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: |
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35 ILCS 505/2 | from Ch. 120, par. 418 |
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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.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Motor Fuel Tax Law is amended by changing | 5 | | Section 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 | 8 | | motor vehicles
upon the public highways and recreational-type | 9 | | watercraft upon the waters
of this State.
| 10 | | (a) Prior to August 1, 1989, the tax is imposed at the rate | 11 | | of 13 cents
per gallon on all motor fuel used in motor vehicles | 12 | | operating on the public
highways and recreational type | 13 | | watercraft operating upon the waters of this
State. Beginning | 14 | | on August 1, 1989 and until January 1, 1990, the rate of the
| 15 | | tax imposed in this paragraph shall be 16 cents per gallon. | 16 | | Beginning January
1, 1990 and until July 1, 2019, the rate of | 17 | | tax imposed in this paragraph, including the tax on compressed | 18 | | natural gas, shall be 19 cents per
gallon. Beginning July 1, | 19 | | 2019 and until July 1, 2022 , the rate of tax imposed in this | 20 | | paragraph shall be 38 cents per gallon and increased on July 1 | 21 | | of each subsequent year by an amount equal to the percentage | 22 | | increase, if any, in the Consumer Price Index for All Urban | 23 | | Consumers for all items published by the United States |
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| 1 | | Department of Labor for the 12 months ending in March of each | 2 | | year. Beginning on July 1, 2022, the rate of tax imposed in | 3 | | this paragraph, including the tax on compressed natural gas, | 4 | | shall be 19 cents per
gallon; that rate shall not be subject to | 5 | | the increase in the Consumer Price Index for All Urban | 6 | | Consumers for all items published by the United States | 7 | | Department of Labor. The rate shall be rounded to the nearest | 8 | | one-tenth of one cent.
| 9 | | (b) Until July 1, 2019, the tax on the privilege of | 10 | | operating motor vehicles which use diesel
fuel, liquefied | 11 | | natural gas, or propane shall be the rate according to | 12 | | paragraph (a) plus an additional 2 1/2
cents per gallon. | 13 | | Beginning July 1, 2019 and until July 1, 2022 , the tax on the | 14 | | privilege of operating motor vehicles which use diesel fuel, | 15 | | liquefied natural gas, or propane shall be the rate according | 16 | | to subsection (a) plus an additional 7.5 cents per gallon. | 17 | | Beginning on July 1, 2022, the tax on the privilege of | 18 | | operating motor vehicles which use diesel
fuel, liquefied | 19 | | natural gas, or propane shall be the rate according to | 20 | | paragraph (a) plus an additional 2 1/2
cents per gallon. | 21 | | "Diesel fuel" is defined as any product
intended
for use or | 22 | | offered for sale as a fuel for engines in which the fuel is | 23 | | injected
into the combustion chamber and ignited by pressure | 24 | | without electric spark.
| 25 | | (c) A tax is imposed upon the privilege of engaging in the | 26 | | business of
selling motor fuel as a retailer or reseller on all |
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| 1 | | motor fuel used in motor
vehicles operating on the public | 2 | | highways and recreational type watercraft
operating upon the | 3 | | waters of this State: (1) at the rate of 3 cents per gallon
on | 4 | | motor fuel owned or possessed by such retailer or reseller at | 5 | | 12:01 a.m. on
August 1, 1989; and (2) at the rate of 3 cents | 6 | | per gallon on motor fuel owned
or possessed by such retailer or | 7 | | reseller at 12:01 A.M. on January 1, 1990.
| 8 | | Retailers and resellers who are subject to this additional | 9 | | tax shall be
required to inventory such motor fuel and pay this | 10 | | additional tax in a
manner prescribed by the Department of | 11 | | Revenue.
| 12 | | The tax imposed in this paragraph (c) shall be in addition | 13 | | to all other
taxes imposed by the State of Illinois or any unit | 14 | | of local government in this
State.
| 15 | | (d) Except as provided in Section 2a, the collection of a | 16 | | tax based on
gallonage of gasoline used for the propulsion of | 17 | | any aircraft is prohibited
on and after October 1, 1979, and | 18 | | the collection of a tax based on gallonage of special fuel used | 19 | | for the propulsion of any aircraft is prohibited on and after | 20 | | December 1, 2019.
| 21 | | (e) The collection of a tax, based on gallonage of all | 22 | | products commonly or
commercially known or sold as 1-K | 23 | | kerosene, regardless of its classification
or uses, is | 24 | | prohibited (i) on and after July 1, 1992 until December 31, | 25 | | 1999,
except when the 1-K kerosene is either: (1) delivered | 26 | | into bulk storage
facilities of a bulk user, or (2) delivered |
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| 1 | | directly into the fuel supply tanks
of motor vehicles and (ii) | 2 | | on and after January 1, 2000. Beginning on January
1, 2000, the | 3 | | collection of a tax, based on gallonage of all products | 4 | | commonly
or commercially known or sold as 1-K kerosene, | 5 | | regardless of its classification
or uses, is prohibited except | 6 | | when the 1-K kerosene is delivered directly into
a storage | 7 | | tank that is located at a facility that has withdrawal | 8 | | facilities
that are readily accessible to and are capable of | 9 | | dispensing 1-K kerosene into
the fuel supply tanks of motor | 10 | | vehicles. For purposes of this subsection (e), a facility is | 11 | | considered to have withdrawal facilities that are not "readily | 12 | | accessible to and capable of dispensing 1-K kerosene into the | 13 | | fuel supply tanks of motor vehicles" only if the 1-K kerosene | 14 | | is delivered from: (i) a dispenser hose that is short enough so | 15 | | that it will not reach the fuel supply tank of a motor vehicle | 16 | | or (ii) a dispenser that is enclosed by a fence or other | 17 | | physical barrier so that a vehicle cannot pull alongside the | 18 | | dispenser to permit fueling.
| 19 | | Any person who sells or uses 1-K kerosene for use in motor | 20 | | vehicles upon
which the tax imposed by this Law has not been | 21 | | paid shall be liable for any
tax due on the sales or use of 1-K | 22 | | kerosene.
| 23 | | (Source: P.A. 100-9, eff. 7-1-17; 101-10, eff. 6-5-19; 101-32, | 24 | | eff. 6-28-19; 101-604, eff. 12-13-19.)
| 25 | | Section 99. Effective date. This Act takes effect upon | 26 | | becoming law.
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