Bill Text: IL HB1575 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Motor Fuel Tax Law. Provides that, beginning on July 1, 2023, the rate of tax shall be $0.19 per gallon (currently, 39.2 cents per gallon, adjusted each year according to the percentage increase in the Consumer Price Index), plus an additional 2 1/2 cents per gallon for diesel fuel, liquefied natural gas, or propane. Amends the Illinois Municipal Code. Provides that no tax may be imposed under the Municipal Motor Fuel Tax Law on or after July 1, 2023. Preempts the exercise of home rule powers. Effective immediately.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2023-03-16 - Added Co-Sponsor Rep. Chris Miller [HB1575 Detail]

Download: Illinois-2023-HB1575-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1575 Introduced , by Rep. Adam M. Niemerg SYNOPSIS AS INTRODUCED:
35 ILCS 505/2 from Ch. 120, par. 418
35 ILCS 505/8 from Ch. 120, par. 424
65 ILCS 5/8-11-2.3
Amends the Motor Fuel Tax Law. Provides that, beginning on July 1, 2023, the rate of tax shall be $0.19 per gallon (currently, 39.2 cents per gallon, adjusted each year according to the percentage increase in the Consumer Price Index), plus an additional 2 1/2 cents per gallon for diesel fuel, liquefied natural gas, or propane. Amends the Illinois Municipal Code. Provides that no tax may be imposed under the Municipal Motor Fuel Tax Law on or after July 1, 2023. Preempts the exercise of home rule powers. Effective immediately.
LRB103 26110 HLH 52465 b
A BILL FOR
HB1575 LRB103 26110 HLH 52465 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Motor Fuel Tax Law is amended by changing
Sections 2 and 8 as follows:
(35 ILCS 505/2) (from Ch. 120, par. 418)
Sec. 2. A tax is imposed on the privilege of operating
motor vehicles upon the public highways and recreational-type
watercraft upon the waters of this State.
(a) Prior to August 1, 1989, the tax is imposed at the rate
of 13 cents per gallon on all motor fuel used in motor vehicles
operating on the public highways and recreational type
watercraft operating upon the waters of this State. Beginning
on August 1, 1989 and until January 1, 1990, the rate of the
tax imposed in this paragraph shall be 16 cents per gallon.
Beginning January 1, 1990 and until July 1, 2019, the rate of
tax imposed in this paragraph, including the tax on compressed
natural gas, shall be 19 cents per gallon. Beginning July 1,
2019 and until July 1, 2020, the rate of tax imposed in this
paragraph shall be 38 cents per gallon. Beginning July 1, 2020
and until July 1, 2021, the rate of tax imposed in this
paragraph shall be 38.7 cents per gallon. Beginning July 1,
2021 and until January 1, 2023, the rate of tax imposed in this

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paragraph shall be 39.2 cents per gallon. On January 1, 2023
and until July 1, 2023, the rate of tax imposed in this
paragraph shall be increased by an amount equal to the
percentage increase, if any, in the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor for the 12 months ending in
September of 2022. Beginning on July 1, 2023, the rate of tax
imposed in this paragraph, including the tax on compressed
natural gas, shall be $0.19 per gallon. On July 1, 2023, and on
July 1 of each subsequent year, the rate of tax imposed in this
paragraph shall be increased by an amount equal to the
percentage increase, if any, in the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor for the 12 months ending in March of
the year in which the increase takes place. The rate shall be
rounded to the nearest one-tenth of one cent.
(a-5) Beginning on July 1, 2022 and through December 31,
2022, each retailer of motor fuel shall cause the following
notice to be posted in a prominently visible place on each
retail dispensing device that is used to dispense motor fuel
in the State of Illinois: "As of July 1, 2022, the State of
Illinois has suspended the inflation adjustment to the motor
fuel tax through December 31, 2022. The price on this pump
should reflect the suspension of the tax increase." The notice
shall be printed in bold print on a sign that is no smaller
than 4 inches by 8 inches. The sign shall be clearly visible to

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customers. Any retailer who fails to post or maintain a
required sign through December 31, 2022 is guilty of a petty
offense for which the fine shall be $500 per day per each
retail premises where a violation occurs.
(b) Until July 1, 2019 and beginning again on July 1, 2023,
the tax on the privilege of operating motor vehicles which use
diesel fuel, liquefied natural gas, or propane shall be the
rate according to paragraph (a) plus an additional 2 1/2 cents
per gallon. Beginning July 1, 2019 and until July 1, 2023, the
tax on the privilege of operating motor vehicles which use
diesel fuel, liquefied natural gas, or propane shall be the
rate according to subsection (a) plus an additional 7.5 cents
per gallon. "Diesel fuel" is defined as any product intended
for use or offered for sale as a fuel for engines in which the
fuel is injected into the combustion chamber and ignited by
pressure without electric spark.
(c) A tax is imposed upon the privilege of engaging in the
business of selling motor fuel as a retailer or reseller on all
motor fuel used in motor vehicles operating on the public
highways and recreational type watercraft operating upon the
waters of this State: (1) at the rate of 3 cents per gallon on
motor fuel owned or possessed by such retailer or reseller at
12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
per gallon on motor fuel owned or possessed by such retailer or
reseller at 12:01 A.M. on January 1, 1990.
Retailers and resellers who are subject to this additional

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tax shall be required to inventory such motor fuel and pay this
additional tax in a manner prescribed by the Department of
Revenue.
The tax imposed in this paragraph (c) shall be in addition
to all other taxes imposed by the State of Illinois or any unit
of local government in this State.
(d) Except as provided in Section 2a, the collection of a
tax based on gallonage of gasoline used for the propulsion of
any aircraft is prohibited on and after October 1, 1979, and
the collection of a tax based on gallonage of special fuel used
for the propulsion of any aircraft is prohibited on and after
December 1, 2019.
(e) The collection of a tax, based on gallonage of all
products commonly or commercially known or sold as 1-K
kerosene, regardless of its classification or uses, is
prohibited (i) on and after July 1, 1992 until December 31,
1999, except when the 1-K kerosene is either: (1) delivered
into bulk storage facilities of a bulk user, or (2) delivered
directly into the fuel supply tanks of motor vehicles and (ii)
on and after January 1, 2000. Beginning on January 1, 2000, the
collection of a tax, based on gallonage of all products
commonly or commercially known or sold as 1-K kerosene,
regardless of its classification or uses, is prohibited except
when the 1-K kerosene is delivered directly into a storage
tank that is located at a facility that has withdrawal
facilities that are readily accessible to and are capable of

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dispensing 1-K kerosene into the fuel supply tanks of motor
vehicles. For purposes of this subsection (e), a facility is
considered to have withdrawal facilities that are not "readily
accessible to and capable of dispensing 1-K kerosene into the
fuel supply tanks of motor vehicles" only if the 1-K kerosene
is delivered from: (i) a dispenser hose that is short enough so
that it will not reach the fuel supply tank of a motor vehicle
or (ii) a dispenser that is enclosed by a fence or other
physical barrier so that a vehicle cannot pull alongside the
dispenser to permit fueling.
Any person who sells or uses 1-K kerosene for use in motor
vehicles upon which the tax imposed by this Law has not been
paid shall be liable for any tax due on the sales or use of 1-K
kerosene.
(Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19;
101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
(35 ILCS 505/8) (from Ch. 120, par. 424)
Sec. 8. Except as provided in subsection (a-1) of this
Section, Section 8a, subdivision (h)(1) of Section 12a,
Section 13a.6, and items 13, 14, 15, and 16 of Section 15, all
money received by the Department under this Act, including
payments made to the Department by member jurisdictions
participating in the International Fuel Tax Agreement, shall
be deposited in a special fund in the State treasury, to be
known as the "Motor Fuel Tax Fund", and shall be used as

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follows:
(a) 2 1/2 cents per gallon of the tax collected on special
fuel under paragraph (b) of Section 2 and Section 13a of this
Act shall be transferred to the State Construction Account
Fund in the State Treasury; the remainder of the tax collected
on special fuel under paragraph (b) of Section 2 and Section
13a of this Act shall be deposited into the Road Fund;
(a-1) Beginning on July 1, 2019 and until July 1, 2023, an
amount equal to the amount of tax collected under subsection
(a) of Section 2 as a result of the increase in the tax rate
under Public Act 101-32 shall be transferred each month into
the Transportation Renewal Fund;
(b) $420,000 shall be transferred each month to the State
Boating Act Fund to be used by the Department of Natural
Resources for the purposes specified in Article X of the Boat
Registration and Safety Act;
(c) $3,500,000 shall be transferred each month to the
Grade Crossing Protection Fund to be used as follows: not less
than $12,000,000 each fiscal year shall be used for the
construction or reconstruction of rail highway grade
separation structures; $5,500,000 in fiscal year 2022 and each
fiscal year thereafter shall be transferred to the
Transportation Regulatory Fund and shall be used to pay the
cost of administration of the Illinois Commerce Commission's
railroad safety program in connection with its duties under
subsection (3) of Section 18c-7401 of the Illinois Vehicle

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Code, with the remainder to be used by the Department of
Transportation upon order of the Illinois Commerce Commission,
to pay that part of the cost apportioned by such Commission to
the State to cover the interest of the public in the use of
highways, roads, streets, or pedestrian walkways in the county
highway system, township and district road system, or
municipal street system as defined in the Illinois Highway
Code, as the same may from time to time be amended, for
separation of grades, for installation, construction or
reconstruction of crossing protection or reconstruction,
alteration, relocation including construction or improvement
of any existing highway necessary for access to property or
improvement of any grade crossing and grade crossing surface
including the necessary highway approaches thereto of any
railroad across the highway or public road, or for the
installation, construction, reconstruction, or maintenance of
safety treatments to deter trespassing or a pedestrian walkway
over or under a railroad right-of-way, as provided for in and
in accordance with Section 18c-7401 of the Illinois Vehicle
Code. The Commission may order up to $2,000,000 per year in
Grade Crossing Protection Fund moneys for the improvement of
grade crossing surfaces and up to $300,000 per year for the
maintenance and renewal of 4-quadrant gate vehicle detection
systems located at non-high speed rail grade crossings. In
entering orders for projects for which payments from the Grade
Crossing Protection Fund will be made, the Commission shall

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account for expenditures authorized by the orders on a cash
rather than an accrual basis. For purposes of this requirement
an "accrual basis" assumes that the total cost of the project
is expended in the fiscal year in which the order is entered,
while a "cash basis" allocates the cost of the project among
fiscal years as expenditures are actually made. To meet the
requirements of this subsection, the Illinois Commerce
Commission shall develop annual and 5-year project plans of
rail crossing capital improvements that will be paid for with
moneys from the Grade Crossing Protection Fund. The annual
project plan shall identify projects for the succeeding fiscal
year and the 5-year project plan shall identify projects for
the 5 directly succeeding fiscal years. The Commission shall
submit the annual and 5-year project plans for this Fund to the
Governor, the President of the Senate, the Senate Minority
Leader, the Speaker of the House of Representatives, and the
Minority Leader of the House of Representatives on the first
Wednesday in April of each year;
(d) of the amount remaining after allocations provided for
in subsections (a), (a-1), (b), and (c), a sufficient amount
shall be reserved to pay all of the following:
(1) the costs of the Department of Revenue in
administering this Act;
(2) the costs of the Department of Transportation in
performing its duties imposed by the Illinois Highway Code
for supervising the use of motor fuel tax funds

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apportioned to municipalities, counties and road
districts;
(3) refunds provided for in Section 13, refunds for
overpayment of decal fees paid under Section 13a.4 of this
Act, and refunds provided for under the terms of the
International Fuel Tax Agreement referenced in Section
14a;
(4) from October 1, 1985 until June 30, 1994, the
administration of the Vehicle Emissions Inspection Law,
which amount shall be certified monthly by the
Environmental Protection Agency to the State Comptroller
and shall promptly be transferred by the State Comptroller
and Treasurer from the Motor Fuel Tax Fund to the Vehicle
Inspection Fund, and for the period July 1, 1994 through
June 30, 2000, one-twelfth of $25,000,000 each month, for
the period July 1, 2000 through June 30, 2003, one-twelfth
of $30,000,000 each month, and $15,000,000 on July 1,
2003, and $15,000,000 on January 1, 2004, and $15,000,000
on each July 1 and October 1, or as soon thereafter as may
be practical, during the period July 1, 2004 through June
30, 2012, and $30,000,000 on June 1, 2013, or as soon
thereafter as may be practical, and $15,000,000 on July 1
and October 1, or as soon thereafter as may be practical,
during the period of July 1, 2013 through June 30, 2015,
for the administration of the Vehicle Emissions Inspection
Law of 2005, to be transferred by the State Comptroller

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and Treasurer from the Motor Fuel Tax Fund into the
Vehicle Inspection Fund;
(4.5) beginning on July 1, 2019, the costs of the
Environmental Protection Agency for the administration of
the Vehicle Emissions Inspection Law of 2005 shall be
paid, subject to appropriation, from the Motor Fuel Tax
Fund into the Vehicle Inspection Fund; beginning in 2019,
no later than December 31 of each year, or as soon
thereafter as practical, the State Comptroller shall
direct and the State Treasurer shall transfer from the
Vehicle Inspection Fund to the Motor Fuel Tax Fund any
balance remaining in the Vehicle Inspection Fund in excess
of $2,000,000;
(5) amounts ordered paid by the Court of Claims; and
(6) payment of motor fuel use taxes due to member
jurisdictions under the terms of the International Fuel
Tax Agreement. The Department shall certify these amounts
to the Comptroller by the 15th day of each month; the
Comptroller shall cause orders to be drawn for such
amounts, and the Treasurer shall administer those amounts
on or before the last day of each month;
(e) after allocations for the purposes set forth in
subsections (a), (a-1), (b), (c), and (d), the remaining
amount shall be apportioned as follows:
(1) Until January 1, 2000, 58.4%, and beginning
January 1, 2000, 45.6% shall be deposited as follows:

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(A) 37% into the State Construction Account Fund,
and
(B) 63% into the Road Fund, $1,250,000 of which
shall be reserved each month for the Department of
Transportation to be used in accordance with the
provisions of Sections 6-901 through 6-906 of the
Illinois Highway Code;
(2) Until January 1, 2000, 41.6%, and beginning
January 1, 2000, 54.4% shall be transferred to the
Department of Transportation to be distributed as follows:
(A) 49.10% to the municipalities of the State,
(B) 16.74% to the counties of the State having
1,000,000 or more inhabitants,
(C) 18.27% to the counties of the State having
less than 1,000,000 inhabitants,
(D) 15.89% to the road districts of the State.
If a township is dissolved under Article 24 of the
Township Code, McHenry County shall receive any moneys
that would have been distributed to the township under
this subparagraph, except that a municipality that assumes
the powers and responsibilities of a road district under
paragraph (6) of Section 24-35 of the Township Code shall
receive any moneys that would have been distributed to the
township in a percent equal to the area of the dissolved
road district or portion of the dissolved road district
over which the municipality assumed the powers and

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responsibilities compared to the total area of the
dissolved township. The moneys received under this
subparagraph shall be used in the geographic area of the
dissolved township. If a township is reconstituted as
provided under Section 24-45 of the Township Code, McHenry
County or a municipality shall no longer be distributed
moneys under this subparagraph.
As soon as may be after the first day of each month, the
Department of Transportation shall allot to each municipality
its share of the amount apportioned to the several
municipalities which shall be in proportion to the population
of such municipalities as determined by the last preceding
municipal census if conducted by the Federal Government or
Federal census. If territory is annexed to any municipality
subsequent to the time of the last preceding census the
corporate authorities of such municipality may cause a census
to be taken of such annexed territory and the population so
ascertained for such territory shall be added to the
population of the municipality as determined by the last
preceding census for the purpose of determining the allotment
for that municipality. If the population of any municipality
was not determined by the last Federal census preceding any
apportionment, the apportionment to such municipality shall be
in accordance with any census taken by such municipality. Any
municipal census used in accordance with this Section shall be
certified to the Department of Transportation by the clerk of

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such municipality, and the accuracy thereof shall be subject
to approval of the Department which may make such corrections
as it ascertains to be necessary.
As soon as may be after the first day of each month, the
Department of Transportation shall allot to each county its
share of the amount apportioned to the several counties of the
State as herein provided. Each allotment to the several
counties having less than 1,000,000 inhabitants shall be in
proportion to the amount of motor vehicle license fees
received from the residents of such counties, respectively,
during the preceding calendar year. The Secretary of State
shall, on or before April 15 of each year, transmit to the
Department of Transportation a full and complete report
showing the amount of motor vehicle license fees received from
the residents of each county, respectively, during the
preceding calendar year. The Department of Transportation
shall, each month, use for allotment purposes the last such
report received from the Secretary of State.
As soon as may be after the first day of each month, the
Department of Transportation shall allot to the several
counties their share of the amount apportioned for the use of
road districts. The allotment shall be apportioned among the
several counties in the State in the proportion which the
total mileage of township or district roads in the respective
counties bears to the total mileage of all township and
district roads in the State. Funds allotted to the respective

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counties for the use of road districts therein shall be
allocated to the several road districts in the county in the
proportion which the total mileage of such township or
district roads in the respective road districts bears to the
total mileage of all such township or district roads in the
county. After July 1 of any year prior to 2011, no allocation
shall be made for any road district unless it levied a tax for
road and bridge purposes in an amount which will require the
extension of such tax against the taxable property in any such
road district at a rate of not less than either .08% of the
value thereof, based upon the assessment for the year
immediately prior to the year in which such tax was levied and
as equalized by the Department of Revenue or, in DuPage
County, an amount equal to or greater than $12,000 per mile of
road under the jurisdiction of the road district, whichever is
less. Beginning July 1, 2011 and each July 1 thereafter, an
allocation shall be made for any road district if it levied a
tax for road and bridge purposes. In counties other than
DuPage County, if the amount of the tax levy requires the
extension of the tax against the taxable property in the road
district at a rate that is less than 0.08% of the value
thereof, based upon the assessment for the year immediately
prior to the year in which the tax was levied and as equalized
by the Department of Revenue, then the amount of the
allocation for that road district shall be a percentage of the
maximum allocation equal to the percentage obtained by

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dividing the rate extended by the district by 0.08%. In DuPage
County, if the amount of the tax levy requires the extension of
the tax against the taxable property in the road district at a
rate that is less than the lesser of (i) 0.08% of the value of
the taxable property in the road district, based upon the
assessment for the year immediately prior to the year in which
such tax was levied and as equalized by the Department of
Revenue, or (ii) a rate that will yield an amount equal to
$12,000 per mile of road under the jurisdiction of the road
district, then the amount of the allocation for the road
district shall be a percentage of the maximum allocation equal
to the percentage obtained by dividing the rate extended by
the district by the lesser of (i) 0.08% or (ii) the rate that
will yield an amount equal to $12,000 per mile of road under
the jurisdiction of the road district.
Prior to 2011, if any road district has levied a special
tax for road purposes pursuant to Sections 6-601, 6-602, and
6-603 of the Illinois Highway Code, and such tax was levied in
an amount which would require extension at a rate of not less
than .08% of the value of the taxable property thereof, as
equalized or assessed by the Department of Revenue, or, in
DuPage County, an amount equal to or greater than $12,000 per
mile of road under the jurisdiction of the road district,
whichever is less, such levy shall, however, be deemed a
proper compliance with this Section and shall qualify such
road district for an allotment under this Section. Beginning

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in 2011 and thereafter, if any road district has levied a
special tax for road purposes under Sections 6-601, 6-602, and
6-603 of the Illinois Highway Code, and the tax was levied in
an amount that would require extension at a rate of not less
than 0.08% of the value of the taxable property of that road
district, as equalized or assessed by the Department of
Revenue or, in DuPage County, an amount equal to or greater
than $12,000 per mile of road under the jurisdiction of the
road district, whichever is less, that levy shall be deemed a
proper compliance with this Section and shall qualify such
road district for a full, rather than proportionate, allotment
under this Section. If the levy for the special tax is less
than 0.08% of the value of the taxable property, or, in DuPage
County if the levy for the special tax is less than the lesser
of (i) 0.08% or (ii) $12,000 per mile of road under the
jurisdiction of the road district, and if the levy for the
special tax is more than any other levy for road and bridge
purposes, then the levy for the special tax qualifies the road
district for a proportionate, rather than full, allotment
under this Section. If the levy for the special tax is equal to
or less than any other levy for road and bridge purposes, then
any allotment under this Section shall be determined by the
other levy for road and bridge purposes.
Prior to 2011, if a township has transferred to the road
and bridge fund money which, when added to the amount of any
tax levy of the road district would be the equivalent of a tax

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levy requiring extension at a rate of at least .08%, or, in
DuPage County, an amount equal to or greater than $12,000 per
mile of road under the jurisdiction of the road district,
whichever is less, such transfer, together with any such tax
levy, shall be deemed a proper compliance with this Section
and shall qualify the road district for an allotment under
this Section.
In counties in which a property tax extension limitation
is imposed under the Property Tax Extension Limitation Law,
road districts may retain their entitlement to a motor fuel
tax allotment or, beginning in 2011, their entitlement to a
full allotment if, at the time the property tax extension
limitation was imposed, the road district was levying a road
and bridge tax at a rate sufficient to entitle it to a motor
fuel tax allotment and continues to levy the maximum allowable
amount after the imposition of the property tax extension
limitation. Any road district may in all circumstances retain
its entitlement to a motor fuel tax allotment or, beginning in
2011, its entitlement to a full allotment if it levied a road
and bridge tax in an amount that will require the extension of
the tax against the taxable property in the road district at a
rate of not less than 0.08% of the assessed value of the
property, based upon the assessment for the year immediately
preceding the year in which the tax was levied and as equalized
by the Department of Revenue or, in DuPage County, an amount
equal to or greater than $12,000 per mile of road under the

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jurisdiction of the road district, whichever is less.
As used in this Section, the term "road district" means
any road district, including a county unit road district,
provided for by the Illinois Highway Code; and the term
"township or district road" means any road in the township and
district road system as defined in the Illinois Highway Code.
For the purposes of this Section, "township or district road"
also includes such roads as are maintained by park districts,
forest preserve districts and conservation districts. The
Department of Transportation shall determine the mileage of
all township and district roads for the purposes of making
allotments and allocations of motor fuel tax funds for use in
road districts.
Payment of motor fuel tax moneys to municipalities and
counties shall be made as soon as possible after the allotment
is made. The treasurer of the municipality or county may
invest these funds until their use is required and the
interest earned by these investments shall be limited to the
same uses as the principal funds.
(Source: P.A. 101-32, eff. 6-28-19; 101-230, eff. 8-9-19;
101-493, eff. 8-23-19; 102-16, eff. 6-17-21; 102-558, eff.
8-20-21; 102-699, eff. 4-19-22.)
Section 10. The Illinois Municipal Code is amended by
changing Section 8-11-2.3 as follows:

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(65 ILCS 5/8-11-2.3)
Sec. 8-11-2.3. Municipal Motor Fuel Tax Law.
Notwithstanding any other provision of law, in addition to any
other tax that may be imposed, a municipality in a county with
a population of over 3,000,000 inhabitants may also impose, by
ordinance, a tax upon all persons engaged in the municipality
in the business of selling motor fuel, as defined in the Motor
Fuel Tax Law, at retail for the operation of motor vehicles
upon public highways or for the operation of recreational
watercraft upon waterways. The tax may be imposed, in one cent
increments, at a rate not to exceed $0.03 per gallon of motor
fuel sold at retail within the municipality for the purpose of
use or consumption and not for the purpose of resale. The tax
may not be imposed under this Section on aviation fuel, as
defined in Section 3 of the Retailers' Occupation Tax Act.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
A tax imposed pursuant to this Section, 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

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Retailers' Occupation Tax Act, as now or hereafter amended,
insofar as may be practicable; except that in the event of a
conflict with the provisions of this Section, this Section
shall control. The Department of Revenue shall have full power
to: administer and enforce this Section; collect all taxes and
penalties due hereunder; dispose of taxes and penalties so
collected in the manner hereinafter provided; and determine
all rights to credit memoranda arising on account of the
erroneous payment of tax or penalty hereunder.
Whenever the Department determines that a refund shall be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Municipal Motor Fuel Tax Fund.
The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section. Those taxes and penalties shall
be deposited into the Municipal Motor Fuel Tax Fund, a trust
fund created in the State treasury. Moneys in the Municipal
Motor Fuel Tax Fund shall be used to make payments to
municipalities and for the payment of refunds under this
Section.
On or before the 25th day of each calendar month, the
Department shall prepare and certify to the State Comptroller

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the disbursement of stated sums of money to named
municipalities for which taxpayers have paid taxes or
penalties hereunder to the Department during the second
preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda) collected under this Section from retailers within
the municipality during the second preceding calendar month by
the Department, plus an amount the Department determines is
necessary to offset amounts that were erroneously paid to a
different municipality, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of the
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different municipality but were erroneously paid
to the municipality, less 1.5% of the remainder, which the
Department shall transfer into the Tax Compliance and
Administration Fund. The Department, at the time of each
monthly disbursement, shall prepare and certify to the State
Comptroller the amount to be transferred into the Tax
Compliance and Administration Fund under this Section. Within
10 days after receipt by the Comptroller of the disbursement
certification to the municipalities and the Tax Compliance and
Administration Fund provided for in this Section to be given
to the Comptroller by the Department, the Comptroller shall
cause the orders to be drawn for the respective amounts in

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accordance with the directions contained in the certification.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing the
tax under this Section or effecting a change in the rate
thereof shall either: (i) be adopted and a certified copy
thereof filed with the Department on or before the first day of
April, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of July next
following the adoption and filing; or (ii) be adopted and a
certified copy thereof filed with the Department on or before
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following the adoption and filing.
An ordinance adopted in accordance with the provisions of
this Section in effect before the effective date of this
amendatory Act of the 101st General Assembly shall be deemed
to impose the tax in accordance with the provisions of this
Section as amended by this amendatory Act of the 101st General
Assembly and shall be administered by the Department of
Revenue in accordance with the provisions of this Section as
amended by this amendatory Act of the 101st General Assembly;
provided that, on or before October 1, 2020, the municipality
adopts and files a certified copy of a superseding ordinance

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that imposes the tax in accordance with the provisions of this
Section as amended by this amendatory Act of the 101st General
Assembly. If a superseding ordinance is not so adopted and
filed, then the tax imposed in accordance with the provisions
of this Section in effect before the effective date of this
amendatory Act of the 101st General Assembly shall be
discontinued on January 1, 2021.
This Section shall be known and may be cited as the
Municipal Motor Fuel Tax Law.
No tax may be imposed under this Section on or after July
1, 2023. This is a denial and limitation under subsection (g)
of Section 6 of Article VII of the Illinois Constitution of the
power of a home rule municipality to impose a tax.
(Source: P.A. 101-32, eff. 6-28-19; 101-604, eff. 12-13-19.)
Section 99. Effective date. This Act takes effect upon
becoming law.