Bill Text: IL SB0159 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-01-31 - Referred to Assignments [SB0159 Detail]

Download: Illinois-2023-SB0159-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0159 Introduced 1/31/2023, by Sen. Mattie Hunter SYNOPSIS AS INTRODUCED:
65 ILCS 5/8-11-2.3
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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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Municipal Code is amended by
changing Section 8-11-2.3 as follows:
(65 ILCS 5/8-11-2.3)
Sec. 8-11-2.3. Municipal Motor Fuel Tax Law.
Notwithstanding any other provision of law, in addition to any
other tax that may be imposed, a municipality in a county with
a population of over 3,000,000 inhabitants may also impose, by
ordinance, a tax upon all persons engaged in the municipality
in the business of selling motor fuel, as defined in the Motor
Fuel Tax Law, at retail for the operation of motor vehicles
upon public highways or for the operation of recreational
watercraft upon waterways. The tax may be imposed, in one cent
increments, at a rate not to exceed $0.03 per gallon of motor
fuel sold at retail within the municipality for the purpose of
use or consumption and not for the purpose of resale. The tax
may not be imposed under this Section on aviation fuel, as
defined in Section 3 of the Retailers' Occupation Tax Act.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that

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tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
A tax imposed pursuant to this Section, and all civil
penalties that may be assessed as an incident thereof, shall
be administered, collected, and enforced by the Department of
Revenue in the same manner as the tax imposed under the
Retailers' Occupation Tax Act, as now or hereafter amended,
insofar as may be practicable; except that in the event of a
conflict with the provisions of this Section, this Section
shall control. The Department of Revenue shall have full power
to: administer and enforce this Section; collect all taxes and
penalties due hereunder; dispose of taxes and penalties so
collected in the manner hereinafter provided; and determine
all rights to credit memoranda arising on account of the
erroneous payment of tax or penalty hereunder.
Whenever the Department determines that a refund shall be
made under this Section 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 the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Municipal Motor Fuel Tax Fund.
The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties

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collected under this Section. Those taxes and penalties shall
be deposited into the Municipal Motor Fuel Tax Fund, a trust
fund created in the State treasury. Moneys in the Municipal
Motor Fuel Tax Fund shall be used to make payments to
municipalities and for the payment of refunds under this
Section.
On or before the 25th day of each calendar month, the
Department shall prepare and certify to the State Comptroller
the disbursement of stated sums of money to named
municipalities for which taxpayers have paid taxes or
penalties hereunder to the Department during the second
preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda) collected under this Section from retailers within
the municipality during the second preceding calendar month by
the Department, plus an amount the Department determines is
necessary to offset amounts that were erroneously paid to a
different municipality, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of the
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different municipality but were erroneously paid
to the municipality, less 1.5% of the remainder, which the
Department shall transfer into the Tax Compliance and
Administration Fund. The Department, at the time of each

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monthly disbursement, shall prepare and certify to the State
Comptroller the amount to be transferred into the Tax
Compliance and Administration Fund under this Section. Within
10 days after receipt by the Comptroller of the disbursement
certification to the municipalities and the Tax Compliance and
Administration Fund 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 the certification.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing the
tax under this Section or effecting a change in the rate
thereof shall either: (i) be adopted and a certified copy
thereof filed with the Department on or before the first day of
April, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of July next
following the adoption and filing; or (ii) be adopted and a
certified copy thereof filed with the Department on or before
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following the adoption and filing.
An ordinance adopted in accordance with the provisions of
this Section in effect before the effective date of this

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amendatory Act of the 101st General Assembly shall be deemed
to impose the tax in accordance with the provisions of this
Section as amended by this amendatory Act of the 101st General
Assembly and shall be administered by the Department of
Revenue in accordance with the provisions of this Section as
amended by this amendatory Act of the 101st General Assembly;
provided that, on or before October 1, 2020, the municipality
adopts and files a certified copy of a superseding ordinance
that imposes the tax in accordance with the provisions of this
Section as amended by this amendatory Act of the 101st General
Assembly. If a superseding ordinance is not so adopted and
filed, then the tax imposed in accordance with the provisions
of this Section in effect before the effective date of this
amendatory Act of the 101st General Assembly shall be
discontinued on January 1, 2021.
This Section shall be known and may be cited as the
Municipal Motor Fuel Tax Law.
(Source: P.A. 101-32, eff. 6-28-19; 101-604, eff. 12-13-19.)
Section 99. Effective date. This Act takes effect upon
becoming law.