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| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4424 Introduced , by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED:
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Amends the Illinois Municipal Code. Provides that all municipalities (currently, only municipalities in a county with a population of over 3,000,000 inhabitants) may impose a motor fuel tax. Effective immediately.
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| | A BILL FOR |
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| | HB4424 | | LRB102 22257 AWJ 31390 b |
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1 | | AN ACT concerning local government.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Municipal Code is amended by |
5 | | changing Section 8-11-2.3 as follows:
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6 | | (65 ILCS 5/8-11-2.3) |
7 | | Sec. 8-11-2.3. Municipal Motor Fuel Tax Law. |
8 | | Notwithstanding any other provision of law, in addition to any |
9 | | other tax that may be imposed, a municipality in a county with |
10 | | a population of over 3,000,000 inhabitants may also impose, by |
11 | | ordinance, a tax upon all persons engaged in the municipality |
12 | | in the business of selling motor fuel, as defined in the Motor |
13 | | Fuel Tax Law, at retail for the operation of motor vehicles |
14 | | upon public highways or for the operation of recreational |
15 | | watercraft upon waterways. The tax may be imposed, in one cent |
16 | | increments, at a rate not to exceed $0.03 per gallon of motor |
17 | | fuel sold at retail within the municipality for the purpose of |
18 | | use or consumption and not for the purpose of resale. The tax |
19 | | may not be imposed under this Section on aviation fuel, as |
20 | | defined in Section 3 of the Retailers' Occupation Tax Act. |
21 | | Persons subject to any tax imposed under the authority |
22 | | granted in this Section may reimburse themselves for their |
23 | | seller's tax liability hereunder by separately stating that |
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| | HB4424 | - 2 - | LRB102 22257 AWJ 31390 b |
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1 | | tax as an additional charge, which charge may be stated in |
2 | | combination, in a single amount, with State tax which sellers |
3 | | are required to collect under the Use Tax Act, pursuant to such |
4 | | bracket schedules as the Department may prescribe. |
5 | | A tax imposed pursuant to this Section, and all civil |
6 | | penalties that may be assessed as an incident thereof, shall |
7 | | be administered, collected, and enforced by the Department of |
8 | | Revenue in the same manner as the tax imposed under the |
9 | | Retailers' Occupation Tax Act, as now or hereafter amended, |
10 | | insofar as may be practicable; except that in the event of a |
11 | | conflict with the provisions of this Section, this Section |
12 | | shall control. The Department of Revenue shall have full power |
13 | | to: administer and enforce this Section; collect all taxes and |
14 | | penalties due hereunder; dispose of taxes and penalties so |
15 | | collected in the manner hereinafter provided; and determine |
16 | | all rights to credit memoranda arising on account of the |
17 | | erroneous payment of tax or penalty hereunder. |
18 | | Whenever the Department determines that a refund shall be |
19 | | made under this Section to a claimant instead of issuing a |
20 | | credit memorandum, the Department shall notify the State |
21 | | Comptroller, who shall cause the order to be drawn for the |
22 | | amount specified, and to the person named, in the notification |
23 | | from the Department. The refund shall be paid by the State |
24 | | Treasurer out of the Municipal Motor Fuel Tax Fund. |
25 | | The Department shall immediately pay over to the State |
26 | | Treasurer, ex officio, as trustee, all taxes and penalties |
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| | HB4424 | - 3 - | LRB102 22257 AWJ 31390 b |
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1 | | collected under this Section. Those taxes and penalties shall |
2 | | be deposited into the Municipal Motor Fuel Tax Fund, a trust |
3 | | fund created in the State treasury. Moneys in the Municipal |
4 | | Motor Fuel Tax Fund shall be used to make payments to |
5 | | municipalities and for the payment of refunds under this |
6 | | Section. |
7 | | On or before the 25th day of each calendar month, the |
8 | | Department shall prepare and certify to the State Comptroller |
9 | | the disbursement of stated sums of money to named |
10 | | municipalities for which taxpayers have paid taxes or |
11 | | penalties hereunder to the Department during the second |
12 | | preceding calendar month. The amount to be paid to each |
13 | | municipality shall be the amount (not including credit |
14 | | memoranda) collected under this Section from retailers within |
15 | | the municipality during the second preceding calendar month by |
16 | | the Department, plus an amount the Department determines is |
17 | | necessary to offset amounts that were erroneously paid to a |
18 | | different municipality, and not including an amount equal to |
19 | | the amount of refunds made during the second preceding |
20 | | calendar month by the Department on behalf of the |
21 | | municipality, and not including any amount that the Department |
22 | | determines is necessary to offset any amounts that were |
23 | | payable to a different municipality but were erroneously paid |
24 | | to the municipality, less 1.5% of the remainder, which the |
25 | | Department shall transfer into the Tax Compliance and |
26 | | Administration Fund. The Department, at the time of each |
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1 | | monthly disbursement, shall prepare and certify to the State |
2 | | Comptroller the amount to be transferred into the Tax |
3 | | Compliance and Administration Fund under this Section. Within |
4 | | 10 days after receipt by the Comptroller of the disbursement |
5 | | certification to the municipalities and the Tax Compliance and |
6 | | Administration Fund provided for in this Section to be given |
7 | | to the Comptroller by the Department, the Comptroller shall |
8 | | cause the orders to be drawn for the respective amounts in |
9 | | accordance with the directions contained in the certification.
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10 | | Nothing in this Section shall be construed to authorize a |
11 | | municipality to impose a tax upon the privilege of engaging in |
12 | | any business which under the Constitution of the United States |
13 | | may not be made the subject of taxation by this State. |
14 | | An ordinance or resolution imposing or discontinuing the |
15 | | tax under this Section or effecting a change in the rate |
16 | | thereof shall either: (i) be adopted and a certified copy |
17 | | thereof filed with the Department on or before the first day of |
18 | | April, whereupon the Department shall proceed to administer |
19 | | and enforce this Section as of the first day of July next |
20 | | following the adoption and filing; or (ii) be adopted and a |
21 | | certified copy thereof filed with the Department on or before |
22 | | the first day of October, whereupon the Department shall |
23 | | proceed to administer and enforce this Section as of the first |
24 | | day of January next following the adoption and filing. |
25 | | An ordinance adopted in accordance with the provisions of |
26 | | this Section in effect before the effective date of this |
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1 | | amendatory Act of the 101st General Assembly shall be deemed |
2 | | to impose the tax in accordance with the provisions of this |
3 | | Section as amended by this amendatory Act of the 101st General |
4 | | Assembly and shall be administered by the Department of |
5 | | Revenue in accordance with the provisions of this Section as |
6 | | amended by this amendatory Act of the 101st General Assembly; |
7 | | provided that, on or before October 1, 2020, the municipality |
8 | | adopts and files a certified copy of a superseding ordinance |
9 | | that imposes the tax in accordance with the provisions of this |
10 | | Section as amended by this amendatory Act of the 101st General |
11 | | Assembly. If a superseding ordinance is not so adopted and |
12 | | filed, then the tax imposed in accordance with the provisions |
13 | | of this Section in effect before the effective date of this |
14 | | amendatory Act of the 101st General Assembly shall be |
15 | | discontinued on January 1, 2021. |
16 | | This Section shall be known and may be cited as the |
17 | | Municipal Motor Fuel Tax Law. |
18 | | (Source: P.A. 101-32, eff. 6-28-19; 101-604, eff. 12-13-19.)
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19 | | Section 99. Effective date. This Act takes effect upon |
20 | | becoming law.
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