Full Text of HB2974 103rd General Assembly
HB2974 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB2974 Introduced 2/16/2023, by Rep. Christopher "C.D" Davidsmeyer SYNOPSIS AS INTRODUCED: |
| 35 ILCS 505/1.30 new | | 35 ILCS 505/2 | from Ch. 120, par. 418 |
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Amends the Motor Fuel Tax Law. Provides that, on and after July 1, 2023, 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.
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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 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 | 8 | | specially formulated to be used in the propulsion of | 9 | | watercraft.
| 10 | | (35 ILCS 505/2) (from Ch. 120, par. 418)
| 11 | | Sec. 2.
A tax is imposed on the privilege of operating | 12 | | motor vehicles
upon the public highways and recreational-type | 13 | | watercraft upon the waters
of this State.
| 14 | | (a) Prior to August 1, 1989, the tax is imposed at the rate | 15 | | of 13 cents
per gallon on all motor fuel used in motor vehicles | 16 | | operating on the public
highways and recreational type | 17 | | watercraft operating upon the waters of this
State. Beginning | 18 | | on August 1, 1989 and until January 1, 1990, the rate of the
| 19 | | tax imposed in this paragraph shall be 16 cents per gallon. | 20 | | Beginning January
1, 1990 and until July 1, 2019, the rate of | 21 | | tax imposed in this paragraph, including the tax on compressed | 22 | | natural gas, shall be 19 cents per
gallon. Beginning July 1, |
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| 1 | | 2019 and until July 1, 2020, the rate of tax imposed in this | 2 | | paragraph shall be 38 cents per gallon. Beginning July 1, 2020 | 3 | | and until July 1, 2021, the rate of tax imposed in this | 4 | | paragraph shall be 38.7 cents per gallon. Beginning July 1, | 5 | | 2021 and until January 1, 2023, the rate of tax imposed in this | 6 | | paragraph shall be 39.2 cents per gallon. On January 1, 2023, | 7 | | the rate of tax imposed in this paragraph shall be increased by | 8 | | an amount equal to the percentage increase, if any, in the | 9 | | Consumer Price Index for All Urban Consumers for all items | 10 | | published by the United States Department of Labor for the 12 | 11 | | months ending in September of 2022. On July 1, 2023, and on | 12 | | July 1 of each subsequent year, the rate of tax imposed in this | 13 | | paragraph shall be increased by an amount equal to the | 14 | | percentage increase, if any, in the Consumer Price Index for | 15 | | All Urban Consumers for all items published by the United | 16 | | States Department of Labor for the 12 months ending in March of | 17 | | the year in which the increase takes place. The rate shall be | 18 | | rounded to the nearest one-tenth of one cent.
| 19 | | (a-5) Beginning on July 1, 2022 and through December 31, | 20 | | 2022, each retailer of motor fuel shall cause the following | 21 | | notice to be posted in a prominently visible place on each | 22 | | retail dispensing device that is used to dispense motor fuel | 23 | | in the State of Illinois: "As of July 1, 2022, the State of | 24 | | Illinois has suspended the inflation adjustment to the motor | 25 | | fuel tax through December 31, 2022. The price on this pump | 26 | | should reflect the suspension of the tax increase." The notice |
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| 1 | | shall be printed in bold print on a sign that is no smaller | 2 | | than 4 inches by 8 inches. The sign shall be clearly visible to | 3 | | customers. Any retailer who fails to post or maintain a | 4 | | required sign through December 31, 2022 is guilty of a petty | 5 | | offense for which the fine shall be $500 per day per each | 6 | | retail premises where a violation occurs. | 7 | | (b) Until July 1, 2019, the tax on the privilege of | 8 | | operating motor vehicles which use diesel
fuel, liquefied | 9 | | natural gas, or propane shall be the rate according to | 10 | | paragraph (a) plus an additional 2 1/2
cents per gallon. | 11 | | Beginning July 1, 2019, the tax on the privilege of operating | 12 | | motor vehicles which use diesel fuel, liquefied natural gas, | 13 | | or propane shall be the rate according to subsection (a) plus | 14 | | an additional 7.5 cents per gallon. "Diesel fuel" is defined | 15 | | as any product
intended
for use or offered for sale as a fuel | 16 | | for engines in which the fuel is injected
into the combustion | 17 | | chamber and ignited by pressure without electric spark.
| 18 | | (c) A tax is imposed upon the privilege of engaging in the | 19 | | business of
selling motor fuel as a retailer or reseller on all | 20 | | motor fuel used in motor
vehicles operating on the public | 21 | | highways and recreational type watercraft
operating upon the | 22 | | waters of this State: (1) at the rate of 3 cents per gallon
on | 23 | | motor fuel owned or possessed by such retailer or reseller at | 24 | | 12:01 a.m. on
August 1, 1989; and (2) at the rate of 3 cents | 25 | | per gallon on motor fuel owned
or possessed by such retailer or | 26 | | reseller at 12:01 A.M. on January 1, 1990.
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| 1 | | Retailers and resellers who are subject to this additional | 2 | | tax shall be
required to inventory such motor fuel and pay this | 3 | | additional tax in a
manner prescribed by the Department of | 4 | | Revenue.
| 5 | | The tax imposed in this paragraph (c) shall be in addition | 6 | | to all other
taxes imposed by the State of Illinois or any unit | 7 | | of local government in this
State.
| 8 | | (d) Except as provided in Section 2a, the collection of a | 9 | | tax based on
gallonage of gasoline used for the propulsion of | 10 | | any aircraft is prohibited
on and after October 1, 1979, and | 11 | | the collection of a tax based on gallonage of special fuel used | 12 | | for the propulsion of any aircraft is prohibited on and after | 13 | | December 1, 2019.
| 14 | | (d-5) On and after July 1, 2023, marine fuel, as defined in | 15 | | Section 1.30, is exempt from the tax imposed under this Act. | 16 | | (e) The collection of a tax, based on gallonage of all | 17 | | products commonly or
commercially known or sold as 1-K | 18 | | kerosene, regardless of its classification
or uses, is | 19 | | prohibited (i) on and after July 1, 1992 until December 31, | 20 | | 1999,
except when the 1-K kerosene is either: (1) delivered | 21 | | into bulk storage
facilities of a bulk user, or (2) delivered | 22 | | directly into the fuel supply tanks
of motor vehicles and (ii) | 23 | | on and after January 1, 2000. Beginning on January
1, 2000, the | 24 | | collection of a tax, based on gallonage of all products | 25 | | commonly
or commercially known or sold as 1-K kerosene, | 26 | | regardless of its classification
or uses, is prohibited except |
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| 1 | | when the 1-K kerosene is delivered directly into
a storage | 2 | | tank that is located at a facility that has withdrawal | 3 | | facilities
that are readily accessible to and are capable of | 4 | | dispensing 1-K kerosene into
the fuel supply tanks of motor | 5 | | vehicles. For purposes of this subsection (e), a facility is | 6 | | considered to have withdrawal facilities that are not "readily | 7 | | accessible to and capable of dispensing 1-K kerosene into the | 8 | | fuel supply tanks of motor vehicles" only if the 1-K kerosene | 9 | | is delivered from: (i) a dispenser hose that is short enough so | 10 | | that it will not reach the fuel supply tank of a motor vehicle | 11 | | or (ii) a dispenser that is enclosed by a fence or other | 12 | | physical barrier so that a vehicle cannot pull alongside the | 13 | | dispenser to permit fueling.
| 14 | | Any person who sells or uses 1-K kerosene for use in motor | 15 | | vehicles upon
which the tax imposed by this Law has not been | 16 | | paid shall be liable for any
tax due on the sales or use of 1-K | 17 | | kerosene.
| 18 | | (Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19; | 19 | | 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.
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