HB4995 95TH GENERAL ASSEMBLY

LRB095 15050 BDD 41008 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4995

Introduced , by Rep. Paul D. Froehlich

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.708 new
415 ILCS 5/60 heading new
415 ILCS 5/60.5 new
415 ILCS 5/60.10 new
415 ILCS 5/60.15 new
415 ILCS 5/60.20 new
415 ILCS 5/60.25 new
415 ILCS 5/60.30 new
415 ILCS 5/60.35 new
415 ILCS 5/60.40 new
415 ILCS 5/60.45 new
415 ILCS 5/60.50 new

Amends the Environmental Protection Act and the State Finance Act. Requires the Environmental Protection Agency to establish and maintain a program to collect fees from and award rebates to purchasers of new motor vehicles based upon the fuel-economy ratings of those motor vehicles. Requires the Agency to set forth a list of (i) each motor vehicle upon which the Agency will impose a fee for the purchase of that vehicle, (ii) each motor vehicle upon which the Agency will award a rebate for the purchase of that vehicle, and (iii) the amount of each fee and rebate. Sets forth provisions for the fee collections and rebate awards. Provides for fee refunds for vehicles used primarily for agricultural or construction purposes. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning motor vehicles.

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

Section 5. The State Finance Act is amended by adding Section 5.708 as follows:

(30 ILCS 105/5.708 new)

Sec. 5.708. The Fuel Economy Fee and Rebate Fund.

Section 10. The Environmental Protection Act is amended by adding Title XVIII as follows:

(415 ILCS 5/60 heading new)

Title XVIII: FUEL ECONOMY FEE AND REBATE PROGRAM

(415 ILCS 5/60.5 new)

Sec. 60.5. Definitions. As used in this Title:

"Motor vehicle" means a motor vehicle of the First Division, as defined in Section 1-217 of the Illinois Vehicle Code, but does not include a motorcycle, motor-driven cycle, or pedalcycle.

"New motor vehicle" means a motor vehicle (i) that is manufactured in or after the 2008 calendar year and (ii) that has not been previously sold to any person except a franchised distributor or a franchised new-vehicle dealer.

"Retailer" has the meaning set forth in Section 2 of the Use Tax Act.

(415 ILCS 5/60.10 new)

Sec. 60.10. Fuel Economy Fee and Rebate Program.

(a) The Agency shall create and maintain a program to collect fees from and award rebates to purchasers of new motor vehicles based upon the fuel-economy ratings of those motor vehicles.

(b) Under the program, the Agency must set forth a list of (i) each motor vehicle upon which the Agency will impose a fee for the purchase of that vehicle, (ii) each motor vehicle upon which the Agency will award a rebate for the purchase of that vehicle, and (iii) the amount of each fee and rebate. The Agency must base the classifications under this subsection upon the fuel-economy ratings for the vehicles, as determined by the Department of Energy and the U.S. Environmental Protection Agency. The Agency must publish each list under this subsection on its Internet web site and make copies available to the public upon request.

(c) Beginning July 1, 2008, each person who sells a new motor vehicle at retail in this State for which a fee is imposed by the Agency under subsection (b) shall collect that fee from the retail customer. The seller must pay the fee to the Department of Revenue for deposit into the Fuel Economy Fee and Rebate Fund.

(d) Beginning July 1, 2008, each person who purchases a new motor vehicle at retail in this State for which a rebate is awarded by the Agency under subsection (b) may apply to the Agency for the rebate. The rebate application must be in the form and manner required by the Agency.

(415 ILCS 5/60.15 new)

Sec. 60.15. Fuel Economy Fee and Rebate Fund.

(a) The Fuel Economy Fee and Rebate Fund is created as a special fund in the State treasury. From appropriations to the Agency from the Fund, the Agency shall award rebates under subsection (d) of Section 60.10 for the purchase of new motor vehicles with high fuel-economy ratings and shall make refunds under Section 60.20.

(b) All fees collected under this Title and all penalties or punitive damages for violations of this Title must be deposited into the Fund. Additionally, any other moneys received for the purposes of this Title, including, without limitation, appropriations, gifts, grants, and awards from any public or private entity, must be deposited into the Fund.

(c) The Agency may retain an amount of up to 2% of the moneys in the Fund in each State fiscal year for the costs of the Agency and of the Department of Revenue in administering the program under this Title.

(d) Any interest earnings that are attributable to moneys in the Fund must be deposited into the Fund.

(415 ILCS 5/60.20 new)

Sec. 60.20. Fee refunds. If any person purchases a new motor vehicle to be used primarily for agricultural or construction purposes, then that purchaser may apply to the Agency for a refund of the fee paid under subsection (c) of Section 60.10. The refund application must be in the form and manner required by the Agency. The Agency shall, by rule, set forth the standards for determining whether a vehicle is used primarily for agricultural or construction purposes. Refunds under this Section must be paid from the Fuel Economy Fee and Rebate Fund.

(415 ILCS 5/60.25 new)

Sec. 60.25. Returns by retailers.

(a) Each retailer of new motor vehicles who maintains a place of business in this State must make a return to the Department of Revenue on a quarter-annual basis, with the return for January, February, and March of a given year being due by April 30 of that year; with the return for April, May, and June of a given year being due by July 31 of that year; with the return for July, August, and September of a given year being due by October 31 of that year; and with the return for October, November, and December of a given year being due by January 31 of the following year. Each return made to the Department of Revenue must state the following:

(1) the name of the retailer;

(2) the address of the retailer's principal place of business and the address of the principal place of business (if that is a different address) from which the retailer engages in the business of making retail sales of motor vehicles;

(3) the total number of new motor vehicles sold at retail in the preceding calendar quarter for which a fee is imposed under subsection (c) of Section 60.10;

(4) the total amount of fees collected in the preceding calendar quarter; and

(5) any other information that the Department of Revenue reasonably requires.

(b) Notwithstanding any other provision of law concerning the time within which a retailer may file his or her return, in the case of any retailer who ceases to engage in the retail sale of new motor vehicles, the retailer must file a final return under this Title with the Department of Revenue not more than one calendar month after discontinuing that business.

(415 ILCS 5/60.30 new)

Sec. 60.30. Application of Retailers' Occupation Tax provisions. All the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 13 of the Retailers' Occupation Tax Act that are not inconsistent with this Title apply, as far as practicable, to the fee imposed by subsection (c) of Section 60.10 of this Act to the same extent as if those provisions were included in this Title. References in the incorporated Sections of the Retailers' Occupation Tax Act to retailers, to sellers, or to persons engaged in the business of selling tangible personal property mean retailers of new motor vehicles.

(415 ILCS 5/60.35 new)

Sec. 60.35. Hearing; notice. The Department of Revenue may adopt and enforce any reasonable rule to administer and enforce the fee imposed by subsection (c) of Section 60.10 of this Act.

Whenever the Department of Revenue is required to provide notice to a retailer under this Title, the notice may be personally served or given by United States certified or registered mail, addressed to the retailer or taxpayer concerned at his or her last known address, and proof of this mailing is sufficient for the purposes of this Title. In the case of a notice of hearing, the Department must mail the notice at least 7 days prior to the date fixed for the hearing.

All hearings provided by the Department of Revenue under this Title with respect to or concerning a taxpayer having his or her principal place of business in this State other than in Cook County shall be held at the Department's office nearest to the location of the taxpayer's principal place of business. If the taxpayer has his or her principal place of business in Cook County, then the hearing must be held in Cook County. If the taxpayer does not have his or her principal place of business in this State, then the hearing must be held in Sangamon County.

If any proceeding under this Title has been begun by the Department of Revenue or by a person subject thereto and that person subsequently dies or becomes a person under legal disability before the proceeding has been concluded, then the legal representative of the deceased person or person under legal disability shall notify the Department of Revenue of the death or legal disability. The Department must substitute the legal representative, as such, in place of and for the person. Within 20 days after notice to the legal representative of the time fixed for that purpose, the proceeding may proceed in all respects and with like effect as though the person had not died or become a person under legal disability.

(415 ILCS 5/60.40 new)

Sec. 60.40. Administrative procedures. The Illinois Administrative Procedure Act is expressly adopted and applies to all administrative rules and procedures of the Department of Revenue under this Title, except that: (1) paragraph (b) of Section 4 of the Illinois Administrative Procedure Act does not apply to final orders, decisions, and opinions of the Department of Revenue; (2) subparagraph (a)(2) of Section 4 of the Illinois Administrative Procedure Act does not apply to forms established by the Department of Revenue for use under this Title; and (3) the provisions of Section 13 of the Illinois Administrative Procedure Act regarding proposals for decision are excluded and not applicable to the Department of Revenue under this Title.

(415 ILCS 5/60.45 new)

Sec. 60.45. Review under Administrative Review Law.

(a) The circuit court of any county in which a hearing is held has the power to review all final administrative decisions of the Department of Revenue in administering the fee imposed under subsection (c) of Section 60.10 of this Act. If, however, the administrative proceeding that is to be reviewed judicially is a claim for refund proceeding commenced under this Act and Section 2a of the State Officers and Employees Money Disposition Act, the circuit court having jurisdiction over the action for judicial review under this Section and under the Administrative Review Law is the same court that entered the temporary restraining order or preliminary injunction that is provided for in that Section 2a, and that enables the claim proceeding to be processed and disposed of as a claim for refund proceeding other than as a claim for credit proceeding.

(b) The provisions of the Administrative Review Law apply to and govern all proceedings for the judicial review of final administrative decisions of the Department of Revenue under this Title. The term "administrative decision" is defined as in Section 3-101 of the Code of Civil Procedure.

(c) Service of summons issued in any action to review a final administrative decision upon the Director or Assistant Director of Revenue shall be service upon the Department of Revenue. The Department of Revenue shall certify the record of its proceedings if the taxpayer pays to it the sum of $0.75 per page of testimony taken before the Department of Revenue and $0.25 per page of all other matters contained in the record, except that these charges may be waived if the Department of Revenue is satisfied that the aggrieved party cannot afford to pay these charges.

(415 ILCS 5/60.50 new)

Sec. 60.50. Penalty. Any retailer who fails to make a return or who makes a fraudulent return, or who willfully violates any rule or regulation of the Department of Revenue for the administration and enforcement of the fee imposed by subsection (c) of Section 60.10 of this Act, is guilty of a Class 4 felony.

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