State of Illinois
2021 and 2022


Introduced 1/27/2022, by Rep. Michael Halpin


55 ILCS 5/5-1035.1  from Ch. 34, par. 5-1035.1

    Amends the County Motor Fuel Tax Law in the Counties Code. Defines "sold at retail within the county" and "retailers within the county". Effective January 1, 2023.

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HB5057LRB102 23520 AWJ 32702 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 Counties Code is amended by changing
5Section 5-1035.1 as follows:
6    (55 ILCS 5/5-1035.1)  (from Ch. 34, par. 5-1035.1)
7    Sec. 5-1035.1. County Motor Fuel Tax Law.
8    (a) The county board of the counties of DuPage, Kane,
9Lake, Will, and McHenry may, by an ordinance or resolution
10adopted by an affirmative vote of a majority of the members
11elected or appointed to the county board, impose a tax upon all
12persons engaged in the county in the business of selling motor
13fuel, as now or hereafter defined in the Motor Fuel Tax Law, at
14retail for the operation of motor vehicles upon public
15highways or for the operation of recreational watercraft upon
16waterways. The collection of a tax under this Section based on
17gallonage of gasoline used for the propulsion of any aircraft
18is prohibited, and the collection of a tax based on gallonage
19of special fuel used for the propulsion of any aircraft is
20prohibited on and after December 1, 2019. Kane County may
21exempt diesel fuel from the tax imposed pursuant to this
22Section. The initial tax rate may not be less than 4 cents per
23gallon of motor fuel sold at retail within the county for the



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1purpose of use or consumption and not for the purpose of resale
2and may not exceed 8 cents per gallon of motor fuel sold at
3retail within the county for the purpose of use or consumption
4and not for the purpose of resale. The proceeds from the tax
5shall be used by the county solely for the purposes of
6operating, constructing, and improving public highways,
7waterways, shared-use paths for nonvehicular public travel,
8sidewalks, and bike paths and acquiring real property and
9rights-of-way for public highways, waterways, shared-use paths
10for nonvehicular public travel, sidewalks, and bike paths
11within the county imposing the tax.
12    As used in this subsection, "sold at retail within the
13county" means the county where possession of the motor fuel is
14taken by the purchaser.
15    (a-5) By June 1, 2020, and by June 1 of each year
16thereafter, the Department of Revenue shall determine an
17annual rate increase to take effect on July 1 of that calendar
18year and continue through June 30 of the next calendar year.
19Not later than June 1 of each year, the Department of Revenue
20shall publish on its website the rate that will take effect on
21July 1 of that calendar year. The rate shall be equal to the
22rate in effect increased by an amount equal to the percentage
23increase, if any, in the Consumer Price Index for All Urban
24Consumers for all items, published by the United States
25Department of Labor for the 12 months ending in March of each
26year. The rate shall be rounded to the nearest one-tenth of one



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1cent. Each new rate may not exceed the rate in effect on June
230 of the previous year plus one cent.
3    (b) A tax imposed pursuant to this Section, and all civil
4penalties that may be assessed as an incident thereof, shall
5be administered, collected, and enforced by the Illinois
6Department of Revenue in the same manner as the tax imposed
7under the Retailers' Occupation Tax Act, as now or hereafter
8amended, insofar as may be practicable; except that in the
9event of a conflict with the provisions of this Section, this
10Section shall control. The Department of Revenue shall have
11full power: to administer and enforce this Section; to collect
12all taxes and penalties due hereunder; to dispose of taxes and
13penalties so collected in the manner hereinafter provided; and
14to determine all rights to credit memoranda arising on account
15of the erroneous payment of tax or penalty hereunder.
16    (b-5) Persons subject to any tax imposed under the
17authority granted in this Section may reimburse themselves for
18their seller's tax liability hereunder by separately stating
19that tax as an additional charge, which charge may be stated in
20combination, in a single amount, with State tax which sellers
21are required to collect under the Use Tax Act, pursuant to such
22bracket schedules as the Department may prescribe.
23    (c) Whenever the Department determines that a refund shall
24be made under this Section to a claimant instead of issuing a
25credit memorandum, the Department shall notify the State
26Comptroller, who shall cause the order to be drawn for the



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1amount specified, and to the person named, in the notification
2from the Department. The refund shall be paid by the State
3Treasurer out of the County Option Motor Fuel Tax Fund.
4    (d) The Department shall forthwith pay over to the State
5Treasurer, ex officio, as trustee, all taxes and penalties
6collected hereunder, which shall be deposited into the County
7Option Motor Fuel Tax Fund, a special fund in the State
8Treasury which is hereby created. On or before the 25th day of
9each calendar month, the Department shall prepare and certify
10to the State Comptroller the disbursement of stated sums of
11money to named counties for which taxpayers have paid taxes or
12penalties hereunder to the Department during the second
13preceding calendar month. The amount to be paid to each county
14shall be the amount (not including credit memoranda) collected
15hereunder from retailers within the county during the second
16preceding calendar month by the Department, but not including
17an amount equal to the amount of refunds made during the second
18preceding calendar month by the Department on behalf of the
19county; less 2% of the balance, which sum shall be retained by
20the State Treasurer to cover the costs incurred by the
21Department in administering and enforcing the provisions of
22this Section. The Department, at the time of each monthly
23disbursement to the counties, shall prepare and certify to the
24Comptroller the amount so retained by the State Treasurer,
25which shall be transferred into the Tax Compliance and
26Administration Fund.



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1    As used in this subsection, "retailers within the county"
2include anyone subject to tax under this Section in that
4    (e) Nothing in this Section shall be construed to
5authorize a county to impose a tax upon the privilege of
6engaging in any business which under the Constitution of the
7United States may not be made the subject of taxation by this
9    (f) Until January 1, 2020, an ordinance or resolution
10imposing a tax hereunder or effecting a change in the rate
11thereof shall be effective on the first day of the second
12calendar month next following the month in which the ordinance
13or resolution is adopted and a certified copy thereof is filed
14with the Department of Revenue, whereupon the Department of
15Revenue shall proceed to administer and enforce this Section
16on behalf of the county as of the effective date of the
17ordinance or resolution.
18    On and after January 1, 2020, an ordinance or resolution
19imposing or discontinuing the tax hereunder or effecting a
20change in the rate thereof shall either: (i) be adopted and a
21certified copy thereof filed with the Department on or before
22the first day of April, whereupon the Department shall proceed
23to administer and enforce this Section as of the first day of
24July next following the adoption and filing; or (ii) be
25adopted and a certified copy thereof filed with the Department
26on or before the first day of October, whereupon the



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1Department shall proceed to administer and enforce this
2Section as of the first day of January next following the
3adoption and filing.
4    (g) This Section shall be known and may be cited as the
5County Motor Fuel Tax Law.
6(Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19;
7101-275, eff. 8-9-19; 101-604, eff. 12-13-19; 102-452, eff.
9    Section 99. Effective date. This Act takes effect January
101, 2023.