26 certification. The Department of Commerce and Community 27 Affairs shall act upon certification requests within 30 days 28 after receipt of the ordinance. 29 Upon certification of the business enterprise by the 30 Department of Commerce and Community Affairs, the Department 31 of Commerce and Community Affairs shall notify the Department 32 of Revenue of the certification. The Department of Revenue 33 shall notify the public utilities of the exemption status of 34 the gross receipts received from, and the electricity used or SB6 Engrossed -13- LRB9100929PTpk 1 consumed by, the certified business enterprises. Such 2 exemption status shall be effective within 3 months after 3 certification. 4 (f) A municipality that imposes taxes upon public 5 utilities or upon the privilege of using or consuming 6 electricity under this Section and whose territory includes 7 part of another unit of local government or a school district 8 may by ordinance exempt the other unit of local government or 9 school district from those taxes. 10 (g) The amendment of this Section by Public Act 84-127 11 shall take precedence over any other amendment of this 12 Section by any other amendatory Act passed by the 84th 13 General Assembly before the effective date of Public Act 14 84-127. 15 (h) In any case in which, before July 1, 1992, a person 16 engaged in the business of transmitting messages through the 17 use of mobile equipment, such as cellular phones and paging 18 systems, has determined the municipality within which the 19 gross receipts from the business originated by reference to 20 the location of its transmitting or switching equipment, then 21 (i) neither the municipality to which tax was paid on that 22 basis nor the taxpayer that paid tax on that basis shall be 23 required to rebate, refund, or issue credits for any such tax 24 or charge collected from customers to reimburse the taxpayer 25 for the tax and (ii) no municipality to which tax would have 26 been paid with respect to those gross receipts if the 27 provisions of this amendatory Act of 1991 had been in effect 28 before July 1, 1992, shall have any claim against the 29 taxpayer for any amount of the tax. 30 (Source: P.A. 89-325, eff. 1-1-96; 90-16, eff. 6-16-97; 31 90-561, eff. 8-1-98; 90-562, eff. 12-16-97; 90-655, eff. 32 7-30-98.) 33 Section 99. Effective date. This Act takes effect upon SB6 Engrossed -14- LRB9100929PTpk 1 becoming law.