Section 471.101 Definitions
"Delivering supplier
maintaining a place of business in this State", or any like term, means
any delivering supplier having or maintaining within this State, directly or by
a subsidiary, an office, distribution facility, sales office or other place of
business, or any employee, agent or other representative operating within this
State under the authority of such delivering supplier or such delivering
supplier's subsidiary, irrespective of whether such place of business or agent
or other representative is located in this State permanently or temporarily, or
whether such delivering supplier or such delivering supplier's subsidiary is
licensed to do business in this State.
"Delivering supplier"
means any person engaged in the business of delivering gas to persons for use
or consumption and not for resale, and who, in any case where more than one
person participates in the delivery of gas to a specific purchaser, is the last
of the suppliers engaged in delivering the gas prior to its receipt by the
purchaser. A person, such as a gas utility, that provides for the delivery
of customer owned gas through gas lines that are connected to the customer’s
residence or place of business is considered a delivering supplier. A person
who transports gas through an interstate pipeline directly to a customer in
this State who uses that gas for its own use or consumption and not for resale
is considered a delivering supplier. A person who sells gas to an end user,
but does not provide for delivery of the gas to such end user, is not
considered a delivering supplier.
EXAMPLE: A customer purchases gas
for use in its business from a gas marketer and has the customer’s local
utility company deliver the gas to that customer’s place of business. In that
instance, the customer’s local utility company is the delivering supplier.
"Department"
means the Department of Revenue of the State of Illinois.
"Gas"
means any gaseous fuel distributed through a pipeline
system.
"Law" means the Gas Use Tax Law [35 ILCS 173].
"Person" means any
natural individual, firm, trust, estate, partnership, association, joint stock
company, joint adventure, corporation, or a receiver, trustee, guardian, or
other representative appointed by order of any court, or any city, town,
county, or other political subdivision of this State.
"Purchase of out-of-State
gas" means a transaction for the purchase of gas from any supplier
in a manner that does not subject the seller of that gas to liability under the
Gas Revenue Tax Act [35 ILCS 615].
"Purchase price"
means the consideration paid for the distribution, supply, furnishing, sale,
transportation, or delivery of gas to a person for use or consumption and not
for resale, and for all services directly related to the production,
transportation, or distribution of gas distributed, supplied, furnished, sold,
transmitted, or delivered for use or consumption, including cash, services, and
property of every kind and nature. However, "purchase price" shall
not include consideration paid for:
Any charge for
a dishonored check.
Any finance or credit charge,
penalty, charge for delayed payment, or discount for prompt payment.
Any charge for reconnection of
service or for replacement or relocation of facilities.
Any advance or
contribution in aid of construction.
Repair, inspection, or
servicing of equipment located on customer premises.
Leasing or rental of equipment,
the leasing or rental of which is not necessary to furnishing, supplying, or
selling gas.
Any purchase by a purchaser if
the supplier is prohibited by federal or State constitution, treaty,
convention, statute, or court decision from recovering the related tax
liability from such purchaser.
Any amounts added to
purchasers' bills because of changes made pursuant to the tax imposed by the
Law.
In case credit is extended, the
amount thereof shall be included only as and when payments are received.
"Self-assessing
purchaser" means a purchaser of gas for use or consumption that is required
to be registered with the Department and is responsible for filing returns and
paying the tax imposed under the Law directly to the Department. [35 ILCS
173/5-5]
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TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 471
GAS USE TAX LAW
SECTION 471.105 IMPOSITION OF TAX
Section 471.105 Imposition of Tax
Beginning October 1, 2003, a tax is imposed upon the
privilege of using in this State gas obtained in a purchase of out-of-State gas
at the rate or rates set forth in Section 471.110 of this Part. [35 ILCS 173/5-10]
EXAMPLE: A purchase of
out-of-State gas occurs when a purchaser enters into a contract outside of this
State with a supplier to purchase gas at a wellhead located in Oklahoma.
The purchaser then contracts with an Illinois utility for the delivery of that
gas to the purchaser’s place of business in Illinois. The sale of that gas
occurs outside of this State and the seller is not liable for Gas Revenue Tax
on the sale of that gas. Unless otherwise exempt under this Part, the
purchaser incurs Gas Use Tax liability at the rate or rates set forth in
Section 471.110 of this Part on the purchase of the out-of-State gas.
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 471
GAS USE TAX LAW
SECTION 471.110 TAX RATES
Section 471.110 Tax Rates
a) Self-assessing purchaser rate. The tax
imposed under Section 471.105 of this Part is at the rate of 2.4 cents per
therm or 5% of the purchase price for the billing period, whichever is the
lower rate. [35 ILCS 173/5-10] This rate is referred to as the "self
assessing purchaser tax rate" and such purchasers are referred to as "self-assessing
purchasers". Such self-assessing
purchasers are required to file returns and pay the tax directly to the Department.
Purchasers of out-of-State gas who provide exemption
certificates when they do not qualify for such exemptions will be deemed to be
self-assessing purchasers and incur the tax imposed by this Part at the
self-assessing purchaser rate. (See Section 471.125(c).)
b) Alternate tax rate. Purchasers of
out-of-State gas may elect an alternative tax rate of 2.4 cents per therm. This
rate is referred to as the "alternate tax rate". Those purchasers of
out-of-State gas who elect the alternative tax rate do not file returns or pay
the tax directly to the Department. [35 ILCS 173/5-10] Such purchasers pay tax to their delivering suppliers who
are registered to collect the tax under Section 471.120.
c) Purchasers choosing not to register. Purchasers
of out-of-State gas who choose not to register with the Department as
self-assessing purchasers will be deemed to have elected the alternate tax rate
and must pay the tax to their delivering suppliers who are registered to
collect the tax under Section 471.120.
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CHAPTER I: DEPARTMENT OF REVENUE
PART 471
GAS USE TAX LAW
SECTION 471.115 SELF-ASSESSING PURCHASER REGISTRATION
Section 471.115 Self-Assessing Purchaser Registration
a) Registration
as a self-assessing purchaser. Any purchaser that does not pay tax to his or
her delivering supplier, when that delivering supplier is registered to collect
that tax under the provisions of Section 471.120,
must register with the Department as a self-assessing purchaser and pay tax directly
to the Department at the self-assessing purchaser rate. A purchaser
registering as a self-assessing purchaser cannot revoke that registration for
at least one year.
b) Application
for registration. A signed application for a certificate of registration as a
self-assessing purchaser shall be made to the Department upon forms furnished
by the Department and shall list:
1) the
applicant’s name, including corporate name if applicable, address, and
telephone number;
2) the
applicant’s Social Security number if the applicant is an individual or
Illinois Business Tax number and Federal Employer Identification number if the
applicant is a business; and
3) the
name or names of the delivering supplier or suppliers who are delivering the
gas upon which the self-assessing purchaser will be paying tax.
c) Issuance
of certificate of registration. Upon receipt of the application for a
certificate of registration in proper form, the Department shall issue to the
applicant a certificate of registration as a self-assessing purchaser. The
applicant shall provide a copy of such certificate of registration as a
self-assessing purchaser to the applicant’s delivering supplier or suppliers. Upon
receipt of such a certificate of registration, the delivering supplier or
suppliers will no longer collect the tax imposed under this Part from the
self-assessing purchaser beginning with bills issued to the self-assessing
purchaser 30 or more days after receipt of the copy of the certificate of
registration. The self-assessing purchaser shall begin self-assessing tax with
the first bill issued by that person’s delivering supplier on or after October
1, 2003 that does not contain a charge for the collection of Gas Use Tax.
d) Purchaser’s
revocation of self-assessing purchaser registrations. Purchasers who have been
filing returns and paying tax directly to the Department as self-assessing
purchasers for at least one year may revoke their self-assessing purchaser
registrations and pay tax to their delivering suppliers. Self-assessing
purchasers who wish to revoke their registrations with the Department must
provide the Department with at least 30 days written notice prior to the date
upon which such purchasers wish to revoke their registrations. The notice
provided to the Department must be on a form provided by the Department and
include the name and address of the purchaser’s delivering supplier or
suppliers. Upon receipt of such form, the Department shall provide written
notification to the purchaser’s delivering supplier or suppliers that they are
to begin collecting tax from such purchaser beginning with bills issued to the
purchaser after that purchaser’s self-assessing purchaser registration has been
revoked.
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CHAPTER I: DEPARTMENT OF REVENUE
PART 471
GAS USE TAX LAW
SECTION 471.120 DELIVERING SUPPLIERS, COLLECTION OF TAX, RETURNS
Section 471.120 Delivering Suppliers, Collection of Tax,
Returns
a) Collection of tax. Beginning with
bills issued on and after October 1, 2003, a delivering supplier maintaining
a place of business in this State shall collect, from the purchasers who have
elected the alternate tax rate, the tax that is imposed by this Part at the
alternate 2.4 cents per therm rate. The tax imposed at the alternate tax rate
by this Part shall, when collected, be stated as a distinct and separate item
apart from the selling price of the gas or related services. Upon receipt by a
delivering supplier of a copy of a certificate of registration issued to a
self-assessing purchaser under Section 20 of the Law, that delivering supplier
is relieved of the duty to collect the alternate tax from that self-assessing
purchaser beginning with bills issued to that self-assessing purchaser 30 or
more days after receipt of the copy of that certificate of registration. Upon
receipt by a delivering supplier of a signed exemption certificate provided by
a customer as required under Section 471.125(b), that delivering supplier is
relieved of the duty of collecting the tax from that customer. [35 ILCS
173/5-15] However, the providing of such an exemption certificate by a customer
for the tax imposed under this Part does not relieve the delivering supplier
from any Gas Revenue Tax liability that may be incurred on transactions with
that customer for the transportation or delivery of the gas. (See 86 Ill. Adm.
Code 470.) The delivering supplier’s duty to collect the alternate tax from a
self-assessing purchaser will be reinstated upon the delivering supplier’s
receipt of a notice of revocation of that purchaser’s self-assessing purchaser
registration. (See Section 471.115.)
b) Registration as a delivering supplier.
A delivering supplier maintaining a place of business in this State
who engages in the delivery of gas in this State shall register with the
Department. [35 ILCS 173/5-15] A delivering supplier, if required to register
under the Gas Revenue Tax Act [35 ILCS 615], need not obtain an additional
certificate of registration under the Law, but shall be deemed to be
sufficiently registered by virtue of his being registered under the Gas Revenue
Tax Act [35 ILCS 615]. Application for a certificate of registration shall be
made to the Department on a form prescribed by the Department.
c) Delivering
supplier returns. Except as otherwise provided in this subsection (c), each
delivering supplier who is required to collect the tax imposed under this Part
shall, on or before the 15th day of each month for the preceding calendar
month, file a return with the Department upon a form prescribed by the
Department. In completing such return, the delivering supplier may use any
reasonable method to derive reportable "therms" from his or her
billing and payment records. If the average monthly liability to the
Department of the delivering supplier does not exceed $100, the Department may
authorize the delivering supplier’s returns to be filed on a quarter-annual
basis, with the return for January, February, and March of a given year being
due by April 30 of such year; with the return for April, May, and June of a
given year being due by July 31 of such year; with the return for July, August,
and September of a given year being due by October 31 of such year; and with
the return for October, November, and December of a given year being due by
January 31 of the following year. If the average monthly liability to the
Department of the delivering supplier does not exceed $20, the Department may
authorize the delivering supplier’s returns to be filed on an annual basis,
with the return for a given year being due by January 31 of the following year.
[35 ILCS 173/5-25]
d) Reporting
tax. Delivering suppliers who have not previously registered and remitted tax
to the Department under the Gas Revenue Tax Act may choose to report tax under
this Part by using either the gross billings or transactions method or gross
receipts method. Delivering suppliers who
have previously filed returns and paid Gas Revenue Tax to the Department upon
the basis of the gross amount of their billings or transactions with their
customers shall file returns and pay the tax collected under this Part in the
same manner. Delivering suppliers who have previously filed returns and paid Gas
Revenue Tax to the Department upon the basis of their gross receipts from their
customers shall file returns and pay the tax collected under this Part in the
same manner. (See Section 470.125.)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 471
GAS USE TAX LAW
SECTION 471.125 EXEMPTIONS
Section 471.125 Exemptions
a) The
tax imposed under this Part does not apply to the following:
1) Gas
used by business enterprises located in an enterprise zone certified by the
Department of Commerce and Economic Opportunity pursuant to the Illinois
Enterprise Zone Act [20 ILCS 655]. The use of gas by business
enterprises under this exemption does not include gas that is used for any
residential purpose;
2) Gas
used by governmental bodies, or a corporation, society, association,
foundation, or institution organized and operated exclusively for charitable,
religious, or educational purposes. Such use shall not be exempt unless the
government body, or corporation, society, association, foundation, or
institution organized and operated exclusively for charitable, religious, or
educational purposes has first been issued a tax exemption identification
number by the Department of Revenue pursuant to Section 1g of the Retailers'
Occupation Tax Act. A limited liability company may qualify for this exemption
only if the limited liability company is organized and operated exclusively for
educational purposes. The term "educational purposes" shall have the
same meaning as that set forth in Section 2h of the Retailers' Occupation Tax
Act [35 ILCS 120];
3) Gas
used in the production of electric energy. This exemption does not include gas
used in the general maintenance or heating of an electric energy production
facility or other structure;
4) Gas
used in a petroleum refinery operation;
5) Gas
purchased by persons for use in liquefaction and fractionation processes that
produce value added natural gas byproducts for resale; and
6) Gas
used in the production of anhydrous ammonia and downstream nitrogen fertilizer
products for resale. [35 ILCS 173/5-50]
b) Purchasers of gas that is to be used
for an exempt purpose or purposes as provided in subsection (a) must provide
their delivering supplier or suppliers with a signed certificate of exemption
to claim an exemption from the tax imposed under this Part. Only one
type of exemption described in subsection (a) may be claimed on each exemption
certificate. The certificate of exemption must contain the following:
1) Name
and address of the purchaser;
2) Account
number or numbers for which the exemption is being claimed;
3) Type
of exemption claimed (organizations described in subsection (a)(2) must provide
their tax exemption identification number and persons or organizations claiming
the exemption described in subsection (a)(1) must provide the name of the
enterprise zone in which they are located);
4) A
statement that all of the gas being purchased by the purchaser under the
account number or numbers listed on the certificate is exempt from tax;
5) The
date the certificate was given to the delivering supplier; and
6) The
signature of the purchaser.
c) Purchasers
providing invalid exemption certificates. Purchasers of out-of-State gas who
provide exemption certificates when they do not qualify for such exemptions
will be deemed to be self-assessing purchasers and incur the tax imposed by
this Part at the self-assessing purchaser rate. Such purchasers must file returns and pay the tax directly to the Department.
d) Separate
accounts for exempt uses. Purchasers who have both exempt uses and non-exempt
uses of gas must have separate accounts with their delivering supplier or
suppliers for their exempt gas usage. An exemption certificate provided under
this Section may only be provided for an account where all the gas being
delivered to that customer under that account is exempt from tax under this
Part.
AUTHORITY: Implementing the Gas Use Tax Law [35 ILCS 173].
SOURCE: Adopted at 28 Ill. Reg. 16341, effective November 30, 2004.
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