IL HB4724

Amends the Illinois Hydraulic Fracturing Tax Act to modify tax payment and collection procedures for oil and gas producers and first purchasers.

First purchasers must withhold and remit the hydraulic fracturing tax from producers unless they obtain an exemption certificate from the operator stating the production unit is not subject to the tax.

Exemption certificates must include operator name and address, production unit name, legal description, and a statement that the unit is exempt from the tax.

First purchasers who obtain valid exemption certificates and reasonably rely on them are relieved of liability if a production unit is later determined to be subject to the tax; the Department will collect from the operator and producers instead.

First purchasers are not required to obtain exemption certificates until the first high volume horizontal hydraulic fracturing permit is approved by the Department of Natural Resources after this Act's effective date.