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91st General Assembly
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Public Act 91-0173

SB1082 Enrolled                                LRB9105921PTdv

    AN ACT concerning motor fuel.

    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  1.2, 1.5, 1.13A, 1.14, 2, 2b, 3, 3a, 3c, 4c, 5, 5a,
6, 6a, 8, 11.5, 12, 12a, 13, 13a.6,  13a.7,  15  and  16  and
adding Sections 1.13B, 1.23, 1.24, 1.25, 1.26, 4d, 4e, and 4f
as follows:

    (35 ILCS 505/1.2) (from Ch. 120, par. 417.2)
    Sec.  1.2. Distributor. "Distributor" means  a person who
either  (i)   produces,   refines,   blends,   compounds   or
manufactures  motor  fuel  in  this State, or (ii) transports
motor fuel  into  this  State,  or  (iii)    engages  in  the
distribution  of  motor  fuel  primarily  by tank car or tank
truck, or both, and who operates an Illinois bulk plant where
he or she has active bulk storage capacity of not  less  than
30,000 gallons for gasoline as defined in item (A) of Section
5  of  this  Law  receives motor fuel transported to him from
without the State.
    "Distributor" does not, however,  include  a  person  who
receives  or  transports  into  this  State and sells or uses
motor  fuel  under  such  circumstances   as   preclude   the
collection  of  the  tax  herein  imposed,  by  reason of the
provisions of the constitution and  statutes  of  the  United
States.  However, a person operating a motor vehicle into the
State, may transport motor fuel in  the  ordinary  fuel  tank
attached  to  the motor vehicle, not more than twenty gallons
of motor fuel,  for  the  operation  of  the  motor  vehicle,
without being considered a distributor.
(Source: P.A. 89-399, eff. 8-20-95.)
    (35 ILCS 505/1.5) (from Ch. 120, par. 417.5)
    Sec.  1.5.  "Blending"  means  the mixing together by any
process whatsoever, of any one or more  products  with  other
products,  and  regardless  of  the original character of the
products  so  blended,  provided  the  resultant  product  so
obtained is suitable or practicable for use as a motor  fuel,
except  such  blending  as  may occur in the process known as
refining by the original  refiner  of  crude  petroleum,  and
except,  also,  the blending of products known as lubricating
oil in the production of lubricating  oils  and  greases  and
except,  also,  the  dyeing  of  special  fuel as required by
Section 4d of this Law.
(Source: Laws 1961, p. 3653.)

    (35 ILCS 505/1.13A) (from Ch. 120, par. 417.13A)
    Sec. 1.13A.  "1-K Kerosene" means  a  special  low-sulfur
grade   kerosene  suitable  for  use  in  non-flue  connected
kerosene burner appliances, and in wick-fed illuminate  lamps
which has a maximum limit of .04% sulfur mass, and a freezing
point  of  -22 Fahrenheit, and has a minimum saybolt color of
+16. For purposes of this  Law,  1-K  Kerosene  includes  1-K
Kerosene  that has been dyed in accordance with Section 4d of
this Law.
(Source: P.A. 87-149.)

    (35 ILCS 505/1.13B new)
    Sec. 1.13B.  "Dyed diesel fuel" means  special  fuel,  as
defined  in Section 1.13 of this Law, dyed in accordance with
Section 4d of this Law.

    (35 ILCS 505/1.14) (from Ch. 120, par. 417.14)
    Sec. 1.14.  Supplier. "Supplier" means any  person  other
than  a  licensed distributor who (i) transports special fuel
into this State  or  (ii)  engages  in  the  distribution  of
special  fuel  primarily  by tank car or tank truck, or both,
and who operates an Illinois bulk plant where he  has  active
bulk  storage  capacity  of  not less than 30,000 gallons for
special fuel as defined in Section 1.13 of this Law  receives
special fuel transported to him from outside the State.
    "Supplier"  does  not,  however,  include  a  person  who
receives  or  transports  into  this  State and sells or uses
special  fuel  under  such  circumstances  as  preclude   the
collection  of  the  tax  herein  imposed,  by  reason of the
provisions of the Constitution and laws of the United States.
However, a person operating a motor vehicle into  the  State,
may transport special fuel in the ordinary fuel tank attached
to  the  motor vehicle for the operation of the motor vehicle
without being considered a supplier.
(Source: P.A. 89-399, eff. 8-20-95.)

    (35 ILCS 505/1.23 new)
    Sec.  1.23.  "Terminal  rack"  means  a   mechanism   for
dispensing  motor  fuel or fuel from a refinery, terminal, or
bulk plant into a transport  truck,  railroad  tank  car,  or
other means of transportation.

    (35 ILCS 505/1.24 new)
    Sec.  1.24.  "Premises" means any location where original
records are  kept;  where  tank  cars,  ships,  barges,  tank
trucks,   tank  wagons,  or  other  types  of  transportation
equipment are used to distribute fuel or motor fuel; or where
containers, storage tanks, or other facilities  are  used  to
store or distribute fuel or motor fuel.

    (35 ILCS 505/1.25 new)
    Sec. 1.25. "Kerosene-type jet fuel" means any jet fuel as
described   in   ASTM   specification  D  1655  and  military
specifications MIL-T-5624R and MIL-T-83133D (Grades JP-5  and
JP-8).

    (35 ILCS 505/1.26 new)
    Sec.  1.26.  "Designated inspection site" means any State
highway  inspection  station,  weigh  station,   agricultural
inspection   station,   mobile  station,  or  other  location
designated by the Department to be used as a fuel  inspection
site.   A  designated inspection site will be identified as a
fuel inspection site.

    (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,  the rate of tax
imposed in this paragraph shall be 19 cents per gallon.
    (b)  The tax on the privilege of operating motor vehicles
which  use  diesel  fuel  shall  be  the  rate  according  to
paragraph (a) plus an additional  2  1/2  cents  per  gallon.
"Diesel  fuel"  is  defined as any petroleum 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 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.
    (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.
    Any sales, except as provided in paragraph (e), items  in
(1)  or  (2)  of  this  Section,  of  1-K  kerosene  that are
delivered into a storage tank that is located at  a  facility
that  has  withdrawal facilities which are readily accessible
to, and are capable of dispensing 1-K kerosene into the  fuel
supply   tanks   of  motor  vehicles  must  be  supported  by
documentation affirming that the 1-K  kerosene  will  not  be
sold  for  use  in  highway  vehicles.  Any person, who after
submitting  documentation, 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. 86-16; 86-125; 86-1028; 87-149.)

    (35 ILCS 505/2b) (from Ch. 120, par. 418b)
    Sec. 2b.  In addition to the tax collection and reporting
responsibilities  imposed elsewhere in this Act, a person who
is required to pay the tax imposed by Section 2a of this  Act
shall  pay  the  tax  to the Department by return showing all
fuel purchased, acquired or received and sold, distributed or
used during the preceding calendar month including losses  of
fuel  as  the  result  of  evaporation  or  shrinkage  due to
temperature variations. Losses  of  fuel  as  the  result  of
evaporation  or  shrinkage  due to temperature variations may
not exceed  one percent of the total gallons  in  storage  at
the  beginning  of  the month, plus the receipts of gallonage
during the month, minus the gallonage remaining in storage at
the end of the month.  Any loss reported that is in excess of
this amount shall be subject to the tax imposed by Section 2a
of this Law.
    The return shall be  prescribed  by  the  Department  and
shall be filed between the 1st and 20th days of each calendar
month.   The  Department  may, in its discretion, combine the
returns filed under this Section, Section 5, and  Section  5a
of  this  Act.  The return must be accompanied by appropriate
computer-generated magnetic media supporting schedule data in
the format required by the Department, unless, as provided by
rule, the Department grants an exception upon petition  of  a
taxpayer.   If  the  return is filed timely, the seller shall
take a discount of 2%  which  is  allowed  to  reimburse  the
seller   for   the  expenses  incurred  in  keeping  records,
preparing and filing returns, collecting  and  remitting  the
tax  and  supplying data to the Department on request. The 2%
discount, however, shall be applicable only to the amount  of
payment  which  accompanies  a return that is filed timely in
accordance with this Section.
(Source: P.A. 88-194.)

    (35 ILCS 505/3) (from Ch. 120, par. 419)
    Sec. 3.  No person shall act as a  distributor  of  motor
fuel  within  this  State without first securing a license to
act as a distributor  of  motor  fuel  from  the  Department.
Application  for such license shall be made to the Department
upon blanks furnished by it. The application shall be  signed
and  verified,  and  shall  contain  such  information as the
Department deems necessary. A blender shall, in  addition  to
securing  a  distributor's  license,  make application to the
Department for a  blender's  permit,  setting  forth  in  the
application   such   information   as  the  Department  deems
necessary. The applicant for a  distributor's  license  shall
also file with the Department a bond on a form to be approved
by  and  with  a  surety  or  sureties  satisfactory  to  the
Department  conditioned  upon  such  applicant  paying to the
State of Illinois all monies becoming due by  reason  of  the
sale or use of motor fuel by the applicant, together with all
penalties  and interest thereon. The Department shall fix the
penalty of such bond in each case taking  into  consideration
the amount of motor fuel expected to be sold, distributed and
used   by  such  applicant  and  the  penalty  fixed  by  the
Department shall be such, as in its opinion, will protect the
State  of  Illinois  against  failure  to  pay   the   amount
hereinafter  provided  on  motor  fuel  sold, distributed and
used, but the amount of the penalty fixed by  the  Department
shall  not  exceed  twice  2.1  times the monthly amount that
would be collectable as a tax in the event of a sale  on  all
the motor fuel sold, distributed, and used by the distributor
inclusive  of  tax-free  sales,  use,  or distribution of tax
liability of a monthly return; however, in no event shall the
amount of such penalty exceed $100,000. Upon receipt  of  the
application  and  bond  in  proper form, the Department shall
issue to the applicant a license to act as a distributor.  No
person  who  is  in default to the State for monies due under
this Act for the sale, distribution  or  use  of  motor  fuel
shall  receive a license either directly or indirectly to act
as a distributor.
    A license shall  not  be  granted  to  any  person  whose
principal  place  of  business  is  in  a  state  other  than
Illinois,  unless  such  person  is  licensed  for motor fuel
distribution in the state in which  the  principal  place  of
business is located and that such person is not in default to
that  State for any monies due for the sale, distribution, or
use of motor fuel.
    Notwithstanding  his  activities  are  not  those  of   a
distributor as defined in Section 1.2 of this Act:
         A.  A  person  who  as  of  July  1,  1957  holds  a
    distributor's  license  may  continue in that capacity so
    long as he continues to  comply  with  obligations  of  a
    distributor.
         B.  A  person  who  in  this State is engaged in the
    distribution of motor fuel primarily by tank car or  tank
    truck,  or  both, and who operates an Illinois bulk plant
    where he has active bulk storage  capacity  of  not  less
    than  30,000  gallons  for gasoline as defined in example
    (A) in the second paragraph of Section  5  of  this  Act,
    may, by application to the Department and compliance with
    the  requirements of this Section, obtain a distributor's
    license, and when so licensed shall be subject to all the
    obligations and have all the rights and privileges  of  a
    distributor under this Act.
(Source: P.A. 90-491, eff. 1-1-98.)

    (35 ILCS 505/3a) (from Ch. 120, par. 419a)
    Sec.  3a.   No person, other than a licensed distributor,
shall act as a supplier of special  fuel  within  this  State
without  first  securing  a  license  to act as a supplier of
special fuel from the Department.
    Application  for  such  license  shall  be  made  to  the
Department upon blanks furnished by it. The application shall
be signed and verified and shall contain such information  as
the Department deems necessary.
    The  applicant  for a supplier's license shall also file,
with the Department, a bond on a form to be approved  by  and
with  a  surety  or  sureties satisfactory to the Department,
conditioned upon  such  applicant  paying  to  the  State  of
Illinois all moneys becoming due by reason of the sale or use
of special fuel by the applicant, together with all penalties
and interest thereon. The Department shall fix the penalty of
such  bond in each case, taking into consideration the amount
of special fuel expected to be sold, distributed and used  by
such applicant, and the penalty fixed by the Department shall
be  such,  as  in  its  opinion,  will  protect  the State of
Illinois  against  failure  to  pay  the  amount  hereinafter
provided on special fuel sold, distributed and used, but  the
amount  of  the  penalty  fixed  by  the Department shall not
exceed twice the monthly amount of tax liability  that  would
be collectable as a tax in the event of a taxable sale on all
the  special fuel sold, distributed, and used by the supplier
inclusive of  tax-free  sales,  use,  or  distribution  of  a
monthly  return; however, in no event shall the amount exceed
$100,000.
    Upon receipt of the application and bond in proper  form,
the  Department shall issue to the applicant a license to act
as a supplier. No person who is in default to the  State  for
moneys  due  under this Act for the sale, distribution or use
of motor fuel shall receive  a  license  either  directly  or
indirectly to act as a supplier.
    A  license  shall  not  be  granted  to  any person whose
principal  place  of  business  is  in  a  state  other  than
Illinois, unless such  person  is  licensed  for  motor  fuel
distribution  in  the  State  in which the principal place of
business is  located  and  that  other  State  requires  such
license  and that such person is not in default to that State
for any monies due for the  sale,  distribution,  or  use  of
motor fuel.
(Source: P.A. 90-491, eff. 1-1-98.)

    (35 ILCS 505/3c) (from Ch. 120, par. 419b.1)
    Sec.  3c.   No  person  shall  act  as a receiver of fuel
within this State without first securing a license  from  the
Department to act as a receiver of fuel.
    Application  for  such  license  shall  be  made  to  the
Department  upon  blanks  furnished  by  it.  The application
shall  be  signed  and  verified,  and  shall  contain   such
information as the Department deems necessary.  The applicant
for  a receiver's license shall also file with the Department
a bond on a form to be approved  by  and  with  a  surety  or
sureties satisfactory to the Department conditioned upon such
applicant paying to the State of Illinois all monies becoming
due  by  reason  of  the  receipt  of  fuel by the applicant,
together  with  all  penalties  and  interest  thereon.   The
Department shall fix the penalty of such bond  in  each  case
taking  into  consideration the amount of fuel expected to be
sold, distributed and used by such applicant and the  penalty
fixed  by  the  Department  shall be such, as in its opinion,
will protect the State of Illinois against failure to pay the
tax imposed by Section 2a on fuel received in this State, but
the amount of the penalty fixed by the Department  shall  not
exceed  twice  the  monthly  amount  that would be due in the
event of a sale or use on all the fuel sold or  used  by  the
receiver  inclusive of tax-free sales or use of tax liability
of a monthly return; however, in no event  shall  the  amount
exceed $100,000.
    Upon  receipt of the application and bond in proper form,
the Department shall issue to the applicant a license to  act
as  a receiver.  No person who is in default to the State for
monies due under this Act for the receipt, sale, distribution
or use of fuel or motor fuel shall receive a  license  either
directly or indirectly to act as a receiver.
(Source: P.A. 90-491, eff. 1-1-98.)

    (35 ILCS 505/4c) (from Ch. 120, par. 419c)
    Sec.  4c.   Notwithstanding  any  other  provision to the
contrary, any person who is required to file a bond  pursuant
to  any  provision  of  this  Act  and  who  has continuously
complied with all provisions of this Act for 48  24  or  more
consecutive  months,  shall  no  longer be required to comply
with the bonding provisions of  this  Act  so  long  as  such
person  continues  his compliance with the provisions of this
Act. This provision does not apply to motor carriers  subject
to the provisions of Sections 13a through 13a.5 of this Act.
(Source: P.A. 88-480.)

    (35 ILCS 505/4d new)
    Sec.  4d.  All  special fuel sold or used for non-highway
purposes must contain only the  dye  Solvent  Red  164  at  a
concentration spectrally equivalent to at least 3.9 pounds of
the solid dye standard Solvent Red 26 per thousand barrels of
special  fuel  except  kerosene-type  jet  fuel  sold for the
propulsion of any aircraft.  The dye must be added  prior  to
removal from a terminal rack. The Department may also require
all  special  fuel  sold for non-highway use to have a marker
added.

    (35 ILCS 505/4e new)
    Sec. 4e. A legible and conspicuous notice  stating  "Dyed
Diesel  Fuel,  Non-taxable Use Only, Penalty For Taxable Use"
must appear on all shipping  papers,  bills  of  lading,  and
invoices accompanying any sale of dyed diesel fuel.

    (35 ILCS 505/4f new)
    Sec.  4f. A legible and conspicuous notice stating  "Dyed
Diesel  Fuel,  Non-taxable  Use  Only"  must  appear  on  all
containers, storage tanks, or facilities  used  to  store  or
distribute dyed diesel fuel.

    (35 ILCS 505/5) (from Ch. 120, par. 421)
    Sec. 5.  Except as hereinafter provided, a person holding
a  valid  unrevoked  license to act as a distributor of motor
fuel shall, between the 1st and 20th days  of  each  calendar
month,  make  return  to  the Department, showing an itemized
statement of the number of invoiced gallons of motor fuel  of
the  types  specified  in  this Section which were purchased,
acquired or received during the preceding calendar month; the
amount of such  motor  fuel  produced,  refined,  compounded,
manufactured,  blended,  sold,  distributed,  and used by the
licensed distributor during the preceding calendar month; the
amount of such  motor  fuel  lost  or  destroyed  during  the
preceding  calendar  month; and the amount of such motor fuel
on hand at the close  of  business  for  such  month.   If  a
distributor's  only activities with respect to motor fuel are
either: (1) production of alcohol in quantities of less  than
10,000  proof  gallons  per  year  or (2) blending alcohol in
quantities of less than 10,000 proof gallons per  year  which
such  distributor  has  produced, he shall file returns on an
annual basis with the return for a given year  being  due  by
January  20  of the following year.  Distributors whose total
production of alcohol (whether blended or not) exceeds 10,000
proof gallons  per  year,  based  on  production  during  the
preceding  (calendar)  year or as reasonably projected by the
Department if one calendar year's record of production cannot
be established, shall file returns between the 1st  and  20th
days of each calendar month as hereinabove provided.
    The  types  of  motor  fuel  referred to in the preceding
paragraph are: (A)  All  products  commonly  or  commercially
known   or   sold  as  gasoline  (including  casing-head  and
absorption or natural gasoline),  gasohol,  motor  benzol  or
motor benzene regardless of their classification or uses; and
(B)  all  combustible gases which exist in a gaseous state at
60 degrees Fahrenheit and at  14.7  pounds  per  square  inch
absolute  including,  but not limited to, liquefied petroleum
gases used for highway purposes; and (C) special  fuel.  Only
those  quantities  of  combustible  gases (example (B) above)
which are used or sold by  the  distributor  to  be  used  to
propel  motor  vehicles  on the public highways, or which are
delivered into the bulk storage facilities of a bulk user, or
which are delivered into a storage tank that is located at  a
facility  that  has  withdrawal  facilities which are readily
accessible to and are capable of dispensing combustible gases
into the fuel  supply  tanks  of  motor  vehicles,  shall  be
subject  to  return.  For the purposes of this Act, liquefied
petroleum gases shall mean and include any material having  a
vapor  pressure  not  exceeding  that  allowed for commercial
propane composed predominantly of the following hydrocarbons,
either by themselves or  as  mixtures:   Propane,  Propylene,
Butane  (normal butane or iso-butane) and Butylene (including
isomers).
    In case of a sale of special fuel to someone other than a
licensed distributor, or a licensed supplier  or  a  licensed
bulk  user with a valid permit, for a use other than in motor
vehicles, the distributor shall show in his return the amount
of invoiced gallons sold and the  name  and  address  of  the
purchaser in addition to any other information the Department
may require.
    All  special  fuel  sold or used for non-highway purposes
must have a dye added in accordance with Section 4d  of  this
Law.
    In  case of a tax-free sale, as provided in Section 6, of
motor fuel which the distributor is required by this  Section
to  include  in his return to the Department, the distributor
in his return shall show: (1) If the sale is made to  another
licensed  distributor  the  amount sold and the name, address
and license number of the purchasing distributor; (2) if  the
sale  is  made  to a person where delivery is made outside of
this State the name and address of  such  purchaser  and  the
point   of   delivery  together  with  the  date  and  amount
delivered; (3) if the sale is made to the Federal  Government
or  its  instrumentalities  the  amount sold, as evidenced by
official forms of exemption  certificates  properly  executed
and    furnished   by   the   Federal   Government   or   its
instrumentalities; (4) if the sale is  made  to  a  municipal
corporation  owning  and  operating  a  local  transportation
system  for public service in this State the name and address
of such purchaser, and  the  amount  sold,  as  evidenced  by
official  forms  of  exemption certificates properly executed
and furnished by such purchaser; (5) if the sale is made to a
privately owned public utility owning  and  operating  2-axle
vehicles  designed  and  used  for  transporting  more than 7
passengers, which vehicles are used  as  common  carriers  in
general  transportation of passengers, are not devoted to any
specialized purpose and  are  operated  entirely  within  the
territorial  limits  of a single municipality or of any group
of contiguous municipalities or in a  close  radius  thereof,
and the operations of which are subject to the regulations of
the  Illinois  Commerce Commission, then the name and address
of such  purchaser  and  the  amount  sold  as  evidenced  by
official  forms  of  exemption certificates properly executed
and furnished by the purchaser; (6) if the  product  sold  is
special  fuel  and if the sale is made to a licensed supplier
under conditions which qualify the  sale  for  tax  exemption
under  Section  6  of this Act, the amount sold and the name,
address and license number of the purchaser;  and  (7)  if  a
sale of special fuel is made to someone other than a licensed
distributor,  or a licensed supplier, or a licensed bulk user
with a permit, for a use other than  in  motor  vehicles,  by
making  a  specific  notation thereof on the invoice or sales
slip  covering  such  sales  and  obtaining  such  supporting
documentation as may be required by the Department;  and  (8)
if  a  sale  of  special fuel is made to a licensed bulk user
with a valid unrevoked permit to purchase  special  fuel  tax
exempt.
    All  special  fuel  sold or used for non-highway purposes
must have a dye added in accordance with Section 4d  of  this
Law.
    A  person  whose license to act as a distributor of motor
fuel has been revoked shall make a return to  the  Department
covering  the  period from the date of the last return to the
date of the revocation of the license, which return shall  be
delivered  to  the Department not later than 10 days from the
date of the revocation or termination of the license of  such
distributor;  the  return  shall  in  all  other  respects be
subject to the same provisions and conditions as  returns  by
distributors licensed under the provisions of this Act.
    The  records,  waybills  and supporting documents kept by
railroads and other common carriers in the regular course  of
business  shall  be  prima facie evidence of the contents and
receipt of cars or tanks covered by those  records,  waybills
or supporting documents.
    If  the Department has reason to believe and does believe
that the amount shown on the return as  purchased,  acquired,
received, sold, used, lost or destroyed is incorrect, or that
an  amount  of motor fuel of the types required by the second
paragraph of this Section to be reported to the Department by
distributors as a receipt has not been correctly reported  as
a  receipt,  the  Department  shall  fix  an  amount for such
receipt, sales, use, loss or  destruction  according  to  its
best  judgment  and information, which amount so fixed by the
Department shall be prima facie correct.  All  returns  shall
be  made  on  forms prepared and furnished by the Department,
and shall contain such other information  as  the  Department
may  reasonably  require.  The  return must be accompanied by
appropriate  computer-generated  magnetic  media   supporting
schedule  data  in  the  format  required  by the Department,
unless, as  provided   by  rule,  the  Department  grants  an
exception   upon   petition   of  a  taxpayer.  All  licensed
distributors shall report all losses of motor fuel  sustained
on  account  of  fire, theft, spillage, spoilage, leakage, or
any other provable cause  when  filing  the  return  for  the
period during which the loss occurred. The mere making of the
report  does  not  assure  the  allowance  of  the  loss as a
reduction in tax liability.  Losses  of  motor  fuel  as  the
result   of  evaporation  or  shrinkage  due  to  temperature
variations may not exceed  one percent of the  total  gallons
in  storage  at the beginning of the month, plus the receipts
of gallonage during the month, minus the gallonage  remaining
in  storage  at the end of the month.  Any loss reported that
is in excess of  one percent shall  be  subject  to  the  tax
imposed by Section 2  of this Law.
(Source: P.A. 87-149; 88-194.)
    (35 ILCS 505/5a) (from Ch. 120, par. 421a)
    Sec.  5a.   A person holding a valid unrevoked license to
act as a supplier of special fuel shall, between the 1st  and
20th  days  of  each  calendar  month,  make  return  to  the
Department  showing  an  itemized  statement of the number of
invoiced  gallons  of  special   fuel   acquired,   received,
purchased,  or  sold,  or  used during the preceding calendar
month; the amount of special fuel sold, distributed, and used
by the licensed supplier during the preceding calendar month;
the amount of special  fuel  lost  or  destroyed  during  the
preceding  calendar  month; and the amount of special fuel on
hand at the close of  business  for  the  preceding  calendar
month.
    A  person  whose  license to act as a supplier of special
fuel has been revoked shall make a return to  the  Department
covering  the  period from the date of the last return to the
date of the revocation of the license, which return shall  be
delivered  to  the Department not later than 10 days from the
date of the revocation or termination of the license of  such
supplier.   The return shall in all other respects be subject
to the same provisions and conditions as returns by suppliers
licensed under this Act.
    The records, waybills and supporting  documents  kept  by
railroads  and other common carriers in the regular course of
business shall be prima facie evidence of  the  contents  and
receipt  of  cars or tanks covered by those records, waybills
or supporting documents.
    If the Department has reason to believe and does  believe
that  the  amount shown on the return as purchased, acquired,
received, or sold, or used, or lost is incorrect, or that  an
amount  of  special  fuel  of  the  type  required by the 1st
paragraph of this Section to be reported to the Department by
suppliers as a purchase, sale or use has not  been  correctly
reported  as  a  purchase, receipt, sale, or use, or loss the
Department shall fix an amount for  such  purchase,  receipt,
sale,  or  use,  or  loss  according to its best judgment and
information, which amount so fixed by the Department shall be
prima facie correct. All licensed suppliers shall report  all
losses  of  special fuel sustained on account of fire, theft,
spillage, spoilage, leakage, or any other provable cause when
filing the return  for  the  period  during  which  the  loss
occurred.   The mere making of the report does not assure the
allowance of the loss as a reduction in tax liability. Losses
of special fuel as the result of evaporation or shrinkage due
to temperature variations may not exceed  one percent of  the
total  gallons in storage at the beginning of the month, plus
the  receipts  of  gallonage  during  the  month,  minus  the
gallonage remaining in storage at the end of the month.
    Any loss reported that is in excess of  one percent shall
be subject to the tax imposed by Section 2 of this Law.
    In case of a sale of special fuel to someone other than a
licensed distributor or, licensed supplier, or licensed  bulk
user  with  a  valid  permit,  for  a use other than in motor
vehicles, the supplier shall show in his return the amount of
invoiced gallons  sold  and  the  name  and  address  of  the
purchaser in addition to any other information the Department
may require.
    All  special  fuel  sold or used for non-highway purposes
must have a dye added in accordance with Section 4d  of  this
Law.
    All returns shall be made on forms prepared and furnished
by the Department and shall contain such other information as
the  Department  may  reasonably  require. The return must be
accompanied by appropriate computer-generated magnetic  media
supporting  schedule  data  in  the  format  required  by the
Department, unless,  as  provided  by  rule,  the  Department
grants an exception upon petition of a taxpayer.
    In case of a tax-free sale, as provided in Section 6a, of
special  fuel  which the supplier is required by this Section
to include in his return to the Department, the  supplier  in
his  return  shall  show:  (1) If the sale of special fuel is
made to the Federal Government or its instrumentalities,  the
amount  sold  as  evidenced  by  official  forms of exemption
certificates  properly  executed   and   furnished   by   the
Government  or  its  instrumentalities;  (2)  if  the sale of
special fuel is made to a municipal  corporation  owning  and
operating a local transportation system for public service in
this  State,  the  name and address of such purchaser and the
amount sold, as evidenced  by  official  forms  of  exemption
certificates   properly   executed   and  furnished  by  such
purchaser; (3) if the sale of  special  fuel  is  made  to  a
privately  owned  public  utility owning and operating 2-axle
vehicles designed and  used  for  transporting  more  than  7
passengers,  which  vehicles  are  used as common carriers in
general transportation of passengers, are not devoted to  any
specialized  purpose  and  are  operated  entirely within the
territorial limits of a single municipality or of  any  group
of  contiguous  municipalities  or in a close radius thereof,
and the operations of which are subject to the regulations of
the Illinois Commerce Commission, then the name  and  address
of  such  purchaser  and  the  amount  sold,  as evidenced by
official forms of exemption  certificates  properly  executed
and  furnished  by such purchaser; (4) if the product sold is
special fuel and if the sale is made to a  licensed  supplier
or  to  a licensed distributor under conditions which qualify
the sale for tax exemption under Section 6a of this Act,  the
amount  sold and the name, address and license number of such
purchaser; (5) if a sale of special fuel is made to a  person
where  delivery  is  made outside of this State, the name and
address of such purchaser and the point of delivery  together
with  the  date and amount of invoiced gallons delivered; and
(6) if a sale of special fuel is made to someone other than a
licensed distributor or a, licensed supplier, or  a  licensed
bulk  user  with  a  permit,  for  a  use other than in motor
vehicles, by  making  a  specific  notation  thereof  on  the
invoice  or  sales slip covering that sale and obtaining such
supporting  documentation  as  may   be   required   by   the
Department;  and  (7)  if a sale of special fuel is made to a
licensed bulk user with a valid unrevoked permit to  purchase
special fuel tax exempt.
    All  special  fuel  sold or used for non-highway purposes
must have a dye added in accordance with Section 4d  of  this
Law.
(Source: P.A. 87-149; 88-194.)

    (35 ILCS 505/6) (from Ch. 120, par. 422)
    Sec.  6.  Collection  of tax; distributors. A distributor
who sells or distributes any motor fuel, which he is required
by Section 5 to  report  to  the  Department  when  filing  a
return, shall (except as hereinafter provided) collect at the
time of such sale and distribution, the amount of tax imposed
under  this  Act on all such motor fuel sold and distributed,
and at the time of making a return, the distributor shall pay
to the Department the amount so collected less a discount  of
2%  which  is  allowed  to  reimburse the distributor for the
expenses incurred in keeping records,  preparing  and  filing
returns,  collecting and remitting the tax and supplying data
to the Department on request,  and  shall  also  pay  to  the
Department  an  amount  equal  to  the  amount  that would be
collectible as a tax in the event of a sale  thereof  on  all
such  motor  fuel  used by said distributor during the period
covered by the return. However, no  payment   shall  be  made
based  upon  dyed  diesel  fuel  used  by the distributor for
non-highway  purposes.  The  2%  discount   shall   only   be
applicable  to  the amount of tax payment which accompanies a
return which is filed timely in accordance with Section 5  of
this  Act. In each subsequent sale of motor fuel on which the
amount of tax imposed under this Act has  been  collected  as
provided  in  this  Section, the amount so collected shall be
added to the selling price, so that the amount of tax is paid
ultimately by the  user  of  the  motor  fuel.   However,  no
collection  or  payment shall be made in the case of the sale
or use of any motor fuel to the extent to  which such sale or
use of  motor  fuel  may  not,  under  the  constitution  and
statutes  of  the  United  States,  be  made  the  subject of
taxation by this State.  A person whose license to act  as  a
distributor  of  fuel  has been revoked shall, at the time of
making a return, also pay to the Department an  amount  equal
to the amount that would be collectible as a tax in the event
of  a sale thereof on all motor fuel, which he is required by
the second paragraph of Section 5 to report to the Department
in making a return, and which he had on hand on the  date  on
which  the  license was revoked, and with respect to which no
tax had been previously paid under this Act.
    A distributor may make tax free sales of motor fuel, with
respect to which he is otherwise required to collect the tax,
when the motor fuel is delivered from a  dispensing  facility
that  has  withdrawal  facilities capable of dispensing motor
fuel into the fuel supply tanks of  motor  vehicles  only  as
specified  in the following items 3, 4, and 5.  A distributor
may make tax-free sales of motor fuel, with respect to  which
he  is  otherwise required to collect the tax, when the motor
fuel is delivered from other facilities only as specified  in
the following items 1 through 7 8.
         1.  When  the  sale  is  made  to a person holding a
    valid unrevoked license as a  distributor,  by  making  a
    specific  notation  thereof  on  invoices  or  sales slip
    covering each sale.
         2.  When  the  sale  is  made  with  delivery  to  a
    purchaser outside of this State.
         3.  When the sale is made to the Federal  Government
    or its instrumentalities.
         4.  When the sale is made to a municipal corporation
    owning  and  operating  a local transportation system for
    public service in this State when an official certificate
    of exemption is obtained in lieu of the tax.
         5.  When the sale  is  made  to  a  privately  owned
    public  utility  owning  and  operating  2  axle vehicles
    designed  and  used  for   transporting   more   than   7
    passengers, which vehicles are used as common carriers in
    general  transportation of passengers, are not devoted to
    any specialized purpose and are operated entirely  within
    the territorial limits of a single municipality or of any
    group  of contiguous municipalities, or in a close radius
    thereof, and the operations of which are subject  to  the
    regulations  of the Illinois Commerce Commission, when an
    official certificate of exemption is obtained in lieu  of
    the tax.
         6.  When  a sale of special fuel is made to a person
    holding a valid, unrevoked  license  as  a  supplier,  by
    making  a  specific  notation  thereof  on the invoice or
    sales slip covering each such sale.
         7.  When a sale of special fuel is made  to  someone
    other   than   a  licensed  distributor  or  a,  licensed
    supplier, or a licensed bulk user, for a use  other  than
    in  motor vehicles, by making a specific notation thereof
    on the invoice or  sales  slip  covering  such  sale  and
    obtaining   such   supporting  documentation  as  may  be
    required by the Department. The distributor shall  obtain
    and keep the supporting documentation in such form as the
    Department   may   require   by   rule.   The  supporting
    documentation shall be signed by the buyer of the special
    fuel and shall specify the reasons  for  which  the  sale
    should  be  made  tax free. It shall be made available by
    the distributor on demand for inspection and  copying  by
    the Department.
         8.  (Blank).  When a sale of special fuel is made to
    a licensed bulk user with a  valid  unrevoked  permit  to
    purchase special fuel tax exempt.
    All  special  fuel  sold or used for non-highway purposes
must have a dye added in accordance with Section 4d  of  this
Law.
    All suits or other proceedings brought for the purpose of
recovering  any taxes, interest or penalties due the State of
Illinois under this Act may be maintained in the name of  the
Department.
(Source: P.A. 89-399, eff. 8-20-95.)

    (35 ILCS 505/6a) (from Ch. 120, par. 422a)
    Sec.  6a. Collection of tax; suppliers. A supplier, other
than a licensed distributor, who  sells  or  distributes  any
special fuel, which he is required by Section 5a to report to
the  Department  when  filing  a  return,  shall  (except  as
hereinafter  provided)  collect  at the time of such sale and
distribution, the amount of tax imposed under this Act on all
such special fuel sold and distributed, and at  the  time  of
making a return, the supplier shall pay to the Department the
amount  so  collected less a discount of 2%  which is allowed
to reimburse  the  supplier  for  the  expenses  incurred  in
keeping records, preparing and filing returns, collecting and
remitting  the  tax  and  supplying data to the Department on
request,  and shall also pay  to  the  Department  an  amount
equal to the amount that would be collectible as a tax in the
event of a sale thereof on all such special fuel used by said
supplier  during  the period covered by the return.  However,
no payment  shall be made based upon dyed diesel fuel used by
said supplier for non-highway purposes. The 2% discount shall
only be  applicable  to  the  amount  of  tax  payment  which
accompanies a return which is filed timely in accordance with
Section 5(a) of this Act.  In each subsequent sale of special
fuel  on  which  the amount of tax imposed under this Act has
been collected as provided in this  Section,  the  amount  so
collected  shall  be  added to the selling price, so that the
amount of tax is paid ultimately by the user of  the  special
fuel.  However, no collection or payment shall be made in the
case of the sale or use of any special fuel  to the extent to
which  such  sale  or  use  of  motor fuel may not, under the
Constitution and statutes of the United States, be  made  the
subject of taxation by this State.
    A person whose license to act as supplier of special fuel
has  been revoked shall, at the time of making a return, also
pay to the Department an amount  equal  to  the  amount  that
would  be collectible as a tax in the event of a sale thereof
on all  special  fuel,  which  he  is  required  by  the  1st
paragraph of Section 5a to report to the Department in making
a return.
    A  supplier may make tax-free sales of special fuel, with
respect to which he is otherwise required to collect the tax,
when the motor fuel is delivered from a  dispensing  facility
that  has withdrawal facilities capable of dispensing special
fuel into the fuel supply tanks of  motor  vehicles  only  as
specified in the following items 1, 2, and 3.  A supplier may
make tax-free sales of special fuel, with respect to which he
is  otherwise  required  to collect the tax, when the special
fuel is delivered from other facilities only as specified  in
the following items 1 through 7.
         1.  When  the sale is made to the federal government
    or its instrumentalities.
         2.  When the sale is made to a municipal corporation
    owning and operating a local  transportation  system  for
    public service in this State when an official certificate
    of exemption is obtained in lieu of the tax.
         3.  When  the  sale  is  made  to  a privately owned
    public utility  owning  and  operating  2  axle  vehicles
    designed   and   used   for   transporting  more  than  7
    passengers, which vehicles are used as common carriers in
    general transportation of passengers, are not devoted  to
    any  specialized purpose and are operated entirely within
    the territorial limits of a single municipality or of any
    group of contiguous municipalities, or in a close  radius
    thereof,  and  the operations of which are subject to the
    regulations of the Illinois Commerce Commission, when  an
    official  certificate of exemption is obtained in lieu of
    the tax.
         4.  When a sale of special fuel is made to a  person
    holding  a  valid  unrevoked  license  as a supplier or a
    distributor by making  a  specific  notation  thereof  on
    invoice or sales slip covering each such sale.
         5.  When  a  sale of special fuel is made to someone
    other than a licensed distributor, licensed supplier,  or
    licensed  bulk  user  for  a  use  other  than  in  motor
    vehicles,  by  making  a specific notation thereof on the
    invoice or sales slip covering such  sale  and  obtaining
    such  supporting  documentation as may be required by the
    Department.  The  supplier  shall  obtain  and  keep  the
    supporting documentation in such form as  the  Department
    may  require  by rule. The supporting documentation shall
    be signed by the buyer of  the  special  fuel  and  shall
    specify the reasons for which the sale should be made tax
    free.  It  shall  be  made  available  by the supplier on
    demand for inspection and copying by the Department.
         6.  (Blank). When a sale of special fuel is made  to
    a  licensed  bulk  user with a valid, unrevoked permit to
    purchase special fuel tax exempt.
         7.  When a sale of special fuel is made to a  person
    where delivery is made outside of this State.
    All  special  fuel  sold or used for non-highway purposes
must have a dye added in accordance with Section 4d  of  this
Law.
    All suits or other proceedings brought for the purpose of
recovering  any taxes, interest or penalties due the State of
Illinois under this Act may be maintained in the name of  the
Department.
(Source: P.A. 89-399, eff. 8-20-95.)

    (35 ILCS 505/8) (from Ch. 120, par. 424)
    Sec.  8.   Except  as provided in Sections Section 8a and
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 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;
    (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)  $1,500,000  shall  be  transferred each month to the
Grade Crossing Protection Fund to be  used  as  follows:  not
less  than  $6,000,000 each fiscal year shall be used for the
construction  or  reconstruction  of   rail   highway   grade
separation  structures;  beginning  with fiscal year 1997 and
ending in fiscal  year  1999,  $1,500,000,  and  $750,000  in
fiscal  year  2000  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
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 or
streets 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  including
the  necessary  highway  approaches  thereto  of any railroad
across the highway or public road, as provided for in and  in
accordance  with  Section  18c-7401  of  the Illinois Vehicle
Code.  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),  (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
    apportioned  to   municipalities,   counties   and   road
    districts;
         (3)  refunds  provided for in Section 13 of this Act
    and  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 beginning July 1, 1994,
    and until December 31, 2000, one-twelfth  of  $25,000,000
    each   month   for  the  administration  of  the  Vehicle
    Emissions Inspection Law of 1995, to  be  transferred  by
    the  State  Comptroller and Treasurer from the Motor Fuel
    Tax Fund into the Vehicle Inspection Fund;
         (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), (b), (c) and (d), the remaining amount shall
be apportioned as follows:
         (1)  58.4% shall be deposited as follows:
              (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)  41.6% 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.
    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 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
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,  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.  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.  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 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  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 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.
    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, "road district" also
includes  park  districts,  forest  preserve  districts   and
conservation  districts  organized  under  Illinois  law  and
"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.  89-167,  eff.  1-1-96;  89-445,  eff. 2-7-96;
89-699, eff. 1-16-97;  90-110,  eff.  7-14-97;  90-655,  eff.
7-30-98;  90-659,  eff.  1-1-99; 90-691, eff. 1-1-99; revised
9-16-98.)

    (35 ILCS 505/11.5) (from Ch. 120, par. 427a)
    Sec. 11.5.  In the event that  liability  upon  the  bond
filed  by  a distributor, supplier, or receiver, or bulk user
with the Department shall be discharged or  reduced,  whether
by judgment rendered, payment made or otherwise, or if in the
opinion  of  the  Department  the  bond  of  any distributor,
supplier, or receiver, or bulk user theretofore  given  shall
become  unsatisfactory,  then  the  distributor, supplier, or
receiver, or bulk user  shall  forthwith,  upon  the  written
demand  of the Department, file a new bond in the same manner
and form and in an amount and with sureties  satisfactory  to
the  Department, failing which the Department shall forthwith
revoke the license of the distributor, supplier, or receiver,
or bulk user.
    If such new bond shall be furnished by  the  distributor,
supplier,  or  receiver,  or bulk user as above provided, the
Department shall cancel the bond  for  which  such  new  bond
shall be substituted.
    Any  surety  on  any  bond  furnished by any distributor,
supplier, or receiver, or bulk user  shall  be  released  and
discharged  from  any  and  all  liability  to  the  State of
Illinois accruing on such bond after  the  expiration  of  60
days  from  the  date upon which such surety shall have filed
with the Department written request so  to  be  released  and
discharged.  But  such  request shall not operate to relieve,
release or discharge such surety from any  liability  already
accrued, or which shall accrue, before the expiration of said
60-day  period.  The Department shall, promptly on receipt of
such request, notify the distributor, supplier, or  receiver,
or  bulk  user  and,  unless  such  distributor, supplier, or
receiver, or bulk user shall on or before the  expiration  of
such 60-day period file with the Department a new bond with a
surety  or  sureties  satisfactory  to  the Department in the
amount and form hereinbefore provided, the  Department  shall
forthwith  cancel  the license of such distributor, supplier,
or receiver,  or  bulk  user.  If  such  new  bond  shall  be
furnished by said distributor, supplier, or receiver, or bulk
user  as above provided, the Department shall cancel the bond
for which such new bond shall be substituted.
(Source: P.A. 86-958; 87-895.)

    (35 ILCS 505/12) (from Ch. 120, par. 428)
    Sec. 12.  It is the duty of every distributor,  receiver,
and  or supplier under this Act to keep within this State and
of every bulk user under this Act to keep within  this  State
or at some office outside this State for any period for which
the  Department  is  authorized  to  issue  a  Notice  of Tax
Liability to the distributor, receiver, or supplier  or  bulk
user,  records  and  books  showing  all purchases, receipts,
losses through any cause,  sales,  distribution  and  use  of
motor  fuel, aviation fuels, home heating oils, and kerosene,
and products used for the  purpose  of  blending  to  produce
motor  fuel,  which  records  and  books  shall, at all times
during business hours of the day, be subject to inspection by
the Department, or its duly authorized agents and  employees.
If,  however, the records and books of any bulk user are kept
out of this State, such records and books shall  be  produced
for  inspection  within  20 days from date of notice from the
Department at Springfield or Chicago as  designated  in  that
notice.   For  purposes  of this Section, "records" means all
data maintained by the  taxpayer  including  data  on  paper,
microfilm,  microfiche  or  any type of machine-sensible data
compilation. The Department may, in its discretion, prescribe
reasonable and uniform methods for  keeping  of  records  and
books  by  licensees  and that set forth requirements for the
form and format of records that must be maintained  in  order
to comply with any recordkeeping requirement under this Act.
(Source: P.A. 88-480.)

    (35 ILCS 505/12a) (from Ch. 120, par. 428a)
    Sec.  12a.  (a)  Any duly authorized agent or employee of
the Department shall have authority to enter in or  upon  the
premises  of  any  manufacturer,  vendor,  dealer,  retailer,
distributor,  receiver,  supplier  or  user  of motor fuel or
special fuels during the regular business hours in  order  to
examine  books,  records,  invoices,  storage  tanks, and any
other applicable equipment pertaining to motor fuel, aviation
fuels, home heating oils,  kerosene,  or  special  fuels,  to
determine  whether  or not the taxes imposed by this Act have
been paid.
    (b)  Any duly authorized agent of  the  Department,  upon
presenting  appropriate  credentials  and a written notice to
the person who owns, operates, or controls the  place  to  be
inspected, shall have the authority to enter any place and to
conduct   inspections  in  accordance  with  subsections  (b)
through (g) of this Section.
    (c)  Inspections will be performed in a reasonable manner
and at times that are  reasonable  under  the  circumstances,
taking  into  consideration  the normal business hours of the
place to be entered.
    (d)  Inspections may be at any  place  at  which  taxable
motor  fuel  is  or  may  be  produced  or  stored  or at any
inspection site where evidence of  the  following  activities
may be discovered:
         (1)  Where  any dyed diesel fuel is sold or held for
    sale by any person for any use which the person knows  or
    has reason to know is not a nontaxable use of such fuel.
         (2)  Where  any  dyed diesel fuel is held for use or
    used by any person for a use other than a nontaxable  use
    and the person knew, or had reason to know, that the fuel
    was dyed according to Section 4d.
         (3)  Where  any person willfully alters, or attempts
    to alter, the strength  or  composition  of  any  dye  or
    marking done pursuant to Section 4d of this Law.
    The  places  may  include,  but  are  not limited to, the
following:
         (1)  Any terminal.
         (2)  Any  fuel  storage  facility  that  is  not   a
    terminal.
         (3)  Any retail fuel facility.
         (4)  Any designated inspection site.
    (e)  Duly   authorized   agents  of  the  Department  may
physically inspect, examine, or otherwise  search  any  tank,
reservoir, or other container that can or may be used for the
production, storage, or transportation of fuel, fuel dyes, or
fuel  markers.   Inspection may also be made of any equipment
used for, or in  connection  with,  production,  storage,  or
transportation  of  fuel,  fuel  dyes, or fuel markers.  This
includes any equipment used for  the  dyeing  or  marking  of
fuel.  This also includes books and records, if any, that are
maintained  at  the  place  of  inspection  and  are  kept to
determine tax liability under this Law.
    (f)  Duly authorized agents of the Department may  detain
any  motor  vehicle,  train,  barge,  ship, or vessel for the
purpose of inspecting  its  fuel  tanks  and  storage  tanks.
Detainment will be either on the premises under inspection or
at a designated inspection site.  Detainment may continue for
a  reasonable period of time as is necessary to determine the
amount and composition of the fuel.
    (g)  Duly authorized agents of the  Department  may  take
and  remove  samples  of fuel in quantities as are reasonably
necessary to determine the composition of the fuel.
    (h) (1)  Any person that refuses to allow  an  inspection
    shall  pay  a  $1,000  penalty  for  each  refusal.  This
    penalty is in addition to any other penalty or  tax  that
    may  be  imposed  upon  that  person  or any other person
    liable for tax under this Law.   All  penalties  received
    under  this  subsection  shall  be deposited into the Tax
    Compliance and Administration Fund.
         (2)  In addition, any licensee who refuses to  allow
    an  inspection  shall be subject to license revocation as
    provided by Section 16 of this Law  ;  provided  that  if
    such books, records or invoices of any bulk user are kept
    out  of this State, such books, records or invoices shall
    be produced for examination within 20 days from the  date
    of  notice  from the Department at Springfield or Chicago
    as designated in said notice.
(Source: P.A. 86-958.)

    (35 ILCS 505/13) (from Ch. 120, par. 429)
    Sec.  13.  Any  person  other  than  a   distributor   or
supplier,  who  loses  motor  fuel  through any cause or uses
motor fuel (upon which he has paid the amount required to  be
collected  under Section 2 of this Act) for any purpose other
than operating a motor vehicle upon the  public  highways  or
waters, shall be reimbursed and repaid the amount so paid.
    Any  person who purchases motor fuel in Illinois and uses
that motor fuel in another state and that other state imposes
a tax on the use of such motor fuel shall be  reimbursed  and
repaid  the  amount  of  Illinois tax paid under Section 2 of
this Act  on  the  motor  fuel  used  in  such  other  state.
Reimbursement  and  repayment shall be made by the Department
upon receipt of adequate proof of taxes paid to another state
and the amount of motor fuel used in that state.
    Claims  for  such  reimbursement  must  be  made  to  the
Department of Revenue, duly verified by the claimant  (or  by
the  claimant's legal representative if the claimant has died
or become  a  person  under  legal  disability),  upon  forms
prescribed  by  the  Department.   The  claim must state such
facts relating to the purchase, importation,  manufacture  or
production   of  the  motor  fuel  by  the  claimant  as  the
Department may deem necessary, and the  time  when,  and  the
circumstances  of  its loss or the specific purpose for which
it was used (as the case may be), together  with  such  other
information  as  the  Department  may reasonably require.  No
claim based upon idle time shall be allowed.  Claims for full
reimbursement must be filed not later than one year after the
date on which the tax was paid by the claimant.
    If, however, a claim  for  such  reimbursement  otherwise
meeting  the  requirements of this Section is filed more than
one year but less than 2 years after that date, the  claimant
shall be reimbursed at the rate of 80% of the amount to which
he  would  have  been  entitled  if his claim had been timely
filed.
    The  Department  may  make  such  investigation  of   the
correctness  of  the  facts stated in such claims as it deems
necessary.  When the Department has approved any such  claim,
it  shall  pay  to  the  claimant (or to the claimant's legal
representative, as such if the claimant has died or become  a
person  under legal disability) the reimbursement provided in
this Section, out of any moneys appropriated to it  for  that
purpose.
    Any  distributor or supplier who has paid the tax imposed
by Section 2 of this Act upon motor fuel lost or used by such
distributor or supplier for any purpose other than  operating
a motor vehicle upon the public highways or waters may file a
claim  for  credit  or  refund to recover the amount so paid.
Such claims  shall  be  filed  on  forms  prescribed  by  the
Department.   Such  claims  shall  be made to the Department,
duly verified by the claimant (or  by  the  claimant's  legal
representative  if  the  claimant has died or become a person
under  legal  disability),  upon  forms  prescribed  by   the
Department.  The claim shall state such facts relating to the
purchase, importation, manufacture or production of the motor
fuel by the claimant as the Department may deem necessary and
the  time  when  the loss or nontaxable use occurred, and the
circumstances of its loss or the specific purpose  for  which
it  was  used  (as the case may be), together with such other
information as the Department may reasonably require.  Claims
must be filed not later than one year after the date on which
the tax was paid by the claimant.
    The  Department  may  make  such  investigation  of   the
correctness  of  the  facts stated in such claims as it deems
necessary.   When  the  Department  approves  a  claim,   the
Department  shall  issue  a  refund  or  credit memorandum as
requested by the taxpayer, to the distributor or supplier who
made the payment for which the  refund  or  credit  is  being
given  or,  if the distributor or supplier has died or become
incompetent,  to  such  distributor's  or  supplier's   legal
representative,   as   such.    The  amount  of  such  credit
memorandum shall be credited against any tax due or to become
due under this Act from the distributor or supplier who  made
the payment for which credit has been given.
    Any  credit  or refund that is allowed under this Section
shall bear interest at the rate and in the  manner  specified
in the Uniform Penalty and Interest Act.
    In  case  the  distributor  or  supplier requests and the
Department determines that the  claimant  is  entitled  to  a
refund,   such   refund   shall   be   made  only  from  such
appropriation as may be available for  that  purpose.  If  it
appears  unlikely  that  the amount appropriated would permit
everyone having a claim allowed during the period covered  by
such  appropriation  to  elect  to receive a cash refund, the
Department, by rule or  regulation,  shall  provide  for  the
payment  of  refunds  in hardship cases and shall define what
types of cases qualify as hardship cases.
    In any case in which there has been an  erroneous  refund
of  tax payable under this Section, a notice of tax liability
may be issued at any time within 3 years from the  making  of
that refund, or within 5 years from the making of that refund
if  it  appears  that  any  part of the refund was induced by
fraud or the misrepresentation of material fact.  The  amount
of  any proposed assessment set forth by the Department shall
be limited to the amount of the erroneous refund.
    If no  tax  is  due  and  no  proceeding  is  pending  to
determine whether such distributor or supplier is indebted to
the  Department  for tax, the credit memorandum so issued may
be assigned and  set  over  by  the  lawful  holder  thereof,
subject  to  reasonable rules of the Department, to any other
licensed distributor or supplier who is subject to this  Act,
and  the amount thereof applied by the Department against any
tax due or to become due under this Act from such assignee.
    If the payment for which the distributor's or  supplier's
claim  is  filed  is  held  in  the protest fund of the State
Treasury  during  the  pendency  of  the  claim  for   credit
proceedings  pursuant to the order of the court in accordance
with Section 2a of the State  Officers  and  Employees  Money
Disposition  Act and if it is determined by the Department or
by  the  final  order  of  a  reviewing   court   under   the
Administrative  Review  Law  that the claimant is entitled to
all or a part of the credit claimed, the claimant, instead of
receiving a credit  memorandum  from  the  Department,  shall
receive  a  cash refund from the protest fund as provided for
in Section 2a of  the  State  Officers  and  Employees  Money
Disposition Act.
    If  any  person ceases to be licensed as a distributor or
supplier while still  holding  an  unused  credit  memorandum
issued  under  this  Act,  such  person may, at his  election
(instead of assigning the credit  memorandum  to  a  licensed
distributor  or  licensed supplier under this Act), surrender
such unused credit memorandum to the Department and receive a
refund of the amount to which such person is entitled.
    No claim based upon the use of undyed diesel  fuel  shall
be allowed except for undyed diesel fuel used by a commercial
vehicle,  as  that  term is defined in Section 1-111.8 of the
Illinois Vehicle Code, for any purpose other  than  operating
the   commercial   vehicle   upon  the  public  highways  and
unlicensed commercial vehicles operating on private property.
Claims shall be  limited  to  commercial  vehicles  that  are
operated  for  both  highway  purposes and any purposes other
than operating such vehicles upon the public  highways.   The
Department shall promulgate regulations establishing specific
limits  on  the  amount  of  undyed  diesel  fuel that may be
claimed for refund.
    For purposes of  claims  for  refund,  "loss"  means  the
reduction of motor fuel resulting from fire, theft, spillage,
spoilage,  leakage, or any other provable cause, but does not
include a reduction resulting from evaporation  or  shrinkage
due to temperature variations.
(Source: P.A. 90-491, eff. 1-1-98.)

    (35 ILCS 505/13a.6) (from Ch. 120, par. 429a6)
    Sec.  13a.6.   In addition to any other penalties imposed
by this Act:
    (a)  If a commercial motor vehicle is found operating  in
Illinois  (i)  without  displaying decals required by Section
13a.4 of this Act, or in lieu thereof  only  for  the  period
specified   on   the   temporary   permit,   a  valid  30-day
International Fuel Tax Agreement temporary  permit,  (ii)  or
without  carrying a motor fuel use tax license as required by
Section 13a.4 of this Act, or (iii) without carrying a single
trip permit, when applicable, as provided in Section 13a.5 of
this Act, or (iv) with a revoked motor fuel use tax  license,
the  operator  is  guilty  of  a petty offense and must pay a
minimum of $75. For each subsequent occurrence, the  operator
must pay a minimum of $150.
    When  a commercial vehicle is found operating in Illinois
with a revoked motor fuel use tax license, the vehicle  shall
be  placed  out  of  service  and  not  allowed to operate in
Illinois until the motor fuel use tax license is reinstated.
    (b)  If  a  commercial  motor  vehicle  is  found  to  be
operating in Illinois without a  valid  motor  fuel  use  tax
license  and  without  properly displaying decals required by
Section 13a.4 or without a  valid  single  trip  permit  when
required  by  Section  13a.5  of  this  Act or a valid 30-day
International Fuel Tax Agreement temporary permit, the person
required to obtain a license or permit under Section 13a.4 or
13a.5 of this Law operator must pay a minimum of $1,000 as  a
penalty.  For each subsequent occurrence, the person must pay
a minimum of $2,000 as a penalty.
    All  penalties  received  under  this  Section  shall  be
deposited into the Tax Compliance and Administration Fund.
    Improper  use  of  the motor fuel use tax license, single
trip permit, or decals provided for in this  Section  may  be
cause for revocation of the license.
    For  purposes  of  this  Section,  "motor  fuel  use  tax
license" means (i) a motor fuel use tax license issued by the
Department   or   by   any   member  jurisdiction  under  the
International Fuel Tax Agreement,  or  (ii)  a  valid  30-day
International Fuel Tax Agreement temporary permit.
(Source:  P.A.  88-480;  88-669,  eff. 11-29-94; 89-399, eff.
8-20-95.)

    (35 ILCS 505/13a.7) (from Ch. 120, par. 429a7)
    Sec. 13a.7.  Notwithstanding the  provisions  for  credit
memoranda,  credits  or refunds contained in Section 13a.3 of
this Act, no credit memorandum, credit  or  refund  shall  be
allowed  or  made based upon a return filed more than 4 years
after the due date of the return or the date  the  return  is
filed,  whichever  is  later.  In any case in which there has
been an erroneous refund of tax payable under this Section, a
notice of tax liability may be issued at any  time  within  3
years  from  the making of that refund or within 5 years from
the making of that refund if it appears that any part of  the
refund  was  induced  by  fraud  or  the misrepresentation of
material fact.  The amount of  any  proposed  assessment  set
forth by the Department shall be limited to the amount of the
erroneous refund.
(Source: P.A. 90-491, eff. 1-1-98.)

    (35 ILCS 505/15) (from Ch. 120, par. 431)
    Sec.   15.   1.  Any  person  who  knowingly  acts  as  a
distributor of motor fuel or supplier or bulk user of special
fuel, or receiver of fuel without having a license so to  do,
or  who  knowingly fails or refuses to file a return with the
Department as provided in Section 2b, Section 5,  or  Section
5a  or  Section  5b  of  this  Act, or who knowingly fails or
refuses to make payment to the Department as provided  either
in  Section  2b,  Section 6, Section 6a, or Section 7 of this
Act, shall be guilty of a Class 3 felony. Each day any person
knowingly acts as a distributor of motor  fuel,  supplier  or
bulk user of special fuel, or receiver of fuel without having
a  license so to do or after such a license has been revoked,
constitutes a separate offense.
    2.  Any person who acts as a motor carrier without having
a valid motor fuel use tax license, issued by the  Department
or  by  a  member  jurisdiction  under  the provisions of the
International Fuel Tax Agreement,  or  a  valid  single  trip
permit is guilty of a Class A misdemeanor for a first offense
and  is  guilty  of  a  Class  4  felony  for each subsequent
offense. Any person (i) who fails or refuses to make  payment
to the Department as provided in Section 13a.1 of this Act or
in the International Fuel Tax Agreement referenced in Section
14a,  or  (ii)  who  fails  or  refuses to make the quarterly
return as provided in Section 13a.3 is guilty of  a  Class  4
felony;  and  for  each  subsequent  offense,  such person is
guilty of a Class 3 felony.
    3.  In  case  such  person  acting  as   a   distributor,
receiver,  supplier,  or  bulk  user  or  motor  carrier is a
corporation, then the officer or officers, agent  or  agents,
employee  or  employees,  of such corporation responsible for
any act of such corporation, or failure of  such  corporation
to  act, which acts or failure to act constitutes a violation
of any of  the  provisions  of  this  Act  as  enumerated  in
paragraphs 1 and 2 of this Section, shall be punished by such
fine  or  imprisonment, or by both such fine and imprisonment
as provided in those paragraphs.
    3.5.  Any person who knowingly enters  false  information
on  any  supporting  documentation  required  to  be  kept by
Section 6 or 6a of this Act is guilty of a Class 3 felony.
    3.7.  Any person who knowingly attempts in any manner  to
evade or defeat any tax imposed by this Act or the payment of
any tax imposed by this Act is guilty of a Class 2 felony.
    4.  Any  person  who  refuses, upon demand, to submit for
inspection, books and records, or who  fails  or  refuses  to
keep  books  and  records  in violation of Section 12 of this
Act, or any distributor, receiver, or supplier, or bulk  user
who violates any reasonable rule or regulation adopted by the
Department  for  the  enforcement  of this Act is guilty of a
Class A misdemeanor.  Any person who acts  as  a  blender  in
violation  of Section 3 of this Act or who having transported
reportable motor fuel within Section 7b of this Act fails  to
make  the  return  required  by  that Section, is guilty of a
Class 4 felony.
    5.  Any person licensed under Section  13a.4,  13a.5,  or
the  International  Fuel  Tax  Agreement  who:  (a)  fails or
refuses to keep records and books,  as  provided  in  Section
13a.2  or  as required by the terms of the International Fuel
Tax Agreement, (b) refuses upon demand by the  Department  to
submit for inspection and examination the records required by
Section   13a.2   of   this  Act  or  by  the  terms  of  the
International Motor Fuel Tax Agreement, or (c)  violates  any
reasonable  rule  or regulation adopted by the Department for
the  enforcement  of  this  Act,  is  guilty  of  a  Class  A
misdemeanor.
    6.  Any person who makes any false return  or  report  to
the  Department  as to any material fact required by Sections
2b, 5, 5a, 5b, 7,  13,  or  13a.3  of  this  Act  or  by  the
International  Fuel  Tax  Agreement  is  guilty  of a Class 2
felony.
    7.  A prosecution for any violation of this  Section  may
be commenced anytime within 5 years of the commission of that
violation.  A  prosecution  for  tax  evasion as set forth in
paragraph 3.7 of this Section  may  be  prosecuted  any  time
within  5  years  of  the  commission  of  the  last  act  in
furtherance   of  evasion.  The  running  of  the  period  of
limitations under this Section shall be suspended  while  any
proceeding  or  appeal  from  any  proceeding relating to the
quashing or enforcement of any grand jury  or  administrative
subpoena  issued  in  connection with an investigation of the
violation of any provision of this Act is pending.
    8.  Any person who provides false documentation  required
by any Section of this Act is guilty of a Class 4 felony.
    9.  Any  person  filing a fraudulent application or order
form under any provision of this Act is guilty of a  Class  A
misdemeanor.   For  each  subsequent  offense,  the person is
guilty of a Class 4 felony.
    10.  Any person who acts as a motor carrier and who fails
to carry a manifest as provided in Section 5.5 is guilty of a
Class A misdemeanor. For each subsequent offense, the  person
is guilty of a Class 4 felony.
    11.  Any  person  who knowingly sells or attempts to sell
dyed diesel fuel for highway use  is  guilty  of  a  Class  4
felony.  For each subsequent offense, the person is guilty of
a Class 2 felony.
    12.  Any  person who knowingly possesses dyed diesel fuel
for highway use is guilty of a Class A misdemeanor.  For each
subsequent offense, the person is guilty of a Class 4 felony.
    13. Any person who sells or transports dyed  diesel  fuel
without  the  notice  required  by  Section  4e shall pay the
following penalty:
    First occurrence....................................$ 500
    Second and each occurrence thereafter..............$1,000
    14.  Any person  who  owns,  operates,  or  controls  any
container,  storage  tank,  or  facility  used  to  store  or
distribute  dyed  diesel  fuel without the notice required by
Section 4f shall pay the following penalty:
    First occurrence....................................$ 500
    Second and each occurrence thereafter..............$1,000
    15.  If a licensed motor vehicle is found  to  have  dyed
diesel  fuel  within  the ordinary fuel tanks attached to the
motor vehicle, the operator shall pay the following penalty:
    First occurrence...................................$2,500
    Second and each occurrence thereafter..............$5,000
    16.  Any licensed  motor  fuel  distributor  or  licensed
supplier  who  sells or attempts to sell dyed diesel fuel for
highway use shall pay the following penalty:
    First occurrence..................................$ 5,000
    Second and each occurrence thereafter.............$10,000
    17.  Any person who knowingly sells  or  transports  dyed
diesel  fuel  without  the  notice  required by Section 4e is
guilty of a petty offense.  For each subsequent offense,  the
person is guilty of a Class A misdemeanor.
    18.  Any person who knowingly owns, operates, or controls
any  container,  storage  tank,  or facility used to store or
distribute dyed diesel fuel without the  notice  required  by
Section 4f is guilty of a petty offense.  For each subsequent
offense the person is guilty of a Class A misdemeanor.
    For  purposes of this Section, dyed diesel fuel means any
dyed diesel fuel whether or not dyed pursuant to  Section  4d
of this Law.
    All  penalties received under items 13, 14, 15, and 16 of
this Section shall be deposited into the Tax  Compliance  and
Administration Fund.
(Source:  P.A.  88-480;  88-669,  eff. 11-29-94; 89-399, eff.
8-20-95.)

    (35 ILCS 505/16) (from Ch. 120, par. 432)
    Sec. 16.  The  Department  may,  after  5  days'  notice,
revoke  the  distributor's, receiver's, or supplier's or bulk
user's license or permit of  any  person  (1)  who  does  not
operate as a distributor, receiver, supplier or bulk user (a)
under  Sections  1.2,  1.14, 1.15, or 1.20, (other than those
persons who hold licenses under Paragraph A  of  Section  3),
(b) under Paragraph B of Section 3, or (c) under Section 3a-1
or  (2) who violates any provision of this Act or any rule or
regulation promulgated by the Department under Section 14  of
this  Act, or (3) who refuses to allow any inspection or test
authorized by this Law.
    Any person whose returns for 2 or more consecutive months
do not show sufficient taxable sales to  indicate  an  active
business  as  a  distributor,  receiver, or supplier shall be
deemed to not be operating as  a  distributor,  receiver,  or
supplier as defined in Sections 1.2, 1.14 or 1.20.
    The  Department  may,  after  5  days  notice, revoke any
distributor's, receiver's, or supplier's license of a  person
who  is  registered  as  a reseller of motor fuel pursuant to
Section 2a or 2c of the Retailers' Occupation Tax Act and who
fails to collect such prepaid  tax  on  invoiced  gallons  of
motor  fuel  sold  or who fails to deliver a statement of tax
paid to the purchaser or to the  Department  as  required  by
Sections 2d and 2e of the Retailers' Occupation Tax Act.
    The  Department  may, on notice given by registered mail,
cancel a Blender's Permit for any violation of any provisions
of this Act or for noncompliance with any rule or  regulation
made by the Department under Section 14 of this Act.
    The  Department,  upon  complaint  filed  in  the circuit
court, may, by injunction, restrain any person who  fails  or
refuses to comply with the provisions of this Act from acting
as  a  blender  or  distributor  of  motor  fuel, supplier of
special fuel, bulk user of special fuel, or receiver of  fuel
in this State.
    The  Department may revoke the motor fuel use tax license
of a motor carrier registered under Section 13a.4, or that is
required  to  be  registered   under   the   terms   of   the
International Fuel Tax Agreement, that violates any provision
of  this  Act or any rule promulgated by the Department under
Sections 14 or 14a of this Act.  Motor fuel use tax  licenses
that  have  been  revoked are subject to a $100 reinstatement
fee.
    Licensees registered or required to be  registered  under
Section  13a.4,  or  persons  required  to obtain single trip
permits under Section 13a.5, may protest any action or  audit
finding  made  by  the Department by making a written request
for a hearing within 30 days after service of the  notice  of
the  original  action  or  finding.   If  the  hearing is not
requested within 30 days in writing, the original finding  or
action is final.  Once a hearing has been properly requested,
the  Department shall give at least 20 days written notice of
the time and place of the hearing.
(Source: P.A. 88-480; 88-669,  eff.  11-29-94;  89-399,  eff.
8-20-95.)

    (35 ILCS 505/1.15 rep.)
    (35 ILCS 505/3a-1 rep.)
    (35 ILCS 505/3b rep.)
    (35 ILCS 505/5b rep.)
    Section  10.   The  Motor  Fuel  Tax  Law  is  amended by
repealing Sections 1.15, 3a-1, 3b, and 5b.

    Section 12.  The  Environmental Impact Fee Law is amended
by changing Section 315 as follows:

    (415 ILCS 125/315)
    (Section scheduled to be repealed on January 1, 2003)
    Sec. 315.  Fee on receivers of  fuel  for  sale  or  use;
collection  and  reporting.  A person that is required to pay
the fee imposed  by  this  Law  shall  pay  the  fee  to  the
Department by return showing all fuel purchased, acquired, or
received  and  sold, distributed or used during the preceding
calendar month, including losses of fuel  as  the  result  of
evaporation  or  shrinkage  due  to  temperature  variations.
Losses  of fuel as the result of evaporation or shrinkage due
to temperature variations may not exceed one percent  of  the
total  gallons in storage at the beginning of the month, plus
the  receipts  of  gallonage  during  the  month,  minus  the
gallonage remaining in storage at the end of the month.   Any
loss  reported  that  is  in  excess  of this amount shall be
subject to the fee imposed by Section 310 of this Law.
    The return shall be  prescribed  by  the  Department  and
shall be filed between the 1st and 20th days of each calendar
month.   The  Department  may, in its discretion, combine the
return filed under this  Law  with  the  return  filed  under
Section  2b  of  the  Motor  Fuel  Tax Law.  If the return is
timely filed, the receiver may  take  a  discount  of  2%  to
reimburse  himself  for  the  expenses  incurred  in  keeping
records,   preparing   and  filing  returns,  collecting  and
remitting the fee, and supplying data to  the  Department  on
request.  However, the 2% discount applies only to the amount
of  the  fee payment that accompanies a return that is timely
filed in accordance with this Section.
(Source: P.A. 89-428, eff. 1-1-96; 89-457, eff. 5-22-96.)

    Section 15.  The Illinois  Vehicle  Code  is  amended  by
adding Section 11-1419.05 as follows:

    (625 ILCS 5/11-1419.05 new)
    Sec.  11-1419.05.  A  motor  carrier shall not operate or
cause to be operated a  commercial  motor  vehicle  upon  the
highways  of  this  State  with  a revoked motor fuel use tax
license.  Any person who operates a commercial motor  vehicle
with  a  revoked  motor  fuel  use tax license is guilty of a
petty offense as provided in Section 13a.6 of the Motor  Fuel
Tax  Law.  When  a  commercial  motor  vehicle is found to be
operating in Illinois with  a  revoked  motor  fuel  use  tax
license,  the  vehicle shall be placed out of service and not
allowed to operate in Illinois until the motor fuel  use  tax
license is reinstated.
    Section  99.   Effective  date.   This  Act  takes effect
January 1, 2000.
                            INDEX
           Statutes amended in order of appearance
35 ILCS 505/1.2           from Ch. 120, par. 417.2
35 ILCS 505/1.5           from Ch. 120, par. 417.5
35 ILCS 505/1.13A         from Ch. 120, par. 417.13A
35 ILCS 505 1.13B new
35 ILCS 505/1.14          from Ch. 120, par. 417.14
35 ILCS 505/1.23 new
35 ILCS 505/1.24 new
35 ILCS 505/1.25 new
35 ILCS 505/1.26 new
35 ILCS 505/2             from Ch. 120, par. 418
35 ILCS 505/2b            from Ch. 120, par. 418b
35 ILCS 505/3             from Ch. 120, par. 419
35 ILCS 505/3a            from Ch. 120, par. 419a
35 ILCS 505/3c            from Ch. 120, par. 419b.1
35 ILCS 505/4c            from Ch. 120, par. 419c
N5 ILCS 505/4d new
35 ILCS 505/4e new
35 ILCS 505/4f new
35 ILCS 505/5             from Ch. 120, par. 421
35 ILCS 505/5a            from Ch. 120, par. 421a
35 ILCS 505/6             from Ch. 120, par. 422
35 ILCS 505/6a            from Ch. 120, par. 422a
35 ILCS 505/8             from Ch. 120, par. 424
35 ILCS 505/11.5          from Ch. 120, par. 427a
35 ILCS 505/12            from Ch. 120, par. 428
35 ILCS 505/12a           from Ch. 120, par. 428a
35 ILCS 505/13            from Ch. 120, par. 429
35 ILCS 505/13a.6         from Ch. 120, par. 429a6
35 ILCS 505/13a.7         from Ch. 120, par. 429a7
35 ILCS 505/15            from Ch. 120, par. 431
35 ILCS 505/16            from Ch. 120, par. 432
35 ILCS 505/1.15 rep.
35 ILCS 505/3a-1 rep.
N5 ILCS 505/3b rep.
35 ILCS 505/5b rep.
625 ILCS 5/11-1419.05 new

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