100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3136

 

Introduced , by Rep. Robert W. Pritchard

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 505/2  from Ch. 120, par. 418
35 ILCS 505/8  from Ch. 120, par. 424

    Amends the Motor Fuel Tax Law. Provides that, beginning on July 1, 2017, the rate of tax imposed in the Act shall be 29 cents per gallon (currently, 19 cents per gallon), plus an additional 2 1/2 cents per gallon for diesel fuel. Provides that, of the additional 10 cents per gallon, 6 cents per gallon shall be deposited into the Road Fund and 4 cents per gallon shall be distributed to municipalities, counties, and road districts.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Motor Fuel Tax Law is amended by changing
5Sections 2 and 8 as follows:
 
6    (35 ILCS 505/2)  (from Ch. 120, par. 418)
7    Sec. 2. A tax is imposed on the privilege of operating
8motor vehicles upon the public highways and recreational-type
9watercraft upon the waters of this State.
10    (a) Prior to August 1, 1989, the tax is imposed at the rate
11of 13 cents per gallon on all motor fuel used in motor vehicles
12operating on the public highways and recreational type
13watercraft operating upon the waters of this State. Beginning
14on August 1, 1989 and until January 1, 1990, the rate of the
15tax imposed in this paragraph shall be 16 cents per gallon.
16Beginning January 1, 1990 and through June 30, 2017, the rate
17of tax imposed in this paragraph shall be 19 cents per gallon.
18Beginning on July 1, 2017, the rate of tax imposed in this
19paragraph shall be 29 cents per gallon.
20    (b) The tax on the privilege of operating motor vehicles
21which use diesel fuel shall be the rate according to paragraph
22(a) plus an additional 2 1/2 cents per gallon. "Diesel fuel" is
23defined as any product intended for use or offered for sale as

 

 

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1a fuel for engines in which the fuel is injected into the
2combustion chamber and ignited by pressure without electric
3spark.
4    (c) A tax is imposed upon the privilege of engaging in the
5business of selling motor fuel as a retailer or reseller on all
6motor fuel used in motor vehicles operating on the public
7highways and recreational type watercraft operating upon the
8waters of this State: (1) at the rate of 3 cents per gallon on
9motor fuel owned or possessed by such retailer or reseller at
1012:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents per
11gallon on motor fuel owned or possessed by such retailer or
12reseller at 12:01 A.M. on January 1, 1990.
13    Retailers and resellers who are subject to this additional
14tax shall be required to inventory such motor fuel and pay this
15additional tax in a manner prescribed by the Department of
16Revenue.
17    The tax imposed in this paragraph (c) shall be in addition
18to all other taxes imposed by the State of Illinois or any unit
19of local government in this State.
20    (d) Except as provided in Section 2a, the collection of a
21tax based on gallonage of gasoline used for the propulsion of
22any aircraft is prohibited on and after October 1, 1979.
23    (e) The collection of a tax, based on gallonage of all
24products commonly or commercially known or sold as 1-K
25kerosene, regardless of its classification or uses, is
26prohibited (i) on and after July 1, 1992 until December 31,

 

 

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11999, except when the 1-K kerosene is either: (1) delivered
2into bulk storage facilities of a bulk user, or (2) delivered
3directly into the fuel supply tanks of motor vehicles and (ii)
4on and after January 1, 2000. Beginning on January 1, 2000, the
5collection of a tax, based on gallonage of all products
6commonly or commercially known or sold as 1-K kerosene,
7regardless of its classification or uses, is prohibited except
8when the 1-K kerosene is delivered directly into a storage tank
9that is located at a facility that has withdrawal facilities
10that are readily accessible to and are capable of dispensing
111-K kerosene into the fuel supply tanks of motor vehicles. For
12purposes of this subsection (e), a facility is considered to
13have withdrawal facilities that are not "readily accessible to
14and capable of dispensing 1-K kerosene into the fuel supply
15tanks of motor vehicles" only if the 1-K kerosene is delivered
16from: (i) a dispenser hose that is short enough so that it will
17not reach the fuel supply tank of a motor vehicle or (ii) a
18dispenser that is enclosed by a fence or other physical barrier
19so that a vehicle cannot pull alongside the dispenser to permit
20fueling.
21    Any person who sells or uses 1-K kerosene for use in motor
22vehicles upon which the tax imposed by this Law has not been
23paid shall be liable for any tax due on the sales or use of 1-K
24kerosene.
25(Source: P.A. 96-1384, eff. 7-29-10.)
 

 

 

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1    (35 ILCS 505/8)  (from Ch. 120, par. 424)
2    Sec. 8. Except as provided in Section 8a, subdivision
3(h)(1) of Section 12a, Section 13a.6, and items 13, 14, 15, and
416 of Section 15, all money received by the Department under
5this Act, including payments made to the Department by member
6jurisdictions participating in the International Fuel Tax
7Agreement, shall be deposited in a special fund in the State
8treasury, to be known as the "Motor Fuel Tax Fund", and shall
9be used as follows:
10    (a) 2 1/2 cents per gallon of the tax collected on special
11fuel under paragraph (b) of Section 2 and Section 13a of this
12Act shall be transferred to the State Construction Account Fund
13in the State Treasury;
14    (a-5) 6 cents per gallon of the tax collected under this
15Act shall be deposited into the Road Fund.
16    (a-10) 4 cents per gallon of the tax collected under this
17Act shall be transferred to the Department of Transportation to
18be distributed as follows:
19        (1) 49.10% to the municipalities of the State;
20        (2) 16.74% to the counties of the State having
21    1,000,000 or more inhabitants;
22        (3) 18.27% to the counties of the State having less
23    than 1,000,000 inhabitants; and
24        (4) 15.89% to the road districts of the State.
25    (b) $420,000 shall be transferred each month to the State
26Boating Act Fund to be used by the Department of Natural

 

 

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1Resources for the purposes specified in Article X of the Boat
2Registration and Safety Act;
3    (c) $3,500,000 shall be transferred each month to the Grade
4Crossing Protection Fund to be used as follows: not less than
5$12,000,000 each fiscal year shall be used for the construction
6or reconstruction of rail highway grade separation structures;
7$2,250,000 in fiscal years 2004 through 2009 and $3,000,000 in
8fiscal year 2010 and each fiscal year thereafter shall be
9transferred to the Transportation Regulatory Fund and shall be
10accounted for as part of the rail carrier portion of such funds
11and shall be used to pay the cost of administration of the
12Illinois Commerce Commission's railroad safety program in
13connection with its duties under subsection (3) of Section
1418c-7401 of the Illinois Vehicle Code, with the remainder to be
15used by the Department of Transportation upon order of the
16Illinois Commerce Commission, to pay that part of the cost
17apportioned by such Commission to the State to cover the
18interest of the public in the use of highways, roads, streets,
19or pedestrian walkways in the county highway system, township
20and district road system, or municipal street system as defined
21in the Illinois Highway Code, as the same may from time to time
22be amended, for separation of grades, for installation,
23construction or reconstruction of crossing protection or
24reconstruction, alteration, relocation including construction
25or improvement of any existing highway necessary for access to
26property or improvement of any grade crossing and grade

 

 

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1crossing surface including the necessary highway approaches
2thereto of any railroad across the highway or public road, or
3for the installation, construction, reconstruction, or
4maintenance of a pedestrian walkway over or under a railroad
5right-of-way, as provided for in and in accordance with Section
618c-7401 of the Illinois Vehicle Code. The Commission may order
7up to $2,000,000 per year in Grade Crossing Protection Fund
8moneys for the improvement of grade crossing surfaces and up to
9$300,000 per year for the maintenance and renewal of 4-quadrant
10gate vehicle detection systems located at non-high speed rail
11grade crossings. The Commission shall not order more than
12$2,000,000 per year in Grade Crossing Protection Fund moneys
13for pedestrian walkways. In entering orders for projects for
14which payments from the Grade Crossing Protection Fund will be
15made, the Commission shall account for expenditures authorized
16by the orders on a cash rather than an accrual basis. For
17purposes of this requirement an "accrual basis" assumes that
18the total cost of the project is expended in the fiscal year in
19which the order is entered, while a "cash basis" allocates the
20cost of the project among fiscal years as expenditures are
21actually made. To meet the requirements of this subsection, the
22Illinois Commerce Commission shall develop annual and 5-year
23project plans of rail crossing capital improvements that will
24be paid for with moneys from the Grade Crossing Protection
25Fund. The annual project plan shall identify projects for the
26succeeding fiscal year and the 5-year project plan shall

 

 

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1identify projects for the 5 directly succeeding fiscal years.
2The Commission shall submit the annual and 5-year project plans
3for this Fund to the Governor, the President of the Senate, the
4Senate Minority Leader, the Speaker of the House of
5Representatives, and the Minority Leader of the House of
6Representatives on the first Wednesday in April of each year;
7    (d) of the amount remaining after allocations provided for
8in subsections (a), (b) and (c), a sufficient amount shall be
9reserved to pay all of the following:
10        (1) the costs of the Department of Revenue in
11    administering this Act;
12        (2) the costs of the Department of Transportation in
13    performing its duties imposed by the Illinois Highway Code
14    for supervising the use of motor fuel tax funds apportioned
15    to municipalities, counties and road districts;
16        (3) refunds provided for in Section 13, refunds for
17    overpayment of decal fees paid under Section 13a.4 of this
18    Act, and refunds provided for under the terms of the
19    International Fuel Tax Agreement referenced in Section
20    14a;
21        (4) from October 1, 1985 until June 30, 1994, the
22    administration of the Vehicle Emissions Inspection Law,
23    which amount shall be certified monthly by the
24    Environmental Protection Agency to the State Comptroller
25    and shall promptly be transferred by the State Comptroller
26    and Treasurer from the Motor Fuel Tax Fund to the Vehicle

 

 

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1    Inspection Fund, and for the period July 1, 1994 through
2    June 30, 2000, one-twelfth of $25,000,000 each month, for
3    the period July 1, 2000 through June 30, 2003, one-twelfth
4    of $30,000,000 each month, and $15,000,000 on July 1, 2003,
5    and $15,000,000 on January 1, 2004, and $15,000,000 on each
6    July 1 and October 1, or as soon thereafter as may be
7    practical, during the period July 1, 2004 through June 30,
8    2012, and $30,000,000 on June 1, 2013, or as soon
9    thereafter as may be practical, and $15,000,000 on July 1
10    and October 1, or as soon thereafter as may be practical,
11    during the period of July 1, 2013 through June 30, 2015,
12    for the administration of the Vehicle Emissions Inspection
13    Law of 2005, to be transferred by the State Comptroller and
14    Treasurer from the Motor Fuel Tax Fund into the Vehicle
15    Inspection Fund;
16        (5) amounts ordered paid by the Court of Claims; and
17        (6) payment of motor fuel use taxes due to member
18    jurisdictions under the terms of the International Fuel Tax
19    Agreement. The Department shall certify these amounts to
20    the Comptroller by the 15th day of each month; the
21    Comptroller shall cause orders to be drawn for such
22    amounts, and the Treasurer shall administer those amounts
23    on or before the last day of each month;
24    (e) after allocations for the purposes set forth in
25subsections (a), (b), (c) and (d), the remaining amount shall
26be apportioned as follows:

 

 

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1        (1) Until January 1, 2000, 58.4%, and beginning January
2    1, 2000, 45.6% shall be deposited as follows:
3            (A) 37% into the State Construction Account Fund,
4        and
5            (B) 63% into the Road Fund, $1,250,000 of which
6        shall be reserved each month for the Department of
7        Transportation to be used in accordance with the
8        provisions of Sections 6-901 through 6-906 of the
9        Illinois Highway Code;
10        (2) Until January 1, 2000, 41.6%, and beginning January
11    1, 2000, 54.4% shall be transferred to the Department of
12    Transportation to be distributed as follows:
13            (A) 49.10% to the municipalities of the State,
14            (B) 16.74% to the counties of the State having
15        1,000,000 or more inhabitants,
16            (C) 18.27% to the counties of the State having less
17        than 1,000,000 inhabitants,
18            (D) 15.89% to the road districts of the State.
19    As soon as may be after the first day of each month the
20Department of Transportation shall allot to each municipality
21its share of the amount apportioned to the several
22municipalities under subsection (a-10) and this subsection (e)
23which shall be in proportion to the population of such
24municipalities as determined by the last preceding municipal
25census if conducted by the Federal Government or Federal
26census. If territory is annexed to any municipality subsequent

 

 

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1to the time of the last preceding census the corporate
2authorities of such municipality may cause a census to be taken
3of such annexed territory and the population so ascertained for
4such territory shall be added to the population of the
5municipality as determined by the last preceding census for the
6purpose of determining the allotment for that municipality. If
7the population of any municipality was not determined by the
8last Federal census preceding any apportionment, the
9apportionment to such municipality shall be in accordance with
10any census taken by such municipality. Any municipal census
11used in accordance with this Section shall be certified to the
12Department of Transportation by the clerk of such municipality,
13and the accuracy thereof shall be subject to approval of the
14Department which may make such corrections as it ascertains to
15be necessary.
16    As soon as may be after the first day of each month the
17Department of Transportation shall allot to each county its
18share of the amount apportioned to the several counties of the
19State under subsection (a-10) and this subsection (e) as herein
20provided. Each allotment to the several counties having less
21than 1,000,000 inhabitants shall be in proportion to the amount
22of motor vehicle license fees received from the residents of
23such counties, respectively, during the preceding calendar
24year. The Secretary of State shall, on or before April 15 of
25each year, transmit to the Department of Transportation a full
26and complete report showing the amount of motor vehicle license

 

 

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1fees received from the residents of each county, respectively,
2during the preceding calendar year. The Department of
3Transportation shall, each month, use for allotment purposes
4the last such report received from the Secretary of State.
5    As soon as may be after the first day of each month, the
6Department of Transportation shall allot to the several
7counties their share of the amount apportioned for the use of
8road districts under subsection (a-10) and this subsection (e).
9The allotment shall be apportioned among the several counties
10in the State in the proportion which the total mileage of
11township or district roads in the respective counties bears to
12the total mileage of all township and district roads in the
13State. Funds allotted to the respective counties for the use of
14road districts therein shall be allocated to the several road
15districts in the county in the proportion which the total
16mileage of such township or district roads in the respective
17road districts bears to the total mileage of all such township
18or district roads in the county. After July 1 of any year prior
19to 2011, no allocation shall be made for any road district
20unless it levied a tax for road and bridge purposes in an
21amount which will require the extension of such tax against the
22taxable property in any such road district at a rate of not
23less than either .08% of the value thereof, based upon the
24assessment for the year immediately prior to the year in which
25such tax was levied and as equalized by the Department of
26Revenue or, in DuPage County, an amount equal to or greater

 

 

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1than $12,000 per mile of road under the jurisdiction of the
2road district, whichever is less. Beginning July 1, 2011 and
3each July 1 thereafter, an allocation shall be made for any
4road district if it levied a tax for road and bridge purposes.
5In counties other than DuPage County, if the amount of the tax
6levy requires the extension of the tax against the taxable
7property in the road district at a rate that is less than 0.08%
8of the value thereof, based upon the assessment for the year
9immediately prior to the year in which the tax was levied and
10as equalized by the Department of Revenue, then the amount of
11the allocation for that road district shall be a percentage of
12the maximum allocation equal to the percentage obtained by
13dividing the rate extended by the district by 0.08%. In DuPage
14County, if the amount of the tax levy requires the extension of
15the tax against the taxable property in the road district at a
16rate that is less than the lesser of (i) 0.08% of the value of
17the taxable property in the road district, based upon the
18assessment for the year immediately prior to the year in which
19such tax was levied and as equalized by the Department of
20Revenue, or (ii) a rate that will yield an amount equal to
21$12,000 per mile of road under the jurisdiction of the road
22district, then the amount of the allocation for the road
23district shall be a percentage of the maximum allocation equal
24to the percentage obtained by dividing the rate extended by the
25district by the lesser of (i) 0.08% or (ii) the rate that will
26yield an amount equal to $12,000 per mile of road under the

 

 

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1jurisdiction of the road district.
2    Prior to 2011, if any road district has levied a special
3tax for road purposes pursuant to Sections 6-601, 6-602 and
46-603 of the Illinois Highway Code, and such tax was levied in
5an amount which would require extension at a rate of not less
6than .08% of the value of the taxable property thereof, as
7equalized or assessed by the Department of Revenue, or, in
8DuPage County, an amount equal to or greater than $12,000 per
9mile of road under the jurisdiction of the road district,
10whichever is less, such levy shall, however, be deemed a proper
11compliance with this Section and shall qualify such road
12district for an allotment under this Section. Beginning in 2011
13and thereafter, if any road district has levied a special tax
14for road purposes under Sections 6-601, 6-602, and 6-603 of the
15Illinois Highway Code, and the tax was levied in an amount that
16would require extension at a rate of not less than 0.08% of the
17value of the taxable property of that road district, as
18equalized or assessed by the Department of Revenue or, in
19DuPage County, an amount equal to or greater than $12,000 per
20mile of road under the jurisdiction of the road district,
21whichever is less, that levy shall be deemed a proper
22compliance with this Section and shall qualify such road
23district for a full, rather than proportionate, allotment under
24this Section. If the levy for the special tax is less than
250.08% of the value of the taxable property, or, in DuPage
26County if the levy for the special tax is less than the lesser

 

 

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1of (i) 0.08% or (ii) $12,000 per mile of road under the
2jurisdiction of the road district, and if the levy for the
3special tax is more than any other levy for road and bridge
4purposes, then the levy for the special tax qualifies the road
5district for a proportionate, rather than full, allotment under
6this Section. If the levy for the special tax is equal to or
7less than any other levy for road and bridge purposes, then any
8allotment under this Section shall be determined by the other
9levy for road and bridge purposes.
10    Prior to 2011, if a township has transferred to the road
11and bridge fund money which, when added to the amount of any
12tax levy of the road district would be the equivalent of a tax
13levy requiring extension at a rate of at least .08%, or, in
14DuPage County, an amount equal to or greater than $12,000 per
15mile of road under the jurisdiction of the road district,
16whichever is less, such transfer, together with any such tax
17levy, shall be deemed a proper compliance with this Section and
18shall qualify the road district for an allotment under this
19Section.
20    In counties in which a property tax extension limitation is
21imposed under the Property Tax Extension Limitation Law, road
22districts may retain their entitlement to a motor fuel tax
23allotment or, beginning in 2011, their entitlement to a full
24allotment if, at the time the property tax extension limitation
25was imposed, the road district was levying a road and bridge
26tax at a rate sufficient to entitle it to a motor fuel tax

 

 

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1allotment and continues to levy the maximum allowable amount
2after the imposition of the property tax extension limitation.
3Any road district may in all circumstances retain its
4entitlement to a motor fuel tax allotment or, beginning in
52011, its entitlement to a full allotment if it levied a road
6and bridge tax in an amount that will require the extension of
7the tax against the taxable property in the road district at a
8rate of not less than 0.08% of the assessed value of the
9property, based upon the assessment for the year immediately
10preceding the year in which the tax was levied and as equalized
11by the Department of Revenue or, in DuPage County, an amount
12equal to or greater than $12,000 per mile of road under the
13jurisdiction of the road district, whichever is less.
14    As used in this Section the term "road district" means any
15road district, including a county unit road district, provided
16for by the Illinois Highway Code; and the term "township or
17district road" means any road in the township and district road
18system as defined in the Illinois Highway Code. For the
19purposes of this Section, "township or district road" also
20includes such roads as are maintained by park districts, forest
21preserve districts and conservation districts. The Department
22of Transportation shall determine the mileage of all township
23and district roads for the purposes of making allotments and
24allocations of motor fuel tax funds for use in road districts.
25    Payment of motor fuel tax moneys to municipalities and
26counties shall be made as soon as possible after the allotment

 

 

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1is made. The treasurer of the municipality or county may invest
2these funds until their use is required and the interest earned
3by these investments shall be limited to the same uses as the
4principal funds.
5(Source: P.A. 97-72, eff. 7-1-11; 97-333, eff. 8-12-11; 98-24,
6eff. 6-19-13; 98-674, eff. 6-30-14.)