Section 695.101  Nature of the County Motor Fuel Tax

 

a)         Authority to Impose Tax

Under the County Motor Fuel Tax Law ("Law") [55 ILCS 5/5-1035.1], the county board of the counties of DuPage, Kane, Lake, Will and McHenry may, by an ordinance or resolution adopted by the affirmative vote of a majority of the members elected or appointed to the county board, impose a tax upon all persons engaged in the business of selling motor fuel, as now or hereafter defined in the Motor Fuel Tax Law [35 ILCS 505], at retail for the operation of motor vehicles upon public highways or for the operation of recreational watercraft upon waterways.  Kane County may exempt diesel fuel from the tax imposed pursuant to this Section.  The initial tax rate may not be less than 4 cents per gallon of motor fuel sold at retail within the county for the purpose of use or consumption and not for the purpose of resale and may not exceed 8 cents per gallon of motor fuel sold at retail within the county for the purpose of use or consumption and not for the purpose of resale.  The proceeds from the tax shall be used by the county solely for the purpose of operating, constructing and improving public highways and waterways, and acquiring real property and rights-of-way for public highways and waterways within the county imposing the tax.  The County Motor Fuel Tax imposed under the Law is an occupation tax upon retailers of motor fuel and is administered by the Illinois Department of Revenue ("Department") in the same manner as the Retailers' Occupation Tax. The tax imposed by a county board under the County Motor Fuel Tax Law and this Part, and all civil penalties that may be assessed as an incident thereof, shall be collected and enforced by the Department.

 

b)         Annual Rate Increase

By June 1, 2020, and by June 1 of each year thereafter, the Department of Revenue will determine an annual rate increase to take effect on July 1 of that calendar year and continue through June 30 of the next calendar year. Not later than June 1 of each year, the Department of Revenue will publish on its website the rate that will take effect on July 1 of that calendar year.  The rate shall be equal to the rate in effect increased by an amount equal to the percentage increase, if any, in the Consumer Price Index for All Urban Consumers for all items, published by the United States Department of Labor for the12 months ending in March of each year.  The rate shall be rounded to the nearest one-tenth of one cent. Each new rate may not exceed the rate in effect on June 30 of the previous year plus one cent.  (Section (a-5) of the Law)

 

1)         With respect to rate increases, if the rate in effect on June 30, 2020 is 4 cents per gallon, then the rate that takes effect on July 1, 2021 as a result of the annual rate increase may not exceed 5 cents per gallon. If, however, the county board adopts an ordinance or resolution to increase the rate on July 1, 2021 to 6 cents per gallon, then the 6 cents per gallon rate shall take effect on July 1, 2021, notwithstanding that it exceeds the rate in effect on June 30, 2020 by more than one cent per gallon.

 

2)         While the rate set by the county board by ordinance or resolution may not exceed 8 cents per gallon, the rate in effect thereafter may exceed 8 cents per gallon as a result of the annual rate increase provision.

 

c)         Passing on the Tax

The legal incidence of the Law is on the seller. Nevertheless, the General Assembly has authorized persons subject to any tax imposed pursuant to the authority granted in the Law to reimburse themselves for their County Motor Fuel Tax liability by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax that sellers are required to collect under the Use Tax Act [35 ILCS 105], pursuant to such bracket schedules as the Department has prescribed (see 86 Ill. Adm. Code 150.Table A).

 

d)         Exclusion from "Gross Receipts"

Any amount added to the selling price of motor fuel by the seller because of a County Motor Fuel Tax, or because of the Illinois Retailers' Occupation Tax [35 ILCS 120], the Illinois Use Tax [35 ILCS 105], or any local occupation or use tax administered by the Department and collected from the purchaser, shall not be regarded as a part of the seller's gross receipts that are subject to such County Motor Fuel Tax.

 

(Source:  Amended at 44 Ill. Reg. 8336, effective April 28, 2020)

 

Section 695.105  Registration and Returns

 

a)         Separate Registration Not Required

A retailer's registration under the Illinois Retailers' Occupation Tax Act [35 ILCS 120] is sufficient for the County Motor Fuel Tax Law.  No special registration for the Law is required.

 

b)         Requirements as to Returns

 

1)         The information required for the Law shall be furnished on the return form prescribed by the Department.

 

2)         On or before the 20^th day of each calendar month, every person engaged in the business of selling motor fuel, as now or hereafter defined in the Motor Fuel Tax Law [35 ILCS 505], at retail in the counties of DuPage, Kane, Lake, Will or McHenry for the operation of motor vehicles upon public highways or for the operation of recreational watercraft upon waterways during the preceding calendar month shall file a return with the Department for the preceding month, stating the name of the seller; the address of his or her principal place of business, the address of the principal place of business (if that is a different address) from which he or she is engaged in the business of selling the motor fuel at retail; total gallons of motor fuel sold; deductions allowed by law; and amount of tax due.

 

3)         If the retailer files his or her Illinois Retailers' Occupation Tax returns on the gross receipts basis, he or she must report County Motor Fuel Tax information in his or her returns on the same basis.  If the retailer files his or her Illinois Retailers' Occupation Tax returns on the gross sales basis, he or she must report County Motor Fuel Tax information in his or her returns on the gross sales basis.

 

(Source:  Amended at 44 Ill. Reg. 8336, effective April 28, 2020)

 

Section 695.110  Claims to Recover Erroneously Paid Tax

 

Claims for Multiple Taxes.  If a claimant files a claim for refund on a transaction which was subject to State and local taxes administered by the Department, the claim need not be filed separately for each type of tax.  A single claim for the total of all applicable taxes will suffice.  The claim will be audited, heard, or otherwise processed as a single claim whenever possible.  A single credit memorandum will be issued that may be used by the claimant or his authorized assignee to pay State or local tax liability as authorized in 86 Ill. Adm. Code 130.1505(b)(1).

 

Section 695.115  Jurisdictional Questions

 

The substance and provisions of 86 Ill. Adm. Code 270.115 of the Home Rule Municipal Retailers' Occupation Tax Regulations which are not incompatible with the County Motor Fuel Tax Law of the Counties Code, shall apply to this Part. References to a "home rule municipality" or "municipality" in Section 270.115 mean "County" for purposes of this Section. References to the Home Rule Municipal Retailers’ Occupation Tax in Section 270.115 mean County Motor Fuel Tax for purposes of this Part. When used in this Part, "County" means any one of the counties of DuPage, Kane, Lake, Will or McHenry authorized under the County Motor Fuel Tax Law to impose a County Motor Fuel Tax.

 

(Source:  Amended at 47 Ill. Reg. 2840, effective February 7, 2023)

 

Section 695.120  Incorporation of Retailers' Occupation Tax Regulations by Reference

 

To avoid needless repetition, the substance and provisions of all Retailers' Occupation Tax Regulations (86 Ill. Adm. Code 130) that are not incompatible with the County Motor Fuel Tax Law or any special regulations that may be promulgated by the Department under the Law shall apply to the tax imposed pursuant to this Part.

 

Section 695.125  Penalties, Interest and Procedures

 

All penalties (both civil and criminal), provisions concerning interest, and procedures (such as the making of assessments, the venue and mode of conducting hearings, subpoenas, matters pertaining to judicial review and other procedural subjects), together with statutes of limitation, are the same under the County Motor Fuel Tax Law as under the Illinois Retailers' Occupation Tax Act [35 ILCS 120] and the Uniform Penalty and Interest Act [35 ILCS 735].

 

Section 695.130  Effective Date

 

An ordinance or resolution imposing a County Motor Fuel Tax or effecting a change in the rate thereof shall be effective on the first day of the second calendar month next following the month in which the ordinance or resolution is adopted and a certified copy thereof is filed with the Department, whereupon the Department shall proceed to administer and enforce the ordinance or resolution on behalf of the county as of the effective date of the ordinance or resolution.  Upon a change in the rate of tax or upon the discontinuance of the tax, the county board of the county shall, on or not later than 5 days after the effective date of the ordinance or resolution discontinuing the tax or effecting a change in rate, transmit to the Department a certified copy of the ordinance or resolution effecting the change or discontinuance (Section 5-1035.1 of the Law).  For purposes of determining which tax rate applies, the date of the sale is deemed to be the date of the delivery of the property.