103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1575

 

Introduced 1/31/2023, by Rep. Adam M. Niemerg

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 505/2  from Ch. 120, par. 418
35 ILCS 505/8  from Ch. 120, par. 424
65 ILCS 5/8-11-2.3

    Amends the Motor Fuel Tax Law. Provides that, beginning on July 1, 2023, the rate of tax shall be $0.19 per gallon (currently, 39.2 cents per gallon, adjusted each year according to the percentage increase in the Consumer Price Index), plus an additional 2 1/2 cents per gallon for diesel fuel, liquefied natural gas, or propane. Amends the Illinois Municipal Code. Provides that no tax may be imposed under the Municipal Motor Fuel Tax Law on or after July 1, 2023. Preempts the exercise of home rule powers. Effective immediately.


LRB103 26110 HLH 52465 b

 

 

A BILL FOR

 

HB1575LRB103 26110 HLH 52465 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
5Sections 2 and 8 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 January 1, 2023, the rate of tax imposed in this

 

 

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1paragraph shall be 39.2 cents per gallon. On January 1, 2023
2and until July 1, 2023, the rate of tax imposed in this
3paragraph shall be increased by an amount equal to the
4percentage increase, if any, in the Consumer Price Index for
5All Urban Consumers for all items published by the United
6States Department of Labor for the 12 months ending in
7September of 2022. Beginning on July 1, 2023, the rate of tax
8imposed in this paragraph, including the tax on compressed
9natural gas, shall be $0.19 per gallon. On July 1, 2023, and on
10July 1 of each subsequent year, the rate of tax imposed in this
11paragraph shall be increased by an amount equal to the
12percentage increase, if any, in the Consumer Price Index for
13All Urban Consumers for all items published by the United
14States Department of Labor for the 12 months ending in March of
15the year in which the increase takes place. The rate shall be
16rounded to the nearest one-tenth of one cent.
17    (a-5) Beginning on July 1, 2022 and through December 31,
182022, each retailer of motor fuel shall cause the following
19notice to be posted in a prominently visible place on each
20retail dispensing device that is used to dispense motor fuel
21in the State of Illinois: "As of July 1, 2022, the State of
22Illinois has suspended the inflation adjustment to the motor
23fuel tax through December 31, 2022. The price on this pump
24should reflect the suspension of the tax increase." The notice
25shall be printed in bold print on a sign that is no smaller
26than 4 inches by 8 inches. The sign shall be clearly visible to

 

 

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1customers. Any retailer who fails to post or maintain a
2required sign through December 31, 2022 is guilty of a petty
3offense for which the fine shall be $500 per day per each
4retail premises where a violation occurs.
5    (b) Until July 1, 2019 and beginning again on July 1, 2023,
6the tax on the privilege of operating motor vehicles which use
7diesel fuel, liquefied natural gas, or propane shall be the
8rate according to paragraph (a) plus an additional 2 1/2 cents
9per gallon. Beginning July 1, 2019 and until July 1, 2023, the
10tax on the privilege of operating motor vehicles which use
11diesel fuel, liquefied natural gas, or propane shall be the
12rate according to subsection (a) plus an additional 7.5 cents
13per gallon. "Diesel fuel" is defined as any product intended
14for use or offered for sale as a fuel for engines in which the
15fuel is injected into the combustion chamber and ignited by
16pressure without electric spark.
17    (c) A tax is imposed upon the privilege of engaging in the
18business of selling motor fuel as a retailer or reseller on all
19motor fuel used in motor vehicles operating on the public
20highways and recreational type watercraft operating upon the
21waters of this State: (1) at the rate of 3 cents per gallon on
22motor fuel owned or possessed by such retailer or reseller at
2312:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
24per gallon on motor fuel owned or possessed by such retailer or
25reseller at 12:01 A.M. on January 1, 1990.
26    Retailers and resellers who are subject to this additional

 

 

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1tax shall be required to inventory such motor fuel and pay this
2additional tax in a manner prescribed by the Department of
3Revenue.
4    The tax imposed in this paragraph (c) shall be in addition
5to all other taxes imposed by the State of Illinois or any unit
6of local government in this State.
7    (d) Except as provided in Section 2a, the collection of a
8tax based on gallonage of gasoline used for the propulsion of
9any aircraft is prohibited on and after October 1, 1979, and
10the collection of a tax based on gallonage of special fuel used
11for the propulsion of any aircraft is prohibited on and after
12December 1, 2019.
13    (e) The collection of a tax, based on gallonage of all
14products commonly or commercially known or sold as 1-K
15kerosene, regardless of its classification or uses, is
16prohibited (i) on and after July 1, 1992 until December 31,
171999, except when the 1-K kerosene is either: (1) delivered
18into bulk storage facilities of a bulk user, or (2) delivered
19directly into the fuel supply tanks of motor vehicles and (ii)
20on and after January 1, 2000. Beginning on January 1, 2000, the
21collection of a tax, based on gallonage of all products
22commonly or commercially known or sold as 1-K kerosene,
23regardless of its classification or uses, is prohibited except
24when the 1-K kerosene is delivered directly into a storage
25tank that is located at a facility that has withdrawal
26facilities that are readily accessible to and are capable of

 

 

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1dispensing 1-K kerosene into the fuel supply tanks of motor
2vehicles. For purposes of this subsection (e), a facility is
3considered to have withdrawal facilities that are not "readily
4accessible to and capable of dispensing 1-K kerosene into the
5fuel supply tanks of motor vehicles" only if the 1-K kerosene
6is delivered from: (i) a dispenser hose that is short enough so
7that it will not reach the fuel supply tank of a motor vehicle
8or (ii) a dispenser that is enclosed by a fence or other
9physical barrier so that a vehicle cannot pull alongside the
10dispenser to permit fueling.
11    Any person who sells or uses 1-K kerosene for use in motor
12vehicles upon which the tax imposed by this Law has not been
13paid shall be liable for any tax due on the sales or use of 1-K
14kerosene.
15(Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19;
16101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
17    (35 ILCS 505/8)  (from Ch. 120, par. 424)
18    Sec. 8. Except as provided in subsection (a-1) of this
19Section, Section 8a, subdivision (h)(1) of Section 12a,
20Section 13a.6, and items 13, 14, 15, and 16 of Section 15, all
21money received by the Department under this Act, including
22payments made to the Department by member jurisdictions
23participating in the International Fuel Tax Agreement, shall
24be deposited in a special fund in the State treasury, to be
25known as the "Motor Fuel Tax Fund", and shall be used as

 

 

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1follows:
2    (a) 2 1/2 cents per gallon of the tax collected on special
3fuel under paragraph (b) of Section 2 and Section 13a of this
4Act shall be transferred to the State Construction Account
5Fund in the State Treasury; the remainder of the tax collected
6on special fuel under paragraph (b) of Section 2 and Section
713a of this Act shall be deposited into the Road Fund;
8    (a-1) Beginning on July 1, 2019 and until July 1, 2023, an
9amount equal to the amount of tax collected under subsection
10(a) of Section 2 as a result of the increase in the tax rate
11under Public Act 101-32 shall be transferred each month into
12the Transportation Renewal Fund;
13    (b) $420,000 shall be transferred each month to the State
14Boating Act Fund to be used by the Department of Natural
15Resources for the purposes specified in Article X of the Boat
16Registration and Safety Act;
17    (c) $3,500,000 shall be transferred each month to the
18Grade Crossing Protection Fund to be used as follows: not less
19than $12,000,000 each fiscal year shall be used for the
20construction or reconstruction of rail highway grade
21separation structures; $5,500,000 in fiscal year 2022 and each
22fiscal year thereafter shall be transferred to the
23Transportation Regulatory Fund and shall be used to pay the
24cost of administration of the Illinois Commerce Commission's
25railroad safety program in connection with its duties under
26subsection (3) of Section 18c-7401 of the Illinois Vehicle

 

 

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1Code, with the remainder to be used by the Department of
2Transportation upon order of the Illinois Commerce Commission,
3to pay that part of the cost apportioned by such Commission to
4the State to cover the interest of the public in the use of
5highways, roads, streets, or pedestrian walkways in the county
6highway system, township and district road system, or
7municipal street system as defined in the Illinois Highway
8Code, as the same may from time to time be amended, for
9separation of grades, for installation, construction or
10reconstruction of crossing protection or reconstruction,
11alteration, relocation including construction or improvement
12of any existing highway necessary for access to property or
13improvement of any grade crossing and grade crossing surface
14including the necessary highway approaches thereto of any
15railroad across the highway or public road, or for the
16installation, construction, reconstruction, or maintenance of
17safety treatments to deter trespassing or a pedestrian walkway
18over or under a railroad right-of-way, as provided for in and
19in accordance with Section 18c-7401 of the Illinois Vehicle
20Code. The Commission may order up to $2,000,000 per year in
21Grade Crossing Protection Fund moneys for the improvement of
22grade crossing surfaces and up to $300,000 per year for the
23maintenance and renewal of 4-quadrant gate vehicle detection
24systems located at non-high speed rail grade crossings. In
25entering orders for projects for which payments from the Grade
26Crossing Protection Fund will be made, the Commission shall

 

 

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1account for expenditures authorized by the orders on a cash
2rather than an accrual basis. For purposes of this requirement
3an "accrual basis" assumes that the total cost of the project
4is expended in the fiscal year in which the order is entered,
5while a "cash basis" allocates the cost of the project among
6fiscal years as expenditures are actually made. To meet the
7requirements of this subsection, the Illinois Commerce
8Commission shall develop annual and 5-year project plans of
9rail crossing capital improvements that will be paid for with
10moneys from the Grade Crossing Protection Fund. The annual
11project plan shall identify projects for the succeeding fiscal
12year and the 5-year project plan shall identify projects for
13the 5 directly succeeding fiscal years. The Commission shall
14submit the annual and 5-year project plans for this Fund to the
15Governor, the President of the Senate, the Senate Minority
16Leader, the Speaker of the House of Representatives, and the
17Minority Leader of the House of Representatives on the first
18Wednesday in April of each year;
19    (d) of the amount remaining after allocations provided for
20in subsections (a), (a-1), (b), and (c), a sufficient amount
21shall be reserved to pay all of the following:
22        (1) the costs of the Department of Revenue in
23    administering this Act;
24        (2) the costs of the Department of Transportation in
25    performing its duties imposed by the Illinois Highway Code
26    for supervising the use of motor fuel tax funds

 

 

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1    apportioned to municipalities, counties and road
2    districts;
3        (3) refunds provided for in Section 13, refunds for
4    overpayment of decal fees paid under Section 13a.4 of this
5    Act, and refunds provided for under the terms of the
6    International Fuel Tax Agreement referenced in Section
7    14a;
8        (4) from October 1, 1985 until June 30, 1994, the
9    administration of the Vehicle Emissions Inspection Law,
10    which amount shall be certified monthly by the
11    Environmental Protection Agency to the State Comptroller
12    and shall promptly be transferred by the State Comptroller
13    and Treasurer from the Motor Fuel Tax Fund to the Vehicle
14    Inspection Fund, and for the period July 1, 1994 through
15    June 30, 2000, one-twelfth of $25,000,000 each month, for
16    the period July 1, 2000 through June 30, 2003, one-twelfth
17    of $30,000,000 each month, and $15,000,000 on July 1,
18    2003, and $15,000,000 on January 1, 2004, and $15,000,000
19    on each July 1 and October 1, or as soon thereafter as may
20    be practical, during the period July 1, 2004 through June
21    30, 2012, and $30,000,000 on June 1, 2013, or as soon
22    thereafter as may be practical, and $15,000,000 on July 1
23    and October 1, or as soon thereafter as may be practical,
24    during the period of July 1, 2013 through June 30, 2015,
25    for the administration of the Vehicle Emissions Inspection
26    Law of 2005, to be transferred by the State Comptroller

 

 

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1    and Treasurer from the Motor Fuel Tax Fund into the
2    Vehicle Inspection Fund;
3        (4.5) beginning on July 1, 2019, the costs of the
4    Environmental Protection Agency for the administration of
5    the Vehicle Emissions Inspection Law of 2005 shall be
6    paid, subject to appropriation, from the Motor Fuel Tax
7    Fund into the Vehicle Inspection Fund; beginning in 2019,
8    no later than December 31 of each year, or as soon
9    thereafter as practical, the State Comptroller shall
10    direct and the State Treasurer shall transfer from the
11    Vehicle Inspection Fund to the Motor Fuel Tax Fund any
12    balance remaining in the Vehicle Inspection Fund in excess
13    of $2,000,000;
14        (5) amounts ordered paid by the Court of Claims; and
15        (6) payment of motor fuel use taxes due to member
16    jurisdictions under the terms of the International Fuel
17    Tax Agreement. The Department shall certify these amounts
18    to the Comptroller by the 15th day of each month; the
19    Comptroller shall cause orders to be drawn for such
20    amounts, and the Treasurer shall administer those amounts
21    on or before the last day of each month;
22    (e) after allocations for the purposes set forth in
23subsections (a), (a-1), (b), (c), and (d), the remaining
24amount shall be apportioned as follows:
25        (1) Until January 1, 2000, 58.4%, and beginning
26    January 1, 2000, 45.6% shall be deposited as follows:

 

 

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1            (A) 37% into the State Construction Account Fund,
2        and
3            (B) 63% into the Road Fund, $1,250,000 of which
4        shall be reserved each month for the Department of
5        Transportation to be used in accordance with the
6        provisions of Sections 6-901 through 6-906 of the
7        Illinois Highway Code;
8        (2) Until January 1, 2000, 41.6%, and beginning
9    January 1, 2000, 54.4% shall be transferred to the
10    Department of Transportation to be distributed as follows:
11            (A) 49.10% to the municipalities of the State,
12            (B) 16.74% to the counties of the State having
13        1,000,000 or more inhabitants,
14            (C) 18.27% to the counties of the State having
15        less than 1,000,000 inhabitants,
16            (D) 15.89% to the road districts of the State.
17        If a township is dissolved under Article 24 of the
18    Township Code, McHenry County shall receive any moneys
19    that would have been distributed to the township under
20    this subparagraph, except that a municipality that assumes
21    the powers and responsibilities of a road district under
22    paragraph (6) of Section 24-35 of the Township Code shall
23    receive any moneys that would have been distributed to the
24    township in a percent equal to the area of the dissolved
25    road district or portion of the dissolved road district
26    over which the municipality assumed the powers and

 

 

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1    responsibilities compared to the total area of the
2    dissolved township. The moneys received under this
3    subparagraph shall be used in the geographic area of the
4    dissolved township. If a township is reconstituted as
5    provided under Section 24-45 of the Township Code, McHenry
6    County or a municipality shall no longer be distributed
7    moneys under this subparagraph.
8    As soon as may be after the first day of each month, the
9Department of Transportation shall allot to each municipality
10its share of the amount apportioned to the several
11municipalities which shall be in proportion to the population
12of such municipalities as determined by the last preceding
13municipal census if conducted by the Federal Government or
14Federal census. If territory is annexed to any municipality
15subsequent to the time of the last preceding census the
16corporate authorities of such municipality may cause a census
17to be taken of such annexed territory and the population so
18ascertained for such territory shall be added to the
19population of the municipality as determined by the last
20preceding census for the purpose of determining the allotment
21for that municipality. If the population of any municipality
22was not determined by the last Federal census preceding any
23apportionment, the apportionment to such municipality shall be
24in accordance with any census taken by such municipality. Any
25municipal census used in accordance with this Section shall be
26certified to the Department of Transportation by the clerk of

 

 

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1such municipality, and the accuracy thereof shall be subject
2to approval of the Department which may make such corrections
3as it ascertains to be necessary.
4    As soon as may be after the first day of each month, the
5Department of Transportation shall allot to each county its
6share of the amount apportioned to the several counties of the
7State as herein provided. Each allotment to the several
8counties having less than 1,000,000 inhabitants shall be in
9proportion to the amount of motor vehicle license fees
10received from the residents of such counties, respectively,
11during the preceding calendar year. The Secretary of State
12shall, on or before April 15 of each year, transmit to the
13Department of Transportation a full and complete report
14showing the amount of motor vehicle license fees received from
15the residents of each county, respectively, during the
16preceding calendar year. The Department of Transportation
17shall, each month, use for allotment purposes the last such
18report received from the Secretary of State.
19    As soon as may be after the first day of each month, the
20Department of Transportation shall allot to the several
21counties their share of the amount apportioned for the use of
22road districts. The allotment shall be apportioned among the
23several counties in the State in the proportion which the
24total mileage of township or district roads in the respective
25counties bears to the total mileage of all township and
26district roads in the State. Funds allotted to the respective

 

 

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1counties for the use of road districts therein shall be
2allocated to the several road districts in the county in the
3proportion which the total mileage of such township or
4district roads in the respective road districts bears to the
5total mileage of all such township or district roads in the
6county. After July 1 of any year prior to 2011, no allocation
7shall be made for any road district unless it levied a tax for
8road and bridge purposes in an amount which will require the
9extension of such tax against the taxable property in any such
10road district at a rate of not less than either .08% of the
11value thereof, based upon the assessment for the year
12immediately prior to the year in which such tax was levied and
13as equalized by the Department of Revenue or, in DuPage
14County, an amount equal to or greater than $12,000 per mile of
15road under the jurisdiction of the road district, whichever is
16less. Beginning July 1, 2011 and each July 1 thereafter, an
17allocation shall be made for any road district if it levied a
18tax for road and bridge purposes. In counties other than
19DuPage County, if the amount of the tax levy requires the
20extension of the tax against the taxable property in the road
21district at a rate that is less than 0.08% of the value
22thereof, based upon the assessment for the year immediately
23prior to the year in which the tax was levied and as equalized
24by the Department of Revenue, then the amount of the
25allocation for that road district shall be a percentage of the
26maximum allocation equal to the percentage obtained by

 

 

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1dividing the rate extended by the district by 0.08%. In DuPage
2County, if the amount of the tax levy requires the extension of
3the tax against the taxable property in the road district at a
4rate that is less than the lesser of (i) 0.08% of the value of
5the taxable property in the road district, based upon the
6assessment for the year immediately prior to the year in which
7such tax was levied and as equalized by the Department of
8Revenue, or (ii) a rate that will yield an amount equal to
9$12,000 per mile of road under the jurisdiction of the road
10district, then the amount of the allocation for the road
11district shall be a percentage of the maximum allocation equal
12to the percentage obtained by dividing the rate extended by
13the district by the lesser of (i) 0.08% or (ii) the rate that
14will yield an amount equal to $12,000 per mile of road under
15the jurisdiction of the road district.
16    Prior to 2011, if any road district has levied a special
17tax for road purposes pursuant to Sections 6-601, 6-602, and
186-603 of the Illinois Highway Code, and such tax was levied in
19an amount which would require extension at a rate of not less
20than .08% of the value of the taxable property thereof, as
21equalized or assessed by the Department of Revenue, or, in
22DuPage County, an amount equal to or greater than $12,000 per
23mile of road under the jurisdiction of the road district,
24whichever is less, such levy shall, however, be deemed a
25proper compliance with this Section and shall qualify such
26road district for an allotment under this Section. Beginning

 

 

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1in 2011 and thereafter, if any road district has levied a
2special tax for road purposes under Sections 6-601, 6-602, and
36-603 of the Illinois Highway Code, and the tax was levied in
4an amount that would require extension at a rate of not less
5than 0.08% of the value of the taxable property of that road
6district, as equalized or assessed by the Department of
7Revenue or, in DuPage County, an amount equal to or greater
8than $12,000 per mile of road under the jurisdiction of the
9road district, whichever is less, that levy shall be deemed a
10proper compliance with this Section and shall qualify such
11road district for a full, rather than proportionate, allotment
12under this Section. If the levy for the special tax is less
13than 0.08% of the value of the taxable property, or, in DuPage
14County if the levy for the special tax is less than the lesser
15of (i) 0.08% or (ii) $12,000 per mile of road under the
16jurisdiction of the road district, and if the levy for the
17special tax is more than any other levy for road and bridge
18purposes, then the levy for the special tax qualifies the road
19district for a proportionate, rather than full, allotment
20under this Section. If the levy for the special tax is equal to
21or less than any other levy for road and bridge purposes, then
22any allotment under this Section shall be determined by the
23other levy for road and bridge purposes.
24    Prior to 2011, if a township has transferred to the road
25and bridge fund money which, when added to the amount of any
26tax levy of the road district would be the equivalent of a tax

 

 

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1levy requiring extension at a rate of at least .08%, or, in
2DuPage County, an amount equal to or greater than $12,000 per
3mile of road under the jurisdiction of the road district,
4whichever is less, such transfer, together with any such tax
5levy, shall be deemed a proper compliance with this Section
6and shall qualify the road district for an allotment under
7this Section.
8    In counties in which a property tax extension limitation
9is imposed under the Property Tax Extension Limitation Law,
10road districts may retain their entitlement to a motor fuel
11tax allotment or, beginning in 2011, their entitlement to a
12full allotment if, at the time the property tax extension
13limitation was imposed, the road district was levying a road
14and bridge tax at a rate sufficient to entitle it to a motor
15fuel tax allotment and continues to levy the maximum allowable
16amount after the imposition of the property tax extension
17limitation. Any road district may in all circumstances retain
18its entitlement to a motor fuel tax allotment or, beginning in
192011, its entitlement to a full allotment if it levied a road
20and bridge tax in an amount that will require the extension of
21the tax against the taxable property in the road district at a
22rate of not less than 0.08% of the assessed value of the
23property, based upon the assessment for the year immediately
24preceding the year in which the tax was levied and as equalized
25by the Department of Revenue or, in DuPage County, an amount
26equal to or greater than $12,000 per mile of road under the

 

 

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1jurisdiction of the road district, whichever is less.
2    As used in this Section, the term "road district" means
3any road district, including a county unit road district,
4provided for by the Illinois Highway Code; and the term
5"township or district road" means any road in the township and
6district road system as defined in the Illinois Highway Code.
7For the purposes of this Section, "township or district road"
8also includes such roads as are maintained by park districts,
9forest preserve districts and conservation districts. The
10Department of Transportation shall determine the mileage of
11all township and district roads for the purposes of making
12allotments and allocations of motor fuel tax funds for use in
13road districts.
14    Payment of motor fuel tax moneys to municipalities and
15counties shall be made as soon as possible after the allotment
16is made. The treasurer of the municipality or county may
17invest these funds until their use is required and the
18interest earned by these investments shall be limited to the
19same uses as the principal funds.
20(Source: P.A. 101-32, eff. 6-28-19; 101-230, eff. 8-9-19;
21101-493, eff. 8-23-19; 102-16, eff. 6-17-21; 102-558, eff.
228-20-21; 102-699, eff. 4-19-22.)
 
23    Section 10. The Illinois Municipal Code is amended by
24changing Section 8-11-2.3 as follows:
 

 

 

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1    (65 ILCS 5/8-11-2.3)
2    Sec. 8-11-2.3. Municipal Motor Fuel Tax Law.
3Notwithstanding any other provision of law, in addition to any
4other tax that may be imposed, a municipality in a county with
5a population of over 3,000,000 inhabitants may also impose, by
6ordinance, a tax upon all persons engaged in the municipality
7in the business of selling motor fuel, as defined in the Motor
8Fuel Tax Law, at retail for the operation of motor vehicles
9upon public highways or for the operation of recreational
10watercraft upon waterways. The tax may be imposed, in one cent
11increments, at a rate not to exceed $0.03 per gallon of motor
12fuel sold at retail within the municipality for the purpose of
13use or consumption and not for the purpose of resale. The tax
14may not be imposed under this Section on aviation fuel, as
15defined in Section 3 of the Retailers' Occupation Tax Act.
16    Persons subject to any tax imposed under the authority
17granted in this Section may reimburse themselves for their
18seller's tax liability hereunder by separately stating that
19tax as an additional charge, which charge may be stated in
20combination, in a single amount, with State tax which sellers
21are required to collect under the Use Tax Act, pursuant to such
22bracket schedules as the Department may prescribe.
23    A tax imposed pursuant to this Section, and all civil
24penalties that may be assessed as an incident thereof, shall
25be administered, collected, and enforced by the Department of
26Revenue in the same manner as the tax imposed under the

 

 

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1Retailers' Occupation Tax Act, as now or hereafter amended,
2insofar as may be practicable; except that in the event of a
3conflict with the provisions of this Section, this Section
4shall control. The Department of Revenue shall have full power
5to: administer and enforce this Section; collect all taxes and
6penalties due hereunder; dispose of taxes and penalties so
7collected in the manner hereinafter provided; and determine
8all rights to credit memoranda arising on account of the
9erroneous payment of tax or penalty hereunder.
10    Whenever the Department determines that a refund shall be
11made under this Section to a claimant instead of issuing a
12credit memorandum, the Department shall notify the State
13Comptroller, who shall cause the order to be drawn for the
14amount specified, and to the person named, in the notification
15from the Department. The refund shall be paid by the State
16Treasurer out of the Municipal Motor Fuel Tax Fund.
17    The Department shall immediately pay over to the State
18Treasurer, ex officio, as trustee, all taxes and penalties
19collected under this Section. Those taxes and penalties shall
20be deposited into the Municipal Motor Fuel Tax Fund, a trust
21fund created in the State treasury. Moneys in the Municipal
22Motor Fuel Tax Fund shall be used to make payments to
23municipalities and for the payment of refunds under this
24Section.
25    On or before the 25th day of each calendar month, the
26Department shall prepare and certify to the State Comptroller

 

 

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1the disbursement of stated sums of money to named
2municipalities for which taxpayers have paid taxes or
3penalties hereunder to the Department during the second
4preceding calendar month. The amount to be paid to each
5municipality shall be the amount (not including credit
6memoranda) collected under this Section from retailers within
7the municipality during the second preceding calendar month by
8the Department, plus an amount the Department determines is
9necessary to offset amounts that were erroneously paid to a
10different municipality, and not including an amount equal to
11the amount of refunds made during the second preceding
12calendar month by the Department on behalf of the
13municipality, and not including any amount that the Department
14determines is necessary to offset any amounts that were
15payable to a different municipality but were erroneously paid
16to the municipality, less 1.5% of the remainder, which the
17Department shall transfer into the Tax Compliance and
18Administration Fund. The Department, at the time of each
19monthly disbursement, shall prepare and certify to the State
20Comptroller the amount to be transferred into the Tax
21Compliance and Administration Fund under this Section. Within
2210 days after receipt by the Comptroller of the disbursement
23certification to the municipalities and the Tax Compliance and
24Administration Fund provided for in this Section to be given
25to the Comptroller by the Department, the Comptroller shall
26cause the orders to be drawn for the respective amounts in

 

 

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1accordance with the directions contained in the certification.
2    Nothing in this Section shall be construed to authorize a
3municipality to impose a tax upon the privilege of engaging in
4any business which under the Constitution of the United States
5may not be made the subject of taxation by this State.
6    An ordinance or resolution imposing or discontinuing the
7tax under this Section or effecting a change in the rate
8thereof shall either: (i) be adopted and a certified copy
9thereof filed with the Department on or before the first day of
10April, whereupon the Department shall proceed to administer
11and enforce this Section as of the first day of July next
12following the adoption and filing; or (ii) be adopted and a
13certified copy thereof filed with the Department on or before
14the first day of October, whereupon the Department shall
15proceed to administer and enforce this Section as of the first
16day of January next following the adoption and filing.
17    An ordinance adopted in accordance with the provisions of
18this Section in effect before the effective date of this
19amendatory Act of the 101st General Assembly shall be deemed
20to impose the tax in accordance with the provisions of this
21Section as amended by this amendatory Act of the 101st General
22Assembly and shall be administered by the Department of
23Revenue in accordance with the provisions of this Section as
24amended by this amendatory Act of the 101st General Assembly;
25provided that, on or before October 1, 2020, the municipality
26adopts and files a certified copy of a superseding ordinance

 

 

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1that imposes the tax in accordance with the provisions of this
2Section as amended by this amendatory Act of the 101st General
3Assembly. If a superseding ordinance is not so adopted and
4filed, then the tax imposed in accordance with the provisions
5of this Section in effect before the effective date of this
6amendatory Act of the 101st General Assembly shall be
7discontinued on January 1, 2021.
8    This Section shall be known and may be cited as the
9Municipal Motor Fuel Tax Law.
10    No tax may be imposed under this Section on or after July
111, 2023. This is a denial and limitation under subsection (g)
12of Section 6 of Article VII of the Illinois Constitution of the
13power of a home rule municipality to impose a tax.
14(Source: P.A. 101-32, eff. 6-28-19; 101-604, eff. 12-13-19.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.