The Gas Use Tax Act is imposed on persons who purchase natural gas from outside of Illinois for their own use (not for resale). Purchasers may pay the Gas Use Tax to their distributor or may elect to become a self-assessor.
Use the “Tax Rate Database” to determine the rate for delivering suppliers and self-assessing purchasers.
There are six exemptions that apply only to Gas Use Tax. The exemptions are for natural gas:
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.
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.
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.
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.