Bill Text: IL HB4300 | 2019-2020 | 101st General Assembly | Introduced
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 1-0)
Status: (Introduced - Dead) 2020-01-28 - Referred to Rules Committee [HB4300 Detail]
Download: Illinois-2019-HB4300-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the the | ||||||||||||||||||||||||||||||
5 | "Coal Severance Tax Act".
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6 | Section 5. Definitions. | ||||||||||||||||||||||||||||||
7 | "Department" means the Illinois Department of Revenue. | ||||||||||||||||||||||||||||||
8 | "Person" means any natural individual, firm, partnership, | ||||||||||||||||||||||||||||||
9 | association, joint stock company, joint adventure, public or | ||||||||||||||||||||||||||||||
10 | private corporation, limited liability company, or a receiver, | ||||||||||||||||||||||||||||||
11 | executor, trustee, guardian, or other representative appointed | ||||||||||||||||||||||||||||||
12 | by order of any court.
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13 | Section 10. Tax imposed. | ||||||||||||||||||||||||||||||
14 | (a) On and after January 1, 2020, there is hereby imposed a | ||||||||||||||||||||||||||||||
15 | tax upon any person engaged in the business of severing or | ||||||||||||||||||||||||||||||
16 | preparing coal for sale, profit, or commercial use, if the coal | ||||||||||||||||||||||||||||||
17 | is severed from a mine located in this State. The rate of the | ||||||||||||||||||||||||||||||
18 | tax imposed under this Section is 5% of the gross value of the | ||||||||||||||||||||||||||||||
19 | severed coal. | ||||||||||||||||||||||||||||||
20 | (b) The liability for the tax accrues at the time the coal | ||||||||||||||||||||||||||||||
21 | is severed.
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1 | Section 15. Payment and collection of tax. | ||||||
2 | (a) The tax imposed under this Act shall be due and payable | ||||||
3 | on or before the 20th day of the month following the month in | ||||||
4 | which the coal is severed. | ||||||
5 | (b) The State shall have a lien on all coal severed in this | ||||||
6 | State on or after January 1, 2016 to secure the payment of the | ||||||
7 | tax.
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8 | Section 20. Registration. A person who is subject to the | ||||||
9 | tax imposed under this Act shall register with the Department. | ||||||
10 | Application for a certificate of registration shall be made to | ||||||
11 | the Department upon forms furnished by the Department and shall | ||||||
12 | contain any reasonable information the Department may require. | ||||||
13 | Upon receipt of the application for a certificate of | ||||||
14 | registration in proper form, the Department shall issue to the | ||||||
15 | applicant a certificate of registration.
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16 | Section 25. Inspection of records by Department; subpoena | ||||||
17 | power, contempt. For the purpose of computing the amount of the | ||||||
18 | tax due under this Act, the Department shall have the following | ||||||
19 | powers: | ||||||
20 | (1) to require any person who is subject to this tax to | ||||||
21 | furnish any additional information deemed to be necessary | ||||||
22 | for the computation of the tax; | ||||||
23 | (2) to examine books, records, and files of such | ||||||
24 | person; and |
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1 | (3) to issue subpoenas and examine witnesses under | ||||||
2 | oath; if any witness fails or refuses to appear at the | ||||||
3 | request of the Director, or if any witness refuses access | ||||||
4 | to books, records, or files, the circuit court of the | ||||||
5 | proper county, or the judge thereof, on application of the | ||||||
6 | Department, shall compel obedience by proceedings for | ||||||
7 | contempt, as in the case of disobedience of the | ||||||
8 | requirements of a subpoena issued from that court or a | ||||||
9 | refusal to testify therein.
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10 | Section 30. Returns. | ||||||
11 | (a) Each taxpayer shall make a return to the Department | ||||||
12 | showing: | ||||||
13 | (1) the name of the taxpayer; | ||||||
14 | (2) the address of the taxpayer's principal place of | ||||||
15 | business; | ||||||
16 | (3) the quantity of coal severed or prepared during the | ||||||
17 | month for which the return is filed; | ||||||
18 | (4) the gross value of the severed coal; | ||||||
19 | (5) the amount of tax due; | ||||||
20 | (6) the signature of the taxpayer; and | ||||||
21 | (7) such other reasonable information as the
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22 | Department may require. | ||||||
23 | (b) The return shall be filed on or before the 20th day of | ||||||
24 | the month after the month during which the coal is severed. The | ||||||
25 | Department may require any additional report or information it |
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1 | deems necessary for the proper administration of this Act. | ||||||
2 | (c) Returns due under this Section shall be filed | ||||||
3 | electronically in the manner prescribed by the Department. | ||||||
4 | Taxpayers shall make all payments of the tax to the Department | ||||||
5 | under this Act by electronic funds transfer unless, as provided | ||||||
6 | by rule, the Department grants an exception upon petition of a | ||||||
7 | taxpayer. Returns must be accompanied by appropriate computer | ||||||
8 | generated magnetic media supporting schedule data in the format | ||||||
9 | required by the Department, unless, as provided by rule, the | ||||||
10 | Department grants an exception upon petition of a taxpayer.
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11 | Section 35. Incorporation by reference. All of the | ||||||
12 | provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 6, | ||||||
13 | 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the "Retailers' | ||||||
14 | Occupation Tax Act" which are not inconsistent with this Act, | ||||||
15 | and all provisions of the Uniform Penalty and Interest Act | ||||||
16 | shall apply, as far as practicable, to the subject matter of | ||||||
17 | this Act to the same extent as if such provisions were included | ||||||
18 | herein.
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19 | Section 40. Rulemaking. The Department is hereby | ||||||
20 | authorized to adopt such rules as may be necessary to | ||||||
21 | administer and enforce the provisions of this Act.
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22 | Section 45. The Community Choice Fund; creation. The | ||||||
23 | Community Choice Fund is hereby created as a special fund in |
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1 | the State Treasury. Moneys in the Community Choice Fund shall | ||||||
2 | be used by the Department of Healthcare and Family Services to | ||||||
3 | make grants to Rural Health Centers and Federally Qualified | ||||||
4 | Hospitals designated as such
by the Secretary of the United | ||||||
5 | States Department of Health and Human Services.
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6 | Section 50. The Coal-Producing Counties Revenue Fund and | ||||||
7 | the All Counties and Municipalities Coal Revenue Fund. | ||||||
8 | (a) The Coal-Producing Counties Revenue Fund and the All | ||||||
9 | Counties and Municipalities Coal Revenue Fund are hereby | ||||||
10 | created as special funds in the State Treasury. | ||||||
11 | (b) Moneys in the Coal-Producing Counties Revenue Fund | ||||||
12 | shall be distributed each quarter to counties in the State by: | ||||||
13 | (1) dividing the total amount of moneys in the Fund then | ||||||
14 | available for distribution by the total number of tons of coal | ||||||
15 | mined in this State during the preceding quarter; and (2) | ||||||
16 | multiplying that quotient by the number of tons of coal removed | ||||||
17 | from the ground in the particular county during the preceding | ||||||
18 | quarter. | ||||||
19 | (c) Moneys in the All Counties and Municipalities Coal | ||||||
20 | Revenue Fund shall be allocated each quarter as follows: | ||||||
21 | (1) the State Treasurer shall first apportion the total | ||||||
22 | amount of moneys available in the Fund by multiplying the | ||||||
23 | total amount in the Fund by the percentage which the | ||||||
24 | population of each county bears to the total population of | ||||||
25 | the State; the amount so apportioned for each county is the |
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1 | county's base share; and | ||||||
2 | (2) each county's base share shall then be subdivided | ||||||
3 | into a county portion and a municipal portion; the county | ||||||
4 | portion shall be determined by multiplying the base share | ||||||
5 | by the percentage which the total population of all | ||||||
6 | unincorporated areas within the county bears to the total | ||||||
7 | population of the county, and the municipal portion shall | ||||||
8 | be determined by multiplying the base share by the | ||||||
9 | percentage which the total population of all | ||||||
10 | municipalities within the county bears to the total | ||||||
11 | population of the county; the county portion shall be paid | ||||||
12 | to the county, and the municipal portion shall be paid to | ||||||
13 | the municipalities of the county; each municipality's | ||||||
14 | share of the municipal portion shall be determined by | ||||||
15 | multiplying the total municipal portion by the percentage | ||||||
16 | which the population of that municipality within the county | ||||||
17 | bears to the total population of all municipalities within | ||||||
18 | the county.
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19 | Section 55. Distribution of proceeds. Moneys received | ||||||
20 | under this Act shall be distributed as follows: | ||||||
21 | (1) one-third shall be deposited into the Community | ||||||
22 | Choice Fund; | ||||||
23 | (2) one-third shall be deposited into the General | ||||||
24 | Revenue Fund and shall be used to pay the State's past due | ||||||
25 | bills; as used in this Section "past due bill" means a |
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1 | pending voucher approved for payment by the State | ||||||
2 | Comptroller but remaining unpaid at least 60 days after the | ||||||
3 | due date; and | ||||||
4 | (3) of the remaining one-third, 75% shall be deposited | ||||||
5 | into the Coal-Producing Counties Revenue Fund and 25% shall | ||||||
6 | be deposited into the All Counties and Municipalities Coal | ||||||
7 | Revenue Fund.
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8 | Section 90. The State Finance Act is amended by adding | ||||||
9 | Sections 5.891, 5.892, and 5.893 as follows:
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10 | (30 ILCS 105/5.891 new) | ||||||
11 | Sec. 5.891. The Community Choice Fund.
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12 | (30 ILCS 105/5.892 new) | ||||||
13 | Sec. 5.892. The Coal-Producing Counties Revenue Fund.
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14 | (30 ILCS 105/5.893 new) | ||||||
15 | Sec. 5.893. The All Counties and Municipalities Coal | ||||||
16 | Revenue Fund.
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17 | Section 99. Effective date. This Act takes effect January | ||||||
18 | 1, 2021.
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