103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3393

 

Introduced 2/17/2023, by Rep. Joe C. Sosnowski

 

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

    Amends the Motor Fuel Tax Law. Provides that, from July 1, 2023 through July 1, 2025, the rate of tax for fuel other than diesel fuel, liquefied natural gas, or propane shall be 39.2 cents per gallon. Effective immediately.


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A BILL FOR

 

HB3393LRB103 27305 HLH 53676 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 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. From July 1, 2023 through July 1, 2025, the
8rate of tax imposed in this paragraph shall be 39.2 cents per
9gallon. On July 1, 2025, July 1, 2023, and on July 1 of each
10subsequent year, the rate of tax imposed in this paragraph
11shall be increased by an amount equal to the percentage
12increase, if any, in the Consumer Price Index for All Urban
13Consumers for all items published by the United States
14Department of Labor for the 12 months ending in March of the
15year in which the increase takes place. The rate shall be
16rounded to the nearest one-tenth of one cent.
17    (a-5) (Blank). Beginning on July 1, 2022 and through
18December 31, 2022, each retailer of motor fuel shall cause the
19following notice to be posted in a prominently visible place
20on each retail dispensing device that is used to dispense
21motor fuel in the State of Illinois: "As of July 1, 2022, the
22State of Illinois has suspended the inflation adjustment to
23the motor fuel tax through December 31, 2022. The price on this
24pump should reflect the suspension of the tax increase." The
25notice shall be printed in bold print on a sign that is no
26smaller than 4 inches by 8 inches. The sign shall be clearly

 

 

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1visible to customers. Any retailer who fails to post or
2maintain a required sign through December 31, 2022 is guilty
3of a petty offense for which the fine shall be $500 per day per
4each 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.