Illinois General Assembly - Full Text of HB1846
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Full Text of HB1846  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 2/17/2021, by Rep. Will Guzzardi


55 ILCS 5/5-1035.1  from Ch. 34, par. 5-1035.1

    Amends the County Motor Fuel Tax Law in the Counties Code. Provides that any county (currently, DuPage, Kane, Lake, Will, and McHenry counties only) may impose a tax upon all persons engaged in the business of selling motor fuel. Provides that, in addition to other uses currently allowed by law, the proceeds from the tax shall be used for the purpose of maintaining and constructing essential transportation-related infrastructure.

LRB102 10131 AWJ 15453 b






HB1846LRB102 10131 AWJ 15453 b

1    AN ACT concerning local government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Counties Code is amended by changing
5Section 5-1035.1 as follows:
6    (55 ILCS 5/5-1035.1)  (from Ch. 34, par. 5-1035.1)
7    Sec. 5-1035.1. County Motor Fuel Tax Law.
8    (a) The county board of any county the counties of DuPage,
9Kane, Lake, Will, and McHenry may, by an ordinance or
10resolution adopted by an affirmative vote of a majority of the
11members elected or appointed to the county board, impose a tax
12upon all persons engaged in the county in the business of
13selling motor fuel, as now or hereafter defined in the Motor
14Fuel Tax Law, at retail for the operation of motor vehicles
15upon public highways or for the operation of recreational
16watercraft upon waterways. The collection of a tax under this
17Section based on gallonage of gasoline used for the propulsion
18of any aircraft is prohibited, and the collection of a tax
19based on gallonage of special fuel used for the propulsion of
20any aircraft is prohibited on and after December 1, 2019. The
21county Kane County may exempt diesel fuel from the tax imposed
22pursuant to this Section. The initial tax rate may not be less
23than 4 cents per gallon of motor fuel sold at retail within the



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1county for the purpose of use or consumption and not for the
2purpose of resale and may not exceed 8 cents per gallon of
3motor fuel sold at retail within the county for the purpose of
4use or consumption and not for the purpose of resale. The
5proceeds from the tax shall be used by the county solely for
6the purposes purposes of operating, constructing, and
7improving public highways and waterways, and acquiring real
8property and rights-of-way for public highways and waterways
9within the county imposing the tax, and maintaining and
10constructing essential transportation-related infrastructure.
11    (a-5) By June 1, 2020, and by June 1 of each year
12thereafter, the Department of Revenue shall determine an
13annual rate increase to take effect on July 1 of that calendar
14year and continue through June 30 of the next calendar year.
15Not later than June 1 of each year, the Department of Revenue
16shall publish on its website the rate that will take effect on
17July 1 of that calendar year. The rate shall be equal to the
18rate in effect increased by an amount equal to the percentage
19increase, if any, in the Consumer Price Index for All Urban
20Consumers for all items, published by the United States
21Department of Labor for the 12 months ending in March of each
22year. The rate shall be rounded to the nearest one-tenth of one
23cent. Each new rate may not exceed the rate in effect on June
2430 of the previous year plus one cent.
25    (b) A tax imposed pursuant to this Section, and all civil
26penalties that may be assessed as an incident thereof, shall



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1be administered, collected, and enforced by the Illinois
2Department of Revenue in the same manner as the tax imposed
3under the Retailers' Occupation Tax Act, as now or hereafter
4amended, insofar as may be practicable; except that in the
5event of a conflict with the provisions of this Section, this
6Section shall control. The Department of Revenue shall have
7full power: to administer and enforce this Section; to collect
8all taxes and penalties due hereunder; to dispose of taxes and
9penalties so collected in the manner hereinafter provided; and
10to determine all rights to credit memoranda arising on account
11of the erroneous payment of tax or penalty hereunder.
12    (b-5) Persons subject to any tax imposed under the
13authority granted in this Section may reimburse themselves for
14their seller's tax liability hereunder by separately stating
15that tax as an additional charge, which charge may be stated in
16combination, in a single amount, with State tax which sellers
17are required to collect under the Use Tax Act, pursuant to such
18bracket schedules as the Department may prescribe.
19    (c) Whenever the Department determines that a refund shall
20be made under this Section to a claimant instead of issuing a
21credit memorandum, the Department shall notify the State
22Comptroller, who shall cause the order to be drawn for the
23amount specified, and to the person named, in the notification
24from the Department. The refund shall be paid by the State
25Treasurer out of the County Option Motor Fuel Tax Fund.
26    (d) The Department shall forthwith pay over to the State



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1Treasurer, ex officio, as trustee, all taxes and penalties
2collected hereunder, which shall be deposited into the County
3Option Motor Fuel Tax Fund, a special fund in the State
4Treasury which is hereby created. On or before the 25th day of
5each calendar month, the Department shall prepare and certify
6to the State Comptroller the disbursement of stated sums of
7money to named counties for which taxpayers have paid taxes or
8penalties hereunder to the Department during the second
9preceding calendar month. The amount to be paid to each county
10shall be the amount (not including credit memoranda) collected
11hereunder from retailers within the county during the second
12preceding calendar month by the Department, but not including
13an amount equal to the amount of refunds made during the second
14preceding calendar month by the Department on behalf of the
15county; less 2% of the balance, which sum shall be retained by
16the State Treasurer to cover the costs incurred by the
17Department in administering and enforcing the provisions of
18this Section. The Department, at the time of each monthly
19disbursement to the counties, shall prepare and certify to the
20Comptroller the amount so retained by the State Treasurer,
21which shall be transferred into the Tax Compliance and
22Administration Fund.
23    (e) Nothing in this Section shall be construed to
24authorize a county to impose a tax upon the privilege of
25engaging in any business which under the Constitution of the
26United States may not be made the subject of taxation by this



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2    (f) Until January 1, 2020, an ordinance or resolution
3imposing a tax hereunder or effecting a change in the rate
4thereof shall be effective on the first day of the second
5calendar month next following the month in which the ordinance
6or resolution is adopted and a certified copy thereof is filed
7with the Department of Revenue, whereupon the Department of
8Revenue shall proceed to administer and enforce this Section
9on behalf of the county as of the effective date of the
10ordinance or resolution.
11    On and after January 1, 2020, an ordinance or resolution
12imposing or discontinuing the tax hereunder or effecting a
13change in the rate thereof shall either: (i) be adopted and a
14certified copy thereof filed with the Department on or before
15the first day of April, whereupon the Department shall proceed
16to administer and enforce this Section as of the first day of
17July next following the adoption and filing; or (ii) be
18adopted and a certified copy thereof filed with the Department
19on or before the first day of October, whereupon the
20Department shall proceed to administer and enforce this
21Section as of the first day of January next following the
22adoption and filing.
23    (g) This Section shall be known and may be cited as the
24County Motor Fuel Tax Law.
25(Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19;
26101-275, eff. 8-9-19; 101-604, eff. 12-13-19.)