Bill Amendment: IL HB4724 | 2017-2018 | 100th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: FRAC TX-FIRST PURCHASER EXEMPT
Status: 2018-08-21 - Public Act . . . . . . . . . 100-1006 [HB4724 Detail]
Download: Illinois-2017-HB4724-Senate_Amendment_001.html
Bill Title: FRAC TX-FIRST PURCHASER EXEMPT
Status: 2018-08-21 - Public Act . . . . . . . . . 100-1006 [HB4724 Detail]
Download: Illinois-2017-HB4724-Senate_Amendment_001.html
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1 | AMENDMENT TO HOUSE BILL 4724
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2 | AMENDMENT NO. ______. Amend House Bill 4724 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Hydraulic Fracturing Tax Act is | ||||||
5 | amended by changing Section 2-30 as follows:
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6 | (35 ILCS 450/2-30)
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7 | Sec. 2-30. Payment and collection of tax. | ||||||
8 | (a) For oil and gas removed on or after July 1, 2013, the | ||||||
9 | tax incurred under this Act shall be due and payable on or | ||||||
10 | before the last day of the month following the end of the month | ||||||
11 | in which the oil or gas is removed from the production unit. | ||||||
12 | The tax is upon the producers of such oil or gas in the | ||||||
13 | proportion to their respective beneficial interests at the time | ||||||
14 | of severance. The first purchaser of any oil or gas sold shall | ||||||
15 | collect the amount of the tax due from the producers by | ||||||
16 | deducting and withholding such amount from any payments made by |
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1 | such purchaser to the producers and shall remit the tax in this | ||||||
2 | Act. | ||||||
3 | In the event the tax shall be withheld by a purchaser from | ||||||
4 | payments due a producer and such purchaser fails to make | ||||||
5 | payment of the tax to the State as required herein, the first | ||||||
6 | purchaser shall be liable for the tax. However, in the event a | ||||||
7 | first purchaser fails to pay the tax withheld from a producer's | ||||||
8 | payment, the producer's interest remains subject to any lien | ||||||
9 | filed pursuant to subsection (c) of this Section. A producer | ||||||
10 | shall be entitled to bring an action against such purchaser to | ||||||
11 | recover the amount of tax so withheld together with penalties | ||||||
12 | and interest which may have accrued by failure to make such | ||||||
13 | payment. A producer shall be entitled to all attorney fees and | ||||||
14 | court costs incurred in such action. To the extent that a | ||||||
15 | producer liable for the tax imposed by this Act collects the | ||||||
16 | tax, and any penalties and interest, from a purchaser, such | ||||||
17 | tax, penalties, and interest are held in trust by the producer | ||||||
18 | for the benefit of the State of Illinois. | ||||||
19 | (b) For all production units a first purchaser begins to | ||||||
20 | purchase oil or gas from on or after July 1, 2013, the first | ||||||
21 | purchaser is required to withhold and remit the tax imposed by | ||||||
22 | this Act to the Department from the oil and gas purchased from | ||||||
23 | the production unit unless the first purchaser obtains from the | ||||||
24 | operator an exemption certificate signed by the operator | ||||||
25 | stating that the production unit is not subject to the tax | ||||||
26 | imposed by this Act. The exemption certificate must include the |
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1 | following information: | ||||||
2 | (1) name and address of the operator; | ||||||
3 | (2) name of the production unit; | ||||||
4 | (3) number assigned to the production unit by the first | ||||||
5 | purchaser, if available; | ||||||
6 | (4) legal description of the production unit; and | ||||||
7 | (5) a statement by the operator that the production | ||||||
8 | unit is exempt from the tax imposed by the Illinois | ||||||
9 | Hydraulic Fracturing Tax Act. | ||||||
10 | If a first purchaser obtains an exemption certificate that | ||||||
11 | contains the required information and reasonably relies on the | ||||||
12 | exemption certificate and it is subsequently determined by the | ||||||
13 | Department that the production unit is subject to the tax | ||||||
14 | imposed by this Act, the Department will collect any tax that | ||||||
15 | is due from the operator and producers, and the first purchaser | ||||||
16 | is relieved of any liability. | ||||||
17 | First purchasers shall not be required to obtain exemption | ||||||
18 | certificates from the producer until the first high volume | ||||||
19 | horizontal hydraulic fracturing permit has been approved by the | ||||||
20 | Department of Natural Resources. | ||||||
21 | (c) Notwithstanding subsection (a) of this Section, the tax | ||||||
22 | is a lien on the oil and gas from the time of severance from the | ||||||
23 | land or under the water until the tax and all penalties and | ||||||
24 | interest are fully paid, and the State shall have a lien on all | ||||||
25 | the oil or gas severed from the production unit in this State | ||||||
26 | in the hands of the operator, any producer or the first or any |
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1 | subsequent purchaser thereof to secure the payment of the tax. | ||||||
2 | If a lien is filed by the Department, the purchaser shall | ||||||
3 | withhold from producers or operators the amount of tax, penalty | ||||||
4 | and interest identified in the lien.
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5 | (Source: P.A. 98-22, eff. 6-17-13.)".
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