103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1221

 

Introduced 1/31/2023, by Rep. Amy L. Grant

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 505/2  from Ch. 120, par. 418

    Amends the Motor Fuel Tax Law. Provides that an increase in the rate of tax based on the change in the Consumer Price Index shall not occur until July 1, 2023 (currently, January 1, 2023). Ends a requirement that retailers of motor fuel shall cause a notice to be placed on retail dispensing devices. Effective immediately.


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A BILL FOR

 

HB1221LRB103 04783 HLH 49793 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Motor Fuel Tax Law is amended by changing
5Section 2 as follows:
 
6    (35 ILCS 505/2)  (from Ch. 120, par. 418)
7    Sec. 2. A tax is imposed on the privilege of operating
8motor vehicles upon the public highways and recreational-type
9watercraft upon the waters of this State.
10    (a) Prior to August 1, 1989, the tax is imposed at the rate
11of 13 cents per gallon on all motor fuel used in motor vehicles
12operating on the public highways and recreational type
13watercraft operating upon the waters of this State. Beginning
14on August 1, 1989 and until January 1, 1990, the rate of the
15tax imposed in this paragraph shall be 16 cents per gallon.
16Beginning January 1, 1990 and until July 1, 2019, the rate of
17tax imposed in this paragraph, including the tax on compressed
18natural gas, shall be 19 cents per gallon. Beginning July 1,
192019 and until July 1, 2020, the rate of tax imposed in this
20paragraph shall be 38 cents per gallon. Beginning July 1, 2020
21and until July 1, 2021, the rate of tax imposed in this
22paragraph shall be 38.7 cents per gallon. Beginning July 1,
232021 and until July 1, 2023 January 1, 2023, the rate of tax

 

 

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1imposed in this paragraph shall be 39.2 cents per gallon. On
2January 1, 2023, the rate of tax imposed in this paragraph
3shall be increased by an amount equal to the percentage
4increase, if any, in the Consumer Price Index for All Urban
5Consumers for all items published by the United States
6Department of Labor for the 12 months ending in September of
72022. On July 1, 2023, and on July 1 of each subsequent year,
8the rate of tax imposed in this paragraph shall be increased by
9an amount equal to the percentage increase, if any, in the
10Consumer Price Index for All Urban Consumers for all items
11published by the United States Department of Labor for the 12
12months ending in March of the year in which the increase takes
13place. The rate shall be rounded to the nearest one-tenth of
14one cent.
15    (a-5) Beginning on July 1, 2022 and through the effective
16date of this amendatory Act of the 103rd General Assembly,
17December 31, 2022, each retailer of motor fuel shall cause the
18following notice to be posted in a prominently visible place
19on each retail dispensing device that is used to dispense
20motor fuel in the State of Illinois: "As of July 1, 2022, the
21State of Illinois has suspended the inflation adjustment to
22the motor fuel tax through December 31, 2022. The price on this
23pump should reflect the suspension of the tax increase." The
24notice shall be printed in bold print on a sign that is no
25smaller than 4 inches by 8 inches. The sign shall be clearly
26visible to customers. Any retailer who fails to post or

 

 

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1maintain a required sign through the effective date of this
2amendatory Act of the 103rd General Assembly December 31, 2022
3is guilty of a petty offense for which the fine shall be $500
4per day per each retail premises where a violation occurs.
5    (b) Until July 1, 2019, the tax on the privilege of
6operating motor vehicles which use diesel fuel, liquefied
7natural gas, or propane shall be the rate according to
8paragraph (a) plus an additional 2 1/2 cents per gallon.
9Beginning July 1, 2019, the tax on the privilege of operating
10motor vehicles which use diesel fuel, liquefied natural gas,
11or propane shall be the rate according to subsection (a) plus
12an additional 7.5 cents per gallon. "Diesel fuel" is defined
13as any product intended for use or offered for sale as a fuel
14for engines in which the fuel is injected into the combustion
15chamber and ignited by pressure without electric spark.
16    (c) A tax is imposed upon the privilege of engaging in the
17business of selling motor fuel as a retailer or reseller on all
18motor fuel used in motor vehicles operating on the public
19highways and recreational type watercraft operating upon the
20waters of this State: (1) at the rate of 3 cents per gallon on
21motor fuel owned or possessed by such retailer or reseller at
2212:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
23per gallon on motor fuel owned or possessed by such retailer or
24reseller at 12:01 A.M. on January 1, 1990.
25    Retailers and resellers who are subject to this additional
26tax shall be required to inventory such motor fuel and pay this

 

 

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1additional tax in a manner prescribed by the Department of
2Revenue.
3    The tax imposed in this paragraph (c) shall be in addition
4to all other taxes imposed by the State of Illinois or any unit
5of local government in this State.
6    (d) Except as provided in Section 2a, the collection of a
7tax based on gallonage of gasoline used for the propulsion of
8any aircraft is prohibited on and after October 1, 1979, and
9the collection of a tax based on gallonage of special fuel used
10for the propulsion of any aircraft is prohibited on and after
11December 1, 2019.
12    (e) The collection of a tax, based on gallonage of all
13products commonly or commercially known or sold as 1-K
14kerosene, regardless of its classification or uses, is
15prohibited (i) on and after July 1, 1992 until December 31,
161999, except when the 1-K kerosene is either: (1) delivered
17into bulk storage facilities of a bulk user, or (2) delivered
18directly into the fuel supply tanks of motor vehicles and (ii)
19on and after January 1, 2000. Beginning on January 1, 2000, the
20collection of a tax, based on gallonage of all products
21commonly or commercially known or sold as 1-K kerosene,
22regardless of its classification or uses, is prohibited except
23when the 1-K kerosene is delivered directly into a storage
24tank that is located at a facility that has withdrawal
25facilities that are readily accessible to and are capable of
26dispensing 1-K kerosene into the fuel supply tanks of motor

 

 

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1vehicles. For purposes of this subsection (e), a facility is
2considered to have withdrawal facilities that are not "readily
3accessible to and capable of dispensing 1-K kerosene into the
4fuel supply tanks of motor vehicles" only if the 1-K kerosene
5is delivered from: (i) a dispenser hose that is short enough so
6that it will not reach the fuel supply tank of a motor vehicle
7or (ii) a dispenser that is enclosed by a fence or other
8physical barrier so that a vehicle cannot pull alongside the
9dispenser to permit fueling.
10    Any person who sells or uses 1-K kerosene for use in motor
11vehicles upon which the tax imposed by this Law has not been
12paid shall be liable for any tax due on the sales or use of 1-K
13kerosene.
14(Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19;
15101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.