Full Text of SB3563 101st General Assembly
SB3563 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB3563 Introduced 2/14/2020, by Sen. John F. Curran SYNOPSIS AS INTRODUCED: |
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35 ILCS 505/13 | from Ch. 120, par. 429 |
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Amends the Motor Fuel Tax Law. In a provision concerning refunds, allows claims for taxes paid for undyed diesel fuel used by vehicles operated by a municipal fire department or a fire protection district recognized by the Office of the State Fire Marshal. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Motor Fuel Tax Law is amended by changing | 5 | | Section 13 as follows:
| 6 | | (35 ILCS 505/13) (from Ch. 120, par. 429)
| 7 | | Sec. 13. Refund of tax paid. Any person other than a | 8 | | distributor or
supplier, who loses motor
fuel through any cause | 9 | | or uses motor fuel (upon which he has paid the amount
required | 10 | | to be collected under Section 2 of this Act) for any purpose | 11 | | other
than operating a motor vehicle upon the public highways | 12 | | or waters, shall be
reimbursed and repaid the amount so paid.
| 13 | | Any person who purchases motor fuel in Illinois and uses | 14 | | that motor fuel
in another state and that other state imposes a | 15 | | tax on the use of such
motor fuel shall be reimbursed and | 16 | | repaid the amount of Illinois tax paid
under Section 2 of this | 17 | | Act on the motor fuel used in such other state.
Reimbursement | 18 | | and repayment shall be made by the Department upon receipt of
| 19 | | adequate proof of taxes directly paid to another state and the | 20 | | amount of motor fuel
used in that state.
| 21 | | Claims based in whole or in part on taxes paid to another | 22 | | state shall include (i) a certified copy of the tax return | 23 | | filed with such other state by the claimant; (ii) a copy of |
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| 1 | | either the cancelled check paying the tax due on such return, | 2 | | or a receipt acknowledging payment of the tax due on such tax | 3 | | return; and (iii) such other information as the Department may | 4 | | reasonably require. This paragraph shall not apply to taxes | 5 | | paid on returns filed under Section 13a.3 of this Act. | 6 | | Any person who purchases motor fuel use tax decals as | 7 | | required by Section 13a.4 and pays an amount of fees for such | 8 | | decals that exceeds the amount due shall be reimbursed and | 9 | | repaid the amount of the decal fees that are deemed by the | 10 | | department to be in excess of the amount due. Alternatively, | 11 | | any person who purchases motor fuel use tax decals as required | 12 | | by Section 13a.4 may credit any excess decal payment verified | 13 | | by the Department against amounts subsequently due for the | 14 | | purchase of additional decals, until such time as no excess | 15 | | payment remains. | 16 | | Claims for such reimbursement must be made to the | 17 | | Department of Revenue,
duly verified by the claimant (or by the | 18 | | claimant's legal
representative if the claimant has died or | 19 | | become a person under legal
disability), upon forms prescribed | 20 | | by the Department. The claim must state
such facts relating to | 21 | | the purchase, importation, manufacture or production
of the | 22 | | motor fuel by the claimant as the Department may deem | 23 | | necessary, and
the time when, and the circumstances of its loss | 24 | | or the specific purpose
for which it was used (as the case may | 25 | | be), together with such other
information as the Department may | 26 | | reasonably require. No claim based upon
idle time shall be |
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| 1 | | allowed. Claims for reimbursement for overpayment of decal fees | 2 | | shall be made to the Department of Revenue, duly verified by | 3 | | the claimant (or by the claimant's legal representative if the | 4 | | claimant has died or become a person under legal disability), | 5 | | upon forms prescribed by the Department. The claim shall state | 6 | | facts relating to the overpayment of decal fees, together with | 7 | | such other information as the Department may reasonably | 8 | | require. Claims for reimbursement of overpayment of decal fees | 9 | | paid on or after January 1, 2011 must be filed not later than | 10 | | one year after the date on which the fees were paid by the | 11 | | claimant. If it is determined that the Department should | 12 | | reimburse a claimant for overpayment of decal fees, the | 13 | | Department shall first apply the amount of such refund against | 14 | | any tax or penalty or interest due by the claimant under | 15 | | Section 13a of this Act.
| 16 | | Claims for full reimbursement for taxes paid on or before | 17 | | December 31,
1999 must be filed not later than one year after | 18 | | the date on which
the tax was paid by the claimant.
If, | 19 | | however, a claim for such reimbursement otherwise meeting the
| 20 | | requirements of this Section is filed more than one year but | 21 | | less than 2
years after that date, the claimant shall be | 22 | | reimbursed at the rate of 80%
of the amount to which he would | 23 | | have been entitled if his claim had been
timely filed.
| 24 | | Claims for full reimbursement for taxes paid on or after | 25 | | January 1, 2000
must be filed not later than 2 years after the | 26 | | date on which the tax was paid
by the claimant.
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| 1 | | The Department may make such investigation of the | 2 | | correctness of the
facts stated in such claims as it deems | 3 | | necessary. When the Department has
approved any such claim, it | 4 | | shall pay to the claimant (or to the claimant's
legal | 5 | | representative, as such if the claimant has died or become a | 6 | | person
under legal disability) the reimbursement provided in
| 7 | | this Section, out of any moneys appropriated to it for that | 8 | | purpose.
| 9 | | Any distributor or supplier who has paid the tax imposed by | 10 | | Section 2
of this Act upon motor fuel lost or used by such | 11 | | distributor or supplier
for any purpose other than operating a | 12 | | motor vehicle upon the public
highways or waters may file a | 13 | | claim for credit or refund to recover the
amount so paid. Such | 14 | | claims shall be filed on forms prescribed by the
Department. | 15 | | Such claims shall be made to the Department, duly verified by | 16 | | the
claimant (or by the claimant's legal representative if
the | 17 | | claimant has died or become a person under legal disability), | 18 | | upon
forms prescribed by the Department. The claim shall state | 19 | | such facts
relating to the purchase, importation, manufacture | 20 | | or production of the
motor fuel by the claimant as the | 21 | | Department may deem necessary and the
time when the loss or | 22 | | nontaxable use occurred, and the circumstances of its
loss or | 23 | | the specific purpose for which it was used (as the case may | 24 | | be),
together with such other information as the Department may | 25 | | reasonably
require. Claims must be filed not later than one | 26 | | year after the
date on which the tax was paid by the claimant.
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| 1 | | The Department may make such investigation of the | 2 | | correctness of the
facts stated in such claims as it deems | 3 | | necessary. When the Department
approves a claim, the Department | 4 | | shall issue a refund or credit memorandum
as requested by the | 5 | | taxpayer, to the distributor or supplier who made the
payment | 6 | | for which the refund or credit is being given or, if the
| 7 | | distributor or supplier has died or become incompetent, to such
| 8 | | distributor's or supplier's legal representative, as such. The | 9 | | amount of
such credit memorandum shall be credited against any | 10 | | tax due or to become
due under this Act from the distributor or | 11 | | supplier who made the payment
for which credit has been given.
| 12 | | Any credit or refund that is allowed under this Section | 13 | | shall bear
interest at the rate and in the manner specified in | 14 | | the Uniform Penalty
and Interest Act.
| 15 | | In case the distributor or supplier requests and the
| 16 | | Department determines that the claimant is entitled to a
| 17 | | refund, such refund shall be made only from such appropriation | 18 | | as may be
available for that purpose. If it appears unlikely | 19 | | that the amount
appropriated would permit everyone having a | 20 | | claim allowed during the period
covered by such appropriation | 21 | | to elect to receive a cash refund, the
Department, by rule or | 22 | | regulation, shall provide for the payment of refunds
in | 23 | | hardship cases and shall define what types of cases qualify as | 24 | | hardship
cases.
| 25 | | In any case in which there has been an erroneous refund of | 26 | | tax or fees payable
under
this Section, a notice of tax |
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| 1 | | liability may be issued at any time within 3
years from the | 2 | | making of that refund, or within 5 years from the making of | 3 | | that
refund if it appears that any part of the refund was | 4 | | induced by fraud or the
misrepresentation of material fact. The | 5 | | amount of any proposed assessment
set forth by the Department | 6 | | shall be limited to the amount of the erroneous
refund.
| 7 | | If no tax is due and no proceeding is pending to determine | 8 | | whether such
distributor or supplier is indebted to the | 9 | | Department for tax,
the credit memorandum so issued may be | 10 | | assigned and set over by the lawful
holder thereof, subject to | 11 | | reasonable rules of the Department, to any other
licensed | 12 | | distributor or supplier who is subject to this Act, and
the | 13 | | amount thereof applied by the Department against any tax due or | 14 | | to
become due under this Act from such assignee.
| 15 | | If the payment for which the distributor's or supplier's
| 16 | | claim is filed is held in the protest fund of the State | 17 | | Treasury during
the pendency of the claim for credit | 18 | | proceedings pursuant to the order of
the court in accordance | 19 | | with Section 2a of the State Officers and Employees
Money | 20 | | Disposition Act and if it is determined by the Department or by | 21 | | the
final order of a reviewing court under the Administrative | 22 | | Review Law that
the claimant is entitled to all or a part of | 23 | | the credit claimed, the
claimant, instead of receiving a credit | 24 | | memorandum from the Department,
shall receive a cash refund | 25 | | from the protest fund as provided for in
Section 2a of the | 26 | | State Officers and Employees Money Disposition Act.
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| 1 | | If any person ceases to be licensed as a distributor or
| 2 | | supplier while still holding an unused credit memorandum issued | 3 | | under this
Act, such person may, at his election (instead of | 4 | | assigning the credit
memorandum to a licensed distributor or | 5 | | licensed
supplier under this Act), surrender such unused credit | 6 | | memorandum to the
Department and receive a refund of the amount | 7 | | to which such person is entitled.
| 8 | | For claims based upon taxes paid on or before December 31, | 9 | | 2000, a claim based upon the use of undyed diesel fuel shall | 10 | | not be allowed
except (i) if allowed under the following | 11 | | paragraph or (ii) for
undyed diesel fuel used by a commercial | 12 | | vehicle, as that term is defined in
Section 1-111.8 of the | 13 | | Illinois Vehicle Code, for any purpose other than
operating the | 14 | | commercial vehicle upon the public highways and unlicensed
| 15 | | commercial vehicles operating on private property. Claims | 16 | | shall be
limited to commercial vehicles
that are operated for | 17 | | both highway purposes and any purposes other than
operating | 18 | | such vehicles upon the public highways.
| 19 | | For claims based upon taxes paid on or after January 1, | 20 | | 2000, a claim based
upon the use of undyed diesel fuel shall | 21 | | not be allowed except (i) if allowed
under the preceding | 22 | | paragraph or (ii) for claims for the following:
| 23 | | (1) Undyed diesel fuel used (i) in a manufacturing | 24 | | process, as defined in
Section 2-45 of the Retailers' | 25 | | Occupation Tax Act, wherein the undyed diesel
fuel becomes | 26 | | a component part of a product or by-product, other than |
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| 1 | | fuel or
motor fuel, when the use of dyed diesel fuel in | 2 | | that manufacturing process
results in a product that is | 3 | | unsuitable for its intended use or (ii)
for testing | 4 | | machinery and equipment in a
manufacturing process, as | 5 | | defined in Section 2-45 of the Retailers' Occupation
Tax | 6 | | Act, wherein the testing takes place on private property.
| 7 | | (2) Undyed diesel fuel used by a manufacturer on | 8 | | private property in the
research and development, as | 9 | | defined in Section 1.29, of machinery or equipment
intended | 10 | | for manufacture.
| 11 | | (3) Undyed diesel fuel used by a single unit | 12 | | self-propelled agricultural
fertilizer implement, designed | 13 | | for on and off road use, equipped with flotation
tires and | 14 | | specially adapted for the application of plant food | 15 | | materials or
agricultural chemicals.
| 16 | | (4) Undyed diesel fuel used by a commercial motor | 17 | | vehicle for any purpose
other than operating the commercial | 18 | | motor vehicle upon the public highways.
Claims shall be | 19 | | limited to commercial motor vehicles that are operated for | 20 | | both
highway purposes and any purposes other than operating | 21 | | such vehicles upon the
public highways.
| 22 | | (5) Undyed diesel fuel used by a unit of local | 23 | | government in its operation
of an airport if the undyed | 24 | | diesel fuel is used directly in airport operations
on | 25 | | airport property.
| 26 | | (6) Undyed diesel fuel used by refrigeration units that |
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| 1 | | are permanently
mounted to a semitrailer, as defined in | 2 | | Section 1.28 of this Law, wherein the
refrigeration units | 3 | | have a fuel supply system dedicated solely for the
| 4 | | operation of the refrigeration units.
| 5 | | (7) Undyed diesel fuel used by power take-off equipment | 6 | | as defined in
Section 1.27 of this Law. | 7 | | (8) Beginning on the effective date of this amendatory | 8 | | Act of the 94th General Assembly, undyed diesel fuel used | 9 | | by tugs and spotter equipment to shift vehicles or parcels | 10 | | on both private and airport property. Any claim under this | 11 | | item (8) may be made only by a claimant that owns tugs and | 12 | | spotter equipment and operates that equipment on both | 13 | | private and airport property. The aggregate of all credits | 14 | | or refunds resulting from claims filed under this item (8) | 15 | | by a claimant in any calendar year may not exceed $100,000. | 16 | | A claim may not be made under this item (8) by the same | 17 | | claimant more often than once each quarter. For the | 18 | | purposes of this item (8), "tug" means a vehicle designed | 19 | | for use on airport property that shifts custom-designed | 20 | | containers of parcels from loading docks to aircraft, and | 21 | | "spotter equipment" means a vehicle designed for use on | 22 | | both private and airport property that shifts trailers | 23 | | containing parcels between staging areas and loading | 24 | | docks.
| 25 | | (9) Beginning on the effective date of this amendatory | 26 | | Act of the 101st General Assembly, undyed diesel fuel used |
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| 1 | | by vehicles operated by a municipal fire department or a | 2 | | fire protection district recognized by the Office of the | 3 | | State Fire Marshal. A claim may not be made under this item | 4 | | (9) by the same claimant more often than once each calendar | 5 | | quarter. | 6 | | Any person who has paid the tax imposed by Section 2 of | 7 | | this Law upon undyed
diesel fuel that is unintentionally mixed | 8 | | with dyed diesel fuel and who owns or
controls the mixture of | 9 | | undyed diesel fuel and dyed diesel fuel may file a
claim for | 10 | | refund to recover the amount paid. The amount of undyed diesel | 11 | | fuel
unintentionally mixed must equal 500 gallons or more. Any | 12 | | claim for refund of
unintentionally mixed undyed diesel fuel | 13 | | and dyed diesel fuel shall be
supported by documentation | 14 | | showing the date and location of the unintentional
mixing, the | 15 | | number of gallons involved, the disposition of the mixed diesel
| 16 | | fuel, and any other information that the Department may | 17 | | reasonably require.
Any unintentional mixture of undyed diesel | 18 | | fuel and dyed diesel fuel shall be
sold or used only for | 19 | | non-highway purposes.
| 20 | | The Department shall
promulgate regulations establishing | 21 | | specific limits on the amount of undyed
diesel fuel that may be | 22 | | claimed for refund.
| 23 | | For purposes of claims for refund, "loss" means the | 24 | | reduction of motor
fuel resulting from fire, theft, spillage, | 25 | | spoilage, leakage, or any other
provable cause, but does not | 26 | | include a reduction resulting from evaporation, or
shrinkage |
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| 1 | | due to temperature variations. In the case of losses due to | 2 | | fire or theft, the claimant must include fire department or | 3 | | police department reports and any other documentation that the | 4 | | Department may require.
| 5 | | (Source: P.A. 100-1171, eff. 1-4-19.)
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law.
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