91st General Assembly
4th Special Session
Summary of SB1310
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Senate Sponsors:
WATSON-NOLAND-LUECHTEFELD-O'DANIEL-WEAVER,S, BOWLES, 
   PARKER, JONES,W, MYERS,J, BOMKE, HAWKINSON, SIEBEN, 
   GEO-KARIS, DONAHUE, BURZYNSKI, PETERSON, PETKA, LAUZEN, 
   MADIGAN,R, WALSH,L, O'MALLEY, MAHAR, DILLARD, MITCHELL,N, 
   TROTTER, ROSKAM, WALSH,T, HENDON, DUDYCZ, DEMUZIO, 
   CRONIN, PHILIP, RADOGNO, MAITLAND AND RAUSCHENBERGER.

House Sponsors:
HOLBROOK-STEPHENS-MCGUIRE-WOOLARD-MYERS,RICHARD

Short description: 
SALES TAX-MOTOR FUEL-GASOHOL                                               

Synopsis of Bill as introduced:
        Amends the Use Tax Act, the Service  Use  Tax  Act,  the  Service      
   Occupation  Tax  Act, and the Retailers' Occupation Tax Act.  Provides      
   that beginning October 1, 2000, the tax imposed by  the  Acts  on  the      
   sale of  motor  fuel  and  gasohol shall be at the rate of 1.25% (now,      
   imposed at the rate  of  6.25%  on  everything  except  certain  food,      
   medicines,  and  medical equipment). Provides for the reversion of the      
   rate to 6.25% if  a  certain  tax  revenue  growth  is  not  attained.      
   Provides  that  beginning  November  1,  2000, and so long as the rate      
   remains at 1.25%, each month the Department of Revenue shall pay  into      
   the  County  and  Mass  Transit  District  Fund 20% and into the Local      
   Government Tax Fund 80% of the net revenue realized for the  preceding      
   month  from  the  1.25%  rate  on  the selling price of motor fuel and      
   gasohol.  Reduces from $0.04 to 0.8 cents the  amount  per  gallon  of      
   motor  fuel  and  from  $0.03  to  0.6  cents the amount per gallon of      
   gasohol that a motor  fuel  retailer  shall  prepay  to  a  registered      
   distributor,  supplier,  or  other reseller of motor fuel.  Amends the      
   Counties Code, the Illinois Municipal Code, the Salem Civic Center Law      
   of 1997 in the Civic Center Code, the Local Mass Transit District Act,      
   the Regional Transportation Authority Act, and  the  Water  Commission      
   Act  of 1985 to provide that a taxing authority (including a home rule      
   unit) that has not imposed a motor fuel tax or a use or occupation tax      
   on the sale, selling price, or use of motor fuel or gasohol before the      
   effective date of this Act shall not impose such a  tax  on  or  after      
   that  date.   Provides  that taxing authorities (including a home rule      
   unit) that have imposed a tax on the sale, selling price,  or  use  of      
   motor  fuel or gasohol before the effective date of this Act shall not      
   increase the rate of the tax on or after that  date.    Preempts  home      
   rule.  Provides that the amendatory provisions in the Use Tax Act, the      
   Service  Use  Tax  Act,  the  Service  Occupation  Tax  Act,  and  the      
   Retailers'  Occupation  Tax Act take effect October 1, 2000.  Provides      
   that the amendatory provisions in  the  Counties  Code,  the  Illinois      
   Municipal Code, the Salem Civic Center Law of 1997 in the Civic Center      
   Code, the Local Mass Transit District Act, the Regional Transportation      
   Authority  Act,  and  the  Water  Commission  Act  of 1985 take effect      
   immediately.                                                                
        SENATE AMENDMENT NO. 1.                                                
          Deletes reference to:                                                
          35 ILCS 105/3-10                from Ch. 120, par. 439.3-10          
          35 ILCS 105/9                   from Ch. 120, par. 439.9             
          35 ILCS 110/3-10                from Ch. 120, par. 439.33-10         
          35 ILCS 110/9                   from Ch. 120, par. 439.39            
          35 ILCS 115/3-10                from Ch. 120, par. 439.103-10        
          35 ILCS 115/9                   from Ch. 120, par. 439.109           
          35 ILCS 120/2-10                from Ch. 120, par. 441-10            
          35 ILCS 120/2d                  from Ch. 120, par. 441d              
          35 ILCS 120/3                   from Ch. 120, par. 442               
          55 ILCS 5/5-1006                from Ch. 34, par. 5-1006             
          55 ILCS 5/5-1006.5                                                   
          55 ILCS 5/5-1007                from Ch. 34, par. 5-1007             
          55 ILCS 5/5-1035.1              from Ch. 34, par. 5-1035.1           
          65 ILCS 5/8-11-1                from Ch. 24, par. 8-11-1             
          65 ILCS 5/8-11-1.1              from Ch. 24, par. 8-11-1.1           
          65 ILCS 5/8-11-5                from Ch. 24, par. 8-11-5             
          65 ILCS 5/8-11-6                from Ch. 24, par. 8-11-6             
          65 ILCS 5/8-11-15               from Ch. 24, par. 8-11-15            
          70 ILCS 200/245-12                                                   
          70 ILCS 3610/5.01               from Ch. 111 2/3, par. 355.01        
          70 ILCS 3615/4.03               from Ch. 111 2/3, par. 704.03        
          70 ILCS 3720/4                  from Ch. 111 2/3, par. 254           
          Adds reference to:                                                   
          35 ILCS 120/14                  from Ch. 120, par. 453               
        Deletes everything. Amends the  Retailers'  Occupation  Tax  Act.      
   Makes technical changes in a Section concerning the short title.            
        SENATE AMENDMENT NO. 2.                                                
          Deletes reference to:                                                
          35 ILCS 120/14                                                       
          Adds reference to:                                                   
          35 ILCS 105/3-10                from Ch. 120, par. 439.3-10          
          35 ILCS 105/9                   from Ch. 120, par. 439.9             
          35 ILCS 110/3-10                from Ch. 120, par. 439.33-10         
          35 ILCS 110/9                   from Ch. 120, par. 439.39            
          35 ILCS 115/3-10                from Ch. 120, par. 439.103-10        
          35 ILCS 115/9                   from Ch. 120, par. 439.109           
          35 ILCS 120/2-10                from Ch. 120, par. 441-10            
          35 ILCS 120/2d                  from Ch. 120, par. 441d              
          35 ILCS 120/3                   from Ch. 120, par. 442               
          35 ILCS 505/13a                 from Ch. 120, par. 429a              
          55 ILCS 5/5-1006                from Ch. 34, par. 5-1006             
          55 ILCS 5/5-1006.5                                                   
          55 ILCS 5/5-1007                from Ch. 34, par. 5-1007             
          55 ILCS 5/5-1035.1              from Ch. 34, par. 5-1035.1           
          65 ILCS 5/8-11-1                from Ch. 24, par. 8-11-1             
          65 ILCS 5/8-11-1.1              from Ch. 24, par. 8-11-1.1           
          65 ILCS 5/8-11-5                from Ch. 24, par. 8-11-5             
          65 ILCS 5/8-11-6                from Ch. 24, par. 8-11-6             
          65 ILCS 5/8-11-15               from Ch. 24, par. 8-11-15            
          70 ILCS 200/245-12                                                   
          70 ILCS 3610/5.01               from Ch. 111 2/3, par. 355.01        
          70 ILCS 3615/4.03               from Ch. 111 2/3, par. 704.03        
          70 ILCS 3720/4                  from Ch. 111 2/3, par. 254           
        Deletes everything.  Reinserts the  provisions  of  the  bill  as      
   introduced  but makes the following changes: (i) provides that, if the      
   aggregate tax revenues from motor fuel and  gasohol  under  the  Motor      
   Fuel  Tax  Law  (now,  the  Use  Tax Act, the Service Use Tax Act, the      
   Service Occupation Tax Act, and the  Retailers'  Occupation  Tax  Act)      
   during  the  period from October 1, 2002 (now, 2003) through September      
   30, 2003 (now, 2004) are not at least 15% more than the aggregate  tax      
   revenues  from motor fuel and gasohol under that Law (now, those Acts)      
   during the period from October 1, 1999 (now, 2000)  through  September      
   30,  2000  (now, 2001), then beginning January 1, 2004 (now, 2005) the      
   tax is imposed on motor fuel and gasohol at the  6.25%  general  rate,      
   (ii)  amends  the Motor Fuel Tax Law to provide that the part (b) rate      
   of the tax imposed upon the use of motor fuel upon  highways  of  this      
   State  by  commercial motor vehicles shall be determined using a 1.25%      
   rate rather than a 6.25% rate and (iii) provides that if, as a  result      
   of the provisions of this amendatory Act of the 91st General Assembly,      
   the  rate  of tax imposed on the sale of motor fuel and gasohol by the      
   Retailers' Occupation Tax Act returns to 6.25%,  then  the  amount  of      
   prepayment of the tax required of retailers of motor fuel shall return      
   to  the  amount under the 6.25% rate, the rate of the tax imposed upon      
   the use of motor fuel upon highways of this State by commercial  motor      
   vehicles  shall  return  to  6.25%,  and  the  prohibitions concerning      
   imposing a tax or increasing a tax placed upon local taxing units  are      
   no  longer  in effect. Provides that the Act takes effect immediately,      
   except that the amendatory changes to the Use Tax Act, the Service Use      
   Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation      
   Tax Act take effect on October 1, 2000.                                     
        HOUSE AMENDMENT NO. 1. (Tabled June 28, 2000)                          
          Adds reference to:                                                   
          20 ILCS 105/4.12 new                                                 
          35 ILCS 5/204                   from Ch. 120, par. 2-204             
          35 ILCS 5/212 new                                                    
          305 ILCS 5/5-2                  from Ch. 23, par. 5-2)               
          320 ILCS 25/2.5 new                                                  
          320 ILCS 25/3.02                from Ch. 67 1/2, par. 403.02         
          320 ILCS 25/3.03                from Ch. 67 1/2, par. 403.03         
          320 ILCS 25/3.15                from Ch. 67 1/2, par. 403.15         
          320 ILCS 25/4                   from Ch. 67 1/2, par. 404            
          320 ILCS 25/5                   from Ch. 67 1/2, par. 405            
          320 ILCS 25/13                  from Ch. 67 1/2, par. 413            
        Deletes everything. Amends the Illinois Act on the Aging and  the      
   Senior   Citizens   and  Disabled  Persons  Property  Tax  Relief  and      
   Pharmaceutical Assistance Act.  Provides that, beginning  on  July  1,      
   2000,  the  Department  on Aging shall be the primary administrator of      
   the Aid to the Aged,  Blind  and  Disabled  program  and  the  Circuit      
   Breaker  program  created  by the Senior Citizens and Disabled Persons      
   Property Tax Relief and Pharmaceutical Assistance Act.  Provides  that      
   the  Department  on Aging shall determine all policies, promulgate all      
   rules, and perform all intake and case management for these  programs.      
   Provides   that   the   Department   on   Aging  may  enter  into  any      
   intergovernmental agreements necessary in the  administration  of  the      
   programs  and shall report to the General Assembly with respect to the      
   passage of federal legislation concerning assistance with prescription      
   drugs for senior citizens.    Amends  the  Illinois  Income  Tax  Act.      
   Provides  that for taxable years ending on or after December 31, 2000,      
   each taxpayer shall be allowed a basic exemption amount of $3,000           
   (now, $2,000). Exempts this amendatory change from the sunset require-      
   ments. Creates an earned income tax credit. Provides that each indi-        
   vidual taxpayer is entitled to a credit against the tax imposed by the      
   Act in amount equal to 20% of the federal earned income tax credit          
   allowed.  Provides that if the amount of the credit  exceeds  the  tax      
   liability  for  the  year, then the excess credit shall be refunded to      
   the taxpayer.  Provides that the Department of Revenue shall calculate      
   the amount of the earned income credit upon the request of a taxpayer.      
   Amends the Use  Tax  Act,  the  Service  Use  Tax  Act,  the  Service       
   Occupation  Tax Act, the Retailers' Occupation Tax Act, the Motor Fuel      
   Tax Law, the Counties Code, the Illinois  Municipal  Code,  the  Civic      
   Center  Code,  the  Local  Mass  Transit  District  Act,  the Regional      
   Transportation Authority Act, and the Water Commission  Act  of  1985.      
   Provides  that,  if  the  aggregate  tax  revenues from motor fuel and      
   gasohol under the Motor Fuel Tax Law during the period from October 1,      
   2002 through September 30, 2003 are not at least  15%  more  than  the      
   aggregate  tax  revenues  from  motor  fuel and gasohol under that Law      
   during the period from October 1, 1999  through  September  30,  2000,      
   then  beginning January  1, 2004, the tax is imposed on motor fuel and      
   gasohol at the 6.25% general rate. Amends the Motor Fuel  Tax  Law  to      
   provide  that  the  part  (b)  rate of the tax imposed upon the use of      
   motor fuel upon highways of this State by  commercial  motor  vehicles      
   shall  be  determined  using  a  1.25%  rate rather than a 6.25% rate.      
   Provides that if, as a result of the provisions of this amendatory Act      
   of the 91st General Assembly, the rate of tax imposed on the  sale  of      
   motor fuel and gasohol by the Retailers' Occupation Tax Act returns to      
   6.25%,  then the amount of prepayment of the tax required of retailers      
   of motor fuel shall return to the amount under  the  6.25%  rate,  the      
   rate  of  the  tax imposed upon the use of motor fuel upon highways of      
   this State by commercial motor vehicles shall return to 6.25%, and the      
   prohibitions concerning imposing a tax or increasing a tax placed upon      
   local taxing units are  no  longer  in  effect.  Makes  other  changes      
   concerning  motor  fuel  taxes.    Amends  the Medicaid Article of the      
   Illinois Public Aid  Code.   Provides  for  Medicaid  eligibility  for      
   persons otherwise eligible for Aid to the Aged, Blind, or Disabled          
   program but who fail to qualify for that aid on the basis of need and       
   who meet either of the following requirements: (1) their income is          
   equal to or less than 100% of the federal nonfarm income official           
   poverty line or (ii) their income, after the deduction of costs             
   incurred for medical care and for other types of remedial care, is          
   equal to or less than 100% of the federal nonfarm income offical            
   poverty line. Amends the Senior Citizens and Disabled Persons Property      
   Tax Relief and Pharmaceutical Assistance Act. Provides that, beginning      
   January 1, 2001, cancer, Alzheimer's disease, Parkinson's disease,          
   glaucoma, lung disease, and smoking-related illnesses will be covered       
   under the Act. Authorizes the coverage of brand name drugs in certain       
   cases. Increases the income limitation, beginning with the 2000 grant       
   year, from $16,000 per year to (i) $21,218 for a household containing       
   one person, (ii) $28,480 for a household containing 2 persons, and          
   (iii) $35,740 for a household containing 3 or more persons. Provides        
   that after a beneficiary of the pharmaceutical assistance program           
   receives $2,000 (now, $800) in benefits during a State fiscal year,         
   that beneficiary shall also be charged 20% of the cost of each              
   prescription for which payments are made by the program during the          
   remainder of the fiscal year. Reduces the fee charged for an                
   identification card under the pharmaceutical assistance program and         
   provides that beneficiaries who are below the poverty level shall pay       
   no additional prescription costs per month and those at or above the        
   poverty level shall pay $3 per prescription thereafter (rather than         
   $15 or $25 per month, respectively). Removes a provision that a             
   person is not eligible for pharmaceutical assistance in the calendar        
   year in which he or she turns 65. Provides that eligibility for             
   pharmaceutical assistance shall be determined using the applicant's         
   current income. Makes other changes. Provides that the Act takes            
   effect immediately, except that the amendatory changes to the Use Tax       
   Act, the Service Use Tax Act, the Service Occupation Tax Act, and the       
   Retailers' Occupation Tax Act take effect on October 1, 2000.               
          STATE DEBT NOTE, H-AM 1 (Economic and Fiscal Commission)             
          This legislation would not affect the bonding authorization of       
          the State, and therefore, has no direct impact on the level of       
          State indebtedness.                                                  
          BALANCED BUDGET NOTE (Bureau of the Budget)                          
          Since SB 1310 is not a supplemental appropriation bill, the          
          Balanced Budget Note Act is inapplicable.                            
          STATE MANDATES NOTE, H-AM 1                                          
          (Department of Commerce and Community Affairs)                       
          This legislation creates a tax exemption mandate for which           
          State reimbursement of the revenue loss to units of local            
          government is required. Due to the nature of the bill, no            
          estimate of the amount of reimbursement required is available.       
          HOME RULE NOTE, H-AM 1                                               
          (Department of Commerce and Community Affairs)                       
          This legislation amends specific provisions of the statutes          
          to state that the amendments are a denial and a limitation of        
          home rule powers to tax. Home rule units affected are: home          
          rule counties imposing sales taxes; home rule counties imposing      
          the public safety sales tax; home rule municipalities imposing       
          sales taxes; and home rule municipalities, if any, which have        
          imposed motor fuel taxes specifically under the Section of the       
          Municipal Code relating to motor fuel taxes.                         
          FISCAL NOTE, H-AM 1 (Department of Revenue)                          
          An earned income tax credit will cost the State an estimated         
          $261 million per year. Reducing the sales tax rate on motor          
          fuel to 1.25% will cost approximately $335 million per year,         
          using average pump prices for 1999. Increasing the basic exemp-      
          tion to $3000 will cost the State an estimated $322 million per      
          year. The total fiscal impact related to the taxes and programs      
          administered by the Department of Revenue is estimated to be         
          almost $1 billion. The cost of the proposed changes to the           
          Circuit Breaker and Pharmaceutical Assistance Program are in-        
          determinable by the Department.                                      
        HOUSE AMENDMENT NO. 2.                                                 
          Adds reference to:                                                   
          30 ILCS 105/6z-18               from Ch. 127, par. 142z-18           
          30 ILCS 105/6z-20               from Ch. 127, par. 142z-20           
        Deletes everything.  Amends the Use Tax Act, the Service Use  Tax      
   Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax      
   Act.   Provides  that  beginning July 1, 2000 and through December 31,      
   2000, the tax with respect to motor fuel and gasohol is imposed  under      
   these  Acts  at  the rate of 1.25% (eliminating the State's portion of      
   the tax). Requires retailers to  post  a  notice  on  pumps  that  the      
   State's share of tax has been eliminated through December 31, 2000 and      
   imposes  a  fine  of  $500  per  day  per each retail premises where a      
   violation occurs.  Reduces for the same period from $0.04 to $0.01 the      
   amount per gallon of motor fuel and from $0.03 to $0.01 the amount per      
   gallon of gasohol that a motor fuel retailer shall prepay in taxes  to      
   a  registered  distributor, supplier, or other reseller of motor fuel.      
   Amends the State Finance Act to provide for the  distribution  of  the      
   1.25% tax on motor fuel and gasohol.  Amends the Motor Fuel Tax Law to      
   provide  that  the  part  (b)  rate of the tax imposed upon the use of      
   motor fuel upon  highways of this State by commercial  motor  vehicles      
   shall  be  determined using a 1.25% rate rather than a 6.25% rate from      
   July 1, 2000 through December 31, 2000. Effective July 1, 2000.             
 
Last action on Bill: PUBLIC ACT.............................. 91-0872

   Last action date: 00-06-29

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   1     SENATE -   2


   END OF INQUIRY 
                                                                               



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