Bill Text: IL SB2298 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Municipal Code. Provides that the municipal motor fuel tax shall be imposed as a retailers' or service occupation tax. Prescribes conditions for reimbursement. Provides that any tax imposed, 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 Retailers' Occupation Tax Act. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB2298 Detail]

Download: Illinois-2019-SB2298-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB2298 Introduced ___________, by SYNOPSIS AS INTRODUCED:
65 ILCS 5/8-11-2.3
Amends the Illinois Municipal Code. Provides that the municipal motor fuel tax shall be imposed as a retailers' or service occupation tax. Prescribes conditions for reimbursement. Provides that any tax imposed, 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 Retailers' Occupation Tax Act. Effective immediately.
LRB101 14837 AWJ 63822 b
FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
SB2298 LRB101 14837 AWJ 63822 b
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 8-11-2.3 as follows:
(65 ILCS 5/8-11-2.3)
Sec. 8-11-2.3. Municipal Motor Fuel Tax Law fuel tax.
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 that term is defined
in Section 1.1 of 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,
including, but not limited to, persons who make sales of motor
fuel incident to a sale of service. The tax may be imposed, in
one cent increments, on motor fuel 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.

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Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability under this Section 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 of Revenue may prescribe.
A tax imposed under 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
Retailers' Occupation Tax Act 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 shall
have full power to: administer and enforce this Section;
collect all taxes and penalties due under this Section; dispose
of taxes and penalties so collected in the manner provided in
this Section; and determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this Section.
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

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Treasurer out of the Municipal Motor Fuel Tax Fund.
A license that is issued to a distributor or a receiver
under the Motor Fuel Tax Law shall permit that distributor or
receiver to act as a distributor or receiver, as applicable,
under this Section. The provisions of Sections 2b, 2d, 6, 6a,
12, 12a, 13, 13a.2, 13a.7, 13a.8, 15.1, and 21 of the Motor
Fuel Tax Law that are not inconsistent with this Section shall
apply as far as practicable to the subject matter of this
Section to the same extent as if those provisions were included
in this Section.
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
the disbursement of stated sums of money to named
municipalities for which taxpayers have paid taxes or penalties
under this Section 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 and

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servicemen within the municipality during the second preceding
calendar month by the Department from the tax imposed by that
municipality under this Section during the second preceding
calendar month, 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 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

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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 of the
tax shall either: (i) be adopted and a certified copy of the
ordinance or resolution be filed with the Department on or
before April 1, whereupon the Department shall proceed to
administer and enforce this Section as of the July 1 next
following the adoption and filing; or (ii) be adopted and a
certified copy of the ordinance or resolution be filed with the
Department on or before October 1, whereupon the Department
shall proceed to administer and enforce this Section as of the
January 1 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 and filed with the
Department of Revenue on or before January 1, 2020 shall be
deemed to impose the tax, effective on April 1, 2020, 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, effective April 1,
2020, 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
that imposes the tax in accordance with the provisions of this
Section as amended by this amendatory Act of the 101st General

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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 may be cited as the Municipal Motor Fuel Tax
Law.
(Source: P.A. 101-32, eff. 6-28-19.)
Section 99. Effective date. This Act takes effect upon
becoming law.