103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4943

 

Introduced 2/7/2024, by Rep. Daniel Didech

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 505/8  from Ch. 120, par. 424

    Amends the Motor Fuel Tax Law. In provisions concerning the distribution of proceeds, provides that, of the moneys distributed to municipalities with 500,000 or more inhabitants and counties with 500,000 or more inhabitants, 1% shall be used for improving, developing, or incentivizing the use of non-carbon emitting transportation infrastructure.


LRB103 38252 HLH 68387 b

 

 

A BILL FOR

 

HB4943LRB103 38252 HLH 68387 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 8 as follows:
 
6    (35 ILCS 505/8)  (from Ch. 120, par. 424)
7    Sec. 8. Distribution of proceeds of tax. Except as
8provided in subsection (a-1) of this Section, Section 8a,
9subdivision (h)(1) of Section 12a, Section 13a.6, and items
1013, 14, 15, and 16 of Section 15, all money received by the
11Department under this Act, including payments made to the
12Department by member jurisdictions participating in the
13International Fuel Tax Agreement, shall be deposited into a
14special fund in the State treasury, to be known as the Motor
15Fuel Tax Fund, and shall be used as follows:
16    (a) 2 1/2 cents per gallon of the tax collected on special
17fuel under paragraph (b) of Section 2 and Section 13a of this
18Act shall be transferred to the State Construction Account
19Fund in the State Treasury; the remainder of the tax collected
20on special fuel under paragraph (b) of Section 2 and Section
2113a of this Act shall be deposited into the Road Fund;
22    (a-1) Beginning on July 1, 2019, an amount equal to the
23amount of tax collected under subsection (a) of Section 2 and

 

 

HB4943- 2 -LRB103 38252 HLH 68387 b

1Section 13a as a result of the increase in the tax rate under
2subsection (a) of Section 2 authorized by Public Act 101-32
3shall be deposited each month into the Transportation Renewal
4Fund; provided, however, that the amount that represents the
5part (b) portion of the rate under Section 13a shall be
6deposited each month into the Motor Fuel Tax Fund and the
7Transportation Renewal Fund in the same proportion as the
8amount collected under subsection (a) of Section 2;
9    (b) $420,000 shall be transferred each month to the State
10Boating Act Fund to be used by the Department of Natural
11Resources for the purposes specified in Article X of the Boat
12Registration and Safety Act;
13    (c) $3,500,000 shall be transferred each month to the
14Grade Crossing Protection Fund to be used as follows: not less
15than $12,000,000 each fiscal year shall be used for the
16construction or reconstruction of rail highway grade
17separation structures; $5,500,000 in fiscal year 2022 and each
18fiscal year thereafter shall be transferred to the
19Transportation Regulatory Fund and shall be used to pay the
20cost of administration of the Illinois Commerce Commission's
21railroad safety program in connection with its duties under
22subsection (3) of Section 18c-7401 of the Illinois Vehicle
23Code, with the remainder to be used by the Department of
24Transportation upon order of the Illinois Commerce Commission,
25to pay that part of the cost apportioned by such Commission to
26the State to cover the interest of the public in the use of

 

 

HB4943- 3 -LRB103 38252 HLH 68387 b

1highways, roads, streets, or pedestrian walkways in the county
2highway system, township and district road system, or
3municipal street system as defined in the Illinois Highway
4Code, as the same may from time to time be amended, for
5separation of grades, for installation, construction or
6reconstruction of crossing protection or reconstruction,
7alteration, relocation including construction or improvement
8of any existing highway necessary for access to property or
9improvement of any grade crossing and grade crossing surface
10including the necessary highway approaches thereto of any
11railroad across the highway or public road, or for the
12installation, construction, reconstruction, or maintenance of
13safety treatments to deter trespassing or a pedestrian walkway
14over or under a railroad right-of-way, as provided for in and
15in accordance with Section 18c-7401 of the Illinois Vehicle
16Code. The Commission may order up to $2,000,000 per year in
17Grade Crossing Protection Fund moneys for the improvement of
18grade crossing surfaces and up to $300,000 per year for the
19maintenance and renewal of 4-quadrant gate vehicle detection
20systems located at non-high speed rail grade crossings. In
21entering orders for projects for which payments from the Grade
22Crossing Protection Fund will be made, the Commission shall
23account for expenditures authorized by the orders on a cash
24rather than an accrual basis. For purposes of this requirement
25an "accrual basis" assumes that the total cost of the project
26is expended in the fiscal year in which the order is entered,

 

 

HB4943- 4 -LRB103 38252 HLH 68387 b

1while a "cash basis" allocates the cost of the project among
2fiscal years as expenditures are actually made. To meet the
3requirements of this subsection, the Illinois Commerce
4Commission shall develop annual and 5-year project plans of
5rail crossing capital improvements that will be paid for with
6moneys from the Grade Crossing Protection Fund. The annual
7project plan shall identify projects for the succeeding fiscal
8year and the 5-year project plan shall identify projects for
9the 5 directly succeeding fiscal years. The Commission shall
10submit the annual and 5-year project plans for this Fund to the
11Governor, the President of the Senate, the Senate Minority
12Leader, the Speaker of the House of Representatives, and the
13Minority Leader of the House of Representatives on the first
14Wednesday in April of each year;
15    (d) of the amount remaining after allocations provided for
16in subsections (a), (a-1), (b), and (c), a sufficient amount
17shall be reserved to pay all of the following:
18        (1) the costs of the Department of Revenue in
19    administering this Act;
20        (2) the costs of the Department of Transportation in
21    performing its duties imposed by the Illinois Highway Code
22    for supervising the use of motor fuel tax funds
23    apportioned to municipalities, counties and road
24    districts;
25        (3) refunds provided for in Section 13, refunds for
26    overpayment of decal fees paid under Section 13a.4 of this

 

 

HB4943- 5 -LRB103 38252 HLH 68387 b

1    Act, and refunds provided for under the terms of the
2    International Fuel Tax Agreement referenced in Section
3    14a;
4        (4) from October 1, 1985 until June 30, 1994, the
5    administration of the Vehicle Emissions Inspection Law,
6    which amount shall be certified monthly by the
7    Environmental Protection Agency to the State Comptroller
8    and shall promptly be transferred by the State Comptroller
9    and Treasurer from the Motor Fuel Tax Fund to the Vehicle
10    Inspection Fund, and for the period July 1, 1994 through
11    June 30, 2000, one-twelfth of $25,000,000 each month, for
12    the period July 1, 2000 through June 30, 2003, one-twelfth
13    of $30,000,000 each month, and $15,000,000 on July 1,
14    2003, and $15,000,000 on January 1, 2004, and $15,000,000
15    on each July 1 and October 1, or as soon thereafter as may
16    be practical, during the period July 1, 2004 through June
17    30, 2012, and $30,000,000 on June 1, 2013, or as soon
18    thereafter as may be practical, and $15,000,000 on July 1
19    and October 1, or as soon thereafter as may be practical,
20    during the period of July 1, 2013 through June 30, 2015,
21    for the administration of the Vehicle Emissions Inspection
22    Law of 2005, to be transferred by the State Comptroller
23    and Treasurer from the Motor Fuel Tax Fund into the
24    Vehicle Inspection Fund;
25        (4.5) beginning on July 1, 2019, the costs of the
26    Environmental Protection Agency for the administration of

 

 

HB4943- 6 -LRB103 38252 HLH 68387 b

1    the Vehicle Emissions Inspection Law of 2005 shall be
2    paid, subject to appropriation, from the Motor Fuel Tax
3    Fund into the Vehicle Inspection Fund; beginning in 2019,
4    no later than December 31 of each year, or as soon
5    thereafter as practical, the State Comptroller shall
6    direct and the State Treasurer shall transfer from the
7    Vehicle Inspection Fund to the Motor Fuel Tax Fund any
8    balance remaining in the Vehicle Inspection Fund in excess
9    of $2,000,000;
10        (5) amounts ordered paid by the Court of Claims; and
11        (6) payment of motor fuel use taxes due to member
12    jurisdictions under the terms of the International Fuel
13    Tax Agreement. The Department shall certify these amounts
14    to the Comptroller by the 15th day of each month; the
15    Comptroller shall cause orders to be drawn for such
16    amounts, and the Treasurer shall administer those amounts
17    on or before the last day of each month;
18    (e) after allocations for the purposes set forth in
19subsections (a), (a-1), (b), (c), and (d), the remaining
20amount shall be apportioned as follows:
21        (1) Until January 1, 2000, 58.4%, and beginning
22    January 1, 2000, 45.6% shall be deposited as follows:
23            (A) 37% into the State Construction Account Fund,
24        and
25            (B) 63% into the Road Fund, $1,250,000 of which
26        shall be reserved each month for the Department of

 

 

HB4943- 7 -LRB103 38252 HLH 68387 b

1        Transportation to be used in accordance with the
2        provisions of Sections 6-901 through 6-906 of the
3        Illinois Highway Code;
4        (2) Until January 1, 2000, 41.6%, and beginning
5    January 1, 2000, 54.4% shall be transferred to the
6    Department of Transportation to be distributed as follows:
7            (A) 49.10% to the municipalities of the State,
8            (B) 16.74% to the counties of the State having
9        1,000,000 or more inhabitants,
10            (C) 18.27% to the counties of the State having
11        less than 1,000,000 inhabitants,
12            (D) 15.89% to the road districts of the State.
13        Of the moneys distributed under subparagraphs (A),
14    (B), and (C) of this paragraph (2) to municipalities with
15    500,000 or more inhabitants and counties with 500,000 or
16    more inhabitants, 1% shall be used to improve, develop, or
17    incentivize the use of non-carbon emitting transportation
18    infrastructure, including, but not limited to, safe public
19    bicycle infrastructure, safe pedestrian infrastructure, or
20    electric buses and other public transit improvements.
21        If a township is dissolved under Article 24 of the
22    Township Code, McHenry County shall receive any moneys
23    that would have been distributed to the township under
24    this subparagraph, except that a municipality that assumes
25    the powers and responsibilities of a road district under
26    paragraph (6) of Section 24-35 of the Township Code shall

 

 

HB4943- 8 -LRB103 38252 HLH 68387 b

1    receive any moneys that would have been distributed to the
2    township in a percent equal to the area of the dissolved
3    road district or portion of the dissolved road district
4    over which the municipality assumed the powers and
5    responsibilities compared to the total area of the
6    dissolved township. The moneys received under this
7    subparagraph shall be used in the geographic area of the
8    dissolved township. If a township is reconstituted as
9    provided under Section 24-45 of the Township Code, McHenry
10    County or a municipality shall no longer be distributed
11    moneys under this subparagraph.
12    As soon as may be after the first day of each month, the
13Department of Transportation shall allot to each municipality
14its share of the amount apportioned to the several
15municipalities which shall be in proportion to the population
16of such municipalities as determined by the last preceding
17municipal census if conducted by the Federal Government or
18Federal census. If territory is annexed to any municipality
19subsequent to the time of the last preceding census the
20corporate authorities of such municipality may cause a census
21to be taken of such annexed territory and the population so
22ascertained for such territory shall be added to the
23population of the municipality as determined by the last
24preceding census for the purpose of determining the allotment
25for that municipality. If the population of any municipality
26was not determined by the last Federal census preceding any

 

 

HB4943- 9 -LRB103 38252 HLH 68387 b

1apportionment, the apportionment to such municipality shall be
2in accordance with any census taken by such municipality. Any
3municipal census used in accordance with this Section shall be
4certified to the Department of Transportation by the clerk of
5such municipality, and the accuracy thereof shall be subject
6to approval of the Department which may make such corrections
7as it ascertains to be necessary.
8    As soon as may be after the first day of each month, the
9Department of Transportation shall allot to each county its
10share of the amount apportioned to the several counties of the
11State as herein provided. Each allotment to the several
12counties having less than 1,000,000 inhabitants shall be in
13proportion to the amount of motor vehicle license fees
14received from the residents of such counties, respectively,
15during the preceding calendar year. The Secretary of State
16shall, on or before April 15 of each year, transmit to the
17Department of Transportation a full and complete report
18showing the amount of motor vehicle license fees received from
19the residents of each county, respectively, during the
20preceding calendar year. The Department of Transportation
21shall, each month, use for allotment purposes the last such
22report received from the Secretary of State.
23    As soon as may be after the first day of each month, the
24Department of Transportation shall allot to the several
25counties their share of the amount apportioned for the use of
26road districts. The allotment shall be apportioned among the

 

 

HB4943- 10 -LRB103 38252 HLH 68387 b

1several counties in the State in the proportion which the
2total mileage of township or district roads in the respective
3counties bears to the total mileage of all township and
4district roads in the State. Funds allotted to the respective
5counties for the use of road districts therein shall be
6allocated to the several road districts in the county in the
7proportion which the total mileage of such township or
8district roads in the respective road districts bears to the
9total mileage of all such township or district roads in the
10county. After July 1 of any year prior to 2011, no allocation
11shall be made for any road district unless it levied a tax for
12road and bridge purposes in an amount which will require the
13extension of such tax against the taxable property in any such
14road district at a rate of not less than either .08% of the
15value thereof, based upon the assessment for the year
16immediately prior to the year in which such tax was levied and
17as equalized by the Department of Revenue or, in DuPage
18County, an amount equal to or greater than $12,000 per mile of
19road under the jurisdiction of the road district, whichever is
20less. Beginning July 1, 2011 and each July 1 thereafter, an
21allocation shall be made for any road district if it levied a
22tax for road and bridge purposes. In counties other than
23DuPage County, if the amount of the tax levy requires the
24extension of the tax against the taxable property in the road
25district at a rate that is less than 0.08% of the value
26thereof, based upon the assessment for the year immediately

 

 

HB4943- 11 -LRB103 38252 HLH 68387 b

1prior to the year in which the tax was levied and as equalized
2by the Department of Revenue, then the amount of the
3allocation for that road district shall be a percentage of the
4maximum allocation equal to the percentage obtained by
5dividing the rate extended by the district by 0.08%. In DuPage
6County, if the amount of the tax levy requires the extension of
7the tax against the taxable property in the road district at a
8rate that is less than the lesser of (i) 0.08% of the value of
9the taxable property in the road district, based upon the
10assessment for the year immediately prior to the year in which
11such tax was levied and as equalized by the Department of
12Revenue, or (ii) a rate that will yield an amount equal to
13$12,000 per mile of road under the jurisdiction of the road
14district, then the amount of the allocation for the road
15district shall be a percentage of the maximum allocation equal
16to the percentage obtained by dividing the rate extended by
17the district by the lesser of (i) 0.08% or (ii) the rate that
18will yield an amount equal to $12,000 per mile of road under
19the jurisdiction of the road district.
20    Prior to 2011, if any road district has levied a special
21tax for road purposes pursuant to Sections 6-601, 6-602, and
226-603 of the Illinois Highway Code, and such tax was levied in
23an amount which would require extension at a rate of not less
24than .08% of the value of the taxable property thereof, as
25equalized or assessed by the Department of Revenue, or, in
26DuPage County, an amount equal to or greater than $12,000 per

 

 

HB4943- 12 -LRB103 38252 HLH 68387 b

1mile of road under the jurisdiction of the road district,
2whichever is less, such levy shall, however, be deemed a
3proper compliance with this Section and shall qualify such
4road district for an allotment under this Section. Beginning
5in 2011 and thereafter, if any road district has levied a
6special tax for road purposes under Sections 6-601, 6-602, and
76-603 of the Illinois Highway Code, and the tax was levied in
8an amount that would require extension at a rate of not less
9than 0.08% of the value of the taxable property of that road
10district, as equalized or assessed by the Department of
11Revenue or, in DuPage County, an amount equal to or greater
12than $12,000 per mile of road under the jurisdiction of the
13road district, whichever is less, that levy shall be deemed a
14proper compliance with this Section and shall qualify such
15road district for a full, rather than proportionate, allotment
16under this Section. If the levy for the special tax is less
17than 0.08% of the value of the taxable property, or, in DuPage
18County if the levy for the special tax is less than the lesser
19of (i) 0.08% or (ii) $12,000 per mile of road under the
20jurisdiction of the road district, and if the levy for the
21special tax is more than any other levy for road and bridge
22purposes, then the levy for the special tax qualifies the road
23district for a proportionate, rather than full, allotment
24under this Section. If the levy for the special tax is equal to
25or less than any other levy for road and bridge purposes, then
26any allotment under this Section shall be determined by the

 

 

HB4943- 13 -LRB103 38252 HLH 68387 b

1other levy for road and bridge purposes.
2    Prior to 2011, if a township has transferred to the road
3and bridge fund money which, when added to the amount of any
4tax levy of the road district would be the equivalent of a tax
5levy requiring extension at a rate of at least .08%, or, in
6DuPage County, an amount equal to or greater than $12,000 per
7mile of road under the jurisdiction of the road district,
8whichever is less, such transfer, together with any such tax
9levy, shall be deemed a proper compliance with this Section
10and shall qualify the road district for an allotment under
11this Section.
12    In counties in which a property tax extension limitation
13is imposed under the Property Tax Extension Limitation Law,
14road districts may retain their entitlement to a motor fuel
15tax allotment or, beginning in 2011, their entitlement to a
16full allotment if, at the time the property tax extension
17limitation was imposed, the road district was levying a road
18and bridge tax at a rate sufficient to entitle it to a motor
19fuel tax allotment and continues to levy the maximum allowable
20amount after the imposition of the property tax extension
21limitation. Any road district may in all circumstances retain
22its entitlement to a motor fuel tax allotment or, beginning in
232011, its entitlement to a full allotment if it levied a road
24and bridge tax in an amount that will require the extension of
25the tax against the taxable property in the road district at a
26rate of not less than 0.08% of the assessed value of the

 

 

HB4943- 14 -LRB103 38252 HLH 68387 b

1property, based upon the assessment for the year immediately
2preceding the year in which the tax was levied and as equalized
3by the Department of Revenue or, in DuPage County, an amount
4equal to or greater than $12,000 per mile of road under the
5jurisdiction of the road district, whichever is less.
6    As used in this Section, the term "road district" means
7any road district, including a county unit road district,
8provided for by the Illinois Highway Code; and the term
9"township or district road" means any road in the township and
10district road system as defined in the Illinois Highway Code.
11For the purposes of this Section, "township or district road"
12also includes such roads as are maintained by park districts,
13forest preserve districts and conservation districts. The
14Department of Transportation shall determine the mileage of
15all township and district roads for the purposes of making
16allotments and allocations of motor fuel tax funds for use in
17road districts.
18    Payment of motor fuel tax moneys to municipalities and
19counties shall be made as soon as possible after the allotment
20is made. The treasurer of the municipality or county may
21invest these funds until their use is required and the
22interest earned by these investments shall be limited to the
23same uses as the principal funds.
24(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
25102-699, eff. 4-19-22; 103-8, eff. 6-7-23.)