Bill Text: IL HB4583 | 2021-2022 | 102nd General Assembly | Introduced


Bill Title: Amends the Municipal Motor Fuel Tax Law in the Illinois Municipal Code. Provides that, for purposes of the Law, a municipality is "in a county with a population of over 3,000,000 inhabitants" if any portion of the territory of the municipality is located in such a county. Provides that, notwithstanding any provision of the Law to the contrary, a municipality whose territory lies partially in a county with a population of over 3,000,000 inhabitants and partially outside such a county may, in the alternative, impose the tax authorized under the Law in only that portion of the municipality that lies in a county with a population of over 3,000,000 inhabitants. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2022-01-21 - Referred to Rules Committee [HB4583 Detail]

Download: Illinois-2021-HB4583-Introduced.html


102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4583

Introduced , by Rep. Kambium Buckner

SYNOPSIS AS INTRODUCED:
65 ILCS 5/8-11-2.3

Amends the Municipal Motor Fuel Tax Law in the Illinois Municipal Code. Provides that, for purposes of the Law, a municipality is "in a county with a population of over 3,000,000 inhabitants" if any portion of the territory of the municipality is located in such a county. Provides that, notwithstanding any provision of the Law to the contrary, a municipality whose territory lies partially in a county with a population of over 3,000,000 inhabitants and partially outside such a county may, in the alternative, impose the tax authorized under the Law in only that portion of the municipality that lies in a county with a population of over 3,000,000 inhabitants. Effective immediately.
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A BILL FOR

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1 AN ACT concerning local government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Municipal Code is amended by
5changing Section 8-11-2.3 as follows:
6 (65 ILCS 5/8-11-2.3)
7 Sec. 8-11-2.3. Municipal Motor Fuel Tax Law.
8Notwithstanding any other provision of law, in addition to any
9other tax that may be imposed, a municipality in a county with
10a population of over 3,000,000 inhabitants may also impose, by
11ordinance, a tax upon all persons engaged in the municipality
12in the business of selling motor fuel, as defined in the Motor
13Fuel Tax Law, at retail for the operation of motor vehicles
14upon public highways or for the operation of recreational
15watercraft upon waterways. The tax may be imposed, in one cent
16increments, at a rate not to exceed $0.03 per gallon of motor
17fuel sold at retail within the municipality for the purpose of
18use or consumption and not for the purpose of resale. The tax
19may not be imposed under this Section on aviation fuel, as
20defined in Section 3 of the Retailers' Occupation Tax Act.
21 For purposes of this Section, a municipality is "in a
22county with a population of over 3,000,000 inhabitants" if any
23portion of the territory of the municipality is located in

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1such a county. Notwithstanding any provisions of this Section
2to the contrary, a municipality whose territory lies partially
3in a county with a population of over 3,000,000 inhabitants
4and partially outside such a county may, in the alternative,
5impose the tax authorized under this Section in only that
6portion of the municipality that lies in a county with a
7population of over 3,000,000 inhabitants.
8 Persons subject to any tax imposed under the authority
9granted in this Section may reimburse themselves for their
10seller's tax liability hereunder by separately stating that
11tax as an additional charge, which charge may be stated in
12combination, in a single amount, with State tax which sellers
13are required to collect under the Use Tax Act, pursuant to such
14bracket schedules as the Department may prescribe.
15 A tax imposed pursuant to this Section, and all civil
16penalties that may be assessed as an incident thereof, shall
17be administered, collected, and enforced by the Department of
18Revenue in the same manner as the tax imposed under the
19Retailers' Occupation Tax Act, as now or hereafter amended,
20insofar as may be practicable; except that in the event of a
21conflict with the provisions of this Section, this Section
22shall control. The Department of Revenue shall have full power
23to: administer and enforce this Section; collect all taxes and
24penalties due hereunder; dispose of taxes and penalties so
25collected in the manner hereinafter provided; and determine
26all rights to credit memoranda arising on account of the

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1erroneous payment of tax or penalty hereunder.
2 Whenever the Department determines that a refund shall be
3made under this Section to a claimant instead of issuing a
4credit memorandum, the Department shall notify the State
5Comptroller, who shall cause the order to be drawn for the
6amount specified, and to the person named, in the notification
7from the Department. The refund shall be paid by the State
8Treasurer out of the Municipal Motor Fuel Tax Fund.
9 The Department shall immediately pay over to the State
10Treasurer, ex officio, as trustee, all taxes and penalties
11collected under this Section. Those taxes and penalties shall
12be deposited into the Municipal Motor Fuel Tax Fund, a trust
13fund created in the State treasury. Moneys in the Municipal
14Motor Fuel Tax Fund shall be used to make payments to
15municipalities and for the payment of refunds under this
16Section.
17 On or before the 25th day of each calendar month, the
18Department shall prepare and certify to the State Comptroller
19the disbursement of stated sums of money to named
20municipalities for which taxpayers have paid taxes or
21penalties hereunder to the Department during the second
22preceding calendar month. The amount to be paid to each
23municipality shall be the amount (not including credit
24memoranda) collected under this Section from retailers within
25the municipality during the second preceding calendar month by
26the Department, plus an amount the Department determines is

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1necessary to offset amounts that were erroneously paid to a
2different municipality, and not including an amount equal to
3the amount of refunds made during the second preceding
4calendar month by the Department on behalf of the
5municipality, and not including any amount that the Department
6determines is necessary to offset any amounts that were
7payable to a different municipality but were erroneously paid
8to the municipality, less 1.5% of the remainder, which the
9Department shall transfer into the Tax Compliance and
10Administration Fund. The Department, at the time of each
11monthly disbursement, shall prepare and certify to the State
12Comptroller the amount to be transferred into the Tax
13Compliance and Administration Fund under this Section. Within
1410 days after receipt by the Comptroller of the disbursement
15certification to the municipalities and the Tax Compliance and
16Administration Fund provided for in this Section to be given
17to the Comptroller by the Department, the Comptroller shall
18cause the orders to be drawn for the respective amounts in
19accordance with the directions contained in the certification.
20 Nothing in this Section shall be construed to authorize a
21municipality to impose a tax upon the privilege of engaging in
22any business which under the Constitution of the United States
23may not be made the subject of taxation by this State.
24 An ordinance or resolution imposing or discontinuing the
25tax under this Section or effecting a change in the rate
26thereof shall either: (i) be adopted and a certified copy

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1thereof filed with the Department on or before the first day of
2April, whereupon the Department shall proceed to administer
3and enforce this Section as of the first day of July next
4following the adoption and filing; or (ii) be adopted and a
5certified copy thereof filed with the Department on or before
6the first day of October, whereupon the Department shall
7proceed to administer and enforce this Section as of the first
8day of January next following the adoption and filing.
9 An ordinance adopted in accordance with the provisions of
10this Section in effect before the effective date of this
11amendatory Act of the 101st General Assembly shall be deemed
12to impose the tax in accordance with the provisions of this
13Section as amended by this amendatory Act of the 101st General
14Assembly and shall be administered by the Department of
15Revenue in accordance with the provisions of this Section as
16amended by this amendatory Act of the 101st General Assembly;
17provided that, on or before October 1, 2020, the municipality
18adopts and files a certified copy of a superseding ordinance
19that imposes the tax in accordance with the provisions of this
20Section as amended by this amendatory Act of the 101st General
21Assembly. If a superseding ordinance is not so adopted and
22filed, then the tax imposed in accordance with the provisions
23of this Section in effect before the effective date of this
24amendatory Act of the 101st General Assembly shall be
25discontinued on January 1, 2021.
26 This Section shall be known and may be cited as the

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1Municipal Motor Fuel Tax Law.
2(Source: P.A. 101-32, eff. 6-28-19; 101-604, eff. 12-13-19.)
3 Section 99. Effective date. This Act takes effect
4immediately.
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