Illinois General Assembly - Full Text of HB5095
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Full Text of HB5095  102nd General Assembly

HB5095 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5095

 

Introduced 1/27/2022, by Rep. Martin J. Moylan

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 505/6  from Ch. 120, par. 422
35 ILCS 505/6a  from Ch. 120, par. 422a

    Amends the Motor Fuel Tax Law. In provisions allowing tax-free sales of dyed diesel fuel for non-highway purposes, provides that the sale must be made by the licensed distributor to the end user of the fuel who is not a licensed distributor (currently, someone who is not a licensed distributor). Effective immediately.


LRB102 23603 HLH 32785 b

 

 

A BILL FOR

 

HB5095LRB102 23603 HLH 32785 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
5Sections 6 and 6a as follows:
 
6    (35 ILCS 505/6)  (from Ch. 120, par. 422)
7    Sec. 6. Collection of tax; distributors. A distributor who
8sells or distributes any motor fuel, which he is required by
9Section 5 to report to the Department when filing a return,
10shall (except as hereinafter provided) collect at the time of
11such sale and distribution, the amount of tax imposed under
12this Act on all such motor fuel sold and distributed, and at
13the time of making a return, the distributor shall pay to the
14Department the amount so collected less a discount of 2%
15through June 30, 2003 and 1.75% thereafter which is allowed to
16reimburse the distributor for the expenses incurred in keeping
17records, preparing and filing returns, collecting and
18remitting the tax and supplying data to the Department on
19request, and shall also pay to the Department an amount equal
20to the amount that would be collectible as a tax in the event
21of a sale thereof on all such motor fuel used by said
22distributor during the period covered by the return. However,
23no payment shall be made based upon dyed diesel fuel used by

 

 

HB5095- 2 -LRB102 23603 HLH 32785 b

1the distributor for non-highway purposes. The discount shall
2only be applicable to the amount of tax payment which
3accompanies a return which is filed timely in accordance with
4Section 5 of this Act. In each subsequent sale of motor fuel on
5which the amount of tax imposed under this Act has been
6collected as provided in this Section, the amount so collected
7shall be added to the selling price, so that the amount of tax
8is paid ultimately by the user of the motor fuel. However, no
9collection or payment shall be made in the case of the sale or
10use of any motor fuel to the extent to which such sale or use
11of motor fuel may not, under the constitution and statutes of
12the United States, be made the subject of taxation by this
13State. A person whose license to act as a distributor of fuel
14has been revoked shall, at the time of making a return, also
15pay to the Department an amount equal to the amount that would
16be collectible as a tax in the event of a sale thereof on all
17motor fuel, which he is required by the second paragraph of
18Section 5 to report to the Department in making a return, and
19which he had on hand on the date on which the license was
20revoked, and with respect to which no tax had been previously
21paid under this Act.
22    A distributor may make tax free sales of motor fuel, with
23respect to which he is otherwise required to collect the tax,
24only as specified in the following items 1 through 7.
25        1. When the sale is made to a person holding a valid
26    unrevoked license as a distributor, by making a specific

 

 

HB5095- 3 -LRB102 23603 HLH 32785 b

1    notation thereof on invoices or sales slip covering each
2    sale.
3        2. When the sale is made with delivery to a purchaser
4    outside of this State.
5        3. When the sale is made to the Federal Government or
6    its instrumentalities.
7        4. When the sale is made to a municipal corporation
8    owning and operating a local transportation system for
9    public service in this State when an official certificate
10    of exemption is obtained in lieu of the tax.
11        5. When the sale is made to a privately owned public
12    utility owning and operating 2 axle vehicles designed and
13    used for transporting more than 7 passengers, which
14    vehicles are used as common carriers in general
15    transportation of passengers, are not devoted to any
16    specialized purpose and are operated entirely within the
17    territorial limits of a single municipality or of any
18    group of contiguous municipalities, or in a close radius
19    thereof, and the operations of which are subject to the
20    regulations of the Illinois Commerce Commission, when an
21    official certificate of exemption is obtained in lieu of
22    the tax.
23        6. When a sale of special fuel is made to a person
24    holding a valid, unrevoked license as a supplier, by
25    making a specific notation thereof on the invoice or sales
26    slip covering each such sale.

 

 

HB5095- 4 -LRB102 23603 HLH 32785 b

1        7. When a sale of dyed diesel fuel is made by the
2    licensed distributor to the end user of the fuel who is not
3    someone other than a licensed distributor or a licensed
4    supplier for non-highway purposes and the fuel is (i)
5    delivered from a vehicle designed for the specific purpose
6    of such sales and delivered directly into a stationary
7    bulk storage tank that displays the notice required by
8    Section 4f of this Act, (ii) delivered from a vehicle
9    designed for the specific purpose of such sales and
10    delivered directly into the fuel supply tanks of
11    non-highway vehicles that are not required to be
12    registered for highway use, or (iii) dispensed from a dyed
13    diesel fuel dispensing facility that has withdrawal
14    facilities that are not readily accessible to and are not
15    capable of dispensing dyed diesel fuel into the fuel
16    supply tank of a motor vehicle.
17        A specific notation is required on the invoice or
18    sales slip covering such sales, and any supporting
19    documentation that may be required by the Department must
20    be obtained by the distributor. The distributor shall
21    obtain and keep the supporting documentation in such form
22    as the Department may require by rule.
23        For purposes of this item 7, a dyed diesel fuel
24    dispensing facility is considered to have withdrawal
25    facilities that are "not readily accessible to and not
26    capable of dispensing dyed diesel fuel into the fuel

 

 

HB5095- 5 -LRB102 23603 HLH 32785 b

1    supply tank of a motor vehicle" only if the dyed diesel
2    fuel is delivered from: (i) a dispenser hose that is short
3    enough so that it will not reach the fuel supply tank of a
4    motor vehicle or (ii) a dispenser that is enclosed by a
5    fence or other physical barrier so that a vehicle cannot
6    pull alongside the dispenser to permit fueling.
7        8. (Blank).
8    All special fuel sold or used for non-highway purposes
9must have a dye added in accordance with Section 4d of this
10Law.
11    All suits or other proceedings brought for the purpose of
12recovering any taxes, interest or penalties due the State of
13Illinois under this Act may be maintained in the name of the
14Department.
15(Source: P.A. 96-1384, eff. 7-29-10.)
 
16    (35 ILCS 505/6a)  (from Ch. 120, par. 422a)
17    Sec. 6a. Collection of tax; suppliers. A supplier, other
18than a licensed distributor, who sells or distributes any
19special fuel, which he is required by Section 5a to report to
20the Department when filing a return, shall (except as
21hereinafter provided) collect at the time of such sale and
22distribution, the amount of tax imposed under this Act on all
23such special fuel sold and distributed, and at the time of
24making a return, the supplier shall pay to the Department the
25amount so collected less a discount of 2% through June 30, 2003

 

 

HB5095- 6 -LRB102 23603 HLH 32785 b

1and 1.75% thereafter which is allowed to reimburse the
2supplier for the expenses incurred in keeping records,
3preparing and filing returns, collecting and remitting the tax
4and supplying data to the Department on request, and shall
5also pay to the Department an amount equal to the amount that
6would be collectible as a tax in the event of a sale thereof on
7all such special fuel used by said supplier during the period
8covered by the return. However, no payment shall be made based
9upon dyed diesel fuel used by said supplier for non-highway
10purposes. The discount shall only be applicable to the amount
11of tax payment which accompanies a return which is filed
12timely in accordance with Section 5(a) of this Act. In each
13subsequent sale of special fuel on which the amount of tax
14imposed under this Act has been collected as provided in this
15Section, the amount so collected shall be added to the selling
16price, so that the amount of tax is paid ultimately by the user
17of the special fuel. However, no collection or payment shall
18be made in the case of the sale or use of any special fuel to
19the extent to which such sale or use of motor fuel may not,
20under the Constitution and statutes of the United States, be
21made the subject of taxation by this State.
22    A person whose license to act as supplier of special fuel
23has been revoked shall, at the time of making a return, also
24pay to the Department an amount equal to the amount that would
25be collectible as a tax in the event of a sale thereof on all
26special fuel, which he is required by the 1st paragraph of

 

 

HB5095- 7 -LRB102 23603 HLH 32785 b

1Section 5a to report to the Department in making a return.
2    A supplier may make tax-free sales of special fuel, with
3respect to which he is otherwise required to collect the tax,
4only as specified in the following items 1 through 7.
5        1. When the sale is made to the federal government or
6    its instrumentalities.
7        2. When the sale is made to a municipal corporation
8    owning and operating a local transportation system for
9    public service in this State when an official certificate
10    of exemption is obtained in lieu of the tax.
11        3. When the sale is made to a privately owned public
12    utility owning and operating 2 axle vehicles designed and
13    used for transporting more than 7 passengers, which
14    vehicles are used as common carriers in general
15    transportation of passengers, are not devoted to any
16    specialized purpose and are operated entirely within the
17    territorial limits of a single municipality or of any
18    group of contiguous municipalities, or in a close radius
19    thereof, and the operations of which are subject to the
20    regulations of the Illinois Commerce Commission, when an
21    official certificate of exemption is obtained in lieu of
22    the tax.
23        4. When a sale is made to a person holding a valid
24    unrevoked license as a supplier or a distributor by making
25    a specific notation thereof on invoice or sales slip
26    covering each such sale.

 

 

HB5095- 8 -LRB102 23603 HLH 32785 b

1        5. When a sale of dyed diesel fuel is made by the
2    licensed supplier to the end user of the fuel who is not
3    someone other than a licensed distributor or licensed
4    supplier for non-highway purposes and the fuel is (i)
5    delivered from a vehicle designed for the specific purpose
6    of such sales and delivered directly into a stationary
7    bulk storage tank that displays the notice required by
8    Section 4f of this Act, (ii) delivered from a vehicle
9    designed for the specific purpose of such sales and
10    delivered directly into the fuel supply tanks of
11    non-highway vehicles that are not required to be
12    registered for highway use, or (iii) dispensed from a dyed
13    diesel fuel dispensing facility that has withdrawal
14    facilities that are not readily accessible to and are not
15    capable of dispensing dyed diesel fuel into the fuel
16    supply tank of a motor vehicle.
17        A specific notation is required on the invoice or
18    sales slip covering such sales, and any supporting
19    documentation that may be required by the Department must
20    be obtained by the supplier. The supplier shall obtain and
21    keep the supporting documentation in such form as the
22    Department may require by rule.
23        For purposes of this item 5, a dyed diesel fuel
24    dispensing facility is considered to have withdrawal
25    facilities that are "not readily accessible to and not
26    capable of dispensing dyed diesel fuel into the fuel

 

 

HB5095- 9 -LRB102 23603 HLH 32785 b

1    supply tank of a motor vehicle" only if the dyed diesel
2    fuel is delivered from: (i) a dispenser hose that is short
3    enough so that it will not reach the fuel supply tank of a
4    motor vehicle or (ii) a dispenser that is enclosed by a
5    fence or other physical barrier so that a vehicle cannot
6    pull alongside the dispenser to permit fueling.
7        6. (Blank).
8        7. When a sale of special fuel is made to a person
9    where delivery is made outside of this State.
10    All special fuel sold or used for non-highway purposes
11must have a dye added in accordance with Section 4d of this
12Law.
13    All suits or other proceedings brought for the purpose of
14recovering any taxes, interest or penalties due the State of
15Illinois under this Act may be maintained in the name of the
16Department.
17(Source: P.A. 96-1384, eff. 7-29-10.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.