093_SB1783

 
                                     LRB093 10806 SJM 11242 b

 1        AN ACT concerning taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  State Finance Act is amended by adding
 5    Sections 5.595 and 6z-56 as follows:

 6        (30 ILCS 105/5.595)
 7        Sec. 5.595.  The Jet  Service  Establishment,  Expansion,
 8    and Retention Fund.

 9        (30 ILCS 105/6z-56 new)
10        Sec. 6z-56. The Jet Service Establishment, Expansion, and
11    Retention Fund.
12        (a)   The   Jet  Service  Establishment,  Expansion,  and
13    Retention Fund is hereby created as a  special  fund  in  the
14    State treasury.
15        (b)  In  order  to  maximize  opportunities  for economic
16    development in Illinois, money in the Fund shall be  used  by
17    the  Department  of Transportation, subject to appropriation,
18    to assist  in  establishing,  expanding,  and  retaining  jet
19    service at the State's 12 primary airports:
20             (1)    Belleville-St.   Clair   County   (MidAmerica
21        Airport).
22             (2) Bloomington-Normal.
23             (3) Champaign.
24             (4) Chicago (Midway and O'Hare).
25             (5) Decatur.
26             (6) Marion.
27             (7) Moline.
28             (8) Peoria.
29             (9) Quincy.
30             (10) Rockford.
 
                            -2-      LRB093 10806 SJM 11242 b
 1             (11) Springfield.

 2        Section 10.   The  Motor  Fuel  Tax  Law  is  amended  by
 3    changing Sections 2 and 8 and adding Section 8b as follows:

 4        (35 ILCS 505/2) (from Ch. 120, par. 418)
 5        Sec.  2.   A tax is imposed on the privilege of operating
 6    motor vehicles upon the public highways and recreational-type
 7    watercraft upon the waters of this State.
 8        (a)  Prior to August 1, 1989, the tax is imposed  at  the
 9    rate  of  13 cents per gallon on all motor fuel used in motor
10    vehicles operating on the public  highways  and  recreational
11    type  watercraft  operating  upon  the  waters of this State.
12    Beginning on August 1, 1989 and until January  1,  1990,  the
13    rate  of  the tax imposed in this paragraph shall be 16 cents
14    per gallon.  Beginning January  1,  1990,  the  rate  of  tax
15    imposed in this paragraph shall be 19 cents per gallon.
16        (b)  The tax on the privilege of operating motor vehicles
17    which  use  diesel  fuel  shall  be  the  rate  according  to
18    paragraph  (a)  plus  an  additional  2 1/2 cents per gallon.
19    "Diesel fuel" is defined as any  petroleum  product  intended
20    for  use  or  offered for sale as a fuel for engines in which
21    the fuel is injected into the combustion chamber and  ignited
22    by pressure without electric spark.
23        (c)  A  tax  is imposed upon the privilege of engaging in
24    the business of selling motor fuel as a retailer or  reseller
25    on  all  motor  fuel  used in motor vehicles operating on the
26    public highways and recreational  type  watercraft  operating
27    upon the waters of this State: (1) at the rate of 3 cents per
28    gallon  on  motor fuel owned or possessed by such retailer or
29    reseller at 12:01 a.m. on August 1, 1989; and (2) at the rate
30    of 3 cents per gallon on motor fuel  owned  or  possessed  by
31    such retailer or reseller at 12:01 A.M. on January 1, 1990.
32        Retailers   and   resellers   who  are  subject  to  this
 
                            -3-      LRB093 10806 SJM 11242 b
 1    additional tax shall be required to inventory such motor fuel
 2    and pay this additional tax in a  manner  prescribed  by  the
 3    Department of Revenue.
 4        The  tax  imposed  in  this  paragraph  (c)  shall  be in
 5    addition to all other taxes imposed by the State of  Illinois
 6    or any unit of local government in this State.
 7        (d)  Except  as provided in Section 2a, the collection of
 8    a tax based on gallonage of gasoline used for the  propulsion
 9    of  any  aircraft  is prohibited on and after October 1, 1979
10    and through June 30, 2003. Beginning on July 1, 2003,  a  tax
11    based  on  gallonage  of  fuel  used  for  the  propulsion of
12    aircraft that is sold  at  O'Hare  International  Airport  is
13    imposed at the rate of 1 cent per gallon.
14        (e)  The  collection  of a tax, based on gallonage of all
15    products commonly  or  commercially  known  or  sold  as  1-K
16    kerosene,  regardless  of  its  classification  or  uses,  is
17    prohibited  (i)  on and after July 1, 1992 until December 31,
18    1999, except when the 1-K kerosene is either:  (1)  delivered
19    into bulk storage facilities of a bulk user, or (2) delivered
20    directly  into  the  fuel  supply tanks of motor vehicles and
21    (ii) on and after January 1, 2000.  Beginning on  January  1,
22    2000,  the  collection  of  a  tax, based on gallonage of all
23    products commonly  or  commercially  known  or  sold  as  1-K
24    kerosene,  regardless  of  its  classification  or  uses,  is
25    prohibited except when the 1-K kerosene is delivered directly
26    into  a  storage  tank that is located at a facility that has
27    withdrawal facilities that are readily accessible to and  are
28    capable of dispensing 1-K kerosene into the fuel supply tanks
29    of motor vehicles.
30        Any  person  who  sells  or  uses 1-K kerosene for use in
31    motor vehicles upon which the tax imposed by this Law has not
32    been paid shall be liable for any tax due on the sales or use
33    of 1-K kerosene.
34    (Source: P.A. 91-173, eff. 1-1-00.)
 
                            -4-      LRB093 10806 SJM 11242 b
 1        (35 ILCS 505/8) (from Ch. 120, par. 424)
 2        Sec. 8.  Except as provided in Sections  Section  8a  and
 3    8b,  subdivision  (h)(1)  of  Section 12a, Section 13a.6, and
 4    items 13, 14, 15, and 16 of Section 15, all money received by
 5    the Department under this Act, including payments made to the
 6    Department  by  member  jurisdictions  participating  in  the
 7    International Fuel Tax Agreement, shall  be  deposited  in  a
 8    special fund in the State treasury, to be known as the "Motor
 9    Fuel Tax Fund", and shall be used as follows:
10        (a)  2  1/2  cents  per  gallon  of  the tax collected on
11    special fuel under paragraph (b) of Section 2 and Section 13a
12    of this Act shall be transferred to  the  State  Construction
13    Account Fund in the State Treasury;
14        (b)  $420,000  shall  be  transferred  each  month to the
15    State Boating Act Fund  to  be  used  by  the  Department  of
16    Natural  Resources for the purposes specified in Article X of
17    the Boat Registration and Safety Act;
18        (c)  $2,250,000 shall be transferred each  month  to  the
19    Grade  Crossing  Protection  Fund  to be used as follows: not
20    less than $6,000,000 each fiscal year shall be used  for  the
21    construction   or   reconstruction   of  rail  highway  grade
22    separation structures; beginning with fiscal  year  1997  and
23    ending in fiscal year 2000, $1,500,000, beginning with fiscal
24    year  2001  and  ending  in fiscal year 2003, $2,250,000, and
25    $750,000 in fiscal year 2004 and each fiscal year  thereafter
26    shall  be  transferred  to the Transportation Regulatory Fund
27    and shall be accounted  for  as  part  of  the  rail  carrier
28    portion  of  such  funds and shall be used to pay the cost of
29    administration of the Illinois Commerce Commission's railroad
30    safety program in connection with its duties under subsection
31    (3) of Section 18c-7401 of the Illinois  Vehicle  Code,  with
32    the  remainder to be used by the Department of Transportation
33    upon order of the Illinois Commerce Commission, to  pay  that
34    part  of the cost apportioned by such Commission to the State
 
                            -5-      LRB093 10806 SJM 11242 b
 1    to cover the interest of the public in the use  of  highways,
 2    roads,  streets, or pedestrian walkways in the county highway
 3    system, township  and  district  road  system,  or  municipal
 4    street system as defined in the Illinois Highway Code, as the
 5    same  may  from  time  to  time be amended, for separation of
 6    grades, for installation, construction or  reconstruction  of
 7    crossing protection or reconstruction, alteration, relocation
 8    including construction or improvement of any existing highway
 9    necessary  for access to property or improvement of any grade
10    crossing including the necessary highway  approaches  thereto
11    of any railroad across the highway or public road, or for the
12    installation, construction, reconstruction, or maintenance of
13    a  pedestrian  walkway over or under a railroad right-of-way,
14    as provided for in and in accordance with Section 18c-7401 of
15    the Illinois Vehicle Code. The  Commission  shall  not  order
16    more  than  $2,000,000  per year in Grade Crossing Protection
17    Fund moneys for pedestrian walkways. In entering  orders  for
18    projects   for   which   payments  from  the  Grade  Crossing
19    Protection Fund will be made, the  Commission  shall  account
20    for  expenditures  authorized  by the orders on a cash rather
21    than an accrual basis.  For purposes of this  requirement  an
22    "accrual basis" assumes that the total cost of the project is
23    expended  in  the  fiscal year in which the order is entered,
24    while a "cash basis" allocates the cost of the project  among
25    fiscal  years as expenditures are actually made.  To meet the
26    requirements  of  this  subsection,  the  Illinois   Commerce
27    Commission  shall  develop annual and 5-year project plans of
28    rail crossing capital improvements that will be paid for with
29    moneys from the Grade Crossing Protection Fund.   The  annual
30    project  plan  shall  identify  projects  for  the succeeding
31    fiscal year  and  the  5-year  project  plan  shall  identify
32    projects  for  the  5  directly succeeding fiscal years.  The
33    Commission shall submit the annual and 5-year  project  plans
34    for  this  Fund to the Governor, the President of the Senate,
 
                            -6-      LRB093 10806 SJM 11242 b
 1    the Senate Minority Leader,  the  Speaker  of  the  House  of
 2    Representatives,  and  the  Minority  Leader  of the House of
 3    Representatives on the first Wednesday in April of each year;
 4        (d)  of the amount remaining after  allocations  provided
 5    for  in  subsections  (a),  (b)  and (c), a sufficient amount
 6    shall be reserved to pay all of the following:
 7             (1)  the costs  of  the  Department  of  Revenue  in
 8        administering this Act;
 9             (2)  the  costs  of the Department of Transportation
10        in performing its duties imposed by the Illinois  Highway
11        Code  for  supervising  the  use  of motor fuel tax funds
12        apportioned  to   municipalities,   counties   and   road
13        districts;
14             (3)  refunds  provided for in Section 13 of this Act
15        and  under  the  terms  of  the  International  Fuel  Tax
16        Agreement referenced in Section 14a;
17             (4)  from October 1, 1985 until June 30,  1994,  the
18        administration  of  the Vehicle Emissions Inspection Law,
19        which  amount  shall  be   certified   monthly   by   the
20        Environmental  Protection Agency to the State Comptroller
21        and  shall  promptly  be   transferred   by   the   State
22        Comptroller and Treasurer from the Motor Fuel Tax Fund to
23        the  Vehicle  Inspection Fund, and for the period July 1,
24        1994 through June 30, 2000,  one-twelfth  of  $25,000,000
25        each  month, and for the period July 1, 2000 through June
26        30, 2006, one-twelfth of $30,000,000 each month, for  the
27        administration of the Vehicle Emissions Inspection Law of
28        1995,  to  be  transferred  by  the State Comptroller and
29        Treasurer from the Motor Fuel Tax Fund into  the  Vehicle
30        Inspection Fund;
31             (5)  amounts  ordered  paid  by the Court of Claims;
32        and
33             (6)  payment of motor fuel use taxes due  to  member
34        jurisdictions  under  the terms of the International Fuel
 
                            -7-      LRB093 10806 SJM 11242 b
 1        Tax  Agreement.   The  Department  shall  certify   these
 2        amounts to the Comptroller by the 15th day of each month;
 3        the  Comptroller  shall cause orders to be drawn for such
 4        amounts, and the Treasurer shall administer those amounts
 5        on or before the last day of each month;
 6        (e)  after allocations for  the  purposes  set  forth  in
 7    subsections (a), (b), (c) and (d), the remaining amount shall
 8    be apportioned as follows:
 9             (1)  Until  January  1,  2000,  58.4%, and beginning
10        January 1, 2000, 45.6% shall be deposited as follows:
11                  (A)  37% into the  State  Construction  Account
12             Fund, and
13                  (B)  63%  into  the  Road  Fund,  $1,250,000 of
14             which  shall  be  reserved  each   month   for   the
15             Department   of   Transportation   to   be  used  in
16             accordance with the  provisions  of  Sections  6-901
17             through 6-906 of the Illinois Highway Code;
18             (2)  Until  January  1,  2000,  41.6%, and beginning
19        January 1,  2000,  54.4%  shall  be  transferred  to  the
20        Department   of   Transportation  to  be  distributed  as
21        follows:
22                  (A)  49.10% to the municipalities of the State,
23                  (B)  16.74% to the counties of the State having
24             1,000,000 or more inhabitants,
25                  (C)  18.27% to the counties of the State having
26             less than 1,000,000 inhabitants,
27                  (D)  15.89% to the road districts of the State.
28        As soon as may be after the first day of each  month  the
29    Department of Transportation shall allot to each municipality
30    its   share   of   the  amount  apportioned  to  the  several
31    municipalities which shall be in proportion to the population
32    of such municipalities as determined by  the  last  preceding
33    municipal  census  if  conducted by the Federal Government or
34    Federal census. If territory is annexed to  any  municipality
 
                            -8-      LRB093 10806 SJM 11242 b
 1    subsequent  to  the  time  of  the  last preceding census the
 2    corporate authorities of such municipality may cause a census
 3    to be taken of such annexed territory and the  population  so
 4    ascertained   for  such  territory  shall  be  added  to  the
 5    population of the municipality  as  determined  by  the  last
 6    preceding census for the purpose of determining the allotment
 7    for that municipality.  If the population of any municipality
 8    was  not  determined by the last Federal census preceding any
 9    apportionment, the apportionment to such  municipality  shall
10    be  in accordance with any census taken by such municipality.
11    Any municipal census used in  accordance  with  this  Section
12    shall be certified to the Department of Transportation by the
13    clerk of such municipality, and the accuracy thereof shall be
14    subject  to  approval  of  the Department which may make such
15    corrections as it ascertains to be necessary.
16        As soon as may be after the first day of each  month  the
17    Department  of  Transportation shall allot to each county its
18    share of the amount apportioned to the  several  counties  of
19    the  State  as herein provided. Each allotment to the several
20    counties having less than 1,000,000 inhabitants shall  be  in
21    proportion  to  the  amount  of  motor  vehicle  license fees
22    received from the residents of such  counties,  respectively,
23    during  the  preceding  calendar year. The Secretary of State
24    shall, on or before April 15 of each year,  transmit  to  the
25    Department  of  Transportation  a  full  and  complete report
26    showing the amount of motor  vehicle  license  fees  received
27    from  the  residents of each county, respectively, during the
28    preceding calendar year.  The  Department  of  Transportation
29    shall,  each  month, use for allotment purposes the last such
30    report received from the Secretary of State.
31        As soon as may be after the first day of each month,  the
32    Department  of  Transportation  shall  allot  to  the several
33    counties their share of the amount apportioned for the use of
34    road districts.  The allotment shall be apportioned among the
 
                            -9-      LRB093 10806 SJM 11242 b
 1    several counties in the State in  the  proportion  which  the
 2    total mileage of township or district roads in the respective
 3    counties  bears  to  the  total  mileage  of all township and
 4    district roads in the State. Funds allotted to the respective
 5    counties for the use  of  road  districts  therein  shall  be
 6    allocated  to the several road districts in the county in the
 7    proportion which  the  total  mileage  of  such  township  or
 8    district  roads in the respective road districts bears to the
 9    total mileage of all such township or district roads  in  the
10    county.   After  July  1  of any year, no allocation shall be
11    made for any road district unless it levied a  tax  for  road
12    and  bridge  purposes  in  an  amount  which will require the
13    extension of such tax against the  taxable  property  in  any
14    such  road district at a rate of not less than either .08% of
15    the value thereof, based upon the  assessment  for  the  year
16    immediately  prior  to  the year in which such tax was levied
17    and as equalized by the Department of Revenue or,  in  DuPage
18    County,  an  amount equal to or greater than $12,000 per mile
19    of  road  under  the  jurisdiction  of  the  road   district,
20    whichever is less.  If any road district has levied a special
21    tax  for  road purposes pursuant to Sections 6-601, 6-602 and
22    6-603 of the Illinois Highway Code, and such tax  was  levied
23    in  an  amount which would require extension at a rate of not
24    less than .08% of the value of the taxable property  thereof,
25    as equalized or assessed by the Department of Revenue, or, in
26    DuPage County, an amount equal to or greater than $12,000 per
27    mile  of  road  under  the jurisdiction of the road district,
28    whichever is less, such levy  shall,  however,  be  deemed  a
29    proper  compliance  with  this Section and shall qualify such
30    road district for an allotment  under  this  Section.   If  a
31    township  has  transferred  to the road and bridge fund money
32    which, when added to the amount of any tax levy of  the  road
33    district  would  be  the  equivalent  of a tax levy requiring
34    extension at a rate of at least .08%,  or, in DuPage  County,
 
                            -10-     LRB093 10806 SJM 11242 b
 1    an  amount  equal to or greater than $12,000 per mile of road
 2    under the jurisdiction of the  road  district,  whichever  is
 3    less,  such  transfer, together with any such tax levy, shall
 4    be deemed a proper compliance with  this  Section  and  shall
 5    qualify  the  road  district  for  an  allotment  under  this
 6    Section.
 7        In  counties in which a property tax extension limitation
 8    is imposed under the Property Tax Extension  Limitation  Law,
 9    road  districts  may retain their entitlement to a motor fuel
10    tax allotment if, at the  time  the  property  tax  extension
11    limitation  was imposed, the road district was levying a road
12    and bridge tax at a rate sufficient to entitle it to a  motor
13    fuel   tax  allotment  and  continues  to  levy  the  maximum
14    allowable amount after the imposition  of  the  property  tax
15    extension   limitation.    Any   road  district  may  in  all
16    circumstances retain its entitlement  to  a  motor  fuel  tax
17    allotment  if  it  levied  a road and bridge tax in an amount
18    that will require  the  extension  of  the  tax  against  the
19    taxable  property  in the road district at a rate of not less
20    than 0.08% of the assessed value of the property, based  upon
21    the assessment for the year immediately preceding the year in
22    which  the  tax was levied and as equalized by the Department
23    of Revenue or, in  DuPage  County,  an  amount  equal  to  or
24    greater  than $12,000 per mile of road under the jurisdiction
25    of the road district, whichever is less.
26        As used in this Section the term  "road  district"  means
27    any  road  district,  including  a county unit road district,
28    provided for by the  Illinois  Highway  Code;  and  the  term
29    "township  or  district  road" means any road in the township
30    and district road system as defined in the  Illinois  Highway
31    Code.  For the purposes of this Section, "road district" also
32    includes   park  districts,  forest  preserve  districts  and
33    conservation  districts  organized  under  Illinois  law  and
34    "township or district road" also includes such roads  as  are
 
                            -11-     LRB093 10806 SJM 11242 b
 1    maintained  by  park districts, forest preserve districts and
 2    conservation districts.   The  Department  of  Transportation
 3    shall  determine  the  mileage  of  all township and district
 4    roads for the purposes of making allotments  and  allocations
 5    of motor fuel tax funds for use in road districts.
 6        Payment  of  motor  fuel tax moneys to municipalities and
 7    counties  shall  be  made  as  soon  as  possible  after  the
 8    allotment is made.  The  treasurer  of  the  municipality  or
 9    county may invest these funds until their use is required and
10    the  interest earned by these investments shall be limited to
11    the same uses as the principal funds.
12    (Source:  P.A.  91-37,  eff.  7-1-99;  91-59,  eff.  6-30-99;
13    91-173, eff.  1-1-00;  91-357,  eff.  7-29-99;  91-704,  eff.
14    7-1-00; 91-725, eff. 6-2-00; 91-794, eff. 6-9-00; 92-16, eff.
15    6-28-01; 92-30, eff. 7-1-01.)

16        (35 ILCS 505/8b new)
17        Sec. 8b. Deposit of receipts from tax on fuel used in the
18    propulsion  of aircraft. All money received by the Department
19    under subsection (d) of  Section  2  of  this  Act  shall  be
20    deposited  into the Jet Service Establishment, Expansion, and
21    Retention Fund.

22        Section 99.  Effective date.  This Act takes effect  upon
23    becoming law.