Full Text of HB5146 102nd General Assembly
HB5146 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB5146 Introduced 1/27/2022, by Rep. Sandra Hamilton SYNOPSIS AS INTRODUCED: |
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35 ILCS 505/2 | from Ch. 120, par. 418 |
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Amends the Motor Fuel Tax Law. Provides that the tax shall not be imposed for a period of 180 days if: (1) the wholesale price of the most widely traded crude oil traded on United States securities markets on any trading day has increased by more than $20 per barrel over the figure from the wholesale price on the same day of the immediately preceding calendar year and remains above this $20 benchmark for at least 10 successive trading days; or (b) the average pump price of Illinois-taxed motor fuel places Illinois motor fuel consumer prices in the top 10% among the 50 states.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Motor Fuel Tax Law is amended by changing | 5 | | Section 2 as follows:
| 6 | | (35 ILCS 505/2) (from Ch. 120, par. 418)
| 7 | | Sec. 2.
A tax is imposed on the privilege of operating | 8 | | motor vehicles
upon the public highways and recreational-type | 9 | | watercraft upon the waters
of this State.
| 10 | | (a) Prior to August 1, 1989, the tax is imposed at the rate | 11 | | of 13 cents
per gallon on all motor fuel used in motor vehicles | 12 | | operating on the public
highways and recreational type | 13 | | watercraft operating upon the waters of this
State. Beginning | 14 | | on August 1, 1989 and until January 1, 1990, the rate of the
| 15 | | tax imposed in this paragraph shall be 16 cents per gallon. | 16 | | Beginning January
1, 1990 and until July 1, 2019, the rate of | 17 | | tax imposed in this paragraph, including the tax on compressed | 18 | | natural gas, shall be 19 cents per
gallon. Beginning July 1, | 19 | | 2019, the rate of tax imposed in this paragraph shall be 38 | 20 | | cents per gallon and increased on July 1 of each subsequent | 21 | | year by an amount equal to the percentage increase, if any, in | 22 | | the Consumer Price Index for All Urban Consumers for all items | 23 | | published by the United States Department of Labor for the 12 |
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| 1 | | months ending in March of each year. The rate shall be rounded | 2 | | to the nearest one-tenth of one cent.
| 3 | | (b) Until July 1, 2019, the tax on the privilege of | 4 | | operating motor vehicles which use diesel
fuel, liquefied | 5 | | natural gas, or propane shall be the rate according to | 6 | | paragraph (a) plus an additional 2 1/2
cents per gallon. | 7 | | Beginning July 1, 2019, the tax on the privilege of operating | 8 | | motor vehicles which use diesel fuel, liquefied natural gas, | 9 | | or propane shall be the rate according to subsection (a) plus | 10 | | an additional 7.5 cents per gallon. "Diesel fuel" is defined | 11 | | as any product
intended
for use or offered for sale as a fuel | 12 | | for engines in which the fuel is injected
into the combustion | 13 | | chamber and ignited by pressure without electric spark.
| 14 | | (c) A tax is imposed upon the privilege of engaging in the | 15 | | business of
selling motor fuel as a retailer or reseller on all | 16 | | motor fuel used in motor
vehicles operating on the public | 17 | | highways and recreational type watercraft
operating upon the | 18 | | waters of this State: (1) at the rate of 3 cents per gallon
on | 19 | | motor fuel owned or possessed by such retailer or reseller at | 20 | | 12:01 a.m. on
August 1, 1989; and (2) at the rate of 3 cents | 21 | | per gallon on motor fuel owned
or possessed by such retailer or | 22 | | reseller at 12:01 A.M. on January 1, 1990.
| 23 | | Retailers and resellers who are subject to this additional | 24 | | tax shall be
required to inventory such motor fuel and pay this | 25 | | additional tax in a
manner prescribed by the Department of | 26 | | Revenue.
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| 1 | | The tax imposed in this paragraph (c) shall be in addition | 2 | | to all other
taxes imposed by the State of Illinois or any unit | 3 | | of local government in this
State.
| 4 | | (c-5) Notwithstanding any other provision of law, the tax | 5 | | under this Act shall not be imposed if either of the following | 6 | | conditions are met: (1) the wholesale price of the most widely | 7 | | traded crude oil traded on United States securities markets on | 8 | | any trading day has increased by more than $20 per barrel over | 9 | | the figure from the wholesale price on the same day of the | 10 | | immediately preceding calendar year and remains above this $20 | 11 | | benchmark for at least 10 successive trading days; or (b) the | 12 | | average pump price of Illinois-taxed motor fuel places | 13 | | Illinois motor fuel consumer prices in the top 10% among the 50 | 14 | | states. The suspension of the tax under this subsection (c-5) | 15 | | shall begin on the first day of the next month to occur after | 16 | | the Department of Commerce and Economic Opportunity certifies | 17 | | to the Director of Revenue that the conditions under this | 18 | | subsection exist and shall continue for a period of 180 days. | 19 | | If, at the end of that 180-day period, the Department of | 20 | | Revenue determines that the conditions for the suspension no | 21 | | longer exist, then it shall resume collecting the tax. If, at | 22 | | the end of that 180-day period, the Department of Revenue | 23 | | determines that the conditions for the suspension continue to | 24 | | exist, then the suspension shall continue for another 180-day | 25 | | period. | 26 | | (d) Except as provided in Section 2a, the collection of a |
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| 1 | | tax based on
gallonage of gasoline used for the propulsion of | 2 | | any aircraft is prohibited
on and after October 1, 1979, and | 3 | | the collection of a tax based on gallonage of special fuel used | 4 | | for the propulsion of any aircraft is prohibited on and after | 5 | | December 1, 2019.
| 6 | | (e) The collection of a tax, based on gallonage of all | 7 | | products commonly or
commercially known or sold as 1-K | 8 | | kerosene, regardless of its classification
or uses, is | 9 | | prohibited (i) on and after July 1, 1992 until December 31, | 10 | | 1999,
except when the 1-K kerosene is either: (1) delivered | 11 | | into bulk storage
facilities of a bulk user, or (2) delivered | 12 | | directly into the fuel supply tanks
of motor vehicles and (ii) | 13 | | on and after January 1, 2000. Beginning on January
1, 2000, the | 14 | | collection of a tax, based on gallonage of all products | 15 | | commonly
or commercially known or sold as 1-K kerosene, | 16 | | regardless of its classification
or uses, is prohibited except | 17 | | when the 1-K kerosene is delivered directly into
a storage | 18 | | tank that is located at a facility that has withdrawal | 19 | | facilities
that are readily accessible to and are capable of | 20 | | dispensing 1-K kerosene into
the fuel supply tanks of motor | 21 | | vehicles. For purposes of this subsection (e), a facility is | 22 | | considered to have withdrawal facilities that are not "readily | 23 | | accessible to and capable of dispensing 1-K kerosene into the | 24 | | fuel supply tanks of motor vehicles" only if the 1-K kerosene | 25 | | is delivered from: (i) a dispenser hose that is short enough so | 26 | | that it will not reach the fuel supply tank of a motor vehicle |
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| 1 | | or (ii) a dispenser that is enclosed by a fence or other | 2 | | physical barrier so that a vehicle cannot pull alongside the | 3 | | dispenser to permit fueling.
| 4 | | Any person who sells or uses 1-K kerosene for use in motor | 5 | | vehicles upon
which the tax imposed by this Law has not been | 6 | | paid shall be liable for any
tax due on the sales or use of 1-K | 7 | | kerosene.
| 8 | | (Source: P.A. 100-9, eff. 7-1-17; 101-10, eff. 6-5-19; 101-32, | 9 | | eff. 6-28-19; 101-604, eff. 12-13-19.)
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