Bill Text: IL HB1390 | 2025-2026 | 104th General Assembly | Introduced

---

Bill Title: Amends the Motor Fuel Tax Law. Repeals the definition of "supplier" and related provisions in the Motor Fuel Tax Law that establish various requirements for suppliers. Repeals a provision that prohibits a person other than a licensed distributor from acting as a supplier of special fuel within the State. Changes the definitions of "distributor" and "receiver".

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-01-15 - Filed with the Clerk by Rep. Jay Hoffman [HB1390 Detail]

Download: Illinois-2025-HB1390-Introduced.html

---

104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1390 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
35 ILCS 505/1.2 from Ch. 120, par. 417.2
35 ILCS 505/1.20 from Ch. 120, par. 417.20
35 ILCS 505/3d
35 ILCS 505/5 from Ch. 120, par. 421
35 ILCS 505/6 from Ch. 120, par. 422
35 ILCS 505/7 from Ch. 120, par. 423
35 ILCS 505/11.5 from Ch. 120, par. 427a
35 ILCS 505/12 from Ch. 120, par. 428
35 ILCS 505/12a from Ch. 120, par. 428a
35 ILCS 505/13 from Ch. 120, par. 429
35 ILCS 505/14a from Ch. 120, par. 430.1
35 ILCS 505/15 from Ch. 120, par. 431
35 ILCS 505/16 from Ch. 120, par. 432
35 ILCS 505/1.14 rep.
35 ILCS 505/3a rep.
35 ILCS 505/5a rep.
35 ILCS 505/6a rep.
Amends the Motor Fuel Tax Law. Repeals the definition of "supplier" and related provisions in the Motor Fuel Tax Law that establish various requirements for suppliers. Repeals a provision that prohibits a person other than a licensed distributor from acting as a supplier of special fuel within the State. Changes the definitions of "distributor" and "receiver".
LRB104 07494 HLH 17537 b
A BILL FOR
HB1390 LRB104 07494 HLH 17537 b
AN ACT concerning revenue.
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 1.2, 1.20, 3d, 5, 6, 7, 11.5, 12, 12a, 13, 14a, 15,
and 16 as follows:
(35 ILCS 505/1.2) (from Ch. 120, par. 417.2)
Sec. 1.2. Distributor. "Distributor" means a person who
does any of the following: (1) either (i) produces motor fuel
in this State; (2) , refines motor fuel in this State; (3) ,
blends motor fuel in this State; (4) , compounds motor fuel in
this State; (5) or manufactures motor fuel in this State; (6) ,
or (ii) transports motor fuel into this State; (7) , or (iii)
exports motor fuel out of this State; or (8) , or (iv) engages
in the distribution of motor fuel primarily by tank car or tank
truck, or both, and who operates an Illinois bulk plant where
he or she has active bulk storage capacity of not less than
30,000 gallons for gasoline as defined in item (A) of Section 5
of this Law.
"Distributor" does not, however, include a person who
receives or transports into this State and sells or uses motor
fuel under such circumstances as preclude the collection of
the tax herein imposed, by reason of the provisions of the

HB1390 - 2 - LRB104 07494 HLH 17537 b
constitution and statutes of the United States. However, a
person operating a motor vehicle into the State, may transport
motor fuel in the ordinary fuel tank attached to the motor
vehicle for the operation of the motor vehicle, without being
considered a distributor. Any railroad registered under
Section 18c-7201 of the Illinois Vehicle Code may deliver
special fuel directly into the fuel supply tank of a
locomotive owned, operated, or controlled by any other
railroad registered under Section 18c-7201 of the Illinois
Vehicle Code without being considered a distributor or
supplier.
(Source: P.A. 96-1384, eff. 7-29-10.)
(35 ILCS 505/1.20) (from Ch. 120, par. 417.20)
Sec. 1.20. "Receiver" means a person who either produces,
refines, blends, compounds or manufactures fuel in this State,
or transports fuel into this State or receives fuel
transported to him from without the State or exports fuel out
of this State, or who is engaged in distribution of fuel
primarily by tank car or tank truck, or both, and who operates
an Illinois bulk plant where he has active fuel bulk storage
capacity of not less than 30,000 gallons.
(Source: P.A. 86-125; 86-958.)
(35 ILCS 505/3d)
Sec. 3d. Right to blend.

HB1390 - 3 - LRB104 07494 HLH 17537 b
(a) A distributor who is properly licensed and permitted
as a blender pursuant to this Act may blend petroleum-based
diesel fuel with biodiesel and sell the blended or unblended
product on any premises owned and operated by the distributor
for the purpose of supporting or facilitating the retail sale
of motor fuel.
(b) A refiner or distributor supplier of petroleum-based
diesel fuel or biodiesel shall not refuse to sell or transport
to a distributor who is properly licensed and permitted as a
blender pursuant to this Act any petroleum-based diesel fuel
or biodiesel based on the distributor's or dealer's intent to
use that product for blending.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 505/5) (from Ch. 120, par. 421)
Sec. 5. Distributor's monthly return. 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, received, or exported
during the preceding calendar month; the amount of such motor
fuel produced, refined, compounded, manufactured, blended,
sold, distributed, exported, and used by the licensed
distributor during the preceding calendar month; the amount of

HB1390 - 4 - LRB104 07494 HLH 17537 b
such motor fuel lost or destroyed during the preceding
calendar month; 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, not including liquefied natural gas, 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)

HB1390 - 5 - LRB104 07494 HLH 17537 b
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 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. Distributors of liquefied natural gas are not
required to make returns under this Section with respect to
that liquefied natural gas unless (i) the liquefied natural
gas is dispensed into the fuel supply tank of any motor vehicle
or (ii) the liquefied natural gas is 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 liquefied natural gas into the fuel supply tanks of
motor vehicles. For purposes of this Section, a facility is
considered to have withdrawal facilities that are not "readily
accessible to and capable of dispensing combustible gases into
the fuel supply tanks of motor vehicles" only if the
combustible gases or liquefied natural gas are delivered from:
(i) a dispenser hose that is short enough so that it will not
reach the fuel supply tank of a motor vehicle or (ii) a
dispenser that is enclosed by a fence or other physical
barrier so that a vehicle cannot pull alongside the dispenser
to permit fueling. For the purposes of this Act, liquefied
petroleum gases shall mean and include any material having a

HB1390 - 6 - LRB104 07494 HLH 17537 b
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

HB1390 - 7 - LRB104 07494 HLH 17537 b
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 (6) (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

HB1390 - 8 - LRB104 07494 HLH 17537 b
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, exported, 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,
export, 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

HB1390 - 9 - LRB104 07494 HLH 17537 b
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. If the distributor reports
losses due to fire or theft, then the distributor must include
fire department or police department reports and any other
documentation that the Department may require. 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% 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% 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

HB1390 - 10 - LRB104 07494 HLH 17537 b
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.
If any payment provided for in this Section exceeds the
distributor's liabilities under this Act, as shown on an
original return, the Department may authorize the distributor
to credit such excess payment against liability subsequently
to be remitted to the Department under this Act, in accordance
with reasonable rules adopted by the Department. If the
Department subsequently determines that all or any part of the
credit taken was not actually due to the distributor, the
distributor's discount shall be reduced by an amount equal to

HB1390 - 11 - LRB104 07494 HLH 17537 b
the difference between the discount as applied to the credit
taken and that actually due, and that distributor shall be
liable for penalties and interest on such difference.
(Source: P.A. 100-9, eff. 7-1-17; 100-1171, eff. 1-4-19.)
(35 ILCS 505/6) (from Ch. 120, par. 422)
Sec. 6. Collection of tax; distributors. A distributor who
sells or distributes any motor fuel, which he is required by
Section 5 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 motor fuel sold and distributed, and at
the time of making a return, the distributor shall pay to the
Department the amount so collected less a discount of 2%
through June 30, 2003 and 1.75% thereafter which is allowed to
reimburse the distributor 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 motor fuel used by said
distributor during the period covered by the return. However,
no payment shall be made based upon dyed diesel fuel used by
the distributor for non-highway purposes. The discount shall
only be applicable to the amount of tax payment which
accompanies a return which is filed timely in accordance with

HB1390 - 12 - LRB104 07494 HLH 17537 b
Section 5 of this Act. In each subsequent sale of motor 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 motor fuel. However, no
collection or payment shall be made in the case of the sale or
use of any motor 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 a distributor of 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
motor fuel, which he is required by the second paragraph of
Section 5 to report to the Department in making a return, and
which he had on hand on the date on which the license was
revoked, and with respect to which no tax had been previously
paid under this Act.
A distributor may make tax free sales of motor fuel, with
respect to which he is otherwise required to collect the tax,
only as specified in the following items 1 through 7.
1. When the sale is made to a person holding a valid
unrevoked license as a distributor, by making a specific
notation thereof on invoices or sales slip covering each
sale.
2. When the sale is made with delivery to a purchaser

HB1390 - 13 - LRB104 07494 HLH 17537 b
outside of this State.
3. When the sale is made to the Federal Government or
its instrumentalities.
4. 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.
5. 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.
6. (Blank). When a sale of special fuel is made to a
person holding a valid, unrevoked license as a supplier,
by making a specific notation thereof on the invoice or
sales slip covering each such sale.
7. When a sale of dyed diesel fuel is made by the
licensed distributor to the end user of the fuel who is not
a licensed distributor or a licensed supplier for

HB1390 - 14 - LRB104 07494 HLH 17537 b
non-highway purposes and the fuel is (i) delivered from a
vehicle designed for the specific purpose of such sales
and delivered directly into a stationary bulk storage tank
that displays the notice required by Section 4f of this
Act, (ii) delivered from a vehicle designed for the
specific purpose of such sales and delivered directly into
the fuel supply tanks of non-highway vehicles that are not
required to be registered for highway use, or (iii)
dispensed from a dyed diesel fuel dispensing facility that
has withdrawal facilities that are not readily accessible
to and are not capable of dispensing dyed diesel fuel into
the fuel supply tank of a motor vehicle.
A specific notation is required on the invoice or
sales slip covering such sales, and any supporting
documentation that may be required by the Department must
be obtained by the distributor. The distributor shall
obtain and keep the supporting documentation in such form
as the Department may require by rule.
For purposes of this item 7, a dyed diesel fuel
dispensing facility is considered to have withdrawal
facilities that are "not readily accessible to and not
capable of dispensing dyed diesel fuel into the fuel
supply tank of a motor vehicle" only if the dyed diesel
fuel is delivered from: (i) a dispenser hose that is short
enough so that it will not reach the fuel supply tank of a
motor vehicle or (ii) a dispenser that is enclosed by a

HB1390 - 15 - LRB104 07494 HLH 17537 b
fence or other physical barrier so that a vehicle cannot
pull alongside the dispenser to permit fueling.
8. (Blank).
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. 102-1019, eff. 5-27-22.)
(35 ILCS 505/7) (from Ch. 120, par. 423)
Sec. 7. Any person who is , not licensed as a receiver or ,
distributor and who purchases or supplier, purchasing fuel or
motor fuel as to which there has been no charge made to him of
the tax imposed by Section 2 or 2a, or both, shall make payment
of the tax imposed by Section 2a of this Act and if the same be
thereafter used in the operation of a motor vehicle upon the
public highways, make payment of the motor fuel tax computed
at the rate prescribed in Section 2 of this Act on the amount
so used, such payment to be made to the Department not later
than the 20th day of the month succeeding the month in which
the motor fuel was so used.
This Section does not apply in cases of such use of motor
fuel which was obtained tax-free under an official certificate

HB1390 - 16 - LRB104 07494 HLH 17537 b
of exemption mentioned in Sections 6 and 6a of this Act.
(Source: P.A. 86-125.)
(35 ILCS 505/11.5) (from Ch. 120, par. 427a)
Sec. 11.5. In the event that liability upon the bond filed
by a distributor, supplier, or receiver with the Department
shall be discharged or reduced, whether by judgment rendered,
payment made or otherwise, or if in the opinion of the
Department the bond of any distributor, supplier, or receiver
theretofore given shall become unsatisfactory, then the
distributor, supplier, or receiver shall forthwith, upon the
written demand of the Department, file a new bond in the same
manner and form and in an amount and with sureties
satisfactory to the Department, failing which the Department
shall forthwith revoke the license of the distributor,
supplier, or receiver.
If such new bond shall be furnished by the distributor,
supplier, or receiver as above provided, the Department shall
cancel the bond for which such new bond shall be substituted.
Any surety on any bond furnished by any distributor,
supplier, or receiver shall be released and discharged from
any and all liability to the State of Illinois accruing on such
bond after the expiration of 60 days from the date upon which
such surety shall have filed with the Department written
request so to be released and discharged. But such request
shall not operate to relieve, release or discharge such surety

HB1390 - 17 - LRB104 07494 HLH 17537 b
from any liability already accrued, or which shall accrue,
before the expiration of said 60-day period. The Department
shall, promptly on receipt of such request, notify the
distributor, supplier, or receiver and, unless such
distributor, supplier, or receiver shall on or before the
expiration of such 60-day period file with the Department a
new bond with a surety or sureties satisfactory to the
Department in the amount and form hereinbefore provided, the
Department shall forthwith cancel the license of such
distributor, supplier, or receiver. If such new bond shall be
furnished by said distributor, supplier, or receiver as above
provided, the Department shall cancel the bond for which such
new bond shall be substituted.
(Source: P.A. 91-173, eff. 1-1-00.)
(35 ILCS 505/12) (from Ch. 120, par. 428)
Sec. 12. It is the duty of every distributor and ,
receiver, and supplier under this Act to keep within this
State or at some office outside this State for any period for
which the Department is authorized to issue a Notice of Tax
Liability to the distributor or , receiver, or supplier
records and books showing all purchases, receipts, losses
through any cause, sales, distribution and use of motor fuel,
aviation fuels, home heating oils, and kerosene, and products
used for the purpose of blending to produce motor fuel, which
records and books shall, at all times during business hours of

HB1390 - 18 - LRB104 07494 HLH 17537 b
the day, be subject to inspection by the Department, or its
duly authorized agents and employees. For purposes of this
Section, "records" means all data maintained by the taxpayer
including data on paper, microfilm, microfiche or any type of
machine-sensible data compilation. The Department may, in its
discretion, prescribe reasonable and uniform methods for
keeping of records and books by licensees and that set forth
requirements for the form and format of records that must be
maintained in order to comply with any recordkeeping
requirement under this Act.
(Source: P.A. 91-173, eff. 1-1-00.)
(35 ILCS 505/12a) (from Ch. 120, par. 428a)
Sec. 12a. (a) Any duly authorized agent or employee of the
Department shall have authority to enter in or upon the
premises of any manufacturer, vendor, dealer, retailer,
distributor, receiver, supplier or user of motor fuel or
special fuels during the regular business hours in order to
examine books, records, invoices, storage tanks, and any other
applicable equipment pertaining to motor fuel, aviation fuels,
home heating oils, kerosene, or special fuels, to determine
whether or not the taxes imposed by this Act have been paid.
(b) Any duly authorized agent of the Department, upon
presenting appropriate credentials and a written notice to the
person who owns, operates, or controls the place to be
inspected, shall have the authority to enter any place and to

HB1390 - 19 - LRB104 07494 HLH 17537 b
conduct inspections in accordance with subsections (b) through
(g) of this Section.
(c) Inspections will be performed in a reasonable manner
and at times that are reasonable under the circumstances,
taking into consideration the normal business hours of the
place to be entered.
(d) Inspections may be at any place at which taxable motor
fuel is or may be produced or stored or at any inspection site
where evidence of the following activities may be discovered:
(1) Where any dyed diesel fuel is sold or held for sale
by any person for any use which the person knows or has
reason to know is not a nontaxable use of such fuel.
(2) Where any dyed diesel fuel is held for use or used
by any person for a use other than a nontaxable use and the
person knew, or had reason to know, that the fuel was dyed
according to Section 4d.
(3) Where any person willfully alters, or attempts to
alter, the strength or composition of any dye or marking
done pursuant to Section 4d of this Law.
The places may include, but are not limited to, the
following:
(1) Any terminal.
(2) Any fuel storage facility that is not a terminal.
(3) Any retail fuel facility.
(4) Any designated inspection site.
(e) Duly authorized agents of the Department may

HB1390 - 20 - LRB104 07494 HLH 17537 b
physically inspect, examine, or otherwise search any tank,
reservoir, or other container that can or may be used for the
production, storage, or transportation of fuel, fuel dyes, or
fuel markers. Inspection may also be made of any equipment
used for, or in connection with, production, storage, or
transportation of fuel, fuel dyes, or fuel markers. This
includes any equipment used for the dyeing or marking of fuel.
This also includes books and records, if any, that are
maintained at the place of inspection and are kept to
determine tax liability under this Law.
(f) Duly authorized agents of the Department may detain
any motor vehicle, train, barge, ship, or vessel for the
purpose of inspecting its fuel tanks and storage tanks.
Detainment will be either on the premises under inspection or
at a designated inspection site. Detainment may continue for a
reasonable period of time as is necessary to determine the
amount and composition of the fuel.
(g) Duly authorized agents of the Department may take and
remove samples of fuel in quantities as are reasonably
necessary to determine the composition of the fuel.
(h) (1) Any person that refuses to allow an inspection
shall pay a $1,000 penalty for each refusal. This penalty
is in addition to any other penalty or tax that may be
imposed upon that person or any other person liable for
tax under this Law. All penalties received under this
subsection shall be deposited into the Tax Compliance and

HB1390 - 21 - LRB104 07494 HLH 17537 b
Administration Fund.
(2) In addition, any licensee who refuses to allow an
inspection shall be subject to license revocation as
provided by Section 16 of this Law.
(Source: P.A. 91-173, eff. 1-1-00.)
(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 directly paid to another state and the
amount of motor fuel used in that state.
Claims based in whole or in part on taxes paid to another
state shall include (i) a certified copy of the tax return
filed with such other state by the claimant; (ii) a copy of
either the cancelled check paying the tax due on such return,

HB1390 - 22 - LRB104 07494 HLH 17537 b
or a receipt acknowledging payment of the tax due on such tax
return; and (iii) such other information as the Department may
reasonably require. This paragraph shall not apply to taxes
paid on returns filed under Section 13a.3 of this Act.
Any person who purchases motor fuel use tax decals as
required by Section 13a.4 and pays an amount of fees for such
decals that exceeds the amount due shall be reimbursed and
repaid the amount of the decal fees that are deemed by the
department to be in excess of the amount due. Alternatively,
any person who purchases motor fuel use tax decals as required
by Section 13a.4 may credit any excess decal payment verified
by the Department against amounts subsequently due for the
purchase of additional decals, until such time as no excess
payment remains.
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 reimbursement for

HB1390 - 23 - LRB104 07494 HLH 17537 b
overpayment of decal fees shall 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 shall state facts relating to the
overpayment of decal fees, together with such other
information as the Department may reasonably require. Claims
for reimbursement of overpayment of decal fees paid on or
after January 1, 2011 must be filed not later than one year
after the date on which the fees were paid by the claimant. If
it is determined that the Department should reimburse a
claimant for overpayment of decal fees, the Department shall
first apply the amount of such refund against any tax or
penalty or interest due by the claimant under Section 13a of
this Act.
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.

HB1390 - 24 - LRB104 07494 HLH 17537 b
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

HB1390 - 25 - LRB104 07494 HLH 17537 b
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.

HB1390 - 26 - LRB104 07494 HLH 17537 b
In any case in which there has been an erroneous refund of
tax or fees 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

HB1390 - 27 - LRB104 07494 HLH 17537 b
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 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

HB1390 - 28 - LRB104 07494 HLH 17537 b
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

HB1390 - 29 - LRB104 07494 HLH 17537 b
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.
(8) Beginning on the effective date of this amendatory
Act of the 94th General Assembly, undyed diesel fuel used
by tugs and spotter equipment to shift vehicles or parcels
on both private and airport property. Any claim under this
item (8) may be made only by a claimant that owns tugs and
spotter equipment and operates that equipment on both
private and airport property. The aggregate of all credits
or refunds resulting from claims filed under this item (8)
by a claimant in any calendar year may not exceed
$100,000. A claim may not be made under this item (8) by
the same claimant more often than once each quarter. For
the purposes of this item (8), "tug" means a vehicle
designed for use on airport property that shifts
custom-designed containers of parcels from loading docks
to aircraft, and "spotter equipment" means a vehicle
designed for use on both private and airport property that
shifts trailers containing parcels between staging areas

HB1390 - 30 - LRB104 07494 HLH 17537 b
and loading docks.
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. In the case of losses due to
fire or theft, the claimant must include fire department or
police department reports and any other documentation that the
Department may require.

HB1390 - 31 - LRB104 07494 HLH 17537 b
(Source: P.A. 100-1171, eff. 1-4-19.)
(35 ILCS 505/14a) (from Ch. 120, par. 430.1)
Sec. 14a. The Department of Revenue may enter into
reciprocal agreements with the appropriate officials of any
other state under which the Department may waive all or any
part of the requirements imposed by the laws of this State upon
those who use or consume motor fuel in Illinois upon which a
tax has been paid to such other state, provided that the
officials of such other state grant equivalent privileges with
respect to motor fuel used in such other state but upon which
the tax has been paid to Illinois.
The Department may enter the International Fuel Tax
Agreement or other cooperative compacts or agreements with
other states or jurisdictions to permit base state or base
jurisdiction licensing of persons using motor fuel in this
State. Those agreements may provide for the cooperation and
assistance among member states in the administration and
collection of motor fuel tax, including, but not limited to,
exchanges of information, auditing and assessing of interstate
carriers and suppliers, and any other activities necessary to
further uniformity.
Pursuant to federal mandate, upon membership in the
International Fuel Tax Agreement ("Agreement"), the motor fuel
use tax imposed upon Commercial Motor Vehicles required to be
registered under the terms of the Agreement shall be

HB1390 - 32 - LRB104 07494 HLH 17537 b
administered according to the terms of the Agreement, as now
and hereafter amended. Illinois shall not establish, maintain,
or enforce any law or regulation that has fuel use tax
reporting requirements or that provides for the payment of a
fuel use tax, unless that law or regulation is in conformity
with the Agreement.
The Department shall adopt rules and regulations to
implement the provisions of the Agreement.
(Source: P.A. 88-480.)
(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

HB1390 - 33 - LRB104 07494 HLH 17537 b
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

HB1390 - 34 - LRB104 07494 HLH 17537 b
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 or , 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 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 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

HB1390 - 35 - LRB104 07494 HLH 17537 b
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 or for use by
recreational-type watercraft on the waters of this State 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 or for use by recreational-type watercraft on
the waters of this State is guilty of a Class A misdemeanor.
For each subsequent offense, the person is guilty of a Class 4
felony.

HB1390 - 36 - LRB104 07494 HLH 17537 b
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 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 or if a
recreational-type watercraft on the waters of this State is
found to have dyed diesel fuel within the ordinary fuel tanks
attached to the watercraft, the operator shall pay the
following penalty:
First occurrence...................................$1,000
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 or for use by recreational-type watercraft on the
waters of this State shall pay the following penalty:
First occurrence...................................$1,000
Second and each occurrence thereafter..............$5,000

HB1390 - 37 - LRB104 07494 HLH 17537 b
17. Any person who knowingly sells or distributes 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. 102-851, eff. 1-1-23.)
(35 ILCS 505/16) (from Ch. 120, par. 432)
Sec. 16. The Department may, after 5 days' notice, revoke
the distributor's or , receiver's, or supplier's license or
permit of any person (1) who does not operate as a distributor

HB1390 - 38 - LRB104 07494 HLH 17537 b
or , receiver, supplier (a) under Sections 1.2, 1.14, or 1.20,
(2) who violates any provision of this Act or any rule or
regulation promulgated by the Department under Section 14 of
this Act, or (3) who refuses to allow any inspection or test
authorized by this Law.
Any person whose returns for 2 or more consecutive months
do not show sufficient taxable sales to indicate an active
business as a distributor or , receiver, or supplier shall be
deemed to not be operating as a distributor or , receiver, or
supplier as defined in Sections 1.2, 1.14 or 1.20.
The Department may, after 5 days notice, revoke any
distributor'sor , receiver's, or supplier's license of a
person who is registered as a reseller of motor fuel pursuant
to Section 2a or 2c of the Retailers' Occupation Tax Act and
who fails to collect such prepaid tax on invoiced gallons of
motor fuel sold or who fails to deliver a statement of tax paid
to the purchaser or to the Department as required by Sections
2d and 2e of the Retailers' Occupation Tax Act.
The Department may, on notice given by registered mail,
cancel a Blender's Permit for any violation of any provisions
of this Act or for noncompliance with any rule or regulation
made by the Department under Section 14 of this Act.
The Department, upon complaint filed in the circuit court,
may, by injunction, restrain any person who fails or refuses
to comply with the provisions of this Act from acting as a
blender or distributor of motor fuel, supplier of special

HB1390 - 39 - LRB104 07494 HLH 17537 b
fuel, or as a receiver of fuel in this State.
The Department may revoke the motor fuel use tax license
of a motor carrier registered under Section 13a.4, or that is
required to be registered under the terms of the International
Fuel Tax Agreement, that violates any provision of this Act or
any rule promulgated by the Department under Sections 14 or
14a of this Act. Motor fuel use tax licenses that have been
revoked are subject to a $100 reinstatement fee.
Licensees registered or required to be registered under
Section 13a.4, or persons required to obtain single trip
permits under Section 13a.5, may protest any action or audit
finding made by the Department by making a written request for
a hearing within 30 days after service of the notice of the
original action or finding. If the hearing is not requested
within 30 days in writing, the original finding or action is
final. Once a hearing has been properly requested, the
Department shall give at least 20 days written notice of the
time and place of the hearing.
(Source: P.A. 94-1074, eff. 12-26-06.)