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

    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

 

HB2974LRB103 28329 HLH 54708 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,

 

 

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12019 and until July 1, 2020, the rate of tax imposed in this
2paragraph shall be 38 cents per gallon. Beginning July 1, 2020
3and until July 1, 2021, the rate of tax imposed in this
4paragraph shall be 38.7 cents per gallon. Beginning July 1,
52021 and until January 1, 2023, the rate of tax imposed in this
6paragraph shall be 39.2 cents per gallon. On January 1, 2023,
7the rate of tax imposed in this paragraph shall be increased by
8an amount equal to the percentage increase, if any, in the
9Consumer Price Index for All Urban Consumers for all items
10published by the United States Department of Labor for the 12
11months ending in September of 2022. On July 1, 2023, and on
12July 1 of each subsequent year, the rate of tax imposed in this
13paragraph shall be increased by an amount equal to the
14percentage increase, if any, in the Consumer Price Index for
15All Urban Consumers for all items published by the United
16States Department of Labor for the 12 months ending in March of
17the year in which the increase takes place. The rate shall be
18rounded to the nearest one-tenth of one cent.
19    (a-5) Beginning on July 1, 2022 and through December 31,
202022, each retailer of motor fuel shall cause the following
21notice to be posted in a prominently visible place on each
22retail dispensing device that is used to dispense motor fuel
23in the State of Illinois: "As of July 1, 2022, the State of
24Illinois has suspended the inflation adjustment to the motor
25fuel tax through December 31, 2022. The price on this pump
26should reflect the suspension of the tax increase." The notice

 

 

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1shall be printed in bold print on a sign that is no smaller
2than 4 inches by 8 inches. The sign shall be clearly visible to
3customers. Any retailer who fails to post or maintain a
4required sign through December 31, 2022 is guilty of a petty
5offense for which the fine shall be $500 per day per each
6retail premises where a violation occurs.
7    (b) Until July 1, 2019, the tax on the privilege of
8operating motor vehicles which use diesel fuel, liquefied
9natural gas, or propane shall be the rate according to
10paragraph (a) plus an additional 2 1/2 cents per gallon.
11Beginning July 1, 2019, the tax on the privilege of operating
12motor vehicles which use diesel fuel, liquefied natural gas,
13or propane shall be the rate according to subsection (a) plus
14an additional 7.5 cents per gallon. "Diesel fuel" is defined
15as any product intended for use or offered for sale as a fuel
16for engines in which the fuel is injected into the combustion
17chamber and ignited by pressure without electric spark.
18    (c) A tax is imposed upon the privilege of engaging in the
19business of selling motor fuel as a retailer or reseller on all
20motor fuel used in motor vehicles operating on the public
21highways and recreational type watercraft operating upon the
22waters of this State: (1) at the rate of 3 cents per gallon on
23motor fuel owned or possessed by such retailer or reseller at
2412:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
25per gallon on motor fuel owned or possessed by such retailer or
26reseller at 12:01 A.M. on January 1, 1990.

 

 

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1    Retailers and resellers who are subject to this additional
2tax shall be required to inventory such motor fuel and pay this
3additional tax in a manner prescribed by the Department of
4Revenue.
5    The tax imposed in this paragraph (c) shall be in addition
6to all other taxes imposed by the State of Illinois or any unit
7of local government in this State.
8    (d) Except as provided in Section 2a, the collection of a
9tax based on gallonage of gasoline used for the propulsion of
10any aircraft is prohibited on and after October 1, 1979, and
11the collection of a tax based on gallonage of special fuel used
12for the propulsion of any aircraft is prohibited on and after
13December 1, 2019.
14    (d-5) On and after July 1, 2023, marine fuel, as defined in
15Section 1.30, is exempt from the tax imposed under this Act.
16    (e) The collection of a tax, based on gallonage of all
17products commonly or commercially known or sold as 1-K
18kerosene, regardless of its classification or uses, is
19prohibited (i) on and after July 1, 1992 until December 31,
201999, except when the 1-K kerosene is either: (1) delivered
21into bulk storage facilities of a bulk user, or (2) delivered
22directly into the fuel supply tanks of motor vehicles and (ii)
23on and after January 1, 2000. Beginning on January 1, 2000, the
24collection of a tax, based on gallonage of all products
25commonly or commercially known or sold as 1-K kerosene,
26regardless of its classification or uses, is prohibited except

 

 

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1when the 1-K kerosene is delivered directly into a storage
2tank that is located at a facility that has withdrawal
3facilities that are readily accessible to and are capable of
4dispensing 1-K kerosene into the fuel supply tanks of motor
5vehicles. For purposes of this subsection (e), a facility is
6considered to have withdrawal facilities that are not "readily
7accessible to and capable of dispensing 1-K kerosene into the
8fuel supply tanks of motor vehicles" only if the 1-K kerosene
9is delivered from: (i) a dispenser hose that is short enough so
10that it will not reach the fuel supply tank of a motor vehicle
11or (ii) a dispenser that is enclosed by a fence or other
12physical barrier so that a vehicle cannot pull alongside the
13dispenser to permit fueling.
14    Any person who sells or uses 1-K kerosene for use in motor
15vehicles upon which the tax imposed by this Law has not been
16paid shall be liable for any tax due on the sales or use of 1-K
17kerosene.
18(Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19;
19101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.