101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4738

 

Introduced 2/18/2020, by Rep. C.D. Davidsmeyer

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 505/1.30 new
35 ILCS 505/2  from Ch. 120, par. 418

    Amends the Motor Fuel Tax Law. Provides that, on and after July 1, 2020, marine fuel is exempt from the tax imposed under the Act. Provides that "marine fuel" means motor fuel specially formulated to be used in the propulsion of watercraft. Effective immediately.


LRB101 14853 HLH 63829 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4738LRB101 14853 HLH 63829 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 2 and by adding Section 1.30 as follows:
 
6    (35 ILCS 505/1.30 new)
7    Sec. 1.30. Marine fuel. "Marine fuel" means motor fuel
8specially formulated to be used in the propulsion of
9watercraft.
 
10    (35 ILCS 505/2)  (from Ch. 120, par. 418)
11    Sec. 2. A tax is imposed on the privilege of operating
12motor vehicles upon the public highways and recreational-type
13watercraft upon the waters of this State.
14    (a) Prior to August 1, 1989, the tax is imposed at the rate
15of 13 cents per gallon on all motor fuel used in motor vehicles
16operating on the public highways and recreational type
17watercraft operating upon the waters of this State. Beginning
18on August 1, 1989 and until January 1, 1990, the rate of the
19tax imposed in this paragraph shall be 16 cents per gallon.
20Beginning January 1, 1990 and until July 1, 2019, the rate of
21tax imposed in this paragraph, including the tax on compressed
22natural gas, shall be 19 cents per gallon. Beginning July 1,

 

 

HB4738- 2 -LRB101 14853 HLH 63829 b

12019, the rate of tax imposed in this paragraph shall be 38
2cents per gallon and increased on July 1 of each subsequent
3year by an amount equal to the percentage increase, if any, in
4the Consumer Price Index for All Urban Consumers for all items
5published by the United States Department of Labor for the 12
6months ending in March of each year.
7    (b) The tax on the privilege of operating motor vehicles
8which use diesel fuel, liquefied natural gas, or propane shall
9be the rate according to paragraph (a) plus an additional 2 1/2
10cents per gallon. Beginning July 1, 2019, the rate of tax
11imposed in this paragraph shall be 7.5 cents per gallon.
12"Diesel fuel" is defined as any product intended for use or
13offered for sale as a fuel for engines in which the fuel is
14injected into the combustion chamber and ignited by pressure
15without electric spark.
16    (c) A tax is imposed upon the privilege of engaging in the
17business of selling motor fuel as a retailer or reseller on all
18motor fuel used in motor vehicles operating on the public
19highways and recreational type watercraft operating upon the
20waters of this State: (1) at the rate of 3 cents per gallon on
21motor fuel owned or possessed by such retailer or reseller at
2212:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents per
23gallon on motor fuel owned or possessed by such retailer or
24reseller at 12:01 A.M. on January 1, 1990.
25    Retailers and resellers who are subject to this additional
26tax shall be required to inventory such motor fuel and pay this

 

 

HB4738- 3 -LRB101 14853 HLH 63829 b

1additional tax in a manner prescribed by the Department of
2Revenue.
3    The tax imposed in this paragraph (c) shall be in addition
4to all other taxes imposed by the State of Illinois or any unit
5of local government in this State.
6    (d) Except as provided in Section 2a, the collection of a
7tax based on gallonage of gasoline used for the propulsion of
8any aircraft is prohibited on and after October 1, 1979, and
9the collection of a tax based on gallonage of special fuel used
10for the propulsion of any aircraft is prohibited on and after
11December 1, 2019.
12    (d-5) On and after July 1, 2020, marine fuel, as defined in
13Section 1.30, is exempt from the tax imposed under this Act.
14    (e) The collection of a tax, based on gallonage of all
15products commonly or commercially known or sold as 1-K
16kerosene, regardless of its classification or uses, is
17prohibited (i) on and after July 1, 1992 until December 31,
181999, except when the 1-K kerosene is either: (1) delivered
19into bulk storage facilities of a bulk user, or (2) delivered
20directly into the fuel supply tanks of motor vehicles and (ii)
21on and after January 1, 2000. Beginning on January 1, 2000, the
22collection of a tax, based on gallonage of all products
23commonly or commercially known or sold as 1-K kerosene,
24regardless of its classification or uses, is prohibited except
25when the 1-K kerosene is delivered directly into a storage tank
26that is located at a facility that has withdrawal facilities

 

 

HB4738- 4 -LRB101 14853 HLH 63829 b

1that are readily accessible to and are capable of dispensing
21-K kerosene into the fuel supply tanks of motor vehicles. For
3purposes of this subsection (e), a facility is considered to
4have withdrawal facilities that are not "readily accessible to
5and capable of dispensing 1-K kerosene into the fuel supply
6tanks of motor vehicles" only if the 1-K kerosene is delivered
7from: (i) a dispenser hose that is short enough so that it will
8not reach the fuel supply tank of a motor vehicle or (ii) a
9dispenser that is enclosed by a fence or other physical barrier
10so that a vehicle cannot pull alongside the dispenser to permit
11fueling.
12    Any person who sells or uses 1-K kerosene for use in motor
13vehicles upon which the tax imposed by this Law has not been
14paid shall be liable for any tax due on the sales or use of 1-K
15kerosene.
16(Source: P.A. 100-9, eff. 7-1-17; 101-10, eff. 6-5-19; 101-32,
17eff. 6-28-19; revised 7-12-19.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.