Gas Tax

Statutory Reference

35 ILCS 615/1 to 615/15

Electronic Services

MyTax Illinois

Definition

The Gas Tax is imposed on persons in the business of distributing, supplying, furnishing, or selling natural gas for use or consumption (not for resale). Propane gas is taxed under this act providing it is delivered by pipeline to the consumer.

Tax Rate

Use the “Tax Rate Database” to determine the rate.

Allowable Deductions

The following sales of natural gas are exempt from tax:

Sales for resale
Sales in interstate commerce
Sales to businesses certified by the Illinois Department of Commerce and Economic Opportunity and located in an enterprise zone
Sales to the federal government

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. For more information about these taxes, contact the unit of local government that imposes them.

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 Electronic Funds Transfer (EFT).

A taxpayer with an annual liability of $20,000 or more in the preceding calendar year must remit any tax payment by EFT.

Questions?

Call us at: 1 217 782-6045
Mail Form RG-1 to:
GAS TAX
ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19019
SPRINGFIELD IL 62794-9019