Bill Text: IL HB3535 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Illinois Municipal Code. Creates the Non-Home Rule Municipal Motor Fuel Tax Act. Provides that a non-home rule municipality may impose a tax on motor fuel sold at retail, if approved by referendum. Provides that the tax imposed may not be more than 2%, and that any amounts collected from the tax may only be used for infrastructure and road projects. Provides that this tax is in addition to any other taxes imposed on motor fuel sold at retail. Defines terms. Makes conforming changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB3535 Detail]

Download: Illinois-2017-HB3535-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB3535 Introduced , by Rep. Robert Rita SYNOPSIS AS INTRODUCED:
65 ILCS 5/8-11-1.1 from Ch. 24, par. 8-11-1.1
65 ILCS 5/8-11-1.5a new
Amends the Illinois Municipal Code. Creates the Non-Home Rule Municipal Motor Fuel Tax Act. Provides that a non-home rule municipality may impose a tax on motor fuel sold at retail, if approved by referendum. Provides that the tax imposed may not be more than 2%, and that any amounts collected from the tax may only be used for infrastructure and road projects. Provides that this tax is in addition to any other taxes imposed on motor fuel sold at retail. Defines terms. Makes conforming changes. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Municipal Code is amended by
changing Section 8-11-1.1 and by adding Section 8-11-1.5a as
follows:
(65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
Sec. 8-11-1.1. Non-home rule municipalities; imposition of
taxes.
(a) The corporate authorities of a non-home rule
municipality may, upon approval of the electors of the
municipality pursuant to subsection (b) of this Section, impose
by ordinance or resolution the tax authorized in Sections
8-11-1.3, 8-11-1.4, and 8-11-1.5, and 8-11-1.5a of this Act.
(a-5) The corporate authorities of the municipality may by
ordinance or resolution call for the submission to the electors
of the municipality the question of whether the municipality
shall impose the tax authorized under Section 8-11-1.5a. Such
question shall be certified by the municipal clerk to the
election authority in accordance with Section 28-5 of the
Election Code and shall be in a form in accordance with Section
16-7 of the Election Code.
Notwithstanding any provision of law to the contrary, for

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the tax authorized under Section 8-11-1.5a, the election
authority must submit the question in substantially the
following form:
Shall the corporate authorities of the municipality be
authorized to levy a tax at a rate of (rate)% for
infrastructure and road projects?
If a majority of the electors in the municipality voting
upon the question vote in the affirmative, such tax shall be
imposed.
(b) The corporate authorities of the municipality may by
ordinance or resolution call for the submission to the electors
of the municipality the question of whether the municipality
shall impose a tax authorized under Section 8-11-1.3, 8-11-1.4,
or 8-11-1.5 such tax. Such question shall be certified by the
municipal clerk to the election authority in accordance with
Section 28-5 of the Election Code and shall be in a form in
accordance with Section 16-7 of the Election Code.
Notwithstanding any provision of law to the contrary, if
the proceeds of the tax may be used for municipal operations
pursuant to Section 8-11-1.3, 8-11-1.4, or 8-11-1.5, then the
election authority must submit the question in substantially
the following form:
Shall the corporate authorities of the municipality be
authorized to levy a tax at a rate of (rate)% for
expenditures on municipal operations, expenditures on
public infrastructure, or property tax relief?

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If a majority of the electors in the municipality voting
upon the question vote in the affirmative, such tax shall be
imposed.
Until January 1, 1992, an ordinance or resolution imposing
the tax of not more than 1% hereunder or discontinuing the same
shall be adopted and a certified copy thereof, together with a
certification that the ordinance or resolution received
referendum approval in the case of the imposition of such tax,
filed with the Department of Revenue, on or before the first
day of June, whereupon the Department shall proceed to
administer and enforce the additional tax or to discontinue the
tax, as the case may be, as of the first day of September next
following such adoption and filing.
Beginning January 1, 1992 and through December 31, 1992, an
ordinance or resolution imposing or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing.
Beginning January 1, 1993, and through September 30, 2002,
an ordinance or resolution imposing or discontinuing the tax
hereunder shall 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

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following such adoption and filing.
Beginning October 1, 2002, and through December 31, 2013,
an ordinance or resolution imposing or discontinuing the tax
under this Section or effecting a change in the rate of tax
must either (i) be adopted and a certified copy of the
ordinance or resolution 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 of the ordinance or resolution 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.
Beginning January 1, 2014, if an ordinance or resolution
imposing the tax under this Section, discontinuing the tax
under this Section, or effecting a change in the rate of tax
under this Section is adopted, a certified copy thereof,
together with a certification that the ordinance or resolution
received referendum approval in the case of the imposition of
or increase in the rate of such tax, shall be filed with the
Department of Revenue, either (i) on or before the first day of
May, 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) on or before the first day of
October, whereupon the Department shall proceed to administer

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and enforce this Section as of the first day of January next
following the adoption and filing.
Notwithstanding any provision in this Section to the
contrary, if, in a non-home rule municipality with more than
150,000 but fewer than 200,000 inhabitants, as determined by
the last preceding federal decennial census, an ordinance or
resolution under this Section imposes or discontinues a tax or
changes the tax rate as of July 1, 2007, then that ordinance or
resolution, together with a certification that the ordinance or
resolution received referendum approval in the case of the
imposition of the tax, must be adopted and a certified copy of
that ordinance or resolution must be filed with the Department
on or before May 15, 2007, whereupon the Department shall
proceed to administer and enforce this Section as of July 1,
2007.
Notwithstanding any provision in this Section to the
contrary, if, in a non-home rule municipality with more than
6,500 but fewer than 7,000 inhabitants, as determined by the
last preceding federal decennial census, an ordinance or
resolution under this Section imposes or discontinues a tax or
changes the tax rate on or before May 20, 2009, then that
ordinance or resolution, together with a certification that the
ordinance or resolution received referendum approval in the
case of the imposition of the tax, must be adopted and a
certified copy of that ordinance or resolution must be filed
with the Department on or before May 20, 2009, whereupon the

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Department shall proceed to administer and enforce this Section
as of July 1, 2009.
A non-home rule municipality may file a certified copy of
an ordinance or resolution, with a certification that the
ordinance or resolution received referendum approval in the
case of the imposition of the tax, with the Department of
Revenue, as required under this Section, only after October 2,
2000.
The tax authorized by this Section may not be more than 1%
and may be imposed only in 1/4% increments.
(Source: P.A. 98-584, eff. 8-27-13.)
(65 ILCS 5/8-11-1.5a new)
Sec. 8-11-1.5a. Non-Home Rule Municipal Motor Fuel Tax Act.
(a) The corporate authorities of a non-home rule
municipality may impose a tax on motor fuel sold at retail
within such municipality, if approved by referendum as provided
in Section 8-11-1.1. The tax imposed may not be more than 2%
and may be imposed only in 1/4% increments. A tax imposed under
this Section shall be paid in addition to any other taxes on
such motor fuel.
(b) Any amounts collected from the tax imposed under this
Section may only be used for infrastructure and road projects.
(c) The purchaser of the motor fuel shall be liable for
payment of a tax imposed under this Section. This Section shall
not be construed to impose a tax on the occupation of persons

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engaged in the sale of motor fuel.
If a municipality imposes a tax on motor fuel under this
Section, it shall be the duty of any person engaged in the
retail sale of motor fuel within such municipality to collect
such tax from the purchaser at the same time he collects the
purchase price of the motor fuel and to pay over such tax to
the municipality as prescribed by the ordinance of the
municipality imposing such tax.
(d) For purposes of this Section:
"Motor fuel" has the meaning as provided in the "Motor Fuel
Tax Law".
"Road projects" means the construction or repair of roads,
highways, and bridges.
Section 99. Effective date. This Act takes effect upon
becoming law.