Bill Text: IL HB5215 | 2021-2022 | 102nd General Assembly | Introduced

---

Bill Title: Amends the Motor Fuel Tax Law. Provides that the tax rate under the Act shall be frozen beginning with the effective date of the amendatory Act and continuing for 24 months after that date. Provides that the Consumer Price Index adjustment under the Act shall be suspended. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-02-18 - Rule 19(a) / Re-referred to Rules Committee [HB5215 Detail]

Download: Illinois-2021-HB5215-Introduced.html

---

102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB5215 Introduced , by Rep. Chris Bos SYNOPSIS AS INTRODUCED:
35 ILCS 505/2 from Ch. 120, par. 418
Amends the Motor Fuel Tax Law. Provides that the tax rate under the Act shall be frozen beginning with the effective date of the amendatory Act and continuing for 24 months after that date. Provides that the Consumer Price Index adjustment under the Act shall be suspended. Effective immediately.
LRB102 22261 HLH 31394 b
A BILL FOR
HB5215 LRB102 22261 HLH 31394 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Motor Fuel Tax Law is amended by changing
Section 2 as follows:
(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,
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

HB5215 - 2 - LRB102 22261 HLH 31394 b
months ending in March of each year. The rate shall be rounded
to the nearest one-tenth of one cent.
(a-5) Beginning on the effective date of this amendatory
Act of the 102nd General Assembly and continuing for 24 months
after that date, the tax rate imposed by subsection (a) shall
be frozen. With respect to July 1 dates of each calendar year
that fall within this 24-month period, the Consumer Price
Index adjustment mandated within paragraph (a) shall be
suspended. Upon completion of this 24-month period, the
Consumer Price Index adjustment mandated within paragraph (a)
shall resume, but no action may be taken during or after that
date to adjust the tax with respect to Consumer Price Index
changes that took place within the confines of this 24-month
period.
(b) Until July 1, 2019, 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 tax on the privilege of operating
motor vehicles which use diesel fuel, liquefied natural gas,
or propane shall be the rate according to subsection (a) plus
an additional 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

HB5215 - 3 - LRB102 22261 HLH 31394 b
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
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.
(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

HB5215 - 4 - LRB102 22261 HLH 31394 b
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 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; 101-604, eff. 12-13-19.)
Section 99. Effective date. This Act takes effect upon

HB5215 - 5 - LRB102 22261 HLH 31394 b
becoming law.