100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5825

 

Introduced , by Rep. Robert W. Pritchard

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides for filing of aviation fuel tax returns by retailers selling aviation fuel. Provides that if a municipality or business district doesn't certify that it has an airport-related purpose, the municipality's or district's local share of aviation fuel proceeds may not be distributed to the municipality or district. Amends the Illinois Municipal Code. Provides that funds received by a municipality from the imposition of taxes on the sale or use of aviation fuel may be used only for to expenditures for airport-related purposes. Defines "airport-related purposes". Provides that beginning July 1, 2018, the Department of Revenue shall certify to a municipality receiving distributions of use or occupation taxes imposed on aviation fuel the amount of tax attributed to aviation fuel sales as reported by retailers on aviation fuel tax returns to the Department of Revenue. Requires municipalities and business districts to certify whether the municipality has an airport-related purpose before imposing an occupation or use tax. Provides that beginning July 1, 2018, a municipality shall certify annually to the Department of Revenue that all of the municipality's expenditures of tax revenues generated from the sale or use of aviation fuel that were received on or after July 1, 2018 were devoted to airport-related purposes. Provides that the Department of Revenue shall provide forms and adopt rules for the filing of the certification. Limits the provisions' applicability only for so long as the revenue use requirements of specified federal statutes are binding on the State. Limits home rule powers.


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FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5825LRB100 20825 AWJ 36317 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by adding Section 9.5
5as follows:
 
6    (35 ILCS 105/9.5 new)
7    Sec. 9.5. Aviation fuel tax returns.
8    (a) As used in this Section, "aviation fuel" means a
9product that is intended for use or offered for sale as fuel
10for an aircraft.
11    (b) Notwithstanding any other provisions of this Act to the
12contrary:
13        (1) Beginning on January 1, 2018, each retailer
14    required or authorized to collect the tax imposed by this
15    Act on aviation fuel sold at retail in this State during
16    the preceding calendar month shall, instead of reporting
17    and paying tax on aviation fuel as otherwise required by
18    Section 9, file and pay tax to the Department on an
19    aviation fuel tax return, on or before the twentieth day of
20    each calendar month. The requirements related to the return
21    shall be as otherwise provided in Section 9. Retailers
22    collecting tax on aviation fuel shall file all aviation
23    fuel tax returns and shall make all aviation fuel fee

 

 

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1    payments by electronic means in the manner and form
2    required by the Department.
3        (2) If a municipality or District has not certified to
4    the Department of Transportation that the municipality or
5    District has an airport-related purpose under subsection
6    (d) of Section 8-11-22 of the Illinois Municipal Code, then
7    the municipality's or District's local share of aviation
8    fuel proceeds from aviation fuel tax returns under the Use
9    Tax Act, the Service Use Tax Act, the Service Occupation
10    Tax Act, and the Retailers' Occupation Tax Act may not be
11    distributed from the Local Government Tax Fund to the
12    municipality or District.
 
13    Section 10. The Service Use Tax Act is amended by adding
14Section 9.5 as follows:
 
15    (35 ILCS 110/9.5 new)
16    Sec. 9.5. Aviation fuel tax returns.
17    (a) As used in this Section, "aviation fuel" means a
18product that is intended for use or offered for sale as fuel
19for an aircraft.
20    (b) Notwithstanding any other provisions of this Act to the
21contrary:
22        (1) Beginning on January 1, 2018, each retailer
23    required or authorized to collect the tax imposed by this
24    Act on aviation fuel sold at retail in this State during

 

 

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1    the preceding calendar month shall, instead of reporting
2    and paying tax on aviation fuel as otherwise required by
3    Section 9, file and pay tax to the Department on an
4    aviation fuel tax return, on or before the twentieth day of
5    each calendar month. The requirements related to the return
6    shall be as otherwise provided in Section 9. Retailers
7    collecting tax on aviation fuel shall file all aviation
8    fuel tax returns and shall make all aviation fuel fee
9    payments by electronic means in the manner and form
10    required by the Department.
11        (2) If a municipality or District has not certified to
12    the Department of Transportation that the municipality or
13    District has an airport-related purpose under subsection
14    (d) of Section 8-11-22 of the Illinois Municipal Code, then
15    the municipality's or District's local share of aviation
16    fuel proceeds from aviation fuel tax returns under the Use
17    Tax Act, the Service Use Tax Act, the Service Occupation
18    Tax Act, and the Retailers' Occupation Tax Act may not be
19    distributed from the Local Government Tax Fund to the
20    municipality or District.
 
21    Section 15. The Service Occupation Tax Act is amended by
22adding Section 9.5 as follows:
 
23    (35 ILCS 115/9.5 new)
24    Sec. 9.5. Aviation fuel tax returns.

 

 

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1    (a) As used in this Section, "aviation fuel" means a
2product that is intended for use or offered for sale as fuel
3for an aircraft.
4    (b) Notwithstanding any other provisions of this Act to the
5contrary:
6        (1) Beginning on January 1, 2018, each retailer
7    required or authorized to collect the tax imposed by this
8    Act on aviation fuel sold at retail in this State during
9    the preceding calendar month shall, instead of reporting
10    and paying tax on aviation fuel as otherwise required by
11    Section 9, file and pay tax to the Department on an
12    aviation fuel tax return, on or before the twentieth day of
13    each calendar month. The requirements related to the return
14    shall be as otherwise provided in Section 9. Retailers
15    collecting tax on aviation fuel shall file all aviation
16    fuel tax returns and shall make all aviation fuel fee
17    payments by electronic means in the manner and form
18    required by the Department.
19        (2) If a municipality or District has not certified to
20    the Department of Transportation that the municipality or
21    District has an airport-related purpose under subsection
22    (d) of Section 8-11-22 of the Illinois Municipal Code, then
23    the municipality's or District's local share of aviation
24    fuel proceeds from aviation fuel tax returns under the Use
25    Tax Act, the Service Use Tax Act, the Service Occupation
26    Tax Act, and the Retailers' Occupation Tax Act may not be

 

 

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1    distributed from the Local Government Tax Fund to the
2    municipality or District.
 
3    Section 20. The Retailers' Occupation Tax Act is amended by
4adding Section 3.5 as follows:
 
5    (35 ILCS 120/3.5 new)
6    Sec. 3.5. Aviation fuel tax returns; aviation fuel local
7share.
8    (a) As used in this Section, "aviation fuel" means a
9product that is intended for use or offered for sale as fuel
10for an aircraft.
11    (b) Notwithstanding any other provisions of this Act to the
12contrary:
13        (1) Beginning on January 1, 2018, each retailer
14    required or authorized to collect the tax imposed by this
15    Act on aviation fuel sold at retail in this State during
16    the preceding calendar month shall, instead of reporting
17    and paying tax on aviation fuel as otherwise required by
18    Section 3, file and pay tax to the Department on an
19    aviation fuel tax return, on or before the twentieth day of
20    each calendar month. The requirements related to the return
21    shall be as otherwise provided in Section 3. Retailers
22    collecting tax on aviation fuel shall file all aviation
23    fuel tax returns and shall make all aviation fuel fee
24    payments by electronic means in the manner and form

 

 

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1    required by the Department.
2        (2) If a municipality or District has not certified to
3    the Department of Transportation that the municipality or
4    District has an airport-related purpose under subsection
5    (d) of Section 8-11-22 of the Illinois Municipal Code, then
6    the municipality's or District's local share of aviation
7    fuel proceeds from aviation fuel tax returns under the Use
8    Tax Act, the Service Use Tax Act, the Service Occupation
9    Tax Act, and the Retailers' Occupation Tax Act may not be
10    distributed from the Local Government Tax Fund to the
11    municipality or District.
 
12    Section 25. The Illinois Municipal Code is amended by
13adding Section 8-11-22 as follows:
 
14    (65 ILCS 5/8-11-22 new)
15    Sec. 8-11-22. Aviation fuel revenue.
16    (a) As used in this Section, "airport-related purposes"
17means the capital or operating costs of (1) an airport, (2) a
18local airport system, or (3) any other local facility that is
19owned or operated by the person or entity that owns or operates
20the airport that is directly and substantially related to the
21air transportation of passengers or property as provided in 49
22U.S.C. 47133. "Airport-related purposes" also means any
23permitted airfield costs, as that term is defined in the FAA
24Airport Compliance Manual, Order 5190.6B.

 

 

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1    (b) Funds received by a municipality from the imposition of
2taxes on the sale or use of aviation fuel may be used only for
3expenditures for airport-related purposes.
4    (c) Beginning July 1, 2018, the Department of Revenue shall
5certify to a municipality receiving distributions of use or
6occupation taxes imposed on aviation fuel the amount of tax
7attributed to aviation fuel sales as reported by retailers on
8aviation fuel tax returns to the Department of Revenue.
9    (d) On or before April 1, 2018, and on or before each April
101 and October 1 thereafter, each municipality (and District in
11the case of business district operating within a municipality)
12must certify to the Department of Transportation, in the form
13and manner required by the Department, whether the municipality
14has an airport-related purpose, which would allow any
15Retailers' Occupation Tax and Service Occupation Tax imposed by
16the municipality to include tax on aviation fuel. On or before
17May 1, 2018, and on or before each May 1 and November 1
18thereafter, the Department of Transportation shall provide to
19the Department of Revenue, a list of units of local government
20which have certified to the Department of Transportation that
21they have airport-related purposes, which would allow any
22Retailers' Occupation Tax and Service Occupation Tax imposed by
23the unit of local government to include tax on aviation fuel.
24All disputes regarding whether or not a unit of local
25government has an airport-related purpose shall be resolved by
26the Department of Transportation.

 

 

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1    (e) Beginning July 1, 2018, a municipality shall certify
2annually to the Department of Revenue that all of the
3municipality's expenditures of tax revenues generated from the
4sale or use of aviation fuel were devoted to airport-related
5purposes. The Department of Revenue shall provide forms and
6adopt rules for the filing of the certification. The
7certification applies to all funds received for aviation fuel
8sold on or after July 1, 2018.
9    (f) This Section only applies for so long as the revenue
10use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
11binding on the State.
12    (g) A home rule municipality may not expend revenue
13received from the imposition of taxes on the sale or use of
14aviation fuel in a manner inconsistent with this Section and
15must provide certification to the Department of Revenue in a
16manner consistent with this Section. This Section is a
17limitation under subsection (i) of Section 6 of Article VII of
18the Illinois Constitution on the concurrent exercise by home
19rule units of powers and functions exercised by the State.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    35 ILCS 105/9.5 new
4    35 ILCS 110/9.5 new
5    35 ILCS 115/9.5 new
6    35 ILCS 120/3.5 new
7    65 ILCS 5/8-11-22 new