Section 130.551  Prepayment of Retailers' Occupation Tax on Motor Fuel

a)         Any person engaged in the business of selling motor fuel at retail, as defined in the Motor Fuel Tax Law, and who is not a licensed distributor or supplier, as defined in Section 1.2 or 1.14, respectively, of  the Motor Fuel Tax Law [35 ILCS 505/1.2 and 1.14], shall prepay to their distributor, supplier, or other reseller of motor fuel a portion of the tax imposed by the Retailers' Occupation Tax Act (the Act) if the distributor, supplier, or other reseller of motor fuel is registered under Section 2a or Section 2c of the Act.  The prepayment requirement provided for in this Section does not apply to liquid propane gas.  [35 ILCS 120/2d]  Every distributor, supplier, or other reseller of motor fuel registered under the Motor Fuel Tax Law that collects the tax shall remit the retailers' occupation tax prepayment due from a person engaged in the business of selling any motor fuel to the Department in accordance with Section 2d(g) of the Act.

b)         Portion of Retailers' Occupation Tax to be Prepaid by Retailer

1)         Before July 1, 2000 and then beginning on January 1, 2001 through June 30, 2003, the Retailers' Occupation Tax paid to the distributor, supplier or other reseller of motor fuel shall be an amount equal to $0.04 per gallon of the motor fuel, except gasohol as defined in Section 2-10 of the Act which shall be an amount equal to $0.03 per gallon, purchased from such distributor, supplier or other reseller.

2)         Beginning on July 1, 2000 and through December 31, 2000, the Retailers' Occupation Tax paid to the distributor, supplier, or other reseller shall be an amount equal to $0.01 per gallon of the motor fuel, except gasohol as defined in Section 2-10 of the Act which shall be an amount equal to $0.01 per gallon, purchased from the distributor, supplier, or other reseller.

3)         Beginning on July 1, 2003 and through December 10, 2010, the Retailers' Occupation Tax paid to the distributor, supplier, or other reseller shall be an amount equal to $0.06 per gallon of the motor fuel, except for gasohol as defined in Section 2-10 of the Act which shall be an amount equal to $0.05 per gallon, purchased from the distributor, supplier, or other reseller.

4)         Beginning on January 1, 2011 and thereafter, the Retailers' Occupation Tax paid to the distributor, supplier, or other reseller shall be at the rate established by the Department under this paragraph.  The rate shall be established by the Department on January 1 and July 1 of each year using the average selling price, as defined in Section 1 of the Act, per gallon of motor fuel sold in the State during the previous 6 months and multiplying that amount by 6.25% to determine the cents per gallon rate.  In the case of biodiesel blends, as defined in Section 3-42 of the Use Tax Act, with no less than 1% and no more than 10% biodiesel, and in the case of gasohol, as defined in Section 3-40 of the Use Tax Act, the rate shall be 80% of the rate established by the Department under this paragraph for motor fuel.  The Department shall provide persons subject to Section 2d of the Act notice of the rate established under this subsection at least 20 days prior to each January 1 and July 1. Publication of the established rate on the Department's internet website shall constitute sufficient notice under Section 2d of the Act.  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 sold in the State.  [35 ILCS 120/2d(b)-(e)]

c)         The distributor, supplier or other reseller required to remit such retailers' occupation tax shall file returns and deliver statements of the tax paid in accordance with Sections 2e and 2f of the Act.

d)         The vendor's discount provided in Section 3 of the Retailers' Occupation Tax Act shall not apply to the amount of prepaid tax which is remitted to the Department as required by 35 ILCS 120/2d, 2e, and 2f.

(Source:  Amended at 47 Ill. Reg. 19349, effective December 12, 2023)