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92nd General Assembly

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Public Act 92-0030

SB539 Enrolled                                LRB9204505SMdvA

    AN ACT regarding taxes.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section 5.  The Motor Fuel Tax Law is amended by changing
Sections  2b,  4e, 5a, 6a, 8, 13, 13a.6, and 15 and by adding
Sections 1.27, 1.28, and 1.29 as follows:

    (35 ILCS 505/1.27 new)
    Sec. 1.27. "Power take-off equipment" means any accessory
that is mounted onto or designed as an  integral  part  of  a
transmission  of  a  motor  vehicle  that  is  registered for
highway purposes whereby the accessory  allows  power  to  be
transferred  outside the transmission to a shaft or driveline
and the power is used for a purpose other than propelling the
motor vehicle.

    (35 ILCS 505/1.28 new)
    Sec. 1.28.  "Semitrailer"  means  every  vehicle  without
motive  power,  other  than  a  pole  trailer,   designed for
carrying persons or property and for being drawn by  a  motor
vehicle  and  so constructed that some part of its weight and
that of its load rests upon or is carried by another vehicle.

    (35 ILCS 505/1.29 new)
    Sec. 1.29.  "Research and development"  means  basic  and
applied  research in the engineering, designing, development,
or testing of prototypes  or  new  products.   "Research  and
development"  does not include manufacturing quality control,
any product testing  by  consumers,  market  research,  sales
promotion,   sales   service,   or   other  non-technological
activities or technical services.
    (35 ILCS 505/2b) (from Ch. 120, par. 418b)
    Sec. 2b.  In addition to the tax collection and reporting
responsibilities imposed elsewhere in this Act, a person  who
is  required to pay the tax imposed by Section 2a of this Act
shall pay the tax to the Department  by  return  showing  all
fuel purchased, acquired or received and sold, distributed or
used  during the preceding calendar month including losses of
fuel as  the  result  of  evaporation  or  shrinkage  due  to
temperature variations, and such other reasonable information
as  the  Department may require. Losses of fuel as the result
of evaporation or shrinkage due to temperature variations may
not exceed 1% one percent of the total gallons in storage  at
the  beginning  of  the month, plus the receipts of gallonage
during the month, minus the gallonage remaining in storage at
the end of the month.  Any loss reported that is in excess of
this amount shall be subject to the tax imposed by Section 2a
of this Law. On and after July  1,  2001,  for  each  6-month
period  January  through  June,  net losses of fuel (for each
category of fuel that is required to be reported on a return)
as the result of evaporation or shrinkage due to  temperature
variations  may not exceed 1% of the total gallons in storage
at the beginning  of  each  January,  plus  the  receipts  of
gallonage  each  January  through  June,  minus the gallonage
remaining in storage at the end of each June.  On  and  after
July  1, 2001, for each 6-month period July through December,
net losses of  fuel  (for  each  category  of  fuel  that  is
required  to  be  reported  on  a  return)  as  the result of
evaporation or shrinkage due to  temperature  variations  may
not  exceed  1%  of  the  total  gallons  in  storage  at the
beginning of each July, plus the receipts of  gallonage  each
July  through  December,  minus  the  gallonage  remaining in
storage at the end of each December.  Any net  loss  reported
that  is in excess of this amount shall be subject to the tax
imposed by Section 2a of this  Law.   For  purposes  of  this
Section,  "net  loss"  means  the  number  of  gallons gained
through temperature variations minus the  number  of  gallons
lost  through  temperature variations or evaporation for each
of the respective 6-month periods.
    The return shall be  prescribed  by  the  Department  and
shall be filed between the 1st and 20th days of each calendar
month.   The  Department  may, in its discretion, combine the
returns filed under this Section, Section 5, and  Section  5a
of  this  Act.  The return must be accompanied by appropriate
computer-generated magnetic media supporting schedule data in
the format required by the Department, unless, as provided by
rule, the Department grants an exception upon petition  of  a
taxpayer.   If  the  return is filed timely, the seller shall
take a discount of 2%  which  is  allowed  to  reimburse  the
seller   for   the  expenses  incurred  in  keeping  records,
preparing and filing returns, collecting  and  remitting  the
tax  and  supplying data to the Department on request. The 2%
discount, however, shall be applicable only to the amount  of
payment  which  accompanies  a return that is filed timely in
accordance with this Section.
(Source: P.A. 91-173, eff. 1-1-00.)

    (35 ILCS 505/4e)
    Sec. 4e. A legible and conspicuous notice  stating  "Dyed
Diesel  Fuel,  Non-taxable Use Only, Penalty For Taxable Use"
must appear on all shipping  papers,  bills  of  lading,  and
invoices accompanying any sale of dyed diesel fuel.
(Source: P.A. 91-173, eff. 1-1-00.)

    (35 ILCS 505/5) (from Ch. 120, par. 421)
    Sec. 5.  Except as hereinafter provided, a person holding
a  valid  unrevoked  license to act as a distributor of motor
fuel shall, between the 1st and 20th days  of  each  calendar
month,  make  return  to  the Department, showing an itemized
statement of the number of invoiced gallons of motor fuel  of
the  types  specified  in  this Section which were purchased,
acquired or received during the preceding calendar month; the
amount of such  motor  fuel  produced,  refined,  compounded,
manufactured,  blended,  sold,  distributed,  and used by the
licensed distributor during the preceding calendar month; the
amount of such  motor  fuel  lost  or  destroyed  during  the
preceding  calendar  month; and the amount of such motor fuel
on hand at the close of business for  such  month;  and  such
other  reasonable  information as the Department may require.
If a distributor's only activities with respect to motor fuel
are either: (1) production of alcohol in quantities  of  less
than 10,000 proof gallons per year or (2) blending alcohol in
quantities  of  less than 10,000 proof gallons per year which
such distributor has produced, he shall file  returns  on  an
annual  basis  with  the return for a given year being due by
January 20 of the following year.  Distributors  whose  total
production of alcohol (whether blended or not) exceeds 10,000
proof  gallons  per  year,  based  on  production  during the
preceding (calendar) year or as reasonably projected  by  the
Department if one calendar year's record of production cannot
be  established,  shall file returns between the 1st and 20th
days of each calendar month as hereinabove provided.
    The types of motor fuel  referred  to  in  the  preceding
paragraph  are:  (A)  All  products  commonly or commercially
known  or  sold  as  gasoline  (including   casing-head   and
absorption  or  natural  gasoline),  gasohol, motor benzol or
motor benzene regardless of their classification or uses; and
(B) all combustible gases which exist in a gaseous  state  at
60  degrees  Fahrenheit  and  at  14.7 pounds per square inch
absolute including, but not limited to,  liquefied  petroleum
gases  used  for highway purposes; and (C) special fuel. Only
those quantities of combustible  gases  (example  (B)  above)
which  are  used  or  sold  by  the distributor to be used to
propel motor vehicles on the public highways,  or  which  are
delivered into the bulk storage facilities of a bulk user, or
which  are delivered into a storage tank that is located at a
facility that has withdrawal  facilities  which  are  readily
accessible to and are capable of dispensing combustible gases
into  the  fuel  supply  tanks  of  motor  vehicles, shall be
subject to return.  For the purposes of this  Act,  liquefied
petroleum  gases shall mean and include any material having a
vapor pressure not  exceeding  that  allowed  for  commercial
propane composed predominantly of the following hydrocarbons,
either  by  themselves  or  as mixtures:  Propane, Propylene,
Butane (normal butane or iso-butane) and Butylene  (including
isomers).
    In case of a sale of special fuel to someone other than a
licensed distributor, or a licensed supplier, for a use other
than  in  motor  vehicles,  the distributor shall show in his
return the amount of invoiced gallons sold and the  name  and
address of the purchaser in addition to any other information
the Department may require.
    All  special  fuel  sold or used for non-highway purposes
must have a dye added in accordance with Section 4d  of  this
Law.
    In  case of a tax-free sale, as provided in Section 6, of
motor fuel which the distributor is required by this  Section
to  include  in his return to the Department, the distributor
in his return shall show: (1) If the sale is made to  another
licensed  distributor  the  amount sold and the name, address
and license number of the purchasing distributor; (2) if  the
sale  is  made  to a person where delivery is made outside of
this State the name and address of  such  purchaser  and  the
point   of   delivery  together  with  the  date  and  amount
delivered; (3) if the sale is made to the Federal  Government
or  its instrumentalities the amount sold; (4) if the sale is
made to a municipal corporation owning and operating a  local
transportation  system  for  public service in this State the
name and address of such purchaser, and the amount  sold,  as
evidenced   by   official  forms  of  exemption  certificates
properly executed and furnished by such purchaser; (5) if the
sale is made to a privately owned public utility  owning  and
operating  2-axle vehicles designed and used for transporting
more than 7 passengers, which vehicles  are  used  as  common
carriers  in  general  transportation  of passengers, are not
devoted to any specialized purpose and are operated  entirely
within  the territorial limits of a single municipality or of
any group of contiguous municipalities or in a  close  radius
thereof,  and  the  operations  of  which  are subject to the
regulations of the Illinois  Commerce  Commission,  then  the
name  and  address  of  such purchaser and the amount sold as
evidenced  by  official  forms  of   exemption   certificates
properly  executed and furnished by the purchaser; (6) if the
product sold is special fuel and if the sale  is  made  to  a
licensed supplier under conditions which qualify the sale for
tax  exemption  under  Section 6 of this Act, the amount sold
and the name, address and license number  of  the  purchaser;
and  (7)  if  a sale of special fuel is made to someone other
than a licensed distributor, or a licensed  supplier,  for  a
use  other  than  in  motor  vehicles,  by  making a specific
notation thereof on the invoice or sales slip  covering  such
sales  and  obtaining such supporting documentation as may be
required by the Department.
    All special fuel sold or used  for  non-highway  purposes
must  have  a dye added in accordance with Section 4d of this
Law.
    A person whose license to act as a distributor  of  motor
fuel  has  been revoked shall make a return to the Department
covering the period from the date of the last return  to  the
date  of the revocation of the license, which return shall be
delivered to the Department not later than 10 days  from  the
date  of the revocation or termination of the license of such
distributor; the  return  shall  in  all  other  respects  be
subject  to  the same provisions and conditions as returns by
distributors licensed under the provisions of this Act.
    The records, waybills and supporting  documents  kept  by
railroads  and other common carriers in the regular course of
business shall be prima facie evidence of  the  contents  and
receipt  of  cars or tanks covered by those records, waybills
or supporting documents.
    If the Department has reason to believe and does  believe
that  the  amount shown on the return as purchased, acquired,
received, sold, used, lost or destroyed is incorrect, or that
an amount of motor fuel of the types required by  the  second
paragraph  of  this  Section to be reported to the Department
has not been correctly reported the Department shall  fix  an
amount  for  such  receipt,  sales,  use, loss or destruction
according to its best judgment and information, which  amount
so fixed by the Department shall be prima facie correct.  All
returns  shall be made on forms prepared and furnished by the
Department, and shall contain such other information  as  the
Department   may  reasonably  require.  The  return  must  be
accompanied by appropriate computer-generated magnetic  media
supporting  schedule  data  in  the  format  required  by the
Department, unless, as  provided   by  rule,  the  Department
grants an exception upon petition of a taxpayer. All licensed
distributors  shall report all losses of motor fuel sustained
on account of fire, theft, spillage,  spoilage,  leakage,  or
any  other  provable  cause  when  filing  the return for the
period during which the loss occurred. The mere making of the
report does not  assure  the  allowance  of  the  loss  as  a
reduction  in  tax  liability.    Losses of motor fuel as the
result  of  evaporation  or  shrinkage  due  to   temperature
variations may not exceed 1% one percent of the total gallons
in  storage  at the beginning of the month, plus the receipts
of gallonage during the month, minus the gallonage  remaining
in  storage  at the end of the month.  Any loss reported that
is in excess of 1% one percent shall be subject  to  the  tax
imposed by Section 2  of this Law. On and after July 1, 2001,
for  each  6-month period January through June, net losses of
motor fuel (for each category of motor fuel that is  required
to  be  reported on a return) as the result of evaporation or
shrinkage due to temperature variations may not exceed 1%  of
the  total  gallons  in  storage  at  the  beginning  of each
January, plus the receipts of gallonage each January  through
June,  minus the gallonage remaining in storage at the end of
each June.  On and after  July  1,  2001,  for  each  6-month
period  July  through December, net losses of motor fuel (for
each category of motor fuel that is required to  be  reported
on a return) as the result of evaporation or shrinkage due to
temperature variations may not exceed 1% of the total gallons
in  storage  at the beginning of each July, plus the receipts
of gallonage each July through December, minus the  gallonage
remaining  in  storage  at the end of each December.  Any net
loss reported that is in  excess  of  this  amount  shall  be
subject  to  the  tax  imposed by Section 2 of this Law.  For
purposes of this Section, "net  loss"  means  the  number  of
gallons  gained  through  temperature  variations  minus  the
number  of  gallons  lost  through  temperature variations or
evaporation for each of the respective 6-month periods.
(Source: P.A. 91-173, eff. 1-1-00.)

    (35 ILCS 505/5a) (from Ch. 120, par. 421a)
    Sec. 5a.  A person holding a valid unrevoked  license  to
act  as a supplier of special fuel shall, between the 1st and
20th  days  of  each  calendar  month,  make  return  to  the
Department showing an itemized statement  of  the  number  of
invoiced   gallons   of   special  fuel  acquired,  received,
purchased, sold, or used during the preceding calendar month;
the amount of special fuel sold, distributed, and used by the
licensed supplier during the preceding  calendar  month;  the
amount of special fuel lost or destroyed during the preceding
calendar month; and the amount of special fuel on hand at the
close  of business for the preceding calendar month; and such
other reasonable information as the Department may require.
    A person whose license to act as a  supplier  of  special
fuel  has  been revoked shall make a return to the Department
covering the period from the date of the last return  to  the
date  of the revocation of the license, which return shall be
delivered to the Department not later than 10 days  from  the
date  of the revocation or termination of the license of such
supplier.  The return shall in all other respects be  subject
to the same provisions and conditions as returns by suppliers
licensed under this Act.
    The  records,  waybills  and supporting documents kept by
railroads and other common carriers in the regular course  of
business  shall  be  prima facie evidence of the contents and
receipt of cars or tanks covered by those  records,  waybills
or supporting documents.
    If  the Department has reason to believe and does believe
that the amount shown on the return as  purchased,  acquired,
received, sold, used, or lost is incorrect, or that an amount
of  special fuel of the type required by the 1st paragraph of
this Section to be reported to the  Department  by  suppliers
has not been correctly reported as a purchase, receipt, sale,
use,  or  loss  the  Department  shall fix an amount for such
purchase, receipt, sale, use, or loss according to  its  best
judgment  and  information,  which  amount  so  fixed  by the
Department  shall  be  prima  facie  correct.  All   licensed
suppliers  shall  report all losses of special fuel sustained
on account of fire, theft, spillage,  spoilage,  leakage,  or
any  other  provable  cause  when  filing  the return for the
period during which the loss occurred.  The  mere  making  of
the  report  does  not  assure the allowance of the loss as a
reduction in tax liability. Losses of  special  fuel  as  the
result   of  evaporation  or  shrinkage  due  to  temperature
variations may not exceed 1% one percent of the total gallons
in storage at the beginning of the month, plus  the  receipts
of  gallonage during the month, minus the gallonage remaining
in storage at the end of the month.
    Any loss reported that is in excess  of  1%  one  percent
shall be subject to the tax imposed by Section 2 of this Law.
On  and  after  July 1, 2001, for each 6-month period January
through June, net losses of special fuel (for  each  category
of  special fuel that is required to be reported on a return)
as the result of evaporation or shrinkage due to  temperature
variations  may not exceed 1% of the total gallons in storage
at the beginning  of  each  January,  plus  the  receipts  of
gallonage  each  January  through  June,  minus the gallonage
remaining in storage at the end of each June.  On  and  after
July  1, 2001, for each 6-month period July through December,
net losses of special fuel (for each category of special fuel
that is required to be reported on a return) as the result of
evaporation or shrinkage due to  temperature  variations  may
not  exceed  1%  of  the  total  gallons  in  storage  at the
beginning of each July, plus the receipts of  gallonage  each
July  through  December,  minus  the  gallonage  remaining in
storage at the end of each December. Any  net  loss  reported
that  is in excess of this amount shall be subject to the tax
imposed by Section 2 of  this  Law.   For  purposes  of  this
Section,  "net  loss"  means  the  number  of  gallons gained
through temperature variations minus the  number  of  gallons
lost  through  temperature variations or evaporation for each
of the respective 6-month periods.
    In case of a sale of special fuel to someone other than a
licensed distributor or licensed supplier  for  a  use  other
than in motor vehicles, the supplier shall show in his return
the  amount of invoiced gallons sold and the name and address
of the purchaser in addition to  any  other  information  the
Department may require.
    All  special  fuel  sold or used for non-highway purposes
must have a dye added in accordance with Section 4d  of  this
Law.
    All returns shall be made on forms prepared and furnished
by the Department and shall contain such other information as
the  Department  may  reasonably  require. The return must be
accompanied by appropriate computer-generated magnetic  media
supporting  schedule  data  in  the  format  required  by the
Department, unless,  as  provided  by  rule,  the  Department
grants an exception upon petition of a taxpayer.
    In case of a tax-free sale, as provided in Section 6a, of
special  fuel  which the supplier is required by this Section
to include in his return to the Department, the  supplier  in
his  return  shall  show:  (1) If the sale of special fuel is
made to the Federal Government or its instrumentalities;  (2)
if   the  sale  of  special  fuel  is  made  to  a  municipal
corporation  owning  and  operating  a  local  transportation
system for public service in this State, the name and address
of such purchaser  and  the  amount  sold,  as  evidenced  by
official  forms  of  exemption certificates properly executed
and furnished by such purchaser; (3) if the sale  of  special
fuel  is  made to a privately owned public utility owning and
operating 2-axle vehicles designed and used for  transporting
more  than  7  passengers,  which vehicles are used as common
carriers in general transportation  of  passengers,  are  not
devoted  to any specialized purpose and are operated entirely
within the territorial limits of a single municipality or  of
any  group  of contiguous municipalities or in a close radius
thereof, and the operations  of  which  are  subject  to  the
regulations  of  the  Illinois  Commerce Commission, then the
name and address of such purchaser and the  amount  sold,  as
evidenced   by   official  forms  of  exemption  certificates
properly executed and furnished by such purchaser; (4) if the
product sold is special fuel and if the sale  is  made  to  a
licensed   supplier   or  to  a  licensed  distributor  under
conditions which qualify the sale  for  tax  exemption  under
Section 6a of this Act, the amount sold and the name, address
and  license  number  of  such  purchaser;  (5)  if a sale of
special fuel is made to  a  person  where  delivery  is  made
outside of this State, the name and address of such purchaser
and  the  point of delivery together with the date and amount
of invoiced gallons delivered; and (6) if a sale  of  special
fuel  is made to someone other than a licensed distributor or
a licensed supplier, for a use other than in motor  vehicles,
by making a specific notation thereof on the invoice or sales
slip   covering  that  sale  and  obtaining  such  supporting
documentation as may be required by the Department.
    All special fuel sold or used  for  non-highway  purposes
must  have  a dye added in accordance with Section 4d of this
Law.
(Source: P.A. 91-173, eff. 1-1-00.)

    (35 ILCS 505/6a) (from Ch. 120, par. 422a)
    Sec. 6a. Collection of tax; suppliers. A supplier,  other
than  a  licensed  distributor,  who sells or distributes any
special fuel, which he is required by Section 5a to report to
the  Department  when  filing  a  return,  shall  (except  as
hereinafter provided) collect at the time of  such  sale  and
distribution, the amount of tax imposed under this Act on all
such  special  fuel  sold and distributed, and at the time of
making a return, the supplier shall pay to the Department the
amount so collected less a discount of 2%  which  is  allowed
to  reimburse  the  supplier  for  the  expenses  incurred in
keeping records, preparing and filing returns, collecting and
remitting the tax and supplying data  to  the  Department  on
request,   and  shall  also  pay  to the Department an amount
equal to the amount that would be collectible as a tax in the
event of a sale thereof on all such special fuel used by said
supplier during the period covered by the  return.   However,
no payment  shall be made based upon dyed diesel fuel used by
said supplier for non-highway purposes. The 2% discount shall
only  be  applicable  to  the  amount  of  tax  payment which
accompanies a return which is filed timely in accordance with
Section 5(a) of this Act.  In each subsequent sale of special
fuel on which the amount of tax imposed under  this  Act  has
been  collected  as  provided  in this Section, the amount so
collected shall be added to the selling price,  so  that  the
amount  of  tax is paid ultimately by the user of the special
fuel.  However, no collection or payment shall be made in the
case of the sale or use of any special fuel  to the extent to
which such sale or use of  motor  fuel  may  not,  under  the
Constitution  and  statutes of the United States, be made the
subject of taxation by this State.
    A person whose license to act as supplier of special fuel
has been revoked shall, at the time of making a return,  also
pay  to  the  Department  an  amount equal to the amount that
would be collectible as a tax in the event of a sale  thereof
on  all  special  fuel,  which  he  is  required  by  the 1st
paragraph of Section 5a to report to the Department in making
a return.
    A supplier may make tax-free sales of special fuel,  with
respect to which he is otherwise required to collect the tax,
when  the  motor fuel is delivered from a dispensing facility
that has withdrawal facilities capable of dispensing  special
fuel  into  the  fuel  supply tanks of motor vehicles only as
specified in the following items 1, 2, and 3.  A supplier may
make tax-free sales of special fuel, with respect to which he
is otherwise required to collect the tax,  when  the  special
fuel  is delivered from other facilities only as specified in
the following items 1 through 7.
         1.  When the sale is made to the federal  government
    or its instrumentalities.
         2.  When the sale is made to a municipal corporation
    owning  and  operating  a local transportation system for
    public service in this State when an official certificate
    of exemption is obtained in lieu of the tax.
         3.  When the sale  is  made  to  a  privately  owned
    public  utility  owning  and  operating  2  axle vehicles
    designed  and  used  for   transporting   more   than   7
    passengers, which vehicles are used as common carriers in
    general  transportation of passengers, are not devoted to
    any specialized purpose and are operated entirely  within
    the territorial limits of a single municipality or of any
    group  of contiguous municipalities, or in a close radius
    thereof, and the operations of which are subject  to  the
    regulations  of the Illinois Commerce Commission, when an
    official certificate of exemption is obtained in lieu  of
    the tax.
         4.  When  a sale of special fuel is made to a person
    holding a valid unrevoked license  as  a  supplier  or  a
    distributor  by  making  a  specific  notation thereof on
    invoice or sales slip covering each such sale.
         5.  When a sale of special fuel is made  to  someone
    other  than a licensed distributor or, licensed supplier,
    or licensed bulk user for  a  use  other  than  in  motor
    vehicles,  by  making  a specific notation thereof on the
    invoice or sales slip covering such  sale  and  obtaining
    such  supporting  documentation as may be required by the
    Department.  The  supplier  shall  obtain  and  keep  the
    supporting documentation in such form as  the  Department
    may require by rule.
         6.  (Blank).
         7.  When  a sale of special fuel is made to a person
    where delivery is made outside of this State.
    All special fuel sold or used  for  non-highway  purposes
must  have  a dye added in accordance with Section 4d of this
Law.
    All suits or other proceedings brought for the purpose of
recovering any taxes, interest or penalties due the State  of
Illinois  under this Act may be maintained in the name of the
Department.
(Source: P.A. 91-173, eff. 1-1-00.)

    (35 ILCS 505/8) (from Ch. 120, par. 424)
    Sec. 8.  Except  as  provided  in  Section  Sections  8a,
subdivision  (h)(1)  of  Section  12a, Section and 13a.6, and
items 13, 14, 15, and 16 of Section 15, all money received by
the Department under this Act, including payments made to the
Department  by  member  jurisdictions  participating  in  the
International Fuel Tax Agreement, shall  be  deposited  in  a
special fund in the State treasury, to be known as the "Motor
Fuel Tax Fund", and shall be used as follows:
    (a)  2  1/2  cents  per  gallon  of  the tax collected on
special fuel under paragraph (b) of Section 2 and Section 13a
of this Act shall be transferred to  the  State  Construction
Account Fund in the State Treasury;
    (b)  $420,000  shall  be  transferred  each  month to the
State Boating Act Fund  to  be  used  by  the  Department  of
Natural  Resources for the purposes specified in Article X of
the Boat Registration and Safety Act;
    (c)  $2,250,000 shall be transferred each  month  to  the
Grade  Crossing  Protection  Fund  to be used as follows: not
less than $6,000,000 each fiscal year shall be used  for  the
construction   or   reconstruction   of  rail  highway  grade
separation structures; beginning with fiscal  year  1997  and
ending in fiscal year 2000, $1,500,000, beginning with fiscal
year  2001  and  ending  in fiscal year 2003, $2,250,000, and
$750,000 in fiscal year 2004 and each fiscal year  thereafter
shall  be  transferred  to the Transportation Regulatory Fund
and shall be accounted  for  as  part  of  the  rail  carrier
portion  of  such  funds and shall be used to pay the cost of
administration of the Illinois Commerce Commission's railroad
safety program in connection with its duties under subsection
(3) of Section 18c-7401 of the Illinois  Vehicle  Code,  with
the  remainder to be used by the Department of Transportation
upon order of the Illinois Commerce Commission, to  pay  that
part  of the cost apportioned by such Commission to the State
to cover the interest of the public in the use  of  highways,
roads,  streets, or pedestrian walkways in the county highway
system, township  and  district  road  system,  or  municipal
street system as defined in the Illinois Highway Code, as the
same  may  from  time  to  time be amended, for separation of
grades, for installation, construction or  reconstruction  of
crossing protection or reconstruction, alteration, relocation
including construction or improvement of any existing highway
necessary  for access to property or improvement of any grade
crossing including the necessary highway  approaches  thereto
of any railroad across the highway or public road, or for the
installation, construction, reconstruction, or maintenance of
a  pedestrian  walkway over or under a railroad right-of-way,
as provided for in and in accordance with Section 18c-7401 of
the Illinois Vehicle Code.  The Commission  shall  not  order
more  than  $2,000,000  per year in Grade Crossing Protection
Fund moneys for pedestrian walkways.  In entering orders  for
projects   for   which   payments  from  the  Grade  Crossing
Protection Fund will be made, the  Commission  shall  account
for  expenditures  authorized  by the orders on a cash rather
than an accrual basis.  For purposes of this  requirement  an
"accrual basis" assumes that the total cost of the project is
expended  in  the  fiscal year in which the order is entered,
while a "cash basis" allocates the cost of the project  among
fiscal  years as expenditures are actually made.  To meet the
requirements  of  this  subsection,  the  Illinois   Commerce
Commission  shall  develop annual and 5-year project plans of
rail crossing capital improvements that will be paid for with
moneys from the Grade Crossing Protection Fund.   The  annual
project  plan  shall  identify  projects  for  the succeeding
fiscal year  and  the  5-year  project  plan  shall  identify
projects  for  the  5  directly succeeding fiscal years.  The
Commission shall submit the annual and 5-year  project  plans
for  this  Fund to the Governor, the President of the Senate,
the Senate Minority Leader,  the  Speaker  of  the  House  of
Representatives,  and  the  Minority  Leader  of the House of
Representatives on the first Wednesday in April of each year;
    (d)  of the amount remaining after  allocations  provided
for  in  subsections  (a),  (b)  and (c), a sufficient amount
shall be reserved to pay all of the following:
         (1)  the costs  of  the  Department  of  Revenue  in
    administering this Act;
         (2)  the  costs  of the Department of Transportation
    in performing its duties imposed by the Illinois  Highway
    Code  for  supervising  the  use  of motor fuel tax funds
    apportioned  to   municipalities,   counties   and   road
    districts;
         (3)  refunds  provided for in Section 13 of this Act
    and  under  the  terms  of  the  International  Fuel  Tax
    Agreement referenced in Section 14a;
         (4)  from October 1, 1985 until June 30,  1994,  the
    administration  of  the Vehicle Emissions Inspection Law,
    which  amount  shall  be   certified   monthly   by   the
    Environmental  Protection Agency to the State Comptroller
    and  shall  promptly  be   transferred   by   the   State
    Comptroller and Treasurer from the Motor Fuel Tax Fund to
    the  Vehicle  Inspection Fund, and for the period July 1,
    1994 through June 30, 2000, June 30, 2006, one-twelfth of
    $25,000,000 each month, and for the period July  1,  2000
    through  June  30,  2006, one-twelfth of $30,000,000 each
    month, for the administration of  the  Vehicle  Emissions
    Inspection  Law  of  1995, to be transferred by the State
    Comptroller and Treasurer from the Motor  Fuel  Tax  Fund
    into the Vehicle Inspection Fund;
         (5)  amounts  ordered  paid  by the Court of Claims;
    and
         (6)  payment of motor fuel use taxes due  to  member
    jurisdictions  under  the terms of the International Fuel
    Tax  Agreement.   The  Department  shall  certify   these
    amounts to the Comptroller by the 15th day of each month;
    the  Comptroller  shall cause orders to be drawn for such
    amounts, and the Treasurer shall administer those amounts
    on or before the last day of each month;
    (e)  after allocations for  the  purposes  set  forth  in
subsections (a), (b), (c) and (d), the remaining amount shall
be apportioned as follows:
         (1)  Until  January  1,  2000,  58.4%, and beginning
    January 1, 2000, 45.6% shall be deposited as follows:
              (A)  37% into the  State  Construction  Account
         Fund, and
              (B)  63%  into  the  Road  Fund,  $1,250,000 of
         which  shall  be  reserved  each   month   for   the
         Department   of   Transportation   to   be  used  in
         accordance with the  provisions  of  Sections  6-901
         through 6-906 of the Illinois Highway Code;
         (2)  Until  January  1,  2000,  41.6%, and beginning
    January 1,  2000,  54.4%  shall  be  transferred  to  the
    Department   of   Transportation  to  be  distributed  as
    follows:
              (A)  49.10% to the municipalities of the State,
              (B)  16.74% to the counties of the State having
         1,000,000 or more inhabitants,
              (C)  18.27% to the counties of the State having
         less than 1,000,000 inhabitants,
              (D)  15.89% to the road districts of the State.
    As soon as may be after the first day of each  month  the
Department of Transportation shall allot to each municipality
its   share   of   the  amount  apportioned  to  the  several
municipalities which shall be in proportion to the population
of such municipalities as determined by  the  last  preceding
municipal  census  if  conducted by the Federal Government or
Federal census. If territory is annexed to  any  municipality
subsequent  to  the  time  of  the  last preceding census the
corporate authorities of such municipality may cause a census
to be taken of such annexed territory and the  population  so
ascertained   for  such  territory  shall  be  added  to  the
population of the municipality  as  determined  by  the  last
preceding census for the purpose of determining the allotment
for that municipality.  If the population of any municipality
was  not  determined by the last Federal census preceding any
apportionment, the apportionment to such  municipality  shall
be  in accordance with any census taken by such municipality.
Any municipal census used in  accordance  with  this  Section
shall be certified to the Department of Transportation by the
clerk of such municipality, and the accuracy thereof shall be
subject  to  approval  of  the Department which may make such
corrections as it ascertains to be necessary.
    As soon as may be after the first day of each  month  the
Department  of  Transportation shall allot to each county its
share of the amount apportioned to the  several  counties  of
the  State  as herein provided. Each allotment to the several
counties having less than 1,000,000 inhabitants shall  be  in
proportion  to  the  amount  of  motor  vehicle  license fees
received from the residents of such  counties,  respectively,
during  the  preceding  calendar year. The Secretary of State
shall, on or before April 15 of each year,  transmit  to  the
Department  of  Transportation  a  full  and  complete report
showing the amount of motor  vehicle  license  fees  received
from  the  residents of each county, respectively, during the
preceding calendar year.  The  Department  of  Transportation
shall,  each  month, use for allotment purposes the last such
report received from the Secretary of State.
    As soon as may be after the first day of each month,  the
Department  of  Transportation  shall  allot  to  the several
counties their share of the amount apportioned for the use of
road districts.  The allotment shall be apportioned among the
several counties in the State in  the  proportion  which  the
total mileage of township or district roads in the respective
counties  bears  to  the  total  mileage  of all township and
district roads in the State. Funds allotted to the respective
counties for the use  of  road  districts  therein  shall  be
allocated  to the several road districts in the county in the
proportion which  the  total  mileage  of  such  township  or
district  roads in the respective road districts bears to the
total mileage of all such township or district roads  in  the
county.   After  July  1  of any year, no allocation shall be
made for any road district unless it levied a  tax  for  road
and  bridge  purposes  in  an  amount  which will require the
extension of such tax against the  taxable  property  in  any
such  road district at a rate of not less than either .08% of
the value thereof, based upon the  assessment  for  the  year
immediately  prior  to  the year in which such tax was levied
and as equalized by the Department of Revenue or,  in  DuPage
County,  an  amount equal to or greater than $12,000 per mile
of  road  under  the  jurisdiction  of  the  road   district,
whichever is less.  If any road district has levied a special
tax  for  road purposes pursuant to Sections 6-601, 6-602 and
6-603 of the Illinois Highway Code, and such tax  was  levied
in  an  amount which would require extension at a rate of not
less than .08% of the value of the taxable property  thereof,
as equalized or assessed by the Department of Revenue, or, in
DuPage County, an amount equal to or greater than $12,000 per
mile  of  road  under  the jurisdiction of the road district,
whichever is less, such levy  shall,  however,  be  deemed  a
proper  compliance  with  this Section and shall qualify such
road district for an allotment  under  this  Section.   If  a
township  has  transferred  to the road and bridge fund money
which, when added to the amount of any tax levy of  the  road
district  would  be  the  equivalent  of a tax levy requiring
extension at a rate of at least .08%,  or, in DuPage  County,
an  amount  equal to or greater than $12,000 per mile of road
under the jurisdiction of the  road  district,  whichever  is
less,  such  transfer, together with any such tax levy, shall
be deemed a proper compliance with  this  Section  and  shall
qualify  the  road  district  for  an  allotment  under  this
Section.
    In  counties in which a property tax extension limitation
is imposed under the Property Tax Extension  Limitation  Law,
road  districts  may retain their entitlement to a motor fuel
tax allotment if, at the  time  the  property  tax  extension
limitation  was imposed, the road district was levying a road
and bridge tax at a rate sufficient to entitle it to a  motor
fuel   tax  allotment  and  continues  to  levy  the  maximum
allowable amount after the imposition  of  the  property  tax
extension   limitation.    Any   road  district  may  in  all
circumstances retain its entitlement  to  a  motor  fuel  tax
allotment  if  it  levied  a road and bridge tax in an amount
that will require  the  extension  of  the  tax  against  the
taxable  property  in the road district at a rate of not less
than 0.08% of the assessed value of the property, based  upon
the assessment for the year immediately preceding the year in
which  the  tax was levied and as equalized by the Department
of Revenue or, in  DuPage  County,  an  amount  equal  to  or
greater  than $12,000 per mile of road under the jurisdiction
of the road district, whichever is less.
    As used in this Section the term  "road  district"  means
any  road  district,  including  a county unit road district,
provided for by the  Illinois  Highway  Code;  and  the  term
"township  or  district  road" means any road in the township
and district road system as defined in the  Illinois  Highway
Code.  For the purposes of this Section, "road district" also
includes   park  districts,  forest  preserve  districts  and
conservation  districts  organized  under  Illinois  law  and
"township or district road" also includes such roads  as  are
maintained  by  park districts, forest preserve districts and
conservation districts.   The  Department  of  Transportation
shall  determine  the  mileage  of  all township and district
roads for the purposes of making allotments  and  allocations
of motor fuel tax funds for use in road districts.
    Payment  of  motor  fuel tax moneys to municipalities and
counties  shall  be  made  as  soon  as  possible  after  the
allotment is made.  The  treasurer  of  the  municipality  or
county may invest these funds until their use is required and
the  interest earned by these investments shall be limited to
the same uses as the principal funds.
(Source: P.A. 90-110, eff.  7-14-97;  90-655,  eff.  7-30-98;
90-659, eff. 1-1-99; 90-691, eff. 1-1-99; 91-37, eff. 7-1-99;
91-59,  eff.  6-30-99;  91-173,  eff.  1-1-00;  91-357,  eff.
7-29-99;  91-704,  eff.  7-1-00; 91-725, eff. 6-2-00; 91-794,
eff. 6-9-00; revised 6-28-00.)

    (35 ILCS 505/13) (from Ch. 120, par. 429)
    Sec. 13.  Refund of tax paid.  Any person  other  than  a
distributor  or  supplier,  who  loses motor fuel through any
cause or uses motor fuel (upon which he has paid  the  amount
required to be collected under Section 2 of this Act) for any
purpose  other than operating a motor vehicle upon the public
highways or waters, shall be reimbursed and repaid the amount
so paid.
    Any person who purchases motor fuel in Illinois and  uses
that motor fuel in another state and that other state imposes
a  tax  on the use of such motor fuel shall be reimbursed and
repaid the amount of Illinois tax paid  under  Section  2  of
this  Act  on  the  motor  fuel  used  in  such  other state.
Reimbursement and repayment shall be made by  the  Department
upon receipt of adequate proof of taxes paid to another state
and the amount of motor fuel used in that state.
    Claims  for  such  reimbursement  must  be  made  to  the
Department  of  Revenue, duly verified by the claimant (or by
the claimant's legal representative if the claimant has  died
or  become  a  person  under  legal  disability),  upon forms
prescribed by the Department.   The  claim  must  state  such
facts  relating  to the purchase, importation, manufacture or
production  of  the  motor  fuel  by  the  claimant  as   the
Department  may  deem  necessary,  and the time when, and the
circumstances of its loss or the specific purpose  for  which
it  was  used  (as the case may be), together with such other
information as the Department  may  reasonably  require.   No
claim based upon idle time shall be allowed.
    Claims for full reimbursement for taxes paid on or before
December 31, 1999 must be filed not later than one year after
the  date  on  which  the  tax  was paid by the claimant. If,
however, a claim for such reimbursement otherwise meeting the
requirements of this Section is filed more than one year  but
less  than  2  years  after  that date, the claimant shall be
reimbursed at the rate of 80% of the amount to which he would
have been entitled if his claim had been timely filed.
    Claims for full reimbursement for taxes paid on or  after
January  1,  2000  must be filed not later than 2 years after
the date on which the tax was paid by the claimant.
    The  Department  may  make  such  investigation  of   the
correctness  of  the  facts stated in such claims as it deems
necessary.  When the Department has approved any such  claim,
it  shall  pay  to  the  claimant (or to the claimant's legal
representative, as such if the claimant has died or become  a
person  under legal disability) the reimbursement provided in
this Section, out of any moneys appropriated to it  for  that
purpose.
    Any  distributor or supplier who has paid the tax imposed
by Section 2 of this Act upon motor fuel lost or used by such
distributor or supplier for any purpose other than  operating
a motor vehicle upon the public highways or waters may file a
claim  for  credit  or  refund to recover the amount so paid.
Such claims  shall  be  filed  on  forms  prescribed  by  the
Department.   Such  claims  shall  be made to the Department,
duly verified by the claimant (or  by  the  claimant's  legal
representative  if  the  claimant has died or become a person
under  legal  disability),  upon  forms  prescribed  by   the
Department.  The claim shall state such facts relating to the
purchase, importation, manufacture or production of the motor
fuel by the claimant as the Department may deem necessary and
the  time  when  the loss or nontaxable use occurred, and the
circumstances of its loss or the specific purpose  for  which
it  was  used  (as the case may be), together with such other
information as the Department may reasonably require.  Claims
must be filed not later than one year after the date on which
the tax was paid by the claimant.
    The  Department  may  make  such  investigation  of   the
correctness  of  the  facts stated in such claims as it deems
necessary.   When  the  Department  approves  a  claim,   the
Department  shall  issue  a  refund  or  credit memorandum as
requested by the taxpayer, to the distributor or supplier who
made the payment for which the  refund  or  credit  is  being
given  or,  if the distributor or supplier has died or become
incompetent,  to  such  distributor's  or  supplier's   legal
representative,   as   such.    The  amount  of  such  credit
memorandum shall be credited against any tax due or to become
due under this Act from the distributor or supplier who  made
the payment for which credit has been given.
    Any  credit  or refund that is allowed under this Section
shall bear interest at the rate and in the  manner  specified
in the Uniform Penalty and Interest Act.
    In  case  the  distributor  or  supplier requests and the
Department determines that the  claimant  is  entitled  to  a
refund,   such   refund   shall   be   made  only  from  such
appropriation as may be available for  that  purpose.  If  it
appears  unlikely  that  the amount appropriated would permit
everyone having a claim allowed during the period covered  by
such  appropriation  to  elect  to receive a cash refund, the
Department, by rule or  regulation,  shall  provide  for  the
payment  of  refunds  in hardship cases and shall define what
types of cases qualify as hardship cases.
    In any case in which there has been an  erroneous  refund
of  tax payable under this Section, a notice of tax liability
may be issued at any time within 3 years from the  making  of
that refund, or within 5 years from the making of that refund
if  it  appears  that  any  part of the refund was induced by
fraud or the misrepresentation of material fact.  The  amount
of  any proposed assessment set forth by the Department shall
be limited to the amount of the erroneous refund.
    If no  tax  is  due  and  no  proceeding  is  pending  to
determine whether such distributor or supplier is indebted to
the  Department  for tax, the credit memorandum so issued may
be assigned and  set  over  by  the  lawful  holder  thereof,
subject  to  reasonable rules of the Department, to any other
licensed distributor or supplier who is subject to this  Act,
and  the amount thereof applied by the Department against any
tax due or to become due under this Act from such assignee.
    If the payment for which the distributor's or  supplier's
claim  is  filed  is  held  in  the protest fund of the State
Treasury  during  the  pendency  of  the  claim  for   credit
proceedings  pursuant to the order of the court in accordance
with Section 2a of the State  Officers  and  Employees  Money
Disposition  Act and if it is determined by the Department or
by  the  final  order  of  a  reviewing   court   under   the
Administrative  Review  Law  that the claimant is entitled to
all or a part of the credit claimed, the claimant, instead of
receiving a credit  memorandum  from  the  Department,  shall
receive  a  cash refund from the protest fund as provided for
in Section 2a of  the  State  Officers  and  Employees  Money
Disposition Act.
    If  any  person ceases to be licensed as a distributor or
supplier while still  holding  an  unused  credit  memorandum
issued  under  this  Act,  such  person may, at his  election
(instead of assigning the credit  memorandum  to  a  licensed
distributor  or  licensed supplier under this Act), surrender
such unused credit memorandum to the Department and receive a
refund of the amount to which such person is entitled.
    For claims based upon taxes paid on  or  before  December
31, 2000, a no claim based upon the use of undyed diesel fuel
shall  not  be  allowed  except  (i)  if  allowed  under  the
following  paragraph or (ii) for undyed diesel fuel used by a
commercial vehicle,  as  that  term  is  defined  in  Section
1-111.8  of  the Illinois Vehicle Code, for any purpose other
than  operating  the  commercial  vehicle  upon  the   public
highways  and  unlicensed  commercial  vehicles  operating on
private property.  Claims  shall  be  limited  to  commercial
vehicles  that are operated for both highway purposes and any
purposes other than operating such vehicles upon  the  public
highways.
    For  claims  based upon taxes paid on or after January 1,
2000, a claim based upon the use of undyed diesel fuel  shall
not  be  allowed  except  (i)  if allowed under the preceding
paragraph or (ii) for claims for the following:
         (1)  Undyed diesel fuel used (i) in a  manufacturing
    process,  as  defined  in  Section 2-45 of the Retailers'
    Occupation  Tax  Act,  wherein  the  undyed  diesel  fuel
    becomes a component part  of  a  product  or  by-product,
    other  than  fuel  or  motor  fuel,  when the use of dyed
    diesel fuel in that manufacturing process  results  in  a
    product  that  is unsuitable for its intended use or (ii)
    for testing machinery and equipment  in  a  manufacturing
    process,  as  defined  in  Section 2-45 of the Retailers'
    Occupation Tax Act, wherein the testing  takes  place  on
    private property.
         (2)  Undyed  diesel  fuel  used by a manufacturer on
    private property in  the  research  and  development,  as
    defined  in  Section  1.29,  of  machinery  or  equipment
    intended for manufacture.
         (3)  Undyed  diesel  fuel  used  by  a  single  unit
    self-propelled    agricultural    fertilizer   implement,
    designed for on and off road use, equipped with flotation
    tires and specially adapted for the application of  plant
    food materials or agricultural chemicals.
         (4)  Undyed  diesel  fuel used by a commercial motor
    vehicle  for  any  purpose  other  than   operating   the
    commercial   motor  vehicle  upon  the  public  highways.
    Claims shall be limited to commercial motor vehicles that
    are operated for both highway purposes and  any  purposes
    other  than  operating  such  vehicles  upon  the  public
    highways.
         (5)  Undyed  diesel  fuel  used  by  a unit of local
    government in its operation of an airport if  the  undyed
    diesel  fuel  is  used  directly in airport operations on
    airport property.
         (6)  Undyed diesel fuel used by refrigeration  units
    that are permanently mounted to a semitrailer, as defined
    in  Section  1.28  of this Law, wherein the refrigeration
    units have a fuel supply system dedicated solely for  the
    operation of the refrigeration units.
         (7)  Undyed  diesel  fuel  used  by  power  take-off
    equipment as defined in Section 1.27 of this Law.
    Any  person  who has paid the tax imposed by Section 2 of
this Law upon undyed  diesel  fuel  that  is  unintentionally
mixed  with  dyed  diesel  fuel  and who owns or controls the
mixture of undyed diesel fuel and dyed diesel fuel may file a
claim for refund to recover the amount paid.  The  amount  of
undyed  diesel  fuel  unintentionally  mixed  must  equal 500
gallons or more.  Any claim  for  refund  of  unintentionally
mixed  undyed  diesel  fuel  and  dyed  diesel  fuel shall be
supported by documentation showing the date and  location  of
the unintentional mixing, the number of gallons involved, the
disposition   of   the  mixed  diesel  fuel,  and  any  other
information that the Department may reasonably require.   Any
unintentional  mixture  of undyed diesel fuel and dyed diesel
fuel shall be sold or used only for non-highway purposes.
    The Department shall promulgate regulations  establishing
specific  limits on the amount of undyed diesel fuel that may
be claimed for refund.
    For purposes of  claims  for  refund,  "loss"  means  the
reduction of motor fuel resulting from fire, theft, spillage,
spoilage,  leakage, or any other provable cause, but does not
include a reduction resulting from evaporation  or  shrinkage
due to temperature variations.
(Source: P.A. 90-491, eff. 1-1-98; 91-173, eff. 1-1-00.)

    (35 ILCS 505/13a.6) (from Ch. 120, par. 429a6)
    Sec.  13a.6.   In addition to any other penalties imposed
by this Act:
    (a)  If a commercial motor vehicle is found operating  in
Illinois  (i)  without  displaying decals required by Section
13a.4 of this Act, or in lieu thereof  only  for  the  period
specified   on   the   temporary   permit,   a  valid  30-day
International  Fuel  Tax  Agreement  temporary  permit,  (ii)
without carrying a motor fuel use tax license as required  by
Section  13a.4  of  this Act, (iii) without carrying a single
trip permit, when applicable, as provided in Section 13a.5 of
this Act, or (iv) with a revoked motor fuel use tax  license,
the  operator  is  guilty  of  a petty offense and must pay a
minimum of $75. For each subsequent occurrence, the  operator
must pay a minimum of $150.
    When  a  commercial  motor  vehicle is found operating in
Illinois with a revoked  motor  fuel  use  tax  license,  the
vehicle  shall  be  placed  out of service and not allowed to
operate in Illinois until the motor fuel use tax  license  is
reinstated.
    (b)  If  a  commercial  motor  vehicle  is  found  to  be
operating  in  Illinois  without  a  valid motor fuel use tax
license and without properly displaying  decals  required  by
Section  13a.4  or  without  a  valid single trip permit when
required by Section 13a.5 of  this  Act  or  a  valid  30-day
International Fuel Tax Agreement temporary permit, the person
required to obtain a license or permit under Section 13a.4 or
13a.5  of this Law must pay a minimum of $1,000 as a penalty.
For each subsequent occurrence, the person must pay a minimum
of $2,000 as a penalty.
    All  penalties  received  under  this  Section  shall  be
deposited into the Tax Compliance and Administration Fund.
    Improper use of the motor fuel use  tax  license,  single
trip  permit,  or  decals provided for in this Section may be
cause for revocation of the license.
    For  purposes  of  this  Section,  "motor  fuel  use  tax
license" means (i) a motor fuel use tax license issued by the
Department  or  by  any   member   jurisdiction   under   the
International  Fuel  Tax  Agreement,  or  (ii) a valid 30-day
International Fuel Tax Agreement temporary permit.
(Source: P.A. 91-173, eff. 1-1-00.)

    (35 ILCS 505/15) (from Ch. 120, par. 431)
    Sec.  15.   1.  Any  person  who  knowingly  acts  as   a
distributor  of  motor  fuel  or supplier of special fuel, or
receiver of fuel without having a license so to  do,  or  who
knowingly  fails  or  refuses  to  file  a  return  with  the
Department  as  provided in Section 2b, Section 5, or Section
5a of this Act, or who knowingly fails  or  refuses  to  make
payment  to  the Department as provided either in Section 2b,
Section 6, Section 6a, or Section 7 of  this  Act,  shall  be
guilty  of  a  Class  3 felony. Each day any person knowingly
acts as a distributor of  motor  fuel,  supplier  of  special
fuel,  or  receiver of fuel without having a license so to do
or after such a  license  has  been  revoked,  constitutes  a
separate offense.
    2.  Any person who acts as a motor carrier without having
a  valid motor fuel use tax license, issued by the Department
or by a member  jurisdiction  under  the  provisions  of  the
International  Fuel  Tax  Agreement,  or  a valid single trip
permit is guilty of a Class A misdemeanor for a first offense
and is guilty  of  a  Class  4  felony  for  each  subsequent
offense.  Any person (i) who fails or refuses to make payment
to the Department as provided in Section 13a.1 of this Act or
in the International Fuel Tax Agreement referenced in Section
14a, or (ii) who fails  or  refuses  to  make  the  quarterly
return  as  provided  in Section 13a.3 is guilty of a Class 4
felony; and for  each  subsequent  offense,  such  person  is
guilty of a Class 3 felony.
    3.  In   case   such  person  acting  as  a  distributor,
receiver, supplier, or motor carrier is a  corporation,  then
the  officer  or  officers,  agent  or  agents,  employee  or
employees,  of  such  corporation  responsible for any act of
such corporation, or failure  of  such  corporation  to  act,
which  acts  or failure to act constitutes a violation of any
of the provisions of this Act as enumerated in  paragraphs  1
and  2  of  this  Section,  shall be punished by such fine or
imprisonment, or  by  both  such  fine  and  imprisonment  as
provided in those paragraphs.
    3.5.  Any  person  who knowingly enters false information
on any  supporting  documentation  required  to  be  kept  by
Section 6 or 6a of this Act is guilty of a Class 3 felony.
    3.7.  Any  person who knowingly attempts in any manner to
evade or defeat any tax imposed by this Act or the payment of
any tax imposed by this Act is guilty of a Class 2 felony.
    4.  Any person who refuses, upon demand,  to  submit  for
inspection,  books  and  records,  or who fails or refuses to
keep books and records in violation of  Section  12  of  this
Act,  or  any distributor, receiver, or supplier who violates
any reasonable rule or regulation adopted by  the  Department
for  the  enforcement  of  this  Act  is  guilty of a Class A
misdemeanor.  Any person who acts as a blender  in  violation
of Section 3 of this Act or who having transported reportable
motor  fuel  within  Section 7b of this Act fails to make the
return required by that Section,  is  guilty  of  a  Class  4
felony.
    5.  Any  person  licensed  under Section 13a.4, 13a.5, or
the International  Fuel  Tax  Agreement  who:  (a)  fails  or
refuses  to  keep  records  and books, as provided in Section
13a.2 or as required by the terms of the  International  Fuel
Tax  Agreement,  (b) refuses upon demand by the Department to
submit for inspection and examination the records required by
Section  13a.2  of  this  Act  or  by  the   terms   of   the
International  Motor  Fuel Tax Agreement, or (c) violates any
reasonable rule or regulation adopted by the  Department  for
the  enforcement  of  this  Act,  is  guilty  of  a  Class  A
misdemeanor.
    6.  Any  person  who  makes any false return or report to
the Department as to any material fact required  by  Sections
2b,   5,  5a,  7,  13,  or  13a.3  of  this  Act  or  by  the
International Fuel Tax Agreement  is  guilty  of  a  Class  2
felony.
    7.  A  prosecution  for any violation of this Section may
be commenced anytime within 5 years of the commission of that
violation. A prosecution for tax  evasion  as  set  forth  in
paragraph  3.7  of  this  Section  may be prosecuted any time
within  5  years  of  the  commission  of  the  last  act  in
furtherance  of  evasion.  The  running  of  the  period   of
limitations  under  this Section shall be suspended while any
proceeding or appeal from  any  proceeding  relating  to  the
quashing  or  enforcement of any grand jury or administrative
subpoena issued in connection with an  investigation  of  the
violation of any provision of this Act is pending.
    8.  Any  person who provides false documentation required
by any Section of this Act is guilty of a Class 4 felony.
    9.  Any person filing a fraudulent application  or  order
form  under  any provision of this Act is guilty of a Class A
misdemeanor.  For each  subsequent  offense,  the  person  is
guilty of a Class 4 felony.
    10.  Any person who acts as a motor carrier and who fails
to carry a manifest as provided in Section 5.5 is guilty of a
Class  A misdemeanor. For each subsequent offense, the person
is guilty of a Class 4 felony.
    11.  Any person who knowingly sells or attempts  to  sell
dyed  diesel  fuel  for  highway  use  is guilty of a Class 4
felony.  For each subsequent offense, the person is guilty of
a Class 2 felony.
    12. Any person who knowingly possesses dyed  diesel  fuel
for highway use is guilty of a Class A misdemeanor.  For each
subsequent offense, the person is guilty of a Class 4 felony.
    13.  Any  person who sells or transports dyed diesel fuel
without the notice required  by  Section  4e  shall  pay  the
following penalty:
    First occurrence....................................$ 500
    Second and each occurrence thereafter..............$1,000
    14.  Any  person  who  owns,  operates,  or  controls any
container,  storage  tank,  or  facility  used  to  store  or
distribute dyed diesel fuel without the  notice  required  by
Section 4f shall pay the following penalty:
    First occurrence....................................$ 500
    Second and each occurrence thereafter..............$1,000
    15.  If   a   licensed   motor  vehicle  required  to  be
registered for highway purposes is found to have dyed  diesel
fuel  within  the  ordinary  fuel tanks attached to the motor
vehicle, the operator shall pay the following penalty:
    First occurrence...................................$2,500
    Second and each occurrence thereafter..............$5,000
    16.  Any licensed  motor  fuel  distributor  or  licensed
supplier  who  sells or attempts to sell dyed diesel fuel for
highway use shall pay the following penalty:
    First occurrence..................................$ 5,000
    Second and each occurrence thereafter.............$10,000
    17.  Any  person  who  knowingly  sells  or   distributes
transports  dyed  diesel  fuel without the notice required by
Section 4e is guilty of a petty offense.  For each subsequent
offense, the person is guilty of a Class A misdemeanor.
    18.  Any person who knowingly owns, operates, or controls
any container, storage tank, or facility  used  to  store  or
distribute  dyed  diesel  fuel without the notice required by
Section 4f is guilty of a petty offense.  For each subsequent
offense the person is guilty of a Class A misdemeanor.
    For purposes of this Section, dyed diesel fuel means  any
dyed  diesel  fuel whether or not dyed pursuant to Section 4d
of this Law.
    Any person aggrieved by  any  action  of  the  Department
under  item 13, 14, 15, or 16 of this Section may protest the
action by making a written request for a  hearing  within  60
days of the original action.  If the hearing is not requested
in writing within 60 days, the original action is final.
    All  penalties received under items 13, 14, 15, and 16 of
this Section shall be deposited into the Tax  Compliance  and
Administration Fund.
(Source: P.A. 91-173, eff. 1-1-00.)

    Section 10.  The  Environmental Impact Fee Law is amended
by changing Section 315 as follows:

    (415 ILCS 125/315)
    (Section scheduled to be repealed on January 1, 2003)
    Sec.  315.   Fee  on  receivers  of fuel for sale or use;
collection and reporting.  A person that is required  to  pay
the  fee  imposed  by  this  Law  shall  pay  the  fee to the
Department by return showing all fuel purchased, acquired, or
received and sold, distributed or used during  the  preceding
calendar  month,  including  losses  of fuel as the result of
evaporation or shrinkage due to temperature  variations,  and
such  other  reasonable  information  as  the  Department may
require.  Losses of fuel as  the  result  of  evaporation  or
shrinkage due to temperature variations may not exceed 1% one
percent  of  the total gallons in storage at the beginning of
the month, plus the receipts of gallonage during  the  month,
minus  the  gallonage  remaining in storage at the end of the
month.  Any loss reported that is in excess  of  this  amount
shall  be  subject  to the fee imposed by Section 310 of this
Law. On and after July  1,  2001,  for  each  6-month  period
January  through  June, net losses of fuel (for each category
of fuel that is required to be reported on a return)  as  the
result   of  evaporation  or  shrinkage  due  to  temperature
variations may not exceed 1% of the total gallons in  storage
at  the  beginning  of  each  January,  plus  the receipts of
gallonage each January  through  June,  minus  the  gallonage
remaining  in  storage at the end of each June.  On and after
July 1, 2001, for each 6-month period July through  December,
net  losses  of  fuel  (for  each  category  of  fuel that is
required to be  reported  on  a  return)  as  the  result  of
evaporation  or  shrinkage  due to temperature variations may
not exceed  1%  of  the  total  gallons  in  storage  at  the
beginning  of  each July, plus the receipts of gallonage each
July through  December,  minus  the  gallonage  remaining  in
storage  at  the end of each December.  Any net loss reported
that is in excess of this amount shall be subject to the  fee
imposed  by  Section  310  of this Law.  For purposes of this
Section, "net  loss"  means  the  number  of  gallons  gained
through  temperature  variations  minus the number of gallons
lost through temperature variations or evaporation  for  each
of the respective 6-month periods.
    The  return  shall  be  prescribed  by the Department and
shall be filed between the 1st and 20th days of each calendar
month.  The Department may, in its  discretion,  combine  the
return  filed  under  this  Law  with  the return filed under
Section 2b of the Motor Fuel  Tax  Law.   If  the  return  is
timely  filed,  the  receiver  may  take  a discount of 2% to
reimburse  himself  for  the  expenses  incurred  in  keeping
records,  preparing  and  filing  returns,   collecting   and
remitting  the  fee,  and supplying data to the Department on
request.  However, the 2% discount applies only to the amount
of the fee payment that accompanies a return that  is  timely
filed in accordance with this Section.
(Source: P.A. 91-173, eff. 1-1-00.)

    Section  99.  Effective date.  This Act takes effect July
1, 2001.
                            INDEX
           Statutes amended in order of appearance
35 ILCS 505/1.27 new
35 ILCS 505/1.28 new
35 ILCS 505/1.29 new
35 ILCS 505/2b            from Ch. 120, par. 418b
35 ILCS 505/4e
35 ILCS 505/5             from Ch. 120, par. 421
35 ILCS 505/5a            from Ch. 120, par. 421a
35 ILCS 505/6a            from Ch. 120, par. 422a
35 ILCS 505/8             from Ch. 120, par. 424
35 ILCS 505/13            from Ch. 120, par. 429
35 ILCS 505/13a.6         from Ch. 120, par. 429a6
35 ILCS 505/15            from Ch. 120, par. 431
    Passed in the General Assembly May 24, 2001.
    Approved June 28, 2001.

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