HB0826 - Municipal Gas Use Tax

• Creates the Municipal Gas Use Tax Law allowing municipalities to impose a tax beginning January 1, 2020 on gas obtained through out-of-state purchases used within the municipality.

• Establishes two tax rate options: a self-assessing purchaser rate of 2.4 cents per therm or 5% of purchase price (whichever is lower), or an alternate rate of 2.4 cents per therm collected by delivering suppliers.

• Requires self-assessing purchasers to register with the Department of Revenue and file monthly returns by the 15th of each month reporting therms used and tax owed.

• Mandates delivering suppliers maintaining a place of business in Illinois to register with the Department of Revenue and collect the alternate tax rate from purchasers, remitting taxes monthly.

• Takes effect January 1, 2020, with purchasers prohibited from revoking self-assessing purchaser registration for at least one year after registration.