Illinois General Assembly - Full Text of HB4977
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of HB4977  102nd General Assembly

HB4977 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4977

 

Introduced 1/27/2022, by Rep. Chris Miller

 

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

    Amends the Motor Fuel Tax Law. Provides that, beginning on July 1, 2022, the rate of tax shall be 19 cents per gallon and shall not be subject to the increase in the Consumer Price Index (currently, 38 cents per gallon, increased each year by the percentage increase in the Consumer Price Index). Provides that the tax on the privilege of operating motor vehicles which use diesel fuel, liquefied natural gas, or propane shall be an additional 2 1/2 cents per gallon (currently, 7.5 cents per gallon). Effective immediately.


LRB102 24789 HLH 34033 b

 

 

A BILL FOR

 

HB4977LRB102 24789 HLH 34033 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, 2022, the rate of tax imposed in this
20paragraph shall be 38 cents per gallon and increased on July 1
21of each subsequent year by an amount equal to the percentage
22increase, if any, in the Consumer Price Index for All Urban
23Consumers for all items published by the United States

 

 

HB4977- 2 -LRB102 24789 HLH 34033 b

1Department of Labor for the 12 months ending in March of each
2year. Beginning on July 1, 2022, the rate of tax imposed in
3this paragraph, including the tax on compressed natural gas,
4shall be 19 cents per gallon; that rate shall not be subject to
5the increase in the Consumer Price Index for All Urban
6Consumers for all items published by the United States
7Department of Labor. The rate shall be rounded to the nearest
8one-tenth of one cent.
9    (b) Until July 1, 2019, the tax on the privilege of
10operating motor vehicles which use diesel fuel, liquefied
11natural gas, or propane shall be the rate according to
12paragraph (a) plus an additional 2 1/2 cents per gallon.
13Beginning July 1, 2019 and until July 1, 2022, the tax on the
14privilege of operating motor vehicles which use diesel fuel,
15liquefied natural gas, or propane shall be the rate according
16to subsection (a) plus an additional 7.5 cents per gallon.
17Beginning on July 1, 2022, the tax on the privilege of
18operating motor vehicles which use diesel fuel, liquefied
19natural gas, or propane shall be the rate according to
20paragraph (a) plus an additional 2 1/2 cents per gallon.
21"Diesel fuel" is defined as any product intended for use or
22offered for sale as a fuel for engines in which the fuel is
23injected into the combustion chamber and ignited by pressure
24without electric spark.
25    (c) A tax is imposed upon the privilege of engaging in the
26business of selling motor fuel as a retailer or reseller on all

 

 

HB4977- 3 -LRB102 24789 HLH 34033 b

1motor fuel used in motor vehicles operating on the public
2highways and recreational type watercraft operating upon the
3waters of this State: (1) at the rate of 3 cents per gallon on
4motor fuel owned or possessed by such retailer or reseller at
512:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
6per gallon on motor fuel owned or possessed by such retailer or
7reseller at 12:01 A.M. on January 1, 1990.
8    Retailers and resellers who are subject to this additional
9tax shall be required to inventory such motor fuel and pay this
10additional tax in a manner prescribed by the Department of
11Revenue.
12    The tax imposed in this paragraph (c) shall be in addition
13to all other taxes imposed by the State of Illinois or any unit
14of local government in this State.
15    (d) Except as provided in Section 2a, the collection of a
16tax based on gallonage of gasoline used for the propulsion of
17any aircraft is prohibited on and after October 1, 1979, and
18the collection of a tax based on gallonage of special fuel used
19for the propulsion of any aircraft is prohibited on and after
20December 1, 2019.
21    (e) The collection of a tax, based on gallonage of all
22products commonly or commercially known or sold as 1-K
23kerosene, regardless of its classification or uses, is
24prohibited (i) on and after July 1, 1992 until December 31,
251999, except when the 1-K kerosene is either: (1) delivered
26into bulk storage facilities of a bulk user, or (2) delivered

 

 

HB4977- 4 -LRB102 24789 HLH 34033 b

1directly into the fuel supply tanks of motor vehicles and (ii)
2on and after January 1, 2000. Beginning on January 1, 2000, the
3collection of a tax, based on gallonage of all products
4commonly or commercially known or sold as 1-K kerosene,
5regardless of its classification or uses, is prohibited except
6when the 1-K kerosene is delivered directly into a storage
7tank that is located at a facility that has withdrawal
8facilities that are readily accessible to and are capable of
9dispensing 1-K kerosene into the fuel supply tanks of motor
10vehicles. For purposes of this subsection (e), a facility is
11considered to have withdrawal facilities that are not "readily
12accessible to and capable of dispensing 1-K kerosene into the
13fuel supply tanks of motor vehicles" only if the 1-K kerosene
14is delivered from: (i) a dispenser hose that is short enough so
15that it will not reach the fuel supply tank of a motor vehicle
16or (ii) a dispenser that is enclosed by a fence or other
17physical barrier so that a vehicle cannot pull alongside the
18dispenser to permit fueling.
19    Any person who sells or uses 1-K kerosene for use in motor
20vehicles upon which the tax imposed by this Law has not been
21paid shall be liable for any tax due on the sales or use of 1-K
22kerosene.
23(Source: P.A. 100-9, eff. 7-1-17; 101-10, eff. 6-5-19; 101-32,
24eff. 6-28-19; 101-604, eff. 12-13-19.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.