Bill Text: IL HB3382 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Creates the Coal Severance Tax Act. Imposes a tax upon the severance and preparation of coal for sale, profit, or commercial use, if the coal is severed from a mine located in this State. Provides that the rate of tax is 5% of the gross value of the severed coal. Contains provisions concerning returns and penalties. Effective January 1, 2020.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB3382 Detail]

Download: Illinois-2019-HB3382-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB3382 Introduced , by Rep. Daniel Didech SYNOPSIS AS INTRODUCED:
New Act
30 ILCS 105/5.891 new
Creates the Coal Severance Tax Act. Imposes a tax upon the severance and preparation of coal for sale, profit, or commercial use, if the coal is severed from a mine located in this State. Provides that the rate of tax is 5% of the gross value of the severed coal. Contains provisions concerning returns and penalties. Effective January 1, 2020.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the the
"Coal Severance Tax Act".
Section 5. Definitions.
"Department" means the Illinois Department of Revenue.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian, or other representative appointed
by order of any court.
Section 10. Tax imposed.
(a) On and after January 1, 2020, there is hereby imposed a
tax upon any person engaged in the business of severing or
preparing coal for sale, profit, or commercial use, if the coal
is severed from a mine located in this State. The rate of the
tax imposed under this Section is 5% of the gross value of the
severed coal.
(b) The liability for the tax accrues at the time the coal
is severed.

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Section 15. Payment and collection of tax.
(a) The tax imposed under this Act shall be due and payable
on or before the 20th day of the month following the month in
which the coal is severed.
(b) The State shall have a lien on all coal severed in this
State on or after January 1, 2016 to secure the payment of the
tax.
Section 20. Registration. A person who is subject to the
tax imposed under this Act shall register with the Department.
Application for a certificate of registration shall be made to
the Department upon forms furnished by the Department and shall
contain any reasonable information the Department may require.
Upon receipt of the application for a certificate of
registration in proper form, the Department shall issue to the
applicant a certificate of registration.
Section 25. Inspection of records by Department; subpoena
power, contempt. For the purpose of computing the amount of the
tax due under this Act, the Department shall have the following
powers:
(1) to require any person who is subject to this tax to
furnish any additional information deemed to be necessary
for the computation of the tax;
(2) to examine books, records, and files of such
person; and

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(3) to issue subpoenas and examine witnesses under
oath; if any witness fails or refuses to appear at the
request of the Director, or if any witness refuses access
to books, records, or files, the circuit court of the
proper county, or the judge thereof, on application of the
Department, shall compel obedience by proceedings for
contempt, as in the case of disobedience of the
requirements of a subpoena issued from that court or a
refusal to testify therein.
Section 30. Returns.
(a) Each taxpayer shall make a return to the Department
showing:
(1) the name of the taxpayer;
(2) the address of the taxpayer's principal place of
business;
(3) the quantity of coal severed or prepared during the
month for which the return is filed;
(4) the gross value of the severed coal;
(5) the amount of tax due;
(6) the signature of the taxpayer; and
(7) such other reasonable information as the
Department may require.
(b) The return shall be filed on or before the 20th day of
the month after the month during which the coal is severed. The
Department may require any additional report or information it

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deems necessary for the proper administration of this Act.
(c) Returns due under this Section shall be filed
electronically in the manner prescribed by the Department.
Taxpayers shall make all payments of the tax to the Department
under this Act by electronic funds transfer unless, as provided
by rule, the Department grants an exception upon petition of a
taxpayer. Returns must be accompanied by appropriate computer
generated magnetic media supporting schedule data in the format
required by the Department, unless, as provided by rule, the
Department grants an exception upon petition of a taxpayer.
Section 35. Incorporation by reference. All of the
provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 6,
6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the "Retailers'
Occupation Tax Act" which are not inconsistent with this Act,
and all provisions of the Uniform Penalty and Interest Act
shall apply, as far as practicable, to the subject matter of
this Act to the same extent as if such provisions were included
herein.
Section 40. Rulemaking. The Department is hereby
authorized to adopt such rules as may be necessary to
administer and enforce the provisions of this Act.
Section 45. Distribution of proceeds. All moneys received
by the Department under this Act shall be paid into the

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Community Choice Fund, a special fund created in the State
Treasury. Moneys in the Fund shall be used by the Department of
Healthcare and Family Services to make grants to Rural Health
Centers and Federally Qualified Hospitals designated as such by
the Secretary of the United States Department of Health and
Human Services.
Section 90. The State Finance Act is amended by adding
Section 5.891 as follows:
(30 ILCS 105/5.891 new)
Sec. 5.891. The Community Choice Fund.
Section 99. Effective date. This Act takes effect January
1, 2020.