Bill Text: IL HB4724 | 2017-2018 | 100th General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Hydraulic Fracturing Tax Act. Removes provisions concerning first purchaser exemption certificates.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Passed) 2018-08-21 - Public Act . . . . . . . . . 100-1006 [HB4724 Detail]
Download: Illinois-2017-HB4724-Engrossed.html
Bill Title: Amends the Illinois Hydraulic Fracturing Tax Act. Removes provisions concerning first purchaser exemption certificates.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Passed) 2018-08-21 - Public Act . . . . . . . . . 100-1006 [HB4724 Detail]
Download: Illinois-2017-HB4724-Engrossed.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 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 | ||||||
17 | such purchaser to the producers and shall remit the tax in this | ||||||
18 | Act. | ||||||
19 | In the event the tax shall be withheld by a purchaser from | ||||||
20 | payments due a producer and such purchaser fails to make | ||||||
21 | payment of the tax to the State as required herein, the first | ||||||
22 | purchaser shall be liable for the tax. However, in the event a | ||||||
23 | first purchaser fails to pay the tax withheld from a producer's |
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1 | payment, the producer's interest remains subject to any lien | ||||||
2 | filed pursuant to subsection (c) of this Section. A producer | ||||||
3 | shall be entitled to bring an action against such purchaser to | ||||||
4 | recover the amount of tax so withheld together with penalties | ||||||
5 | and interest which may have accrued by failure to make such | ||||||
6 | payment. A producer shall be entitled to all attorney fees and | ||||||
7 | court costs incurred in such action. To the extent that a | ||||||
8 | producer liable for the tax imposed by this Act collects the | ||||||
9 | tax, and any penalties and interest, from a purchaser, such | ||||||
10 | tax, penalties, and interest are held in trust by the producer | ||||||
11 | for the benefit of the State of Illinois. | ||||||
12 | (b) For all production units permitted, or required to be | ||||||
13 | permitted, under this Act that a first purchaser begins to | ||||||
14 | purchase oil or gas from on or after July 1, 2013, the first | ||||||
15 | purchaser is required to withhold and remit the tax imposed by | ||||||
16 | this Act to the Department from the oil and gas purchased from | ||||||
17 | the production unit . The changes made by this amendatory Act of | ||||||
18 | the 100th General Assembly apply to taxes required to be | ||||||
19 | withheld on or after the effective date of this amendatory Act | ||||||
20 | of the 100th General Assembly. No exemption certificate issued | ||||||
21 | prior to the effective date of this amendatory Act of the 100th | ||||||
22 | General Assembly shall be valid on or after the effective date | ||||||
23 | of this amendatory Act of the 100th General Assembly. unless | ||||||
24 | the first purchaser obtains from the operator an exemption | ||||||
25 | certificate signed by the operator stating that the production | ||||||
26 | unit is not subject to the tax imposed by this Act. The |
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1 | exemption certificate must include the 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 | (c) Notwithstanding subsection (a) of this Section, the tax | ||||||
18 | is a lien on the oil and gas from the time of severance from the | ||||||
19 | land or under the water until the tax and all penalties and | ||||||
20 | interest are fully paid, and the State shall have a lien on all | ||||||
21 | the oil or gas severed from the production unit in this State | ||||||
22 | in the hands of the operator, any producer or the first or any | ||||||
23 | subsequent purchaser thereof to secure the payment of the tax. | ||||||
24 | If a lien is filed by the Department, the purchaser shall | ||||||
25 | withhold from producers or operators the amount of tax, penalty | ||||||
26 | and interest identified in the lien.
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1 | (Source: P.A. 98-22, eff. 6-17-13.)
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