102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0120

 

Introduced 2/3/2021, by Sen. Patrick J. Joyce

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-11-2.3

    Amends the Illinois Municipal Code. Provides that all municipalities (currently, only municipalities in a county with a population of over 3,000,000 inhabitants) may impose a motor fuel tax. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 8-11-2.3 as follows:
 
6    (65 ILCS 5/8-11-2.3)
7    Sec. 8-11-2.3. Municipal Motor Fuel Tax Law.
8Notwithstanding any other provision of law, in addition to any
9other tax that may be imposed, a municipality in a county with
10a population of over 3,000,000 inhabitants may also impose, by
11ordinance, a tax upon all persons engaged in the municipality
12in the business of selling motor fuel, as defined in the Motor
13Fuel Tax Law, at retail for the operation of motor vehicles
14upon public highways or for the operation of recreational
15watercraft upon waterways. The tax may be imposed, in one cent
16increments, at a rate not to exceed $0.03 per gallon of motor
17fuel sold at retail within the municipality for the purpose of
18use or consumption and not for the purpose of resale. The tax
19may not be imposed under this Section on aviation fuel, as
20defined in Section 3 of the Retailers' Occupation Tax Act.
21    Persons subject to any tax imposed under the authority
22granted in this Section may reimburse themselves for their
23seller's tax liability hereunder by separately stating that

 

 

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1tax as an additional charge, which charge may be stated in
2combination, in a single amount, with State tax which sellers
3are required to collect under the Use Tax Act, pursuant to such
4bracket schedules as the Department may prescribe.
5    A tax imposed pursuant to this Section, and all civil
6penalties that may be assessed as an incident thereof, shall
7be administered, collected, and enforced by the Department of
8Revenue in the same manner as the tax imposed under the
9Retailers' Occupation Tax Act, as now or hereafter amended,
10insofar as may be practicable; except that in the event of a
11conflict with the provisions of this Section, this Section
12shall control. The Department of Revenue shall have full power
13to: administer and enforce this Section; collect all taxes and
14penalties due hereunder; dispose of taxes and penalties so
15collected in the manner hereinafter provided; and determine
16all rights to credit memoranda arising on account of the
17erroneous payment of tax or penalty hereunder.
18    Whenever the Department determines that a refund shall be
19made under this Section to a claimant instead of issuing a
20credit memorandum, the Department shall notify the State
21Comptroller, who shall cause the order to be drawn for the
22amount specified, and to the person named, in the notification
23from the Department. The refund shall be paid by the State
24Treasurer out of the Municipal Motor Fuel Tax Fund.
25    The Department shall immediately pay over to the State
26Treasurer, ex officio, as trustee, all taxes and penalties

 

 

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1collected under this Section. Those taxes and penalties shall
2be deposited into the Municipal Motor Fuel Tax Fund, a trust
3fund created in the State treasury. Moneys in the Municipal
4Motor Fuel Tax Fund shall be used to make payments to
5municipalities and for the payment of refunds under this
6Section.
7    On or before the 25th day of each calendar month, the
8Department shall prepare and certify to the State Comptroller
9the disbursement of stated sums of money to named
10municipalities for which taxpayers have paid taxes or
11penalties hereunder to the Department during the second
12preceding calendar month. The amount to be paid to each
13municipality shall be the amount (not including credit
14memoranda) collected under this Section from retailers within
15the municipality during the second preceding calendar month by
16the Department, plus an amount the Department determines is
17necessary to offset amounts that were erroneously paid to a
18different municipality, and not including an amount equal to
19the amount of refunds made during the second preceding
20calendar month by the Department on behalf of the
21municipality, and not including any amount that the Department
22determines is necessary to offset any amounts that were
23payable to a different municipality but were erroneously paid
24to the municipality, less 1.5% of the remainder, which the
25Department shall transfer into the Tax Compliance and
26Administration Fund. The Department, at the time of each

 

 

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1monthly disbursement, shall prepare and certify to the State
2Comptroller the amount to be transferred into the Tax
3Compliance and Administration Fund under this Section. Within
410 days after receipt by the Comptroller of the disbursement
5certification to the municipalities and the Tax Compliance and
6Administration Fund provided for in this Section to be given
7to the Comptroller by the Department, the Comptroller shall
8cause the orders to be drawn for the respective amounts in
9accordance with the directions contained in the certification.
10    Nothing in this Section shall be construed to authorize a
11municipality to impose a tax upon the privilege of engaging in
12any business which under the Constitution of the United States
13may not be made the subject of taxation by this State.
14    An ordinance or resolution imposing or discontinuing the
15tax under this Section or effecting a change in the rate
16thereof shall either: (i) be adopted and a certified copy
17thereof filed with the Department on or before the first day of
18April, whereupon the Department shall proceed to administer
19and enforce this Section as of the first day of July next
20following the adoption and filing; or (ii) be adopted and a
21certified copy thereof filed with the Department on or before
22the first day of October, whereupon the Department shall
23proceed to administer and enforce this Section as of the first
24day of January next following the adoption and filing.
25    An ordinance adopted in accordance with the provisions of
26this Section in effect before the effective date of this

 

 

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1amendatory Act of the 101st General Assembly shall be deemed
2to impose the tax in accordance with the provisions of this
3Section as amended by this amendatory Act of the 101st General
4Assembly and shall be administered by the Department of
5Revenue in accordance with the provisions of this Section as
6amended by this amendatory Act of the 101st General Assembly;
7provided that, on or before October 1, 2020, the municipality
8adopts and files a certified copy of a superseding ordinance
9that imposes the tax in accordance with the provisions of this
10Section as amended by this amendatory Act of the 101st General
11Assembly. If a superseding ordinance is not so adopted and
12filed, then the tax imposed in accordance with the provisions
13of this Section in effect before the effective date of this
14amendatory Act of the 101st General Assembly shall be
15discontinued on January 1, 2021.
16    This Section shall be known and may be cited as the
17Municipal Motor Fuel Tax Law.
18(Source: P.A. 101-32, eff. 6-28-19; 101-604, eff. 12-13-19.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.