(35 ILCS 505/2)
(from Ch. 120, par. 418)
A tax is imposed on the privilege of operating motor vehicles
upon the public highways and recreational-type watercraft upon the waters
of this State.
(a) Prior to August 1, 1989, the tax is imposed at the rate of 13 cents
per gallon on all motor fuel used in motor vehicles operating on the public
highways and recreational type watercraft operating upon the waters of this
State. Beginning on August 1, 1989 and until January 1, 1990, the rate of the
tax imposed in this paragraph shall be 16 cents per gallon. Beginning January
1, 1990, the rate of tax imposed in this paragraph, including the tax on compressed natural gas, shall be 19 cents per
(b) The tax on the privilege of operating motor vehicles which use diesel
fuel, liquefied natural gas, or propane shall be the rate according to paragraph (a) plus an additional 2 1/2
cents per gallon. "Diesel fuel" is defined as any product
for use or offered for sale as a fuel for engines in which the fuel is injected
into the combustion chamber and ignited by pressure without electric spark.
(c) A tax is imposed upon the privilege of engaging in the business of
selling motor fuel as a retailer or reseller on all motor fuel used in motor
vehicles operating on the public highways and recreational type watercraft
operating upon the waters of this State: (1) at the rate of 3 cents per gallon
on motor fuel owned or possessed by such retailer or reseller at 12:01 a.m. on
August 1, 1989; and (2) at the rate of 3 cents per gallon on motor fuel owned
or possessed by such retailer or reseller at 12:01 A.M. on January 1, 1990.
Retailers and resellers who are subject to this additional tax shall be
required to inventory such motor fuel and pay this additional tax in a
manner prescribed by the Department of Revenue.
The tax imposed in this paragraph (c) shall be in addition to all other
taxes imposed by the State of Illinois or any unit of local government in this
(d) Except as provided in Section 2a, the collection of a tax based on
gallonage of gasoline used for the propulsion of any aircraft is prohibited
on and after October 1, 1979.
(e) The collection of a tax, based on gallonage of all products commonly or
commercially known or sold as 1-K kerosene, regardless of its classification
or uses, is prohibited (i) on and after July 1, 1992 until December 31, 1999,
except when the 1-K kerosene is either: (1) delivered into bulk storage
facilities of a bulk user, or (2) delivered directly into the fuel supply tanks
of motor vehicles and (ii) on and after January 1, 2000. Beginning on January
1, 2000, the collection of a tax, based on gallonage of all products commonly
or commercially known or sold as 1-K kerosene, regardless of its classification
or uses, is prohibited except when the 1-K kerosene is delivered directly into
a storage tank that is located at a facility that has withdrawal facilities
that are readily accessible to and are capable of dispensing 1-K kerosene into
the fuel supply tanks of motor vehicles. For purposes of this subsection (e), a facility is considered to have withdrawal facilities that are not "readily accessible to and capable of dispensing 1-K kerosene into the fuel supply tanks of motor vehicles" only if the 1-K kerosene is delivered from: (i) a dispenser hose that is short enough so that it will not reach the fuel supply tank of a motor vehicle or (ii) a dispenser that is enclosed by a fence or other physical barrier so that a vehicle cannot pull alongside the dispenser to permit fueling.
Any person who sells or uses 1-K kerosene for use in motor vehicles upon
which the tax imposed by this Law has not been paid shall be liable for any
tax due on the sales or use of 1-K kerosene.
(Source: P.A. 100-9, eff. 7-1-17.)