Illinois-2023-HB1575-Introduced

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.

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A BILL FOR

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1 AN ACT concerning revenue.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The Motor Fuel Tax Law is amended by changing

5 Sections 2 and 8 as follows:

6 (35 ILCS 505/2) (from Ch. 120, par. 418)

7 Sec. 2. A tax is imposed on the privilege of operating

8 motor vehicles upon the public highways and recreational-type

9 watercraft upon the waters of 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 until July 1, 2019, the rate of

17 tax imposed in this paragraph, including the tax on compressed

18 natural gas, shall be 19 cents per gallon. Beginning July 1,

19 2019 and until July 1, 2020, the rate of tax imposed in this

20 paragraph shall be 38 cents per gallon. Beginning July 1, 2020

21 and until July 1, 2021, the rate of tax imposed in this

22 paragraph shall be 38.7 cents per gallon. Beginning July 1,

23 2021 and until January 1, 2023, the rate of tax imposed in this

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1 paragraph shall be 39.2 cents per gallon. On January 1, 2023

2 and until July 1, 2023, the rate of tax imposed in this

3 paragraph shall be increased by an amount equal to the

4 percentage increase, if any, in the Consumer Price Index for

5 All Urban Consumers for all items published by the United

6 States Department of Labor for the 12 months ending in

7 September of 2022. Beginning on July 1, 2023, the rate of tax

8 imposed in this paragraph, including the tax on compressed

9 natural gas, shall be $0.19 per gallon. ~~On July 1, 2023, and on~~

10 ~~July 1 of each subsequent year, the rate of tax imposed in this~~

11 ~~paragraph shall be increased by an amount equal to the~~

12 ~~percentage increase, if any, in the Consumer Price Index for~~

13 ~~All Urban Consumers for all items published by the United~~

14 ~~States Department of Labor for the 12 months ending in March of~~

15 ~~the year in which the increase takes place. The rate shall be~~

16 ~~rounded to the nearest one-tenth of one cent.~~

17 (a-5) Beginning on July 1, 2022 and through December 31,

18 2022, each retailer of motor fuel shall cause the following

19 notice to be posted in a prominently visible place on each

20 retail dispensing device that is used to dispense motor fuel

21 in the State of Illinois: "As of July 1, 2022, the State of

22 Illinois has suspended the inflation adjustment to the motor

23 fuel tax through December 31, 2022. The price on this pump

24 should reflect the suspension of the tax increase." The notice

25 shall be printed in bold print on a sign that is no smaller

26 than 4 inches by 8 inches. The sign shall be clearly visible to

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1 customers. Any retailer who fails to post or maintain a

2 required sign through December 31, 2022 is guilty of a petty

3 offense for which the fine shall be $500 per day per each

4 retail premises where a violation occurs.

5 (b) Until July 1, 2019 and beginning again on July 1, 2023,

6 the tax on the privilege of operating motor vehicles which use

7 diesel fuel, liquefied natural gas, or propane shall be the

8 rate according to paragraph (a) plus an additional 2 1/2 cents

9 per gallon. Beginning July 1, 2019 and until July 1, 2023, the

10 tax on the privilege of operating motor vehicles which use

11 diesel fuel, liquefied natural gas, or propane shall be the

12 rate according to subsection (a) plus an additional 7.5 cents

13 per gallon. "Diesel fuel" is defined as any product intended

14 for use or offered for sale as a fuel for engines in which the

15 fuel is injected into the combustion chamber and ignited by

16 pressure without electric spark.

17 (c) A tax is imposed upon the privilege of engaging in the

18 business of selling motor fuel as a retailer or reseller on all

19 motor fuel used in motor vehicles operating on the public

20 highways and recreational type watercraft operating upon the

21 waters of this State: (1) at the rate of 3 cents per gallon on

22 motor fuel owned or possessed by such retailer or reseller at

23 12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents

24 per gallon on motor fuel owned or possessed by such retailer or

25 reseller at 12:01 A.M. on January 1, 1990.

26 Retailers and resellers who are subject to this additional

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1 tax shall be required to inventory such motor fuel and pay this

2 additional tax in a manner prescribed by the Department of

3 Revenue.

4 The tax imposed in this paragraph (c) shall be in addition

5 to all other taxes imposed by the State of Illinois or any unit

6 of local government in this State.

7 (d) Except as provided in Section 2a, the collection of a

8 tax based on gallonage of gasoline used for the propulsion of

9 any aircraft is prohibited on and after October 1, 1979, and

10 the collection of a tax based on gallonage of special fuel used

11 for the propulsion of any aircraft is prohibited on and after

12 December 1, 2019.

13 (e) The collection of a tax, based on gallonage of all

14 products commonly or commercially known or sold as 1-K

15 kerosene, regardless of its classification or uses, is

16 prohibited (i) on and after July 1, 1992 until December 31,

17 1999, except when the 1-K kerosene is either: (1) delivered

18 into bulk storage facilities of a bulk user, or (2) delivered

19 directly into the fuel supply tanks of motor vehicles and (ii)

20 on and after January 1, 2000. Beginning on January 1, 2000, the

21 collection of a tax, based on gallonage of all products

22 commonly or commercially known or sold as 1-K kerosene,

23 regardless of its classification or uses, is prohibited except

24 when the 1-K kerosene is delivered directly into a storage

25 tank that is located at a facility that has withdrawal

26 facilities that are readily accessible to and are capable of

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1 dispensing 1-K kerosene into the fuel supply tanks of motor

2 vehicles. For purposes of this subsection (e), a facility is

3 considered to have withdrawal facilities that are not "readily

4 accessible to and capable of dispensing 1-K kerosene into the

5 fuel supply tanks of motor vehicles" only if the 1-K kerosene

6 is delivered from: (i) a dispenser hose that is short enough so

7 that it will not reach the fuel supply tank of a motor vehicle

8 or (ii) a dispenser that is enclosed by a fence or other

9 physical barrier so that a vehicle cannot pull alongside the

10 dispenser to permit fueling.

11 Any person who sells or uses 1-K kerosene for use in motor

12 vehicles upon which the tax imposed by this Law has not been

13 paid shall be liable for any tax due on the sales or use of 1-K

14 kerosene.

15 (Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19;

16 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)

17 (35 ILCS 505/8) (from Ch. 120, par. 424)

18 Sec. 8. Except as provided in subsection (a-1) of this

19 Section, Section 8a, subdivision (h)(1) of Section 12a,

20 Section 13a.6, and items 13, 14, 15, and 16 of Section 15, all

21 money received by the Department under this Act, including

22 payments made to the Department by member jurisdictions

23 participating in the International Fuel Tax Agreement, shall

24 be deposited in a special fund in the State treasury, to be

25 known as the "Motor Fuel Tax Fund", and shall be used as

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1 follows:

2 (a) 2 1/2 cents per gallon of the tax collected on special

3 fuel under paragraph (b) of Section 2 and Section 13a of this

4 Act shall be transferred to the State Construction Account

5 Fund in the State Treasury; the remainder of the tax collected

6 on special fuel under paragraph (b) of Section 2 and Section

7 13a of this Act shall be deposited into the Road Fund;

8 (a-1) Beginning on July 1, 2019 and until July 1, 2023, an

9 amount equal to the amount of tax collected under subsection

10 (a) of Section 2 as a result of the increase in the tax rate

11 under Public Act 101-32 shall be transferred each month into

12 the Transportation Renewal Fund;

13 (b) $420,000 shall be transferred each month to the State

14 Boating Act Fund to be used by the Department of Natural

15 Resources for the purposes specified in Article X of the Boat

16 Registration and Safety Act;

17 (c) $3,500,000 shall be transferred each month to the

18 Grade Crossing Protection Fund to be used as follows: not less

19 than $12,000,000 each fiscal year shall be used for the

20 construction or reconstruction of rail highway grade

21 separation structures; $5,500,000 in fiscal year 2022 and each

22 fiscal year thereafter shall be transferred to the

23 Transportation Regulatory Fund and shall be used to pay the

24 cost of administration of the Illinois Commerce Commission's

25 railroad safety program in connection with its duties under

26 subsection (3) of Section 18c-7401 of the Illinois Vehicle

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1 Code, with the remainder to be used by the Department of

2 Transportation upon order of the Illinois Commerce Commission,

3 to pay that part of the cost apportioned by such Commission to

4 the State to cover the interest of the public in the use of

5 highways, roads, streets, or pedestrian walkways in the county

6 highway system, township and district road system, or

7 municipal street system as defined in the Illinois Highway

8 Code, as the same may from time to time be amended, for

9 separation of grades, for installation, construction or

10 reconstruction of crossing protection or reconstruction,

11 alteration, relocation including construction or improvement

12 of any existing highway necessary for access to property or

13 improvement of any grade crossing and grade crossing surface

14 including the necessary highway approaches thereto of any

15 railroad across the highway or public road, or for the

16 installation, construction, reconstruction, or maintenance of

17 safety treatments to deter trespassing or a pedestrian walkway

18 over or under a railroad right-of-way, as provided for in and

19 in accordance with Section 18c-7401 of the Illinois Vehicle

20 Code. The Commission may order up to $2,000,000 per year in

21 Grade Crossing Protection Fund moneys for the improvement of

22 grade crossing surfaces and up to $300,000 per year for the

23 maintenance and renewal of 4-quadrant gate vehicle detection

24 systems located at non-high speed rail grade crossings. In

25 entering orders for projects for which payments from the Grade

26 Crossing Protection Fund will be made, the Commission shall

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1 account for expenditures authorized by the orders on a cash

2 rather than an accrual basis. For purposes of this requirement

3 an "accrual basis" assumes that the total cost of the project

4 is expended in the fiscal year in which the order is entered,

5 while a "cash basis" allocates the cost of the project among

6 fiscal years as expenditures are actually made. To meet the

7 requirements of this subsection, the Illinois Commerce

8 Commission shall develop annual and 5-year project plans of

9 rail crossing capital improvements that will be paid for with

10 moneys from the Grade Crossing Protection Fund. The annual

11 project plan shall identify projects for the succeeding fiscal

12 year and the 5-year project plan shall identify projects for

13 the 5 directly succeeding fiscal years. The Commission shall

14 submit the annual and 5-year project plans for this Fund to the

15 Governor, the President of the Senate, the Senate Minority

16 Leader, the Speaker of the House of Representatives, and the

17 Minority Leader of the House of Representatives on the first

18 Wednesday in April of each year;

19 (d) of the amount remaining after allocations provided for

20 in subsections (a), (a-1), (b), and (c), a sufficient amount

21 shall be reserved to pay all of the following:

22 (1) the costs of the Department of Revenue in

23 administering this Act;

24 (2) the costs of the Department of Transportation in

25 performing its duties imposed by the Illinois Highway Code

26 for supervising the use of motor fuel tax funds

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1 apportioned to municipalities, counties and road

2 districts;

3 (3) refunds provided for in Section 13, refunds for

4 overpayment of decal fees paid under Section 13a.4 of this

5 Act, and refunds provided for under the terms of the

6 International Fuel Tax Agreement referenced in Section

7 14a;

8 (4) from October 1, 1985 until June 30, 1994, the

9 administration of the Vehicle Emissions Inspection Law,

10 which amount shall be certified monthly by the

11 Environmental Protection Agency to the State Comptroller

12 and shall promptly be transferred by the State Comptroller

13 and Treasurer from the Motor Fuel Tax Fund to the Vehicle

14 Inspection Fund, and for the period July 1, 1994 through

15 June 30, 2000, one-twelfth of $25,000,000 each month, for

16 the period July 1, 2000 through June 30, 2003, one-twelfth

17 of $30,000,000 each month, and $15,000,000 on July 1,

18 2003, and $15,000,000 on January 1, 2004, and $15,000,000

19 on each July 1 and October 1, or as soon thereafter as may

20 be practical, during the period July 1, 2004 through June

21 30, 2012, and $30,000,000 on June 1, 2013, or as soon

22 thereafter as may be practical, and $15,000,000 on July 1

23 and October 1, or as soon thereafter as may be practical,

24 during the period of July 1, 2013 through June 30, 2015,

25 for the administration of the Vehicle Emissions Inspection

26 Law of 2005, to be transferred by the State Comptroller

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1 and Treasurer from the Motor Fuel Tax Fund into the

2 Vehicle Inspection Fund;

3 (4.5) beginning on July 1, 2019, the costs of the

4 Environmental Protection Agency for the administration of

5 the Vehicle Emissions Inspection Law of 2005 shall be

6 paid, subject to appropriation, from the Motor Fuel Tax

7 Fund into the Vehicle Inspection Fund; beginning in 2019,

8 no later than December 31 of each year, or as soon

9 thereafter as practical, the State Comptroller shall

10 direct and the State Treasurer shall transfer from the

11 Vehicle Inspection Fund to the Motor Fuel Tax Fund any

12 balance remaining in the Vehicle Inspection Fund in excess

13 of $2,000,000;

14 (5) amounts ordered paid by the Court of Claims; and

15 (6) payment of motor fuel use taxes due to member

16 jurisdictions under the terms of the International Fuel

17 Tax Agreement. The Department shall certify these amounts

18 to the Comptroller by the 15th day of each month; the

19 Comptroller shall cause orders to be drawn for such

20 amounts, and the Treasurer shall administer those amounts

21 on or before the last day of each month;

22 (e) after allocations for the purposes set forth in

23 subsections (a), (a-1), (b), (c), and (d), the remaining

24 amount shall be apportioned as follows:

25 (1) Until January 1, 2000, 58.4%, and beginning

26 January 1, 2000, 45.6% shall be deposited as follows:

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1 (A) 37% into the State Construction Account Fund,

2 and

3 (B) 63% into the Road Fund, $1,250,000 of which

4 shall be reserved each month for the Department of

5 Transportation to be used in accordance with the

6 provisions of Sections 6-901 through 6-906 of the

7 Illinois Highway Code;

8 (2) Until January 1, 2000, 41.6%, and beginning

9 January 1, 2000, 54.4% shall be transferred to the

10 Department of Transportation to be distributed as follows:

11 (A) 49.10% to the municipalities of the State,

12 (B) 16.74% to the counties of the State having

13 1,000,000 or more inhabitants,

14 (C) 18.27% to the counties of the State having

15 less than 1,000,000 inhabitants,

16 (D) 15.89% to the road districts of the State.

17 If a township is dissolved under Article 24 of the

18 Township Code, McHenry County shall receive any moneys

19 that would have been distributed to the township under

20 this subparagraph, except that a municipality that assumes

21 the powers and responsibilities of a road district under

22 paragraph (6) of Section 24-35 of the Township Code shall

23 receive any moneys that would have been distributed to the

24 township in a percent equal to the area of the dissolved

25 road district or portion of the dissolved road district

26 over which the municipality assumed the powers and

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1 responsibilities compared to the total area of the

2 dissolved township. The moneys received under this

3 subparagraph shall be used in the geographic area of the

4 dissolved township. If a township is reconstituted as

5 provided under Section 24-45 of the Township Code, McHenry

6 County or a municipality shall no longer be distributed

7 moneys under this subparagraph.

8 As soon as may be after the first day of each month, the

9 Department of Transportation shall allot to each municipality

10 its share of the amount apportioned to the several

11 municipalities which shall be in proportion to the population

12 of such municipalities as determined by the last preceding

13 municipal census if conducted by the Federal Government or

14 Federal census. If territory is annexed to any municipality

15 subsequent to the time of the last preceding census the

16 corporate authorities of such municipality may cause a census

17 to be taken of such annexed territory and the population so

18 ascertained for such territory shall be added to the

19 population of the municipality as determined by the last

20 preceding census for the purpose of determining the allotment

21 for that municipality. If the population of any municipality

22 was not determined by the last Federal census preceding any

23 apportionment, the apportionment to such municipality shall be

24 in accordance with any census taken by such municipality. Any

25 municipal census used in accordance with this Section shall be

26 certified to the Department of Transportation by the clerk of

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1 such municipality, and the accuracy thereof shall be subject

2 to approval of the Department which may make such corrections

3 as it ascertains to be necessary.

4 As soon as may be after the first day of each month, the

5 Department of Transportation shall allot to each county its

6 share of the amount apportioned to the several counties of the

7 State as herein provided. Each allotment to the several

8 counties having less than 1,000,000 inhabitants shall be in

9 proportion to the amount of motor vehicle license fees

10 received from the residents of such counties, respectively,

11 during the preceding calendar year. The Secretary of State

12 shall, on or before April 15 of each year, transmit to the

13 Department of Transportation a full and complete report

14 showing the amount of motor vehicle license fees received from

15 the residents of each county, respectively, during the

16 preceding calendar year. The Department of Transportation

17 shall, each month, use for allotment purposes the last such

18 report received from the Secretary of State.

19 As soon as may be after the first day of each month, the

20 Department of Transportation shall allot to the several

21 counties their share of the amount apportioned for the use of

22 road districts. The allotment shall be apportioned among the

23 several counties in the State in the proportion which the

24 total mileage of township or district roads in the respective

25 counties bears to the total mileage of all township and

26 district roads in the State. Funds allotted to the respective

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1 counties for the use of road districts therein shall be

2 allocated to the several road districts in the county in the

3 proportion which the total mileage of such township or

4 district roads in the respective road districts bears to the

5 total mileage of all such township or district roads in the

6 county. After July 1 of any year prior to 2011, no allocation

7 shall be made for any road district unless it levied a tax for

8 road and bridge purposes in an amount which will require the

9 extension of such tax against the taxable property in any such

10 road district at a rate of not less than either .08% of the

11 value thereof, based upon the assessment for the year

12 immediately prior to the year in which such tax was levied and

13 as equalized by the Department of Revenue or, in DuPage

14 County, an amount equal to or greater than $12,000 per mile of

15 road under the jurisdiction of the road district, whichever is

16 less. Beginning July 1, 2011 and each July 1 thereafter, an

17 allocation shall be made for any road district if it levied a

18 tax for road and bridge purposes. In counties other than

19 DuPage County, if the amount of the tax levy requires the

20 extension of the tax against the taxable property in the road

21 district at a rate that is less than 0.08% of the value

22 thereof, based upon the assessment for the year immediately

23 prior to the year in which the tax was levied and as equalized

24 by the Department of Revenue, then the amount of the

25 allocation for that road district shall be a percentage of the

26 maximum allocation equal to the percentage obtained by

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1 dividing the rate extended by the district by 0.08%. In DuPage

2 County, if the amount of the tax levy requires the extension of

3 the tax against the taxable property in the road district at a

4 rate that is less than the lesser of (i) 0.08% of the value of

5 the taxable property in the road district, based upon the

6 assessment for the year immediately prior to the year in which

7 such tax was levied and as equalized by the Department of

8 Revenue, or (ii) a rate that will yield an amount equal to

9 $12,000 per mile of road under the jurisdiction of the road

10 district, then the amount of the allocation for the road

11 district shall be a percentage of the maximum allocation equal

12 to the percentage obtained by dividing the rate extended by

13 the district by the lesser of (i) 0.08% or (ii) the rate that

14 will yield an amount equal to $12,000 per mile of road under

15 the jurisdiction of the road district.

16 Prior to 2011, if any road district has levied a special

17 tax for road purposes pursuant to Sections 6-601, 6-602, and

18 6-603 of the Illinois Highway Code, and such tax was levied in

19 an amount which would require extension at a rate of not less

20 than .08% of the value of the taxable property thereof, as

21 equalized or assessed by the Department of Revenue, or, in

22 DuPage County, an amount equal to or greater than $12,000 per

23 mile of road under the jurisdiction of the road district,

24 whichever is less, such levy shall, however, be deemed a

25 proper compliance with this Section and shall qualify such

26 road district for an allotment under this Section. Beginning

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1 in 2011 and thereafter, if any road district has levied a

2 special tax for road purposes under Sections 6-601, 6-602, and

3 6-603 of the Illinois Highway Code, and the tax was levied in

4 an amount that would require extension at a rate of not less

5 than 0.08% of the value of the taxable property of that road

6 district, as equalized or assessed by the Department of

7 Revenue or, in DuPage County, an amount equal to or greater

8 than $12,000 per mile of road under the jurisdiction of the

9 road district, whichever is less, that levy shall be deemed a

10 proper compliance with this Section and shall qualify such

11 road district for a full, rather than proportionate, allotment

12 under this Section. If the levy for the special tax is less

13 than 0.08% of the value of the taxable property, or, in DuPage

14 County if the levy for the special tax is less than the lesser

15 of (i) 0.08% or (ii) $12,000 per mile of road under the

16 jurisdiction of the road district, and if the levy for the

17 special tax is more than any other levy for road and bridge

18 purposes, then the levy for the special tax qualifies the road

19 district for a proportionate, rather than full, allotment

20 under this Section. If the levy for the special tax is equal to

21 or less than any other levy for road and bridge purposes, then

22 any allotment under this Section shall be determined by the

23 other levy for road and bridge purposes.

24 Prior to 2011, if a township has transferred to the road

25 and bridge fund money which, when added to the amount of any

26 tax levy of the road district would be the equivalent of a tax

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1 levy requiring extension at a rate of at least .08%, or, in

2 DuPage County, an amount equal to or greater than $12,000 per

3 mile of road under the jurisdiction of the road district,

4 whichever is less, such transfer, together with any such tax

5 levy, shall be deemed a proper compliance with this Section

6 and shall qualify the road district for an allotment under

7 this Section.

8 In counties in which a property tax extension limitation

9 is imposed under the Property Tax Extension Limitation Law,

10 road districts may retain their entitlement to a motor fuel

11 tax allotment or, beginning in 2011, their entitlement to a

12 full allotment if, at the time the property tax extension

13 limitation was imposed, the road district was levying a road

14 and bridge tax at a rate sufficient to entitle it to a motor

15 fuel tax allotment and continues to levy the maximum allowable

16 amount after the imposition of the property tax extension

17 limitation. Any road district may in all circumstances retain

18 its entitlement to a motor fuel tax allotment or, beginning in

19 2011, its entitlement to a full allotment if it levied a road

20 and bridge tax in an amount that will require the extension of

21 the tax against the taxable property in the road district at a

22 rate of not less than 0.08% of the assessed value of the

23 property, based upon the assessment for the year immediately

24 preceding the year in which the tax was levied and as equalized

25 by the Department of Revenue or, in DuPage County, an amount

26 equal to or greater than $12,000 per mile of road under the

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1 jurisdiction of the road district, whichever is less.

2 As used in this Section, the term "road district" means

3 any road district, including a county unit road district,

4 provided for by the Illinois Highway Code; and the term

5 "township or district road" means any road in the township and

6 district road system as defined in the Illinois Highway Code.

7 For the purposes of this Section, "township or district road"

8 also includes such roads as are maintained by park districts,

9 forest preserve districts and conservation districts. The

10 Department of Transportation shall determine the mileage of

11 all township and district roads for the purposes of making

12 allotments and allocations of motor fuel tax funds for use in

13 road districts.

14 Payment of motor fuel tax moneys to municipalities and

15 counties shall be made as soon as possible after the allotment

16 is made. The treasurer of the municipality or county may

17 invest these funds until their use is required and the

18 interest earned by these investments shall be limited to the

19 same uses as the principal funds.

20 (Source: P.A. 101-32, eff. 6-28-19; 101-230, eff. 8-9-19;

21 101-493, eff. 8-23-19; 102-16, eff. 6-17-21; 102-558, eff.

22 8-20-21; 102-699, eff. 4-19-22.)

23 Section 10. The Illinois Municipal Code is amended by

24 changing Section 8-11-2.3 as follows:

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1 (65 ILCS 5/8-11-2.3)

2 Sec. 8-11-2.3. Municipal Motor Fuel Tax Law.

3 Notwithstanding any other provision of law, in addition to any

4 other tax that may be imposed, a municipality in a county with

5 a population of over 3,000,000 inhabitants may also impose, by

6 ordinance, a tax upon all persons engaged in the municipality

7 in the business of selling motor fuel, as defined in the Motor

8 Fuel Tax Law, at retail for the operation of motor vehicles

9 upon public highways or for the operation of recreational

10 watercraft upon waterways. The tax may be imposed, in one cent

11 increments, at a rate not to exceed $0.03 per gallon of motor

12 fuel sold at retail within the municipality for the purpose of

13 use or consumption and not for the purpose of resale. The tax

14 may not be imposed under this Section on aviation fuel, as

15 defined in Section 3 of the Retailers' Occupation Tax Act.

16 Persons subject to any tax imposed under the authority

17 granted in this Section may reimburse themselves for their

18 seller's tax liability hereunder by separately stating that

19 tax as an additional charge, which charge may be stated in

20 combination, in a single amount, with State tax which sellers

21 are required to collect under the Use Tax Act, pursuant to such

22 bracket schedules as the Department may prescribe.

23 A tax imposed pursuant to this Section, and all civil

24 penalties that may be assessed as an incident thereof, shall

25 be administered, collected, and enforced by the Department of

26 Revenue in the same manner as the tax imposed under the

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1 Retailers' Occupation Tax Act, as now or hereafter amended,

2 insofar as may be practicable; except that in the event of a

3 conflict with the provisions of this Section, this Section

4 shall control. The Department of Revenue shall have full power

5 to: administer and enforce this Section; collect all taxes and

6 penalties due hereunder; dispose of taxes and penalties so

7 collected in the manner hereinafter provided; and determine

8 all rights to credit memoranda arising on account of the

9 erroneous payment of tax or penalty hereunder.

10 Whenever the Department determines that a refund shall be

11 made under this Section to a claimant instead of issuing a

12 credit memorandum, the Department shall notify the State

13 Comptroller, who shall cause the order to be drawn for the

14 amount specified, and to the person named, in the notification

15 from the Department. The refund shall be paid by the State

16 Treasurer out of the Municipal Motor Fuel Tax Fund.

17 The Department shall immediately pay over to the State

18 Treasurer, ex officio, as trustee, all taxes and penalties

19 collected under this Section. Those taxes and penalties shall

20 be deposited into the Municipal Motor Fuel Tax Fund, a trust

21 fund created in the State treasury. Moneys in the Municipal

22 Motor Fuel Tax Fund shall be used to make payments to

23 municipalities and for the payment of refunds under this

24 Section.

25 On or before the 25th day of each calendar month, the

26 Department shall prepare and certify to the State Comptroller

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1 the disbursement of stated sums of money to named

2 municipalities for which taxpayers have paid taxes or

3 penalties hereunder to the Department during the second

4 preceding calendar month. The amount to be paid to each

5 municipality shall be the amount (not including credit

6 memoranda) collected under this Section from retailers within

7 the municipality during the second preceding calendar month by

8 the Department, plus an amount the Department determines is

9 necessary to offset amounts that were erroneously paid to a

10 different municipality, and not including an amount equal to

11 the amount of refunds made during the second preceding

12 calendar month by the Department on behalf of the

13 municipality, and not including any amount that the Department

14 determines is necessary to offset any amounts that were

15 payable to a different municipality but were erroneously paid

16 to the municipality, less 1.5% of the remainder, which the

17 Department shall transfer into the Tax Compliance and

18 Administration Fund. The Department, at the time of each

19 monthly disbursement, shall prepare and certify to the State

20 Comptroller the amount to be transferred into the Tax

21 Compliance and Administration Fund under this Section. Within

22 10 days after receipt by the Comptroller of the disbursement

23 certification to the municipalities and the Tax Compliance and

24 Administration Fund provided for in this Section to be given

25 to the Comptroller by the Department, the Comptroller shall

26 cause the orders to be drawn for the respective amounts in

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1 accordance with the directions contained in the certification.

2 Nothing in this Section shall be construed to authorize a

3 municipality to impose a tax upon the privilege of engaging in

4 any business which under the Constitution of the United States

5 may not be made the subject of taxation by this State.

6 An ordinance or resolution imposing or discontinuing the

7 tax under this Section or effecting a change in the rate

8 thereof shall either: (i) be adopted and a certified copy

9 thereof filed with the Department on or before the first day of

10 April, whereupon the Department shall proceed to administer

11 and enforce this Section as of the first day of July next

12 following the adoption and filing; or (ii) be adopted and a

13 certified copy thereof filed with the Department on or before

14 the first day of October, whereupon the Department shall

15 proceed to administer and enforce this Section as of the first

16 day of January next following the adoption and filing.

17 An ordinance adopted in accordance with the provisions of

18 this Section in effect before the effective date of this

19 amendatory Act of the 101st General Assembly shall be deemed

20 to impose the tax in accordance with the provisions of this

21 Section as amended by this amendatory Act of the 101st General

22 Assembly and shall be administered by the Department of

23 Revenue in accordance with the provisions of this Section as

24 amended by this amendatory Act of the 101st General Assembly;

25 provided that, on or before October 1, 2020, the municipality

26 adopts and files a certified copy of a superseding ordinance

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1 that imposes the tax in accordance with the provisions of this

2 Section as amended by this amendatory Act of the 101st General

3 Assembly. If a superseding ordinance is not so adopted and

4 filed, then the tax imposed in accordance with the provisions

5 of this Section in effect before the effective date of this

6 amendatory Act of the 101st General Assembly shall be

7 discontinued on January 1, 2021.

8 This Section shall be known and may be cited as the

9 Municipal Motor Fuel Tax Law.

10 No tax may be imposed under this Section on or after July

11 1, 2023. This is a denial and limitation under subsection (g)

12 of Section 6 of Article VII of the Illinois Constitution of the

13 power of a home rule municipality to impose a tax.

14 (Source: P.A. 101-32, eff. 6-28-19; 101-604, eff. 12-13-19.)

15 Section 99. Effective date. This Act takes effect upon

16 becoming law.