(35 ILCS 505/6)
(from Ch. 120, par. 422)
Collection of tax; distributors.
A distributor who sells or
distributes any motor fuel, which he is
required by Section 5 to report to the Department when filing a return,
shall (except as hereinafter provided) collect at the time of such sale and
distribution, the amount of tax imposed under this Act on all such motor
fuel sold and distributed, and at the time of making a return, the
distributor shall pay to the Department the amount so collected less a discount
of 2% through June 30, 2003 and 1.75% thereafter which is allowed to
reimburse the distributor for the
in keeping records, preparing and filing returns, collecting and remitting
the tax and supplying data to the Department on request, and shall also
pay to the Department an amount equal to the amount that would be collectible
as a tax in the event of a sale thereof on all such motor fuel used by said
distributor during the period covered by the return.
However, no payment shall be made based upon dyed diesel fuel used
by the distributor for non-highway purposes.
shall only be applicable to the amount of tax payment which accompanies a
return which is filed timely in accordance with Section 5 of this Act.
In each subsequent sale of motor fuel on which the amount of tax imposed under
this Act has been collected as provided in this Section, the amount so
collected shall be added to the selling price, so that the amount of tax is
paid ultimately by the user of the motor fuel. However, no collection or
payment shall be made in the case of the sale or use of any motor fuel to the
extent to which such sale or use of motor fuel may not, under the constitution
and statutes of the United States, be made the subject of taxation by this
State. A person whose license to act as a distributor of fuel has been revoked
shall, at the time of making a return, also pay to the Department an amount
equal to the amount that would be collectible as a tax in the event of a sale
thereof on all motor fuel, which he is required by the second paragraph of
Section 5 to report to the Department in making a return, and which he had on
hand on the date on which the license was revoked, and with respect to which no
tax had been previously paid under this Act.
A distributor may make tax free sales of motor fuel, with respect to
which he is otherwise required to collect the tax, only as specified in the following items 1 through 7.
1. When the sale is made to a person holding a valid
unrevoked license as a distributor, by making a specific notation thereof on invoices or sales slip covering each sale.
2. When the sale is made with delivery to a purchaser
3. When the sale is made to the Federal Government or
4. When the sale is made to a municipal corporation
owning and operating a local transportation system for public service in this State when an official certificate of exemption is obtained in lieu of the tax.
5. When the sale is made to a privately owned public
utility owning and operating 2 axle vehicles designed and used for transporting more than 7 passengers, which vehicles are used as common carriers in general transportation of passengers, are not devoted to any specialized purpose and are operated entirely within the territorial limits of a single municipality or of any group of contiguous municipalities, or in a close radius thereof, and the operations of which are subject to the regulations of the Illinois Commerce Commission, when an official certificate of exemption is obtained in lieu of the tax.
6. When a sale of special fuel is made to a person
holding a valid, unrevoked license as a supplier, by making a specific notation thereof on the invoice or sales slip covering each such sale.
7. When a sale of dyed diesel fuel is made by the
licensed distributor to the end user of the fuel who is not a licensed distributor or a licensed supplier for non-highway purposes and the fuel is (i) delivered from a vehicle designed for the specific purpose of such sales and delivered directly into a stationary bulk storage tank that displays the notice required by Section 4f of this Act, (ii) delivered from a vehicle designed for the specific purpose of such sales and delivered directly into the fuel supply tanks of non-highway vehicles that are not required to be registered for highway use, or (iii) dispensed from a dyed diesel fuel dispensing facility that has withdrawal facilities that are not readily accessible to and are not capable of dispensing dyed diesel fuel into the fuel supply tank of a motor vehicle.
A specific notation is required on the invoice or
sales slip covering such sales, and any supporting documentation that may be required by the Department must be obtained by the distributor. The distributor shall obtain and keep the supporting documentation in such form as the Department may require by rule.
For purposes of this item 7, a dyed diesel fuel
dispensing facility is considered to have withdrawal facilities that are "not readily accessible to and not capable of dispensing dyed diesel fuel into the fuel supply tank of a motor vehicle" only if the dyed diesel fuel is delivered from: (i) a dispenser hose that is short enough so that it will not reach the fuel supply tank of a motor vehicle or (ii) a dispenser that is enclosed by a fence or other physical barrier so that a vehicle cannot pull alongside the dispenser to permit fueling.
All special fuel sold or used for non-highway purposes must have a dye
added in accordance with Section 4d of this Law.
All suits or other proceedings brought for the purpose of recovering any
taxes, interest or penalties due the State of Illinois under this Act may
be maintained in the name of the Department.
(Source: P.A. 102-1019, eff. 5-27-22.)