State of Illinois
2019 and 2020


Introduced 11/6/2019, by Sen. Bill Cunningham


65 ILCS 5/8-11-2.3

    Amends the Illinois Municipal Code. Provides that the municipal motor fuel tax shall be imposed as a retailers' or service occupation tax. Prescribes conditions for reimbursement. Provides that any tax imposed, and all civil penalties that may be assessed as an incident thereof, shall be administered, collected, and enforced by the Department of Revenue in the same manner as the tax imposed under the Retailers' Occupation Tax Act. Effective immediately.

LRB101 14837 AWJ 63822 b






SB2298LRB101 14837 AWJ 63822 b

1    AN ACT concerning local government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 8-11-2.3 as follows:
6    (65 ILCS 5/8-11-2.3)
7    Sec. 8-11-2.3. Municipal Motor Fuel Tax Law fuel tax.
8Notwithstanding any other provision of law, in addition to any
9other tax that may be imposed, a municipality in a county with
10a population of over 3,000,000 inhabitants may also impose, by
11ordinance, a tax upon all persons engaged in the municipality
12in the business of selling motor fuel, as that term is defined
13in Section 1.1 of the Motor Fuel Tax Law, at retail for the
14operation of motor vehicles upon public highways or for the
15operation of recreational watercraft upon waterways,
16including, but not limited to, persons who make sales of motor
17fuel incident to a sale of service. The tax may be imposed, in
18one cent increments, on motor fuel at a rate not to exceed
19$0.03 per gallon of motor fuel sold at retail within the
20municipality for the purpose of use or consumption and not for
21the purpose of resale. The tax may not be imposed under this
22Section on aviation fuel, as defined in Section 3 of the
23Retailers' Occupation Tax Act.



SB2298- 2 -LRB101 14837 AWJ 63822 b

1    Persons subject to any tax imposed under the authority
2granted in this Section may reimburse themselves for their
3seller's tax liability under this Section by separately stating
4that tax as an additional charge, which charge may be stated in
5combination, in a single amount, with State tax which sellers
6are required to collect under the Use Tax Act, pursuant to such
7bracket schedules as the Department of Revenue may prescribe.
8    A tax imposed under this Section, and all civil penalties
9that may be assessed as an incident thereof, shall be
10administered, collected, and enforced by the Department of
11Revenue in the same manner as the tax imposed under the
12Retailers' Occupation Tax Act insofar as may be practicable;
13except that, in the event of a conflict with the provisions of
14this Section, this Section shall control. The Department shall
15have full power to: administer and enforce this Section;
16collect all taxes and penalties due under this Section; dispose
17of taxes and penalties so collected in the manner provided in
18this Section; and determine all rights to credit memoranda
19arising on account of the erroneous payment of tax or penalty
20under this Section.
21    Whenever the Department determines that a refund shall be
22made under this Section to a claimant instead of issuing a
23credit memorandum, the Department shall notify the State
24Comptroller, who shall cause the order to be drawn for the
25amount specified, and to the person named, in the notification
26from the Department. The refund shall be paid by the State



SB2298- 3 -LRB101 14837 AWJ 63822 b

1Treasurer out of the Municipal Motor Fuel Tax Fund.
2    A license that is issued to a distributor or a receiver
3under the Motor Fuel Tax Law shall permit that distributor or
4receiver to act as a distributor or receiver, as applicable,
5under this Section. The provisions of Sections 2b, 2d, 6, 6a,
612, 12a, 13, 13a.2, 13a.7, 13a.8, 15.1, and 21 of the Motor
7Fuel Tax Law that are not inconsistent with this Section shall
8apply as far as practicable to the subject matter of this
9Section to the same extent as if those provisions were included
10in this Section.
11    The Department shall immediately pay over to the State
12Treasurer, ex officio, as trustee, all taxes and penalties
13collected under this Section. Those taxes and penalties shall
14be deposited into the Municipal Motor Fuel Tax Fund, a trust
15fund created in the State treasury. Moneys in the Municipal
16Motor Fuel Tax Fund shall be used to make payments to
17municipalities and for the payment of refunds under this
19    On or before the 25th day of each calendar month, the
20Department shall prepare and certify to the State Comptroller
21the disbursement of stated sums of money to named
22municipalities for which taxpayers have paid taxes or penalties
23under this Section to the Department during the second
24preceding calendar month. The amount to be paid to each
25municipality shall be the amount (not including credit
26memoranda) collected under this Section from retailers and



SB2298- 4 -LRB101 14837 AWJ 63822 b

1servicemen within the municipality during the second preceding
2calendar month by the Department from the tax imposed by that
3municipality under this Section during the second preceding
4calendar month, plus an amount the Department determines is
5necessary to offset amounts that were erroneously paid to a
6different municipality, and not including an amount equal to
7the amount of refunds made during the second preceding calendar
8month by the Department on behalf of the municipality, and not
9including any amount that the Department determines is
10necessary to offset any amounts that were payable to a
11different municipality but were erroneously paid to the
12municipality, less 1.5% of the remainder, which the Department
13shall transfer into the Tax Compliance and Administration Fund.
14The Department, at the time of each monthly disbursement, shall
15prepare and certify to the State Comptroller the amount to be
16transferred into the Tax Compliance and Administration Fund
17under this Section. Within 10 days after receipt by the
18Comptroller of the disbursement certification to the
19municipalities and the Tax Compliance and Administration Fund
20provided for in this Section to be given to the Comptroller by
21the Department, the Comptroller shall cause the orders to be
22drawn for the respective amounts in accordance with the
23directions contained in the certification.
24    Nothing in this Section shall be construed to authorize a
25municipality to impose a tax upon the privilege of engaging in
26any business which under the Constitution of the United States



SB2298- 5 -LRB101 14837 AWJ 63822 b

1may not be made the subject of taxation by this State.
2    An ordinance or resolution imposing or discontinuing the
3tax under this Section or effecting a change in the rate of the
4tax shall either: (i) be adopted and a certified copy of the
5ordinance or resolution be filed with the Department on or
6before April 1, whereupon the Department shall proceed to
7administer and enforce this Section as of the July 1 next
8following the adoption and filing; or (ii) be adopted and a
9certified copy of the ordinance or resolution be filed with the
10Department on or before October 1, whereupon the Department
11shall proceed to administer and enforce this Section as of the
12January 1 next following the adoption and filing.
13    An ordinance adopted in accordance with the provisions of
14this Section in effect before the effective date of this
15amendatory Act of the 101st General Assembly and filed with the
16Department of Revenue on or before January 1, 2020 shall be
17deemed to impose the tax, effective on April 1, 2020, in
18accordance with the provisions of this Section as amended by
19this amendatory Act of the 101st General Assembly and shall be
20administered by the Department of Revenue, effective April 1,
212020, in accordance with the provisions of this Section as
22amended by this amendatory Act of the 101st General Assembly;
23provided that, on or before October 1, 2020, the municipality
24adopts and files a certified copy of a superseding ordinance
25that imposes the tax in accordance with the provisions of this
26Section as amended by this amendatory Act of the 101st General



SB2298- 6 -LRB101 14837 AWJ 63822 b

1Assembly. If a superseding ordinance is not so adopted and
2filed, then the tax imposed in accordance with the provisions
3of this Section in effect before the effective date of this
4amendatory Act of the 101st General Assembly shall be
5discontinued on January 1, 2021.
6    This Section may be cited as the Municipal Motor Fuel Tax
8(Source: P.A. 101-32, eff. 6-28-19.)
9    Section 99. Effective date. This Act takes effect upon
10becoming law.