Illinois 2023-2024 Regular Session

Illinois House Bill HB2974 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2974 Introduced , by Rep. Christopher "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, 2023, 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. LRB103 28329 HLH 54708 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2974 Introduced , by Rep. Christopher "C.D" Davidsmeyer SYNOPSIS AS INTRODUCED: 35 ILCS 505/1.30 new 35 ILCS 505/2 from Ch. 120, par. 418 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, 2023, 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. LRB103 28329 HLH 54708 b LRB103 28329 HLH 54708 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2974 Introduced , by Rep. Christopher "C.D" Davidsmeyer SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 505/1.30 new 35 ILCS 505/2 from Ch. 120, par. 418 35 ILCS 505/1.30 new 35 ILCS 505/2 from Ch. 120, par. 418
4	4	35 ILCS 505/1.30 new
5	5	35 ILCS 505/2 from Ch. 120, par. 418
6	6	Amends the Motor Fuel Tax Law. Provides that, on and after July 1, 2023, 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.
7	7	LRB103 28329 HLH 54708 b LRB103 28329 HLH 54708 b
8	8	LRB103 28329 HLH 54708 b
9	9	A BILL FOR
10	10	HB2974LRB103 28329 HLH 54708 b HB2974 LRB103 28329 HLH 54708 b
11	11	HB2974 LRB103 28329 HLH 54708 b
12	12	1 AN ACT concerning revenue.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 5. The Motor Fuel Tax Law is amended by changing
16	16	5 Section 2 and by adding Section 1.30 as follows:
17	17	6 (35 ILCS 505/1.30 new)
18	18	7 Sec. 1.30. Marine fuel. "Marine fuel" means motor fuel
19	19	8 specially formulated to be used in the propulsion of
20	20	9 watercraft.
21	21	10 (35 ILCS 505/2) (from Ch. 120, par. 418)
22	22	11 Sec. 2. A tax is imposed on the privilege of operating
23	23	12 motor vehicles upon the public highways and recreational-type
24	24	13 watercraft upon the waters of this State.
25	25	14 (a) Prior to August 1, 1989, the tax is imposed at the rate
26	26	15 of 13 cents per gallon on all motor fuel used in motor vehicles
27	27	16 operating on the public highways and recreational type
28	28	17 watercraft operating upon the waters of this State. Beginning
29	29	18 on August 1, 1989 and until January 1, 1990, the rate of the
30	30	19 tax imposed in this paragraph shall be 16 cents per gallon.
31	31	20 Beginning January 1, 1990 and until July 1, 2019, the rate of
32	32	21 tax imposed in this paragraph, including the tax on compressed
33	33	22 natural gas, shall be 19 cents per gallon. Beginning July 1,
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2974 Introduced , by Rep. Christopher "C.D" Davidsmeyer SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 505/1.30 new 35 ILCS 505/2 from Ch. 120, par. 418 35 ILCS 505/1.30 new 35 ILCS 505/2 from Ch. 120, par. 418
39	39	35 ILCS 505/1.30 new
40	40	35 ILCS 505/2 from Ch. 120, par. 418
41	41	Amends the Motor Fuel Tax Law. Provides that, on and after July 1, 2023, 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.
42	42	LRB103 28329 HLH 54708 b LRB103 28329 HLH 54708 b
43	43	LRB103 28329 HLH 54708 b
44	44	A BILL FOR
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50	50	35 ILCS 505/1.30 new
51	51	35 ILCS 505/2 from Ch. 120, par. 418
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70	70	1 2019 and until July 1, 2020, the rate of tax imposed in this
71	71	2 paragraph shall be 38 cents per gallon. Beginning July 1, 2020
72	72	3 and until July 1, 2021, the rate of tax imposed in this
73	73	4 paragraph shall be 38.7 cents per gallon. Beginning July 1,
74	74	5 2021 and until January 1, 2023, the rate of tax imposed in this
75	75	6 paragraph shall be 39.2 cents per gallon. On January 1, 2023,
76	76	7 the rate of tax imposed in this paragraph shall be increased by
77	77	8 an amount equal to the percentage increase, if any, in the
78	78	9 Consumer Price Index for All Urban Consumers for all items
79	79	10 published by the United States Department of Labor for the 12
80	80	11 months ending in September of 2022. On July 1, 2023, and on
81	81	12 July 1 of each subsequent year, the rate of tax imposed in this
82	82	13 paragraph shall be increased by an amount equal to the
83	83	14 percentage increase, if any, in the Consumer Price Index for
84	84	15 All Urban Consumers for all items published by the United
85	85	16 States Department of Labor for the 12 months ending in March of
86	86	17 the year in which the increase takes place. The rate shall be
87	87	18 rounded to the nearest one-tenth of one cent.
88	88	19 (a-5) Beginning on July 1, 2022 and through December 31,
89	89	20 2022, each retailer of motor fuel shall cause the following
90	90	21 notice to be posted in a prominently visible place on each
91	91	22 retail dispensing device that is used to dispense motor fuel
92	92	23 in the State of Illinois: "As of July 1, 2022, the State of
93	93	24 Illinois has suspended the inflation adjustment to the motor
94	94	25 fuel tax through December 31, 2022. The price on this pump
95	95	26 should reflect the suspension of the tax increase." The notice
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106	106	1 shall be printed in bold print on a sign that is no smaller
107	107	2 than 4 inches by 8 inches. The sign shall be clearly visible to
108	108	3 customers. Any retailer who fails to post or maintain a
109	109	4 required sign through December 31, 2022 is guilty of a petty
110	110	5 offense for which the fine shall be $500 per day per each
111	111	6 retail premises where a violation occurs.
112	112	7 (b) Until July 1, 2019, the tax on the privilege of
113	113	8 operating motor vehicles which use diesel fuel, liquefied
114	114	9 natural gas, or propane shall be the rate according to
115	115	10 paragraph (a) plus an additional 2 1/2 cents per gallon.
116	116	11 Beginning July 1, 2019, the tax on the privilege of operating
117	117	12 motor vehicles which use diesel fuel, liquefied natural gas,
118	118	13 or propane shall be the rate according to subsection (a) plus
119	119	14 an additional 7.5 cents per gallon. "Diesel fuel" is defined
120	120	15 as any product intended for use or offered for sale as a fuel
121	121	16 for engines in which the fuel is injected into the combustion
122	122	17 chamber and ignited by pressure without electric spark.
123	123	18 (c) A tax is imposed upon the privilege of engaging in the
124	124	19 business of selling motor fuel as a retailer or reseller on all
125	125	20 motor fuel used in motor vehicles operating on the public
126	126	21 highways and recreational type watercraft operating upon the
127	127	22 waters of this State: (1) at the rate of 3 cents per gallon on
128	128	23 motor fuel owned or possessed by such retailer or reseller at
129	129	24 12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
130	130	25 per gallon on motor fuel owned or possessed by such retailer or
131	131	26 reseller at 12:01 A.M. on January 1, 1990.
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142	142	1 Retailers and resellers who are subject to this additional
143	143	2 tax shall be required to inventory such motor fuel and pay this
144	144	3 additional tax in a manner prescribed by the Department of
145	145	4 Revenue.
146	146	5 The tax imposed in this paragraph (c) shall be in addition
147	147	6 to all other taxes imposed by the State of Illinois or any unit
148	148	7 of local government in this State.
149	149	8 (d) Except as provided in Section 2a, the collection of a
150	150	9 tax based on gallonage of gasoline used for the propulsion of
151	151	10 any aircraft is prohibited on and after October 1, 1979, and
152	152	11 the collection of a tax based on gallonage of special fuel used
153	153	12 for the propulsion of any aircraft is prohibited on and after
154	154	13 December 1, 2019.
155	155	14 (d-5) On and after July 1, 2023, marine fuel, as defined in
156	156	15 Section 1.30, is exempt from the tax imposed under this Act.
157	157	16 (e) The collection of a tax, based on gallonage of all
158	158	17 products commonly or commercially known or sold as 1-K
159	159	18 kerosene, regardless of its classification or uses, is
160	160	19 prohibited (i) on and after July 1, 1992 until December 31,
161	161	20 1999, except when the 1-K kerosene is either: (1) delivered
162	162	21 into bulk storage facilities of a bulk user, or (2) delivered
163	163	22 directly into the fuel supply tanks of motor vehicles and (ii)
164	164	23 on and after January 1, 2000. Beginning on January 1, 2000, the
165	165	24 collection of a tax, based on gallonage of all products
166	166	25 commonly or commercially known or sold as 1-K kerosene,
167	167	26 regardless of its classification or uses, is prohibited except
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178	178	1 when the 1-K kerosene is delivered directly into a storage
179	179	2 tank that is located at a facility that has withdrawal
180	180	3 facilities that are readily accessible to and are capable of
181	181	4 dispensing 1-K kerosene into the fuel supply tanks of motor
182	182	5 vehicles. For purposes of this subsection (e), a facility is
183	183	6 considered to have withdrawal facilities that are not "readily
184	184	7 accessible to and capable of dispensing 1-K kerosene into the
185	185	8 fuel supply tanks of motor vehicles" only if the 1-K kerosene
186	186	9 is delivered from: (i) a dispenser hose that is short enough so
187	187	10 that it will not reach the fuel supply tank of a motor vehicle
188	188	11 or (ii) a dispenser that is enclosed by a fence or other
189	189	12 physical barrier so that a vehicle cannot pull alongside the
190	190	13 dispenser to permit fueling.
191	191	14 Any person who sells or uses 1-K kerosene for use in motor
192	192	15 vehicles upon which the tax imposed by this Law has not been
193	193	16 paid shall be liable for any tax due on the sales or use of 1-K
194	194	17 kerosene.
195	195	18 (Source: P.A. 101-10, eff. 6-5-19; 101-32, eff. 6-28-19;
196	196	19 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
197	197	20 Section 99. Effective date. This Act takes effect upon
198	198	21 becoming law.
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