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91_HB4032
LRB9112101SMdv
1 AN ACT to amend the Motor Fuel Tax Law by changing
2 Sections 5, 5a, 6, and 6a.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Motor Fuel Tax Law is amended by changing
6 Sections 5, 5a, 6, and 6a as follows:
7 (35 ILCS 505/5) (from Ch. 120, par. 421)
8 Sec. 5. Except as hereinafter provided, a person holding
9 a valid unrevoked license to act as a distributor of motor
10 fuel shall, between the 1st and 20th days of each calendar
11 month, make return to the Department, showing an itemized
12 statement of the number of invoiced gallons of motor fuel of
13 the types specified in this Section which were purchased,
14 acquired or received during the preceding calendar month; the
15 amount of such motor fuel produced, refined, compounded,
16 manufactured, blended, sold, distributed, and used by the
17 licensed distributor during the preceding calendar month; the
18 amount of such motor fuel lost or destroyed during the
19 preceding calendar month; and the amount of such motor fuel
20 on hand at the close of business for such month. If a
21 distributor's only activities with respect to motor fuel are
22 either: (1) production of alcohol in quantities of less than
23 10,000 proof gallons per year or (2) blending alcohol in
24 quantities of less than 10,000 proof gallons per year which
25 such distributor has produced, he shall file returns on an
26 annual basis with the return for a given year being due by
27 January 20 of the following year. Distributors whose total
28 production of alcohol (whether blended or not) exceeds 10,000
29 proof gallons per year, based on production during the
30 preceding (calendar) year or as reasonably projected by the
31 Department if one calendar year's record of production cannot
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1 be established, shall file returns between the 1st and 20th
2 days of each calendar month as hereinabove provided.
3 The types of motor fuel referred to in the preceding
4 paragraph are: (A) All products commonly or commercially
5 known or sold as gasoline (including casing-head and
6 absorption or natural gasoline), gasohol, motor benzol or
7 motor benzene regardless of their classification or uses; and
8 (B) all combustible gases which exist in a gaseous state at
9 60 degrees Fahrenheit and at 14.7 pounds per square inch
10 absolute including, but not limited to, liquefied petroleum
11 gases used for highway purposes; and (C) special fuel. Only
12 those quantities of combustible gases (example (B) above)
13 which are used or sold by the distributor to be used to
14 propel motor vehicles on the public highways, or which are
15 delivered into the bulk storage facilities of a bulk user, or
16 which are delivered into a storage tank that is located at a
17 facility that has withdrawal facilities which are readily
18 accessible to and are capable of dispensing combustible gases
19 into the fuel supply tanks of motor vehicles, shall be
20 subject to return. For the purposes of this Act, liquefied
21 petroleum gases shall mean and include any material having a
22 vapor pressure not exceeding that allowed for commercial
23 propane composed predominantly of the following hydrocarbons,
24 either by themselves or as mixtures: Propane, Propylene,
25 Butane (normal butane or iso-butane) and Butylene (including
26 isomers).
27 In case of a sale of special fuel to someone other than a
28 licensed distributor, or a licensed supplier, for a use other
29 than in motor vehicles, the distributor shall show in his
30 return the amount of invoiced gallons sold and the name and
31 address of the purchaser in addition to any other information
32 the Department may require.
33 All special fuel sold or used for non-highway purposes
34 must have a dye added in accordance with Section 4d of this
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1 Law.
2 In case of a tax-free sale, as provided in Section 6, of
3 motor fuel which the distributor is required by this Section
4 to include in his return to the Department, the distributor
5 in his return shall show: (1) If the sale is made to another
6 licensed distributor the amount sold and the name, address
7 and license number of the purchasing distributor; (2) if the
8 sale is made to a person where delivery is made outside of
9 this State the name and address of such purchaser and the
10 point of delivery together with the date and amount
11 delivered; (3) if the sale is made to the Federal Government
12 or its instrumentalities the amount sold; (4) if the sale is
13 made to a municipal corporation owning and operating a local
14 transportation system for public service in this State the
15 name and address of such purchaser, and the amount sold, as
16 evidenced by official forms of exemption certificates
17 properly executed and furnished by such purchaser; (5) if the
18 sale is made to a privately owned public utility owning and
19 operating 2-axle vehicles designed and used for transporting
20 more than 7 passengers, which vehicles are used as common
21 carriers in general transportation of passengers, are not
22 devoted to any specialized purpose and are operated entirely
23 within the territorial limits of a single municipality or of
24 any group of contiguous municipalities or in a close radius
25 thereof, and the operations of which are subject to the
26 regulations of the Illinois Commerce Commission, then the
27 name and address of such purchaser and the amount sold as
28 evidenced by official forms of exemption certificates
29 properly executed and furnished by the purchaser; (6) if the
30 product sold is special fuel and if the sale is made to a
31 licensed supplier under conditions which qualify the sale for
32 tax exemption under Section 6 of this Act, the amount sold
33 and the name, address and license number of the purchaser;
34 and (7) if a sale of special fuel is made to someone other
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1 than a licensed distributor, or a licensed supplier, for a
2 use other than in motor vehicles, by making a specific
3 notation thereof on the invoice or sales slip covering such
4 sales and obtaining such supporting documentation as may be
5 required by the Department; and (8) if the sale is made to a
6 private entity whose vehicles are used to provide tours in
7 this State to the public, the name and address of the
8 purchaser and the amount sold, as evidenced by official forms
9 of exemption certificates properly executed and furnished by
10 the purchaser.
11 All special fuel sold or used for non-highway purposes
12 must have a dye added in accordance with Section 4d of this
13 Law.
14 A person whose license to act as a distributor of motor
15 fuel has been revoked shall make a return to the Department
16 covering the period from the date of the last return to the
17 date of the revocation of the license, which return shall be
18 delivered to the Department not later than 10 days from the
19 date of the revocation or termination of the license of such
20 distributor; the return shall in all other respects be
21 subject to the same provisions and conditions as returns by
22 distributors licensed under the provisions of this Act.
23 The records, waybills and supporting documents kept by
24 railroads and other common carriers in the regular course of
25 business shall be prima facie evidence of the contents and
26 receipt of cars or tanks covered by those records, waybills
27 or supporting documents.
28 If the Department has reason to believe and does believe
29 that the amount shown on the return as purchased, acquired,
30 received, sold, used, lost or destroyed is incorrect, or that
31 an amount of motor fuel of the types required by the second
32 paragraph of this Section to be reported to the Department
33 has not been correctly reported the Department shall fix an
34 amount for such receipt, sales, use, loss or destruction
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1 according to its best judgment and information, which amount
2 so fixed by the Department shall be prima facie correct. All
3 returns shall be made on forms prepared and furnished by the
4 Department, and shall contain such other information as the
5 Department may reasonably require. The return must be
6 accompanied by appropriate computer-generated magnetic media
7 supporting schedule data in the format required by the
8 Department, unless, as provided by rule, the Department
9 grants an exception upon petition of a taxpayer. All licensed
10 distributors shall report all losses of motor fuel sustained
11 on account of fire, theft, spillage, spoilage, leakage, or
12 any other provable cause when filing the return for the
13 period during which the loss occurred. The mere making of the
14 report does not assure the allowance of the loss as a
15 reduction in tax liability. Losses of motor fuel as the
16 result of evaporation or shrinkage due to temperature
17 variations may not exceed one percent of the total gallons
18 in storage at the beginning of the month, plus the receipts
19 of gallonage during the month, minus the gallonage remaining
20 in storage at the end of the month. Any loss reported that
21 is in excess of one percent shall be subject to the tax
22 imposed by Section 2 of this Law.
23 (Source: P.A. 91-173, eff. 1-1-00.)
24 (35 ILCS 505/5a) (from Ch. 120, par. 421a)
25 Sec. 5a. A person holding a valid unrevoked license to
26 act as a supplier of special fuel shall, between the 1st and
27 20th days of each calendar month, make return to the
28 Department showing an itemized statement of the number of
29 invoiced gallons of special fuel acquired, received,
30 purchased, sold, or used during the preceding calendar month;
31 the amount of special fuel sold, distributed, and used by the
32 licensed supplier during the preceding calendar month; the
33 amount of special fuel lost or destroyed during the preceding
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1 calendar month; and the amount of special fuel on hand at the
2 close of business for the preceding calendar month.
3 A person whose license to act as a supplier of special
4 fuel has been revoked shall make a return to the Department
5 covering the period from the date of the last return to the
6 date of the revocation of the license, which return shall be
7 delivered to the Department not later than 10 days from the
8 date of the revocation or termination of the license of such
9 supplier. The return shall in all other respects be subject
10 to the same provisions and conditions as returns by suppliers
11 licensed under this Act.
12 The records, waybills and supporting documents kept by
13 railroads and other common carriers in the regular course of
14 business shall be prima facie evidence of the contents and
15 receipt of cars or tanks covered by those records, waybills
16 or supporting documents.
17 If the Department has reason to believe and does believe
18 that the amount shown on the return as purchased, acquired,
19 received, sold, used, or lost is incorrect, or that an amount
20 of special fuel of the type required by the 1st paragraph of
21 this Section to be reported to the Department by suppliers
22 has not been correctly reported as a purchase, receipt, sale,
23 use, or loss the Department shall fix an amount for such
24 purchase, receipt, sale, use, or loss according to its best
25 judgment and information, which amount so fixed by the
26 Department shall be prima facie correct. All licensed
27 suppliers shall report all losses of special fuel sustained
28 on account of fire, theft, spillage, spoilage, leakage, or
29 any other provable cause when filing the return for the
30 period during which the loss occurred. The mere making of
31 the report does not assure the allowance of the loss as a
32 reduction in tax liability. Losses of special fuel as the
33 result of evaporation or shrinkage due to temperature
34 variations may not exceed one percent of the total gallons
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1 in storage at the beginning of the month, plus the receipts
2 of gallonage during the month, minus the gallonage remaining
3 in storage at the end of the month.
4 Any loss reported that is in excess of one percent shall
5 be subject to the tax imposed by Section 2 of this Law.
6 In case of a sale of special fuel to someone other than a
7 licensed distributor or licensed supplier for a use other
8 than in motor vehicles, the supplier shall show in his return
9 the amount of invoiced gallons sold and the name and address
10 of the purchaser in addition to any other information the
11 Department may require.
12 All special fuel sold or used for non-highway purposes
13 must have a dye added in accordance with Section 4d of this
14 Law.
15 All returns shall be made on forms prepared and furnished
16 by the Department and shall contain such other information as
17 the Department may reasonably require. The return must be
18 accompanied by appropriate computer-generated magnetic media
19 supporting schedule data in the format required by the
20 Department, unless, as provided by rule, the Department
21 grants an exception upon petition of a taxpayer.
22 In case of a tax-free sale, as provided in Section 6a, of
23 special fuel which the supplier is required by this Section
24 to include in his return to the Department, the supplier in
25 his return shall show: (1) If the sale of special fuel is
26 made to the Federal Government or its instrumentalities; (2)
27 if the sale of special fuel is made to a municipal
28 corporation owning and operating a local transportation
29 system for public service in this State, the name and address
30 of such purchaser and the amount sold, as evidenced by
31 official forms of exemption certificates properly executed
32 and furnished by such purchaser; (3) if the sale of special
33 fuel is made to a privately owned public utility owning and
34 operating 2-axle vehicles designed and used for transporting
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1 more than 7 passengers, which vehicles are used as common
2 carriers in general transportation of passengers, are not
3 devoted to any specialized purpose and are operated entirely
4 within the territorial limits of a single municipality or of
5 any group of contiguous municipalities or in a close radius
6 thereof, and the operations of which are subject to the
7 regulations of the Illinois Commerce Commission, then the
8 name and address of such purchaser and the amount sold, as
9 evidenced by official forms of exemption certificates
10 properly executed and furnished by such purchaser; (4) if the
11 product sold is special fuel and if the sale is made to a
12 licensed supplier or to a licensed distributor under
13 conditions which qualify the sale for tax exemption under
14 Section 6a of this Act, the amount sold and the name, address
15 and license number of such purchaser; (5) if a sale of
16 special fuel is made to a person where delivery is made
17 outside of this State, the name and address of such purchaser
18 and the point of delivery together with the date and amount
19 of invoiced gallons delivered; and (6) if a sale of special
20 fuel is made to someone other than a licensed distributor or
21 a licensed supplier, for a use other than in motor vehicles,
22 by making a specific notation thereof on the invoice or sales
23 slip covering that sale and obtaining such supporting
24 documentation as may be required by the Department; and (7)
25 if the sale of special fuel is made to a private entity whose
26 vehicles are used to provide tours in this State to the
27 public, the name and address of the purchaser and the amount
28 sold, as evidenced by official forms of exemption
29 certificates properly executed and furnished by the
30 purchaser.
31 All special fuel sold or used for non-highway purposes
32 must have a dye added in accordance with Section 4d of this
33 Law.
34 (Source: P.A. 91-173, eff. 1-1-00.)
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1 (35 ILCS 505/6) (from Ch. 120, par. 422)
2 Sec. 6. Collection of tax; distributors. A distributor
3 who sells or distributes any motor fuel, which he is required
4 by Section 5 to report to the Department when filing a
5 return, shall (except as hereinafter provided) collect at the
6 time of such sale and distribution, the amount of tax imposed
7 under this Act on all such motor fuel sold and distributed,
8 and at the time of making a return, the distributor shall pay
9 to the Department the amount so collected less a discount of
10 2% which is allowed to reimburse the distributor for the
11 expenses incurred in keeping records, preparing and filing
12 returns, collecting and remitting the tax and supplying data
13 to the Department on request, and shall also pay to the
14 Department an amount equal to the amount that would be
15 collectible as a tax in the event of a sale thereof on all
16 such motor fuel used by said distributor during the period
17 covered by the return. However, no payment shall be made
18 based upon dyed diesel fuel used by the distributor for
19 non-highway purposes. The 2% discount shall only be
20 applicable to the amount of tax payment which accompanies a
21 return which is filed timely in accordance with Section 5 of
22 this Act. In each subsequent sale of motor fuel on which the
23 amount of tax imposed under this Act has been collected as
24 provided in this Section, the amount so collected shall be
25 added to the selling price, so that the amount of tax is paid
26 ultimately by the user of the motor fuel. However, no
27 collection or payment shall be made in the case of the sale
28 or use of any motor fuel to the extent to which such sale or
29 use of motor fuel may not, under the constitution and
30 statutes of the United States, be made the subject of
31 taxation by this State. A person whose license to act as a
32 distributor of fuel has been revoked shall, at the time of
33 making a return, also pay to the Department an amount equal
34 to the amount that would be collectible as a tax in the event
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1 of a sale thereof on all motor fuel, which he is required by
2 the second paragraph of Section 5 to report to the Department
3 in making a return, and which he had on hand on the date on
4 which the license was revoked, and with respect to which no
5 tax had been previously paid under this Act.
6 A distributor may make tax free sales of motor fuel, with
7 respect to which he is otherwise required to collect the tax,
8 when the motor fuel is delivered from a dispensing facility
9 that has withdrawal facilities capable of dispensing motor
10 fuel into the fuel supply tanks of motor vehicles only as
11 specified in the following items 3, 4, and 5. A distributor
12 may make tax-free sales of motor fuel, with respect to which
13 he is otherwise required to collect the tax, when the motor
14 fuel is delivered from other facilities only as specified in
15 the following items 1 through 9 7.
16 1. When the sale is made to a person holding a
17 valid unrevoked license as a distributor, by making a
18 specific notation thereof on invoices or sales slip
19 covering each sale.
20 2. When the sale is made with delivery to a
21 purchaser outside of this State.
22 3. When the sale is made to the Federal Government
23 or its instrumentalities.
24 4. When the sale is made to a municipal corporation
25 owning and operating a local transportation system for
26 public service in this State when an official certificate
27 of exemption is obtained in lieu of the tax.
28 5. When the sale is made to a privately owned
29 public utility owning and operating 2 axle vehicles
30 designed and used for transporting more than 7
31 passengers, which vehicles are used as common carriers in
32 general transportation of passengers, are not devoted to
33 any specialized purpose and are operated entirely within
34 the territorial limits of a single municipality or of any
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1 group of contiguous municipalities, or in a close radius
2 thereof, and the operations of which are subject to the
3 regulations of the Illinois Commerce Commission, when an
4 official certificate of exemption is obtained in lieu of
5 the tax.
6 6. When a sale of special fuel is made to a person
7 holding a valid, unrevoked license as a supplier, by
8 making a specific notation thereof on the invoice or
9 sales slip covering each such sale.
10 7. When a sale of special fuel is made to someone
11 other than a licensed distributor or a licensed supplier
12 for a use other than in motor vehicles, by making a
13 specific notation thereof on the invoice or sales slip
14 covering such sale and obtaining such supporting
15 documentation as may be required by the Department. The
16 distributor shall obtain and keep the supporting
17 documentation in such form as the Department may require
18 by rule.
19 8. (Blank).
20 9. When the sale is made to a private entity whose
21 vehicles are used to provide tours in this State to the
22 public when an official certificate of exemption is
23 obtained in lieu of the tax.
24 All special fuel sold or used for non-highway purposes
25 must have a dye added in accordance with Section 4d of this
26 Law.
27 All suits or other proceedings brought for the purpose of
28 recovering any taxes, interest or penalties due the State of
29 Illinois under this Act may be maintained in the name of the
30 Department.
31 (Source: P.A. 91-173, eff. 1-1-00.)
32 (35 ILCS 505/6a) (from Ch. 120, par. 422a)
33 Sec. 6a. Collection of tax; suppliers. A supplier, other
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1 than a licensed distributor, who sells or distributes any
2 special fuel, which he is required by Section 5a to report to
3 the Department when filing a return, shall (except as
4 hereinafter provided) collect at the time of such sale and
5 distribution, the amount of tax imposed under this Act on all
6 such special fuel sold and distributed, and at the time of
7 making a return, the supplier shall pay to the Department the
8 amount so collected less a discount of 2% which is allowed
9 to reimburse the supplier for the expenses incurred in
10 keeping records, preparing and filing returns, collecting and
11 remitting the tax and supplying data to the Department on
12 request, and shall also pay to the Department an amount
13 equal to the amount that would be collectible as a tax in the
14 event of a sale thereof on all such special fuel used by said
15 supplier during the period covered by the return. However,
16 no payment shall be made based upon dyed diesel fuel used by
17 said supplier for non-highway purposes. The 2% discount shall
18 only be applicable to the amount of tax payment which
19 accompanies a return which is filed timely in accordance with
20 Section 5(a) of this Act. In each subsequent sale of special
21 fuel on which the amount of tax imposed under this Act has
22 been collected as provided in this Section, the amount so
23 collected shall be added to the selling price, so that the
24 amount of tax is paid ultimately by the user of the special
25 fuel. However, no collection or payment shall be made in the
26 case of the sale or use of any special fuel to the extent to
27 which such sale or use of motor fuel may not, under the
28 Constitution and statutes of the United States, be made the
29 subject of taxation by this State.
30 A person whose license to act as supplier of special fuel
31 has been revoked shall, at the time of making a return, also
32 pay to the Department an amount equal to the amount that
33 would be collectible as a tax in the event of a sale thereof
34 on all special fuel, which he is required by the 1st
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1 paragraph of Section 5a to report to the Department in making
2 a return.
3 A supplier may make tax-free sales of special fuel, with
4 respect to which he is otherwise required to collect the tax,
5 when the motor fuel is delivered from a dispensing facility
6 that has withdrawal facilities capable of dispensing special
7 fuel into the fuel supply tanks of motor vehicles only as
8 specified in the following items 1, 2, and 3. A supplier may
9 make tax-free sales of special fuel, with respect to which he
10 is otherwise required to collect the tax, when the special
11 fuel is delivered from other facilities only as specified in
12 the following items 1 through 8 7.
13 1. When the sale is made to the federal government
14 or its instrumentalities.
15 2. When the sale is made to a municipal corporation
16 owning and operating a local transportation system for
17 public service in this State when an official certificate
18 of exemption is obtained in lieu of the tax.
19 3. When the sale is made to a privately owned
20 public utility owning and operating 2 axle vehicles
21 designed and used for transporting more than 7
22 passengers, which vehicles are used as common carriers in
23 general transportation of passengers, are not devoted to
24 any specialized purpose and are operated entirely within
25 the territorial limits of a single municipality or of any
26 group of contiguous municipalities, or in a close radius
27 thereof, and the operations of which are subject to the
28 regulations of the Illinois Commerce Commission, when an
29 official certificate of exemption is obtained in lieu of
30 the tax.
31 4. When a sale of special fuel is made to a person
32 holding a valid unrevoked license as a supplier or a
33 distributor by making a specific notation thereof on
34 invoice or sales slip covering each such sale.
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1 5. When a sale of special fuel is made to someone
2 other than a licensed distributor, licensed supplier, or
3 licensed bulk user for a use other than in motor
4 vehicles, by making a specific notation thereof on the
5 invoice or sales slip covering such sale and obtaining
6 such supporting documentation as may be required by the
7 Department. The supplier shall obtain and keep the
8 supporting documentation in such form as the Department
9 may require by rule.
10 6. (Blank).
11 7. When a sale of special fuel is made to a person
12 where delivery is made outside of this State.
13 8. When the sale is made to a private entity whose
14 vehicles are used to provide tours in this State to the
15 public when an official certificate of exemption is
16 obtained in lieu of the tax.
17 All special fuel sold or used for non-highway purposes
18 must have a dye added in accordance with Section 4d of this
19 Law.
20 All suits or other proceedings brought for the purpose of
21 recovering any taxes, interest or penalties due the State of
22 Illinois under this Act may be maintained in the name of the
23 Department.
24 (Source: P.A. 91-173, eff. 1-1-00.)
25 Section 99. Effective date. This Act takes effect upon
26 becoming law.