Current through Register Vol. 48, No. 38, September 20, 2024
a) The tax is not imposed upon any taxpayer
with respect to any transaction in interstate commerce to the extent that the
transactions may not, under the Constitution and statutes of the United States,
be made the subject of taxation by this State.
b) Insofar as the tax is imposed upon persons
distributing, supplying, furnishing or selling gas for use or consumption and
not for resale, the following general principles will apply in determining
whether transactions are in interstate commerce:
1) When a taxpayer delivers gas through
continuous mains, lines or pipes from a point in Illinois to a point outside of
Illinois, those transactions are interstate commerce, and the taxpayer is not
liable for tax with respect to gross receipts from those
transactions.
2) When a taxpayer
not engaged in business in this State delivers gas through continuous mains,
lines or pipes from a point outside of Illinois to a point within Illinois, the
transaction is interstate commerce, and the taxpayer is not liable for tax with
respect to receipts from that transaction. However, if the company is engaged
in the business in Illinois of distributing, supplying, furnishing or selling
gas brought within this State for use or consumption and not for resale, the
transactions do not constitute interstate commerce, and the tax will
apply.
3) When a taxpayer delivers
gas through continuous mains, lines or pipes from one point in Illinois to a
second point within Illinois, the transaction is not interstate commerce, and
the taxpayer will be liable for tax with respect to receipts from that
transaction. This subsection (b)(3) applies irrespective of the fact that a
portion of the continuous mains, lines or pipes of the taxpayer through which
gas passes are situated outside Illinois.
c) When a taxpayer distributes, supplies,
furnishes or sells gas to a single customer under a contract calling for the
delivery of gas partly within Illinois and partly outside of Illinois, the
taxpayer is liable for tax with respect to that portion of gross receipts from
the contract accruing from service furnished within this State.
