Bill Text: IL HB3937 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Motor Fuel Tax Law. Provides that, if the seasonally adjusted unemployment rate in Illinois is more than 8% for a period of 3 consecutive calendar months, then the tax rates under the Act shall be reduced to the tax rates that were in effect prior to the increase under Public Act 101-32, until such time as the Department of Employment Security notifies the Department of Revenue in writing that the seasonally adjusted unemployment rate in Illinois has been 8% or less for a period of 3 consecutive calendar months. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-10-29 - Referred to Rules Committee [HB3937 Detail]

Download: Illinois-2019-HB3937-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB3937 Introduced , by Rep. John M. Cabello SYNOPSIS AS INTRODUCED:
35 ILCS 505/2 from Ch. 120, par. 418
35 ILCS 505/8 from Ch. 120, par. 424
Amends the Motor Fuel Tax Law. Provides that, if the seasonally adjusted unemployment rate in Illinois is more than 8% for a period of 3 consecutive calendar months, then the tax rates under the Act shall be reduced to the tax rates that were in effect prior to the increase under Public Act 101-32, until such time as the Department of Employment Security notifies the Department of Revenue in writing that the seasonally adjusted unemployment rate in Illinois has been 8% or less for a period of 3 consecutive calendar months. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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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, the rate of tax imposed in this paragraph shall be 38
cents per gallon and increased on July 1 of each subsequent
year 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

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months ending in March of each year.
(a-1) Beginning January 1, 2020, if the seasonally adjusted
unemployment rate in Illinois is more than 8% for a period of 3
consecutive calendar months, then the Department of Employment
Security shall notify the Department of Revenue of that fact in
writing within 30 days after the last day of that 3-month
period, and the rate of tax under subsection (a) shall be
reduced to 19 cents per gallon (the rate of tax prior to the
increase under Public Act 101-32) beginning on the first day of
the second calendar month after the Department of Revenue
receives the notification. The tax reduction under this
subsection (a-1) shall remain in effect until the first day of
the second calendar month after the Department of Employment
Security notifies the Department of Revenue in writing that the
seasonally adjusted unemployment rate in Illinois has been 8%
or less for a period of 3 consecutive calendar months.
(b) 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, the rate of tax
imposed in this paragraph shall be 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.
(b-1) Beginning January 1, 2020, if the seasonally adjusted

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unemployment rate in Illinois is more than 8% for a period of 3
consecutive calendar months, then the Department of Employment
Security shall notify the Department of Revenue of that fact in
writing within 30 days after the last day of that 3-month
period, and the rate of tax under subsection (b) shall be
reduced to the rate according to paragraph (a-1) plus an
additional 2.5 cents per gallon (the rate of tax prior to the
increase under Public Act 101-32) beginning on the first day of
the second calendar month after the Department of Revenue
receives the notification. The tax reduction under this
subsection (b-1) shall remain in effect until the first day of
the second calendar month after the Department of Employment
Security notifies the Department of Revenue in writing that the
seasonally adjusted unemployment rate in Illinois has been 8%
or less for a period of 3 consecutive calendar months.
(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
tax shall be required to inventory such motor fuel and pay this

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

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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. 100-9, eff. 7-1-17; 101-10, eff. 6-5-19; 101-32,
eff. 6-28-19; revised 7-12-19.)
(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 follows:
(a) 2 1/2 cents per gallon of the tax collected on special

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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, unless a rate reduction is
in effect under subsections (a-1) and (b-1) of Section 2, 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 this amendatory Act of the 101st
General Assembly 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;
$2,250,000 in fiscal years 2004 through 2009 and $3,000,000 in
fiscal year 2010 and each fiscal year thereafter shall be
transferred to the Transportation Regulatory Fund and shall be
accounted for as part of the rail carrier portion of such funds
and shall be used to pay the cost of administration of the
Illinois Commerce Commission's railroad safety program in

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connection with its duties under subsection (3) of Section
18c-7401 of the Illinois Vehicle 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 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. The Commission shall not order more than
$2,000,000 per year in Grade Crossing Protection Fund moneys

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for pedestrian walkways. In entering orders for projects for
which payments from the Grade Crossing Protection Fund will be
made, the Commission shall 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

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performing its duties imposed by the Illinois Highway Code
for supervising the use of motor fuel tax funds 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

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Law of 2005, to be transferred by the State Comptroller 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 dividing the rate extended by the

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

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

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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
jurisdiction of the road district, whichever is less.

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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; revised 9-24-19.)
Section 99. Effective date. This Act takes effect upon
becoming law.