Bill Text: IL HB4300 | 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.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2020-01-28 - Referred to Rules Committee [HB4300 Detail]

Download: Illinois-2019-HB4300-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB4300 Introduced , by Rep. Daniel Didech SYNOPSIS AS INTRODUCED:
New Act
30 ILCS 105/5.891 new
30 ILCS 105/5.892 new
30 ILCS 105/5.893 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. The Community Choice Fund; creation. The
Community Choice Fund is hereby created as a special fund in

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the State Treasury. Moneys in the Community Choice 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 50. The Coal-Producing Counties Revenue Fund and
the All Counties and Municipalities Coal Revenue Fund.
(a) The Coal-Producing Counties Revenue Fund and the All
Counties and Municipalities Coal Revenue Fund are hereby
created as special funds in the State Treasury.
(b) Moneys in the Coal-Producing Counties Revenue Fund
shall be distributed each quarter to counties in the State by:
(1) dividing the total amount of moneys in the Fund then
available for distribution by the total number of tons of coal
mined in this State during the preceding quarter; and (2)
multiplying that quotient by the number of tons of coal removed
from the ground in the particular county during the preceding
quarter.
(c) Moneys in the All Counties and Municipalities Coal
Revenue Fund shall be allocated each quarter as follows:
(1) the State Treasurer shall first apportion the total
amount of moneys available in the Fund by multiplying the
total amount in the Fund by the percentage which the
population of each county bears to the total population of
the State; the amount so apportioned for each county is the

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county's base share; and
(2) each county's base share shall then be subdivided
into a county portion and a municipal portion; the county
portion shall be determined by multiplying the base share
by the percentage which the total population of all
unincorporated areas within the county bears to the total
population of the county, and the municipal portion shall
be determined by multiplying the base share by the
percentage which the total population of all
municipalities within the county bears to the total
population of the county; the county portion shall be paid
to the county, and the municipal portion shall be paid to
the municipalities of the county; each municipality's
share of the municipal portion shall be determined by
multiplying the total municipal portion by the percentage
which the population of that municipality within the county
bears to the total population of all municipalities within
the county.
Section 55. Distribution of proceeds. Moneys received
under this Act shall be distributed as follows:
(1) one-third shall be deposited into the Community
Choice Fund;
(2) one-third shall be deposited into the General
Revenue Fund and shall be used to pay the State's past due
bills; as used in this Section "past due bill" means a

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pending voucher approved for payment by the State
Comptroller but remaining unpaid at least 60 days after the
due date; and
(3) of the remaining one-third, 75% shall be deposited
into the Coal-Producing Counties Revenue Fund and 25% shall
be deposited into the All Counties and Municipalities Coal
Revenue Fund.
Section 90. The State Finance Act is amended by adding
Sections 5.891, 5.892, and 5.893 as follows:
(30 ILCS 105/5.891 new)
Sec. 5.891. The Community Choice Fund.
(30 ILCS 105/5.892 new)
Sec. 5.892. The Coal-Producing Counties Revenue Fund.
(30 ILCS 105/5.893 new)
Sec. 5.893. The All Counties and Municipalities Coal
Revenue Fund.
Section 99. Effective date. This Act takes effect January
1, 2021.