100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3224

 

Introduced 2/15/2018, by Sen. Chris Nybo

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 505/1.1  from Ch. 120, par. 417.1
35 ILCS 505/1.2  from Ch. 120, par. 417.2
35 ILCS 505/1.3a new
35 ILCS 505/1.6  from Ch. 120, par. 417.6
35 ILCS 505/1.14  from Ch. 120, par. 417.14
35 ILCS 505/1.20  from Ch. 120, par. 417.20
35 ILCS 505/1.30 new
35 ILCS 505/3  from Ch. 120, par. 419
35 ILCS 505/3d new
35 ILCS 505/3e new
35 ILCS 505/3f new
35 ILCS 505/3g new
35 ILCS 505/12  from Ch. 120, par. 428
35 ILCS 505/12a  from Ch. 120, par. 428a
35 ILCS 505/13  from Ch. 120, par. 429
35 ILCS 505/15  from Ch. 120, par. 431
35 ILCS 505/16  from Ch. 120, par. 432
35 ILCS 120/2d  from Ch. 120, par. 441d

    Amends the Motor Fuel Tax Law. Contains provisions requiring alternative fuel supplier licenses. Provides that licensed distributors, suppliers, and receivers are not considered blenders under the Act. Provides that the term "blender" includes persons who engage in the business of selling motor fuel at retail and not for resale that is blended by purchasers through the use of blender pumps. Amends the Retailers' Occupation Tax Act. Provides that prepayment provisions do not apply to alternative fuel.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3224LRB100 20669 HLH 36121 b

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 1.1, 1.2, 1.6, 1.14, 1.20, 3, 12, 12a, 13, 15, and 16
6and by adding Sections 1.3a, 1.30, 3d, 3e, 3f, and 3g as
7follows:
 
8    (35 ILCS 505/1.1)  (from Ch. 120, par. 417.1)
9    Sec. 1.1. "Motor Fuel" means all volatile and inflammable
10liquids, volatile and inflammable gases, or any other products,
11now known or hereafter developed, that are produced, blended or
12compounded for the purpose of, or which are suitable or
13practicable for, operating motor vehicles. Among other things,
14"Motor Fuel" includes "Special Fuel" as defined in Section 1.13
15of this Act and "alternative fuel" as defined in Section 1.3a
16of this Act.
17(Source: Laws 1963, p. 1557.)
 
18    (35 ILCS 505/1.2)  (from Ch. 120, par. 417.2)
19    Sec. 1.2. Distributor. "Distributor" means a person who
20either (i) produces, refines, blends, compounds or
21manufactures motor fuel in this State, or (ii) transports motor
22fuel into this State, or (iii) exports motor fuel out of this

 

 

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1State, or (iv) engages in the distribution of motor fuel
2primarily by tank car or tank truck, or both, and who operates
3an Illinois bulk plant where he or she has active bulk storage
4capacity of not less than 30,000 gallons for gasoline as
5defined in item (A) of Section 5 of this Law. A person licensed
6under the provisions of this Section is also authorized to
7engage in blending. A person licensed under the provisions of
8this Section is also authorized to engage in blending.
9    "Distributor" does not, however, include a person who
10receives or transports into this State and sells or uses motor
11fuel under such circumstances as preclude the collection of the
12tax herein imposed, by reason of the provisions of the
13constitution and statutes of the United States. However, a
14person operating a motor vehicle into the State, may transport
15motor fuel in the ordinary fuel tank attached to the motor
16vehicle for the operation of the motor vehicle, without being
17considered a distributor. Any railroad registered under
18Section 18c-7201 of the Illinois Vehicle Code may deliver
19special fuel directly into the fuel supply tank of a locomotive
20owned, operated, or controlled by any other railroad registered
21under Section 18c-7201 of the Illinois Vehicle Code without
22being considered a distributor or supplier.
23(Source: P.A. 96-1384, eff. 7-29-10.)
 
24    (35 ILCS 505/1.3a new)
25    Sec. 1.3a. Alternative fuel. "Alternative fuel" means: (i)

 

 

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1compressed natural gas, liquefied natural gas and liquefied
2petroleum gas, when sold or used for operating motor vehicles
3on public highways or recreational-type watercraft upon the
4waters of this State; or (ii) any product, other than gasoline
5or diesel fuel, that is used or purchased for the purpose of
6blending with gasoline or diesel fuel to produce a product that
7is sold or used for operating motor vehicles on public highways
8and recreational-type watercraft upon the waters of this State.
9Products purchased or used for the purpose of blending include,
10but are not limited to, ethanol, butane, alcohol, and soy oil.
 
11    (35 ILCS 505/1.6)  (from Ch. 120, par. 417.6)
12    Sec. 1.6. "Blender" means any person, other than a licensed
13distributor, supplier, or receiver, who engages in the practice
14of blending as herein defined. Blenders include, but are not
15limited to, persons who engage in the business of selling motor
16fuel at retail and not for resale that is blended by purchasers
17through the use of blender pumps.
18(Source: Laws 1961, p. 3653.)
 
19    (35 ILCS 505/1.14)  (from Ch. 120, par. 417.14)
20    Sec. 1.14. Supplier. "Supplier" means any person other than
21a licensed distributor who (i) transports special fuel into
22this State; (ii) exports special fuel out of this State; or
23(iii) engages in the distribution of special fuel primarily by
24tank car or tank truck, or both, and who operates an Illinois

 

 

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1bulk plant where he has active bulk storage capacity of not
2less than 30,000 gallons for special fuel as defined in Section
31.13 of this Law.
4    "Supplier" does not, however, include a person who receives
5or transports into this State and sells or uses special fuel
6under such circumstances as preclude the collection of the tax
7herein imposed, by reason of the provisions of the Constitution
8and laws of the United States. However, a person operating a
9motor vehicle into the State, may transport special fuel in the
10ordinary fuel tank attached to the motor vehicle for the
11operation of the motor vehicle without being considered a
12supplier. Any railroad licensed as a bulk user and registered
13under Section 18c-7201 of the Illinois Vehicle Code may deliver
14special fuel directly into the fuel supply tank of a locomotive
15owned, operated, or controlled by any other railroad registered
16under Section 18c-7201 of the Illinois Vehicle Code without
17being considered a supplier. A person licensed as a supplier
18under the provisions of this Section is also authorized to
19engage in blending special fuel.
20(Source: P.A. 96-1384, eff. 7-29-10.)
 
21    (35 ILCS 505/1.20)  (from Ch. 120, par. 417.20)
22    Sec. 1.20. "Receiver" means a person who either produces,
23refines, blends, compounds or manufactures fuel in this State,
24or transports fuel into this State or receives fuel transported
25to him from without the State or exports fuel out of this

 

 

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1State, or who is engaged in distribution of fuel primarily by
2tank car or tank truck, or both, and who operates an Illinois
3bulk plant where he has active fuel bulk storage capacity of
4not less than 30,000 gallons. A person licensed as a receiver
5under the provisions of this Section is also authorized to
6engage in blending.
7(Source: P.A. 86-125; 86-958.)
 
8    (35 ILCS 505/1.30 new)
9    Sec. 1.30. Alternative fuel supplier. "Alternative fuel
10supplier" means any person, other than a licensed distributor,
11receiver, or supplier who sells alternative fuel: (i) to
12persons for the purpose of blending motor fuel that will be
13sold or used by such persons for the purpose of operating motor
14vehicles upon the public highways and recreational-type
15watercraft upon the waters of this State; (ii) to persons for
16the purpose of retail sale as motor fuel that will be used for
17the purpose of operating motor vehicles upon the public
18highways and recreational-type watercraft upon the waters of
19this State; or (iii) to persons for use by such persons in
20operating motor vehicles on the public highways and
21recreational-type watercraft upon the waters of this State.
 
22    (35 ILCS 505/3)  (from Ch. 120, par. 419)
23    Sec. 3. No person shall act as a distributor of motor fuel
24within this State without first securing a license to act as a

 

 

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1distributor of motor fuel from the Department. Application for
2such license shall be made to the Department upon blanks
3furnished by it. The application shall be signed and verified,
4and shall contain such information as the Department deems
5necessary. A blender shall, in addition to securing a
6distributor's license, make application to the Department for a
7blender's permit, setting forth in the application such
8information as the Department deems necessary. The applicant
9for a distributor's license shall also file with the Department
10a bond on a form to be approved by and with a surety or sureties
11satisfactory to the Department conditioned upon such applicant
12paying to the State of Illinois all monies becoming due by
13reason of the sale, export, or use of motor fuel by the
14applicant, together with all penalties and interest thereon.
15The Department shall fix the penalty of such bond in each case
16taking into consideration the amount of motor fuel expected to
17be sold, distributed, exported, and used by such applicant and
18the penalty fixed by the Department shall be such, as in its
19opinion, will protect the State of Illinois against failure to
20pay the amount hereinafter provided on motor fuel sold,
21distributed, exported, and used, but the amount of the penalty
22fixed by the Department shall not exceed twice the monthly
23amount that would be collectable as a tax in the event of a
24sale on all the motor fuel sold, distributed, exported, and
25used by the distributor inclusive of tax-free sales, exports,
26use, or distribution. Upon receipt of the application and bond

 

 

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1in proper form, the Department shall issue to the applicant a
2license to act as a distributor. No person who is in default to
3the State for monies due under this Act for the sale,
4distribution, export, or use of motor fuel shall receive a
5license to act as a distributor.
6    A license shall not be granted to any person whose
7principal place of business is in a state other than Illinois,
8unless such person is licensed for motor fuel distribution or
9export in the state in which the principal place of business is
10located and that such person is not in default to that State
11for any monies due for the sale, distribution, export, or use
12of motor fuel.
13(Source: P.A. 96-1384, eff. 7-29-10.)
 
14    (35 ILCS 505/3d new)
15    Sec. 3d. Alternative fuel supplier license. No person
16shall act as an alternative fuels supplier in this State
17without first securing a license as an alternative fuel
18supplier. Application for an alternative fuel supplier's
19license shall be made in the form and manner required by the
20Department. The application shall be signed and verified and
21shall contain such information as the Department deems
22necessary.
23    The Department, for cause, may require an applicant to post
24a bond on a form to be approved by and with a surety or sureties
25satisfactory to the Department conditioned upon such applicant

 

 

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1paying to the State of Illinois all monies becoming due by
2reason of the sale or use of alternative fuel by the applicant,
3together with all penalties and interest thereon. If a bond is
4required, it shall be equal to at least twice the estimated
5average tax liability of a monthly return. The Department shall
6fix the penalty of such bond in each case taking into
7consideration the amount of alternative fuel expected to be
8sold or used by such applicant and the penalty fixed by the
9Department shall be such as, in its opinion, will protect the
10State of Illinois against failure to pay the amount hereinafter
11provided on alternative fuel sold or used. No person who is in
12default to the State for moneys due under this Act for the
13sale, or use of motor fuel shall receive a license to act as an
14alternative fuel supplier.
15    A license shall not be granted to any person whose
16principal place of business is in a state other than Illinois,
17unless such person is licensed for motor fuel distribution,
18export or blending in the State in which the principal place of
19business is located and that other State requires such license
20and that such person is not in default to that State for any
21monies due for the sale, distribution, export, blending or use
22of motor fuel.
 
23    (35 ILCS 505/3e new)
24    Sec. 3e. Tax on purchases of alternative fuel; payment to
25alternative fuel suppliers; self-assessment of tax by

 

 

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1purchasers. Persons, other than licensed distributors,
2suppliers and receivers, that purchase alternative fuel for the
3purpose of (i) blending motor fuel that will be sold or used by
4such persons for the purpose of operating motor vehicles upon
5the public highways and recreational-type watercraft upon the
6waters of this State; (ii) sale to purchasers as motor fuel
7that will be used for the purpose of operating motor vehicles
8upon the public highways and recreational-type watercraft upon
9the waters of this State; or (iii) use by such persons in
10operating motor vehicles on the public highways and
11recreational-type watercraft upon the waters of this State
12shall remit the tax imposed under Sections 2 and 2a to licensed
13alternative fuel suppliers. Any person purchasing alternative
14fuel subject to tax under this Act as to which there has been
15no charge made to him of the tax imposed by Section 2 or 2a, or
16both, shall make payment to the Department of the tax imposed
17by Sections 2 and 2a on such alternative fuel. Any person who
18blends alternative fuel subject to tax under this Act that he
19or she has refined (and to which there has been no charge made
20to him of the tax imposed by Section 2 or 2a, or both) with
21gasoline or diesel fuel, shall make payment to the Department
22of the tax imposed by Sections 2 and 2a on such alternative
23fuel. Such payment shall be made to the Department no later
24than the 20th day of the month following the month in which the
25alternative fuel was purchased and shall be reported on the
26return required by Section 3f of the Law.
 

 

 

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1    (35 ILCS 505/3f new)
2    Sec. 3f. Alternative fuel suppliers; returns. A person
3holding a valid unrevoked license to act as an alternative fuel
4supplier shall, between the 1st and 20th days of each calendar
5month, make return to the Department, showing an itemized
6statement of the number of invoiced gallons of alternative fuel
7(i) sold to persons for the purpose of blending motor fuel that
8will be sold or used by such persons for the purpose of
9operating motor vehicles upon the public highways and
10recreational-type watercraft upon the waters of this State;
11(ii) sold to persons for the purpose of retail sale as motor
12fuel that will be used for the purpose of operating motor
13vehicles upon the public highways and recreational-type
14watercraft upon the waters of this State; (iii) sold to persons
15for use by such persons in operating motor vehicles upon public
16highways and recreational-type watercraft upon the waters of
17this State; and (iv) used by the alternative fuel supplier for
18operating motor vehicles upon public highways and
19recreational-type watercraft upon the waters of this State. The
20return shall also include the amount of alternative fuel that
21is lost or destroyed and such other reasonable information as
22required by the Department.
23    A person whose license to act as an alternative fuel
24supplier has been revoked shall make a return to the Department
25covering the period from the date of the last return to the

 

 

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1date of the revocation of the license, which return shall be
2delivered to the Department not later than 10 days from the
3date of the revocation or termination of the license of such
4alternative fuel supplier; the return shall in all other
5respects be subject to the same provisions and conditions as
6returns by alternative fuel suppliers licensed under the
7provisions of this Act.
8    If the Department has reason to believe and does believe
9that the amount shown on the return as sold, used, lost or
10destroyed is incorrect, the Department shall fix an amount for
11such sale, use, loss or destruction according to its best
12judgment and information, which amount so fixed by the
13Department shall be prima facie correct. All returns shall be
14in the form and manner required by the Department, and shall
15contain such other information as the Department may reasonably
16require. The return must be accompanied by supporting schedule
17data in the form required by the Department. All licensed
18alternative fuel suppliers shall report all losses of
19alternative fuel that are sustained on account of fire, theft,
20spillage, spoilage, leakage, or any other provable cause when
21filing the return for the period during which the loss
22occurred. If the alternative fuel supplier reports losses due
23to fire or theft, then the alternative fuel supplier must
24include fire department or police department reports and any
25other documentation that the Department may require. The mere
26making of the report does not assure the allowance of the loss

 

 

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1as a reduction in tax liability.
 
2    (35 ILCS 505/3g new)
3    Sec. 3g. Alternative fuel suppliers; payment of tax.
4Alternative fuel suppliers, when filing a return required by
5Section 3f, shall report to the Department the amount of tax
6imposed under this Act on all alternative fuels required to be
7reported under Section 3f. At the time of making a return, an
8alternative fuel supplier shall pay to the Department all taxes
9due, less, except as otherwise provided, a discount of 1.75%
10which is allowed to reimburse the alternative fuel supplier for
11the expenses incurred in keeping records, preparing and filing
12returns, remitting tax and supplying data to the Department on
13request. The 1.75% discount shall not be allowed for amounts
14remitted for alternative fuels used by the alternative fuel
15supplier for operating motor vehicles upon the public highways
16and recreational-type watercraft upon the waters of this State.
17The 1.75% discount shall only be applicable to the amount of
18tax payment which accompanies a return which is filed timely in
19accordance with Section 3f of the Law. However, no payment
20shall be made based upon alternative fuels that were sold and
21used for the purpose of blending with special fuel to produce
22dyed diesel fuel. An alternative fuel supplier shall not be
23liable for tax on the sale of alternative fuel, to the extent
24to which such sale or use of blended motor fuel may not, under
25the constitution and statutes of the United States, be made the

 

 

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1subject of taxation by this State. A person whose license to
2act as an alternative fuel supplier has been revoked shall, at
3the time of making a return, also pay to the Department an
4amount equal to the amount that would be due as a tax in the
5event of a sale thereof on all alternative fuels, which he is
6required by Section 3f to report to the Department in making a
7return, and which he had on hand on the date on which the
8license was revoked, and with respect to which no tax had been
9previously paid under this Act.
10    An alternative fuel supplier is not liable for tax on
11alternative fuels which he is otherwise required to remit to
12the Department, only as specified in the following items (1)
13through (5).
14        (1) When the sale of the alternative fuel is made with
15    delivery to a purchaser outside of this State.
16        (2) When the sale of the alternative fuel is made to
17    the Federal Government or its instrumentalities.
18        (3) When the sale of the alternative fuel is made to a
19    municipal corporation owning and operating a local
20    transportation system for public service in this State when
21    an official certificate of exemption is obtained in lieu of
22    the tax.
23        (4) When the sale of the alternative fuel is made to a
24    privately owned public utility owning and operating 2 axle
25    vehicles designed and used for transporting more than 7
26    passengers, which vehicles are used as common carriers in

 

 

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1    general transportation of passengers, are not devoted to
2    any specialized purpose and are operated entirely within
3    the territorial limits of a single municipality or of any
4    group of contiguous municipalities, or in a close radius
5    thereof, and the operations of which are subject to the
6    regulations of the Illinois Commerce Commission, when an
7    official certificate of exemption is obtained in lieu of
8    the tax.
9        (5) When a sale of alternative fuel is made to someone
10    other than a licensed distributor or a licensed supplier
11    for non-highway purposes and the fuel is dispensed from a
12    fuel dispensing facility that has withdrawal facilities
13    that are not readily accessible to and are not capable of
14    dispensing fuel into the fuel supply tank of a motor
15    vehicle. A specific notation is required on the invoice or
16    sales slip covering such sales, and any supporting
17    documentation that may be required by the Department must
18    be obtained by the retail blender. The alternative fuel
19    supplier shall obtain and keep the supporting
20    documentation in such form as the Department may require by
21    rule for all exempt sales. For purposes of this exemption,
22    a fuel dispensing facility is considered to have withdrawal
23    facilities that are "not readily accessible to and not
24    capable of dispensing fuel into the fuel supply tank of a
25    motor vehicle" only if the fuel is delivered from: (i) a
26    dispenser hose that is short enough so that it will not

 

 

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1    reach the fuel supply tank of a motor vehicle or (ii) a
2    dispenser that is enclosed by a fence or other physical
3    barrier so that a vehicle cannot pull alongside the
4    dispenser to permit fueling.
 
5    (35 ILCS 505/12)  (from Ch. 120, par. 428)
6    Sec. 12. It is the duty of every distributor, receiver, and
7supplier, and alternative fuel supplier under this Act to keep
8within this State or at some office outside this State for any
9period for which the Department is authorized to issue a Notice
10of Tax Liability to the distributor, receiver, or supplier, or
11alternative fuel supplier records and books showing all
12purchases, receipts, losses through any cause, sales,
13distribution and use of motor fuel, aviation fuels, home
14heating oils, and kerosene, and products used for the purpose
15of blending to produce motor fuel, which records and books
16shall, at all times during business hours of the day, be
17subject to inspection by the Department, or its duly authorized
18agents and employees. For purposes of this Section, "records"
19means all data maintained by the taxpayer including data on
20paper, microfilm, microfiche or any type of machine-sensible
21data compilation. The Department may, in its discretion,
22prescribe reasonable and uniform methods for keeping of records
23and books by licensees and that set forth requirements for the
24form and format of records that must be maintained in order to
25comply with any recordkeeping requirement under this Act.

 

 

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1(Source: P.A. 91-173, eff. 1-1-00.)
 
2    (35 ILCS 505/12a)  (from Ch. 120, par. 428a)
3    Sec. 12a. (a) Any duly authorized agent or employee of the
4Department shall have authority to enter in or upon the
5premises of any manufacturer, vendor, dealer, retailer,
6distributor, receiver, supplier, alternative fuel supplier, or
7user of motor fuel or special fuels during the regular business
8hours in order to examine books, records, invoices, storage
9tanks, and any other applicable equipment pertaining to motor
10fuel, alternative fuel, aviation fuels, home heating oils,
11kerosene, or special fuels, to determine whether or not the
12taxes imposed by this Act have been paid.
13    (b) Any duly authorized agent of the Department, upon
14presenting appropriate credentials and a written notice to the
15person who owns, operates, or controls the place to be
16inspected, shall have the authority to enter any place and to
17conduct inspections in accordance with subsections (b) through
18(g) of this Section.
19    (c) Inspections will be performed in a reasonable manner
20and at times that are reasonable under the circumstances,
21taking into consideration the normal business hours of the
22place to be entered.
23    (d) Inspections may be at any place at which taxable motor
24fuel is or may be produced or stored or at any inspection site
25where evidence of the following activities may be discovered:

 

 

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1        (1) Where any dyed diesel fuel is sold or held for sale
2    by any person for any use which the person knows or has
3    reason to know is not a nontaxable use of such fuel.
4        (2) Where any dyed diesel fuel is held for use or used
5    by any person for a use other than a nontaxable use and the
6    person knew, or had reason to know, that the fuel was dyed
7    according to Section 4d.
8        (3) Where any person willfully alters, or attempts to
9    alter, the strength or composition of any dye or marking
10    done pursuant to Section 4d of this Law.
11    The places may include, but are not limited to, the
12following:
13        (1) Any terminal.
14        (2) Any fuel storage facility that is not a terminal.
15        (3) Any retail fuel facility.
16        (4) Any designated inspection site.
17    (e) Duly authorized agents of the Department may physically
18inspect, examine, or otherwise search any tank, reservoir, or
19other container that can or may be used for the production,
20storage, or transportation of fuel, fuel dyes, or fuel markers.
21Inspection may also be made of any equipment used for, or in
22connection with, production, storage, or transportation of
23fuel, fuel dyes, or fuel markers. This includes any equipment
24used for the dyeing or marking of fuel. This also includes
25books and records, if any, that are maintained at the place of
26inspection and are kept to determine tax liability under this

 

 

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1Law.
2    (f) Duly authorized agents of the Department may detain any
3motor vehicle, train, barge, ship, or vessel for the purpose of
4inspecting its fuel tanks and storage tanks. Detainment will be
5either on the premises under inspection or at a designated
6inspection site. Detainment may continue for a reasonable
7period of time as is necessary to determine the amount and
8composition of the fuel.
9    (g) Duly authorized agents of the Department may take and
10remove samples of fuel in quantities as are reasonably
11necessary to determine the composition of the fuel.
12    (h) (1) Any person that refuses to allow an inspection
13    shall pay a $1,000 penalty for each refusal. This penalty
14    is in addition to any other penalty or tax that may be
15    imposed upon that person or any other person liable for tax
16    under this Law. All penalties received under this
17    subsection shall be deposited into the Tax Compliance and
18    Administration Fund. Any person aggrieved by any action of
19    the Department under this subsection (h)(1) may protest the
20    action by making a written request for a hearing within 60
21    days of the original action. If the hearing is not
22    requested in writing within 60 days, the original action is
23    final.
24        (2) In addition, any licensee who refuses to allow an
25    inspection shall be subject to license revocation as
26    provided by Section 16 of this Law.

 

 

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1(Source: P.A. 91-173, eff. 1-1-00.)
 
2    (35 ILCS 505/13)  (from Ch. 120, par. 429)
3    Sec. 13. Refund of tax paid. Any person other than a
4licensed distributor or supplier, or alternative fuel
5supplier, who loses motor fuel through any cause or uses motor
6fuel (upon which he has paid the amount required to be
7collected under Section 2 of this Act) for any purpose other
8than operating a motor vehicle upon the public highways or
9waters, shall be reimbursed and repaid the amount so paid.
10    Any person who purchases motor fuel in Illinois and uses
11that motor fuel in another state and that other state imposes a
12tax on the use of such motor fuel shall be reimbursed and
13repaid the amount of Illinois tax paid under Section 2 of this
14Act on the motor fuel used in such other state. Reimbursement
15and repayment shall be made by the Department upon receipt of
16adequate proof of taxes directly paid to another state and the
17amount of motor fuel used in that state.
18    Claims based in whole or in part on taxes paid to another
19state shall include (i) a certified copy of the tax return
20filed with such other state by the claimant; (ii) a copy of
21either the cancelled check paying the tax due on such return,
22or a receipt acknowledging payment of the tax due on such tax
23return; and (iii) such other information as the Department may
24reasonably require. This paragraph shall not apply to taxes
25paid on returns filed under Section 13a.3 of this Act.

 

 

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1    Any person who purchases motor fuel use tax decals as
2required by Section 13a.4 and pays an amount of fees for such
3decals that exceeds the amount due shall be reimbursed and
4repaid the amount of the decal fees that are deemed by the
5department to be in excess of the amount due.
6    Claims for such reimbursement must be made to the
7Department of Revenue, duly verified by the claimant (or by the
8claimant's legal representative if the claimant has died or
9become a person under legal disability), upon forms prescribed
10by the Department. The claim must state such facts relating to
11the purchase, importation, manufacture or production of the
12motor fuel by the claimant as the Department may deem
13necessary, and the time when, and the circumstances of its loss
14or the specific purpose for which it was used (as the case may
15be), together with such other information as the Department may
16reasonably require. No claim based upon idle time shall be
17allowed. Claims for reimbursement for overpayment of decal fees
18shall be made to the Department of Revenue, duly verified by
19the claimant (or by the claimant's legal representative if the
20claimant has died or become a person under legal disability),
21upon forms prescribed by the Department. The claim shall state
22facts relating to the overpayment of decal fees, together with
23such other information as the Department may reasonably
24require. Claims for reimbursement of overpayment of decal fees
25paid on or after January 1, 2011 must be filed not later than
26one year after the date on which the fees were paid by the

 

 

SB3224- 21 -LRB100 20669 HLH 36121 b

1claimant. If it is determined that the Department should
2reimburse a claimant for overpayment of decal fees, the
3Department shall first apply the amount of such refund against
4any tax or penalty or interest due by the claimant under
5Section 13a of this Act.
6    Claims for full reimbursement for taxes paid on or before
7December 31, 1999 must be filed not later than one year after
8the date on which the tax was paid by the claimant. If,
9however, a claim for such reimbursement otherwise meeting the
10requirements of this Section is filed more than one year but
11less than 2 years after that date, the claimant shall be
12reimbursed at the rate of 80% of the amount to which he would
13have been entitled if his claim had been timely filed.
14    Claims for full reimbursement for taxes paid on or after
15January 1, 2000 must be filed not later than 2 years after the
16date on which the tax was paid by the claimant.
17    The Department may make such investigation of the
18correctness of the facts stated in such claims as it deems
19necessary. When the Department has approved any such claim, it
20shall pay to the claimant (or to the claimant's legal
21representative, as such if the claimant has died or become a
22person under legal disability) the reimbursement provided in
23this Section, out of any moneys appropriated to it for that
24purpose.
25    Any distributor, or supplier, or alternative fuel supplier
26who has paid the tax imposed by Section 2 of this Act upon

 

 

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1motor fuel that is lost or used by such distributor, or
2supplier, or alternative fuel supplier for any purpose other
3than operating a motor vehicle upon the public highways or
4recreational-type watercraft upon the waters of this State may
5file a claim for credit or refund to recover the amount so
6paid. Such claims shall be filed on forms prescribed by the
7Department. Such claims shall be made to the Department, duly
8verified by the claimant (or by the claimant's legal
9representative if the claimant has died or become a person
10under legal disability), upon forms prescribed by the
11Department. The claim shall state such facts relating to the
12purchase, importation, manufacture or production of the motor
13fuel by the claimant as the Department may deem necessary and
14the time when the loss or nontaxable use occurred, and the
15circumstances of its loss or the specific purpose for which it
16was used (as the case may be), together with such other
17information as the Department may reasonably require. Claims
18must be filed not later than one year after the date on which
19the tax was paid by the claimant.
20    The Department may make such investigation of the
21correctness of the facts stated in such claims as it deems
22necessary. When the Department approves a claim, the Department
23shall issue a refund or credit memorandum as requested by the
24taxpayer, to the distributor, or supplier, or alternative fuel
25supplier who made the payment for which the refund or credit is
26being given or, if the distributor, or supplier , or

 

 

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1alternative fuel supplier has died or become incompetent, to
2such distributor's, or supplier's, or alternative fuel
3supplier legal representative, as such. The amount of such
4credit memorandum shall be credited against any tax due or to
5become due under this Act from the distributor, or supplier ,
6or alternative fuel supplier who made the payment for which
7credit has been given.
8    Any credit or refund that is allowed under this Section
9shall bear interest at the rate and in the manner specified in
10the Uniform Penalty and Interest Act.
11    In case the distributor or supplier requests and the
12Department determines that the claimant is entitled to a
13refund, such refund shall be made only from such appropriation
14as may be available for that purpose. If it appears unlikely
15that the amount appropriated would permit everyone having a
16claim allowed during the period covered by such appropriation
17to elect to receive a cash refund, the Department, by rule or
18regulation, shall provide for the payment of refunds in
19hardship cases and shall define what types of cases qualify as
20hardship cases.
21    In any case in which there has been an erroneous refund of
22tax or fees payable under this Section, a notice of tax
23liability may be issued at any time within 3 years from the
24making of that refund, or within 5 years from the making of
25that refund if it appears that any part of the refund was
26induced by fraud or the misrepresentation of material fact. The

 

 

SB3224- 24 -LRB100 20669 HLH 36121 b

1amount of any proposed assessment set forth by the Department
2shall be limited to the amount of the erroneous refund.
3    If no tax is due and no proceeding is pending to determine
4whether such distributor, or supplier, or alternative fuel
5supplier is indebted to the Department for tax, the credit
6memorandum so issued may be assigned and set over by the lawful
7holder thereof, subject to reasonable rules of the Department,
8to any other licensed distributor, or supplier, or alternative
9fuel supplier who is subject to this Act, and the amount
10thereof applied by the Department against any tax due or to
11become due under this Act from such assignee.
12    If the payment for which the distributor's, or supplier's,
13or alternative fuel supplier's claim is filed is held in the
14protest fund of the State Treasury during the pendency of the
15claim for credit proceedings pursuant to the order of the court
16in accordance with Section 2a of the State Officers and
17Employees Money Disposition Act and if it is determined by the
18Department or by the final order of a reviewing court under the
19Administrative Review Law that the claimant is entitled to all
20or a part of the credit claimed, the claimant, instead of
21receiving a credit memorandum from the Department, shall
22receive a cash refund from the protest fund as provided for in
23Section 2a of the State Officers and Employees Money
24Disposition Act.
25    If any person ceases to be licensed as a distributor, or
26supplier, or alternative fuel supplier while still holding an

 

 

SB3224- 25 -LRB100 20669 HLH 36121 b

1unused credit memorandum issued under this Act, such person
2may, at his election (instead of assigning the credit
3memorandum to a licensed distributor, or licensed supplier, or
4licensed alternative fuel supplier under this Act), surrender
5such unused credit memorandum to the Department and receive a
6refund of the amount to which such person is entitled.
7    For claims based upon taxes paid on or before December 31,
82000, a claim based upon the use of undyed diesel fuel shall
9not be allowed except (i) if allowed under the following
10paragraph or (ii) for undyed diesel fuel used by a commercial
11vehicle, as that term is defined in Section 1-111.8 of the
12Illinois Vehicle Code, for any purpose other than operating the
13commercial vehicle upon the public highways and unlicensed
14commercial vehicles operating on private property. Claims
15shall be limited to commercial vehicles that are operated for
16both highway purposes and any purposes other than operating
17such vehicles upon the public highways.
18    For claims based upon taxes paid on or after January 1,
192000, a claim based upon the use of undyed diesel fuel shall
20not be allowed except (i) if allowed under the preceding
21paragraph or (ii) for claims for the following:
22        (1) Undyed diesel fuel used (i) in a manufacturing
23    process, as defined in Section 2-45 of the Retailers'
24    Occupation Tax Act, wherein the undyed diesel fuel becomes
25    a component part of a product or by-product, other than
26    fuel or motor fuel, when the use of dyed diesel fuel in

 

 

SB3224- 26 -LRB100 20669 HLH 36121 b

1    that manufacturing process results in a product that is
2    unsuitable for its intended use or (ii) for testing
3    machinery and equipment in a manufacturing process, as
4    defined in Section 2-45 of the Retailers' Occupation Tax
5    Act, wherein the testing takes place on private property.
6        (2) Undyed diesel fuel used by a manufacturer on
7    private property in the research and development, as
8    defined in Section 1.29, of machinery or equipment intended
9    for manufacture.
10        (3) Undyed diesel fuel used by a single unit
11    self-propelled agricultural fertilizer implement, designed
12    for on and off road use, equipped with flotation tires and
13    specially adapted for the application of plant food
14    materials or agricultural chemicals.
15        (4) Undyed diesel fuel used by a commercial motor
16    vehicle for any purpose other than operating the commercial
17    motor vehicle upon the public highways. Claims shall be
18    limited to commercial motor vehicles that are operated for
19    both highway purposes and any purposes other than operating
20    such vehicles upon the public highways.
21        (5) Undyed diesel fuel used by a unit of local
22    government in its operation of an airport if the undyed
23    diesel fuel is used directly in airport operations on
24    airport property.
25        (6) Undyed diesel fuel used by refrigeration units that
26    are permanently mounted to a semitrailer, as defined in

 

 

SB3224- 27 -LRB100 20669 HLH 36121 b

1    Section 1.28 of this Law, wherein the refrigeration units
2    have a fuel supply system dedicated solely for the
3    operation of the refrigeration units.
4        (7) Undyed diesel fuel used by power take-off equipment
5    as defined in Section 1.27 of this Law.
6        (8) Beginning on the effective date of this amendatory
7    Act of the 94th General Assembly, undyed diesel fuel used
8    by tugs and spotter equipment to shift vehicles or parcels
9    on both private and airport property. Any claim under this
10    item (8) may be made only by a claimant that owns tugs and
11    spotter equipment and operates that equipment on both
12    private and airport property. The aggregate of all credits
13    or refunds resulting from claims filed under this item (8)
14    by a claimant in any calendar year may not exceed $100,000.
15    A claim may not be made under this item (8) by the same
16    claimant more often than once each quarter. For the
17    purposes of this item (8), "tug" means a vehicle designed
18    for use on airport property that shifts custom-designed
19    containers of parcels from loading docks to aircraft, and
20    "spotter equipment" means a vehicle designed for use on
21    both private and airport property that shifts trailers
22    containing parcels between staging areas and loading
23    docks.
24    Any person who has paid the tax imposed by Section 2 of
25this Law upon undyed diesel fuel that is unintentionally mixed
26with dyed diesel fuel and who owns or controls the mixture of

 

 

SB3224- 28 -LRB100 20669 HLH 36121 b

1undyed diesel fuel and dyed diesel fuel may file a claim for
2refund to recover the amount paid. The amount of undyed diesel
3fuel unintentionally mixed must equal 500 gallons or more. Any
4claim for refund of unintentionally mixed undyed diesel fuel
5and dyed diesel fuel shall be supported by documentation
6showing the date and location of the unintentional mixing, the
7number of gallons involved, the disposition of the mixed diesel
8fuel, and any other information that the Department may
9reasonably require. Any unintentional mixture of undyed diesel
10fuel and dyed diesel fuel shall be sold or used only for
11non-highway purposes.
12    The Department shall promulgate regulations establishing
13specific limits on the amount of undyed diesel fuel that may be
14claimed for refund.
15    For purposes of claims for refund, "loss" means the
16reduction of motor fuel resulting from fire, theft, spillage,
17spoilage, leakage, or any other provable cause, but does not
18include a reduction resulting from evaporation, or shrinkage
19due to temperature variations. In the case of losses due to
20fire or theft, the claimant must include fire department or
21police department reports and any other documentation that the
22Department may require.
23(Source: P.A. 96-1384, eff. 7-29-10.)
 
24    (35 ILCS 505/15)  (from Ch. 120, par. 431)
25    Sec. 15. 1. Any person who knowingly acts as a distributor

 

 

SB3224- 29 -LRB100 20669 HLH 36121 b

1of motor fuel, or supplier of special fuel, or receiver of
2fuel, or alternative fuel supplier without having a license so
3to do, or who knowingly fails or refuses to file a return with
4the Department as provided in Section 2b, Section 3f, Section
55, or Section 5a of this Act, or who knowingly fails or refuses
6to make payment to the Department as provided either in Section
72b, 3g, Section 6, Section 6a, or Section 7 of this Act, shall
8be guilty of a Class 3 felony. Each day any person knowingly
9acts as a distributor of motor fuel, supplier of special fuel,
10or receiver of fuel fuel, or alternative fuel supplier without
11having a license so to do or after such a license has been
12revoked, constitutes a separate offense.
13    2. Any person who acts as a motor carrier without having a
14valid motor fuel use tax license, issued by the Department or
15by a member jurisdiction under the provisions of the
16International Fuel Tax Agreement, or a valid single trip permit
17is guilty of a Class A misdemeanor for a first offense and is
18guilty of a Class 4 felony for each subsequent offense. Any
19person (i) who fails or refuses to make payment to the
20Department as provided in Section 13a.1 of this Act or in the
21International Fuel Tax Agreement referenced in Section 14a, or
22(ii) who fails or refuses to make the quarterly return as
23provided in Section 13a.3 is guilty of a Class 4 felony; and
24for each subsequent offense, such person is guilty of a Class 3
25felony.
26    3. In case such person acting as a distributor, receiver,

 

 

SB3224- 30 -LRB100 20669 HLH 36121 b

1supplier, alternative fuel supplier or motor carrier is a
2corporation, then the officer or officers, agent or agents,
3employee or employees, of such corporation responsible for any
4act of such corporation, or failure of such corporation to act,
5which acts or failure to act constitutes a violation of any of
6the provisions of this Act as enumerated in paragraphs 1 and 2
7of this Section, shall be punished by such fine or
8imprisonment, or by both such fine and imprisonment as provided
9in those paragraphs.
10    3.5. Any person who knowingly enters false information on
11any supporting documentation required to be kept by Section 6
12or 6a of this Act is guilty of a Class 3 felony.
13    3.7. Any person who knowingly attempts in any manner to
14evade or defeat any tax imposed by this Act or the payment of
15any tax imposed by this Act is guilty of a Class 2 felony.
16    4. Any person who refuses, upon demand, to submit for
17inspection, books and records, or who fails or refuses to keep
18books and records in violation of Section 12 of this Act, or
19any distributor, receiver, or supplier , or alternative fuel
20supplier who violates any reasonable rule or regulation adopted
21by the Department for the enforcement of this Act is guilty of
22a Class A misdemeanor. Any person who acts as a blender in
23violation of Section 3 of this Act or who having transported
24reportable motor fuel within Section 7b of this Act fails to
25make the return required by that Section, is guilty of a Class
264 felony.

 

 

SB3224- 31 -LRB100 20669 HLH 36121 b

1    5. Any person licensed under Section 13a.4, 13a.5, or the
2International Fuel Tax Agreement who: (a) fails or refuses to
3keep records and books, as provided in Section 13a.2 or as
4required by the terms of the International Fuel Tax Agreement,
5(b) refuses upon demand by the Department to submit for
6inspection and examination the records required by Section
713a.2 of this Act or by the terms of the International Fuel Tax
8Agreement, or (c) violates any reasonable rule or regulation
9adopted by the Department for the enforcement of this Act, is
10guilty of a Class A misdemeanor.
11    6. Any person who makes any false return or report to the
12Department as to any material fact required by Sections 2b, 3f,
135, 5a, 7, 13, or 13a.3 of this Act or by the International Fuel
14Tax Agreement is guilty of a Class 2 felony.
15    7. A prosecution for any violation of this Section may be
16commenced anytime within 5 years of the commission of that
17violation. A prosecution for tax evasion as set forth in
18paragraph 3.7 of this Section may be prosecuted any time within
195 years of the commission of the last act in furtherance of
20evasion. The running of the period of limitations under this
21Section shall be suspended while any proceeding or appeal from
22any proceeding relating to the quashing or enforcement of any
23grand jury or administrative subpoena issued in connection with
24an investigation of the violation of any provision of this Act
25is pending.
26    8. Any person who provides false documentation required by

 

 

SB3224- 32 -LRB100 20669 HLH 36121 b

1any Section of this Act is guilty of a Class 4 felony.
2    9. Any person filing a fraudulent application or order form
3under any provision of this Act is guilty of a Class A
4misdemeanor. For each subsequent offense, the person is guilty
5of a Class 4 felony.
6    10. Any person who acts as a motor carrier and who fails to
7carry a manifest as provided in Section 5.5 is guilty of a
8Class A misdemeanor. For each subsequent offense, the person is
9guilty of a Class 4 felony.
10    11. Any person who knowingly sells or attempts to sell dyed
11diesel fuel for highway use or for use by recreational-type
12watercraft on the waters of this State is guilty of a Class 4
13felony. For each subsequent offense, the person is guilty of a
14Class 2 felony.
15    12. Any person who knowingly possesses dyed diesel fuel for
16highway use or for use by recreational-type watercraft on the
17waters of this State is guilty of a Class A misdemeanor. For
18each subsequent offense, the person is guilty of a Class 4
19felony.
20    13. Any person who sells or transports dyed diesel fuel
21without the notice required by Section 4e shall pay the
22following penalty:
23    First occurrence....................................$ 500
24    Second and each occurrence thereafter..............$1,000
25    14. Any person who owns, operates, or controls any
26container, storage tank, or facility used to store or

 

 

SB3224- 33 -LRB100 20669 HLH 36121 b

1distribute dyed diesel fuel without the notice required by
2Section 4f shall pay the following penalty:
3    First occurrence....................................$ 500
4    Second and each occurrence thereafter..............$1,000
5    15. If a motor vehicle required to be registered for
6highway purposes is found to have dyed diesel fuel within the
7ordinary fuel tanks attached to the motor vehicle or if a
8recreational-type watercraft on the waters of this State is
9found to have dyed diesel fuel within the ordinary fuel tanks
10attached to the watercraft, the operator shall pay the
11following penalty:
12    First occurrence...................................$1,000
13    Second and each occurrence thereafter..............$5,000
14    16. Any licensed motor fuel distributor or licensed
15supplier, or licensed alternative fuel supplier who sells or
16attempts to sell dyed diesel fuel for highway use or for use by
17recreational-type watercraft on the waters of this State shall
18pay the following penalty:
19    First occurrence...................................$1,000
20    Second and each occurrence thereafter..............$5,000
21    17. Any person who knowingly sells or distributes dyed
22diesel fuel without the notice required by Section 4e is guilty
23of a petty offense. For each subsequent offense, the person is
24guilty of a Class A misdemeanor.
25    18. Any person who knowingly owns, operates, or controls
26any container, storage tank, or facility used to store or

 

 

SB3224- 34 -LRB100 20669 HLH 36121 b

1distribute dyed diesel fuel without the notice required by
2Section 4f is guilty of a petty offense. For each subsequent
3offense the person is guilty of a Class A misdemeanor.
4    For purposes of this Section, dyed diesel fuel means any
5dyed diesel fuel whether or not dyed pursuant to Section 4d of
6this Law.
7    Any person aggrieved by any action of the Department under
8item 13, 14, 15, or 16 of this Section may protest the action
9by making a written request for a hearing within 60 days of the
10original action. If the hearing is not requested in writing
11within 60 days, the original action is final.
12    All penalties received under items 13, 14, 15, and 16 of
13this Section shall be deposited into the Tax Compliance and
14Administration Fund.
15(Source: P.A. 96-1384, eff. 7-29-10.)
 
16    (35 ILCS 505/16)  (from Ch. 120, par. 432)
17    Sec. 16. The Department may, after 5 days' notice, revoke
18the distributor's, receiver's, or supplier's, or alternative
19fuel supplier's license or permit of any person (1) who does
20not operate as a distributor, receiver, alternative fuel
21supplier, or supplier (a) under Sections 1.2, 1.14, or 1.20,
221.30 or (2) who violates any provision of this Act or any rule
23or regulation promulgated by the Department under Section 14 of
24this Act, or (3) who refuses to allow any inspection or test
25authorized by this Law.

 

 

SB3224- 35 -LRB100 20669 HLH 36121 b

1    Any person whose returns for 2 or more consecutive months
2do not show sufficient taxable sales to indicate an active
3business as a distributor, receiver, or supplier, or
4alternative fuel supplier shall be deemed to not be operating
5as a distributor, receiver, or supplier, or alternative fuel
6supplier as defined in Sections 1.2, 1.14, or 1.20, 1.30.
7    The Department may, after 5 days notice, revoke any
8distributor's, receiver's, or supplier's license of a person
9who is registered as a reseller of motor fuel pursuant to
10Section 2a or 2c of the Retailers' Occupation Tax Act and who
11fails to collect such prepaid tax on invoiced gallons of motor
12fuel sold or who fails to deliver a statement of tax paid to
13the purchaser or to the Department as required by Sections 2d
14and 2e of the Retailers' Occupation Tax Act.
15    The Department may, on notice given by registered mail,
16cancel a Blender's Permit for any violation of any provisions
17of this Act or for noncompliance with any rule or regulation
18made by the Department under Section 14 of this Act.
19    The Department, upon complaint filed in the circuit court,
20may, by injunction, restrain any person who fails or refuses to
21comply with the provisions of this Act from acting as a blender
22or distributor of motor fuel, supplier of special fuel, or
23receiver of fuel, or alternative fuel supplier in this State.
24    The Department may revoke the motor fuel use tax license of
25a motor carrier registered under Section 13a.4, or that is
26required to be registered under the terms of the International

 

 

SB3224- 36 -LRB100 20669 HLH 36121 b

1Fuel Tax Agreement, that violates any provision of this Act or
2any rule promulgated by the Department under Sections 14 or 14a
3of this Act. Motor fuel use tax licenses that have been revoked
4are subject to a $100 reinstatement fee.
5    Licensees registered or required to be registered under
6Section 13a.4, or persons required to obtain single trip
7permits under Section 13a.5, may protest any action or audit
8finding made by the Department by making a written request for
9a hearing within 30 days after service of the notice of the
10original action or finding. If the hearing is not requested
11within 30 days in writing, the original finding or action is
12final. Once a hearing has been properly requested, the
13Department shall give at least 20 days written notice of the
14time and place of the hearing.
15(Source: P.A. 94-1074, eff. 12-26-06.)
 
16    Section 10. The Retailers' Occupation Tax Act is amended by
17changing Section 2d as follows:
 
18    (35 ILCS 120/2d)  (from Ch. 120, par. 441d)
19    Sec. 2d. Tax prepayment by motor fuel retailer.
20    (a) Any person engaged in the business of selling motor
21fuel at retail, as defined in the Motor Fuel Tax Law, and who
22is not a licensed distributor or supplier, as defined in the
23Motor Fuel Tax Law, shall prepay to his or her distributor,
24supplier, or other reseller of motor fuel a portion of the tax

 

 

SB3224- 37 -LRB100 20669 HLH 36121 b

1imposed by this Act if the distributor, supplier, or other
2reseller of motor fuel is registered under Section 2a or
3Section 2c of this Act. The prepayment requirement provided for
4in this Section does not apply to alternative fuel, as defined
5in Section 1.3a of the Motor Fuel Tax Law liquid propane gas.
6    (b) Beginning on July 1, 2000 and through December 31,
72000, the Retailers' Occupation Tax paid to the distributor,
8supplier, or other reseller shall be an amount equal to $0.01
9per gallon of the motor fuel, except gasohol as defined in
10Section 2-10 of this Act which shall be an amount equal to
11$0.01 per gallon, purchased from the distributor, supplier, or
12other reseller.
13    (c) Before July 1, 2000 and then beginning on January 1,
142001 and through June 30, 2003, the Retailers' Occupation Tax
15paid to the distributor, supplier, or other reseller shall be
16an amount equal to $0.04 per gallon of the motor fuel, except
17gasohol as defined in Section 2-10 of this Act which shall be
18an amount equal to $0.03 per gallon, purchased from the
19distributor, supplier, or other reseller.
20    (d) Beginning July 1, 2003 and through December 31, 2010,
21the Retailers' Occupation Tax paid to the distributor,
22supplier, or other reseller shall be an amount equal to $0.06
23per gallon of the motor fuel, except gasohol as defined in
24Section 2-10 of this Act which shall be an amount equal to
25$0.05 per gallon, purchased from the distributor, supplier, or
26other reseller.

 

 

SB3224- 38 -LRB100 20669 HLH 36121 b

1    (e) Beginning on January 1, 2011 and thereafter, the
2Retailers' Occupation Tax paid to the distributor, supplier, or
3other reseller shall be at the rate established by the
4Department under this subsection. The rate shall be established
5by the Department on January 1 and July 1 of each year using
6the average selling price, as defined in Section 1 of this Act,
7per gallon of motor fuel sold in the State during the previous
86 months and multiplying that amount by 6.25% to determine the
9cents per gallon rate. In the case of biodiesel blends, as
10defined in Section 3-42 of the Use Tax Act, with no less than
111% and no more than 10% biodiesel, and in the case of gasohol,
12as defined in Section 3-40 of the Use Tax Act, the rate shall
13be 80% of the rate established by the Department under this
14subsection for motor fuel. The Department shall provide persons
15subject to this Section notice of the rate established under
16this subsection at least 20 days prior to each January 1 and
17July 1. Publication of the established rate on the Department's
18internet website shall constitute sufficient notice under this
19Section. The Department may use data derived from independent
20surveys conducted or accumulated by third parties to determine
21the average selling price per gallon of motor fuel sold in the
22State.
23    (f) Any person engaged in the business of selling motor
24fuel at retail shall be entitled to a credit against tax due
25under this Act in an amount equal to the tax paid to the
26distributor, supplier, or other reseller.

 

 

SB3224- 39 -LRB100 20669 HLH 36121 b

1    (g) Every distributor, supplier, or other reseller
2registered as provided in Section 2a or Section 2c of this Act
3shall remit the prepaid tax on all motor fuel that is due from
4any person engaged in the business of selling at retail motor
5fuel with the returns filed under Section 2f or Section 3 of
6this Act, but the vendors discount provided in Section 3 shall
7not apply to the amount of prepaid tax that is remitted. Any
8distributor or supplier who fails to properly collect and remit
9the tax shall be liable for the tax. For purposes of this
10Section, the prepaid tax is due on invoiced gallons sold during
11a month by the 20th day of the following month.
12(Source: P.A. 96-1384, eff. 7-29-10.)