Sen. Celina Villanueva

Filed: 11/30/2022





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2    AMENDMENT NO. ______. Amend House Bill 5189, AS AMENDED,
3with reference to page and line numbers of Senate Amendment
4No. 1, on page 116, immediately above line 13 by inserting the
6    "Section 20. The Illinois Municipal Code is amended by
7changing Section 8-11-2.3 as follows:
8    (65 ILCS 5/8-11-2.3)
9    Sec. 8-11-2.3. Municipal Motor Fuel Tax Law.
10Notwithstanding any other provision of law, in addition to any
11other tax that may be imposed, a municipality in a county with
12a population of over 3,000,000 inhabitants may also impose, by
13ordinance, a tax upon all persons engaged in the municipality
14in the business of selling motor fuel, as defined in the Motor
15Fuel Tax Law, at retail for the operation of motor vehicles
16upon public highways or for the operation of recreational



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1watercraft upon waterways. The tax may be imposed, in one cent
2increments, at a rate not to exceed $0.03 per gallon of motor
3fuel sold at retail within the municipality for the purpose of
4use or consumption and not for the purpose of resale. The tax
5may not be imposed under this Section on aviation fuel, as
6defined in Section 3 of the Retailers' Occupation Tax Act.
7    For purposes of this Section, a municipality is "in a
8county with a population of over 3,000,000 inhabitants" if any
9portion of the territory of the municipality is located in
10such a county. Notwithstanding any provisions of this Section
11to the contrary, a municipality whose territory lies partially
12in a county with a population of over 3,000,000 inhabitants
13and partially outside such a county may, in the alternative,
14impose the tax authorized under this Section in only that
15portion of the municipality that lies in a county with a
16population of over 3,000,000 inhabitants.
17    Persons subject to any tax imposed under the authority
18granted in this Section may reimburse themselves for their
19seller's tax liability hereunder by separately stating that
20tax as an additional charge, which charge may be stated in
21combination, in a single amount, with State tax which sellers
22are required to collect under the Use Tax Act, pursuant to such
23bracket schedules as the Department may prescribe.
24    A tax imposed pursuant to this Section, and all civil
25penalties that may be assessed as an incident thereof, shall
26be administered, collected, and enforced by the Department of



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1Revenue in the same manner as the tax imposed under the
2Retailers' Occupation Tax Act, as now or hereafter amended,
3insofar as may be practicable; except that in the event of a
4conflict with the provisions of this Section, this Section
5shall control. The Department of Revenue shall have full power
6to: administer and enforce this Section; collect all taxes and
7penalties due hereunder; dispose of taxes and penalties so
8collected in the manner hereinafter provided; and determine
9all rights to credit memoranda arising on account of the
10erroneous payment of tax or penalty hereunder.
11    Whenever the Department determines that a refund shall be
12made under this Section to a claimant instead of issuing a
13credit memorandum, the Department shall notify the State
14Comptroller, who shall cause the order to be drawn for the
15amount specified, and to the person named, in the notification
16from the Department. The refund shall be paid by the State
17Treasurer out of the Municipal Motor Fuel Tax Fund.
18    The Department shall immediately pay over to the State
19Treasurer, ex officio, as trustee, all taxes and penalties
20collected under this Section. Those taxes and penalties shall
21be deposited into the Municipal Motor Fuel Tax Fund, a trust
22fund created in the State treasury. Moneys in the Municipal
23Motor Fuel Tax Fund shall be used to make payments to
24municipalities and for the payment of refunds under this
26    On or before the 25th day of each calendar month, the



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1Department shall prepare and certify to the State Comptroller
2the disbursement of stated sums of money to named
3municipalities for which taxpayers have paid taxes or
4penalties hereunder to the Department during the second
5preceding calendar month. The amount to be paid to each
6municipality shall be the amount (not including credit
7memoranda) collected under this Section from retailers within
8the municipality during the second preceding calendar month by
9the Department, plus an amount the Department determines is
10necessary to offset amounts that were erroneously paid to a
11different municipality, and not including an amount equal to
12the amount of refunds made during the second preceding
13calendar month by the Department on behalf of the
14municipality, and not including any amount that the Department
15determines is necessary to offset any amounts that were
16payable to a different municipality but were erroneously paid
17to the municipality, less 1.5% of the remainder, which the
18Department shall transfer into the Tax Compliance and
19Administration Fund. The Department, at the time of each
20monthly disbursement, shall prepare and certify to the State
21Comptroller the amount to be transferred into the Tax
22Compliance and Administration Fund under this Section. Within
2310 days after receipt by the Comptroller of the disbursement
24certification to the municipalities and the Tax Compliance and
25Administration Fund provided for in this Section to be given
26to the Comptroller by the Department, the Comptroller shall



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1cause the orders to be drawn for the respective amounts in
2accordance with the directions contained in the certification.
3    Nothing in this Section shall be construed to authorize a
4municipality to impose a tax upon the privilege of engaging in
5any business which under the Constitution of the United States
6may not be made the subject of taxation by this State.
7    An ordinance or resolution imposing or discontinuing the
8tax under this Section or effecting a change in the rate
9thereof shall either: (i) be adopted and a certified copy
10thereof filed with the Department on or before the first day of
11April, whereupon the Department shall proceed to administer
12and enforce this Section as of the first day of July next
13following the adoption and filing; or (ii) be adopted and a
14certified copy thereof filed with the Department on or before
15the first day of October, whereupon the Department shall
16proceed to administer and enforce this Section as of the first
17day of January next following the adoption and filing.
18    An ordinance adopted in accordance with the provisions of
19this Section in effect before the effective date of this
20amendatory Act of the 101st General Assembly shall be deemed
21to impose the tax in accordance with the provisions of this
22Section as amended by this amendatory Act of the 101st General
23Assembly and shall be administered by the Department of
24Revenue in accordance with the provisions of this Section as
25amended by this amendatory Act of the 101st General Assembly;
26provided that, on or before October 1, 2020, the municipality



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1adopts and files a certified copy of a superseding ordinance
2that imposes the tax in accordance with the provisions of this
3Section as amended by this amendatory Act of the 101st General
4Assembly. If a superseding ordinance is not so adopted and
5filed, then the tax imposed in accordance with the provisions
6of this Section in effect before the effective date of this
7amendatory Act of the 101st General Assembly shall be
8discontinued on January 1, 2021.
9    This Section shall be known and may be cited as the
10Municipal Motor Fuel Tax Law.
11(Source: P.A. 101-32, eff. 6-28-19; 101-604, eff. 12-13-19.)".