AUTHORITY: Implementing the Motor Fuel Tax Law [35 ILCS 505] and authorized by Section 2505-20 of the Civil Administrative Code of Illinois. (Department of Revenue Law) [20 ILCS 2505].
SOURCE: Adopted July 3, 1931; amended at 2 Ill. Reg. 1, p. 97, effective December 31, 1978; amended at 3 Ill. Reg. 13, p. 98, effective March 25, 1979; amended at 4 Ill. Reg. 28, p. 568, effective June 1, 1980; codified at 8 Ill. Reg. 8612; amended at 10 Ill. Reg. 4540, effective February 28, 1986; amended at 11 Ill. Reg. 10295, effective May 18, 1987; emergency amendment at 13 Ill. Reg. 13271, effective August 7, 1989, for a maximum of 150 days; emergency expired January 4, 1990; amended at 14 Ill. Reg. 6826, effective April 19, 1990; amended at 15 Ill. Reg. 6305, effective April 16, 1991; amended at 15 Ill. Reg. 13538, effective August 30, 1991; recodified at 18 Ill. Reg. 4451; amended at 19 Ill. Reg. 3008, effective February 28, 1995; amended at 19 Ill. Reg. 17195, effective December 18, 1995; amended at 20 Ill. Reg. 10168, effective July 16, 1996; amended at 22 Ill. Reg. 2253, effective January 9, 1998; amended at 22 Ill. Reg. 14917, effective August 3, 1998; amended at 22 Ill. Reg. 16322, effective August 25, 1998; amended at 22 Ill. Reg. 20299, effective December 1, 1998; emergency amendment at 24 Ill. Reg. 880, effective January 1, 2000, for a maximum of 150 days; amended at 24 Ill. Reg. 6918, effective April 21, 2000; amended at 24 Ill. Reg. 17826, effective November 28, 2000; amended at 26 Ill. Reg. 9912, effective June 24, 2002; amended at 27 Ill. Reg. 7870, effective April 21, 2003; emergency amendment at 27 Ill. Reg. 10547, effective July 1, 2003, for a maximum of 150 days; emergency expired November 27, 2003; amended at 28 Ill. Reg. 3921, effective February 13, 2004; amended at 32 Ill. Reg. 7134, effective April 21, 2008; amended at 36 Ill. Reg. 6677, effective April 12, 2012; amended at 38 Ill. Reg. 18586, effective August 21, 2014; amended at 39 Ill. Reg. 14728, effective October 23, 2015; amended at 44 Ill. Reg. 3282, effective February 10, 2020; amended at 47 Ill. Reg. 1473, effective January 17, 2023; amended at 47 Ill. Reg. 8887, effective June 6, 2023; amended at 49 Ill. Reg. 3261, effective February 26, 2025.
SUBPART A: DEFINITIONS
Section 500.100 Definitions
For purposes of this Part, the following definitions apply:
"Base Jurisdiction" means the jurisdiction where commercial motor vehicles are based for vehicle registration purposes and:
Where the operational control and operational records of the licensee's commercial motor vehicles are maintained or can be made available; and
Where some travel is accrued by commercial motor vehicles within the fleet.
"Blender" means any person who engages in the practice of blending. (Section 1.6 of the Law)
"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 the Law. (Section 1.5 of the Law)
"Commercial Motor Vehicle" means a motor vehicle used, designed, or maintained for the transportation of persons or property and either having 2 axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,793 kilograms, or having 3 or more axles regardless of weight, or that is used in combination, when the weight of the combination exceeds 26,000 pounds or 11,793 kilograms gross vehicle weight or registered gross vehicle weight. For purposes of administration of the Motor Fuel Use Tax imposed by Section 13a of the Law, this term does not include motor vehicles operated by the State of Illinois or the United States, recreational vehicles, school buses and commercial motor vehicles operated solely within Illinois for which all motor fuel is purchased within this State. (Section 1.16 of the Law)
EXAMPLE 1: Weight of the combination exceeds 26,000 pounds gross vehicle weight. If a truck used in combination with a trailer is weighed at a weigh station and the combined weight exceeds 26,000 pounds, then that truck and trailer combination meets the definition of "commercial motor vehicle" subject to the IFTA licensing requirements. Failure to meet those requirements will result in imposition of the penalties in Section 13a.6 of the Law.
EXAMPLE 2: Weight of the combination exceeds 26,000 pounds registered gross vehicle weight. If a truck used in combination with a trailer is weighed at a weigh station and the combined weight is 25,000 pounds, but the registered gross vehicle weight of the truck (based on the truck's registration documents) is 19,500 pounds and the registered gross vehicle weight of the trailer (based on the trailer's registration documents) is 8,000 pounds, for a combined registered gross vehicle weight of 27,500 pounds, then that truck and trailer combination meets the definition of "commercial motor vehicle" subject to the IFTA licensing requirements. Failure to meet those requirements will result in imposition of the penalties in Section 13a.6 of the Law.
"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. (Section 1.26 of the Law)
"Diesel fuel" means any product intended for use or offered for sale as a fuel for engines in which the fuel is injected into the combustion chamber and ignited by pressure without electric spark. (Section 2(b) of the Law)
"Diesel gallon equivalent" or "DGE" means an amount of liquefied natural gas (LNG) or propane that has the equivalent energy content of a gallon of diesel fuel and is defined as 6.06 pounds of liquefied natural gas or 6.41 pounds of propane. (Section 1.8A of the Law)
"Distributor" means a person:
who:
produces, refines, blends, compounds or manufactures motor fuel in this State; or
transports motor fuel into this State; or
exports motor fuel out of this State; or
is engaged in this State 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 Section 5(A) of the Law. (Section 1.2 of the Law)
"Dyed diesel fuel" means special fuel, as defined in Section 1.13 of the Law, dyed in accordance with Section 4d of the Law. (Section 1.13B of the Law)
"Export" means the transportation of reportable motor fuel or fuel, by any vessel, from Illinois, when the motor fuel or fuel comes to rest in a different state, whether or not in the original vessel used to transport the motor fuel or fuel. Motor fuel or fuel delivered to a different state, by or on behalf of the seller, constitutes an export by the seller. Motor fuel or fuel delivered to a different state, by or on behalf of the purchaser, constitutes an export by the purchaser. The exporter of the motor fuel or fuel is subject to the reporting and licensing requirements of the origin and destination states.
"Fuel" means all liquids defined as "motor fuel" and aviation fuels and kerosene, but excluding liquified petroleum gases. (Section 1.19 of the Law)
"Gallon" means, in addition to its ordinary meaning, its equivalent in a capacity of measurement of substance in a gaseous state (Section 1.8 of the Law). For purposes of this Part, a gallon is equal to a liquid measurement of 4 quarts or 3.785 liters. On and after July 1, 2017, in the case of liquefied natural gas or propane used as a motor fuel, "gallon" means a diesel gallon equivalent as defined in Section 1.8A of the Law. In the case of compressed natural gas (CNG) used as motor fuel, "gallon" means a gasoline gallon equivalent as defined in Section 1.8B of the Law. (Section 1.8 of the Law)
"Gasoline gallon equivalent" or "GGE" means an amount of compressed natural gas that has the equivalent energy content of a gallon of gasoline and is defined as 5.660 pounds of compressed natural gas. (Section 1.8B of the Law)
"Import" means the transportation of reportable motor fuel or fuel, by any vessel, into Illinois, when the motor fuel or fuel comes to rest in Illinois, whether or not in the original vessel used to transport the motor fuel or fuel. Motor fuel or fuel delivered into Illinois, from a different state, by or on behalf of the seller, constitutes an import by the seller. Motor fuel or fuel delivered into Illinois, from a different state, by or on behalf of the purchaser, constitutes an import by the purchaser. The importer of the motor fuel or fuel is subject to the reporting and licensing requirements of the origin and destination states.
"International Fuel Tax Agreement" or "IFTA" means the multijurisdictional International Fuel Tax Agreement ratified by Congress, the provisions of which were imposed upon States pursuant to Public Law 102-240, which mandates that no State shall establish, maintain or enforce any law or regulation that has fuel use tax reporting requirements not in conformity with the International Fuel Tax Agreement.
"Jurisdiction" is a state of the United States, the District of Columbia, a state of the United Mexican States, or a province or Territory of Canada.
"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). (Section 1.25 of the Law)
"Law" means the Motor Fuel Tax Law [35 ILCS 505].
"Leasing" means the giving of possession and control of a vehicle for valuable consideration for a specified period of time.
"Liquefied natural gas" or "LNG" means methane or natural gas in the form of a cryogenic or refrigerated liquid for use as a motor fuel. (Section 1.13C of the Law)
"Loss" means, for purposes related to claims for refund, the reduction of motor fuel resulting from spillage, spoilage, leakage, theft, destruction by fire or any other provable cause, but does not include a reduction resulting from evaporation or shrinkage due to temperature variations.
"Motor fuel" means all volatile and inflammable liquids produced, blended or compounded for the purpose of, or which are suitable or practicable for, the propulsion of motor vehicles. Among other things, "motor fuel" includes "special fuel." (Section 1.1 of the Law) "Motor fuel" also includes all combustible gases that exist in a gaseous state at 60 degrees Fahrenheit and at 14.7 pounds per square inch absolute that are used in motor vehicles operating on the public highways and recreational type watercraft operating upon the waters of this State. (Section 5 of the Law) These gases include, but are not limited to, propane (liquefied petroleum gas (LPG)), CNG and LNG.
"Person" means any natural individual, firm, trust, estate, partnership, association, joint stock company, joint venture, corporation, limited liability company, or a receiver, trustee, guardian, or other representative appointed by order of any court, or any city, town, county or other political subdivision in this State. When used in these rules to prescribe or impose a fine or imprisonment or both, the term as applied to partnerships and associations shall mean the partners or members thereof; as applied to limited liability companies, the term means managers, members, agents or employees of the limited liability company; and as applied to corporations, the term shall mean the officers, agents, or employees thereof who are responsible for any violation of the Act. (Section 1.11 of the Law)
"Power take-off equipment" means any accessory that is mounted onto or designed as an integral part of a transmission of a motor vehicle that is registered for highway purposes whereby the accessory allows power to be transferred outside the transmission to a shaft or driveline and the power is used for a purpose other than propelling the motor vehicle. (Section 1.27 of the Law)
"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. (Section 1.24 of the Law)
"Receiver" means a person who either produces, refines, blends, compounds or manufactures fuel in this State, or transports fuel into this State or receives fuel transported to him or her from without the State or exports fuel out of this State, or who is engaged in the distribution of fuel primarily by tank car or tank truck, or both, and who operates an Illinois bulk plant where he or she has active fuel bulk storage capacity of not less than 30,000 gallons. (Section 1.20 of the Law)
"Records" means all data maintained by the taxpayer, including data on paper, microfilm, microfiche or any type of machine-sensible data compilation.
"Recreational vehicle" means vehicles, such as motor homes, pickup trucks with attached campers, camping or travel trailers, van or truck campers, mini motor homes, or buses, used exclusively for personal pleasure by an individual. In order to qualify as a recreational vehicle, the vehicle shall not be used in connection with any business endeavor.
"Research and development" means basic and applied research in the engineering, designing, development, or testing of prototypes or new products. "Research and development" does not include manufacturing quality control, any product testing by consumers, market research, sales promotion, sales service, or other non-technological activities or technical services. (Section 1.29 of the Law)
"Revocation" means the withdrawal of license and privileges.
"Semitrailer" means every vehicle without motive power, other than a pole trailer, designed for carrying persons or property and for being drawn by a motor vehicle and so constructed that some part of its weight and that of its load rests upon or is carried by another vehicle. (Section 1.28 of the Law)
"Special fuel" means all volatile and inflammable liquids capable of being used for the generation of power in an internal combustion engine except that it does not include gasoline as defined in Section 5(A) of the Law, or combustible gases as defined in Section 5(B) of the Law. "Special fuel" includes "diesel fuel." All special fuel sold or used for non-highway purposes must have a dye added in accordance with Section 4d of the Law. (Section 1.13 of the Law)
"Supplier" means any person other than a licensed distributor who (i) transports special fuel into this State; or (ii) exports special fuel out of this State; or (iii) 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 or she has active bulk storage capacity of not less than 30,000 gallons for special fuel as defined in Section 1.13 of the Law. (Section 1.14 of the Law)
"Terminal rack" means a mechanism for dispensing motor fuel or fuel from refinery, terminal, or bulk plant into a transport truck, railroad tank car, or other means of transportation. (Section 1.23 of the Law)
"Total distance" for purposes of the motor fuel use tax means all miles traveled during the reporting period by every commercial motor vehicle in the licensee's fleet, regardless of whether the miles are considered taxable or nontaxable by a jurisdiction.
"Weight", for purposes of the motor fuel use tax, means the greater of the actual weight of the loaded vehicle or combination of vehicles or the registered gross vehicle weight of the loaded vehicle or combination of vehicles, as registered with the Illinois Secretary of State or appropriate registration agency of another IFTA jurisdiction.
(Source: Amended at 44 Ill. Reg. 3282, effective February 10, 2020)
Section 500.101 Definition of Receiver (Repealed)
(Source: Repealed at 19 Ill. Reg. 3008, effective February 28, 1995)
Section 500.102 Definition of Loss (Repealed)
(Source: Repealed at 19 Ill. Reg. 3008, effective February 28, 1995)
Section 500.103 Basis and Rate of Tax Payable by Receivers (Recodified)
(Source: Recodified to Section 500.202 at 18 Ill. Reg. 4451)
Section 500.105 Monthly Returns (Recodified)
(Source: Recodified to Section 500.203 at 18 Ill. Reg. 4451)
Section 500.110 Report of Loss of Motor Fuel (Recodified)
(Source: Recodified to Section 500.204 at 18 Ill. Reg. 4451)
Section 500.115 Daily Gallonage Record (Recodified)
(Source: Recodified to Section 500.205 at 18 Ill. Reg. 4451)
Section 500.120 Licenses Are Not Transferable (Recodified)
(Source: Recodified to Section 500.500 at 18 Ill. Reg. 4451)
Section 500.125 Changes of Corporate Officers (Recodified)
(Source: Recodified to Section 500.505 at 18 Ill. Reg. 4451)
Section 500.130 Blenders' Permits Are Not Transferable (Recodified)
(Source: Recodified to Section 500.501 at 18 Ill. Reg. 4451)
Section 500.135 Vehicles of Distributors Transporting Petroleum Products (Recodified)
(Source: Recodified to Section 500.220 at 18 Ill. Reg. 4451)
Section 500.140 Other Vehicles (Recodified)
(Source: Recodified to Section 500.225 at 18 Ill. Reg. 4451)
Section 500.145 Cost of Collection – Determination (Recodified)
(Source: Recodified to Section 500.295 at 18 Ill. Reg. 4451)
Section 500.150 Cost of Collection – Books and Records (Repealed)
(Source: Repealed at 15 Ill. Reg. 6305, effective April 16, 1991)
Section 500.155 Motor Fuel Consumed by Distributors, Special Fuel Consumed by Suppliers and Fuel Consumed by Receivers (Recodified)
(Source: Recodified to Section 500.230 at 18 Ill. Reg. 4451)
Section 500.160 Claims for Refund – Original Invoices (Recodified)
(Source: Recodified to Section 500.235 at 18 Ill. Reg. 4451)
Section 500.165 Definition of Loss (Recodified)
(Source: Recodified to Section 500.102 at 18 Ill. Reg. 4451)
Section 500.170 Sales of Special Fuel – Variation in Usage (Recodified)
(Source: Recodified to Section 500.240 at 18 Ill. Reg. 4451)
Section 500.175 Special Motor Fuel Permits and Decals (Recodified)
(Source: Recodified to Section 500.301 at 18 Ill. Reg. 4451)
Section 500.180 Estimated Claims Not Acceptable (Recodified)
(Source: Recodified to Section 500.245 at 18 Ill. Reg. 4451)
Section 500.185 Claimants Owning Motor Vehicles (Recodified)
(Source: Recodified to Section 500.250 at 18 Ill. Reg. 4451)
Section 500.190 Detailed Answers (Recodified)
(Source: Recodified to Section 500.255 at 18 Ill. Reg. 4451)
Section 500.195 Revocation of License, Etc. – Notice – Hearing (Recodified)
(Source: Recodified to Section 500.260 at 18 Ill. Reg. 4451)
SUBPART B: MOTOR FUEL TAX
Section 500.200 Basis and Rate of the Motor Fuel Tax
a) The Motor Fuel Tax is imposed on the privilege of operating motor vehicles upon the public highways, including toll roads, and recreational-type watercraft upon the waters of this State. [35 ILCS 505/2]
1) Motor fuel used in such motor vehicles upon public highways and in such recreational watercraft on public waters is taxed according to the following rate schedule; provided that, beginning July 1, 2017, the tax on compressed natural gas is imposed in cents per gasoline gallon equivalent ("GGE"), rather than in cents per gallon, and the tax on liquefied natural gas and propane is imposed in cents per diesel gallon equivalent ("DGE"), rather than in cents per gallon. The tax imposed on all motor fuel under this subsection (a)(1) is as follows:
|
Tax Period |
Rate |
|
Until August 1, 1983 |
7½¢ per gallon |
|
From August 1, 1983 through June 30, 1984 |
11¢ per gallon |
|
From July 1, 1984 through June 30, 1985 |
12¢ per gallon |
|
From July 1, 1985 through June 30, 1989 |
13¢ per gallon |
|
From August 1, 1989 through December 31, 1989 |
16¢ per gallon |
|
From January 1, 1990 through June 30, 2019 |
19¢ per gallon |
|
From July 1, 2019 through June 30, 2020 |
38¢ per gallon |
|
From July 1, 2020 through June 30, 2021 |
38.7¢ per gallon |
|
From July 1, 2021 through December 31, 2022 |
39.2¢ per gallon |
On January 1, 2023, the rate of tax imposed in this subsection (a)(1) shall be increased by an amount equal to the percentage increase, if any, in the Consumer Price Index for the 12 months ending in September of 2022. On July 1, 2023, and on July 1 of each subsequent year thereafter, the rate of tax imposed under this subsection (a)(1) shall be increased by an amount equal to the percentage increase, if any, in the Consumer Price Index for the 12 months ending in March of the year in which the increase takes place. The percentage increase in the Consumer Price Index shall be calculated as follows: (1) calculate the average Consumer Price Index for the full 12 months ending in March of the year in which the increase takes place; (2) calculate the average Consumer Price Index for the full 12 months ending in March of the year immediately preceding the year in which the increase takes place; (3) calculate the percentage increase, if any, in the current-year average determined under item (1) over the preceding-year average determined under item (2). The rate shall be rounded up to the nearest one-tenth of one cent. [35 ILCS 505/2(a)]
2) Through June 30, 2019, the tax on the privilege of operating motor vehicles that use diesel fuel shall be the rate according to subsection (a)(1) plus an additional 2½ cents per gallon. [35 ILCS 505/2(b)] On or after July 1, 2017, the additional tax under this subsection (a)(2) applies to liquefied natural gas and propane and is imposed in cents per DGE. Beginning July 1, 2019, the tax on the privilege of operating motor vehicles that use diesel fuel, liquefied natural gas, or propane, shall be the rate according to subsection (a)(1) plus an additional 7½ cents per gallon. [35 ILCS 505/2(b)] This total combined rate is as follows:
|
Tax Period |
Rate |
|
Until August 1, 1983 |
7½¢ per gallon |
|
From August 1, 1983 through June 30, 1984 |
13½¢ per gallon |
|
From July 1, 1984 through June 30, 1985 |
14½¢ per gallon |
|
From July 1, 1985 through July 31, 1989 |
15½¢ per gallon |
|
From August 1, 1989 through December 31,1989 |
18½¢ per gallon |
|
From January 1, 1990 through June 30, 2019 |
21½¢ per gallon |
|
From July 1, 2019 through June 30, 2020 |
45½¢ per gallon |
|
From July 1, 2020 through June 30, 2021 |
46.2¢ per gallon |
|
From July 1, 2021 through December 31, 2022 |
46.7¢ per gallon |
On January 1, 2023, July 1, 2023, and on July 1 of each subsequent year thereafter, the total rate imposed under this subsection (a)(2) will be adjusted to reflect any increase under subsection (a)(1).
3) As used in this Section, "Consumer Price Index" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. [35 ILCS 505/2]
b) The Motor Fuel Use Tax is imposed upon the use of motor fuel upon highways, including toll ways, of this State by commercial motor vehicles. The tax shall be comprised of two parts:
1) A tax at the rate established in subsections (a)(1) and (a)(2); and
2) A rate shall be established by the Department as of January 1 of each year using the average "selling price", as defined in the Retailers' Occupation Tax Act, per gallon of motor fuel sold in this State during the previous 12 months and multiplying it by 6¼% to determine the cents per gallon rate. [35 ILCS 505/13a(2)]. The Department may use data derived from independent surveys conducted or accumulated by third parties to determine the average selling price per gallon of motor fuel. Third parties include, but are not limited to, commercial entities that collect data (available by contract or at no cost) regarding the selling price of motor fuel sold in this State on a per gallon basis.
c) Compressed Natural Gas ("CNG"). Compressed natural gas is subject to tax at the rate established in subsection (a)(1).
1) Calculation of Tax Through June 30, 2017. Because CNG cannot be measured in gallons, it must be converted to gallons using a conversion factor. For purposes of calculating tax under the Motor Fuel Tax Law, a gallon of CNG means a quantity of compressed natural gas equal to 126.67 cubic feet of natural gas at 60 degrees Fahrenheit and one atmosphere of pressure. In the alternative, it means a quantity of compressed natural gas that weighs 5.66 pounds.
2) Calculation of Tax on and after July 1, 2017. CNG is required to be sold in GGEs (Section 8 of the Weights and Measures Act; 225 ILCS 470). Tax is calculated at the rate established in subsection (a)(1) in cents per GGE. A GGE of compressed natural gas is defined as 5.660 pounds of compressed natural gas. [35 ILCS 505/1.8B]
d) Liquefied Natural Gas ("LNG") and Propane. Through June 30, 2017, tax on LNG and propane is calculated at only the rate established in subsection (a)(1) and is imposed at cents per liquid gallon. However, on and after July 1, 2017, LNG and propane are also subject to the additional tax under subsection (a)(2), calculated in cents per DGE. A DGE of liquefied natural gas or propane is defined as 6.06 pounds of liquefied natural gas or 6.41 pounds of propane. [35 ILCS 505/1.8A] On and after July 1, 2017, LNG and propane are subject to the following restrictions:
1) LNG and propane are required to be sold in DGEs; and
(Source: Amended at 49 Ill. Reg. 3261, effective February 26, 2025)
Section 500.201 Licensure
a) No person shall act as a distributor, supplier, or receiver in Illinois without first applying for and obtaining a license from the Department. The application shall be signed and verified by the applicant, and shall contain information required by the Department. Applications must be signed by, and contain the home address of, each officer, partner or owner of the entity seeking licensure. In the case of a corporate applicant, the application shall be signed by at least one corporate officer and shall contain the home address and Social Security Number of all corporate officers. In the case of a Limited Liability Company, the application shall be signed by at least one member or manager and shall contain the home address and Social Security Number of all managers and members. Applications may not be signed by reporting services or other persons responsible for reporting a licensee's tax obligations under a power of attorney, notwithstanding a properly executed power of attorney. The application shall also contain an acceptance of responsibility signed by the person or persons who will be responsible for filing returns and payment of taxes due under the law. No license shall be granted unless the application contains the name and home address of the person or persons who will be responsible for filing returns and payment of taxes due under the Law. An applicant 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.
b) A license shall not be granted, nor shall any license be maintained, for any supplier or distributor whose principal place of business is in a state other than Illinois, unless such person is licensed for motor fuel distribution or export in the state in which the principal place of business is located and such person is not in default to that state for any monies due for the sale, distribution, export or use of motor fuel. (Section 3, 3a, 3b and 3c of the Law) Applicants whose principal place of business is outside of Illinois and who are not required to be licensed by the state in which their principal place of business is located shall not be granted any license, nor shall any license be maintained, if they are in default to that state for any monies due for the use of motor fuel.
c) A license shall not be issued to any person who fails to file a return, or to pay the tax, penalty or interest for a filed return, or to pay any final assessment of tax, penalty or interest, as required by the Law, or as required by any other tax Act administered by the Department. [20 ILCS 2505/39b47]
(Source: Amended at 36 Ill. Reg. 6677, effective April 12, 2012)
Section 500.202 Basis and Rate of Tax Payable by Receivers
a) Except as hereinafter provided, on and after January 1, 1990 and before January 1, 2030, a tax of three-tenths of a cent per gallon is imposed upon the privilege of being a receiver in this State of fuel for sale or use.
b) The tax shall be paid by the receiver in this State who first sells or uses fuel. In the case of a sale, the tax shall be stated as a separate item on the invoice.
c) For the purpose of the tax imposed by this Section, being a receiver of "motor fuel" as defined by Section 1.1 of the Act, and aviation fuels, home heating oil and kerosene, but excluding liquified petroleum gases, is subject to tax without regard to whether the fuel is intended to be used for operation of motor vehicles on the public highways and waters. However, no such tax shall be imposed upon the importation or receipt of aviation fuels and kerosene at airports with over 170,000 operations per year, located in a city of more than 1,000,000 inhabitants for sale to or use by holders of certificates of public convenience and necessity or foreign air carrier permits, issued by the United States Department of Transportation, and their air carrier affiliates, or upon the importation or receipt of aviation fuels and kerosene at facilities owned or leased by those certificate or permit holders and used in their activities at an airport described above. In addition, no such tax shall be imposed upon the importation or receipt of diesel fuel or liquefied natural gas sold to or used by a rail carrier registered pursuant to Section 18c-7201 of the Illinois Vehicle Code [625 ILCS 5] or otherwise recognized by the Illinois Commerce Commission as a rail carrier, to the extent used directly in railroad operations. In addition, no such tax shall be imposed when the sale is made with delivery to a purchaser outside this State or when the sale is made to a person holding a valid license as a receiver. In addition, no tax shall be imposed upon diesel fuel or liquefied natural gas consumed or used in the operation of ships, barges, or vessels, that are used primarily in or for the transportation of property in interstate commerce for hire on rivers bordering on this State, if the diesel fuel or liquefied natural gas is delivered by a licensed receiver to the purchaser's barge, ship, or vessel while it is afloat upon that bordering river. A specific notation thereof shall be made on the invoices or sales slips covering each sale.
d) Beginning January 1, 2021, this tax is not imposed on sales of aviation fuel for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State. [35 ILCS 505/2a] "Aviation fuel" means jet fuel and aviation gasoline. [35 ILCS 505/2b]
(Source: Amended at 49 Ill. Reg. 3261, effective February 26, 2025)
Section 500.203 Monthly Returns
a) Distributor, supplier, and receiver monthly returns. Monthly Motor Fuel Tax returns of licensed distributors, suppliers, and receivers must be compiled correctly on forms furnished by the Department and must be filed, accompanied by a remittance for the correct amount of tax due, by the 20th day of the month following the month for which the return is made. Receipt schedules showing monthly receipts of motor fuel must always accompany the monthly return, as well as all other applicable schedules. On and after January 1, 2016, original returns and payment of tax shall be made electronically in accordance with rules established at 86 Ill. Adm. Code 750 and 760. Amended returns, however, are required to be filed electronically only for those periods, as provided in this subsection, for which original returns are electronically required. All other amended returns must be filed on a paper return.
1) Distributors of motor fuel shall file returns with the Department between the 1st and 20th of each calendar month, showing:
A) an itemized statement of the number of invoiced gallons of motor fuel of the types specified in Section 5 of the Motor Fuel Law which were:
i) purchased, acquired, or received during the preceding calendar month;
ii) produced, refined, compounded, manufactured, or blended during the preceding calendar month;
iii) sold, distributed, exported, or used by the licensed distributor during the preceding calendar month;
iv) lost or destroyed during the preceding calendar month; and
v) on hand at the close of business for the preceding calendar month; and
B) such other reasonable information as the Department may require. [35 ILCS 505/5]
2) Suppliers of special fuel shall file returns with the Department between the 1st and 20th of each calendar month, showing:
A) an itemized statement of the number of invoiced gallons of special fuel:
i) acquired, received, or purchased during the preceding calendar month;
ii) sold, distributed, exported, and used by the licensed supplier during the preceding calendar month;
iii) lost or destroyed during the preceding calendar month; and
iv) on hand at the close of business for the preceding calendar month; and
B) such other reasonable information as the Department may require. [35 ILCS 505/5a]
3) Receivers required to pay the tax imposed by Section 2a of the Motor Fuel Tax Law shall file returns with the Department between the 1st and 20th of each calendar month showing:
A) 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, and
B) such other reasonable information as the Department may require. [35 ILCS 505/2b]
b) If a distributor's only activities with respect to motor fuel are either production of alcohol in quantities of less than 10,000 proof gallons per year or blending alcohol in quantities of less than 10,000 proof gallons per year that the distributor has produced, the distributor 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 provided in subsection (a). [35 ILCS 505/5] Original returns and payment of tax made under this subsection (b) may be made electronically beginning January 1, 2016. Amended returns, however, may only be filed electronically for those periods, as provided in this subsection, for which original returns may be filed electronically. All other amended returns must be filed on a paper return.
c) Reporting and payment requirements for persons who produce biodiesel fuel or biodiesel blends for self-use.
1) Beginning July 1, 2007, notwithstanding any other reporting provisions of the Law, if a private biodiesel fuel producer's total gallonage that is taxable under Sections 2 and 2a of the Law and Section 310 of the Environmental Impact Fee Law is less than 5,000 gallons per year, then the producer must file returns and make payment of the tax imposed by Sections 2 and 2a of the Law and the fee imposed under Section 310 of the Environmental Impact Fee Law on an annual basis. The returns and payment of tax for a given year are due by January 20 of the following year. [35 ILCS 505/2d(a)] Original returns and payment of tax made under this subsection (c)(1) may be made electronically beginning January 1, 2016. Amended returns, however, may only be filed electronically for those periods, as provided in this subsection (c)(1), for which original returns may be filed electronically. All other amended returns must be filed on a paper return.
2) If a private biodiesel fuel producer's total gallonage that is taxable under Sections 2 and 2a of the Law and Section 310 of the Environmental Impact Fee Law is 5,000 or more gallons per year, then the producer must file returns and make payment of the tax imposed by Sections 2 and 2a of the Law and Section 310 of the Environmental Impact Fee Law on a monthly basis. The returns and payment of tax are due between the 1st and 20th days of each calendar month for the preceding calendar month. [35 ILCS 505/2d(b)] Original returns and payment of tax made under this subsection (c)(2) shall be made electronically beginning January 1, 2016. Amended returns, however, are required to be filed electronically for only those periods, as provided in this subsection (c)(2), for which original returns are electronically required. All other amended returns must be filed on a paper return. However, upon petition by a taxpayer, the Department may waive the electronic filing and payment requirement if the taxpayer demonstrates that it does not have the ability to file electronically.
3) Except for persons required to be licensed under Section 13a.4 of the Law, a person who is subject to the provisions of this subsection (c) is exempt from all bonding and licensure requirements otherwise imposed under the Law. Each person who is subject to the provisions of this Section must keep records as required by Section 12 of the Law. [35 ILCS 505/2d(c)]
4) For purposes of this subsection (c):
"Biodiesel blend" has the meaning set forth under Section 3-42 of the Use Tax Act [35 ILCS 105/3-42].
"Biodiesel fuel" has the meaning set forth under Section 3-41 of the Use Tax Act [35 ILCS 105/3-41].
"Biomass materials" has the meaning set forth under Section 3-43 of the Use Tax Act [35 ILCS 105/3-43].
"Private biodiesel fuel producer" means a person whose only activities with respect to motor fuel are:
the conversion of any biomass materials into biodiesel fuel that is produced exclusively for personal use and not for sale; or
the blending of biodiesel fuel, resulting in biodiesel blends that is produced exclusively for personal use and not for sale. [35 ILCS 505/2d(d)]
d) Support Data. On and after January 1, 2016, all support schedules for original returns and amended returns shall be filed electronically as required by Ill. Adm. Code, Title 86, Part 760.
e) When returns are timely filed in the manner required by this Section, a supplier, distributor, or receiver may take a discount of 1.75% of the tax collected as reimbursement for the expenses incurred in keeping records, preparing and filing returns, collecting and remitting the tax, and supplying data to the Department on request. This discount is not permitted for motor fuels that are used or consumed by a supplier or distributor in their own vehicles or for any other purpose. The discount, however, shall be applicable only to the amount of payment which accompanies a return that is filed timely in accordance with Sections 2b, 5, or 5a of the Law and the provisions of this Section. Returns that are required to be filed electronically pursuant to this Section but are not filed electronically shall be considered nonfiled and the discount shall be disallowed.
f) A person whose license to act as a supplier, distributor, or receiver of motor fuel has been revoked or cancelled shall make a return and payment 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. The return and payment of tax must be made electronically as provided in this Section. Tax on any inventory remaining at the close of the reporting period must be paid in full.
(Source: Amended at 49 Ill. Reg. 3261, effective February 26, 2025)
Section 500.204 Report of Loss of Motor Fuel
a) All licensed suppliers, distributors, and receivers are required to report all losses of motor fuel sustained by them 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 in order that the Department may make such investigation as it may deem necessary.
b) The mere making of such a report does not assure the allowance of the loss as a credit on account of tax liability with respect to the loss, but failure to report the losses promptly may result in the refusal of the Department to allow credit on account of tax liability with respect to a loss.
c) On and after July 1, 2001, for each 6-month period January through June, net losses of fuel (for each category of fuel that is required to be reported on a return) as the result of evaporation or shrinkage due to temperature variations may not exceed 1% of the total gallons in storage at the beginning of each January, plus the receipts of gallonage each January through June, minus the gallonage remaining in storage at the end of each June. On and after July 1, 2001, for each 6-month period July through December, net losses of fuel (for each category of fuel that is required to be reported on a return) as the result of evaporation or shrinkage due to temperature variations may not exceed 1% of the total gallons in storage at the beginning of each July, plus the receipts of gallonage each July through December, minus the gallonage remaining in storage at the end of each December. Any net loss reported that is in excess of this amount shall be subject to the tax imposed by Section 2 or 2a of the Law and the fee imposed by Section 310 of the Environmental Impact Fee Law. "Net loss" means the number of gallons gained through temperature variations minus the number of gallons lost through temperature variations or evaporation for each of the respective 6-month periods. (Sections 2b, 5, and 5a of the Law)
d) Distributors or suppliers reporting loss due to fire or theft must include fire department or police department reports with their returns.
(Source: Amended at 36 Ill. Reg. 6677, effective April 12, 2012)
Section 500.205 Daily Gallonage Record
Distributors, receivers, and suppliers are required to maintain an accurate, actual, daily record of gallonage in storage facilities. Detailed records of all gallonage delivered into storage facilities must be made available to authorized Department employees and must contain the following information:
a) date of delivery;
b) invoice number;
c) manifest/bill of lading number;
d) location of receipt;
e) seller's name and address;
f) fuel type; and
g) pipeline batch number, if delivered by pipeline.
Carelessness in not keeping such records is frequently the means of building false inventories. The burden is also upon the distributor, supplier, or receiver to see to it that the valves on bulk plants function properly. This will have a tendency to eliminate substantial losses under various climatic conditions.
(Source: Amended at 24 Ill. Reg. 6918, effective April 21, 2000)
Section 500.206 Special Fuel Sold or Used for Non-Highway Purposes
a) 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. (Section 4d of the Law)
b) A legible and conspicuous notice stating "Dyed Diesel Fuel, Non-taxable Use Only, Penalty For Taxable Use" must appear on all shipping papers (including delivery tickets or manifests and excluding material safety data sheets), bills of lading, and invoices accompanying any sale of dyed diesel fuel. (Section 4e of the Law)
c) 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. (Section 4f of the Law)
(Source: Added at 24 Ill. Reg. 6918, effective April 21, 2000)
Section 500.210 Documentation of Tax-free Sales of Motor Fuel Made by Licensed Distributors and Suppliers
a) A distributor or supplier may make tax free sales of motor fuel, with respect to which the distributor or supplier is otherwise required to collect tax, only as specified in subsections (b) through (i).
b) Sales of motor fuel delivered to points outside Illinois. The seller must retain the invoice date and number, name of carrier, bill of lading/manifest number, purchaser's name and address, Illinois origin, destination location, and invoiced gallons.
c) Sales of motor fuel to the federal government or its instrumentalities. The seller shall retain the invoice number and date, name of carrier, bill of lading/manifest number, name of purchaser, Illinois origin, Illinois destination, and invoiced gallons.
d) Sales of motor fuel to a municipal corporation owning and operating a local transportation system for public service in Illinois. The seller shall retain the invoice date and number, name of carrier, bill of lading/manifest number, name and address of purchaser, Illinois origin, Illinois destination and invoiced gallons. In addition, the seller shall include with the seller’s return a Certificate of Exemption, in the form required by Section 500.280 of this Part, for each sale.
e) Sales of motor fuel to a privately owned public utility owning and operating 2-axle vehicles designed and used for transporting more than 7 passengers, for the operation of vehicles that 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 any group of municipalities or in a close radius thereof, and the operations of which are subject to the regulations of the Illinois Commerce Commission. The seller shall retain the invoice date and number, name of carrier, bill of lading/manifest number, name and address of purchaser, Illinois origin, Illinois destination and invoiced gallons. In addition, the seller shall include with the seller’s return a Certificate of Exemption, in the form required by Section 500.285 of this Part, for each sale.
f) Sales of gasoline for aviation purposes. A Seller shall retain the invoice date and number, name of carrier, bill of lading/manifest number, name of purchaser, Illinois origin, Illinois destination, and invoiced gallons. The seller must also include a "Certificate of Gas Sold For Propulsion of Aircraft" with the seller’s return to document this type of exemption.
g) Sales to end users who are not licensed distributors or suppliers.
1) Sales of dyed fuel sold by licensed distributors or suppliers to end users of the fuel who are not licensed distributors or licensed suppliers may be made tax free for non-highway purposes only when:
A) The fuel is delivered from a vehicle designed for the specific purpose of such sales and delivered directly into a stationary bulk storage tank that displays the notice required by Section 4f of the Act;
B) The fuel is delivered from a vehicle designed for the specific purpose of such sales and delivered directly into the fuel supply tanks of non-highway vehicles that are not required to be registered for highway use; or
C) The fuel is dispensed from a dyed diesel fuel dispensing facility that has withdrawal facilities that are not readily accessible to and are not capable of dispensing dyed diesel fuel into the fuel supply tank of a motor vehicle.
2) For purposes of this subsection (g), a dyed diesel fuel dispensing facility is considered to have withdrawal facilities that are "not readily accessible to, and not capable of dispensing dyed diesel fuel into, the fuel supply tank of a motor vehicle" only when the dyed diesel fuel is delivered from:
A) A dispenser hose that is short enough that it will not reach the fuel supply tank of a motor vehicle; or
B) A dispenser that is enclosed by a fence or other physical barrier so that a vehicle cannot pull alongside the dispenser to permit fueling. (Section 6 of the Law)
3) For each sale of dyed diesel fuel described in this subsection (g), a specific notation of the nature of the exemption must be made on the invoice for these sales. The seller must retain the invoice number and date, name of carrier, bill of lading/manifest number, name and address of purchaser, Illinois origin, Illinois destination, and invoiced gallons sold (see 86 Ill. Adm. Code 130.815). A legible and conspicuous notice stating "Dyed Diesel Fuel, Non-taxable Use Only, Penalty For Taxable Use" must appear on all shipping papers (including delivery tickets or manifests and excluding material safety data sheets), bills of lading, and invoices accompanying any sale of dyed diesel fuel.
4) For purposes of this subsection (g), end users of dyed diesel fuel include off-road equipment rental companies when purchasing dyed diesel for their off-road rental equipment to be used exclusively for non-highway purposes, if the purchase otherwise meets the requirements of the exemption.
h) Sales of 1-K kerosene delivered into a storage tank 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 are taxable. For purposes of the exemption described in this subsection (h), a facility is considered to have withdrawal facilities that are not "readily accessible to and capable of dispensing 1-K kerosene into the fuel supply tanks of motor vehicles" only when the 1-K kerosene is delivered from:
1) a dispenser hose that is short enough that it will not reach the fuel supply tank of a motor vehicle; or
2) a dispenser that is enclosed by a fence or other physical barrier so that a vehicle cannot pull alongside the dispenser to permit fueling. (Section 2 of the Law)
i) Sales of motor fuel made to licensed distributors or suppliers. A specific notation of the nature of the exemption must be made on the invoice for these sales. Also, the seller must retain the invoice number and date, name of carrier, bill of lading/manifest number, name and address of purchaser, Illinois origin, Illinois destination, purchaser's license number, and invoiced gallons sold.
(Source: Amended at 47 Ill. Reg. 8887, effective June 6, 2023)
Section 500.215 Documentation of Tax-free Sales of Fuel Made by Licensed Receivers
a) Exemption for importation of aviation fuels and kerosene at qualified airports or by facilities owned or leased by qualified holders of Certificates of Public Convenience and Necessity or foreign air carrier permits (see Section 500.202 for a description of such persons). The seller shall make a specific notation on the invoice regarding the nature of the exemption. In addition, he shall retain the invoice date and number, name of carrier, bill of lading/manifest number, name of purchaser, Illinois origin, Illinois destination and invoiced gallons.
b) Exemption for importation of diesel fuel by qualified rail carriers (see Section 500.202 for a description of such persons). The seller shall make a specific notation on the invoice regarding the nature of the exemption. In addition, he shall retain the invoice date and number, name of carrier, bill of lading/manifest number, name of purchaser, Illinois origin, Illinois destination and invoiced gallons. A specific notation regarding the nature of the exemption shall be made on the invoice.
c) Receivers making sales of fuel which are delivered to points outside of Illinois. A specific notation regarding the nature of the exemption shall be made on the invoice. In addition, the seller shall retain the invoice date and number, name of carrier, bill of lading/manifest number, name of purchaser, Illinois origin, destination and invoiced gallons.
d) Sales of fuel made to other licensed receivers in Illinois. A specific notation shall be made on the invoice regarding the nature of the exemption. In addition, the seller shall retain the invoice date and number, name of carrier, bill of lading/manifest number, name of purchaser, Illinois origin, Illinois destination, purchaser's license number and invoiced gallons.
e) Receivers making sales of diesel fuel consumed or used in the operation of ships, barges, or vessels, that are used primarily in or for the transportation of property in interstate commerce for hire on rivers bordering on this State, if the diesel fuel is delivered by a licensed receiver to the purchaser's barge, ship, or vessel while it is afloat upon the bordering river (see Section 500.202 for a description of such receivers). A specific notation shall be made on the invoice regarding the nature of the exemption. In addition, the seller shall retain the invoice date and number, name of carrier, bill of lading/manifest number, name of purchaser, Illinois origin, destination and invoiced gallons.
(Source: Amended at 22 Ill. Reg. 2253, effective January 9, 1998)
Section 500.220 Vehicles of Distributors Transporting Petroleum Products (Repealed)
(Source: Repealed at 19 Ill. Reg. 3008, effective February 28, 1995)
Section 500.225 Other Vehicles (Repealed)
(Source: Repealed at 19 Ill. Reg. 3008, effective February 28, 1995)
Section 500.230 Motor Fuel Consumed by Distributors, Special Fuel Consumed by Suppliers and Fuel Consumed by Receivers
a) Distributors are required to pay the tax on all motor fuel (of the type they are required by the second paragraph of Section 5 of the Motor Fuel Tax Law to report to the Department when filing a return), except dyed diesel fuel used by distributors for non-highway purposes, used or consumed by them, whether for taxable or nontaxable purposes. If the motor fuel is consumed for statutory nontaxable purposes, a claim for credit or refund may thereafter be filed as provided by the Motor Fuel Tax Law and on the form prescribed by the Department for that purpose.
b) Suppliers are required to pay the tax on all special fuel, except dyed diesel fuel used by the suppliers for non-highway purposes, used or consumed by them, whether for taxable or nontaxable purposes. If the special fuel is consumed for statutory nontaxable purposes, a claim for credit or refund may thereafter be filed as provided by the Motor Fuel Tax Law and on the form prescribed by the Department for that purpose.
c) Receivers are required to pay tax on all fuel, as defined by Section 1.19 of the Motor Fuel Tax Law, used or consumed by them.
d) In addition to the daily gallonage requirements of Section 500.205, distributors, suppliers and receivers are required to keep detailed records of all motor fuel and fuel withdrawn from storage facilities for highway and nonhighway use by the distributor, supplier and receiver. This information must contain the following information:
1) Date of withdrawal.
2) Number of gallons by fuel type.
3) Description of vehicle or equipment into which the fuel or motor fuel was delivered.
4) Unit number, license plate number, or vehicle identification number (VIN) of the vehicle or equipment.
5) Detailed description of the purpose for which the fuel or motor fuel was used.
(Source: Amended at 36 Ill. Reg. 6677, effective April 12, 2012)
Section 500.235 Claims for Refund of Taxes and Motor Fuel Use Tax Decal Fees – Invoices
a) Claims for the refund of Motor Fuel Tax imposed by Section 2 of the Law, by persons other than a distributor or supplier, shall be made to the Department of Revenue, duly verified by the claimant, upon forms prescribed by the Department. On and after January 1, 2016, claims may be filed electronically in accordance with 86 Ill. Adm. Code 760. The Department of Revenue will not approve claims for refund of Motor Fuel Tax unless the claims can be directly supported by invoices, sales slips, statements of account, or monthly statements (herein referred to as "purchase documentation"). Reproductions may be submitted in lieu of originals, provided they are legible. However, the Department may require original purchase documentation to verify purchases. Purchase documentation may be electronically generated by the claimant's fuel supplier. Electronically generated purchase documentation shall meet all applicable electronic storage requirements of Sections 130.805 and 130.825 of the Retailers' Occupation Tax regulations (86 Ill. Adm. Code 130). Manifests will not be treated as purchase documentation.
b) All purchase documentation must contain the following information:
1) Date of delivery;
2) name and address of purchaser (which must be the name of the claimant);
3) name and address of seller;
4) number of gallons purchased and price per gallon;
5) Illinois Motor Fuel Tax as separate item if the purchase documentation is from other than a retail outlet;
6) receipt of payment. (Only paid purchase documentation is acceptable in connection with claims for refund.) Refunds will only be issued when payment of tax is exactly correlated to the purchase documentation for which the claim is being filed; and
7) persons making claims based upon the loss of motor fuel due to fire or theft must include fire department or police department reports with their claim. (Section 13 of the Law) Failure to include these reports will result in automatic denial of the claim.
c) Claimants must retain purchase documentation in conjunction with claims based upon motor fuel used for a nontaxable purpose. In making a claim, claimants must show total purchases, deducting the gallonage used upon public highways or waters, the difference being the net amount upon which the claim is based. Claimants must retain among their books and records documentation of all purchases, payments, bulk storage withdrawals and proof of usage for a period equivalent to that during which an assessment can be issued under the Law, from the date of issuance of the claim or refund. This information must be made available to Department employees upon request. Failure to keep or provide the records will result in denial of claims and recovery of any claims paid. In addition, the Department may recover any claims erroneously paid.
d) When the claimant has lost purchase documentation through inadvertence or an act of God, the Department will permit the claimant to submit an affidavit in lieu of purchase documentation in support of the claim, if the affidavit contains the same information that the purchase documentation was required to contain, plus a statement of facts explaining the loss of the purchase documentation and justifying the substitution of an affidavit for the purchase documentation.
e) Claims for reimbursement for taxes paid must be filed not later than 2 years after the date on which the tax was paid by the claimant.
f) Claims accompanied by purchase documentation that demonstrates evidence of change of name, date or gallonage or other evidence of fraud, or that is illegible, will be disallowed in their entirety.
g) 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 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 directly paid to another state and the amount of motor fuel used in that state. Evidence supporting the claim must include both a certified copy of the tax return filed with such other state by the claimant and a copy of either the cancelled check paying the tax due on such return, or a receipt acknowledging payment of the tax due on such tax return. The provisions of this subsection (g) shall not apply to taxes paid on returns under Section 13a.3 of the Law. (Section 13 of the Law)
h) Claims for refunds for the motor fuel tax imposed by Section 2 of the Law approved by the Department shall be paid within 90 days after receipt of a complete and correct application for such a refund. If refunds are paid after the expiration of the 90 day period, the Department shall also pay from the Motor Fuel Tax Fund to the taxpayer interest at the rate and in the manner set by the Uniform Penalty and Interest Act [35 ILCS 753]. (Section 15.1 of the Law) Refunds paid after the expiration of the 90 day period shall bear interest from the date that a properly completed claim for refund was filed with the Department.
i) The Department will approve claims for refund only when the claims are based upon a showing that the motor fuel was used for a nontaxable purpose, and that the part for which refund is claimed can, as a practical matter, be calculated and itemized. When the claims are estimated or calculated, they must be supported by verifiable documentation retained in the claimant's books and records. Only claims that can be supported by proof of the amount of motor fuel not used for a taxable purpose will be approved.
j) No claim based upon the use of undyed diesel fuel shall be allowed except for claims for the following:
1) Undyed diesel fuel used: in a manufacturing process, as defined in Section 2-45 of the Retailers' Occupation Tax Act, wherein the undyed diesel fuel becomes a component part of a product or byproduct, other than fuel or motor fuel, when the use of dyed diesel fuel in that manufacturing process results in a product that is unsuitable for its intended use; or for testing machinery and equipment in a manufacturing process, as defined in Section 2-45 of the Retailers' Occupation Tax Act, wherein the testing takes place on private property.
2) Undyed diesel fuel used by a manufacturer on private property in the research and development, as defined in Section 1.29 of the Law, of machinery or equipment intended for manufacture.
3) Undyed diesel fuel used by a single unit self-propelled agricultural fertilizer implement, designed for on and off road use, equipped with flotation tires and specially adapted for the application of plant food materials or agricultural chemicals.
4) Undyed diesel fuel used by a commercial motor vehicle, as defined in Section 500.100 of this Part, for any purpose other than operating the commercial motor vehicle upon the public highways. Claims shall be limited to commercial motor vehicles that are operated for both highway purposes and any purposes other than operating such vehicles upon the public highways and shall be limited to the nonhighway portion of the fuel used. For instance, the claims include, but are not limited to, commercial motor vehicles such as 3-axle dump trucks operated both on public highways and also on landfills in landfill operations. This subsection (j)(4) does not include claims filed for undyed diesel fuel used by power take-off equipment. This type of claim is described in subsection (j)(7).
5) Undyed diesel fuel used by a unit of local government in its operation of an airport if the undyed diesel fuel is used directly in airport operations on airport property.
6) Undyed diesel fuel used by refrigeration units that are permanently mounted to a semitrailer, as defined in Section 1.28 of the Law, wherein the refrigeration units have a fuel supply system dedicated solely for the operation of the refrigeration units.
7) Undyed diesel fuel used by power take-off equipment as defined in Section 1.27 of the Law. Claims shall be based upon actual consumption of undyed diesel fuel. The maximum amount of undyed diesel fuel that may be claimed for refund under this Section, however, is 25% of the fuel consumed, unless prior to submission of the claim the claimant submits a specific study conducted by the claimant and approved by the Department for claims in excess of this amount. Approved studies shall be valid for 2 years after the date of approval. However, upon petition of a taxpayer, the Department may approve an extension of a previously approved study for no more than 2 years. No study may be relied upon for a total of more than 4 years.
8) Claims for taxes paid on and after January 1, 2001 are not authorized for commercial vehicles unless the commercial vehicle falls within the definition of a "commercial motor vehicle", as provided in Section 500.100 of this Part and the claim is eligible for refund under subsection (j)(4), or the claim is eligible for refund under any of the other provisions of this subsection (j).
9) Beginning on August 22, 2005, undyed diesel fuel used by tugs and spotter equipment to shift vehicles or parcels on both private and airport property. Any claim under this subsection (j)(9) may be made only by a claimant that owns tugs and spotter equipment and operates that equipment on both private and airport property. The aggregate of all credits or refunds resulting from claims filed under this subsection (j)(9) by a claimant in any calendar year may not exceed $100,000. A claim may not be made under this subsection (j)(9) by the same claimant more often than once each quarter. For purposes of this subsection (j)(9), "tug" means a vehicle designed for use on airport property that shifts custom‑designed containers of parcels from loading docks to aircraft, and "spotter equipment" means a vehicle designed for use on both private and airport property that shifts trailers containing parcels between staging areas and loading docks. (Section 13 of the Law)
k) Effective July 1, 2001, any person who has paid the tax imposed by Section 2 of the Law upon undyed diesel fuel that is unintentionally mixed with dyed diesel fuel and who owns or controls the mixture of undyed diesel fuel and dyed diesel fuel may file a claim for refund to recover the amount paid. The amount of undyed diesel fuel unintentionally mixed must equal 500 gallons or more. Any claim for refund of unintentionally mixed undyed diesel fuel and dyed diesel fuel shall be supported by documentation showing the date and location of the unintentional mixing, the number of gallons involved, the disposition of the mixed diesel fuel, and any other information that the Department may reasonably require. Any unintentional mixture of undyed diesel fuel and dyed diesel fuel shall be sold or used only for nonhighway purposes. (Section 13 of the Law)
l) Any person who purchases motor fuel use tax decals as required by Section 13a.4 of the Law and pays an amount of fees for such decals that exceeds the amount due shall be reimbursed and repaid the amount of the decal fees that are deemed by the Department to be in excess of the amount due. Claims for reimbursement of decal fees are subject to the following procedures and restrictions:
1) Claims for reimbursement shall be made electronically and be duly verified by the claimant (or by the claimant's legal representative if the claimant has died or become a person under legal disability);
2) Claims shall state facts relating to the overpayment of decal fees;
3) Claims for reimbursement of overpayment of decal fees paid on or after January 1, 2011 must be filed not later than one year after the date on which the fees were paid by the claimant;
4) If it is determined that the Department should reimburse a claimant for overpayment of decal fees, the Department shall first apply the amount of such refund against any tax or penalty or interest due by the claimant under Section 13a of the Law. (Section 13 of the Law)
(Source: Amended at 39 Ill. Reg. 14728, effective October 23, 2015)
Section 500.240 Sales of Special Fuel – Variation in Usage (Repealed)
(Source: Repealed at 24 Ill. Reg. 17826, effective November 28, 2000)
Section 500.245 Estimated Claims
The Department will approve claims for refund of Motor Fuel Tax only when such claims are based upon a showing that such motor fuel was used for a nontaxable purpose, and that the part for which refund is claimed can, as a practical matter, be calculated and itemized. When such claims are estimated or calculated, they must be supported by verifiable documentation retained in the claimant's books and records. Only claims which can be supported by proof of the amount of motor fuel not used for a taxable purpose will be approved.
(Source: Amended at 22 Ill. Reg. 16322, effective August 25, 1998)
Section 500.250 Claimants Owning Motor Vehicles (Repealed)
(Source: Repealed at 19 Ill. Reg. 3008, effective February 28, 1995)
Section 500.255 Detailed Answers
All questions provided in the claim form must be answered in detail.
Section 500.260 Revocation of License, Etc. – Notice – Hearing
a) In all cases where the Department shall have given 5 days' written notice by certified mail under Section 16 of the Law that it proposes to revoke a license or cancel a permit, then, unless within 20 days after mailing of such notice to the licensee or permittee, such licensee or permittee shall protest and demand a hearing, the Department may proceed to revoke such license or cancel such permit.
b) If such protest and demand for a hearing are made, the Department shall conduct a hearing and pursuant thereto shall make its decision and notify the licensee or permittee thereof. If, within 35 days from the date the licensee or permittee receives notice of such decision, proceedings for review thereof are not instituted in the manner provided by the Administrative Review Law [735 ILCS 5/Art. III], such decisions shall thereupon become final.
(Source: Amended at 19 Ill. Reg. 3008, effective February 28, 1995)
Section 500.265 Distributors' and Suppliers' Claims for Credit or Refund
a) Filing of Claims. Any distributor or supplier who shall have paid Motor Fuel Tax upon motor fuel used by the 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. The claims shall be filed on forms prescribed by the Department. On and after January 1, 2016, claims are required to be filed electronically in accordance with 86 Ill. Adm. Code 760 only for periods for which an original return is required to be filed electronically. All other claims must be filed on paper forms. The claims shall be made to the Department, duly verified by the claimant (or by the claimant's legal representative if the claimant shall have died or become a person under legal disability). 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 shall state when the nontaxable use occurred and shall specify the purpose for which the motor fuel was used by the claimant, together with such other information as the Department may reasonably require. Claims for credit or refund for tax paid on motor fuel purchased on or after July 1, 1965, must be filed not later than one year after the date on which tax was paid by the claimant. In case the distributor or supplier requests and the Department determines that the claimant is entitled to a refund, the 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 the appropriation to elect to receive a cash refund, the Department shall provide for the payment of refunds in hardship cases as provided in 86 Ill. Adm. Code 130.1510.
b) The Department will approve claims for refund only when the claims are based upon a showing that the motor fuel was used for a nontaxable purpose, and that the part for which refund is claimed can, as a practical matter, be calculated and itemized. When the claims are estimated or calculated, they must be supported by verifiable documentation retained in the claimant's books and records. Only claims that can be supported by proof of the amount of motor fuel not used for a taxable purpose will be approved.
c) For claims based upon taxes paid on or after January 1, 2001, no claim based upon the use of undyed diesel fuel shall be allowed except for claims for the following:
1) Undyed diesel fuel used: in a manufacturing process, as defined in Section 2-45 of the Retailers' Occupation Tax Act, wherein the undyed diesel fuel becomes a component part of a product or byproduct, other than fuel or motor fuel, when the use of dyed diesel fuel in that manufacturing process results in a product that is unsuitable for its intended use; or for testing machinery and equipment in a manufacturing process, as defined in Section 2-45 of the Retailers' Occupation Tax Act, wherein the testing takes place on private property.
2) Undyed diesel fuel used by a manufacturer on private property in the research and development, as defined in Section 1.29 of the Law, of machinery or equipment intended for manufacture.
3) Undyed diesel fuel used by a single unit self-propelled agricultural fertilizer implement, designed for on and off road use, equipped with flotation tires and specially adapted for the application of plant food materials or agricultural chemicals.
4) Undyed diesel fuel used by a commercial motor vehicle for any purpose other than operating the commercial motor vehicle upon the public highways. Claims shall be limited to commercial motor vehicles that are operated for both highway purposes and any purposes other than operating such vehicles upon the public highways and shall be limited to the nonhighway portion of the fuel used. For instance, such claims include, but are not limited to, commercial motor vehicles such as 3-axle dump trucks operated both on public highways and on landfills in landfill operations. This subsection (c)(4) does not include claims filed for undyed diesel fuel used by power take-off equipment. This type of claim is described in subsection (c)(7).
5) Undyed diesel fuel used by a unit of local government in its operation of an airport if the undyed diesel fuel is used directly in airport operations on airport property.
6) Undyed diesel fuel used by refrigeration units that are permanently mounted to a semitrailer, as defined in Section 1.28 of the Law, wherein the refrigeration units have a fuel supply system dedicated solely for the operation of the refrigeration units. Claims may be made for 100% of the fuel consumed by the refrigeration units.
7) Undyed diesel fuel used by power take-off equipment as defined in Section 1.27 of the Law. (Section 13 of the Law) Claims shall be based upon actual consumption of undyed diesel fuel. The maximum amounts of undyed diesel fuel that may be claimed for refund under this Section, however, is 25% of the fuel consumed, unless prior to submission of the claim the claimant submits a specific study conducted by the claimant and approved by the Department for claims in excess of this amount. Approved studies shall be valid for 2 years after the date of approval. However, upon petition of a taxpayer, the Department may approve an extension of a previously approved study for no more than 2 years. No study may be relied upon for a total of more than 4 years.
8) Beginning on August 22, 2005, undyed diesel fuel used by tugs and spotter equipment to shift vehicles or parcels on both private and airport property. Any claim under this subsection (c)(8) may be made only by a claimant that owns tugs and spotter equipment and operates that equipment on both private and airport property. The aggregate of all credits or refunds resulting from claims filed under this subsection (c)(8) by a claimant in any calendar year may not exceed $100,000. A claim may not be made under this subsection (c)(8) by the same claimant more often than once each quarter. For purposes of this subsection (c)(8), "tug" means a vehicle designed for use on airport property that shifts custom-designed containers of parcels from loading docks to aircraft, and "spotter equipment" means a vehicle designed for use on both private and airport property that shifts trailers containing parcels between staging areas and loading docks. (Section 13 of the Law)
9) Claims for taxes paid on and after January 1, 2001 are not authorized for commercial vehicles unless the commercial vehicle falls within the definition of a "commercial motor vehicle" as provided in Section 500.100 of this Part and the claim is eligible for refund under subsection (c)(4), or the claim is eligible for refund under any of the other provisions of this subsection (c).
10) Claims for taxes paid on and after January 1, 2001 are not authorized for undyed diesel fuel used by unlicensed commercial vehicles operating exclusively on private property, unless the vehicles are eligible for refund under any of the provisions of this subsection (c).
d) Effective July 1, 2001, any person who has paid the tax imposed by Section 2 of the Law upon undyed diesel fuel that is unintentionally mixed with dyed diesel fuel and who owns or controls the mixture of undyed diesel fuel and dyed diesel fuel may file a claim for refund to recover the amount paid. The amount of undyed diesel fuel unintentionally mixed must equal 500 gallons or more. Any claim for refund of unintentionally mixed undyed diesel fuel and dyed diesel fuel shall be supported by documentation showing the date and location of the unintentional mixing, the number of gallons involved, the disposition of the mixed diesel fuel, and any other information that the Department may reasonably require. Any unintentional mixture of undyed diesel fuel and dyed diesel fuel shall be sold or used only for nonhighway purposes. (Section 13 of the Law)
e) Issuance of Credit Memoranda – Use Thereof to Satisfy Prior Rights of Department. The Department may make such investigation of the correctness of the facts stated in the claims for credit or refund as it deems necessary. When the Department approves a claim for credit or refund the Department shall issue a refund or credit memorandum to the distributor or supplier who made the payment for which the refund or credit is being given or, in the event that the distributors or suppliers shall have died or become incompetent, to the distributor's or supplier's legal representative, as such. The amount of the refund or credit memorandum shall first be credited against any tax due or to become due under the Law from the distributor or supplier who made the payment for which credit has been given. This means that if there is an established or admitted unpaid Motor Fuel Tax liability on the part of the claimant, the amount of the credit or refund will be credited against the tax that is due. If the credit or refund is in an amount less than that of the unpaid liability, the credit or refund shall be applied against the liability. If the amount of the credit or refund exceeds that of the unpaid liability, after crediting an amount sufficient to liquidate or cancel out the unpaid liability, the Department will issue a new credit memorandum or refund representing the difference between that of the original credit or refund found to be due and that of the liability liquidated or paid as aforesaid, and such new credit memorandum or refund will be delivered to the person entitled to receive the delivery, provided that no proceeding is pending against the claimant to establish an unpaid liability under the Law. If a proceeding to establish such an unpaid liability is pending, the credit memorandum or refund will be held by the Department until the proceeding is concluded; and if the proceeding results in a determination that Motor Fuel Tax is due from the claimant, the credit memorandum or refund will be applied by the Department, to the extent that may be necessary, in liquidation of the liability, and the balance of the credit memorandum or refund, if any (after cancellation of the credit memorandum or refund applied in liquidation of said liability), will be issued in the form of a new credit memorandum or refund and delivered to the person entitled to receive the delivery.
f) Disposition of Credit Memoranda by Holder Thereof
1) Assignment of Credit Memoranda. Credit memoranda may be assigned or transferred only after a request for that purpose is filed with the Department upon forms prescribed and furnished by it, and subject to the following conditions:
A) That the assignment is made to a person who is licensed as a distributor of motor fuel or a supplier of special fuel under the Law;
B) that there is no proceeding pending to establish an unpaid Motor Fuel Tax liability against the assignor; and
C) that there is no established or admitted unpaid Motor Fuel Tax liability against the assignor; provided, that if the amount of the credit memorandum must first be applied, in whole or in part, against an unpaid liability of the claimant-assignor, notice to this effect will be given the claimant-assignor by the Department. If any balance is due the claimant-assignor, after application of the credit memorandum in the manner and to the purposes aforesaid, the balance may be assigned upon receipt by the Department of instructions to that effect. If there is no unpaid liability and no proceedings pending to determine a liability as aforesaid, and if the assignee is a licensed distributor of motor fuel, the request for leave to assign will be approved. The original credit memorandum will be cancelled, and a new credit memorandum will be issued to the assignee in the amount shown on the cancelled memorandum. However, before a credit memorandum is issued to the assignee, the amount of the credit will be applied, to the extent that may be necessary, in liquidation of any unpaid Motor Fuel Tax liability of the assignee, and a credit memorandum for the balance, if any, will be issued to the assignee, provided that there is no proceeding pending against the assignee to establish an unpaid Motor Fuel Tax liability against him or her. If a proceeding to establish such an unpaid liability is pending, the credit memorandum will be held by the Department until the proceeding is concluded; and if the proceeding results in a determination that Motor Fuel Tax is due from the assignee, the credit will be applied by the Department, to the extent that may be necessary in liquidation of the liability, and the balance of the credit, if any (after cancellation of the credit memorandum applied in liquidation of said liability), will be issued in the form of a new credit memorandum and delivered to the person entitled to receive the delivery.
2) Submission of Credit Memoranda With Monthly Returns. Credit memoranda, in the hands either of the original claimant or of his or her assignee, may be submitted to the Department, along with monthly tax returns, in payment of Motor Fuel Tax due from the holder of the credit memoranda. If, after applying any such credit memorandum against the amount of tax shown to be due by the tax return with which the credit memorandum is submitted, the Department finds that there is a balance of the credit memorandum in favor of the distributor or supplier submitting the credit memorandum, the Department will cancel the credit memorandum that has been submitted and will issue and deliver to the distributor or supplier a new credit memorandum for the balance. This process will be followed until the credit, to which the distributor or supplier is entitled, is exhausted. However, any new credit memorandum, which is issued as provided in this subsection (f)(2) for a balance of credit due the distributor or supplier after applying the amount of a credit memorandum to the payment of current taxes, is subject to the prior rights of the Department to the same extent that such prior rights take precedence when a credit memorandum is first issued (see subsection (e) of this Section) or when leave to assign a credit memorandum is requested (see subsection (f)(1) of this Section).
g) Refunds to Distributors and Suppliers. If any distributor or supplier ceases to be licensed as a distributor or supplier while still holding an unused credit memorandum, the distributor or supplier may, at his or her election (instead of assigning the credit memorandum to another licensed distributor or supplier under the Law), surrender the unused credit memorandum to the Department and receive a refund in lieu of the credit.
h) Claims filed under this Section for overpayment of the Motor Fuel Tax imposed by Section 2 of the Law shall bear interest at the rate and in the manner specified in the Uniform Penalty and Interest Act. Claims made under this Section that are based upon motor fuel used for any purpose other than operating a motor vehicle upon the public highways or waters shall be paid within 90 days after receipt of a complete and correct application for credit. If credits based upon motor fuel used for any purpose other than operating a motor vehicle upon the public highways or waters are issued after expiration of the 90 day period, the Department shall include interest at the rate and in the manner set by the Uniform Penalty and Interest Act [35 ILCS 735]. (Section 13 of the Law) Refunds paid after the expiration of the 90 day period shall bear interest from the date that a properly completed claim for refund was filed with the Department.
(Source: Amended at 39 Ill. Reg. 14728, effective October 23, 2015)
Section 500.270 Receivers' Claims for Credit
Any receiver who has paid the tax imposed by Section 2a of the Motor Fuel Tax Law (either directly to the Department or to another licensed receiver) upon fuel exported or sold under the exemptions provided in Section 2a may file a claim for credit to recover the amount so paid. 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, production, export, or sale of the fuel by the claimant as the Department may deem necessary together with such other information as the Department may reasonably require. 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 credit memorandum to the receiver who made the payment for which the credit is being given or, if the receiver has died or become incompetent, to such receiver's legal representative. The amount of such credit memorandum shall be credited against any tax due or to become due under this Act from the receiver who made the payment for which credit has been given. (Section 13a.8 of the Law) Claims filed under this Section for overpayment of the tax imposed by Section 2a of the Law approved by the Department shall bear interest at the rate and in the manner set by the Uniform Penalty and Interest Act. On and after January 1, 2016, claims are required to be filed electronically in accordance with 86 Ill. Adm. Code 760 only for periods for which an original return is required to be filed electronically. All other claims must be filed on paper forms.
(Source: Amended at 39 Ill. Reg. 14728, effective October 23, 2015)
Section 500.275 Procedure When Tax-Paid Motor Fuel is Returned to Licensee for Credit
a) In any case in which a customer returns the entire amount of tax-paid motor fuel covered by an invoice to the licensee, the licensee's agent or driver is to secure the original invoice which was issued to such customer at the time when such motor fuel was sold by the licensee to such customer. This invoice may be returned to the licensee upon request. The licensee, in compiling his monthly Motor Fuel Tax reports, is to detail all such returned motor fuel, reporting such transactions in the same manner as purchases of tax-paid motor fuel are reported, indicating the name and address of each person to whom credit was given, the number of gallons for which such credit was given, the invoice number and the date of the transaction. Credit can then be claimed on his return, subject to Department approval. The original invoice must be attached to the licensee's return.
b) If only a portion of the original purchase is returned, the licensee is to make a notation on the face of the invoice, plainly indicating the number of gallons returned, the date when such motor fuel is returned and other pertinent information. After such notations are made on the invoice, the licensee is to return the invoice to the customer, who may use it to support a claim for refund of tax paid on that portion of the motor fuel which was originally included in the invoice, but returned by the customer. The licensee, in compiling his monthly Motor Fuel Tax reports, is to detail all such returned motor fuel, reporting such transactions in the same manner as purchases of tax-paid motor fuel are reported, indicating the name and address of each person to whom credit was given, the number of gallons for which such credit was given, the copy of the invoice with all notations and the date of the transaction. Credit can then be claimed on his return, subject to Department approval.
(Source: Amended at 19 Ill. Reg. 3008, effective February 28, 1995)
Section 500.280 Sales of Motor Fuel to Municipal Corporations Owning and Operating Local Transportation Systems
A distributor of motor fuel or a supplier of special fuel may make tax-free sales of the special fuel to a municipal corporation owning and operating a local transportation system for public service in the State for use in operating vehicles used for public transportation as part of the local transportation system, provided that the distributor or supplier obtains an official Certificate of Exemption in lieu of the tax. The Certificate of Exemption shall accompany the distributor's or supplier's monthly Motor Fuel Tax return to the Department to support his or her claim to exemption from the tax. The Certificate of Exemption shall be in substantially the following form:
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and said motor fuel is for use in operating vehicles used for public transportation as part of the local transportation system. |
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(Source: Amended at 36 Ill. Reg. 6677, effective April 12, 2012)
Section 500.285 Sales of Motor Fuel to Certain Privately-Owned Public Utilities Owning and Operating Transportation Systems in Metropolitan Areas
a) A distributor of motor fuel or a supplier of special fuel may make tax-free sales of the special fuel to a privately-owned public utility that owns and operates 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, provided that the distributor or supplier obtains an official Certificate of Exemption in lieu of the tax. Motor fuel may be sold tax-free only for the purpose of operating the 2-axle vehicles as common carriers in general transportation of passengers entirely within the territorial limits of a single municipality, any group of contiguous municipalities, or a close radius of either.
b) The Certificate of Exemption shall accompany the distributor's or supplier's monthly Motor Fuel Tax return to the Department to support his or her claim to exemption from the tax.
c) The Certificate of Exemption shall be in substantially the following form:
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and operates 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, purchased ____ gallons of motor |
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fuel, Illinois Motor Fuel Tax exempt, from |
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for use in operating such local transportation system under the limitations specified hereinabove. |
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(Source: Amended at 36 Ill. Reg. 6677, effective April 12, 2012)
Section 500.290 When Purchaser's License Number With Department on Invoices Covering Sales of Special Fuel is Required (Repealed)
(Source: Repealed at 19 Ill. Reg. 3008, effective February 28, 1995)
Section 500.295 Cost of Collection – Determination (Repealed)
(Source: Repealed at 19 Ill. Reg. 3008, effective February 28, 1995)
Section 500.297 Protest Procedures for Certain Penalties
a) Any person aggrieved by any action of the Department under item 13, 14, 15, or 16 of Section 15 of the Motor Fuel Tax Law may protest the action by making a written request for a hearing within 60 days after the original action.
b) Hearings that have been timely requested will be scheduled by the Department. The Department will provide written notice of the date, time, and place of the hearing at least 20 days prior to the hearing date.
c) Hearings shall be conducted in accordance with the provisions of the Illinois Administrative Procedure Act [5 ILCS 100] and regulations promulgated thereunder found at 86 Ill. Adm. Code 200.101 through 200.225.
(Source: Added at 24 Ill. Reg. 6918, effective April 21, 2000)
Section 500.298 Civil Penalties for Dyed Diesel Fuel Violations
a) Definitions. For purposes of this Section, the following definitions apply:
"Inspection" means the periodic examination by duly authorized agents of the Department of places at which motor fuel is or may be produced or stored. Such places may include, but are not limited to, any terminal, any fuel storage facility that is not a terminal, any retail fuel facility, and 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. Inspection of multiple locations may be conducted as part of one inspection. When one inspection spans multiple sites, the inspection may occur over a period of up to 15 days.
"Occurrence" means each event that results in a violation. As noted in subsections (c) and (d), an occurrence may encompass a series of similar violations occurring during an inspection (e.g., multiple violations of notice requirements). However, a separate occurrence results each time a violation of subsection (b) is found. For purposes of the penalty imposed under subsection (e), a first occurrence results for any amount of sales or attempted sales made to a specific customer during the course of a single day. A second and subsequent occurrence results for each day subsequent to the first occurrence in which any amount of sales or attempted sales are made to that same customer.
"Operator" means the person who has physical control over a motor vehicle. For purposes of this Section, the driver of a vehicle is considered the operator of that vehicle irrespective of any ownership or lease agreements. When a motor vehicle is not under the control of a driver, the operator will be the person that has physical control over that vehicle. For instance, if a truck parked on company property is found to have dyed diesel fuel in its tanks, a penalty will be issued to the company. If, however, the company has leased that truck to a lessee and the lease remains in effect at the time an inspection occurs on the company property, the lessee will be the operator to whom a penalty is issued. In the latter case, the lessee is the party having physical control over the leased vehicle, until such time as the lease has terminated.
b) From January 1, 2000 through June 30, 2001, 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 a penalty of $2500 for the first occurrence and $5000 for the second occurrence and each occurrence thereafter. On and after July 1, 2001, when a motor vehicle required to be registered for highway purposes is found to have dyed diesel fuel within the ordinary fuel tanks attached to the motor vehicle, the operator shall pay a penalty of $2500 for the first occurrence and $5000 for the second occurrence and each occurrence thereafter. On and after August 2, 2001, if a recreational-type watercraft is found to have dyed diesel fuel within the ordinary fuel tanks attached to the watercraft, the operator shall pay a penalty of $2500 for the first occurrence and $5000 for the second occurrence and each occurrence thereafter. (Section 15 of the Law). The first occurrence penalty imposed by this subsection (b) on and after July 29, 2010 shall be $1,000. Each licensed motor vehicle or recreational-type watercraft found to have dyed diesel fuel in its tanks constitutes a separate occurrence.
EXAMPLE 1: A truck is inspected at a designated inspection site and dyed diesel fuel is found in the ordinary fuel tank of the truck (owned by the ABC Company). The truck driver tells Department agents that his or her boss, Mr. ABC, tells employees to fill ABC Company trucks with dyed diesel fuel. The truck driver tells the agents that there are other trucks located at the ABC Company with dyed diesel fuel in the ordinary fuel tanks attached to the trucks. Department agents then go to the ABC Company and conduct an inspection. Agents find 2 vehicles registered to the ABC Company with dyed diesel fuel in the ordinary fuel tanks of the vehicles.
In this example, there are 3 separate occurrences. The truck driver is assessed a first occurrence penalty for dyed diesel fuel found in the ordinary fuel tank attached to the truck. The driver is the operator who had physical control over the truck when dyed diesel fuel was found in the tanks. The ABC Company is assessed a first occurrence penalty for the first licensed motor vehicle inspected at the business found with dyed diesel fuel in the ordinary fuel tank attached to the motor vehicle. The company is also assessed a $5000 second occurrence penalty for the second licensed motor vehicle inspected at the business found with dyed diesel fuel in the ordinary tank attached to the motor vehicle. The ABC Company is the person who has physical control over the trucks at the time of inspection.
EXAMPLE 2: Truck driver #1 was previously issued a first occurrence penalty when he or she was found operating an ABC Company truck with dyed diesel in its tanks. Truck driver #1 returns this truck to the ABC Company. Several months later, agents inspect the ABC Company. The same truck previously driven by truck driver #1 is found to have dyed diesel fuel in its tanks. At a later inspection, truck driver #2 is found to be operating the same truck with dyed diesel in its tanks. In addition, truck driver #1 was found to be operating a truck with dyed diesel in its tanks. Six months after its first inspection, ABC Company acquires 5 new trucks. During the course of an inspection, all 5 of the new trucks are found to have dyed diesel in their tanks.
The ABC Company is issued a first occurrence penalty for the truck discovered during the agent's first inspection at ABC Company. The ABC Company is the person who has physical control over the truck at the time of inspection. . Truck driver #2 is issued a first occurrence penalty. Truck driver #2 is the person who has physical control over the truck at the time of inspection. Truck driver #1 is issued a $5000 second occurrence penalty because he or she has physical control over the truck at the time of inspection and it is the second time he or she has committed a violation of subsection (b) of this Section. Company ABC is issued a separate $5000 second occurrence penalty for each of the 5 new trucks because the company has physical control over each of these trucks, and each truck represents a second and subsequent violation of subsection (b) of this Section.
EXAMPLE 3: The owner of XYZ Company is driving a truck that is inspected and found to have dyed diesel fuel in the ordinary fuel tank attached to the truck. Several hours later, a second truck owned by XYZ Company and driven by an employee is inspected. It, too, is found to have dyed diesel fuel in the ordinary tank attached to the truck.
In this example, there are 2 separate occurrences. The owner of Company XYZ driving the truck is assessed a first occurrence penalty for dyed diesel fuel found in the ordinary fuel tank attached to the truck, and the employee of Company XYZ driving the second truck is assessed a first occurrence penalty for dyed diesel fuel found in the ordinary fuel tank attached to the truck. The owner and employee are each persons who have physical control over the trucks, and as such, are operators subject to first occurrence penalties.
EXAMPLE 4: Robert Andrew takes his family water skiing on Fox Lake. The boat is stopped for a routine inspection and dyed diesel fuel is found in the boat's fuel tanks.
Mr. Andrew is assessed a first occurrence penalty for dyed diesel fuel found in the ordinary fuel tank attached to the watercraft. Mr. Andrew's ski boat is a recreational-type watercraft required to use clear diesel fuel. Dyed diesel fuel may be placed in the tanks of commercial watercraft, however, without penalty. For example, tugboats or commercial fishing boats found to have dyed diesel fuel in their tanks will not be subject to the penalty imposed in this subsection (b).
c) 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 of the Motor Fuel Tax Law shall pay a penalty of $500 for the first occurrence and $1000 for the second occurrence and each occurrence thereafter. [35 ILCS 505/15] Section 4f requires that a legible and conspicuous notice stating "Dyed Diesel Fuel, Non-taxable Use Only" appear on all containers, storage tanks, or facilities used to store or distribute dyed diesel fuel. For purposes of this penalty, a series of similar violations occurring during the course of one inspection constitutes a single occurrence.
EXAMPLE 1: A licensed motor fuel distributor has 5 bulk storage tanks of dyed diesel fuel. During an inspection, agents find that none of the 5 tanks are marked with the required dyed diesel fuel notice.
In this example, the distributor is assessed a first occurrence penalty of $500 for all 5 storage tanks found without the required notice. This series of similar violations results in one first occurrence penalty.
EXAMPLE 2: In the course of an inspection of a licensed motor fuel distributor with multiple locations, a motor fuel distributor is found to have 5 unmarked tanks at the first location, 3 unmarked tanks at the second location, and one unmarked tank at the third location. For purposes of this penalty, the violations found at the first, second and third location are considered a single occurrence spanning multiple locations during one inspection. However, if a subsequent inspection revealed that his or her storage tanks did not contain the required notice, the distributor would be assessed a second occurrence penalty of $1000. These violations would be considered to have occurred during a separate inspection.
d) Any person who sells or transports dyed diesel fuel without the notice required by Section 4e shall pay a penalty of $500 for the first occurrence and $1000 for the second occurrence and each occurrence thereafter. (Section 15 of the Law) A legible and conspicuous notice stating "Dyed Diesel Fuel, Non-taxable Use Only, Penalty for Taxable Use" must appear on all bills of lading and invoices accompanying any sale of dyed diesel fuel. (Section 4e of the Law)
EXAMPLE 1: A licensed motor fuel distributor is inspected at one of its 3 locations. Three dyed diesel fuel sales invoices are found without the required dyed diesel fuel notice. During the course of a week-long inspection, agents examine invoices at the other 2 bulk plants of this distributor. At the second location, no violations are found, and at the third location, none of the diesel fuel sales invoices contain the required dyed diesel fuel notice.
In this example, the licensed motor fuel distributor is assessed a first occurrence penalty of $500 for all invoices found at the first and third locations without the required notice. The unmarked invoices found at these locations constitute a single occurrence spanning multiple locations during one inspection. However, if a subsequent inspection revealed that his or her invoices did not contain the required notice, the licensed motor fuel distributor would be assessed a second occurrence penalty of $1000.
e) Any licensed motor fuel distributor or licensed supplier who sells or attempts to sell dyed diesel fuel for highway use shall pay a penalty of $5000 for the first occurrence and a $10,000 penalty for the second occurrence and each occurrence thereafter. In addition, on and after August 2, 2001, any licensed motor fuel distributor or licensed supplier who sells or attempts to sell dyed diesel fuel for use by recreational-type watercraft on the waters of this State shall pay a penalty of $5000 for the first occurrence and a $10,000 penalty for the second occurrence and each occurrence thereafter. The penalties imposed under this subsection (e) on and after July 29, 2010 shall be $1000 for the first occurrence and $5000 for the second occurrence and each occurrence thereafter. (Section 15 of the Law)
f) Any person subject to the penalties described in this Section may protest the penalty by making a written request for a hearing within 60 days after notice of the penalty from the Department. If the hearing is not requested in writing within 60 days, the penalty assessment becomes final. (Section 15 of the Law)
g) The penalties imposed by subsections (b) and (e) of this Section will be imposed only when the special fuel contains the dye Solvent Red 164 in quantities greater than .1 part per million.
(Source: Amended at 36 Ill. Reg. 6677, effective April 12, 2012)
SUBPART C: MOTOR FUEL USE TAX
Section 500.300 Licensure – Temporary Waiver upon Determination of Disaster
a) Except as provided in Section 500.320 or as otherwise provided in subsection (f) of this Section, no motor carrier shall operate commercial motor vehicles, as defined in Section 500.100, in Illinois without first securing a motor fuel use tax license and decals issued by the Department under the IFTA program or by any member jurisdiction.
b) Illinois IFTA credentials may be obtained from the Department by Illinois based carriers who operate one or more commercial motor vehicles in at least one other IFTA-member jurisdiction. Illinois based carriers are those carriers whose operational control and records for their vehicles are maintained or can be made available in Illinois and whose commercial motor vehicles accrue miles in Illinois. Carriers who are based in a non-IFTA jurisdiction will not be issued IFTA credentials by the Department, unless issuance is granted for fleet consolidation purposes. An Illinois carrier registered under the IFTA must consolidate all vehicles in its fleet. Fleet consolidation must include commercial motor vehicles based in other IFTA jurisdictions and non-IFTA jurisdictions and may include motor vehicles that travel exclusively intrastate, regardless of jurisdiction.
c) Motor carriers operating commercial motor vehicles that are based in a jurisdiction that has not joined IFTA, and who wish to operate in Illinois, must obtain single trip permits before operating in Illinois.
d) Motor vehicles operated by the State of Illinois or the United States government, recreational vehicles and school buses (with school bus license plates) are not required to register as provided in subsection (a). However, if these carriers will travel in other jurisdictions, they may wish to obtain a motor fuel use tax license and decals under the provisions of the International Fuel Tax Agreement. This will allow the carrier, when in an IFTA jurisdiction that does not consider it exempt, to avoid receiving citations or being required to obtain the proper credentials (e.g., single trip permits). If the carrier is travelling in a non-IFTA jurisdiction and is not considered to be exempt from fuel tax reporting requirements, it must purchase single trip permits or otherwise obtain the proper motor fuel use tax credentials required by the laws of that particular jurisdiction.
e) In order to establish and maintain the concept of one license and administrative base jurisdiction for each licensee, the Department shall issue only one license to each person.
f) The Director of the Department of Revenue, or his or her designee, may, upon determining that a disaster exists in Illinois or in any other state, temporarily waive the licensing requirements of this Section for commercial motor vehicles that travel through Illinois for the purpose of assisting in disaster relief efforts. Temporary waiver of the licensing requirements imposed in this Section shall not exceed a period of 30 days from the date the Director temporarily waives the licensing requirements of this Section. For purposes of this Section, a disaster includes flood, tornado, hurricane, fire, earthquake, or any other disaster that causes or threatens loss of life or destruction or damage to property of such a magnitude as to endanger the public health, safety and welfare. The licensing requirements of this Section shall be temporarily waived only if the operator of the commercial motor vehicle can provide proof by manifest that the commercial motor vehicle is traveling through Illinois or returning to Illinois from a point outside Illinois for purposes of assisting in disaster relief efforts. (Section 13a.4 of the Law)
(Source: Amended at 36 Ill. Reg. 6677, effective April 12, 2012)
Section 500.301 Special Motor Fuel Permits and Decals (Repealed)
(Source: Repealed at 19 Ill. Reg. 3008, effective February 28, 1995)
Section 500.302 Motor Carrier's Quarterly Report (Repealed)
(Source: Repealed at 19 Ill. Reg. 3008, effective February 28, 1995)
Section 500.305 Licenses and Decals
a) Applications for motor fuel use tax licenses and decals shall be made under oath and on forms provided by the Department. On and after October 1, 2012, all applications shall be filed electronically. Information provided to the Department shall include:
1) a carrier's Federal Employer Identification Number (in the case of a sole proprietorship, the Social Security number of the owner), and the United States Department of Transportation (USDOT) numbers issued to the applicant;
2) owner, partnership or corporate name;
3) name, title and social security number of all officers, partners or owners;
4) legal business name (if different from subsection (a)(2));
5) physical location of the business;
6) mailing address of the business;
7) signature of the applicant. All applications must be signed by an officer, partner, or owner of the entity seeking licensure who has the control, supervision or responsibility of filing returns and making payment of the tax. Applications filed electronically must contain electronic signatures and meet all requirements and procedures outlined in the Department's regulation governing electronic signatures (see 86 Ill. Adm. Code 760.230);
8) type of fuel used by applicant;
9) number of decals required by the licensee;
10) decal fee. On and after October 1, 2012, decal fees must be paid electronically by ACH debit in accordance with regulations at 86 Ill. Adm. Code 750 (for claims for reimbursement of overpayment of decal fees, see Section 500.235);
11) for IFTA applicants, a statement of the existence of bulk storage facilities in any member jurisdictions;
12) a statement that the applicant agrees to comply with reporting, payment, recordkeeping, and license display requirements, and all applicable regulations. IFTA applicants must agree that the base jurisdiction may withhold any refunds due if the applicant is delinquent on payment of motor fuel use taxes due any member jurisdiction or taxes owed to the Department; and
13) Such other information as the Department deems necessary.
b) Bonds are not required for first-time applicants. However, bond may be required for just cause, as determined by the Department. Bonds may be required when a licensee fails to file timely reports, when he or she fails to remit the proper tax, when the Department has twice received a Non-Sufficient Funds Electronic Payment, or when an audit indicates problems severe enough that, in the Director's discretion, a bond is required to protect the interests of the Department. If a bond is required, it shall be equal to at least twice the estimated average quarterly tax liability. The average tax liability upon which the bond is based shall be determined by taking into consideration the amount of motor fuel expected to be used in all jurisdictions by the applicant. 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 used (Section 13a.4 of the Law).
c) Neither a license or decals shall be issued to any person who fails to file a return, or to pay the tax, penalty or interest for a filed return, or to pay any final assessment of tax, penalty or interest, as required by the Law, or as required by any other tax Act administered by the Department [20 ILCS 2505/39b47].
d) Upon receipt of a complete application for a license and decals, including payment for decals, any required reinstatement fees and provision of an approved bond, if applicable, the Department will issue each applicant one license. In addition to the license, a minimum of two decals per commercial motor vehicle will also be issued. A license and decals will only be sent to the licensee. A license and decals are valid for a period of one calendar year.
(Source: Amended at 39 Ill. Reg. 14728, effective October 23, 2015)
Section 500.310 Display of License and Decals
a) Motor fuel use tax licenses, or copies of the licenses, shall be carried in the cab of each commercial motor vehicle operating in Illinois. Failure to carry a copy of the license in the commercial motor vehicle may subject the operator to the purchase of a single trip permit and/or a citation.
b) The Department will not issue multiple licenses to an applicant. If the applicant requires multiple licenses, he or she may make legible copies of his or her license and carry them in his or her vehicles.
c) One decal must be placed on the exterior portion of each side of the cab of the commercial motor vehicle. In the case of transporters, manufacturers, dealers, or driveaway operations, the decals need not be permanently affixed, but may be temporarily displayed in a visible manner on both sides of the cab. Failure to display decals in the required manner may subject the vehicle operator to the purchase of a single trip permit and/or a citation.
d) Decals are not vehicle specific. Licensees may purchase additional decals at a cost of $3.75 per set throughout the license year. If decals are destroyed, lost or stolen, replacements may be obtained from the Department at a cost of $2 per set. Licensees shall provide the Department with the serial number of the decals being replaced under this subsection (d).
e) Decals are valid only for the vehicle of the person to whom they are issued. The transfer of decals between commercial motor vehicles or from one motor carrier to another is prohibited.
f) Provided that a renewal application for a license and decals has been submitted to the Department or to another base jurisdiction on or before December 31 of each year, all IFTA carriers shall be allowed a two-month grace period to display the current year IFTA license and decals. They may display a decal and license from the previous year issued by any member jurisdiction until March 1. IFTA carriers that have not submitted timely renewal applications are not eligible for the grace period and will be subject to all civil and criminal penalties applicable to persons operating in Illinois without a valid license and decals. Carriers from new member jurisdictions shall be allowed a two-month grace period from the date of the new member's IFTA program implementation to display the IFTA license and decals. However, to operate in Illinois, these carriers must either display a decal and license issued by Illinois for the previous year, a single trip permit, or the current year IFTA license issued by their base state.
(Source: Amended at 39 Ill. Reg. 14728, effective October 23, 2015)
Section 500.315 Renewal of Decals and Licenses
a) Motor fuel use tax licenses and decals expire December 31 and must be renewed annually. On and after October 1, 2012, all licenses and decals must be renewed electronically.
b) The Department may deny a renewal application if the applicant's decal or license is currently revoked or the applicant has failed to file a return or pay any outstanding motor fuel use tax liabilities or other liabilities owed to the Department, or has failed to comply with a request for bond.
c) On and after October 1, 2016, failure of a licensee to either cancel his or her license or submit a renewal application on or before December 31 will result in designation of the licensee's account as "suspended". Accounts that have not been renewed shall be designated as suspended. A licensee with a suspended license may renew his or her license, provided that he or she meets all other provisions of the Law. A person found operating on the roads with a license that carries a "suspended" designation shall be considered to be operating without proper credentials and is subject to all applicable civil and criminal penalties.
d) The Department shall provide renewal reminders as a courtesy to all currently registered licensees in good standing. The Department may provide this notice by posting a general renewal reminder on its internet website or by other electronic notification methods.
(Source: Amended at 39 Ill. Reg. 14728, effective October 23, 2015)
Section 500.320 Single Trip Permits
a) If a commercial motor vehicle does not have motor fuel use tax credentials under IFTA, a single trip permit to operate in Illinois must be obtained. A single trip permit may be obtained upon proper application from the Department or its agents.
b) A single trip permit authorizes operation of a commercial motor vehicle for a single trip into the State of Illinois, through the State of Illinois, or from a point on the border of this State to a point within and return to the border.
c) The fee for each single trip permit shall be $40 and the single trip permit is valid for a period of 96 hours. This fee is in lieu of the tax and all reports required by Section 13a.3 of the Law, as well as the registration, decal display and furnishing of bond required by Section 13a.4 of the Law. On and after January 1, 2013, prepurchased single trip permits shall be applied for and the permit fees shall be paid electronically by ACH debit in accordance with 86 Ill. Adm. Code 750.
d) The Director of the Department of Revenue, or his or her designee, may, upon determining that a disaster exists in Illinois or in any other state, temporarily waive the licensing requirements of this Section for commercial motor vehicles that travel through Illinois for the purpose of assisting in disaster relief efforts. Temporary waiver of the licensing requirements imposed in this Section shall not exceed a period of 30 days from the date the Director temporarily waives the licensing requirements of this Section. For purposes of this Section, a disaster includes flood, tornado, hurricane, fire, earthquake, or any other disaster that causes or threatens loss of life or destruction or damage to property of such a magnitude as to endanger the public health, safety and welfare. The licensing requirements of this Section shall be temporarily waived only if the operator of the commercial motor vehicle can provide proof by manifest that the commercial motor vehicle is traveling through Illinois or returning to Illinois from a point outside Illinois for purposes of assisting in disaster relief efforts. (Section 13a.4 of the Law)
(Source: Amended at 36 Ill. Reg. 6677, effective April 12, 2012)
Section 500.325 Licensure of Lessors and Lessees
a) A lessor regularly engaged in the business of leasing or renting motor vehicles without drivers for compensation to licensees or other lessees may be deemed to be the licensee, and the lessor may be issued a license if an application has been properly filed and approved by the base jurisdiction.
b) In the case of a carrier using independent contractors under long-term leases (more than 30 days), the lessor and lessee will be given the option of designating which party will report and pay fuel use tax. In the absence of a written agreement or contract, or if the document is silent regarding responsibility for reporting and paying fuel use tax, the lessee will be responsible for reporting and paying fuel use tax. If the lessee (carrier), through a written agreement or contract, assumes responsibility for reporting and paying fuel use taxes, the base jurisdiction for purposes of this Part shall be the base jurisdiction of the lessee, regardless of the jurisdiction in which the commercial motor vehicle is registered for vehicle registration purposes by the lessor.
c) For motor vehicle leases of 30 days or less, the lessor of the motor vehicles under lease will be liable for all requirements of the motor fuel use tax program.
d) In the case of a household goods carrier using independent contractors, agents, or service representatives, under intermittent leases, the party liable for motor fuel tax shall be:
1) The lessee (carrier) when the commercial motor vehicle is being operated under the lessee's jurisdictional operating authority. The base jurisdiction for purposes of this Part shall be the base jurisdiction of the lessee (carrier), regardless of the jurisdiction in which the commercial motor vehicle is registered for vehicle registration purposes by the lessor or lessee.
2) The lessor (independent contractor, agent, or service representative) when the qualified motor vehicle is being operated under the lessor's jurisdictional operating authority. The base jurisdiction for purposes of this Part shall be the base jurisdiction of the lessor, regardless of the jurisdiction in which the commercial motor vehicle is registered for vehicle registration purposes.
e) For licensees registered under the IFTA, leases shall be made available upon request of the Department or request of any member jurisdiction.
f) Any agreement between lessors and lessees does not prevent the Department from fulfilling its obligation to collect any tax due by proceeding against either party.
(Source: Amended at 36 Ill. Reg. 6677, effective April 12, 2012)
Section 500.330 Cancellation of License
a) The Department may, at the request of a licensee or on its own initiative, cancel a license if the licensee has complied with all applicable provisions of the IFTA agreement, including the satisfaction of all reporting requirements and tax liabilities. A licensee shall make a request for cancellation by making a notation on its electronic return and indicating its final date of operations.
b) Upon cancellation, the carrier must destroy its original license and all copies, and decals.
c) A final audit may be conducted by the Department, or by any IFTA jurisdiction, upon cancellation of the license. When a license is cancelled, a carrier must retain all records for a period of four years from the due date of the final quarterly tax return.
(Source: Amended at 36 Ill. Reg. 6677, effective April 12, 2012)
Section 500.335 Quarterly Payment and Reporting
a) Every person holding a valid unrevoked motor fuel use tax license issued by the Department under the provisions of the IFTA shall file a quarterly motor fuel use tax return, along with full payment of taxes, with the Department. Returns are due, even if no operations were conducted during the reporting period. The due date for the return and full payment of taxes is the last day of the month immediately following the close of the quarter for which the return is being filed. Returns and full payment of taxes are due on or before the following dates:
|
Reporting Quarter |
Due Date |
|
|
|
|
January - March |
April 30 |
|
April - June |
July 31 |
|
July - September |
October 31 |
|
October - December |
January 31 |
If the due date is a Saturday, Sunday, or legal holiday, the next business day is considered the due date. Each motor fuel use tax return should be mailed in a separate envelope. On and after January 1, 2013, returns and payment of tax, including amended returns, must be made electronically. Electronic returns shall be made in accordance with 86 Ill. Adm. Code 760. Electronic payments shall be made by ACH debit in accordance with 86 Ill. Adm. Code 750.
b) The taxable event is the consumption of motor fuel, as defined in Section 500.100 of this Part, used to operate commercial motor vehicles. For tax payment and reporting purposes, all motor fuels placed in supply tanks of commercial motor vehicles, and all miles travelled, are taxable. Carriers must utilize the procedures in Section 500.235 for refunds for off-road or non-highway use.
c) For IFTA licensees: The IFTA provides that member jurisdictions may determine what type of motor fuels and miles travelled are exempt from tax, and are therefore not reportable. Carriers should contact member jurisdictions to determine what types of fuel and miles travelled are exempt from taxation. For IFTA carriers, claims for refunds for fuel used for any purpose other than propelling a commercial motor vehicle upon public highways must be made directly to the respective jurisdiction.
d) The quarterly return shall include a statement of the total number of miles travelled, as well as total miles travelled in each jurisdiction and in Illinois during the previous calendar quarter; the total number of gallons and type of reportable motor fuel consumed on the highways of all jurisdictions, as well as in each jurisdiction and in Illinois, and the total number of gallons and types of tax paid fuel purchased within each jurisdiction during the previous calendar quarter; and the total (net) of tax due the base jurisdiction on behalf of all jurisdictions. Licensees shall report all required information, and may not include miles operated and gallons of fuel purchased that were unavailable during any prior quarters. If a licensee does not include all required information, and that information is subsequently available, he or she must file an amended return, which will include penalty and interest.
e) Fuel and distance must be reported in gallons and miles. The conversion rates are:
|
One liter |
= |
0.2642 gallons |
|
One gallon |
= |
3.785 liters |
|
One mile |
= |
1.6093 kilometers |
|
One kilometer |
= |
0.62137 mile |
|
On and after July 1, 2017, for LNG, one DGE |
= |
6.06 pounds of LNG |
|
On and after July 1, 2017, for propane, one DGE |
= |
6.41 pounds of propane |
|
On and after July 1, 2014, for CNG, one GGE
|
= |
5.660 pounds or 0.678 kilograms of compressed natural gas |
f) For carriers registered under the IFTA that consume CNG, LNG and LPG that is not sold in GGEs/DGEs, the fuels must be converted to GGEs/DGEs using the conversion factor in subsection (e).
g) In order for a licensee to obtain credit for tax-paid retail purchases, a receipt or invoice, a credit card receipt, or microfilm/microfiche of the receipt or invoice must be retained by the licensee showing evidence of the purchases and tax having been paid by the licensee directly to the applicable jurisdiction or at the pump. The receipt must contain the following information:
1) date of purchase;
2) seller's name and address;
3) number of gallons/GGE/DGE purchased;
4) fuel type;
5) price per gallon/GGEs/DGEs or total amount of sale;
6) unit numbers; and
7) purchaser's name (in the case of a lessee/lessor agreement, receipts will be accepted in either name, provided a legal connection can be made to reporting party).
h) In the case of withdrawals from licensee-owned, tax-paid bulk storage, credit may be obtained only if the following records are maintained:
1) date of withdrawal;
2) number of gallons/GGEs/DGEs;
3) fuel type;
4) unit number (upon application by a licensee, the Department may waive the requirement of unit numbers for fuel withdrawn from the licensee's own bulk storage and placed in its commercial motor vehicles. The licensee must show that adequate records are maintained to distinguish fuel placed in commercial vs. non-commercial motor vehicles for all member jurisdictions); and
5) purchase and inventory records to substantiate that tax was paid on all bulk purchases.
i) Carriers registered under the IFTA must pay all taxes due to all member jurisdictions with one payment made to the Department. On and after January 1, 2013, payment shall be made electronically by ACH debit in accordance with 86 Ill. Adm. Code 750.
j) Through December 31, 2012, returns shall be filed on forms provided by the Department. On and after January 1, 2013, returns shall be filed electronically in accordance with 86 Ill. Adm. Code 760.
k) If a licensee uses a reporting service for his or her motor fuel use taxes, the licensee must maintain a power of attorney in its books and records. Use of a power of attorney does not relieve the licensee of the legal obligations associated with the license. The licensee is responsible for the payment of taxes as well as all acts and omissions of the reporting service. Decals and licenses will always be delivered directly to the licensee.
l) Reports not filed or full payment of taxes not made by the due date shall be considered late and any taxes due considered delinquent. The licensee shall be assessed a penalty of $50 or 10 percent of the delinquent taxes, whichever is greater, for failure to file a report, for filing a late report, or for underpayment of taxes due. For reasonable cause shown, the Department may waive a penalty. For a fleet based in a U.S. jurisdiction, interest shall be set at an annual rate of 2 percentage points above the underpayment rate established under section 6621(a)(2) of the Internal Revenue Code, adjusted on an annual basis on January 1 of each year. Interest shall accrue at 1/12 of this annual rate per month until liability is paid. The Department shall publish the interest rate by January 1 of each year on its website. For IFTA licensees, the Department may waive interest for another jurisdiction only with that jurisdiction's approval.
(Source: Amended at 44 Ill. Reg. 3282, effective February 10, 2020)
Section 500.340 Credits and Refunds
a) A licensee shall receive full credit or refund for tax-paid fuel used outside the jurisdiction where the fuel was purchased. For IFTA licensees, a licensee may apply the overpayment generated in one jurisdiction to the taxes owed to another jurisdiction.
b) Credits shall be carried over to offset liabilities of the licensee in future reporting periods until the credit is fully offset or until eight calendar quarters shall have passed since the end of the calendar quarter in which the credit accrued, whichever occurs sooner. If the credit has not been used to offset liabilities in 8 calendar quarters, it shall be refunded to the licensee.
c) Credits and refunds will be made only when all tax liability, including audit assessments, has been paid to the Department or when all motor fuel use tax liabilities, including audit assessments, penalty and interest owed to other jurisdictions, has been satisfied.
d) Refunds will not be made for amounts under $1. Amounts less than $25 will be credited, and sums of $25 and over will be automatically refunded.
e) Refunds determined to be properly due shall be paid within 90 days after receipt of a request by the licensee. If not so paid, interest shall accrue at the rate of 1 percent per month or fraction thereof until the refund is paid.
f) No credit or refund shall be allowed or made based upon:
1) a return filed more than four years after the due date of such return, or the date the return is filed, whichever is later; or
2) overpayments for which records are no longer required to be kept. A request for a refund shall extend the records requirement date until the refund is made or denied.
g) While not required to be attached to the return, proof of tax-paid purchases, as specified in Section 500.335(g) or (h), must be retained by the licensee.
h) For carriers registered under the IFTA, credits or refunds for tax paid on tax-exempt fuels must be made directly with the participating jurisdiction.
(Source: Amended at 22 Ill. Reg. 2253, effective January 9, 1998)
Section 500.345 Records Requirements
a) Each licensee shall maintain records to substantiate information reported on the quarterly tax report. Records shall be preserved for a period of four years from the due date of the return or the date filed, whichever is later. Records may be kept on microfilm, microfiche, or other computerized or condensed record storage system. Such records, for IFTA licensees, shall be made available upon request of any member jurisdiction.
b) Non-compliance with any recordkeeping requirement may be cause for revocation of the license.
c) Failure to provide records demanded for the purpose of audit extends the statute of limitations until the records are provided. Successive failures to adequately respond to a demand for records relate back to the first demand.
d) Bulk storage fuel purchases and withdrawals and over-the-road purchases are to be accounted for separately.
e) Fuel records shall contain the following items:
1) the date of each receipt of fuel;
2) the name and address of the person from whom purchased or received;
3) the number of gallons received;
4) the type of fuel; and
5) the vehicle or equipment into which the fuel was placed.
f) All licensees shall, in addition, maintain detailed distance records which show operations on an individual-vehicle basis. Such records shall contain but not be limited to:
1) both taxable and non-taxable usage of fuel;
2) distance traveled for taxable and non-taxable use; and
3) distance recaps for each vehicle for each jurisdiction in which the vehicle operated.
The Individual Vehicle Mileage Record (IVMR) required by the International Registration Plan is an acceptable source document for recording vehicle distance information. Another acceptable source document is a trip report which includes the information in subsection (f)(1)-(3), as well as the date of trip (starting and ending), trip origin and destination (including city and state), routes of travel, beginning and ending odometer readings, vehicle unit number, vehicle fleet number and licensee's name.
g) On-Board Recording Devices. On-board recording devices may (at the option of the carrier) be used in lieu of or in addition to handwritten trip reports for fuel tax reporting. On-board recording devices may be used alone or in conjunction with an electronic computer system, or in conjunction with manual systems.
1) All recording devices used to generate trip reports or used in conjunction with manual systems must meet the requirements shown in subsections (g)(3) and (4) below. When the on-board recording device is used in conjunction with an electronic computer system and reports are prepared on the basis of data downloaded from the recording device, the overall system must meet the requirements of subsections (g)(4), (5) and (7).
2) Use of On-Board Recording Device Only. When the device is to be used alone, printed reports must be produced which replace the handwritten trip reports. The printed trip reports shall be retained for audit. Vehicle and fleet summaries which show miles and kilometers by jurisdiction must then be prepared manually.
3) Use of On-Board Recording Device in Conjunction with Electronic Computer System. When the computer system is designed to produce printed trip reports, vehicle and fleet summaries which show miles and kilometers by jurisdiction must also be prepared. When the printed trip reports will not be retained for audit, the system must have the capability of producing, upon request, the reports indicated in subsection (g)(7).
4) Minimum Device Requirements. Minimum device requirements include the following:
A) The carrier must obtain a certificate from the manufacturer certifying that the design of the on-board recording device has been sufficiently tested to meet the requirements of this provision.
B) The on-board recording device and associated support systems must be, to the maximum extent practicable, tamper proof and must not permit altering of the information collected. Editing of copies of the original information collected will be allowed, but all editing must be identified and both the edited and original data must be recorded and retained.
C) The on-board recording device shall warn the driver visually and/or audibly that the device has ceased to function.
D) The device must time and date stamp all data recorded.
E) The device must not allow data to be overwritten before the data has been extracted. The device shall warn the driver visually and/or audibly that the device's memory is full and can no longer record data.
F) The device must automatically update a life-to-date odometer when the vehicle is placed in motion or the operator must enter the current vehicle odometer reading when the on-board recording device is connected to the vehicle.
G) The device must provide a method for the driver to confirm that the entered data is correct (e.g., a visual display of the entered data that can be reviewed and edited by the driver before the data is finally stored).
5) Data collection. To obtain the information needed to verify fleet distance, to prepare the "Individual Vehicle Distance Record(s)" (IVDR), and for fuel tax purposes, the device must collect the following data on each trip:
A) date of trip (starting and ending);
B) trip origin and destination (location code is acceptable);
C) routes of travel;
D) beginning and ending odometer or hubodometer reading of the trip;
E) total trip distance;
F) distance by jurisdiction;
G) power unit number or vehicle identification number;
H) vehicle fleet number;
I) registrant's name;
J) driver ID or name;
K) intermediate trip stops;
L) date of purchase;
M) seller's name and address (vendor code acceptable);
N) number of gallons purchased;
O) fuel type (may be referenced from vehicle file);
P) price per gallon or total amount of sale (required only for purchases from vendors);
Q) unit numbers; and
R) purchaser's name (in the case of lessee/lessor agreement, receipts will be accepted in either name, provided a legal connection can be made to reporting party).
6) For purposes of bulk fuel tax, the device must collect, in addition to the items in subsection (g)(5)(A)-(R), the following data:
A) date of withdrawal;
B) number of gallons;
C) fuel type;
D) unit number; and
E) purchase and inventory records to substantiate that tax was paid on all bulk purchases.
7) Capability of System to Produce Reports. Generally speaking, the reports referred to in this subsection are not prepared by the on-board recording device. Instead, these reports are prepared using an electronic computer system which accepts data from the on-board recording device. The system must be able to produce the following reports:
A) For each trip, an Individual Vehicle Distance Record (IVDR) report that includes the information required in subsection (g)(5) (Note: this report may be more than one page);
B) A report that indicates when the on-board recording device was last calibrated and the calibration method used;
C) An exception report(s) that identifies all edited data, omissions of required data (see subsection (g)(5)), system failures, noncontinuous life-to-date odometer readings, travel to noncontiguous states, and trips where the location of the beginning trip is not the location of the previous trip;
D) A monthly, quarterly, and annual summary of vehicle trips by vehicle number showing miles or kilometers by jurisdiction;
E) Monthly, quarterly, and annual trip summaries by fleet showing the number of miles or kilometers by jurisdictions.
8) Carrier Responsibilities. All carriers must observe the following requirements:
A) It is the carrier's responsibility to recalibrate the on-board recording device when tire size changes, the vehicle drive-train is modified, or any modifications are made to the vehicle which affect the accuracy of the on-board recording device. The device must be maintained and recalibrated in accordance with the manufacturer's specifications. A record of recalibrations must be retained for the audit retention period.
B) It is the carrier's responsibility to assure its drivers are trained in the use of the computer system. Drivers shall be required to note any failure of the on-board recording device and to prepare manual trip reports of all subsequent trip information until the device is again operational.
C) It is the carrier's responsibility to maintain a second copy (back-up copy) of the electronic files either electronically or in paper form for the audit retention period.
D) It is the carrier's responsibility to assure the entire record-keeping system meets the requirements of the Department. It is suggested that the carrier contact the Department's audit division for verification of audit compliance prior to implementation.
(Source: Amended at 22 Ill. Reg. 14917, effective August 3, 1998)
Section 500.350 Revocation
a) The Department may revoke the motor fuel use tax license of a carrier registered under the IFTA program or that is required to be registered under the terms of the International Fuel Tax Agreement that violates any provision of the Law or any rules promulgated thereunder. (Section 16 of the Law) Causes for revocation include, but are not limited to, failure to file a quarterly tax return or to remit all taxes due, or improper use of decals.
b) The Department shall send the licensee a written notice of its decision to revoke a license. Unless the licensee timely protests the Department's determination as provided for in Section 500.355, the revocation is final.
c) A licensee whose license has been revoked may have that license reinstated if the condition which caused revocation is remedied. The carrier must pay a $100 reinstatement fee and file a new application for a license and decals. A carrier whose license has been revoked and then reinstated may be required to post a bond in accordance with Section 500.305.
(Source: Amended at 39 Ill. Reg. 14728, effective October 23, 2015)
Section 500.355 IFTA Protest Procedures
a) An IFTA licensee or applicant may protest license denials or revocations, or any action of the Department for which a notice of tax liability, notice of tentative denial of claim, or penalty assessment under Section 13a.6 of the Law has been issued. Department actions may be protested by submitting a written request for a hearing within 30 days after notification of the license denial or revocation, or notification of tax liability, denial of claim or penalty assessment. If the hearing is not requested within 30 days, the Department's action becomes final. Notices of additional tax due as provided in Section 4 of the Retailers' Occupation Tax Act [35 ILCS 120], or admitted liabilities, are not protestable. Abatement of penalties based upon reasonable cause shall be governed by Section 3-8 of the Uniform Penalty and Interest Act [35 ILCS 735/3-8].
b) In the case of an audit, if the licensee is in disagreement with the original audit finding of the Department, it may request any or every jurisdiction to audit the licensee's records. Each jurisdiction to which a request is made may elect to accept or deny the request. Each jurisdiction electing to audit the licensee's records will audit only for its own portion of the licensee's operations. The licensee shall make records available at the office of the jurisdiction or at a place designated by the jurisdiction or pay reasonable per diem and travel expenses associated with conducting an audit at the licensee's place of business.
c) Hearings that have been timely requested will be scheduled by the Department. The Department will provide written notice of the date, time, and place of the hearing at least 20 days prior to the hearing date.
d) Hearings shall be conducted in accordance with the provisions of the Illinois Administrative Procedure Act [5 ILCS 100] and regulations promulgated thereunder found at 86 Ill. Adm. Code 200.101 through 200.225.
e) The Department shall notify the licensee of the findings of fact and ruling on the hearing. If, within 35 days from the date the licensee receives notice of the decision, proceedings for review thereof are not instituted in the manner provided by the Administrative Review Law [735 ILCS 5/Art. III], the decision shall become final.
f) For IFTA licensees only, the Department shall participate in the hearing on behalf of all member jurisdictions.
(Source: Amended at 36 Ill. Reg. 6677, effective April 12, 2012)
Section 500.360 Audits
a) The purpose of an audit is to verify fuel and mileage data reported on the quarterly tax return. Any licensee may be selected for audit.
b) Prior to conducting an audit, the auditor will contact the licensee to arrange a date to commence the audit. At that time, the auditor will outline the time period to be audited and the records to be reviewed. A confirmation letter will be sent to confirm date and time. For just cause (e.g., to ensure the validity of the audit), the notification requirement may be waived. At the beginning of the audit, the auditor will determine background information, reporting methods and records that will be reviewed. As the audit progresses, the auditor and licensee will discuss the sample periods, sampling techniques, and any problem areas. A final conference will be held with the licensee to explain audit adjustments and future reporting practices. Any audit adjustment will be reflected on an amended return covering the period of the audit. Payment of the liability, if any, will be requested. If the licensee does not agree, an audit assessment will be issued.
c) Audit guidelines. Audits will be completed using the best information available. In the absence of adequate records, a standard of four miles per gallon will be used. Tax-paid fuel entries will be disallowed if tax-paid fuel documentation is unavailable. All reasonable attempts will be made to verify reported miles.
d) If a licensee fails to make records available upon proper request or if any licensee fails to maintain records from which the licensee's true liability may be determined, the Department may, 30 days after requesting in writing that the records be made available or receiving notification of the insufficient records, determine the licensee's tax liability. The determination shall be made from information previously furnished by the licensee, if available, as well as any other pertinent information which is available to the Department.
e) In the event that an IFTA licensee's records are not located in Illinois and the Department must send auditors to the place the records are kept, the Department may require the licensee to reimburse it for reasonable per diem and travel expenses of its auditors, as authorized by law.
f) IFTA Licensees - Additional Audit Requirements. The Department will audit its IFTA licensees on behalf of all member jurisdictions and shall submit audit reports to all other member jurisdictions. In addition, the following additional requirements shall apply to IFTA licensee audits:
1) A member jurisdiction may re-examine a base jurisdiction's audit findings if the member jurisdiction reviews the audit work papers and, within 45 days after receipt of the audit findings by the member jurisdiction, notifies the Department of any errors found during such review and of its intention to conduct the re-examination. Such re-examination by a member jurisdiction must be based exclusively on the audit sample period utilized by the Department in conducting its audit.
2) A member jurisdiction may reaudit a licensee if said member jurisdiction notifies the base jurisdiction and the licensee of reasonable cause for the re-audit.
3) The re-audit or re-examination by a member jurisdiction must be performed in cooperation with the base jurisdiction. An adjustment to original audit findings as a result of such re-audit or re-examination must be reconciled with the original audit findings issued by the Department. New audit findings shall be issued by the Department. A member jurisdiction conducting a re-audit or re-examination shall pay its own expenses.
(Source: Added at 19 Ill. Reg. 3008, effective February 28, 1995)
SUBPART D: TIMELY MAILING TREATED AS TIMELY FILING AND PAYING
Section 500.400 General Information
a) Any report, claim, tax return, statement or other document required or authorized to be filed with or any payment made to the Department of Revenue, which document or payment is transmitted through the United States mail, will be deemed to have been filed with and received by the Department on the date shown by the post office cancellation mark stamped upon the envelope or other appropriate wrapper containing it. If mailed but not received by the Department, or if received, but the cancellation mark is illegible, erroneous or omitted, the document or payment will be deemed to have been filed on the date it was mailed if the sender establishes by competent evidence that the document or payment was deposited, properly addressed, in the United States mail on or before the date on which it was required or authorized to be filed or was due. In the event of the Department's failure to receive a document or payment required or authorized by law to be filed, the document or payment will be deemed to have been received by the Department on time if the sender files with the Department a duplicate within 30 days after written notification is given to the sender by the Department of its failure to receive the document or payment, provided proof is furnished that the original of the document was deposited in the United States mail on or before the date due for filing.
b) If any report, claim, tax return, statement, remittance or other document is sent by United States registered mail, certified mail or certificate of mailing, a record authenticated by the United States Post Office of the registration, certification or certificate shall be considered competent evidence that the report, claim, tax return, statement, remittance or other document was mailed, and the date of registration, certification or certificate shall be deemed to be the postmarked date.
c) Reports, claims, tax returns, statements, remittances, applications or other documents delivered by non-electronic means other than the United States mail (e.g., paid courier or other delivery services) are considered to be filed on the date they are received by the Department.
d) The timeliness of reports, claims, tax returns, statements, remittances, applications or other documents required to be filed or paid by electronic means shall be determined in accordance with 86 Ill. Adm. Code 760.240.
(Source: Amended at 36 Ill. Reg. 6677, effective April 12, 2012)
Section 500.405 Due Date That Falls on Saturday, Sunday or a Holiday
If the due date for any return, report, payment, statement or other document required or authorized to be filed with the Department falls on Saturday, Sunday or a holiday as defined or fixed in any statute now or hereafter in force in this State, such due date shall be considered to be the next business day either for the purpose of submitting such return or other report or payment by U.S. Mail or for the purpose of submitting such return or other report by any means other than the U.S. Mail . For rules governing due dates of returns, reports, payments, statements or other documents required or authorized to be filed electronically, see 86 Ill. Adm. Code 760.240.
(Source: Amended at 39 Ill. Reg. 14728, effective October 23, 2015)
SUBPART E: GENERAL REQUIREMENTS APPLICABLE TO ALL LICENSES AND PERMITS ISSUED UNDER THE MOTOR FUEL TAX LAW
Section 500.500 Licenses and Permits Are Not Transferable
For purposes of this Section, the terms "licensee" and "license" include "permittee" and "permit." If any licensee, other than any licensee under the Motor Fuel Use Tax program, discontinues business, the license must be returned to the Department for cancellation. Licensees must apply for and secure a new license and to furnish a new bond under the following circumstances:
a) When there has been a change in the name of the company, even though the ownership remains the same;
b) when the business of an individual or a partnership is taken over and continued by a corporation;
c) when the licensee is a corporation and surrenders its charter, and the business is continued by an individual, a partnership or any other legal person;
d) when a licensee dies, and the business is continued by another person;
e) when a licensee becomes incompetent or bankrupt or otherwise subject to the jurisdiction of a court, and the business is continued by a conservator, trustee in bankruptcy or other person appointed by the court;
f) when an individually owned business is taken over and continued by a partnership;
g) when a business owned by a partnership is taken over and continued by an individual;
h) when a business which is owned by an individual or a partnership or a corporation is taken over and continued by a different individual, partnership or corporation; and
i) when any other situation arises in which a business that is owned by one type of legal person is taken over and continued by a different legal person.
(Source: Amended at 19 Ill. Reg. 3008, effective February 28, 1995)
Section 500.501 Blenders' Permits Are Not Transferable (Repealed)
(Source: Repealed at 19 Ill. Reg. 3008, effective February 28, 1995)
Section 500.505 Changes of Corporate Officers
All changes of corporate officers should be promptly reported to the Department.
(Source: Amended at 19 Ill. Reg. 3008, effective February 28, 1995)
SUBPART F: INCORPORATION BY REFERENCE OF RETAILERS' OCCUPATION TAX
Section 500.600 Incorporation of the Retailers' Occupation Tax Regulations by Reference
The following Sections of the Retailers' Occupation Tax Regulations are incorporated by reference and made a part hereof insofar as they can be applied without conflict to the provisions of the Motor Fuel Tax Law or any regulations promulgated thereunder: 86 Ill. Adm. Code 130.815 (except as applied to motor fuel use tax licensees), 130.901 (except as applied to motor fuel use tax licensees), 130.1510, 130.1601, and 130.1701. The references to "taxpayer" in 86 Ill. Adm. Code 130.1601 and 130.1701 shall apply to "licensees".
(Source: Amended at 22 Ill. Reg. 2253, effective January 9, 1998)