Statutory Reference
Electronic Services
Definition
Gas Use Tax is imposed on the purchase of natural gas from outside of Illinois for use or consumption in Illinois. The delivering supplier collects, reports, and pays the Gas Use Tax to the Illinois Department of Revenue (IDOR) unless a customer elects to become a self-assessing purchaser and provides the delivering supplier with a copy of his certificate of registration. If the customer elects to become a self-assessing purchaser, they must report and pay the Gas Use Tax directly to IDOR.
Tax Rate
Delivering suppliers: The tax amount that must be collected from each customer per month is 2.4 cents per therm of gas.
Self-assessing purchaser: The tax amount must be paid directly to IDOR is 5 percent (.05) of the purchase price or 2.4 cents per therm of gas - whichever is less.
Allowable Exemptions
There are six exemptions that apply only to Gas Use Tax. The exemptions are for natural gas:
- used by governmental bodies or entities operated and organized exclusively for charitable, religious, or educational purposes who have been issued a tax exemption identification number by IDOR.
- used in the production of electric energy. This does not include gas used in the general maintenance or heating of an electric energy production facility or other structures.
- used in petroleum refinery operations.
- used in liquefaction and fractionation processes that produce value-added natural gas by-products for resale.
- used in the production of anhydrous ammonia and downstream nitrogen fertilizer products for resale.
- used by a business located in an enterprise zone.
Local Taxes
Municipalities may impose a tax on persons engaged in the business of distributing, supplying, furnishing, or selling natural gas for use or consumption (and not for resale) within the corporate limits of the municipality. The rate cannot exceed 5 percent of gross receipts (8 percent in cities with populations greater than 500,000). The Department of Revenue does not collect these locally imposed taxes.
Additional Registration Requirements
If you are a self-assessor, in addition to filing
Form REG-1, Illinois Business Registration Application, you must file
Form REG-10, Gas Use Tax Self-Assessing Purchaser Application. You may also register using our on-line
Business Registration program.
Form/Filing & Payment Requirements
Return - Form RG-1, Gas Tax Return, is filed monthly, quarterly, or annually, based on the taxpayer’s average monthly liability. The department determines how often a return must be filed.
- A monthly return is due on or before the 15th day of the month following the month for which the return is filed.
- A quarterly return is due on or before the last day of the month following the quarter for which the return is filed.
- An annual return is due on or before January 31 of the year following the year for which the return is filed.
Quarter-monthly payments
Companies that have an average monthly liability of $10,000 or more must send quarter-monthly payments. Payments are due on the 7th, 15th, 22nd, and the last day of the month. Taxpayers who mail their quarter-monthly remittances to the department must complete Form RPU-50, Public Utilities Quarter-Monthly Payment - Gas Tax. Do not send Form RPU-50 if you remit your payment by EFT.
A taxpayer that had an annual liability of $200,000 or more in the preceding calendar year must remit any tax payment by Electronic Funds Transfer (EFT). For more information, please see WebFile & Pay Gas Tax.
