Gas Use Tax

• MyTax Illinois
  

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:

• 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.

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 REG-1-G, Gas Use Tax Self-Assessing Purchaser. 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.

• 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.
  

• Call us at: 1 217 782-5906
• Mail Form RG-1 to:
  GAS TAX
  ILLINOIS DEPARTMENT OF REVENUE
  PO BOX 19019
  SPRINGFIELD IL 62794-9019