SB0214 Summary: Municipal Gas Use Tax

• Amends the Illinois Municipal Code to create the Municipal Gas Use Tax Law, effective January 1, 2020, allowing municipalities to impose a tax on natural gas use.

• Municipalities may impose a tax rate of 2.4 cents per therm or 5% of the purchase price (whichever is lower) on gas obtained through out-of-state purchases used within municipal limits.

• Purchasers may elect an alternative tax rate of 2.4 cents per therm to be collected by a delivering supplier maintaining a place of business in Illinois, or register as self-assessing purchasers to pay tax directly to the Department of Revenue.

• Self-assessing purchasers and delivering suppliers must register with the Department of Revenue and file monthly returns by the 15th of each month reporting therms used, purchase prices, and tax amounts.

• Delivering suppliers who collect the tax on behalf of municipalities must remit the collected tax to the Department of Revenue along with their monthly returns.