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Illinois Senate Bill SB2923

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2923 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2923 Introduced 1/26/2024, by Sen. Dale Fowler SYNOPSIS AS INTRODUCED: 35 ILCS 173/5-1035 ILCS 615/1 from Ch. 120, par. 467.1635 ILCS 640/2-4 Amends the Gas Use Tax Law. Exempts certain business enterprises from taxation under the Act. Amends the Gas Revenue Tax Act. Provides that the definition of "gross receipts" does not include consideration received from certain business enterprises. Amends the Electricity Excise Tax Law. Provides that the tax under the Act is not imposed with respect to any use by the purchaser in the process of manufacturing or assembling tangible personal property for wholesale or for retail sale or lease. Effective immediately. LRB103 36260 HLH 66357 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2923 Introduced 1/26/2024, by Sen. Dale Fowler SYNOPSIS AS INTRODUCED: 35 ILCS 173/5-1035 ILCS 615/1 from Ch. 120, par. 467.1635 ILCS 640/2-4 35 ILCS 173/5-10 35 ILCS 615/1 from Ch. 120, par. 467.16 35 ILCS 640/2-4 Amends the Gas Use Tax Law. Exempts certain business enterprises from taxation under the Act. Amends the Gas Revenue Tax Act. Provides that the definition of "gross receipts" does not include consideration received from certain business enterprises. Amends the Electricity Excise Tax Law. Provides that the tax under the Act is not imposed with respect to any use by the purchaser in the process of manufacturing or assembling tangible personal property for wholesale or for retail sale or lease. Effective immediately. LRB103 36260 HLH 66357 b LRB103 36260 HLH 66357 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2923 Introduced 1/26/2024, by Sen. Dale Fowler SYNOPSIS AS INTRODUCED:
33 35 ILCS 173/5-1035 ILCS 615/1 from Ch. 120, par. 467.1635 ILCS 640/2-4 35 ILCS 173/5-10 35 ILCS 615/1 from Ch. 120, par. 467.16 35 ILCS 640/2-4
44 35 ILCS 173/5-10
55 35 ILCS 615/1 from Ch. 120, par. 467.16
66 35 ILCS 640/2-4
77 Amends the Gas Use Tax Law. Exempts certain business enterprises from taxation under the Act. Amends the Gas Revenue Tax Act. Provides that the definition of "gross receipts" does not include consideration received from certain business enterprises. Amends the Electricity Excise Tax Law. Provides that the tax under the Act is not imposed with respect to any use by the purchaser in the process of manufacturing or assembling tangible personal property for wholesale or for retail sale or lease. Effective immediately.
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1313 1 AN ACT concerning revenue.
1414 2 Be it enacted by the People of the State of Illinois,
1515 3 represented in the General Assembly:
1616 4 Section 5. The Gas Use Tax Law is amended by changing
1717 5 Section 5-10 as follows:
1818 6 (35 ILCS 173/5-10)
1919 7 Sec. 5-10. Imposition of tax. Beginning October 1, 2003, a
2020 8 tax is imposed upon the privilege of using in this State gas
2121 9 obtained in a purchase of out-of-state gas at the rate of 2.4
2222 10 cents per therm or 5% of the purchase price for the billing
2323 11 period, whichever is the lower rate. Such tax rate shall be
2424 12 referred to as the "self-assessing purchaser tax rate".
2525 13 Beginning with bills issued by delivering suppliers on and
2626 14 after October 1, 2003, purchasers may elect an alternative tax
2727 15 rate of 2.4 cents per therm to be paid under the provisions of
2828 16 Section 5-15 of this Law to a delivering supplier maintaining
2929 17 a place of business in this State. Such tax rate shall be
3030 18 referred to as the "alternate tax rate".
3131 19 The tax imposed under this Section shall not apply to gas
3232 20 used by business enterprises certified under Section 9-222.1
3333 21 of the Public Utilities Act, as amended, to the extent of such
3434 22 exemption and during the period of time specified by the
3535 23 Department of Commerce and Economic Opportunity.
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3939 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2923 Introduced 1/26/2024, by Sen. Dale Fowler SYNOPSIS AS INTRODUCED:
4040 35 ILCS 173/5-1035 ILCS 615/1 from Ch. 120, par. 467.1635 ILCS 640/2-4 35 ILCS 173/5-10 35 ILCS 615/1 from Ch. 120, par. 467.16 35 ILCS 640/2-4
4141 35 ILCS 173/5-10
4242 35 ILCS 615/1 from Ch. 120, par. 467.16
4343 35 ILCS 640/2-4
4444 Amends the Gas Use Tax Law. Exempts certain business enterprises from taxation under the Act. Amends the Gas Revenue Tax Act. Provides that the definition of "gross receipts" does not include consideration received from certain business enterprises. Amends the Electricity Excise Tax Law. Provides that the tax under the Act is not imposed with respect to any use by the purchaser in the process of manufacturing or assembling tangible personal property for wholesale or for retail sale or lease. Effective immediately.
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7474 1 The tax imposed under this Section does not apply to gas
7575 2 used by any business enterprise that is properly assigned or
7676 3 included within one of the following Standard Industrial
7777 4 Classifications, as designated in the 1987 Standard Industrial
7878 5 Classification Manual prepared by the federal Office of
7979 6 Management and Budget: 10; 12; 13; 14; 21; 22; 23; 24; 25; 26;
8080 7 27; 28; 29; 30; 31; 32; 33; 34; 35; 36; 37; 38; or 39.
8181 8 (Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.)
8282 9 Section 10. The Gas Revenue Tax Act is amended by changing
8383 10 Section 1 as follows:
8484 11 (35 ILCS 615/1) (from Ch. 120, par. 467.16)
8585 12 Sec. 1. For the purposes of this Act: "Gross receipts"
8686 13 means the consideration received for gas distributed,
8787 14 supplied, furnished or sold to persons for use or consumption
8888 15 and not for resale, and for all services (including the
8989 16 transportation or storage of gas for an end-user) rendered in
9090 17 connection therewith, and shall include cash, services and
9191 18 property of every kind or nature, and shall be determined
9292 19 without any deduction on account of the cost of the service,
9393 20 product or commodity supplied, the cost of materials used,
9494 21 labor or service costs, or any other expense whatsoever.
9595 22 However, "gross receipts" shall not include receipts from:
9696 23 (i) any minimum or other charge for gas or gas service
9797 24 where the customer has taken no therms of gas;
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108108 1 (ii) any charge for a dishonored check;
109109 2 (iii) any finance or credit charge, penalty or charge
110110 3 for delayed payment, or discount for prompt payment;
111111 4 (iv) any charge for reconnection of service or for
112112 5 replacement or relocation of facilities;
113113 6 (v) any advance or contribution in aid of
114114 7 construction;
115115 8 (vi) repair, inspection or servicing of equipment
116116 9 located on customer premises;
117117 10 (vii) leasing or rental of equipment, the leasing or
118118 11 rental of which is not necessary to distributing,
119119 12 furnishing, supplying, selling, transporting or storing
120120 13 gas;
121121 14 (viii) any sale to a customer if the taxpayer is
122122 15 prohibited by federal or State constitution, treaty,
123123 16 convention, statute or court decision from recovering the
124124 17 related tax liability from such customer;
125125 18 (ix) any charges added to customers' bills pursuant to
126126 19 the provisions of Section 9-221 or Section 9-222 of the
127127 20 Public Utilities Act, as amended, or any charges added to
128128 21 customers' bills by taxpayers who are not subject to rate
129129 22 regulation by the Illinois Commerce Commission for the
130130 23 purpose of recovering any of the tax liabilities or other
131131 24 amounts specified in such provisions of such Act; and
132132 25 (x) prior to October 1, 2003, any charge for gas or gas
133133 26 services to a customer who acquired contractual rights for
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144144 1 the direct purchase of gas or gas services originating
145145 2 from an out-of-state supplier or source on or before March
146146 3 1, 1995, except for those charges solely related to the
147147 4 local distribution of gas by a public utility. This
148148 5 exemption includes any charge for gas or gas service,
149149 6 except for those charges solely related to the local
150150 7 distribution of gas by a public utility, to a customer who
151151 8 maintained an account with a public utility (as defined in
152152 9 Section 3-105 of the Public Utilities Act) for the
153153 10 transportation of customer-owned gas on or before March 1,
154154 11 1995. The provisions of this amendatory Act of 1997 are
155155 12 intended to clarify, rather than change, existing law as
156156 13 to the meaning and scope of this exemption. This exemption
157157 14 (x) expires on September 30, 2003.
158158 15 In case credit is extended, the amount thereof shall be
159159 16 included only as and when payments are received.
160160 17 "Gross receipts" shall not include consideration received
161161 18 from business enterprises certified under Section 9-222.1 of
162162 19 the Public Utilities Act, as amended, to the extent of such
163163 20 exemption and during the period of time specified by the
164164 21 Department of Commerce and Economic Opportunity.
165165 22 "Gross receipts" does not include consideration received
166166 23 from any business enterprise that is properly assigned or
167167 24 included within one of the following Standard Industrial
168168 25 Classifications, as designated in the 1987 Standard Industrial
169169 26 Classification Manual prepared by the federal Office of
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180180 1 Management and Budget: 10; 12; 13; 14; 21; 22; 23; 24; 25; 26;
181181 2 27; 28; 29; 30; 31; 32; 33; 34; 35; 36; 37; 38; or 39.
182182 3 "Department" means the Department of Revenue of the State
183183 4 of Illinois.
184184 5 "Director" means the Director of Revenue for the
185185 6 Department of Revenue of the State of Illinois.
186186 7 "Taxpayer" means a person engaged in the business of
187187 8 distributing, supplying, furnishing or selling gas for use or
188188 9 consumption and not for resale.
189189 10 "Person" means any natural individual, firm, trust,
190190 11 estate, partnership, association, joint stock company, joint
191191 12 adventure, corporation, limited liability company, or a
192192 13 receiver, trustee, guardian or other representative appointed
193193 14 by order of any court, or any city, town, county or other
194194 15 political subdivision of this State.
195195 16 "Invested capital" means that amount equal to (i) the
196196 17 average of the balances at the beginning and end of each
197197 18 taxable period of the taxpayer's total stockholder's equity
198198 19 and total long-term debt, less investments in and advances to
199199 20 all corporations, as set forth on the balance sheets included
200200 21 in the taxpayer's annual report to the Illinois Commerce
201201 22 Commission for the taxable period; (ii) multiplied by a
202202 23 fraction determined under Sections 301 and 304(a) of the
203203 24 "Illinois Income Tax Act" and reported on the Illinois income
204204 25 tax return for the taxable period ending in or with the taxable
205205 26 period in question. However, notwithstanding the income tax
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216216 1 return reporting requirement stated above, beginning July 1,
217217 2 1979, no taxpayer's denominators used to compute the sales,
218218 3 property or payroll factors under subsection (a) of Section
219219 4 304 of the Illinois Income Tax Act shall include payroll,
220220 5 property or sales of any corporate entity other than the
221221 6 taxpayer for the purposes of determining an allocation for the
222222 7 invested capital tax. This amendatory Act of 1982, Public Act
223223 8 82-1024, is not intended to and does not make any change in the
224224 9 meaning of any provision of this Act, it having been the intent
225225 10 of the General Assembly in initially enacting the definition
226226 11 of "invested capital" to provide for apportionment of the
227227 12 invested capital of each company, based solely upon the sales,
228228 13 property and payroll of that company.
229229 14 "Taxable period" means each period which ends after the
230230 15 effective date of this Act and which is covered by an annual
231231 16 report filed by the taxpayer with the Illinois Commerce
232232 17 Commission.
233233 18 (Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.)
234234 19 Section 15. The Electricity Excise Tax Law is amended by
235235 20 changing Section 2-4 as follows:
236236 21 (35 ILCS 640/2-4)
237237 22 Sec. 2-4. Tax imposed.
238238 23 (a) Except as provided in subsection (b), a tax is imposed
239239 24 on the privilege of using in this State electricity purchased
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250250 1 for use or consumption and not for resale, other than by
251251 2 municipal corporations owning and operating a local
252252 3 transportation system for public service, at the following
253253 4 rates per kilowatt-hour delivered to the purchaser:
254254 5 (i) For the first 2000 kilowatt-hours used or consumed
255255 6 in a month: 0.330 cents per kilowatt-hour;
256256 7 (ii) For the next 48,000 kilowatt-hours used or
257257 8 consumed in a month: 0.319 cents per kilowatt-hour;
258258 9 (iii) For the next 50,000 kilowatt-hours used or
259259 10 consumed in a month: 0.303 cents per kilowatt-hour;
260260 11 (iv) For the next 400,000 kilowatt-hours used or
261261 12 consumed in a month: 0.297 cents per kilowatt-hour;
262262 13 (v) For the next 500,000 kilowatt-hours used or
263263 14 consumed in a month: 0.286 cents per kilowatt-hour;
264264 15 (vi) For the next 2,000,000 kilowatt-hours used or
265265 16 consumed in a month: 0.270 cents per kilowatt-hour;
266266 17 (vii) For the next 2,000,000 kilowatt-hours used or
267267 18 consumed in a month: 0.254 cents per kilowatt-hour;
268268 19 (viii) For the next 5,000,000 kilowatt-hours used or
269269 20 consumed in a month: 0.233 cents per kilowatt-hour;
270270 21 (ix) For the next 10,000,000 kilowatt-hours used or
271271 22 consumed in a month: 0.207 cents per kilowatt-hour;
272272 23 (x) For all electricity in excess of 20,000,000
273273 24 kilowatt-hours used or consumed in a month: 0.202 cents
274274 25 per kilowatt-hour.
275275 26 Provided, that in lieu of the foregoing rates, the tax is
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286286 1 imposed on a self-assessing purchaser at the rate of 5.1% of
287287 2 the self-assessing purchaser's purchase price for all
288288 3 electricity distributed, supplied, furnished, sold,
289289 4 transmitted and delivered to the self-assessing purchaser in a
290290 5 month.
291291 6 (b) A tax is imposed on the privilege of using in this
292292 7 State electricity purchased from a municipal system or
293293 8 electric cooperative, as defined in Article XVII of the Public
294294 9 Utilities Act, which has not made an election as permitted by
295295 10 either Section 17-200 or Section 17-300 of such Act, at the
296296 11 lesser of 0.32 cents per kilowatt hour of all electricity
297297 12 distributed, supplied, furnished, sold, transmitted, and
298298 13 delivered by such municipal system or electric cooperative to
299299 14 the purchaser or 5% of each such purchaser's purchase price
300300 15 for all electricity distributed, supplied, furnished, sold,
301301 16 transmitted, and delivered by such municipal system or
302302 17 electric cooperative to the purchaser, whichever is the lower
303303 18 rate as applied to each purchaser in each billing period.
304304 19 (c) The tax imposed by this Section 2-4 is not imposed with
305305 20 respect to any use of electricity by business enterprises
306306 21 certified under Section 9-222.1 or 9-222.1A of the Public
307307 22 Utilities Act, as amended, to the extent of such exemption and
308308 23 during the time specified by the Department of Commerce and
309309 24 Economic Opportunity; or with respect to any transaction in
310310 25 interstate commerce, or otherwise, to the extent to which such
311311 26 transaction may not, under the Constitution and statutes of
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322322 1 the United States, be made the subject of taxation by this
323323 2 State.
324324 3 (d) The tax imposed by this Section 2-4 is not imposed with
325325 4 respect to any use of electricity at a REV Illinois Project
326326 5 site that has received a certification for tax exemption from
327327 6 the Department of Commerce and Economic Opportunity pursuant
328328 7 to Section 95 of the Reimagining Energy and Vehicles in
329329 8 Illinois Act, to the extent of such exemption, which shall be
330330 9 no more than 10 years.
331331 10 (e) The tax imposed by this Section 2-4 is not imposed with
332332 11 respect to any use of electricity at a project site that has
333333 12 received a certification for tax exemption from the Department
334334 13 of Commerce and Economic Opportunity pursuant to the
335335 14 Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
336336 15 to the extent of such exemption, which shall be no more than 10
337337 16 years.
338338 17 (f) The tax imposed by this Section 2-4 is not imposed with
339339 18 respect to any use by the purchaser in the process of
340340 19 manufacturing or assembling tangible personal property for
341341 20 wholesale or for retail sale or lease.
342342 21 (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
343343 22 102-1125, eff. 2-3-23.)
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