Current through Register Vol. 48, No. 38, September 20, 2024
a) The tax imposed
under this Part does not apply to the following:
1) Gas used by business enterprises located
in an enterprise zone certified by the Department of Commerce and Economic
Opportunity pursuant to the Illinois Enterprise Zone Act [20 ILCS 655 ]. The
use of gas by business enterprises under this exemption does not include gas
that is used for any residential purpose;
2) Gas used by governmental bodies, or a
corporation, society, association, foundation, or institution organized and
operated exclusively for charitable, religious, or educational purposes. Such
use shall not be exempt unless the government body, or corporation, society,
association, foundation, or institution organized and operated exclusively for
charitable, religious, or educational purposes has first been issued a tax
exemption identification number by the Department of Revenue pursuant to
Section 1g of the Retailers' Occupation Tax Act. A limited liability company
may qualify for this exemption only if the limited liability company is
organized and operated exclusively for educational purposes. The term
"educational purposes" shall have the same meaning as that set forth in Section
2h of the Retailers' Occupation Tax Act [35 ILCS 120 ];
3) Gas used in the production of electric
energy. This exemption does not include gas used in the general maintenance or
heating of an electric energy production facility or other structure;
4) Gas used in a petroleum refinery
operation;
5) Gas purchased by
persons for use in liquefaction and fractionation processes that produce value
added natural gas byproducts for resale; and
6) Gas used in the production of anhydrous
ammonia and downstream nitrogen fertilizer products for resale. [35
ILCS 173/5-50]
b) Purchasers of gas that is to be used for
an exempt purpose or purposes as provided in subsection (a) must provide their
delivering supplier or suppliers with a signed certificate of exemption to
claim an exemption from the tax imposed under this Part. Only one type of
exemption described in subsection (a) may be claimed on each exemption
certificate. The certificate of exemption must contain the following:
1) Name and address of the
purchaser;
2) Account number or
numbers for which the exemption is being claimed;
3) Type of exemption claimed (organizations
described in subsection (a)(2) must provide their tax exemption identification
number and persons or organizations claiming the exemption described in
subsection (a)(1) must provide the name of the enterprise zone in which they
are located);
4) A statement that
all of the gas being purchased by the purchaser under the account number or
numbers listed on the certificate is exempt from tax;
5) The date the certificate was given to the
delivering supplier; and
6) The
signature of the purchaser.
c) Purchasers providing invalid exemption
certificates. Purchasers of out-of-State gas who provide exemption certificates
when they do not qualify for such exemptions will be deemed to be
self-assessing purchasers and incur the tax imposed by this Part at the
self-assessing purchaser rate. Such purchasers must file returns and pay the
tax directly to the Department.
d)
Separate accounts for exempt uses. Purchasers who have both exempt uses and
non-exempt uses of gas must have separate accounts with their delivering
supplier or suppliers for their exempt gas usage. An exemption certificate
provided under this Section may only be provided for an account where all the
gas being delivered to that customer under that account is exempt from tax
under this Part.
