Bill Text: IL HB4738 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Motor Fuel Tax Law. Provides that, on and after July 1, 2020, marine fuel is exempt from the tax imposed under the Act. Provides that "marine fuel" means motor fuel specially formulated to be used in the propulsion of watercraft. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB4738 Detail]

Download: Illinois-2019-HB4738-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB4738 Introduced , by Rep. C.D. Davidsmeyer SYNOPSIS AS INTRODUCED:
35 ILCS 505/1.30 new
35 ILCS 505/2 from Ch. 120, par. 418
Amends the Motor Fuel Tax Law. Provides that, on and after July 1, 2020, marine fuel is exempt from the tax imposed under the Act. Provides that "marine fuel" means motor fuel specially formulated to be used in the propulsion of watercraft. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Motor Fuel Tax Law is amended by changing
Section 2 and by adding Section 1.30 as follows:
(35 ILCS 505/1.30 new)
Sec. 1.30. Marine fuel. "Marine fuel" means motor fuel
specially formulated to be used in the propulsion of
watercraft.
(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 and until July 1, 2019, the rate of
tax imposed in this paragraph, including the tax on compressed
natural gas, shall be 19 cents per gallon. Beginning July 1,

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2019, the rate of tax imposed in this paragraph shall be 38
cents per gallon and increased on July 1 of each subsequent
year by an amount equal to the percentage increase, if any, in
the Consumer Price Index for All Urban Consumers for all items
published by the United States Department of Labor for the 12
months ending in March of each year.
(b) The tax on the privilege of operating motor vehicles
which use diesel fuel, liquefied natural gas, or propane shall
be the rate according to paragraph (a) plus an additional 2 1/2
cents per gallon. Beginning July 1, 2019, the rate of tax
imposed in this paragraph shall be 7.5 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
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

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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, and
the collection of a tax based on gallonage of special fuel used
for the propulsion of any aircraft is prohibited on and after
December 1, 2019.
(d-5) On and after July 1, 2020, marine fuel, as defined in
Section 1.30, is exempt from the tax imposed under this Act.
(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

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that are readily accessible to and are capable of dispensing
1-K kerosene into the fuel supply tanks of motor vehicles. For
purposes of this subsection (e), a facility is considered to
have withdrawal facilities that are not "readily accessible to
and capable of dispensing 1-K kerosene into the fuel supply
tanks of motor vehicles" only if the 1-K kerosene is delivered
from: (i) a dispenser hose that is short enough so that it will
not reach the fuel supply tank of a motor vehicle or (ii) a
dispenser that is enclosed by a fence or other physical barrier
so that a vehicle cannot pull alongside the dispenser to permit
fueling.
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.
(Source: P.A. 100-9, eff. 7-1-17; 101-10, eff. 6-5-19; 101-32,
eff. 6-28-19; revised 7-12-19.)
Section 99. Effective date. This Act takes effect upon
becoming law.