103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5852

 

Introduced , by Rep. Dan Caulkins

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 505/2  from Ch. 120, par. 418

    Amends the Motor Fuel Tax Law. Provides that, beginning on the effective date of the amendatory Act and continuing through June 30, 2026, the rate of tax shall be $0.454 per gallon, plus an additional $0.025 per gallon for diesel fuel, liquefied natural gas, or propane. Effective immediately.


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A BILL FOR

 

HB5852LRB103 40813 HLH 73694 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Motor Fuel Tax Law is amended by changing
5Section 2 as follows:
 
6    (35 ILCS 505/2)  (from Ch. 120, par. 418)
7    Sec. 2. A tax is imposed on the privilege of operating
8motor vehicles upon the public highways and recreational-type
9watercraft upon the waters of this State.
10    (a) Prior to August 1, 1989, the tax is imposed at the rate
11of 13 cents per gallon on all motor fuel used in motor vehicles
12operating on the public highways and recreational type
13watercraft operating upon the waters of this State. Beginning
14on August 1, 1989 and until January 1, 1990, the rate of the
15tax imposed in this paragraph shall be 16 cents per gallon.
16Beginning January 1, 1990 and until July 1, 2019, the rate of
17tax imposed in this paragraph, including the tax on compressed
18natural gas, shall be 19 cents per gallon. Beginning July 1,
192019 and until July 1, 2020, the rate of tax imposed in this
20paragraph shall be 38 cents per gallon. Beginning July 1, 2020
21and until July 1, 2021, the rate of tax imposed in this
22paragraph shall be 38.7 cents per gallon. Beginning July 1,
232021 and until January 1, 2023, the rate of tax imposed in this

 

 

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1paragraph shall be 39.2 cents per gallon. On January 1, 2023,
2the rate of tax imposed in this paragraph shall be increased by
3an amount equal to the percentage increase, if any, in the
4Consumer Price Index for All Urban Consumers for all items
5published by the United States Department of Labor for the 12
6months ending in September of 2022. On July 1, 2023, and on
7July 1 of each subsequent year, the rate of tax imposed in this
8paragraph shall be increased by an amount equal to the
9percentage increase, if any, in the Consumer Price Index for
10All Urban Consumers for all items published by the United
11States Department of Labor for the 12 months ending in March of
12the year in which the increase takes place. The rate shall be
13rounded to the nearest one-tenth of one cent.
14    (a-5) Beginning on July 1, 2022 and through December 31,
152022, each retailer of motor fuel shall cause the following
16notice to be posted in a prominently visible place on each
17retail dispensing device that is used to dispense motor fuel
18in the State of Illinois: "As of July 1, 2022, the State of
19Illinois has suspended the inflation adjustment to the motor
20fuel tax through December 31, 2022. The price on this pump
21should reflect the suspension of the tax increase." The notice
22shall be printed in bold print on a sign that is no smaller
23than 4 inches by 8 inches. The sign shall be clearly visible to
24customers. Any retailer who fails to post or maintain a
25required sign through December 31, 2022 is guilty of a petty
26offense for which the fine shall be $500 per day per each

 

 

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1retail premises where a violation occurs.
2    (a-10) Beginning on the effective date of this amendatory
3Act of the 103rd General Assembly and continuing through June
430, 2026, the tax rate imposed by subsection (a) shall be
5$0.454 per gallon. With respect to July 1 dates that fall
6between the effective date of this amendatory Act of the 103rd
7General Assembly and June 30, 2026, the Consumer Price Index
8adjustment mandated under paragraph (a) shall be suspended. On
9July 1, 2026, the Consumer Price Index adjustment mandated
10under paragraph (a) shall resume, but Consumer Price Index
11adjustments that would have taken place between the effective
12date of this amendatory Act of the 103rd General Assembly and
13June 30, 2026 shall not be included.
14    (b) Until July 1, 2019, and from the effective date of this
15amendatory Act of the 103rd General Assembly through June 30,
162026, the tax on the privilege of operating motor vehicles
17which use diesel fuel, liquefied natural gas, or propane shall
18be the rate according to paragraph (a) plus an additional 2 1/2
19cents per gallon. Beginning July 1, 2019, but not including
20the period from the effective date of this amendatory Act of
21the 103rd General Assembly through June 30, 2026, the tax on
22the privilege of operating motor vehicles which use diesel
23fuel, liquefied natural gas, or propane shall be the rate
24according to subsection (a) plus an additional 7.5 cents per
25gallon. "Diesel fuel" is defined as any product intended for
26use or offered for sale as a fuel for engines in which the fuel

 

 

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1is injected into the combustion chamber and ignited by
2pressure without electric spark.
3    (c) A tax is imposed upon the privilege of engaging in the
4business of selling motor fuel as a retailer or reseller on all
5motor fuel used in motor vehicles operating on the public
6highways and recreational type watercraft operating upon the
7waters of this State: (1) at the rate of 3 cents per gallon on
8motor fuel owned or possessed by such retailer or reseller at
912:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
10per gallon on motor fuel owned or possessed by such retailer or
11reseller at 12:01 A.M. on January 1, 1990.
12    Retailers and resellers who are subject to this additional
13tax shall be required to inventory such motor fuel and pay this
14additional tax in a manner prescribed by the Department of
15Revenue.
16    The tax imposed in this paragraph (c) shall be in addition
17to all other taxes imposed by the State of Illinois or any unit
18of local government in this State.
19    (d) Except as provided in Section 2a, the collection of a
20tax based on gallonage of gasoline used for the propulsion of
21any aircraft is prohibited on and after October 1, 1979, and
22the collection of a tax based on gallonage of special fuel used
23for the propulsion of any aircraft is prohibited on and after
24December 1, 2019.
25    (e) The collection of a tax, based on gallonage of all
26products commonly or commercially known or sold as 1-K

 

 

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1kerosene, regardless of its classification or uses, is
2prohibited (i) on and after July 1, 1992 until December 31,
31999, except when the 1-K kerosene is either: (1) delivered
4into bulk storage facilities of a bulk user, or (2) delivered
5directly into the fuel supply tanks of motor vehicles and (ii)
6on and after January 1, 2000. Beginning on January 1, 2000, the
7collection of a tax, based on gallonage of all products
8commonly or commercially known or sold as 1-K kerosene,
9regardless of its classification or uses, is prohibited except
10when the 1-K kerosene is delivered directly into a storage
11tank that is located at a facility that has withdrawal
12facilities that are readily accessible to and are capable of
13dispensing 1-K kerosene into the fuel supply tanks of motor
14vehicles. For purposes of this subsection (e), a facility is
15considered to have withdrawal facilities that are not "readily
16accessible to and capable of dispensing 1-K kerosene into the
17fuel supply tanks of motor vehicles" only if the 1-K kerosene
18is delivered from: (i) a dispenser hose that is short enough so
19that it will not reach the fuel supply tank of a motor vehicle
20or (ii) a dispenser that is enclosed by a fence or other
21physical barrier so that a vehicle cannot pull alongside the
22dispenser to permit fueling.
23    Any person who sells or uses 1-K kerosene for use in motor
24vehicles upon which the tax imposed by this Law has not been
25paid shall be liable for any tax due on the sales or use of 1-K
26kerosene.

 

 

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1(Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19;
2101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.