Illinois General Assembly - Full Text of HB4695
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Full Text of HB4695  101st General Assembly




State of Illinois
2019 and 2020


Introduced 2/18/2020, by Rep. Will Guzzardi


55 ILCS 5/5-1035.1  from Ch. 34, par. 5-1035.1

    Amends the County Motor Fuel Tax Law in the Counties Code. Provides that any county (currently, DuPage, Kane, Lake, Will, and McHenry counties only) may impose a tax upon all persons engaged in the business of selling motor fuel. Provides that, in addition to other uses currently allowed by law, the proceeds from the tax shall be used for the purpose of maintaining and constructing essential transportation-related infrastructure.

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HB4695LRB101 14381 HLH 63267 b

1    AN ACT concerning local government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Counties Code is amended by changing Section
55-1035.1 as follows:
6    (55 ILCS 5/5-1035.1)  (from Ch. 34, par. 5-1035.1)
7    Sec. 5-1035.1. County Motor Fuel Tax Law.
8    (a) The county board of any county the counties of DuPage,
9Kane, Lake, Will, and McHenry may, by an ordinance or
10resolution adopted by an affirmative vote of a majority of the
11members elected or appointed to the county board, impose a tax
12upon all persons engaged in the county in the business of
13selling motor fuel, as now or hereafter defined in the Motor
14Fuel Tax Law, at retail for the operation of motor vehicles
15upon public highways or for the operation of recreational
16watercraft upon waterways. The collection of a tax under this
17Section based on gallonage of gasoline used for the propulsion
18of any aircraft is prohibited, and the collection of a tax
19based on gallonage of special fuel used for the propulsion of
20any aircraft is prohibited on and after December 1, 2019. The
21county Kane County may exempt diesel fuel from the tax imposed
22pursuant to this Section. The initial tax rate may not be less
23than 4 cents per gallon of motor fuel sold at retail within the



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1county for the purpose of use or consumption and not for the
2purpose of resale and may not exceed 8 cents per gallon of
3motor fuel sold at retail within the county for the purpose of
4use or consumption and not for the purpose of resale. The
5proceeds from the tax shall be used by the county solely for
6the purposes purpose of operating, constructing, and improving
7public highways and waterways, and acquiring real property and
8rights-of-way right-of-ways for public highways and waterways
9within the county imposing the tax, and maintaining and
10constructing essential transportation-related infrastructure.
11    (a-5) By June 1, 2020, and by June 1 of each year
12thereafter, the Department of Revenue shall determine an annual
13rate increase to take effect on July 1 of that calendar year
14and continue through June 30 of the next calendar year. Not
15later than June 1 of each year, the Department of Revenue shall
16publish on its website the rate that will take effect on July 1
17of that calendar year. The rate shall be equal to the product
18of the rate in effect multiplied by the transportation fee
19index factor determined under Section 2e of the Motor Fuel Tax
20Law. The rate shall be rounded to the nearest one-tenth of a
21one cent. Each new rate may not exceed the rate in effect on
22June 30 of the previous year plus one cent.
23    (b) A tax imposed pursuant to this Section, and all civil
24penalties that may be assessed as an incident thereof, shall be
25administered, collected, and enforced by the Illinois
26Department of Revenue in the same manner as the tax imposed



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1under the Retailers' Occupation Tax Act, as now or hereafter
2amended, insofar as may be practicable; except that in the
3event of a conflict with the provisions of this Section, this
4Section shall control. The Department of Revenue shall have
5full power: to administer and enforce this Section; to collect
6all taxes and penalties due hereunder; to dispose of taxes and
7penalties so collected in the manner hereinafter provided; and
8to determine all rights to credit memoranda arising on account
9of the erroneous payment of tax or penalty hereunder.
10    (c) Whenever the Department determines that a refund shall
11be made 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 County Option Motor Fuel Tax Fund.
17    (d) The Department shall forthwith pay over to the State
18Treasurer, ex officio ex-officio, as trustee, all taxes and
19penalties collected hereunder, which shall be deposited into
20the County Option Motor Fuel Tax Fund, a special fund in the
21State Treasury which is hereby created. On or before the 25th
22day of each calendar month, the Department shall prepare and
23certify to the State Comptroller the disbursement of stated
24sums of money to named counties for which taxpayers have paid
25taxes or penalties hereunder to the Department during the
26second preceding calendar month. The amount to be paid to each



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1county shall be the amount (not including credit memoranda)
2collected hereunder from retailers within the county during the
3second preceding calendar month by the Department, but not
4including an amount equal to the amount of refunds made during
5the second preceding calendar month by the Department on behalf
6of the county; less 2% of the balance, which sum shall be
7retained by the State Treasurer to cover the costs incurred by
8the Department in administering and enforcing the provisions of
9this Section. The Department, at the time of each monthly
10disbursement to the counties, shall prepare and certify to the
11Comptroller the amount so retained by the State Treasurer,
12which shall be transferred into the Tax Compliance and
13Administration Fund.
14    (e) (f) Nothing in this Section shall be construed to
15authorize a county to impose a tax upon the privilege of
16engaging in any business which under the Constitution of the
17United States may not be made the subject of taxation by this
19    (f) (g) An ordinance or resolution imposing a tax hereunder
20or effecting a change in the rate thereof shall be effective on
21the first day of the second calendar month next following the
22month in which the ordinance or resolution is adopted and a
23certified copy thereof is filed with the Department of Revenue,
24whereupon the Department of Revenue shall proceed to administer
25and enforce this Section on behalf of the county as of the
26effective date of the ordinance or resolution. Upon a change in



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1rate of a tax levied hereunder, or upon the discontinuance of
2the tax, the county board of the county shall, on or not later
3than 5 days after the effective date of the ordinance or
4resolution discontinuing the tax or effecting a change in rate,
5transmit to the Department of Revenue a certified copy of the
6ordinance or resolution effecting the change or
8    (g) (h) This Section shall be known and may be cited as the
9County Motor Fuel Tax Law.
10(Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19;
11101-275, eff. 8-9-19; revised 9-10-19.)