Bill Text: IL HB4155 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the State Finance Act. Provides that, beginning with fiscal year 2010 and thereafter, Road Fund moneys may not be appropriated to certain executive agencies. Prohibits certain transfers from the Road Fund or the State Construction Account Fund. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on July 1, 2009, motor fuel and gasohol must be taxed under the Acts at the rate of 1.25% (now, 6.25%). Amends the Motor Fuel Tax Law. Imposes an additional tax of $0.150 per gallon on motor fuel sold in the State. Provides that this additional tax must be adjusted each fiscal year to account for inflation. Provides that the proceeds of this additional tax must be deposited into the Metropolitan Transit and Road Improvement Fund and sets forth certain requirements regarding distributions from that Fund. Effective July 1, 2009.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2009-03-13 - Rule 19(a) / Re-referred to Rules Committee [HB4155 Detail]

Download: Illinois-2009-HB4155-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB4155 Introduced 2/27/2009, by Rep. Mike Fortner SYNOPSIS AS INTRODUCED:
30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
30 ILCS 105/6z-20 from Ch. 127, par. 142z-20
30 ILCS 105/8.3 from Ch. 127, par. 144.3
30 ILCS 105/8h
35 ILCS 105/3-10 from Ch. 120, par. 439.3-10
35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
35 ILCS 120/2-10 from Ch. 120, par. 441-10
35 ILCS 505/2 from Ch. 120, par. 418
35 ILCS 505/8 from Ch. 120, par. 424
35 ILCS 505/8b new
Amends the State Finance Act. Provides that, beginning with fiscal year 2010 and thereafter, Road Fund moneys may not be appropriated to certain executive agencies. Prohibits certain transfers from the Road Fund or the State Construction Account Fund. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on July 1, 2009, motor fuel and gasohol must be taxed under the Acts at the rate of 1.25% (now, 6.25%). Amends the Motor Fuel Tax Law. Imposes an additional tax of $0.150 per gallon on motor fuel sold in the State. Provides that this additional tax must be adjusted each fiscal year to account for inflation. Provides that the proceeds of this additional tax must be deposited into the Metropolitan Transit and Road Improvement Fund and sets forth certain requirements regarding distributions from that Fund. Effective July 1, 2009.
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A BILL FOR
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AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by changing
Sections 6z-18, 6z-20, 8.3, and 8h as follows:
(30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
Sec. 6z-18. A portion of the money paid into the Local
Government Tax Fund from sales of food for human consumption
which is to be consumed off the premises where it is sold
(other than alcoholic beverages, soft drinks and food which has
been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes and needles used by
diabetics, which occurred in municipalities, shall be
distributed to each municipality based upon the sales which
occurred in that municipality. The remainder shall be
distributed to each county based upon the sales which occurred
in the unincorporated area of that county.
A portion of the money paid into the Local Government Tax
Fund from the 6.25% general use tax rate on the selling price
of tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by any agency of this State's government shall be

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distributed to municipalities as provided in this paragraph.
Each municipality shall receive the amount attributable to
sales for which Illinois addresses for titling or registration
purposes are given as being in such municipality. The remainder
of the money paid into the Local Government Tax Fund from such
sales shall be distributed to counties. Each county shall
receive the amount attributable to sales for which Illinois
addresses for titling or registration purposes are given as
being located in the unincorporated area of such county.
A portion of the money paid into the Local Government Tax
Fund from the 6.25% general rate (and, beginning July 1, 2000
and through December 31, 2000 and beginning again on July 1,
2009, the 1.25% rate on motor fuel and gasohol) on sales
subject to taxation under the Retailers' Occupation Tax Act and
the Service Occupation Tax Act, which occurred in
municipalities, shall be distributed to each municipality,
based upon the sales which occurred in that municipality. The
remainder shall be distributed to each county, based upon the
sales which occurred in the unincorporated area of such county.
For the purpose of determining allocation to the local
government unit, a retail sale by a producer of coal or other
mineral mined in Illinois is a sale at retail at the place
where the coal or other mineral mined in Illinois is extracted
from the earth. This paragraph does not apply to coal or other
mineral when it is delivered or shipped by the seller to the
purchaser at a point outside Illinois so that the sale is

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exempt under the United States Constitution as a sale in
interstate or foreign commerce.
Whenever the Department determines that a refund of money
paid into the Local Government Tax Fund should be made to a
claimant instead of issuing a credit memorandum, the Department
shall notify the State Comptroller, who shall cause the order
to be drawn for the amount specified, and to the person named,
in such notification from the Department. Such refund shall be
paid by the State Treasurer out of the Local Government Tax
Fund.
On or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities
and counties, the municipalities and counties to be those
entitled to distribution of taxes or penalties paid to the
Department during the second preceding calendar month. The
amount to be paid to each municipality or county shall be the
amount (not including credit memoranda) collected during the
second preceding calendar month by the Department and paid into
the Local Government Tax Fund, plus an amount the Department
determines is necessary to offset any amounts which were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department, and not including
any amount which the Department determines is necessary to
offset any amounts which are payable to a different taxing body

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but were erroneously paid to the municipality or county. Within
10 days after receipt, by the Comptroller, of the disbursement
certification to the municipalities and counties, provided for
in this Section to be given to the Comptroller by the
Department, the Comptroller shall cause the orders to be drawn
for the respective amounts in accordance with the directions
contained in such certification.
When certifying the amount of monthly disbursement to a
municipality or county under this Section, the Department shall
increase or decrease that amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the 6
months preceding the time a misallocation is discovered.
The provisions directing the distributions from the
special fund in the State Treasury provided for in this Section
shall constitute an irrevocable and continuing appropriation
of all amounts as provided herein. The State Treasurer and
State Comptroller are hereby authorized to make distributions
as provided in this Section.
In construing any development, redevelopment, annexation,
preannexation or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from a
county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the
replacement revenue for such abolished taxes, distributed from

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the Local Government Tax Fund.
(Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99; 91-872,
eff. 7-1-00.)
(30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
Sec. 6z-20. Of the money received from the 6.25% general
rate (and, beginning July 1, 2000 and through December 31, 2000
and beginning again on July 1, 2009, the 1.25% rate on motor
fuel and gasohol) on sales subject to taxation under the
Retailers' Occupation Tax Act and Service Occupation Tax Act
and paid into the County and Mass Transit District Fund,
distribution to the Regional Transportation Authority tax
fund, created pursuant to Section 4.03 of the Regional
Transportation Authority Act, for deposit therein shall be made
based upon the retail sales occurring in a county having more
than 3,000,000 inhabitants. The remainder shall be distributed
to each county having 3,000,000 or fewer inhabitants based upon
the retail sales occurring in each such county.
For the purpose of determining allocation to the local
government unit, a retail sale by a producer of coal or other
mineral mined in Illinois is a sale at retail at the place
where the coal or other mineral mined in Illinois is extracted
from the earth. This paragraph does not apply to coal or other
mineral when it is delivered or shipped by the seller to the
purchaser at a point outside Illinois so that the sale is
exempt under the United States Constitution as a sale in

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interstate or foreign commerce.
Of the money received from the 6.25% general use tax rate
on tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by any agency of this State's government and paid
into the County and Mass Transit District Fund, the amount for
which Illinois addresses for titling or registration purposes
are given as being in each county having more than 3,000,000
inhabitants shall be distributed into the Regional
Transportation Authority tax fund, created pursuant to Section
4.03 of the Regional Transportation Authority Act. The
remainder of the money paid from such sales shall be
distributed to each county based on sales for which Illinois
addresses for titling or registration purposes are given as
being located in the county. Any money paid into the Regional
Transportation Authority Occupation and Use Tax Replacement
Fund from the County and Mass Transit District Fund prior to
January 14, 1991, which has not been paid to the Authority
prior to that date, shall be transferred to the Regional
Transportation Authority tax fund.
Whenever the Department determines that a refund of money
paid into the County and Mass Transit District Fund should be
made to a claimant instead of issuing a credit memorandum, the
Department shall notify the State Comptroller, who shall cause
the order to be drawn for the amount specified, and to the
person named, in such notification from the Department. Such

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refund shall be paid by the State Treasurer out of the County
and Mass Transit District Fund.
On or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the Regional
Transportation Authority and to named counties, the counties to
be those entitled to distribution, as hereinabove provided, of
taxes or penalties paid to the Department during the second
preceding calendar month. The amount to be paid to the Regional
Transportation Authority and each county having 3,000,000 or
fewer inhabitants shall be the amount (not including credit
memoranda) collected during the second preceding calendar
month by the Department and paid into the County and Mass
Transit District Fund, plus an amount the Department determines
is necessary to offset any amounts which were erroneously paid
to a different taxing body, and not including an amount equal
to the amount of refunds made during the second preceding
calendar month by the Department, and not including any amount
which the Department determines is necessary to offset any
amounts which were payable to a different taxing body but were
erroneously paid to the Regional Transportation Authority or
county. Within 10 days after receipt, by the Comptroller, of
the disbursement certification to the Regional Transportation
Authority and counties, provided for in this Section to be
given to the Comptroller by the Department, the Comptroller
shall cause the orders to be drawn for the respective amounts

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in accordance with the directions contained in such
certification.
When certifying the amount of a monthly disbursement to the
Regional Transportation Authority or to a county under this
Section, the Department shall increase or decrease that amount
by an amount necessary to offset any misallocation of previous
disbursements. The offset amount shall be the amount
erroneously disbursed within the 6 months preceding the time a
misallocation is discovered.
The provisions directing the distributions from the
special fund in the State Treasury provided for in this Section
and from the Regional Transportation Authority tax fund created
by Section 4.03 of the Regional Transportation Authority Act
shall constitute an irrevocable and continuing appropriation
of all amounts as provided herein. The State Treasurer and
State Comptroller are hereby authorized to make distributions
as provided in this Section.
In construing any development, redevelopment, annexation,
preannexation or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from a
county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the
replacement revenue for such abolished taxes, distributed from
the County and Mass Transit District Fund or Local Government
Distributive Fund, as the case may be.

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(Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.)
(30 ILCS 105/8.3) (from Ch. 127, par. 144.3)
Sec. 8.3. Money in the Road Fund shall, if and when the
State of Illinois incurs any bonded indebtedness for the
construction of permanent highways, be set aside and used for
the purpose of paying and discharging annually the principal
and interest on that bonded indebtedness then due and payable,
and for no other purpose. The surplus, if any, in the Road Fund
after the payment of principal and interest on that bonded
indebtedness then annually due shall be used as follows:
first -- to pay the cost of administration of Chapters
2 through 10 of the Illinois Vehicle Code, except the cost
of administration of Articles I and II of Chapter 3 of that
Code; and
secondly -- for expenses of the Department of
Transportation for construction, reconstruction,
improvement, repair, maintenance, operation, and
administration of highways in accordance with the
provisions of laws relating thereto, or for any purpose
related or incident to and connected therewith, including
the separation of grades of those highways with railroads
and with highways and including the payment of awards made
by the Illinois Workers' Compensation Commission under the
terms of the Workers' Compensation Act or Workers'
Occupational Diseases Act for injury or death of an

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employee of the Division of Highways in the Department of
Transportation; or for the acquisition of land and the
erection of buildings for highway purposes, including the
acquisition of highway right-of-way or for investigations
to determine the reasonably anticipated future highway
needs; or for making of surveys, plans, specifications and
estimates for and in the construction and maintenance of
flight strips and of highways necessary to provide access
to military and naval reservations, to defense industries
and defense-industry sites, and to the sources of raw
materials and for replacing existing highways and highway
connections shut off from general public use at military
and naval reservations and defense-industry sites, or for
the purchase of right-of-way, except that the State shall
be reimbursed in full for any expense incurred in building
the flight strips; or for the operating and maintaining of
highway garages; or for patrolling and policing the public
highways and conserving the peace; or for the operating
expenses of the Department relating to the administration
of public transportation programs; or for any of those
purposes or any other purpose that may be provided by law.
Appropriations for any of those purposes are payable from
the Road Fund. Appropriations may also be made from the Road
Fund for the administrative expenses of any State agency that
are related to motor vehicles or arise from the use of motor
vehicles.

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Beginning with fiscal year 1980 and thereafter, no Road
Fund monies shall be appropriated to the following Departments
or agencies of State government for administration, grants, or
operations; but this limitation is not a restriction upon
appropriating for those purposes any Road Fund monies that are
eligible for federal reimbursement;
1. Department of Public Health;
2. Department of Transportation, only with respect to
subsidies for one-half fare Student Transportation and
Reduced Fare for Elderly;
3. Department of Central Management Services, except
for expenditures incurred for group insurance premiums of
appropriate personnel;
4. Judicial Systems and Agencies.
Beginning with fiscal year 1981 and thereafter, no Road
Fund monies shall be appropriated to the following Departments
or agencies of State government for administration, grants, or
operations; but this limitation is not a restriction upon
appropriating for those purposes any Road Fund monies that are
eligible for federal reimbursement:
1. Department of State Police, except for expenditures
with respect to the Division of Operations;
2. Department of Transportation, only with respect to
Intercity Rail Subsidies and Rail Freight Services.
Beginning with fiscal year 1982 and thereafter, no Road
Fund monies shall be appropriated to the following Departments

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or agencies of State government for administration, grants, or
operations; but this limitation is not a restriction upon
appropriating for those purposes any Road Fund monies that are
eligible for federal reimbursement: Department of Central
Management Services, except for awards made by the Illinois
Workers' Compensation Commission under the terms of the
Workers' Compensation Act or Workers' Occupational Diseases
Act for injury or death of an employee of the Division of
Highways in the Department of Transportation.
Beginning with fiscal year 1984 and thereafter, no Road
Fund monies shall be appropriated to the following Departments
or agencies of State government for administration, grants, or
operations; but this limitation is not a restriction upon
appropriating for those purposes any Road Fund monies that are
eligible for federal reimbursement:
1. Department of State Police, except not more than 40%
of the funds appropriated for the Division of Operations;
2. State Officers.
Beginning with fiscal year 1984 and thereafter, no Road
Fund monies shall be appropriated to any Department or agency
of State government for administration, grants, or operations
except as provided hereafter; but this limitation is not a
restriction upon appropriating for those purposes any Road Fund
monies that are eligible for federal reimbursement. It shall
not be lawful to circumvent the above appropriation limitations
by governmental reorganization or other methods.

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Appropriations shall be made from the Road Fund only in
accordance with the provisions of this Section.
Money in the Road Fund shall, if and when the State of
Illinois incurs any bonded indebtedness for the construction of
permanent highways, be set aside and used for the purpose of
paying and discharging during each fiscal year the principal
and interest on that bonded indebtedness as it becomes due and
payable as provided in the Transportation Bond Act, and for no
other purpose. The surplus, if any, in the Road Fund after the
payment of principal and interest on that bonded indebtedness
then annually due shall be used as follows:
first -- to pay the cost of administration of Chapters
2 through 10 of the Illinois Vehicle Code; and
secondly -- no Road Fund monies derived from fees,
excises, or license taxes relating to registration,
operation and use of vehicles on public highways or to
fuels used for the propulsion of those vehicles, shall be
appropriated or expended other than for costs of
administering the laws imposing those fees, excises, and
license taxes, statutory refunds and adjustments allowed
thereunder, administrative costs of the Department of
Transportation, including, but not limited to, the
operating expenses of the Department relating to the
administration of public transportation programs, payment
of debts and liabilities incurred in construction and
reconstruction of public highways and bridges, acquisition

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of rights-of-way for and the cost of construction,
reconstruction, maintenance, repair, and operation of
public highways and bridges under the direction and
supervision of the State, political subdivision, or
municipality collecting those monies, and the costs for
patrolling and policing the public highways (by State,
political subdivision, or municipality collecting that
money) for enforcement of traffic laws. The separation of
grades of such highways with railroads and costs associated
with protection of at-grade highway and railroad crossing
shall also be permissible.
Appropriations for any of such purposes are payable from
the Road Fund or the Grade Crossing Protection Fund as provided
in Section 8 of the Motor Fuel Tax Law.
Except as provided in this paragraph, beginning with fiscal
year 1991 and thereafter, no Road Fund monies shall be
appropriated to the Department of State Police for the purposes
of this Section in excess of its total fiscal year 1990 Road
Fund appropriations for those purposes unless otherwise
provided in Section 5g of this Act. For fiscal years 2003,
2004, 2005, 2006, and 2007 only, no Road Fund monies shall be
appropriated to the Department of State Police for the purposes
of this Section in excess of $97,310,000. For fiscal year 2008
only, no Road Fund monies shall be appropriated to the
Department of State Police for the purposes of this Section in
excess of $106,100,000. For fiscal year 2009 only, no Road Fund

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monies shall be appropriated to the Department of State Police
for the purposes of this Section in excess of $114,700,000. It
shall not be lawful to circumvent this limitation on
appropriations by governmental reorganization or other methods
unless otherwise provided in Section 5g of this Act.
In fiscal year 1994, no Road Fund monies shall be
appropriated to the Secretary of State for the purposes of this
Section in excess of the total fiscal year 1991 Road Fund
appropriations to the Secretary of State for those purposes,
plus $9,800,000. It shall not be lawful to circumvent this
limitation on appropriations by governmental reorganization or
other method.
Beginning with fiscal year 1995 and thereafter, no Road
Fund monies shall be appropriated to the Secretary of State for
the purposes of this Section in excess of the total fiscal year
1994 Road Fund appropriations to the Secretary of State for
those purposes. It shall not be lawful to circumvent this
limitation on appropriations by governmental reorganization or
other methods.
Beginning with fiscal year 2000, total Road Fund
appropriations to the Secretary of State for the purposes of
this Section shall not exceed the amounts specified for the
following fiscal years:
Fiscal Year 2000 $80,500,000;
Fiscal Year 2001 $80,500,000;
Fiscal Year 2002 $80,500,000;

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Fiscal Year 2003 $130,500,000;
Fiscal Year 2004 $130,500,000;
Fiscal Year 2005 $130,500,000;
Fiscal Year 2006 $130,500,000;
Fiscal Year 2007 $130,500,000;
Fiscal Year 2008 $130,500,000;
Fiscal Year 2009 $130,500,000;
Fiscal Year 2010 and each year thereafter $30,500,000.
It shall not be lawful to circumvent this limitation on
appropriations by governmental reorganization or other
methods.
No new program may be initiated in fiscal year 1991 and
thereafter that is not consistent with the limitations imposed
by this Section for fiscal year 1984 and thereafter, insofar as
appropriation of Road Fund monies is concerned.
Nothing in this Section prohibits transfers from the Road
Fund to the State Construction Account Fund under Section 5e of
this Act; nor to the General Revenue Fund, as authorized by
this amendatory Act of the 93rd General Assembly.
The additional amounts authorized for expenditure in this
Section by Public Acts 92-0600, 93-0025, 93-0839, and 94-91
shall be repaid to the Road Fund from the General Revenue Fund
in the next succeeding fiscal year that the General Revenue
Fund has a positive budgetary balance, as determined by
generally accepted accounting principles applicable to
government.

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Beginning with fiscal year 2010 and thereafter, no Road
Fund moneys may be appropriated to the Department of Central
Management Services, the Department of Employment Security,
the Department of Revenue, the Court of Claims, or any other
State agency (other than the Department of State Police and the
Department of Transportation and the Secretary of State) for
the purposes of this Section. Appropriations to those entities
for those purposes shall, instead, be made from the General
Revenue Fund. It shall not be lawful to circumvent this
limitation on appropriations by governmental reorganization or
other methods. Nothing in this paragraph prohibits
appropriations from the Road Fund to the Department of State
Police for the purposes of the highway patrol budget only.
The additional amounts authorized for expenditure by the
Secretary of State and the Department of State Police in this
Section by this amendatory Act of the 94th General Assembly
shall be repaid to the Road Fund from the General Revenue Fund
in the next succeeding fiscal year that the General Revenue
Fund has a positive budgetary balance, as determined by
generally accepted accounting principles applicable to
government.
(Source: P.A. 94-91, eff. 7-1-05; 94-839, eff. 6-6-06; 95-707,
eff. 1-11-08; 95-744, eff. 7-18-08.)
(30 ILCS 105/8h)
Sec. 8h. Transfers to General Revenue Fund.

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(a) Except as otherwise provided in this Section and
Section 8n of this Act, and notwithstanding any other State law
to the contrary, the Governor may, through June 30, 2007, from
time to time direct the State Treasurer and Comptroller to
transfer a specified sum from any fund held by the State
Treasurer to the General Revenue Fund in order to help defray
the State's operating costs for the fiscal year. The total
transfer under this Section from any fund in any fiscal year
shall not exceed the lesser of (i) 8% of the revenues to be
deposited into the fund during that fiscal year or (ii) an
amount that leaves a remaining fund balance of 25% of the July
1 fund balance of that fiscal year. In fiscal year 2005 only,
prior to calculating the July 1, 2004 final balances, the
Governor may calculate and direct the State Treasurer with the
Comptroller to transfer additional amounts determined by
applying the formula authorized in Public Act 93-839 to the
funds balances on July 1, 2003. No transfer may be made from a
fund under this Section that would have the effect of reducing
the available balance in the fund to an amount less than the
amount remaining unexpended and unreserved from the total
appropriation from that fund estimated to be expended for that
fiscal year. This Section does not apply to any funds that are
restricted by federal law to a specific use, to any funds in
the Motor Fuel Tax Fund, the Intercity Passenger Rail Fund, the
Hospital Provider Fund, the Medicaid Provider Relief Fund, the
Teacher Health Insurance Security Fund, the Reviewing Court

HB4155 - 19 - LRB096 11814 HLH 22657 b
Alternative Dispute Resolution Fund, the Voters' Guide Fund,
the Foreign Language Interpreter Fund, the Lawyers' Assistance
Program Fund, the Supreme Court Federal Projects Fund, the
Supreme Court Special State Projects Fund, the Supplemental
Low-Income Energy Assistance Fund, the Good Samaritan Energy
Trust Fund, the Low-Level Radioactive Waste Facility
Development and Operation Fund, the Horse Racing Equity Trust
Fund, the Metabolic Screening and Treatment Fund, or the
Hospital Basic Services Preservation Fund, or to any funds to
which Section 70-50 of the Nurse Practice Act applies. No
transfers may be made under this Section from the Pet
Population Control Fund. Notwithstanding any other provision
of this Section, for fiscal year 2004, the total transfer under
this Section from the Road Fund or the State Construction
Account Fund shall not exceed the lesser of (i) 5% of the
revenues to be deposited into the fund during that fiscal year
or (ii) 25% of the beginning balance in the fund. For fiscal
year 2005 through fiscal year 2007, no amounts may be
transferred under this Section from the Road Fund, the State
Construction Account Fund, the Criminal Justice Information
Systems Trust Fund, the Wireless Service Emergency Fund, or the
Mandatory Arbitration Fund. No transfers may be made under this
Section from the Road Fund or the State Construction Account
Fund on or after the effective date of this amendatory Act of
the 96th General Assembly.
In determining the available balance in a fund, the

HB4155 - 20 - LRB096 11814 HLH 22657 b
Governor may include receipts, transfers into the fund, and
other resources anticipated to be available in the fund in that
fiscal year.
The State Treasurer and Comptroller shall transfer the
amounts designated under this Section as soon as may be
practicable after receiving the direction to transfer from the
Governor.
(a-5) Transfers directed to be made under this Section on
or before February 28, 2006 that are still pending on May 19,
2006 (the effective date of Public Act 94-774) shall be
redirected as provided in Section 8n of this Act.
(b) This Section does not apply to: (i) the Ticket For The
Cure Fund; (ii) any fund established under the Community Senior
Services and Resources Act; or (iii) on or after January 1,
2006 (the effective date of Public Act 94-511), the Child Labor
and Day and Temporary Labor Enforcement Fund.
(c) This Section does not apply to the Demutualization
Trust Fund established under the Uniform Disposition of
Unclaimed Property Act.
(d) This Section does not apply to moneys set aside in the
Illinois State Podiatric Disciplinary Fund for podiatric
scholarships and residency programs under the Podiatric
Scholarship and Residency Act.
(e) Subsection (a) does not apply to, and no transfer may
be made under this Section from, the Pension Stabilization
Fund.

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(f) Subsection (a) does not apply to, and no transfer may
be made under this Section from, the Illinois Power Agency
Operations Fund, the Illinois Power Agency Facilities Fund, the
Illinois Power Agency Debt Service Fund, and the Illinois Power
Agency Trust Fund.
(g) This Section does not apply to the Veterans Service
Organization Reimbursement Fund.
(h) This Section does not apply to the Supreme Court
Historic Preservation Fund.
(i) This Section does not apply to, and no transfer may be
made under this Section from, the Money Follows the Person
Budget Transfer Fund.
(Source: P.A. 94-91, eff. 7-1-05; 94-120, eff. 7-6-05; 94-511,
eff. 1-1-06; 94-535, eff. 8-10-05; 94-639, eff. 8-22-05;
94-645, eff. 8-22-05; 94-648, eff. 1-1-06; 94-686, eff.
11-2-05; 94-691, eff. 11-2-05; 94-726, eff. 1-20-06; 94-773,
eff. 5-18-06; 94-774, eff. 5-19-06; 94-804, eff. 5-26-06;
94-839, eff. 6-6-06; 95-331, eff. 8-21-07; 95-410, eff.
8-24-07; 95-481, eff. 8-28-07; 95-629, eff. 9-25-07; 95-639,
eff. 10-5-07; 95-695, eff. 11-5-07; 95-744, eff. 7-18-08;
95-876, eff. 8-21-08.)
Section 10. The Use Tax Act is amended by changing Sections
3-10 as follows:
(35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)

HB4155 - 22 - LRB096 11814 HLH 22657 b
Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
either the selling price or the fair market value, if any, of
the tangible personal property. In all cases where property
functionally used or consumed is the same as the property that
was purchased at retail, then the tax is imposed on the selling
price of the property. In all cases where property functionally
used or consumed is a by-product or waste product that has been
refined, manufactured, or produced from property purchased at
retail, then the tax is imposed on the lower of the fair market
value, if any, of the specific property so used in this State
or on the selling price of the property purchased at retail.
For purposes of this Section "fair market value" means the
price at which property would change hands between a willing
buyer and a willing seller, neither being under any compulsion
to buy or sell and both having reasonable knowledge of the
relevant facts. The fair market value shall be established by
Illinois sales by the taxpayer of the same property as that
functionally used or consumed, or if there are no such sales by
the taxpayer, then comparable sales or purchases of property of
like kind and character in Illinois.
Beginning on July 1, 2000 and through December 31, 2000 and
beginning again July 1, 2009, with respect to motor fuel, as
defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
as defined in Section 3-40 of the Use Tax Act, the tax is
imposed at the rate of 1.25%.

HB4155 - 23 - LRB096 11814 HLH 22657 b
With respect to gasohol, the tax imposed by this Act
applies to (i) 70% of the proceeds of sales made on or after
January 1, 1990, and before July 1, 2003, (ii) 80% of the
proceeds of sales made on or after July 1, 2003 and on or
before December 31, 2013, and (iii) 100% of the proceeds of
sales made thereafter. If, at any time, however, the tax under
this Act on sales of gasohol is imposed at the rate of 1.25%,
then the tax imposed by this Act applies to 100% of the
proceeds of sales of gasohol made during that time.
With respect to majority blended ethanol fuel, the tax
imposed by this Act does not apply to the proceeds of sales
made on or after July 1, 2003 and on or before December 31,
2013 but applies to 100% of the proceeds of sales made
thereafter.
With respect to biodiesel blends with no less than 1% and
no more than 10% biodiesel, the tax imposed by this Act applies
to (i) 80% of the proceeds of sales made on or after July 1,
2003 and on or before December 31, 2013 and (ii) 100% of the
proceeds of sales made thereafter. If, at any time, however,
the tax under this Act on sales of biodiesel blends with no
less than 1% and no more than 10% biodiesel is imposed at the
rate of 1.25%, then the tax imposed by this Act applies to 100%
of the proceeds of sales of biodiesel blends with no less than
1% and no more than 10% biodiesel made during that time.
With respect to 100% biodiesel and biodiesel blends with
more than 10% but no more than 99% biodiesel, the tax imposed

HB4155 - 24 - LRB096 11814 HLH 22657 b
by this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2013 but
applies to 100% of the proceeds of sales made thereafter.
With respect to food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances,
modifications to a motor vehicle for the purpose of rendering
it usable by a disabled person, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, the tax is imposed at the rate of 1%. For the purposes of
this Section, the term "soft drinks" means any complete,
finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including but not limited to soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size. "Soft
drinks" does not include coffee, tea, non-carbonated water,
infant formula, milk or milk products as defined in the Grade A
Pasteurized Milk and Milk Products Act, or drinks containing
50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act, "food for
human consumption that is to be consumed off the premises where
it is sold" includes all food sold through a vending machine,

HB4155 - 25 - LRB096 11814 HLH 22657 b
except soft drinks and food products that are dispensed hot
from a vending machine, regardless of the location of the
vending machine.
If the property that is purchased at retail from a retailer
is acquired outside Illinois and used outside Illinois before
being brought to Illinois for use here and is taxable under
this Act, the "selling price" on which the tax is computed
shall be reduced by an amount that represents a reasonable
allowance for depreciation for the period of prior out-of-state
use.
(Source: P.A. 93-17, eff. 6-11-03.)
Section 15. The Service Use Tax Act is amended by changing
Sections 3-10 as follows:
(35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
the selling price of tangible personal property transferred as
an incident to the sale of service, but, for the purpose of
computing this tax, in no event shall the selling price be less
than the cost price of the property to the serviceman.
Beginning on July 1, 2000 and through December 31, 2000 and
beginning again on July 1, 2009, with respect to motor fuel, as
defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
as defined in Section 3-40 of the Use Tax Act, the tax is

HB4155 - 26 - LRB096 11814 HLH 22657 b
imposed at the rate of 1.25%.
With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act applies to (i) 70% of the selling price
of property transferred as an incident to the sale of service
on or after January 1, 1990, and before July 1, 2003, (ii) 80%
of the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before
December 31, 2013, and (iii) 100% of the selling price
thereafter. If, at any time, however, the tax under this Act on
sales of gasohol, as defined in the Use Tax Act, is imposed at
the rate of 1.25%, then the tax imposed by this Act applies to
100% of the proceeds of sales of gasohol made during that time.
With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before
December 31, 2013 but applies to 100% of the selling price
thereafter.
With respect to biodiesel blends, as defined in the Use Tax
Act, with no less than 1% and no more than 10% biodiesel, the
tax imposed by this Act applies to (i) 80% of the selling price
of property transferred as an incident to the sale of service
on or after July 1, 2003 and on or before December 31, 2013 and
(ii) 100% of the proceeds of the selling price thereafter. If,
at any time, however, the tax under this Act on sales of
biodiesel blends, as defined in the Use Tax Act, with no less

HB4155 - 27 - LRB096 11814 HLH 22657 b
than 1% and no more than 10% biodiesel is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of biodiesel blends with no less than 1%
and no more than 10% biodiesel made during that time.
With respect to 100% biodiesel, as defined in the Use Tax
Act, and biodiesel blends, as defined in the Use Tax Act, with
more than 10% but no more than 99% biodiesel, the tax imposed
by this Act does not apply to the proceeds of the selling price
of property transferred as an incident to the sale of service
on or after July 1, 2003 and on or before December 31, 2013 but
applies to 100% of the selling price thereafter.
At the election of any registered serviceman made for each
fiscal year, sales of service in which the aggregate annual
cost price of tangible personal property transferred as an
incident to the sales of service is less than 35%, or 75% in
the case of servicemen transferring prescription drugs or
servicemen engaged in graphic arts production, of the aggregate
annual total gross receipts from all sales of service, the tax
imposed by this Act shall be based on the serviceman's cost
price of the tangible personal property transferred as an
incident to the sale of those services.
The tax shall be imposed at the rate of 1% on food prepared
for immediate consumption and transferred incident to a sale of
service subject to this Act or the Service Occupation Tax Act
by an entity licensed under the Hospital Licensing Act, the
Nursing Home Care Act, or the Child Care Act of 1969. The tax

HB4155 - 28 - LRB096 11814 HLH 22657 b
shall also be imposed at the rate of 1% on food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, soft drinks, and food
that has been prepared for immediate consumption and is not
otherwise included in this paragraph) and prescription and
nonprescription medicines, drugs, medical appliances,
modifications to a motor vehicle for the purpose of rendering
it usable by a disabled person, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use. For the purposes of this Section, the term "soft drinks"
means any complete, finished, ready-to-use, non-alcoholic
drink, whether carbonated or not, including but not limited to
soda water, cola, fruit juice, vegetable juice, carbonated
water, and all other preparations commonly known as soft drinks
of whatever kind or description that are contained in any
closed or sealed bottle, can, carton, or container, regardless
of size. "Soft drinks" does not include coffee, tea,
non-carbonated water, infant formula, milk or milk products as
defined in the Grade A Pasteurized Milk and Milk Products Act,
or drinks containing 50% or more natural fruit or vegetable
juice.
Notwithstanding any other provisions of this Act, "food for
human consumption that is to be consumed off the premises where
it is sold" includes all food sold through a vending machine,
except soft drinks and food products that are dispensed hot
from a vending machine, regardless of the location of the

HB4155 - 29 - LRB096 11814 HLH 22657 b
vending machine.
If the property that is acquired from a serviceman is
acquired outside Illinois and used outside Illinois before
being brought to Illinois for use here and is taxable under
this Act, the "selling price" on which the tax is computed
shall be reduced by an amount that represents a reasonable
allowance for depreciation for the period of prior out-of-state
use.
(Source: P.A. 93-17, eff. 6-11-03.)
Section 20. The Service Occupation Tax Act is amended by
changing Sections 3-10 as follows:
(35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
the "selling price", as defined in Section 2 of the Service Use
Tax Act, of the tangible personal property. For the purpose of
computing this tax, in no event shall the "selling price" be
less than the cost price to the serviceman of the tangible
personal property transferred. The selling price of each item
of tangible personal property transferred as an incident of a
sale of service may be shown as a distinct and separate item on
the serviceman's billing to the service customer. If the
selling price is not so shown, the selling price of the
tangible personal property is deemed to be 50% of the

HB4155 - 30 - LRB096 11814 HLH 22657 b
serviceman's entire billing to the service customer. When,
however, a serviceman contracts to design, develop, and produce
special order machinery or equipment, the tax imposed by this
Act shall be based on the serviceman's cost price of the
tangible personal property transferred incident to the
completion of the contract.
Beginning on July 1, 2000 and through December 31, 2000 and
beginning again on July 1, 2009, with respect to motor fuel, as
defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
as defined in Section 3-40 of the Use Tax Act, the tax is
imposed at the rate of 1.25%.
With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act shall apply to (i) 70% of the cost
price of property transferred as an incident to the sale of
service on or after January 1, 1990, and before July 1, 2003,
(ii) 80% of the selling price of property transferred as an
incident to the sale of service on or after July 1, 2003 and on
or before December 31, 2013, and (iii) 100% of the cost price
thereafter. If, at any time, however, the tax under this Act on
sales of gasohol, as defined in the Use Tax Act, is imposed at
the rate of 1.25%, then the tax imposed by this Act applies to
100% of the proceeds of sales of gasohol made during that time.
With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before

HB4155 - 31 - LRB096 11814 HLH 22657 b
December 31, 2013 but applies to 100% of the selling price
thereafter.
With respect to biodiesel blends, as defined in the Use Tax
Act, with no less than 1% and no more than 10% biodiesel, the
tax imposed by this Act applies to (i) 80% of the selling price
of property transferred as an incident to the sale of service
on or after July 1, 2003 and on or before December 31, 2013 and
(ii) 100% of the proceeds of the selling price thereafter. If,
at any time, however, the tax under this Act on sales of
biodiesel blends, as defined in the Use Tax Act, with no less
than 1% and no more than 10% biodiesel is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of biodiesel blends with no less than 1%
and no more than 10% biodiesel made during that time.
With respect to 100% biodiesel, as defined in the Use Tax
Act, and biodiesel blends, as defined in the Use Tax Act, with
more than 10% but no more than 99% biodiesel material, the tax
imposed by this Act does not apply to the proceeds of the
selling price of property transferred as an incident to the
sale of service on or after July 1, 2003 and on or before
December 31, 2013 but applies to 100% of the selling price
thereafter.
At the election of any registered serviceman made for each
fiscal year, sales of service in which the aggregate annual
cost price of tangible personal property transferred as an
incident to the sales of service is less than 35%, or 75% in

HB4155 - 32 - LRB096 11814 HLH 22657 b
the case of servicemen transferring prescription drugs or
servicemen engaged in graphic arts production, of the aggregate
annual total gross receipts from all sales of service, the tax
imposed by this Act shall be based on the serviceman's cost
price of the tangible personal property transferred incident to
the sale of those services.
The tax shall be imposed at the rate of 1% on food prepared
for immediate consumption and transferred incident to a sale of
service subject to this Act or the Service Occupation Tax Act
by an entity licensed under the Hospital Licensing Act, the
Nursing Home Care Act, or the Child Care Act of 1969. The tax
shall also be imposed at the rate of 1% on food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, soft drinks, and food
that has been prepared for immediate consumption and is not
otherwise included in this paragraph) and prescription and
nonprescription medicines, drugs, medical appliances,
modifications to a motor vehicle for the purpose of rendering
it usable by a disabled person, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use. For the purposes of this Section, the term "soft drinks"
means any complete, finished, ready-to-use, non-alcoholic
drink, whether carbonated or not, including but not limited to
soda water, cola, fruit juice, vegetable juice, carbonated
water, and all other preparations commonly known as soft drinks
of whatever kind or description that are contained in any

HB4155 - 33 - LRB096 11814 HLH 22657 b
closed or sealed can, carton, or container, regardless of size.
"Soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the
Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act, "food for
human consumption that is to be consumed off the premises where
it is sold" includes all food sold through a vending machine,
except soft drinks and food products that are dispensed hot
from a vending machine, regardless of the location of the
vending machine.
(Source: P.A. 93-17, eff. 6-11-03.)
Section 25. The Retailers' Occupation Tax Act is amended by
changing Sections 2-10 as follows:
(35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
Sec. 2-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
gross receipts from sales of tangible personal property made in
the course of business.
Beginning on July 1, 2000 and through December 31, 2000 and
beginning again on July 1, 2009, with respect to motor fuel, as
defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
as defined in Section 3-40 of the Use Tax Act, the tax is
imposed at the rate of 1.25%.

HB4155 - 34 - LRB096 11814 HLH 22657 b
Within 14 days after the effective date of this amendatory
Act of the 91st General Assembly, each retailer of motor fuel
and gasohol shall cause the following notice to be posted in a
prominently visible place on each retail dispensing device that
is used to dispense motor fuel or gasohol in the State of
Illinois: "As of July 1, 2000, the State of Illinois has
eliminated the State's share of sales tax on motor fuel and
gasohol through December 31, 2000. The price on this pump
should reflect the elimination of the tax." The notice shall be
printed in bold print on a sign that is no smaller than 4
inches by 8 inches. The sign shall be clearly visible to
customers. Any retailer who fails to post or maintain a
required sign through December 31, 2000 is guilty of a petty
offense for which the fine shall be $500 per day per each
retail premises where a violation occurs.
With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act applies to (i) 70% of the proceeds of
sales made on or after January 1, 1990, and before July 1,
2003, (ii) 80% of the proceeds of sales made on or after July
1, 2003 and on or before December 31, 2013, and (iii) 100% of
the proceeds of sales made thereafter. If, at any time,
however, the tax under this Act on sales of gasohol, as defined
in the Use Tax Act, is imposed at the rate of 1.25%, then the
tax imposed by this Act applies to 100% of the proceeds of
sales of gasohol made during that time.
With respect to majority blended ethanol fuel, as defined

HB4155 - 35 - LRB096 11814 HLH 22657 b
in the Use Tax Act, the tax imposed by this Act does not apply
to the proceeds of sales made on or after July 1, 2003 and on or
before December 31, 2013 but applies to 100% of the proceeds of
sales made thereafter.
With respect to biodiesel blends, as defined in the Use Tax
Act, with no less than 1% and no more than 10% biodiesel, the
tax imposed by this Act applies to (i) 80% of the proceeds of
sales made on or after July 1, 2003 and on or before December
31, 2013 and (ii) 100% of the proceeds of sales made
thereafter. If, at any time, however, the tax under this Act on
sales of biodiesel blends, as defined in the Use Tax Act, with
no less than 1% and no more than 10% biodiesel is imposed at
the rate of 1.25%, then the tax imposed by this Act applies to
100% of the proceeds of sales of biodiesel blends with no less
than 1% and no more than 10% biodiesel made during that time.
With respect to 100% biodiesel, as defined in the Use Tax
Act, and biodiesel blends, as defined in the Use Tax Act, with
more than 10% but no more than 99% biodiesel, the tax imposed
by this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2013 but
applies to 100% of the proceeds of sales made thereafter.
With respect to food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances,

HB4155 - 36 - LRB096 11814 HLH 22657 b
modifications to a motor vehicle for the purpose of rendering
it usable by a disabled person, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, the tax is imposed at the rate of 1%. For the purposes of
this Section, the term "soft drinks" means any complete,
finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including but not limited to soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size. "Soft
drinks" does not include coffee, tea, non-carbonated water,
infant formula, milk or milk products as defined in the Grade A
Pasteurized Milk and Milk Products Act, or drinks containing
50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act, "food for
human consumption that is to be consumed off the premises where
it is sold" includes all food sold through a vending machine,
except soft drinks and food products that are dispensed hot
from a vending machine, regardless of the location of the
vending machine.
(Source: P.A. 93-17, eff. 6-11-03.)
Section 30. The Motor Fuel Tax Law is amended by changing
Sections 2 and 8 and by adding Section 8b as follows:

HB4155 - 37 - LRB096 11814 HLH 22657 b
(35 ILCS 505/2) (from Ch. 120, par. 418)
Sec. 2. A tax is imposed on the privilege of operating
motor vehicles upon the public highways and recreational-type
watercraft upon the waters of this State.
(a) Prior to August 1, 1989, the tax is imposed at the rate
of 13 cents per gallon on all motor fuel used in motor vehicles
operating on the public highways and recreational type
watercraft operating upon the waters of this State. Beginning
on August 1, 1989 and until January 1, 1990, the rate of the
tax imposed in this paragraph shall be 16 cents per gallon.
Beginning January 1, 1990, the rate of tax imposed in this
paragraph shall be 19 cents per gallon.
(b) The tax on the privilege of operating motor vehicles
which use diesel fuel shall be the rate according to paragraph
(a) plus an additional 2 1/2 cents per gallon. "Diesel fuel" is
defined as any product intended for use or offered for sale as
a fuel for engines in which the fuel is injected into the
combustion chamber and ignited by pressure without electric
spark.
(c) A tax is imposed upon the privilege of engaging in the
business of selling motor fuel as a retailer or reseller on all
motor fuel used in motor vehicles operating on the public
highways and recreational type watercraft operating upon the
waters of this State: (1) at the rate of 3 cents per gallon on
motor fuel owned or possessed by such retailer or reseller at
12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents per

HB4155 - 38 - LRB096 11814 HLH 22657 b
gallon on motor fuel owned or possessed by such retailer or
reseller at 12:01 A.M. on January 1, 1990.
Retailers and resellers who are subject to this additional
tax shall be required to inventory such motor fuel and pay this
additional tax in a manner prescribed by the Department of
Revenue.
The tax imposed in this paragraph (c) shall be in addition
to all other taxes imposed by the State of Illinois or any unit
of local government in this State.
(d) Except as provided in Section 2a, the collection of a
tax based on gallonage of gasoline used for the propulsion of
any aircraft is prohibited on and after October 1, 1979.
(e) The collection of a tax, based on gallonage of all
products commonly or commercially known or sold as 1-K
kerosene, regardless of its classification or uses, is
prohibited (i) on and after July 1, 1992 until December 31,
1999, except when the 1-K kerosene is either: (1) delivered
into bulk storage facilities of a bulk user, or (2) delivered
directly into the fuel supply tanks of motor vehicles and (ii)
on and after January 1, 2000. Beginning on January 1, 2000, the
collection of a tax, based on gallonage of all products
commonly or commercially known or sold as 1-K kerosene,
regardless of its classification or uses, is prohibited except
when the 1-K kerosene is delivered directly into a storage tank
that is located at a facility that has withdrawal facilities
that are readily accessible to and are capable of dispensing

HB4155 - 39 - LRB096 11814 HLH 22657 b
1-K kerosene into the fuel supply tanks of motor vehicles.
Any person who sells or uses 1-K kerosene for use in motor
vehicles upon which the tax imposed by this Law has not been
paid shall be liable for any tax due on the sales or use of 1-K
kerosene.
(f) In addition to the taxes established in the foregoing
subsections, a tax is imposed on the privilege of operating
motor vehicles upon the public highways and operating
recreational type watercraft upon the waters of this State. For
State fiscal year 2010, the tax imposed by this paragraph is at
the rate of $0.150 per gallon on all motor fuel used in motor
vehicles operating on the public highways, recreational type
watercraft operating upon the waters, special fuel as defined
in Section 1.13, and diesel fuel sold in this State. For each
State fiscal year thereafter, the rate of tax is adjusted over
the tax rate of the previous State fiscal year by the annual
rate of increase or decrease, for the previous calendar year,
of the Consumer Price Index for All Urban Consumers for all
items, published by the United States Bureau of Labor
Statistics. The purpose of this tax is to provide grants to
public entities in the State of Illinois for transportation
purposes as provided in Section 8b of this Act.
(Source: P.A. 93-17, eff. 6-11-03.)
(35 ILCS 505/8) (from Ch. 120, par. 424)
Sec. 8. Except as provided in Section 8a, Section 8b,

HB4155 - 40 - LRB096 11814 HLH 22657 b
subdivision (h)(1) of Section 12a, Section 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;
$2,250,000 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

HB4155 - 41 - LRB096 11814 HLH 22657 b
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

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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

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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, one-twelfth of $25,000,000 each month, for
the period July 1, 2000 through June 30, 2003, one-twelfth
of $30,000,000 each month, and $15,000,000 on July 1, 2003,
and $15,000,000 on January 1, 2004, and $15,000,000 on each
July 1 and October 1, or as soon thereafter as may be
practical, during the period July 1, 2004 through June 30,
2009, for the administration of the Vehicle Emissions
Inspection Law of 2005, 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

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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

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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

HB4155 - 46 - LRB096 11814 HLH 22657 b
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

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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

HB4155 - 48 - LRB096 11814 HLH 22657 b
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.

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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. 94-839, eff. 6-6-06; 95-744, eff. 7-18-08.)
(35 ILCS 505/8b new)
Sec. 8b. Distribution of proceeds into the Metropolitan
Transit and Road Improvement Fund.
(a) All money received by the Department under paragraph
(f) of Section 2 of this Act shall be deposited into a special
fund in the State treasury, to be known as the Metropolitan
Transit and Road Improvement Fund, and must be apportioned and
disbursed as follows:
(1) All of the proceeds collected from within the
counties of Cook, Lake, DuPage, Kane, McHenry, and Will
shall be distributed to the Regional Transportation
Authority and must be used to make grants to the service
boards for mass transit-related purposes.
(2) All of the proceeds collected from outside the
counties of Cook, Lake, DuPage, Kane, McHenry, and Will
shall be distributed to the Illinois Department of
Transportation and must be used for the following
transportation-related purposes in counties other than

HB4155 - 50 - LRB096 11814 HLH 22657 b
Cook, Lake, DuPage, Kane, McHenry, and Will: (i) the Road
Fund; (ii) the Downstate Transit Improvement Fund; and
(iii) payments made by the Department of Transportation to
Amtrak for passenger-train service in Illinois.
(c) The disbursement of any moneys under this Section may
not reduce any amount to be appropriated to a municipality,
township, or county, under any statutory local highway program
or discretionary local highway program.
Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 99. Effective date. This Act takes effect July 1,