Illinois General Assembly - Full Text of HB2443
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Full Text of HB2443  102nd General Assembly

HB2443 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2443

 

Introduced 2/19/2021, by Rep. C.D. Davidsmeyer

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 505/1.30 new
35 ILCS 505/2  from Ch. 120, par. 418

    Amends the Motor Fuel Tax Law. Provides that, on and after July 1, 2021, marine fuel is exempt from the tax imposed under the Act. Provides that "marine fuel" means motor fuel specially formulated to be used in the propulsion of watercraft. Effective immediately.


LRB102 12879 HLH 18222 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2443LRB102 12879 HLH 18222 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 and by adding Section 1.30 as follows:
 
6    (35 ILCS 505/1.30 new)
7    Sec. 1.30. Marine fuel. "Marine fuel" means motor fuel
8specially formulated to be used in the propulsion of
9watercraft.
 
10    (35 ILCS 505/2)  (from Ch. 120, par. 418)
11    Sec. 2. A tax is imposed on the privilege of operating
12motor vehicles upon the public highways and recreational-type
13watercraft upon the waters of this State.
14    (a) Prior to August 1, 1989, the tax is imposed at the rate
15of 13 cents per gallon on all motor fuel used in motor vehicles
16operating on the public highways and recreational type
17watercraft operating upon the waters of this State. Beginning
18on August 1, 1989 and until January 1, 1990, the rate of the
19tax imposed in this paragraph shall be 16 cents per gallon.
20Beginning January 1, 1990 and until July 1, 2019, the rate of
21tax imposed in this paragraph, including the tax on compressed
22natural gas, shall be 19 cents per gallon. Beginning July 1,

 

 

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12019, the rate of tax imposed in this paragraph shall be 38
2cents per gallon and increased on July 1 of each subsequent
3year by an amount equal to the percentage increase, if any, in
4the Consumer Price Index for All Urban Consumers for all items
5published by the United States Department of Labor for the 12
6months ending in March of each year. The rate shall be rounded
7to the nearest one-tenth of one cent.
8    (b) Until July 1, 2019, the tax on the privilege of
9operating motor vehicles which use diesel fuel, liquefied
10natural gas, or propane shall be the rate according to
11paragraph (a) plus an additional 2 1/2 cents per gallon.
12Beginning July 1, 2019, the tax on the privilege of operating
13motor vehicles which use diesel fuel, liquefied natural gas,
14or propane shall be the rate according to subsection (a) plus
15an additional 7.5 cents per gallon. "Diesel fuel" is defined
16as any product intended for use or offered for sale as a fuel
17for engines in which the fuel is injected into the combustion
18chamber and ignited by pressure without electric spark.
19    (c) A tax is imposed upon the privilege of engaging in the
20business of selling motor fuel as a retailer or reseller on all
21motor fuel used in motor vehicles operating on the public
22highways and recreational type watercraft operating upon the
23waters of this State: (1) at the rate of 3 cents per gallon on
24motor fuel owned or possessed by such retailer or reseller at
2512:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
26per gallon on motor fuel owned or possessed by such retailer or

 

 

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1reseller at 12:01 A.M. on January 1, 1990.
2    Retailers and resellers who are subject to this additional
3tax shall be required to inventory such motor fuel and pay this
4additional tax in a manner prescribed by the Department of
5Revenue.
6    The tax imposed in this paragraph (c) shall be in addition
7to all other taxes imposed by the State of Illinois or any unit
8of local government in this State.
9    (d) Except as provided in Section 2a, the collection of a
10tax based on gallonage of gasoline used for the propulsion of
11any aircraft is prohibited on and after October 1, 1979, and
12the collection of a tax based on gallonage of special fuel used
13for the propulsion of any aircraft is prohibited on and after
14December 1, 2019.
15    (d-5) On and after July 1, 2021, marine fuel, as defined in
16Section 1.30, is exempt from the tax imposed under this Act.
17    (e) The collection of a tax, based on gallonage of all
18products commonly or commercially known or sold as 1-K
19kerosene, regardless of its classification or uses, is
20prohibited (i) on and after July 1, 1992 until December 31,
211999, except when the 1-K kerosene is either: (1) delivered
22into bulk storage facilities of a bulk user, or (2) delivered
23directly into the fuel supply tanks of motor vehicles and (ii)
24on and after January 1, 2000. Beginning on January 1, 2000, the
25collection of a tax, based on gallonage of all products
26commonly or commercially known or sold as 1-K kerosene,

 

 

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1regardless of its classification or uses, is prohibited except
2when the 1-K kerosene is delivered directly into a storage
3tank that is located at a facility that has withdrawal
4facilities that are readily accessible to and are capable of
5dispensing 1-K kerosene into the fuel supply tanks of motor
6vehicles. For purposes of this subsection (e), a facility is
7considered to have withdrawal facilities that are not "readily
8accessible to and capable of dispensing 1-K kerosene into the
9fuel supply tanks of motor vehicles" only if the 1-K kerosene
10is delivered from: (i) a dispenser hose that is short enough so
11that it will not reach the fuel supply tank of a motor vehicle
12or (ii) a dispenser that is enclosed by a fence or other
13physical barrier so that a vehicle cannot pull alongside the
14dispenser to permit fueling.
15    Any person who sells or uses 1-K kerosene for use in motor
16vehicles upon which the tax imposed by this Law has not been
17paid shall be liable for any tax due on the sales or use of 1-K
18kerosene.
19(Source: P.A. 100-9, eff. 7-1-17; 101-10, eff. 6-5-19; 101-32,
20eff. 6-28-19; 101-604, eff. 12-13-19.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.