HB0853sam001 93RD GENERAL ASSEMBLY

Sen. Donne E. Trotter

Filed: 5/19/2004

09300HB0853sam001 LRB093 05724 MKM 51181 a

AMENDMENT TO HOUSE BILL 853

AMENDMENT NO. ______. Amend House Bill 853 by replacing everything after the enacting clause with the following:

4		"Section 5. The Motor Fuel Tax Law is amended by changing
5		the title and Sections 2, 4e, 4f, 5, 5a, 6, 6a, 7, 8, 12, 12a,
6		13, 13a, 13a.1, 13a.2, 13a.3, 15, and 17 and by adding Sections
7		1.30 and 13.1 as follows:
8
9		(35 ILCS 505/Act title)
10		An Act in relation to a tax upon the use of motor fuel in
11		Illinois the privilege of operating motor vehicles upon the
12		public highways and waters, based upon the consumption of motor
13		fuel therein, and a tax upon the privilege of being a receiver
14		of fuel for sale or use.
15		(Source: L. 1929, p. 625. Title amended by L. 1963, p. 2599;
16		L.1963, p. 2599.)
17		(35 ILCS 505/1.30 new)
18		Sec. 1.30. Production agriculture. "Production
19		agriculture" means the raising or propagation of livestock,
20		crops for sale for human consumption, crops for livestock
21		consumption, and production seed stock grown for the
22		propagation of feed grains and the husbandry of animals, or for
23		the purposes of providing a food product, including husbandry

1		of blood stock as a main source of providing a food product.
2		"Production agriculture" also includes animal husbandry,
3		floriculture, aquaculture, horticulture, and viticulture.
4		(35 ILCS 505/2) (from Ch. 120, par. 418)
5		Sec. 2. Until July 1, 2004, a A tax is imposed on the
6		privilege of operating motor vehicles upon the public highways
7		and recreational-type watercraft upon the waters of this State.
8		Beginning on July 1, 2004, a tax is imposed on the privilege of
9		using motor fuel in 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 through June 30, 2004, the rate
17		of tax imposed in this paragraph shall be 19 cents per gallon.
18		Beginning on July 1, 2004, the tax is imposed at the rate of 19
19		cents per gallon on all motor fuel used in this State.
20		(b) Until July 1, 2004, the The tax on the privilege of
21		operating motor vehicles which use diesel fuel shall be the
22		rate according to paragraph (a) plus an additional 2 1/2 cents
23		per gallon. "Diesel fuel" is defined as any product intended
24		for use or offered for sale as a fuel for engines in which the
25		fuel is injected into the combustion chamber and ignited by
26		pressure without electric spark. Beginning on July 1, 2004, the
27		tax on the use of diesel fuel in this State shall be at the rate
28		according to subsection (a) plus an additional 2.5 cents per
29		gallon.
30		(c) A tax is imposed upon the privilege of engaging in the
31		business of selling motor fuel as a retailer or reseller on all
32		motor fuel used in motor vehicles operating on the public
33		highways and recreational type watercraft operating upon the

1		waters of this State: (1) at the rate of 3 cents per gallon on
2		motor fuel owned or possessed by such retailer or reseller at
3		12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents per
4		gallon on motor fuel owned or possessed by such retailer or
5		reseller at 12:01 A.M. on January 1, 1990.
6		Retailers and resellers who are subject to this additional
7		tax shall be required to inventory such motor fuel and pay this
8		additional tax in a manner prescribed by the Department of
9		Revenue.
10		The tax imposed in this paragraph (c) shall be in addition
11		to all other taxes imposed by the State of Illinois or any unit
12		of local government in this State.
13		(d) Except as provided in Section 2a, the collection of a
14		tax based on gallonage of gasoline used for the propulsion of
15		any aircraft is prohibited on and after October 1, 1979.
16		(e) The collection of a tax, based on gallonage of all
17		products commonly or commercially known or sold as 1-K
18		kerosene, regardless of its classification or uses, is
19		prohibited (i) on and after July 1, 1992 until December 31,
20		1999, except when the 1-K kerosene is either: (1) delivered
21		into bulk storage facilities of a bulk user, or (2) delivered
22		directly into the fuel supply tanks of motor vehicles and (ii)
23		on and after January 1, 2000. Beginning on January 1, 2000, the
24		collection of a tax, based on gallonage of all products
25		commonly or commercially known or sold as 1-K kerosene,
26		regardless of its classification or uses, is prohibited except
27		when the 1-K kerosene is delivered directly into a storage tank
28		that is located at a facility that has withdrawal facilities
29		that are readily accessible to and are capable of dispensing
30		1-K kerosene into the fuel supply tanks of motor vehicles.
31		Any person who sells or uses 1-K kerosene for use in motor
32		vehicles upon which the tax imposed by this Law has not been
33		paid shall be liable for any tax due on the sales or use of 1-K
34		kerosene.

1		(Source: P.A. 93-17, eff. 6-11-03.)
2		(35 ILCS 505/4e)
3		Sec. 4e. A legible and conspicuous notice stating "Dyed
4		Diesel Fuel, Non-highway Non-taxable Use Only, Penalty For
5		Unauthorized Taxable Use" must appear on all bills of lading
6		and invoices accompanying any sale of dyed diesel fuel.
7		(Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01.)
8		(35 ILCS 505/4f)
9		Sec. 4f. A legible and conspicuous notice stating "Dyed
10		Diesel Fuel, Non-highway Non-taxable Use Only" must appear on
11		all containers, storage tanks, or facilities used to store or
12		distribute dyed diesel fuel.
13		(Source: P.A. 91-173, eff. 1-1-00.)
14		(35 ILCS 505/5) (from Ch. 120, par. 421)
15		Sec. 5. Except as hereinafter provided, a person holding a
16		valid unrevoked license to act as a distributor of motor fuel
17		shall, between the 1st and 20th days of each calendar month,
18		make return to the Department, showing an itemized statement of
19		the number of invoiced gallons of motor fuel of the types
20		specified in this Section which were purchased, acquired or
21		received during the preceding calendar month; the amount of
22		such motor fuel produced, refined, compounded, manufactured,
23		blended, sold, distributed, and used by the licensed
24		distributor during the preceding calendar month; the amount of
25		such motor fuel lost or destroyed during the preceding calendar
26		month; the amount of such motor fuel on hand at the close of
27		business for such month; and such other reasonable information
28		as the Department may require. If a distributor's only
29		activities with respect to motor fuel are either: (1)
30		production of alcohol in quantities of less than 10,000 proof
31		gallons per year or (2) blending alcohol in quantities of less

1		than 10,000 proof gallons per year which such distributor has
2		produced, he shall file returns on an annual basis with the
3		return for a given year being due by January 20 of the
4		following year. Distributors whose total production of alcohol
5		(whether blended or not) exceeds 10,000 proof gallons per year,
6		based on production during the preceding (calendar) year or as
7		reasonably projected by the Department if one calendar year's
8		record of production cannot be established, shall file returns
9		between the 1st and 20th days of each calendar month as
10		hereinabove provided.
11		The types of motor fuel referred to in the preceding
12		paragraph are: (A) All products commonly or commercially known
13		or sold as gasoline (including casing-head and absorption or
14		natural gasoline), gasohol, motor benzol or motor benzene
15		regardless of their classification or uses; and (B) all
16		combustible gases which exist in a gaseous state at 60 degrees
17		Fahrenheit and at 14.7 pounds per square inch absolute
18		including, but not limited to, liquefied petroleum gases used
19		for highway purposes; and (C) special fuel. Until July 1, 2004
20		only Only those quantities of combustible gases (example (B)
21		above) which are used or sold by the distributor to be used to
22		propel motor vehicles on the public highways, or which are
23		delivered into a storage tank that is located at a facility
24		that has withdrawal facilities which are readily accessible to
25		and are capable of dispensing combustible gases into the fuel
26		supply tanks of motor vehicles, shall be subject to return. For
27		the purposes of this Act, liquefied petroleum gases shall mean
28		and include any material having a vapor pressure not exceeding
29		that allowed for commercial propane composed predominantly of
30		the following hydrocarbons, either by themselves or as
31		mixtures: Propane, Propylene, Butane (normal butane or
32		iso-butane) and Butylene (including isomers).
33		Beginning on July 1, 2004, in case of a sale of dyed diesel
34		fuel made to a person engaged in production agriculture for use

1		in production agriculture for any purpose other than operating
2		a motor vehicle upon the public highways or recreational-type
3		watercraft upon the waters of this State, the distributor shall
4		show in his or her return the amount of invoiced gallons of
5		dyed diesel fuel sold and the name and address of the purchaser
6		in addition to any other information the Department may
7		require.
8		Beginning on July 1, 2004, in case of a sale of dyed home
9		heating oil, liquefied petroleum gas, or any other combustible
10		gas for use exclusively for residential heating purposes, the
11		distributor shall show in his or her return the amount of
12		invoiced gallons sold and the name and address of the purchaser
13		in addition to any other information the Department may
14		require.
15		In case of a sale of special fuel to someone other than a
16		licensed distributor, or a licensed supplier, for a use other
17		than in motor vehicles, the distributor shall show in his
18		return the amount of invoiced gallons sold and the name and
19		address of the purchaser in addition to any other information
20		the Department may require.
21		All special fuel sold or used for non-highway purposes must
22		have a dye added in accordance with Section 4d of this Law.
23		In case of a tax-free sale, as provided in Section 6, of
24		motor fuel which the distributor is required by this Section to
25		include in his return to the Department, the distributor in his
26		return shall show: (1) If the sale is made to another licensed
27		distributor the amount sold and the name, address and license
28		number of the purchasing distributor; (2) if the sale is made
29		to a person where delivery is made outside of this State the
30		name and address of such purchaser and the point of delivery
31		together with the date and amount delivered; (3) if the sale is
32		made to the Federal Government or its instrumentalities the
33		amount sold; (4) if the sale is made to a municipal corporation
34		owning and operating a local transportation system for public

1		service in this State the name and address of such purchaser,
2		and the amount sold, as evidenced by official forms of
3		exemption certificates properly executed and furnished by such
4		purchaser; (5) if the sale is made to a privately owned public
5		utility owning and operating 2-axle vehicles designed and used
6		for transporting more than 7 passengers, which vehicles are
7		used as common carriers in general transportation of
8		passengers, are not devoted to any specialized purpose and are
9		operated entirely within the territorial limits of a single
10		municipality or of any group of contiguous municipalities or in
11		a close radius thereof, and the operations of which are subject
12		to the regulations of the Illinois Commerce Commission, then
13		the name and address of such purchaser and the amount sold as
14		evidenced by official forms of exemption certificates properly
15		executed and furnished by the purchaser; (6) if the product
16		sold is special fuel and if the sale is made to a licensed
17		supplier under conditions which qualify the sale for tax
18		exemption under Section 6 of this Act, the amount sold and the
19		name, address and license number of the purchaser; and (7) if a
20		sale of special fuel is made before July 1, 2004 to someone
21		other than a licensed distributor, or a licensed supplier, for
22		a use other than in motor vehicles, by making a specific
23		notation thereof on the invoice or sales slip covering such
24		sales and obtaining such supporting documentation as may be
25		required by the Department; (8) beginning on July 1, 2004, if a
26		sale of dyed diesel fuel is made to a person engaged in
27		production agriculture for use in production agriculture for
28		any purpose other than operating a motor vehicle upon the
29		public highways or recreational-type watercraft upon the
30		waters of this State, by making a specific notation thereof on
31		the invoice or sales slip covering that sale and obtaining any
32		supporting documentation as may be required by the Department;
33		and (9) beginning on July 1, 2004, if a sale of dyed home
34		heating oil, liquefied petroleum gas, or any other combustible

1		gas for use exclusively for residential heating purposes is
2		made, by making specific notation thereof on the invoice or
3		sales slip covering that sale and obtaining any supporting
4		documentation as may be required by the Department.
5		All special fuel sold or used for non-highway purposes must
6		have a dye added in accordance with Section 4d of this Law.
7		A person whose license to act as a distributor of motor
8		fuel has been revoked shall make a return to the Department
9		covering the period from the date of the last return to the
10		date of the revocation of the license, which return shall be
11		delivered to the Department not later than 10 days from the
12		date of the revocation or termination of the license of such
13		distributor; the return shall in all other respects be subject
14		to the same provisions and conditions as returns by
15		distributors licensed under the provisions of this Act.
16		The records, waybills and supporting documents kept by
17		railroads and other common carriers in the regular course of
18		business shall be prima facie evidence of the contents and
19		receipt of cars or tanks covered by those records, waybills or
20		supporting documents.
21		If the Department has reason to believe and does believe
22		that the amount shown on the return as purchased, acquired,
23		received, sold, used, lost or destroyed is incorrect, or that
24		an amount of motor fuel of the types required by the second
25		paragraph of this Section to be reported to the Department has
26		not been correctly reported the Department shall fix an amount
27		for such receipt, sales, use, loss or destruction according to
28		its best judgment and information, which amount so fixed by the
29		Department shall be prima facie correct. All returns shall be
30		made on forms prepared and furnished by the Department, and
31		shall contain such other information as the Department may
32		reasonably require. The return must be accompanied by
33		appropriate computer-generated magnetic media supporting
34		schedule data in the format required by the Department, unless,

1		as provided by rule, the Department grants an exception upon
2		petition of a taxpayer. All licensed distributors shall report
3		all losses of motor fuel sustained on account of fire, theft,
4		spillage, spoilage, leakage, or any other provable cause when
5		filing the return for the period during which the loss
6		occurred. The mere making of the report does not assure the
7		allowance of the loss as a reduction in tax liability. Losses
8		of motor fuel as the result of evaporation or shrinkage due to
9		temperature variations may not exceed 1% of the total gallons
10		in storage at the beginning of the month, plus the receipts of
11		gallonage during the month, minus the gallonage remaining in
12		storage at the end of the month. Any loss reported that is in
13		excess of 1% shall be subject to the tax imposed by Section 2
14		of this Law. On and after July 1, 2001, for each 6-month period
15		January through June, net losses of motor fuel (for each
16		category of motor fuel that is required to be reported on a
17		return) as the result of evaporation or shrinkage due to
18		temperature variations may not exceed 1% of the total gallons
19		in storage at the beginning of each January, plus the receipts
20		of gallonage each January through June, minus the gallonage
21		remaining in storage at the end of each June. On and after July
22		1, 2001, for each 6-month period July through December, net
23		losses of motor fuel (for each category of motor fuel that is
24		required to be reported on a return) as the result of
25		evaporation or shrinkage due to temperature variations may not
26		exceed 1% of the total gallons in storage at the beginning of
27		each July, plus the receipts of gallonage each July through
28		December, minus the gallonage remaining in storage at the end
29		of each December. Any net loss reported that is in excess of
30		this amount shall be subject to the tax imposed by Section 2 of
31		this Law. For purposes of this Section, "net loss" means the
32		number of gallons gained through temperature variations minus
33		the number of gallons lost through temperature variations or
34		evaporation for each of the respective 6-month periods.

1		(Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01.)
2		(35 ILCS 505/5a) (from Ch. 120, par. 421a)
3		Sec. 5a. A person holding a valid unrevoked license to act
4		as a supplier of special fuel shall, between the 1st and 20th
5		days of each calendar month, make return to the Department
6		showing an itemized statement of the number of invoiced gallons
7		of special fuel acquired, received, purchased, sold, or used
8		during the preceding calendar month; the amount of special fuel
9		sold, distributed, and used by the licensed supplier during the
10		preceding calendar month; the amount of special fuel lost or
11		destroyed during the preceding calendar month; the amount of
12		special fuel on hand at the close of business for the preceding
13		calendar month; and such other reasonable information as the
14		Department may require.
15		A person whose license to act as a supplier of special fuel
16		has been revoked shall make a return to the Department covering
17		the period from the date of the last return to the date of the
18		revocation of the license, which return shall be delivered to
19		the Department not later than 10 days from the date of the
20		revocation or termination of the license of such supplier. The
21		return shall in all other respects be subject to the same
22		provisions and conditions as returns by suppliers licensed
23		under this Act.
24		The records, waybills and supporting documents kept by
25		railroads and other common carriers in the regular course of
26		business shall be prima facie evidence of the contents and
27		receipt of cars or tanks covered by those records, waybills or
28		supporting documents.
29		If the Department has reason to believe and does believe
30		that the amount shown on the return as purchased, acquired,
31		received, sold, used, or lost is incorrect, or that an amount
32		of special fuel of the type required by the 1st paragraph of
33		this Section to be reported to the Department by suppliers has

1		not been correctly reported as a purchase, receipt, sale, use,
2		or loss the Department shall fix an amount for such purchase,
3		receipt, sale, use, or loss according to its best judgment and
4		information, which amount so fixed by the Department shall be
5		prima facie correct. All licensed suppliers shall report all
6		losses of special fuel sustained on account of fire, theft,
7		spillage, spoilage, leakage, or any other provable cause when
8		filing the return for the period during which the loss
9		occurred. The mere making of the report does not assure the
10		allowance of the loss as a reduction in tax liability. Losses
11		of special fuel as the result of evaporation or shrinkage due
12		to temperature variations may not exceed 1% of the total
13		gallons in storage at the beginning of the month, plus the
14		receipts of gallonage during the month, minus the gallonage
15		remaining in storage at the end of the month.
16		Any loss reported that is in excess of 1% shall be subject
17		to the tax imposed by Section 2 of this Law. On and after July
18		1, 2001, for each 6-month period January through June, net
19		losses of special fuel (for each category of special fuel that
20		is required to be reported on a return) as the result of
21		evaporation or shrinkage due to temperature variations may not
22		exceed 1% of the total gallons in storage at the beginning of
23		each January, plus the receipts of gallonage each January
24		through June, minus the gallonage remaining in storage at the
25		end of each June. On and after July 1, 2001, for each 6-month
26		period July through December, net losses of special fuel (for
27		each category of special fuel that is required to be reported
28		on a return) as the result of evaporation or shrinkage due to
29		temperature variations may not exceed 1% of the total gallons
30		in storage at the beginning of each July, plus the receipts of
31		gallonage each July through December, minus the gallonage
32		remaining in storage at the end of each December. Any net loss
33		reported that is in excess of this amount shall be subject to
34		the tax imposed by Section 2 of this Law. For purposes of this

1		Section, "net loss" means the number of gallons gained through
2		temperature variations minus the number of gallons lost through
3		temperature variations or evaporation for each of the
4		respective 6-month periods.
5		Beginning on July 1, 2004, in case of a sale of dyed diesel
6		fuel to a person engaged in production agriculture for use in
7		production agriculture for any purpose other than operating a
8		motor vehicle upon the public highways or recreational-type
9		watercraft upon the waters of this State, the supplier shall
10		show in his or her return the amount of invoiced gallons of
11		dyed diesel fuel sold and the name and address of the purchaser
12		in addition to any other information the Department may
13		require.
14		Beginning on July 1, 2004, in case of a sale of dyed home
15		heating oil, liquefied petroleum gas, or any other combustible
16		gas for use exclusively for residential heating purposes, the
17		supplier shall show in his or her return the amount of invoiced
18		gallons sold and the name and address of the purchaser in
19		addition to any other information the Department may require.
20		In case of a sale of special fuel to someone other than a
21		licensed distributor or licensed supplier for a use other than
22		in motor vehicles, the supplier shall show in his return the
23		amount of invoiced gallons sold and the name and address of the
24		purchaser in addition to any other information the Department
25		may require.
26		All special fuel sold or used for non-highway purposes must
27		have a dye added in accordance with Section 4d of this Law.
28		All returns shall be made on forms prepared and furnished
29		by the Department and shall contain such other information as
30		the Department may reasonably require. The return must be
31		accompanied by appropriate computer-generated magnetic media
32		supporting schedule data in the format required by the
33		Department, unless, as provided by rule, the Department grants
34		an exception upon petition of a taxpayer.

1		In case of a tax-free sale, as provided in Section 6a, of
2		special fuel which the supplier is required by this Section to
3		include in his return to the Department, the supplier in his
4		return shall show: (1) If the sale of special fuel is made to
5		the Federal Government or its instrumentalities; (2) if the
6		sale of special fuel is made to a municipal corporation owning
7		and operating a local transportation system for public service
8		in this State, the name and address of such purchaser and the
9		amount sold, as evidenced by official forms of exemption
10		certificates properly executed and furnished by such
11		purchaser; (3) if the sale of special fuel is made to a
12		privately owned public utility owning and operating 2-axle
13		vehicles designed and used for transporting more than 7
14		passengers, which vehicles are used as common carriers in
15		general 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 group of
18		contiguous municipalities or in a close radius thereof, and the
19		operations of which are subject to the regulations of the
20		Illinois Commerce Commission, then the name and address of such
21		purchaser and the amount sold, as evidenced by official forms
22		of exemption certificates properly executed and furnished by
23		such purchaser; (4) if the product sold is special fuel and if
24		the sale is made to a licensed supplier or to a licensed
25		distributor under conditions which qualify the sale for tax
26		exemption under Section 6a of this Act, the amount sold and the
27		name, address and license number of such purchaser; (5) if a
28		sale of special fuel is made to a person where delivery is made
29		outside of this State, the name and address of such purchaser
30		and the point of delivery together with the date and amount of
31		invoiced gallons delivered; and (6) if a sale of special fuel
32		is made before July 1, 2004 to someone other than a licensed
33		distributor or a licensed supplier, for a use other than in
34		motor vehicles, by making a specific notation thereof on the

1		invoice or sales slip covering that sale and obtaining such
2		supporting documentation as may be required by the Department;
3		(7) beginning on July 1, 2004, if a sale of dyed diesel fuel is
4		made to a person engaged in production agriculture for use in
5		production agriculture for any purpose other than operating a
6		motor vehicle upon the public highways or recreational-type
7		watercraft on the waters of this State, by making a specific
8		notation thereof on the invoice or sales slip covering that
9		sale and obtaining any supporting documentation as may be
10		required by the Department; and (8) beginning on July 1, 2004,
11		if a sale of dyed home heating oil, liquefied petroleum gas, or
12		any other combustible gas for use exclusively for residential
13		heating purposes is made, by making specific notation thereof
14		on the invoice or sales slip covering that sale and obtaining
15		any supporting documentation as may be required by the
16		Department.
17		All special fuel sold or used for non-highway purposes must
18		have a dye added in accordance with Section 4d of this Law.
19		(Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01.)
20		(35 ILCS 505/6) (from Ch. 120, par. 422)
21		Sec. 6. Collection of tax; distributors. A distributor who
22		sells or distributes any motor fuel, which he is required by
23		Section 5 to report to the Department when filing a return,
24		shall (except as hereinafter provided) collect at the time of
25		such sale and distribution, the amount of tax imposed under
26		this Act on all such motor fuel sold and distributed, and at
27		the time of making a return, the distributor shall pay to the
28		Department the amount so collected less a discount of 2%
29		through June 30, 2003 and 1.75% thereafter which is allowed to
30		reimburse the distributor for the expenses incurred in keeping
31		records, preparing and filing returns, collecting and
32		remitting the tax and supplying data to the Department on
33		request, and shall also pay to the Department an amount equal

1		to the amount that would be collectible as a tax in the event
2		of a sale thereof on all such motor fuel used by said
3		distributor during the period covered by the return. However,
4		before July 1, 2004, no payment shall be made based upon dyed
5		diesel fuel used by the distributor for non-highway purposes.
6		The discount shall only be applicable to the amount of tax
7		payment which accompanies a return which is filed timely in
8		accordance with Section 5 of this Act. In each subsequent sale
9		of motor fuel on which the amount of tax imposed under this Act
10		has been collected as provided in this Section, the amount so
11		collected shall be added to the selling price, so that the
12		amount of tax is paid ultimately by the user of the motor fuel.
13		However, no collection or payment shall be made in the case of
14		the sale or use of any motor fuel to the extent to which such
15		sale or use of motor fuel may not, under the constitution and
16		statutes of the United States, be made the subject of taxation
17		by this State. A person whose license to act as a distributor
18		of fuel has been revoked shall, at the time of making a return,
19		also pay to the Department an amount equal to the amount that
20		would be collectible as a tax in the event of a sale thereof on
21		all motor fuel, which he is required by the second paragraph of
22		Section 5 to report to the Department in making a return, and
23		which he had on hand on the date on which the license was
24		revoked, and with respect to which no tax had been previously
25		paid under this Act.
26		A distributor may make tax free sales of motor fuel, with
27		respect to which he is otherwise required to collect the tax,
28		when the motor fuel is delivered from a dispensing facility
29		that has withdrawal facilities capable of dispensing motor fuel
30		into the fuel supply tanks of motor vehicles only as specified
31		in the following items 3, 4, and 5. A distributor may make
32		tax-free sales of motor fuel, with respect to which he is
33		otherwise required to collect the tax, when the motor fuel is
34		delivered from other facilities only as specified in the

1		following items 1 through 10 7.
2		1. When the sale is made to a person holding a valid
3		unrevoked license as a distributor, by making a specific
4		notation thereof on invoices or sales slip covering each
5		sale.
6		2. When the sale is made with delivery to a purchaser
7		outside of this State.
8		3. When the sale is made to the Federal Government or
9		its instrumentalities.
10		4. When the sale is made to a municipal corporation
11		owning and operating a local transportation system for
12		public service in this State when an official certificate
13		of exemption is obtained in lieu of the tax.
14		5. When the sale is made to a privately owned public
15		utility owning and operating 2 axle vehicles designed and
16		used for transporting more than 7 passengers, which
17		vehicles are used as common carriers in general
18		transportation of passengers, are not devoted to any
19		specialized purpose and are operated entirely within the
20		territorial limits of a single municipality or of any group
21		of contiguous municipalities, or in a close radius thereof,
22		and the operations of which are subject to the regulations
23		of the Illinois Commerce Commission, when an official
24		certificate of exemption is obtained in lieu of the tax.
25		6. When a sale of special fuel is made to a person
26		holding a valid, unrevoked license as a supplier, by making
27		a specific notation thereof on the invoice or sales slip
28		covering each such sale.
29		7. When a sale of special fuel is made before July 1,
30		2004 to someone other than a licensed distributor or a
31		licensed supplier for a use other than in motor vehicles,
32		by making a specific notation thereof on the invoice or
33		sales slip covering such sale and obtaining such supporting
34		documentation as may be required by the Department. The

1		distributor shall obtain and keep the supporting
2		documentation in such form as the Department may require by
3		rule.
4		8. (Blank).
5		9. Beginning on July 1, 2004, when a sale of dyed
6		diesel fuel is made to a person engaged in production
7		agriculture for use in production agriculture for any
8		purpose other than operating a motor vehicle upon the
9		public highways or recreational-type watercraft upon the
10		waters of this State, by making a specific notation thereof
11		on the invoice or sales slip covering that sale and
12		obtaining any supporting documentation as may be required
13		by the Department. The distributor shall obtain and keep
14		the supporting documentation in such form as the Department
15		may require by rule.
16		10. Beginning on July 1, 2004, when a sale of dyed home
17		heating oil, liquefied petroleum gas, or any other
18		combustible gas for use exclusively for residential
19		heating purposes is made, by making a specific notation
20		thereof on the invoice or sales slip covering that sale and
21		obtaining any supporting documentation as may be required
22		by the Department. The distributor shall obtain and keep
23		the supporting documentation in such form as the Department
24		may require by rule.
25		All special fuel sold or used for non-highway purposes must
26		have a dye added in accordance with Section 4d of this Law.
27		All suits or other proceedings brought for the purpose of
28		recovering any taxes, interest or penalties due the State of
29		Illinois under this Act may be maintained in the name of the
30		Department.
31		(Source: P.A. 93-32, eff. 6-20-03.)
32		(35 ILCS 505/6a) (from Ch. 120, par. 422a)
33		Sec. 6a. Collection of tax; suppliers. A supplier, other

1		than a licensed distributor, who sells or distributes any
2		special fuel, which he is required by Section 5a to report to
3		the Department when filing a return, shall (except as
4		hereinafter provided) collect at the time of such sale and
5		distribution, the amount of tax imposed under this Act on all
6		such special fuel sold and distributed, and at the time of
7		making a return, the supplier shall pay to the Department the
8		amount so collected less a discount of 2% through June 30, 2003
9		and 1.75% thereafter which is allowed to reimburse the supplier
10		for the expenses incurred in keeping records, preparing and
11		filing returns, collecting and remitting the tax and supplying
12		data to the Department on request, and shall also pay to the
13		Department an amount equal to the amount that would be
14		collectible as a tax in the event of a sale thereof on all such
15		special fuel used by said supplier during the period covered by
16		the return. However, before July 1, 2004, no payment shall be
17		made based upon dyed diesel fuel used by said supplier for
18		non-highway purposes. The discount shall only be applicable to
19		the amount of tax payment which accompanies a return which is
20		filed timely in accordance with Section 5(a) of this Act. In
21		each subsequent sale of special fuel on which the amount of tax
22		imposed under this Act has been collected as provided in this
23		Section, the amount so collected shall be added to the selling
24		price, so that the amount of tax is paid ultimately by the user
25		of the special fuel. However, no collection or payment shall be
26		made in the case of the sale or use of any special fuel to the
27		extent to which such sale or use of motor fuel may not, under
28		the Constitution and statutes of the United States, be made the
29		subject of taxation by this State.
30		A person whose license to act as supplier of special fuel
31		has been revoked shall, at the time of making a return, also
32		pay to the Department an amount equal to the amount that would
33		be collectible as a tax in the event of a sale thereof on all
34		special fuel, which he is required by the 1st paragraph of

1		Section 5a to report to the Department in making a return.
2		A supplier may make tax-free sales of special fuel, with
3		respect to which he is otherwise required to collect the tax,
4		when the motor fuel is delivered from a dispensing facility
5		that has withdrawal facilities capable of dispensing special
6		fuel into the fuel supply tanks of motor vehicles only as
7		specified in the following items 1, 2, and 3. A supplier may
8		make tax-free sales of special fuel, with respect to which he
9		is otherwise required to collect the tax, when the special fuel
10		is delivered from other facilities only as specified in the
11		following items 1 through 9 7.
12		1. When the sale is made to the federal government or
13		its instrumentalities.
14		2. When the sale is made to a municipal corporation
15		owning and operating a local transportation system for
16		public service in this State when an official certificate
17		of exemption is obtained in lieu of the tax.
18		3. When the sale is made to a privately owned public
19		utility owning and operating 2 axle vehicles designed and
20		used for transporting more than 7 passengers, which
21		vehicles are used as common carriers in general
22		transportation of passengers, are not devoted to any
23		specialized purpose and are operated entirely within the
24		territorial limits of a single municipality or of any group
25		of contiguous municipalities, or in a close radius thereof,
26		and the operations of which are subject to the regulations
27		of the Illinois Commerce Commission, when an official
28		certificate of exemption is obtained in lieu of the tax.
29		4. When a sale of special fuel is made to a person
30		holding a valid unrevoked license as a supplier or a
31		distributor by making a specific notation thereof on
32		invoice or sales slip covering each such sale.
33		5. When a sale of special fuel is made before July 1,
34		2004 to someone other than a licensed distributor or

1		licensed supplier for a use other than in motor vehicles,
2		by making a specific notation thereof on the invoice or
3		sales slip covering such sale and obtaining such supporting
4		documentation as may be required by the Department. The
5		supplier shall obtain and keep the supporting
6		documentation in such form as the Department may require by
7		rule.
8		6. (Blank).
9		7. When a sale of special fuel is made to a person
10		where delivery is made outside of this State.
11		8. Beginning on July 1, 2004, when a sale of dyed
12		diesel fuel is made to a person engaged in production
13		agriculture for use in production agriculture for any
14		purpose other than operating a motor vehicle upon the
15		public highways or recreational-type watercraft upon the
16		waters of this State, by making a specific notation thereof
17		on the invoice or sales slip covering that sale and
18		obtaining any supporting documentation as may be required
19		by the Department. The supplier shall obtain and keep the
20		supporting documentation in such form as the Department may
21		require by rule.
22		9. Beginning on July 1, 2004, when a sale of dyed home
23		heating oil, liquefied petroleum gas, or any other
24		combustible gas for use exclusively for residential
25		heating purposes is made, by making a specific notation
26		thereof on the invoice or sales slip covering that sale and
27		obtaining any supporting documentation as may be required
28		by the Department. The supplier shall obtain and keep the
29		supporting documentation in such form as the Department may
30		require by rule.
31		All special fuel sold or used for non-highway purposes must
32		have a dye added in accordance with Section 4d of this Law.
33		All suits or other proceedings brought for the purpose of
34		recovering any taxes, interest or penalties due the State of

1		Illinois under this Act may be maintained in the name of the
2		Department.
3		(Source: P.A. 92-30, eff. 7-1-01; 93-32, eff. 6-20-03.)
4		(35 ILCS 505/7) (from Ch. 120, par. 423)
5		Sec. 7. Any person, not licensed as a receiver, distributor
6		or supplier, purchasing fuel or motor fuel as to which there
7		has been no charge made to him of the tax imposed by Section 2
8		or 2a, or both, shall make payment of the tax imposed by
9		Section 2a of this Act and if the same be thereafter used in
10		Illinois the operation of a motor vehicle upon the public
11		highways, make payment of the motor fuel tax computed at the
12		rate prescribed in Section 2 of this Act on the amount so used,
13		such payment to be made to the Department not later than the
14		20th day of the month succeeding the month in which the motor
15		fuel was so used.
16		This Section does not apply in cases of such use of motor
17		fuel which was obtained tax-free under an official certificate
18		of exemption mentioned in Sections 6 and 6a of this Act.
19		(Source: P.A. 86-125.)
20		(35 ILCS 505/8) (from Ch. 120, par. 424)
21		Sec. 8. Except as provided in Section 8a, subdivision
22		(h)(1) of Section 12a, Section 13a.6, and items 13, 14, 15, and
23		16 of Section 15, all money received by the Department under
24		this Act, including payments made to the Department by member
25		jurisdictions participating in the International Fuel Tax
26		Agreement, shall be deposited in a special fund in the State
27		treasury, to be known as the "Motor Fuel Tax Fund", and shall
28		be used as follows:
29		(a) 2 1/2 cents per gallon of the tax collected on special
30		fuel under paragraph (b) of Section 2 and Section 13a of this
31		Act shall be transferred to the State Construction Account Fund
32		in the State Treasury;

1		(a-5) On or before the last day of each month there shall
2		be transferred from the Motor Fuel Tax Fund to the General
3		Revenue Fund an amount equal to the proceeds deposited into the
4		Motor Fuel Tax Fund during the preceding month from the tax
5		imposed on dyed diesel fuel under this Act.
6		(a-10) Beginning on August 1, 2004, on or before the last
7		day of each month there shall be transferred from the Motor
8		Fuel Tax Fund to the General Revenue Fund an amount equal to
9		1/12 of the average annual amount refunded to taxpayers under
10		this Act during calendar years 2001, 2002, and 2003 for
11		non-highway use of motor fuel and for loss of motor fuel as
12		defined in Section 13, minus the amount paid from the Motor
13		Fuel Tax Fund during that month under Section 13.1.
14		(b) $420,000 shall be transferred each month to the State
15		Boating Act Fund to be used by the Department of Natural
16		Resources for the purposes specified in Article X of the Boat
17		Registration and Safety Act;
18		(c) $2,250,000 shall be transferred each month to the Grade
19		Crossing Protection Fund to be used as follows: not less than
20		$6,000,000 each fiscal year shall be used for the construction
21		or reconstruction of rail highway grade separation structures;
22		$2,250,000 in fiscal year 2004 and each fiscal year thereafter
23		shall be transferred to the Transportation Regulatory Fund and
24		shall be accounted for as part of the rail carrier portion of
25		such funds and shall be used to pay the cost of administration
26		of the Illinois Commerce Commission's railroad safety program
27		in connection with its duties under subsection (3) of Section
28		18c-7401 of the Illinois Vehicle Code, with the remainder to be
29		used by the Department of Transportation upon order of the
30		Illinois Commerce Commission, to pay that part of the cost
31		apportioned by such Commission to the State to cover the
32		interest of the public in the use of highways, roads, streets,
33		or pedestrian walkways in the county highway system, township
34		and district road system, or municipal street system as defined

1		in the Illinois Highway Code, as the same may from time to time
2		be amended, for separation of grades, for installation,
3		construction or reconstruction of crossing protection or
4		reconstruction, alteration, relocation including construction
5		or improvement of any existing highway necessary for access to
6		property or improvement of any grade crossing including the
7		necessary highway approaches thereto of any railroad across the
8		highway or public road, or for the installation, construction,
9		reconstruction, or maintenance of a pedestrian walkway over or
10		under a railroad right-of-way, as provided for in and in
11		accordance with Section 18c-7401 of the Illinois Vehicle Code.
12		The Commission shall not order more than $2,000,000 per year in
13		Grade Crossing Protection Fund moneys for pedestrian walkways.
14		In entering orders for projects for which payments from the
15		Grade Crossing Protection Fund will be made, the Commission
16		shall account for expenditures authorized by the orders on a
17		cash rather than an accrual basis. For purposes of this
18		requirement an "accrual basis" assumes that the total cost of
19		the project is expended in the fiscal year in which the order
20		is entered, while a "cash basis" allocates the cost of the
21		project among fiscal years as expenditures are actually made.
22		To meet the requirements of this subsection, the Illinois
23		Commerce Commission shall develop annual and 5-year project
24		plans of rail crossing capital improvements that will be paid
25		for with moneys from the Grade Crossing Protection Fund. The
26		annual project plan shall identify projects for the succeeding
27		fiscal year and the 5-year project plan shall identify projects
28		for the 5 directly succeeding fiscal years. The Commission
29		shall submit the annual and 5-year project plans for this Fund
30		to the Governor, the President of the Senate, the Senate
31		Minority Leader, the Speaker of the House of Representatives,
32		and the Minority Leader of the House of Representatives on the
33		first Wednesday in April of each year;
34		(d) of the amount remaining after allocations provided for

1		in subsections (a), (a-5), (a-10), (b), and (c), a sufficient
2		amount shall be reserved to pay all of the following:
3		(1) the costs of the Department of Revenue in
4		administering this Act;
5		(2) the costs of the Department of Transportation in
6		performing its duties imposed by the Illinois Highway Code
7		for supervising the use of motor fuel tax funds apportioned
8		to municipalities, counties and road districts;
9		(3) refunds provided for in Section 13 and 13.1 of this
10		Act and under the terms of the International Fuel Tax
11		Agreement referenced in Section 14a;
12		(4) from October 1, 1985 until June 30, 1994, the
13		administration of the Vehicle Emissions Inspection Law,
14		which amount shall be certified monthly by the
15		Environmental Protection Agency to the State Comptroller
16		and shall promptly be transferred by the State Comptroller
17		and Treasurer from the Motor Fuel Tax Fund to the Vehicle
18		Inspection Fund, and for the period July 1, 1994 through
19		June 30, 2000, one-twelfth of $25,000,000 each month, for
20		the period July 1, 2000 through June 30, 2003, one-twelfth
21		of $30,000,000 each month, and $15,000,000 on July 1, 2003,
22		and $15,000,000 on January 1 and $15,000,000 on July 1 of
23		each calendar year for the period January 1, 2004 through
24		June 30, 2006, for the administration of the Vehicle
25		Emissions Inspection Law of 1995, to be transferred by the
26		State Comptroller and Treasurer from the Motor Fuel Tax
27		Fund into the Vehicle Inspection Fund;
28		(5) amounts ordered paid by the Court of Claims; and
29		(6) payment of motor fuel use taxes due to member
30		jurisdictions under the terms of the International Fuel Tax
31		Agreement. The Department shall certify these amounts to
32		the Comptroller by the 15th day of each month; the
33		Comptroller shall cause orders to be drawn for such
34		amounts, and the Treasurer shall administer those amounts

1		on or before the last day of each month;
2		(e) after allocations for the purposes set forth in
3		subsections (a), (a-5), (a-10), (b), (c), and (d), the
4		remaining amount shall be apportioned as follows:
5		(1) Until January 1, 2000, 58.4%, and beginning January
6		1, 2000, 45.6% shall be deposited as follows:
7		(A) 37% into the State Construction Account Fund,
8		and
9		(B) 63% into the Road Fund, $1,250,000 of which
10		shall be reserved each month for the Department of
11		Transportation to be used in accordance with the
12		provisions of Sections 6-901 through 6-906 of the
13		Illinois Highway Code;
14		(2) Until January 1, 2000, 41.6%, and beginning January
15		1, 2000, 54.4% shall be transferred to the Department of
16		Transportation to be distributed as follows:
17		(A) 49.10% to the municipalities of the State,
18		(B) 16.74% to the counties of the State having
19		1,000,000 or more inhabitants,
20		(C) 18.27% to the counties of the State having less
21		than 1,000,000 inhabitants,
22		(D) 15.89% to the road districts of the State.
23		As soon as may be after the first day of each month the
24		Department of Transportation shall allot to each municipality
25		its share of the amount apportioned to the several
26		municipalities which shall be in proportion to the population
27		of such municipalities as determined by the last preceding
28		municipal census if conducted by the Federal Government or
29		Federal census. If territory is annexed to any municipality
30		subsequent to the time of the last preceding census the
31		corporate authorities of such municipality may cause a census
32		to be taken of such annexed territory and the population so
33		ascertained for such territory shall be added to the population
34		of the municipality as determined by the last preceding census

1		for the purpose of determining the allotment for that
2		municipality. If the population of any municipality was not
3		determined by the last Federal census preceding any
4		apportionment, the apportionment to such municipality shall be
5		in accordance with any census taken by such municipality. Any
6		municipal census used in accordance with this Section shall be
7		certified to the Department of Transportation by the clerk of
8		such municipality, and the accuracy thereof shall be subject to
9		approval of the Department which may make such corrections as
10		it ascertains to be necessary.
11		As soon as may be after the first day of each month the
12		Department of Transportation shall allot to each county its
13		share of the amount apportioned to the several counties of the
14		State as herein provided. Each allotment to the several
15		counties having less than 1,000,000 inhabitants shall be in
16		proportion to the amount of motor vehicle license fees received
17		from the residents of such counties, respectively, during the
18		preceding calendar year. The Secretary of State shall, on or
19		before April 15 of each year, transmit to the Department of
20		Transportation a full and complete report showing the amount of
21		motor vehicle license fees received from the residents of each
22		county, respectively, during the preceding calendar year. The
23		Department of Transportation shall, each month, use for
24		allotment purposes the last such report received from the
25		Secretary of State.
26		As soon as may be after the first day of each month, the
27		Department of Transportation shall allot to the several
28		counties their share of the amount apportioned for the use of
29		road districts. The allotment shall be apportioned among the
30		several counties in the State in the proportion which the total
31		mileage of township or district roads in the respective
32		counties bears to the total mileage of all township and
33		district roads in the State. Funds allotted to the respective
34		counties for the use of road districts therein shall be

1		allocated to the several road districts in the county in the
2		proportion which the total mileage of such township or district
3		roads in the respective road districts bears to the total
4		mileage of all such township or district roads in the county.
5		After July 1 of any year, no allocation shall be made for any
6		road district unless it levied a tax for road and bridge
7		purposes in an amount which will require the extension of such
8		tax against the taxable property in any such road district at a
9		rate of not less than either .08% of the value thereof, based
10		upon the assessment for the year immediately prior to the year
11		in which such tax was levied and as equalized by the Department
12		of Revenue or, in DuPage County, an amount equal to or greater
13		than $12,000 per mile of road under the jurisdiction of the
14		road district, whichever is less. If any road district has
15		levied a special tax for road purposes pursuant to Sections
16		6-601, 6-602 and 6-603 of the Illinois Highway Code, and such
17		tax was levied in an amount which would require extension at a
18		rate of not less than .08% of the value of the taxable property
19		thereof, as equalized or assessed by the Department of Revenue,
20		or, in DuPage County, an amount equal to or greater than
21		$12,000 per mile of road under the jurisdiction of the road
22		district, whichever is less, such levy shall, however, be
23		deemed a proper compliance with this Section and shall qualify
24		such road district for an allotment under this Section. If a
25		township has transferred to the road and bridge fund money
26		which, when added to the amount of any tax levy of the road
27		district would be the equivalent of a tax levy requiring
28		extension at a rate of at least .08%, or, in DuPage County, an
29		amount equal to or greater than $12,000 per mile of road under
30		the jurisdiction of the road district, whichever is less, such
31		transfer, together with any such tax levy, shall be deemed a
32		proper compliance with this Section and shall qualify the road
33		district for an allotment under this Section.
34		In counties in which a property tax extension limitation is

1		imposed under the Property Tax Extension Limitation Law, road
2		districts may retain their entitlement to a motor fuel tax
3		allotment if, at the time the property tax extension limitation
4		was imposed, the road district was levying a road and bridge
5		tax at a rate sufficient to entitle it to a motor fuel tax
6		allotment and continues to levy the maximum allowable amount
7		after the imposition of the property tax extension limitation.
8		Any road district may in all circumstances retain its
9		entitlement to a motor fuel tax allotment if it levied a road
10		and bridge tax in an amount that will require the extension of
11		the tax against the taxable property in the road district at a
12		rate of not less than 0.08% of the assessed value of the
13		property, based upon the assessment for the year immediately
14		preceding the year in which the tax was levied and as equalized
15		by the Department of Revenue or, in DuPage County, an amount
16		equal to or greater than $12,000 per mile of road under the
17		jurisdiction of the road district, whichever is less.
18		As used in this Section the term "road district" means any
19		road district, including a county unit road district, provided
20		for by the Illinois Highway Code; and the term "township or
21		district road" means any road in the township and district road
22		system as defined in the Illinois Highway Code. For the
23		purposes of this Section, "road district" also includes park
24		districts, forest preserve districts and conservation
25		districts organized under Illinois law and "township or
26		district road" also includes such roads as are maintained by
27		park districts, forest preserve districts and conservation
28		districts. The Department of Transportation shall determine
29		the mileage of all township and district roads for the purposes
30		of making allotments and allocations of motor fuel tax funds
31		for use in road districts.
32		Payment of motor fuel tax moneys to municipalities and
33		counties shall be made as soon as possible after the allotment
34		is made. The treasurer of the municipality or county may invest

1		these funds until their use is required and the interest earned
2		by these investments shall be limited to the same uses as the
3		principal funds.
4		(Source: P.A. 92-16, eff. 6-28-01; 92-30, eff. 7-1-01; 93-32,
5		eff. 6-20-03.)
6		(35 ILCS 505/12) (from Ch. 120, par. 428)
7		Sec. 12. Records and books. It is the duty of every
8		distributor, receiver, and supplier under this Act to keep
9		within this State or at some office outside this State for any
10		period for which the Department is authorized to issue a Notice
11		of Tax Liability to the distributor, receiver, or supplier
12		records and books showing all purchases, receipts, losses
13		through any cause, sales, distribution and use of motor fuel,
14		aviation fuels, home heating oils, and kerosene, and products
15		used for the purpose of blending to produce motor fuel, which
16		records and books shall, at all times during business hours of
17		the day, be subject to inspection by the Department, or its
18		duly authorized agents and employees. In addition, every person
19		making tax-free purchases of motor fuel under this Act shall
20		keep within this State or at some office outside this State for
21		any period for which the Department is authorized to issue a
22		Notice of Tax Liability to such person records and books
23		showing all purchases, receipts, losses through any cause,
24		distribution and use of motor fuel, which records and books
25		shall, at all times during business hours of the day, be
26		subject to inspection by the Department, or its duly authorized
27		agents and employees. For purposes of this Section, "records"
28		means all data maintained by the taxpayer including data on
29		paper, microfilm, microfiche or any type of machine-sensible
30		data compilation. The Department may, in its discretion,
31		prescribe reasonable and uniform methods for keeping of records
32		and books by licensees and other persons subject to this
33		Section and that set forth requirements for the form and format

1		of records that must be maintained in order to comply with any
2		recordkeeping requirement under this Act.
3		(Source: P.A. 91-173, eff. 1-1-00.)
4		(35 ILCS 505/12a) (from Ch. 120, par. 428a)
5		Sec. 12a. (a) Any duly authorized agent or employee of the
6		Department shall have authority to enter in or upon the
7		premises of any manufacturer, vendor, dealer, retailer,
8		distributor, receiver, supplier or user of motor fuel or
9		special fuels during the regular business hours in order to
10		examine books, records, invoices, storage tanks, and any other
11		applicable equipment pertaining to motor fuel, aviation fuels,
12		home heating oils, kerosene, or special fuels, to determine
13		whether or not the taxes imposed by this Act have been paid and
14		to determine compliance with all other provisions of this Law.
15		(b) Any duly authorized agent of the Department, upon
16		presenting appropriate credentials and a written notice to the
17		person who owns, operates, or controls the place to be
18		inspected, shall have the authority to enter any place and to
19		conduct inspections in accordance with subsections (b) through
20		(g) of this Section.
21		(c) Inspections will be performed in a reasonable manner
22		and at times that are reasonable under the circumstances,
23		taking into consideration the normal business hours of the
24		place to be entered.
25		(d) Inspections may be at any place at which taxable or
26		non-taxable motor fuel is or may be produced or stored or at
27		any inspection site where evidence of the following activities
28		may be discovered:
29		(1) Where any dyed diesel fuel is sold or held for sale
30		by any person for any use which the person knows or has
31		reason to know is not a non-highway a nontaxable use of
32		such fuel.
33		(2) Where any dyed diesel fuel is held for use or used

1		by any person for a use other than a non-highway a
2		nontaxable use and the person knew, or had reason to know,
3		that the fuel was dyed according to Section 4d.
4		(3) Where any person willfully alters, or attempts to
5		alter, the strength or composition of any dye or marking
6		done pursuant to Section 4d of this Law.
7		The places may include, but are not limited to, the
8		following:
9		(1) Any terminal.
10		(2) Any fuel storage facility that is not a terminal.
11		(3) Any retail fuel facility.
12		(4) Any designated inspection site.
13		(e) Duly authorized agents of the Department may physically
14		inspect, examine, or otherwise search any tank, reservoir, or
15		other container that can or may be used for the production,
16		storage, or transportation of fuel, fuel dyes, or fuel markers.
17		Inspection may also be made of any equipment used for, or in
18		connection with, production, storage, or transportation of
19		fuel, fuel dyes, or fuel markers. This includes any equipment
20		used for the dyeing or marking of fuel. This also includes
21		books and records, if any, that are maintained at the place of
22		inspection and are kept to determine tax liability under this
23		Law.
24		(f) Duly authorized agents of the Department may detain any
25		motor vehicle, train, barge, ship, or vessel for the purpose of
26		inspecting its fuel tanks and storage tanks. Detainment will be
27		either on the premises under inspection or at a designated
28		inspection site. Detainment may continue for a reasonable
29		period of time as is necessary to determine the amount and
30		composition of the fuel.
31		(g) Duly authorized agents of the Department may take and
32		remove samples of fuel in quantities as are reasonably
33		necessary to determine the composition of the fuel.
34		(h) (1) Any person that refuses to allow an inspection

1		shall pay a $1,000 penalty for each refusal. This penalty
2		is in addition to any other penalty or tax that may be
3		imposed upon that person or any other person liable for tax
4		under this Law. All penalties received under this
5		subsection shall be deposited into the Tax Compliance and
6		Administration Fund.
7		(2) In addition, any licensee who refuses to allow an
8		inspection shall be subject to license revocation as
9		provided by Section 16 of this Law.
10		(Source: P.A. 91-173, eff. 1-1-00.)
11		(35 ILCS 505/13) (from Ch. 120, par. 429)
12		Sec. 13. Refund of tax paid before July 1, 2004. This
13		Section applies to claims based upon taxes paid before July 1,
14		2004. Any person other than a distributor or supplier, who
15		loses motor fuel through any cause or uses motor fuel (upon
16		which he has paid the amount required to be collected under
17		Section 2 of this Act) for any purpose other than operating a
18		motor vehicle upon the public highways or waters, shall be
19		reimbursed and repaid the amount so paid.
20		Any person who purchases motor fuel in Illinois and uses
21		that motor fuel in another state and that other state imposes a
22		tax on the use of such motor fuel shall be reimbursed and
23		repaid the amount of Illinois tax paid under Section 2 of this
24		Act on the motor fuel used in such other state. Reimbursement
25		and repayment shall be made by the Department upon receipt of
26		adequate proof of taxes paid to another state and the amount of
27		motor fuel used in that state.
28		Claims for such reimbursement must be made to the
29		Department of Revenue, duly verified by the claimant (or by the
30		claimant's legal representative if the claimant has died or
31		become a person under legal disability), upon forms prescribed
32		by the Department. The claim must state such facts relating to
33		the purchase, importation, manufacture or production of the

1		motor fuel by the claimant as the Department may deem
2		necessary, and the time when, and the circumstances of its loss
3		or the specific purpose for which it was used (as the case may
4		be), together with such other information as the Department may
5		reasonably require. No claim based upon idle time shall be
6		allowed.
7		Claims for full reimbursement for taxes paid on or before
8		December 31, 1999 must be filed not later than one year after
9		the date on which the tax was paid by the claimant. If,
10		however, a claim for such reimbursement otherwise meeting the
11		requirements of this Section is filed more than one year but
12		less than 2 years after that date, the claimant shall be
13		reimbursed at the rate of 80% of the amount to which he would
14		have been entitled if his claim had been timely filed.
15		Claims for full reimbursement for taxes paid on or after
16		January 1, 2000 must be filed not later than 2 years after the
17		date on which the tax was paid by the claimant.
18		The Department may make such investigation of the
19		correctness of the facts stated in such claims as it deems
20		necessary. When the Department has approved any such claim, it
21		shall pay to the claimant (or to the claimant's legal
22		representative, as such if the claimant has died or become a
23		person under legal disability) the reimbursement provided in
24		this Section, out of any moneys appropriated to it for that
25		purpose.
26		Any distributor or supplier who has paid the tax imposed by
27		Section 2 of this Act upon motor fuel lost or used by such
28		distributor or supplier for any purpose other than operating a
29		motor vehicle upon the public highways or waters may file a
30		claim for credit or refund to recover the amount so paid. Such
31		claims shall be filed on forms prescribed by the Department.
32		Such claims shall be made to the Department, duly verified by
33		the claimant (or by the claimant's legal representative if the
34		claimant has died or become a person under legal disability),

1		upon forms prescribed by the Department. The claim shall state
2		such facts relating to the purchase, importation, manufacture
3		or production of the motor fuel by the claimant as the
4		Department may deem necessary and the time when the loss or
5		nontaxable use occurred, and the circumstances of its loss or
6		the specific purpose for which it was used (as the case may
7		be), together with such other information as the Department may
8		reasonably require. Claims must be filed not later than one
9		year after the date on which the tax was paid by the claimant.
10		The Department may make such investigation of the
11		correctness of the facts stated in such claims as it deems
12		necessary. When the Department approves a claim, the Department
13		shall issue a refund or credit memorandum as requested by the
14		taxpayer, to the distributor or supplier who made the payment
15		for which the refund or credit is being given or, if the
16		distributor or supplier has died or become incompetent, to such
17		distributor's or supplier's legal representative, as such. The
18		amount of such credit memorandum shall be credited against any
19		tax due or to become due under this Act from the distributor or
20		supplier who made the payment for which credit has been given.
21		Any credit or refund that is allowed under this Section
22		shall bear interest at the rate and in the manner specified in
23		the Uniform Penalty and Interest Act.
24		In case the distributor or supplier requests and the
25		Department determines that the claimant is entitled to a
26		refund, such refund shall be made only from such appropriation
27		as may be available for that purpose. If it appears unlikely
28		that the amount appropriated would permit everyone having a
29		claim allowed during the period covered by such appropriation
30		to elect to receive a cash refund, the Department, by rule or
31		regulation, shall provide for the payment of refunds in
32		hardship cases and shall define what types of cases qualify as
33		hardship cases.
34		In any case in which there has been an erroneous refund of

1		tax payable under this Section, a notice of tax liability may
2		be issued at any time within 3 years from the making of that
3		refund, or within 5 years from the making of that refund if it
4		appears that any part of the refund was induced by fraud or the
5		misrepresentation of material fact. The amount of any proposed
6		assessment set forth by the Department shall be limited to the
7		amount of the erroneous refund.
8		If no tax is due and no proceeding is pending to determine
9		whether such distributor or supplier is indebted to the
10		Department for tax, the credit memorandum so issued may be
11		assigned and set over by the lawful holder thereof, subject to
12		reasonable rules of the Department, to any other licensed
13		distributor or supplier who is subject to this Act, and the
14		amount thereof applied by the Department against any tax due or
15		to become due under this Act from such assignee.
16		If the payment for which the distributor's or supplier's
17		claim is filed is held in the protest fund of the State
18		Treasury during the pendency of the claim for credit
19		proceedings pursuant to the order of the court in accordance
20		with Section 2a of the State Officers and Employees Money
21		Disposition Act and if it is determined by the Department or by
22		the final order of a reviewing court under the Administrative
23		Review Law that the claimant is entitled to all or a part of
24		the credit claimed, the claimant, instead of receiving a credit
25		memorandum from the Department, shall receive a cash refund
26		from the protest fund as provided for in Section 2a of the
27		State Officers and Employees Money Disposition Act.
28		If any person ceases to be licensed as a distributor or
29		supplier while still holding an unused credit memorandum issued
30		under this Act, such person may, at his election (instead of
31		assigning the credit memorandum to a licensed distributor or
32		licensed supplier under this Act), surrender such unused credit
33		memorandum to the Department and receive a refund of the amount
34		to which such person is entitled.

1		For claims based upon taxes paid on or before December 31,
2		2000, a claim based upon the use of undyed diesel fuel shall
3		not be allowed except (i) if allowed under the following
4		paragraph or (ii) for undyed diesel fuel used by a commercial
5		vehicle, as that term is defined in Section 1-111.8 of the
6		Illinois Vehicle Code, for any purpose other than operating the
7		commercial vehicle upon the public highways and unlicensed
8		commercial vehicles operating on private property. Claims
9		shall be limited to commercial vehicles that are operated for
10		both highway purposes and any purposes other than operating
11		such vehicles upon the public highways.
12		For claims based upon taxes paid on or after January 1,
13		2000, a claim based upon the use of undyed diesel fuel shall
14		not be allowed except (i) if allowed under the preceding
15		paragraph or (ii) for claims for the following:
16		(1) Undyed diesel fuel used (i) in a manufacturing
17		process, as defined in Section 2-45 of the Retailers'
18		Occupation Tax Act, wherein the undyed diesel fuel becomes
19		a component part of a product or by-product, other than
20		fuel or motor fuel, when the use of dyed diesel fuel in
21		that manufacturing process results in a product that is
22		unsuitable for its intended use or (ii) for testing
23		machinery and equipment in a manufacturing process, as
24		defined in Section 2-45 of the Retailers' Occupation Tax
25		Act, wherein the testing takes place on private property.
26		(2) Undyed diesel fuel used by a manufacturer on
27		private property in the research and development, as
28		defined in Section 1.29, of machinery or equipment intended
29		for manufacture.
30		(3) Undyed diesel fuel used by a single unit
31		self-propelled agricultural fertilizer implement, designed
32		for on and off road use, equipped with flotation tires and
33		specially adapted for the application of plant food
34		materials or agricultural chemicals.

1		(4) Undyed diesel fuel used by a commercial motor
2		vehicle for any purpose other than operating the commercial
3		motor vehicle upon the public highways. Claims shall be
4		limited to commercial motor vehicles that are operated for
5		both highway purposes and any purposes other than operating
6		such vehicles upon the public highways.
7		(5) Undyed diesel fuel used by a unit of local
8		government in its operation of an airport if the undyed
9		diesel fuel is used directly in airport operations on
10		airport property.
11		(6) Undyed diesel fuel used by refrigeration units that
12		are permanently mounted to a semitrailer, as defined in
13		Section 1.28 of this Law, wherein the refrigeration units
14		have a fuel supply system dedicated solely for the
15		operation of the refrigeration units.
16		(7) Undyed diesel fuel used by power take-off equipment
17		as defined in Section 1.27 of this Law.
18		Any person who has paid the tax imposed by Section 2 of
19		this Law upon undyed diesel fuel that, before July 1, 2004, is
20		unintentionally mixed with dyed diesel fuel and who owns or
21		controls the mixture of undyed diesel fuel and dyed diesel fuel
22		may file a claim for refund to recover the amount paid. The
23		amount of undyed diesel fuel unintentionally mixed must equal
24		500 gallons or more. Any claim for refund of unintentionally
25		mixed undyed diesel fuel and dyed diesel fuel shall be
26		supported by documentation showing the date and location of the
27		unintentional mixing, the number of gallons involved, the
28		disposition of the mixed diesel fuel, and any other information
29		that the Department may reasonably require. Any unintentional
30		mixture of undyed diesel fuel and dyed diesel fuel shall be
31		sold or used only for non-highway purposes.
32		The Department shall promulgate regulations establishing
33		specific limits on the amount of undyed diesel fuel that may be
34		claimed for refund.

1		For purposes of claims for refund, "loss" means the
2		reduction of motor fuel resulting from fire, theft, spillage,
3		spoilage, leakage, or any other provable cause, but does not
4		include a reduction resulting from evaporation or shrinkage due
5		to temperature variations.
6		(Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01.)
7		(35 ILCS 505/13.1 new)
8		Sec. 13.1. Refund of taxes paid on or after July 1, 2004.
9		This Section applies to claims based upon taxes paid on or
10		after July 1, 2004.
11		(a) Any person, other than a distributor or supplier,
12		engaged in production agriculture who uses undyed diesel fuel
13		in a single unit self-propelled agricultural fertilizer
14		implement, designed for on and off road use, equipped with
15		flotation tires and specially adapted for the application of
16		plant food materials or agricultural chemicals (upon which he
17		or she has paid the amount required to be collected under
18		Section 2 of this Act) in production agriculture for any
19		purpose other than operating a motor vehicle upon the public
20		highways or recreational-type watercraft upon the waters of
21		this State shall be reimbursed and repaid the amount so paid.
22		Any person who purchases motor fuel in Illinois and uses
23		that motor fuel in another state and that other state imposes a
24		tax on the use of such motor fuel shall be reimbursed and
25		repaid the amount of Illinois tax paid under Section 2 of this
26		Act on the motor fuel used in such other state. Reimbursement
27		and repayment shall be made by the Department upon receipt of
28		adequate proof of taxes paid to another state and the amount of
29		motor fuel used in that state.
30		Claims for such reimbursement must be made to the
31		Department of Revenue, duly verified by the claimant (or by the
32		claimant's legal representative if the claimant has died or
33		become a person under legal disability), upon forms prescribed

1		by the Department. The claim must state any facts relating to
2		the purchase, importation, manufacture, or production of the
3		motor fuel by the claimant that the Department may deem
4		necessary and the time when and the specific purpose for which
5		it was used, together with any other information as the
6		Department may reasonably require. No claim based upon idle
7		time shall be allowed, regardless of where the idling occurs.
8		Claims for reimbursement for taxes must be filed not later
9		than 2 years after the date on which the tax was paid by the
10		claimant.
11		The Department may make any investigation of the
12		correctness of the facts stated in such claims that it deems
13		necessary. When the Department has approved the claim, it shall
14		pay to the claimant (or to the claimant's legal representative
15		if the claimant has died or become a person under legal
16		disability) the reimbursement provided in this Section, out of
17		any moneys appropriated to it for that purpose.
18		Any distributor or supplier engaged in production
19		agriculture who uses undyed diesel fuel in a single unit
20		self-propelled agricultural fertilizer implement, designed for
21		on and off road use, equipped with flotation tires and
22		specially adapted for the application of plant food materials
23		or agricultural chemicals (upon which he or she has paid the
24		amount required to be collected under Section 2 of this Act) in
25		production agriculture for any purpose other than operating a
26		motor vehicle upon the public highways or recreational-type
27		watercraft upon the waters of this State may file a claim for
28		credit or refund to recover the amount so paid. The claims
29		shall be filed on forms prescribed by the Department. The
30		claims shall be made to the Department, duly verified by the
31		claimant (or by the claimant's legal representative if the
32		claimant has died or become a person under legal disability),
33		upon forms prescribed by the Department. The claim must state
34		any facts relating to the purchase, importation, manufacture,

1		or production of the motor fuel by the claimant that the
2		Department may deem necessary and the time when the nontaxable
3		use occurred and the specific purpose for which it was used,
4		together with any other information that the Department may
5		reasonably require. Claims must be filed not later than one
6		year after the date on which the tax was paid by the claimant.
7		The Department may make any investigation of the
8		correctness of the facts stated in the claims that it deems
9		necessary. When the Department approves a claim, the Department
10		shall issue a refund or credit memorandum, as requested by the
11		taxpayer, to the distributor or supplier who made the payment
12		for which the refund or credit is being given or, if the
13		distributor or supplier has died or become incompetent, to the
14		distributor's or supplier's legal representative. The amount
15		of the credit memorandum shall be credited against any tax due
16		or to become due under this Act from the distributor or
17		supplier who made the payment for which credit has been given.
18		Any credit or refund that is allowed under this Section
19		shall bear interest at the rate and in the manner specified in
20		the Uniform Penalty and Interest Act.
21		In case the distributor or supplier requests and the
22		Department determines that the claimant is entitled to a
23		refund, the refund shall be made only from appropriations
24		available for that purpose. If it appears unlikely that the
25		amount appropriated would permit everyone having a claim
26		allowed during the period covered by the appropriation to elect
27		to receive a cash refund, the Department, by rule, shall
28		provide for the payment of refunds in hardship cases and shall
29		define what types of cases qualify as hardship cases.
30		In any case in which there has been an erroneous refund of
31		tax payable under this Section, a notice of tax liability may
32		be issued at any time within 3 years from the making of that
33		refund, or within 5 years from the making of that refund if it
34		appears that any part of the refund was induced by fraud or the

1		misrepresentation of material fact. The amount of any proposed
2		assessment set forth by the Department shall be limited to the
3		amount of the erroneous refund.
4		If no tax is due and no proceeding is pending to determine
5		whether the distributor or supplier is indebted to the
6		Department for tax, the credit memorandum so issued may be
7		assigned and set over by the lawful holder thereof, subject to
8		reasonable rules of the Department, to any other licensed
9		distributor or supplier who is subject to this Act, and the
10		amount thereof applied by the Department against any tax due or
11		to become due under this Act from the assignee.
12		If the payment for which the distributor's or supplier's
13		claim is filed is held in the protest fund of the State
14		Treasury during the pendency of the claim for credit
15		proceedings pursuant to the order of the court in accordance
16		with Section 2a of the State Officers and Employees Money
17		Disposition Act and if it is determined by the Department or by
18		the final order of a reviewing court under the Administrative
19		Review Law that the claimant is entitled to all or a part of
20		the credit claimed, the claimant, instead of receiving a credit
21		memorandum from the Department, shall receive a cash refund
22		from the protest fund as provided for in Section 2a of the
23		State Officers and Employees Money Disposition Act.
24		If any person ceases to be licensed as a distributor or
25		supplier while still holding an unused credit memorandum issued
26		under this Act, that person may, at his or her election
27		(instead of assigning the credit memorandum to a licensed
28		distributor or licensed supplier under this Act), surrender the
29		unused credit memorandum to the Department and receive a refund
30		of the amount to which the person is entitled.
31		(b) Any person, other than a distributor or supplier, who
32		loses motor fuel through any cause (upon which he has paid the
33		amount required to be collected under Section 2 of this Act)
34		shall be reimbursed and repaid the amount so paid.

1		Claims for the reimbursement must be made to the Department
2		of Revenue, duly verified by the claimant (or by the claimant's
3		legal representative if the claimant has died or become a
4		person under legal disability), upon forms prescribed by the
5		Department. The claim must state any facts relating to the
6		purchase, importation, manufacture, or production of the motor
7		fuel by the claimant that the Department may deem necessary and
8		the time when and the circumstances of its loss, together with
9		any other information that the Department may reasonably
10		require. No claim based upon idle time shall be allowed,
11		regardless of where the idling occurs.
12		Claims for reimbursement for taxes must be filed not later
13		than 2 years after the date on which the tax was paid by the
14		claimant.
15		The Department may make any investigation of the
16		correctness of the facts stated in the claims that it deems
17		necessary. When the Department has approved the claim, it shall
18		pay to the claimant (or to the claimant's legal representative
19		if the claimant has died or become a person under legal
20		disability) the reimbursement provided in this Section, out of
21		any moneys appropriated to it for that purpose.
22		Any distributor or supplier who has paid the tax imposed by
23		Section 2 of this Act upon motor fuel lost by the distributor
24		or supplier may file a claim for credit or refund to recover
25		the amount so paid. The claims shall be filed on forms
26		prescribed by the Department. The claims shall be made to the
27		Department, duly verified by the claimant (or by the claimant's
28		legal representative if the claimant has died or become a
29		person under legal disability), upon forms prescribed by the
30		Department. The claim must state the facts relating to the
31		purchase, importation, manufacture, or production of the motor
32		fuel by the claimant as the Department may deem necessary and
33		the time when the loss occurred and the circumstances of its
34		loss, together with any other information as the Department may

1		reasonably require. Claims must be filed not later than one
2		year after the date on which the tax was paid by the claimant.
3		The Department may make any investigation of the
4		correctness of the facts stated in the claims that it deems
5		necessary. When the Department approves a claim, the Department
6		shall issue a refund or credit memorandum, as requested by the
7		taxpayer, to the distributor or supplier who made the payment
8		for which the refund or credit is being given or, if the
9		distributor or supplier has died or become incompetent, to the
10		distributor's or supplier's legal representative. The amount
11		of the credit memorandum shall be credited against any tax due
12		or to become due under this Act from the distributor or
13		supplier who made the payment for which credit has been given.
14		Any credit or refund that is allowed under this Section
15		shall bear interest at the rate and in the manner specified in
16		the Uniform Penalty and Interest Act.
17		In case the distributor or supplier requests and the
18		Department determines that the claimant is entitled to a
19		refund, the refund shall be made only from appropriations
20		available for that purpose. If it appears unlikely that the
21		amount appropriated would permit everyone having a claim
22		allowed during the period covered by such appropriation to
23		elect to receive a cash refund, the Department, by rule, shall
24		provide for the payment of refunds in hardship cases and shall
25		define what types of cases qualify as hardship cases.
26		In any case in which there has been an erroneous refund of
27		tax payable under this Section, a notice of tax liability may
28		be issued at any time within 3 years from the making of that
29		refund or within 5 years from the making of that refund if it
30		appears that any part of the refund was induced by fraud or the
31		misrepresentation of material fact. The amount of any proposed
32		assessment set forth by the Department shall be limited to the
33		amount of the erroneous refund. If no tax is due and no
34		proceeding is pending to determine whether such distributor or

1		supplier is indebted to the Department for tax, the credit
2		memorandum so issued may be assigned and set over by the lawful
3		holder thereof, subject to reasonable rules of the Department,
4		to any other licensed distributor or supplier who is subject to
5		this Act, and the amount thereof applied by the Department
6		against any tax due or to become due under this Act from such
7		assignee.
8		If the payment for which the distributor's or supplier's
9		claim is filed is held in the protest fund of the State
10		Treasury during the pendency of the claim for credit
11		proceedings pursuant to the order of the court in accordance
12		with Section 2a of the State Officers and Employees Money
13		Disposition Act and if it is determined by the Department or by
14		the final order of a reviewing court under the Administrative
15		Review Law that the claimant is entitled to all or a part of
16		the credit claimed, the claimant, instead of receiving a credit
17		memorandum from the Department, shall receive a cash refund
18		from the protest fund as provided for in Section 2a of the
19		State Officers and Employees Money Disposition Act.
20		If any person ceases to be licensed as a distributor or
21		supplier while still holding an unused credit memorandum issued
22		under this Act, that person may, at his election (instead of
23		assigning the credit memorandum to a licensed distributor or
24		licensed supplier under this Act), surrender the unused credit
25		memorandum to the Department and receive a refund of the amount
26		to which the person is entitled.
27		For purposes of claims for refund under this subsection
28		(b), "loss" means the reduction of motor fuel resulting from
29		fire, spillage, spoilage, leakage, or any other provable cause,
30		but does not include a reduction resulting from evaporation or
31		shrinkage due to temperature variations.
32		(35 ILCS 505/13a) (from Ch. 120, par. 429a)
33		Sec. 13a.

1		(1) Before July 1, 2004, a A tax is hereby imposed upon the
2		use of motor fuel upon highways of this State by commercial
3		motor vehicles. Beginning on July 1, 2004, a tax is imposed
4		upon the use of motor fuel in this State by commercial motor
5		vehicles. The tax shall be comprised of 2 parts. Part (a) shall
6		be at the rate established by Section 2 of this Act, as
7		heretofore or hereafter amended. Part (b) shall be at the rate
8		established by subsection (2) of this Section as now or
9		hereafter amended.
10		(2) A rate shall be established by the Department as of
11		January 1 of each year using the average "selling price", as
12		defined in the Retailers' Occupation Tax Act, per gallon of
13		motor fuel sold in this State during the previous 12 months and
14		multiplying it by 6 1/4% to determine the cents per gallon
15		rate. For the period beginning on July 1, 2000 and through
16		December 31, 2000, the Department shall establish a rate using
17		the average "selling price", as defined in the Retailers'
18		Occupation Tax Act, per gallon of motor fuel sold in this State
19		during calendar year 1999 and multiplying it by 1.25% to
20		determine the cents per gallon rate.
21		(Source: P.A. 91-872, eff. 7-1-00.)
22		(35 ILCS 505/13a.1) (from Ch. 120, par. 429a1)
23		Sec. 13a.1. Every commercial motor carrier shall pay the
24		tax imposed by Section 13a hereof to the Department, calculated
25		on the amount of motor fuel consumed on any highway within this
26		State.
27		(Source: P.A. 88-480.)
28		(35 ILCS 505/13a.2) (from Ch. 120, par. 429a2)
29		Sec. 13a.2. Each motor carrier shall keep records which
30		accurately reflect the type and number of gallons of motor fuel
31		consumed, the number of miles traveled with each type of fuel
32		on the highways of each jurisdiction and the number of miles

1		traveled with each type of fuel in the highways of Illinois,
2		the type and number of gallons of tax paid fuel purchased in
3		this State, and every jurisdiction, and the number of miles
4		traveled and the amount of fuel consumed in on the highways of
5		this State and on the highways of every jurisdiction. Licensees
6		shall preserve the records for a period of 4 years from the due
7		date of their returns or the date filed, whichever is later. In
8		the absence of such records, the Department shall presume that
9		one gallon of fuel is used for each 4.0 miles traveled in this
10		State. Every authorized agent of the Department shall have
11		power to make any reasonable investigations to prevent
12		avoidance of the tax imposed by Section 13a hereof.
13		Failure to provide records demanded for the purpose of
14		audit extends the statute of limitations until the records are
15		provided.
16		(Source: P.A. 88-480.)
17		(35 ILCS 505/13a.3) (from Ch. 120, par. 429a3)
18		Sec. 13a.3. Every person holding a valid unrevoked motor
19		fuel use tax license issued under Section 13a.4 of this Act
20		shall, on or before the last day of the month next succeeding
21		any calendar quarter, file with the Department a report, in
22		such form as the Department may by rule or regulation
23		prescribe, setting forth a statement of the number of miles
24		traveled in every jurisdiction and in this State during the
25		previous calendar quarter, the number of gallons and type of
26		reportable motor fuel consumed on the highways of every
27		jurisdiction and the number of gallons and type of reportable
28		motor fuel consumed in of this State, and the total number of
29		gallons and types of tax paid fuel purchased within every
30		jurisdiction during said previous calendar quarter. A motor
31		carrier who purchases motor fuel in this State who pays a tax
32		thereon under any section of the Motor Fuel Tax Law other than
33		Sections 13a, 13a.1, 13a.2 and 13a.3, and who does not apply

1		for a refund under Section 13 or 13.1 of the Motor Fuel Tax
2		Law, shall receive a gallon for gallon credit against his
3		liability under Sections 13a, 13a.1, 13a.2 and 13a.3 hereof.
4		The rate under Section 2 of this Act shall apply to each gallon
5		of motor fuel used by such motor carrier in on the highways of
6		Illinois during the previous calendar quarter in excess of the
7		motor fuel purchased in Illinois during such previous calendar
8		quarter.
9		The rate under subsection (2) of Section 13a of this Act
10		shall apply to each gallon of motor fuel used by such motor
11		carrier in on the highways of Illinois during the previous
12		calendar quarter. For purposes of the preceding paragraphs
13		"used" shall be determined as provided in Section 13a.2 of this
14		Act.
15		For such motor fuel consumed during the previous calendar
16		quarter, said tax shall be payable on the last day of the month
17		next succeeding such previous calendar quarter and shall bear
18		interest at the rate of 1% per month or fraction of month until
19		paid. Motor carriers required to file bonds under Section 13a.4
20		of this Act shall make tax payments to the Department by
21		certified check.
22		Reports not filed by the due date shall be considered late
23		and any taxes due considered delinquent. The licensee may be
24		assessed a penalty of $50 or 10% of the delinquent taxes,
25		whichever is greater, for failure to file a report, or for
26		filing a late report, or for underpayment of taxes due.
27		As to each gallon of motor fuel purchased in Illinois by
28		such motor carrier during the previous calendar quarter in
29		excess of the number of gallons of motor fuel used by such
30		motor carrier in on the highways of Illinois during such
31		previous calendar quarter, the taxpayer may take a credit for
32		the current calendar quarter or the Department may issue a
33		credit memorandum or refund to such motor carrier for any tax
34		imposed by Part (a) of Section 13a of this Act paid on each

1		such gallon. If a credit is given, the credit memorandum shall
2		be carried over to offset liabilities of the licensee until the
3		credit is fully offset or until 8 calendar quarters pass after
4		the end of the calendar quarter in which the credit accrued,
5		whichever occurs sooner.
6		A motor carrier who purchases motor fuel in this State
7		shall be entitled to a refund under this Section or a credit
8		against all his liabilities under Sections 13a, 13a.1, 13a.2
9		and 13a.3 hereof for taxes imposed by the Use Tax Act, the
10		Retailers' Occupation Tax Act, the Municipal Retailers'
11		Occupation Tax Act and the County Retailers' Occupation Tax Act
12		on such motor fuel at a rate equal to that established by
13		subsection (2) of Section 13a of this Act, provided that such
14		taxes have been paid by the taxpayer and such taxes have been
15		charged to the motor carrier claiming the credit or refund.
16		(Source: P.A. 87-205; 88-480; 88-669, eff. 11-29-94.)
17		(35 ILCS 505/15) (from Ch. 120, par. 431)
18		Sec. 15. Offenses; penalties.
19		1. Any person who knowingly acts as a distributor of motor
20		fuel or supplier of special fuel, or receiver of fuel without
21		having a license so to do, or who knowingly fails or refuses to
22		file a return with the Department as provided in Section 2b,
23		Section 5, or Section 5a of this Act, or who knowingly fails or
24		refuses to make payment to the Department as provided either in
25		Section 2b, Section 6, Section 6a, or Section 7 of this Act,
26		shall be guilty of a Class 3 felony. Each day any person
27		knowingly acts as a distributor of motor fuel, supplier of
28		special fuel, or receiver of fuel without having a license so
29		to do or after such a license has been revoked, constitutes a
30		separate offense.
31		2. Any person who acts as a motor carrier without having a
32		valid motor fuel use tax license, issued by the Department or
33		by a member jurisdiction under the provisions of the

1		International Fuel Tax Agreement, or a valid single trip permit
2		is guilty of a Class A misdemeanor for a first offense and is
3		guilty of a Class 4 felony for each subsequent offense. Any
4		person (i) who fails or refuses to make payment to the
5		Department as provided in Section 13a.1 of this Act or in the
6		International Fuel Tax Agreement referenced in Section 14a, or
7		(ii) who fails or refuses to make the quarterly return as
8		provided in Section 13a.3 is guilty of a Class 4 felony; and
9		for each subsequent offense, such person is guilty of a Class 3
10		felony.
11		3. In case such person acting as a distributor, receiver,
12		supplier, or motor carrier is a corporation, then the officer
13		or officers, agent or agents, employee or employees, of such
14		corporation responsible for any act of such corporation, or
15		failure of such corporation to act, which acts or failure to
16		act constitutes a violation of any of the provisions of this
17		Act as enumerated in paragraphs 1 and 2 of this Section, shall
18		be punished by such fine or imprisonment, or by both such fine
19		and imprisonment as provided in those paragraphs.
20		3.5. Any person who knowingly enters false information on
21		any supporting documentation required to be kept by Section 6
22		or 6a of this Act is guilty of a Class 3 felony.
23		3.6. Any person who knowingly enters false information on
24		any supporting documentation required to be kept by item 8 or 9
25		of Section 5, item 7 or 8 of Section 5a, item 9 or 10 of Section
26		6, or item 8 or 9 of Section 6a of this Act shall pay the
27		following penalty:
28		$2,500 for the first occurrence; and
29		$5,000 for the second occurrence and each occurrence
30		thereafter.
31		3.7. Any person who knowingly attempts in any manner to
32		evade or defeat any tax imposed by this Act or the payment of
33		any tax imposed by this Act is guilty of a Class 2 felony.
34		4. Any person who refuses, upon demand, to submit for

1		inspection, books and records, or who fails or refuses to keep
2		books and records in violation of Section 12 of this Act, or
3		any distributor, receiver, or supplier , or other person who
4		violates any reasonable rule or regulation adopted by the
5		Department for the enforcement of this Act is guilty of a Class
6		A misdemeanor. Any person who acts as a blender in violation of
7		Section 3 of this Act or who having transported reportable
8		motor fuel within Section 7b of this Act fails to make the
9		return required by that Section, is guilty of a Class 4 felony.
10		5. Any person licensed under Section 13a.4, 13a.5, or the
11		International Fuel Tax Agreement who: (a) fails or refuses to
12		keep records and books, as provided in Section 13a.2 or as
13		required by the terms of the International Fuel Tax Agreement,
14		(b) refuses upon demand by the Department to submit for
15		inspection and examination the records required by Section
16		13a.2 of this Act or by the terms of the International Fuel Tax
17		Agreement, or (c) violates any reasonable rule or regulation
18		adopted by the Department for the enforcement of this Act, is
19		guilty of a Class A misdemeanor.
20		6. Any person who makes any false return or report to the
21		Department as to any material fact required by Sections 2b, 5,
22		5a, 7, 13, 13.1, or 13a.3 of this Act or by the International
23		Fuel Tax Agreement is guilty of a Class 2 felony.
24		7. A prosecution for any violation of this Section may be
25		commenced anytime within 5 years of the commission of that
26		violation. A prosecution for tax evasion as set forth in
27		paragraph 3.7 of this Section may be prosecuted any time within
28		5 years of the commission of the last act in furtherance of
29		evasion. The running of the period of limitations under this
30		Section shall be suspended while any proceeding or appeal from
31		any proceeding relating to the quashing or enforcement of any
32		grand jury or administrative subpoena issued in connection with
33		an investigation of the violation of any provision of this Act
34		is pending.

1		8. Any person who provides false documentation required by
2		any Section of this Act is guilty of a Class 4 felony.
3		9. Any person filing a fraudulent application or order form
4		under any provision of this Act is guilty of a Class A
5		misdemeanor. For each subsequent offense, the person is guilty
6		of a Class 4 felony.
7		10. Any person who acts as a motor carrier and who fails to
8		carry a manifest as provided in Section 5.5 is guilty of a
9		Class A misdemeanor. For each subsequent offense, the person is
10		guilty of a Class 4 felony.
11		11. Any person who knowingly sells or attempts to sell dyed
12		diesel fuel for highway use or for use by recreational-type
13		watercraft on the waters of this State is guilty of a Class 4
14		felony. For each subsequent offense, the person is guilty of a
15		Class 2 felony.
16		12. Any person who knowingly possesses dyed diesel fuel for
17		highway use or for use by recreational-type watercraft on the
18		waters of this State is guilty of a Class A misdemeanor. For
19		each subsequent offense, the person is guilty of a Class 4
20		felony.
21		13. Any person who sells or transports dyed diesel fuel
22		without the notice required by Section 4e shall pay the
23		following penalty:
24		First occurrence........................................$ 500
25		Second and each occurrence thereafter..................$1,000
26		14. Any person who owns, operates, or controls any
27		container, storage tank, or facility used to store or
28		distribute dyed diesel fuel without the notice required by
29		Section 4f shall pay the following penalty:
30		First occurrence........................................$ 500
31		Second and each occurrence thereafter..................$1,000
32		15. If a motor vehicle required to be registered for
33		highway purposes is found to have dyed diesel fuel within the
34		ordinary fuel tanks attached to the motor vehicle or if a

1		recreational-type watercraft on the waters of this State is
2		found to have dyed diesel fuel within the ordinary fuel tanks
3		attached to the watercraft, the operator shall pay the
4		following penalty:
5		First occurrence.......................................$2,500
6		Second and each occurrence thereafter..................$5,000
7		16. Any licensed motor fuel distributor or licensed
8		supplier who sells or attempts to sell dyed diesel fuel for
9		highway use or for use by recreational-type watercraft on the
10		waters of this State shall pay the following penalty:
11		First occurrence......................................$ 5,000
12		Second and each occurrence thereafter.............$10,000
13		(16.1) Any person other than a licensed motor fuel
14		distributor or licensed supplier who purchases motor fuel
15		tax-free and who sells or attempts to sell that motor fuel
16		shall pay the following penalty:
17		First occurrence..................................$ 5,000
18		Second and each occurrence thereafter.............$10,000
19		17. Any person who knowingly sells or distributes dyed
20		diesel fuel without the notice required by Section 4e is guilty
21		of a petty offense. For each subsequent offense, the person is
22		guilty of a Class A misdemeanor.
23		18. Any person who knowingly owns, operates, or controls
24		any container, storage tank, or facility used to store or
25		distribute dyed diesel fuel without the notice required by
26		Section 4f is guilty of a petty offense. For each subsequent
27		offense the person is guilty of a Class A misdemeanor.
28		For purposes of this Section, dyed diesel fuel means any
29		dyed diesel fuel whether or not dyed pursuant to Section 4d of
30		this Law.
31		Any person aggrieved by any action of the Department under
32		item 3.6, 13, 14, 15, or 16 , or 16.1 of this Section may
33		protest the action by making a written request for a hearing
34		within 60 days of the original action. If the hearing is not

1		requested in writing within 60 days, the original action is
2		final.
3		All penalties received under items 3.6, 13, 14, 15, and 16
4		, and 16.1 of this Section shall be deposited into the Tax
5		Compliance and Administration Fund.
6		(Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01; 92-232,
7		eff. 8-2-01; 92-651, eff. 7-11-02.)
8		(35 ILCS 505/17) (from Ch. 120, par. 433)
9		Sec. 17. It is the purpose of Sections 2 and 13a of this
10		Act to impose a tax upon the privilege of using motor fuel in
11		operating each motor vehicle as defined in this Act upon the
12		public highways and the waters of this State, such tax to be
13		based upon the consumption of motor fuel in this State such
14		motor vehicle, so far as the same may be done, under the
15		Constitution and statutes of the United States, and the
16		Constitution of the State of Illinois. It is the purpose of
17		Section 2a of this Act to impose a tax upon the privilege of
18		importing or receiving in this State fuel for sale or use, such
19		tax to be used to fund the Underground Storage Tank Fund. If
20		any of the provisions of this Act include transactions which
21		are not taxable or are in any other respect unconstitutional,
22		it is the intent of the General Assembly that, so far as
23		possible, the remaining provisions of the Act be given effect.
24		(Source: P.A. 86-125.)

Section 99. Effective date. This Act takes effect on July 1, 2004.".