Illinois Gas Use Tax and Gas Revenue Tax Changes

              Effective for bills issued on or after
October 1, 2003, Gas Use Tax will be
imposed on the purchase of natural
gas from outside of Illinois for use or
consumption in Illinois.
Who is responsible for
reporting and paying Gas
Use Tax?
The delivering supplier collects,
reports, and pays the Gas Use Tax to
the Illinois Department of Revenue
(IDOR) unless a customer elects to
become a self-assessing purchaser
and provides the delivering supplier
with a copy of his certificate of regis-tration.
If the customer elects to be-come
a self-assessing purchaser, he
must report and pay the Gas Use Tax
directly to IDOR.
What is a “delivering
supplier”?
For the purposes of Gas Use Tax, a
“delivering supplier” is any person who
is in the business of “delivering” natu-ral
gas to persons for use or consump-tion
(not for resale). If more than one
supplier is involved in the delivery
chain of natural gas to a purchaser,
the “delivering supplier” is the last
supplier in the delivery chain. A deliv-ering
supplier is required to register
with IDOR.
What is a “self-assessing
purchaser”?
For the purposes of Gas Use Tax, a
“self-assessing purchaser” is any
person who purchases natural gas
from outside of Illinois for use or
consumption in Illinois and who elects
to pay the Gas Use Tax directly to
IDOR.
Are there registration
requirements for Gas Use
Tax?
Yes. A self-assessing purchaser must
register with IDOR by completing
Form REG-10, Gas Use Tax Self-
Assessing Purchaser Application.
A self-assessing purchaser must
continue to report and pay Gas Use
Tax as a self-assessor for at least one
year. If any information should change
after Form REG-10 is submitted, a new
Form REG-10 must be submitted. If
there are no changes, a new
Form REG-10 should be completed
every five years to keep records current.
Delivering suppliers must complete
Form RPU-3, Utility Tax Application for
Registration. If you are currently regis-tered
under the Gas Revenue Tax Act,
you do not need to complete
Form RPU-3.
What is the Gas Use Tax
rate?
The Gas Use Tax rate is based on
whether you are a delivering supplier or
a self-assessing purchaser.
Delivering suppliers: The tax amount
you must collect from each customer
per month is 2.4 cents per therm of
gas.
Self-assessing purchaser: The tax
amount you pay directly to IDOR is
5 percent (.05) of the purchase price or
2.4 cents per therm of gas - whichever
is less.
Note: “Purchase price” means the
amount paid for the distribution, supply-ing,
furnishing, sale, transportation, or
delivery of gas.
Illinois Gas Use Tax and Gas Revenue Tax Changes
FY 2004-09
July 2003
Illinois Department of Revenue
Informational Bulletin
For information
or forms...
To: Natural Gas Distributors, Suppliers, and Purchasers
Call us at:
217 524-5406
217 785-6602
Call our TDD
(telecommunications device
for the deaf) at:
1 800 544-5304
Write us at:
Illinois Department of Revenue
P.O. Box 19044
Springfield, IL 62794-9044
Visit our Web site at:
www.ILtax.com
Call
“Illinois Tax Fax,” our
fax-on-demand service, at:
217 785-3400
Call
our 24-hour
Forms Order Line at:
1 800 356-6302
Brian A. Hamer
Director of Revenue
Printed by authority of the State of Illinois
1500 copies - 07/03 - P.O. Number 2040183