Illinois 2025-2026 Regular Session

Illinois House Bill HB1390 Latest Draft

Bill / Introduced Version Filed 01/15/2025

                            104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1390 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: 35 ILCS 505/1.2 from Ch. 120, par. 417.235 ILCS 505/1.20 from Ch. 120, par. 417.2035 ILCS 505/3d35 ILCS 505/5 from Ch. 120, par. 42135 ILCS 505/6 from Ch. 120, par. 42235 ILCS 505/7 from Ch. 120, par. 42335 ILCS 505/11.5 from Ch. 120, par. 427a35 ILCS 505/12 from Ch. 120, par. 42835 ILCS 505/12a from Ch. 120, par. 428a35 ILCS 505/13 from Ch. 120, par. 42935 ILCS 505/14a from Ch. 120, par. 430.135 ILCS 505/15 from Ch. 120, par. 43135 ILCS 505/16 from Ch. 120, par. 43235 ILCS 505/1.14 rep.35 ILCS 505/3a rep.35 ILCS 505/5a rep.35 ILCS 505/6a rep. Amends the Motor Fuel Tax Law. Repeals the definition of "supplier" and related provisions in the Motor Fuel Tax Law that establish various requirements for suppliers. Repeals a provision that prohibits a person other than a licensed distributor from acting as a supplier of special fuel within the State. Changes the definitions of "distributor" and "receiver". LRB104 07494 HLH 17537 b   A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1390 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:  35 ILCS 505/1.2 from Ch. 120, par. 417.235 ILCS 505/1.20 from Ch. 120, par. 417.2035 ILCS 505/3d35 ILCS 505/5 from Ch. 120, par. 42135 ILCS 505/6 from Ch. 120, par. 42235 ILCS 505/7 from Ch. 120, par. 42335 ILCS 505/11.5 from Ch. 120, par. 427a35 ILCS 505/12 from Ch. 120, par. 42835 ILCS 505/12a from Ch. 120, par. 428a35 ILCS 505/13 from Ch. 120, par. 42935 ILCS 505/14a from Ch. 120, par. 430.135 ILCS 505/15 from Ch. 120, par. 43135 ILCS 505/16 from Ch. 120, par. 43235 ILCS 505/1.14 rep.35 ILCS 505/3a rep.35 ILCS 505/5a rep.35 ILCS 505/6a rep. 35 ILCS 505/1.2 from Ch. 120, par. 417.2 35 ILCS 505/1.20 from Ch. 120, par. 417.20 35 ILCS 505/3d  35 ILCS 505/5 from Ch. 120, par. 421 35 ILCS 505/6 from Ch. 120, par. 422 35 ILCS 505/7 from Ch. 120, par. 423 35 ILCS 505/11.5 from Ch. 120, par. 427a 35 ILCS 505/12 from Ch. 120, par. 428 35 ILCS 505/12a from Ch. 120, par. 428a 35 ILCS 505/13 from Ch. 120, par. 429 35 ILCS 505/14a from Ch. 120, par. 430.1 35 ILCS 505/15 from Ch. 120, par. 431 35 ILCS 505/16 from Ch. 120, par. 432 35 ILCS 505/1.14 rep.  35 ILCS 505/3a rep.  35 ILCS 505/5a rep.  35 ILCS 505/6a rep.  Amends the Motor Fuel Tax Law. Repeals the definition of "supplier" and related provisions in the Motor Fuel Tax Law that establish various requirements for suppliers. Repeals a provision that prohibits a person other than a licensed distributor from acting as a supplier of special fuel within the State. Changes the definitions of "distributor" and "receiver".  LRB104 07494 HLH 17537 b     LRB104 07494 HLH 17537 b   A BILL FOR
104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1390 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
35 ILCS 505/1.2 from Ch. 120, par. 417.235 ILCS 505/1.20 from Ch. 120, par. 417.2035 ILCS 505/3d35 ILCS 505/5 from Ch. 120, par. 42135 ILCS 505/6 from Ch. 120, par. 42235 ILCS 505/7 from Ch. 120, par. 42335 ILCS 505/11.5 from Ch. 120, par. 427a35 ILCS 505/12 from Ch. 120, par. 42835 ILCS 505/12a from Ch. 120, par. 428a35 ILCS 505/13 from Ch. 120, par. 42935 ILCS 505/14a from Ch. 120, par. 430.135 ILCS 505/15 from Ch. 120, par. 43135 ILCS 505/16 from Ch. 120, par. 43235 ILCS 505/1.14 rep.35 ILCS 505/3a rep.35 ILCS 505/5a rep.35 ILCS 505/6a rep. 35 ILCS 505/1.2 from Ch. 120, par. 417.2 35 ILCS 505/1.20 from Ch. 120, par. 417.20 35 ILCS 505/3d  35 ILCS 505/5 from Ch. 120, par. 421 35 ILCS 505/6 from Ch. 120, par. 422 35 ILCS 505/7 from Ch. 120, par. 423 35 ILCS 505/11.5 from Ch. 120, par. 427a 35 ILCS 505/12 from Ch. 120, par. 428 35 ILCS 505/12a from Ch. 120, par. 428a 35 ILCS 505/13 from Ch. 120, par. 429 35 ILCS 505/14a from Ch. 120, par. 430.1 35 ILCS 505/15 from Ch. 120, par. 431 35 ILCS 505/16 from Ch. 120, par. 432 35 ILCS 505/1.14 rep.  35 ILCS 505/3a rep.  35 ILCS 505/5a rep.  35 ILCS 505/6a rep.
35 ILCS 505/1.2 from Ch. 120, par. 417.2
35 ILCS 505/1.20 from Ch. 120, par. 417.20
35 ILCS 505/3d
35 ILCS 505/5 from Ch. 120, par. 421
35 ILCS 505/6 from Ch. 120, par. 422
35 ILCS 505/7 from Ch. 120, par. 423
35 ILCS 505/11.5 from Ch. 120, par. 427a
35 ILCS 505/12 from Ch. 120, par. 428
35 ILCS 505/12a from Ch. 120, par. 428a
35 ILCS 505/13 from Ch. 120, par. 429
35 ILCS 505/14a from Ch. 120, par. 430.1
35 ILCS 505/15 from Ch. 120, par. 431
35 ILCS 505/16 from Ch. 120, par. 432
35 ILCS 505/1.14 rep.
35 ILCS 505/3a rep.
35 ILCS 505/5a rep.
35 ILCS 505/6a rep.
Amends the Motor Fuel Tax Law. Repeals the definition of "supplier" and related provisions in the Motor Fuel Tax Law that establish various requirements for suppliers. Repeals a provision that prohibits a person other than a licensed distributor from acting as a supplier of special fuel within the State. Changes the definitions of "distributor" and "receiver".
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A BILL FOR
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1  AN ACT concerning revenue.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Motor Fuel Tax Law is amended by changing
5  Sections 1.2, 1.20, 3d, 5, 6, 7, 11.5, 12, 12a, 13, 14a, 15,
6  and 16 as follows:
7  (35 ILCS 505/1.2) (from Ch. 120, par. 417.2)
8  Sec. 1.2. Distributor. "Distributor" means a person who
9  does any of the following: (1) either (i) produces motor fuel
10  in this State; (2) , refines motor fuel in this State; (3) ,
11  blends motor fuel in this State; (4) , compounds motor fuel in
12  this State; (5) or manufactures motor fuel in this State; (6) ,
13  or (ii) transports motor fuel into this State; (7) , or (iii)
14  exports motor fuel out of this State; or (8) , or (iv) engages
15  in the distribution of motor fuel primarily by tank car or tank
16  truck, or both, and who operates an Illinois bulk plant where
17  he or she has active bulk storage capacity of not less than
18  30,000 gallons for gasoline as defined in item (A) of Section 5
19  of this Law.
20  "Distributor" does not, however, include a person who
21  receives or transports into this State and sells or uses motor
22  fuel under such circumstances as preclude the collection of
23  the tax herein imposed, by reason of the provisions of the

 

104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1390 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
35 ILCS 505/1.2 from Ch. 120, par. 417.235 ILCS 505/1.20 from Ch. 120, par. 417.2035 ILCS 505/3d35 ILCS 505/5 from Ch. 120, par. 42135 ILCS 505/6 from Ch. 120, par. 42235 ILCS 505/7 from Ch. 120, par. 42335 ILCS 505/11.5 from Ch. 120, par. 427a35 ILCS 505/12 from Ch. 120, par. 42835 ILCS 505/12a from Ch. 120, par. 428a35 ILCS 505/13 from Ch. 120, par. 42935 ILCS 505/14a from Ch. 120, par. 430.135 ILCS 505/15 from Ch. 120, par. 43135 ILCS 505/16 from Ch. 120, par. 43235 ILCS 505/1.14 rep.35 ILCS 505/3a rep.35 ILCS 505/5a rep.35 ILCS 505/6a rep. 35 ILCS 505/1.2 from Ch. 120, par. 417.2 35 ILCS 505/1.20 from Ch. 120, par. 417.20 35 ILCS 505/3d  35 ILCS 505/5 from Ch. 120, par. 421 35 ILCS 505/6 from Ch. 120, par. 422 35 ILCS 505/7 from Ch. 120, par. 423 35 ILCS 505/11.5 from Ch. 120, par. 427a 35 ILCS 505/12 from Ch. 120, par. 428 35 ILCS 505/12a from Ch. 120, par. 428a 35 ILCS 505/13 from Ch. 120, par. 429 35 ILCS 505/14a from Ch. 120, par. 430.1 35 ILCS 505/15 from Ch. 120, par. 431 35 ILCS 505/16 from Ch. 120, par. 432 35 ILCS 505/1.14 rep.  35 ILCS 505/3a rep.  35 ILCS 505/5a rep.  35 ILCS 505/6a rep.
35 ILCS 505/1.2 from Ch. 120, par. 417.2
35 ILCS 505/1.20 from Ch. 120, par. 417.20
35 ILCS 505/3d
35 ILCS 505/5 from Ch. 120, par. 421
35 ILCS 505/6 from Ch. 120, par. 422
35 ILCS 505/7 from Ch. 120, par. 423
35 ILCS 505/11.5 from Ch. 120, par. 427a
35 ILCS 505/12 from Ch. 120, par. 428
35 ILCS 505/12a from Ch. 120, par. 428a
35 ILCS 505/13 from Ch. 120, par. 429
35 ILCS 505/14a from Ch. 120, par. 430.1
35 ILCS 505/15 from Ch. 120, par. 431
35 ILCS 505/16 from Ch. 120, par. 432
35 ILCS 505/1.14 rep.
35 ILCS 505/3a rep.
35 ILCS 505/5a rep.
35 ILCS 505/6a rep.
Amends the Motor Fuel Tax Law. Repeals the definition of "supplier" and related provisions in the Motor Fuel Tax Law that establish various requirements for suppliers. Repeals a provision that prohibits a person other than a licensed distributor from acting as a supplier of special fuel within the State. Changes the definitions of "distributor" and "receiver".
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A BILL FOR

 

 

35 ILCS 505/1.2 from Ch. 120, par. 417.2
35 ILCS 505/1.20 from Ch. 120, par. 417.20
35 ILCS 505/3d
35 ILCS 505/5 from Ch. 120, par. 421
35 ILCS 505/6 from Ch. 120, par. 422
35 ILCS 505/7 from Ch. 120, par. 423
35 ILCS 505/11.5 from Ch. 120, par. 427a
35 ILCS 505/12 from Ch. 120, par. 428
35 ILCS 505/12a from Ch. 120, par. 428a
35 ILCS 505/13 from Ch. 120, par. 429
35 ILCS 505/14a from Ch. 120, par. 430.1
35 ILCS 505/15 from Ch. 120, par. 431
35 ILCS 505/16 from Ch. 120, par. 432
35 ILCS 505/1.14 rep.
35 ILCS 505/3a rep.
35 ILCS 505/5a rep.
35 ILCS 505/6a rep.



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1  constitution and statutes of the United States. However, a
2  person operating a motor vehicle into the State, may transport
3  motor fuel in the ordinary fuel tank attached to the motor
4  vehicle for the operation of the motor vehicle, without being
5  considered a distributor. Any railroad registered under
6  Section 18c-7201 of the Illinois Vehicle Code may deliver
7  special fuel directly into the fuel supply tank of a
8  locomotive owned, operated, or controlled by any other
9  railroad registered under Section 18c-7201 of the Illinois
10  Vehicle Code without being considered a distributor or
11  supplier.
12  (Source: P.A. 96-1384, eff. 7-29-10.)
13  (35 ILCS 505/1.20) (from Ch. 120, par. 417.20)
14  Sec. 1.20. "Receiver" means a person who either produces,
15  refines, blends, compounds or manufactures fuel in this State,
16  or transports fuel into this State or receives fuel
17  transported to him from without the State or exports fuel out
18  of this State, or who is engaged in distribution of fuel
19  primarily by tank car or tank truck, or both, and who operates
20  an Illinois bulk plant where he has active fuel bulk storage
21  capacity of not less than 30,000 gallons.
22  (Source: P.A. 86-125; 86-958.)
23  (35 ILCS 505/3d)
24  Sec. 3d. Right to blend.

 

 

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1  (a) A distributor who is properly licensed and permitted
2  as a blender pursuant to this Act may blend petroleum-based
3  diesel fuel with biodiesel and sell the blended or unblended
4  product on any premises owned and operated by the distributor
5  for the purpose of supporting or facilitating the retail sale
6  of motor fuel.
7  (b) A refiner or distributor supplier of petroleum-based
8  diesel fuel or biodiesel shall not refuse to sell or transport
9  to a distributor who is properly licensed and permitted as a
10  blender pursuant to this Act any petroleum-based diesel fuel
11  or biodiesel based on the distributor's or dealer's intent to
12  use that product for blending.
13  (Source: P.A. 102-700, eff. 4-19-22.)
14  (35 ILCS 505/5) (from Ch. 120, par. 421)
15  Sec. 5. Distributor's monthly return. Except as
16  hereinafter provided, a person holding a valid unrevoked
17  license to act as a distributor of motor fuel shall, between
18  the 1st and 20th days of each calendar month, make return to
19  the Department, showing an itemized statement of the number of
20  invoiced gallons of motor fuel of the types specified in this
21  Section which were purchased, acquired, received, or exported
22  during the preceding calendar month; the amount of such motor
23  fuel produced, refined, compounded, manufactured, blended,
24  sold, distributed, exported, and used by the licensed
25  distributor during the preceding calendar month; the amount of

 

 

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1  such motor fuel lost or destroyed during the preceding
2  calendar month; the amount of such motor fuel on hand at the
3  close of business for such month; and such other reasonable
4  information as the Department may require. If a distributor's
5  only activities with respect to motor fuel are either: (1)
6  production of alcohol in quantities of less than 10,000 proof
7  gallons per year or (2) blending alcohol in quantities of less
8  than 10,000 proof gallons per year which such distributor has
9  produced, he shall file returns on an annual basis with the
10  return for a given year being due by January 20 of the
11  following year. Distributors whose total production of alcohol
12  (whether blended or not) exceeds 10,000 proof gallons per
13  year, based on production during the preceding (calendar) year
14  or as reasonably projected by the Department if one calendar
15  year's record of production cannot be established, shall file
16  returns between the 1st and 20th days of each calendar month as
17  hereinabove provided.
18  The types of motor fuel referred to in the preceding
19  paragraph are: (A) All products commonly or commercially known
20  or sold as gasoline (including casing-head and absorption or
21  natural gasoline), gasohol, motor benzol or motor benzene
22  regardless of their classification or uses; and (B) all
23  combustible gases, not including liquefied natural gas, which
24  exist in a gaseous state at 60 degrees Fahrenheit and at 14.7
25  pounds per square inch absolute including, but not limited to,
26  liquefied petroleum gases used for highway purposes; and (C)

 

 

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1  special fuel. Only those quantities of combustible gases
2  (example (B) above) which are used or sold by the distributor
3  to be used to propel motor vehicles on the public highways, or
4  which are delivered into a storage tank that is located at a
5  facility that has withdrawal facilities which are readily
6  accessible to and are capable of dispensing combustible gases
7  into the fuel supply tanks of motor vehicles, shall be subject
8  to return. Distributors of liquefied natural gas are not
9  required to make returns under this Section with respect to
10  that liquefied natural gas unless (i) the liquefied natural
11  gas is dispensed into the fuel supply tank of any motor vehicle
12  or (ii) the liquefied natural gas is delivered into a storage
13  tank that is located at a facility that has withdrawal
14  facilities which are readily accessible to and are capable of
15  dispensing liquefied natural gas into the fuel supply tanks of
16  motor vehicles. For purposes of this Section, a facility is
17  considered to have withdrawal facilities that are not "readily
18  accessible to and capable of dispensing combustible gases into
19  the fuel supply tanks of motor vehicles" only if the
20  combustible gases or liquefied natural gas are delivered from:
21  (i) a dispenser hose that is short enough so that it will not
22  reach the fuel supply tank of a motor vehicle or (ii) a
23  dispenser that is enclosed by a fence or other physical
24  barrier so that a vehicle cannot pull alongside the dispenser
25  to permit fueling. For the purposes of this Act, liquefied
26  petroleum gases shall mean and include any material having a

 

 

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1  vapor pressure not exceeding that allowed for commercial
2  propane composed predominantly of the following hydrocarbons,
3  either by themselves or as mixtures: Propane, Propylene,
4  Butane (normal butane or iso-butane) and Butylene (including
5  isomers).
6  In case of a sale of special fuel to someone other than a
7  licensed distributor, or a licensed supplier, for a use other
8  than in motor vehicles, the distributor shall show in his
9  return the amount of invoiced gallons sold and the name and
10  address of the purchaser in addition to any other information
11  the Department may require.
12  All special fuel sold or used for non-highway purposes
13  must have a dye added in accordance with Section 4d of this
14  Law.
15  In case of a tax-free sale, as provided in Section 6, of
16  motor fuel which the distributor is required by this Section
17  to include in his return to the Department, the distributor in
18  his return shall show: (1) If the sale is made to another
19  licensed distributor the amount sold and the name, address and
20  license number of the purchasing distributor; (2) if the sale
21  is made to a person where delivery is made outside of this
22  State the name and address of such purchaser and the point of
23  delivery together with the date and amount delivered; (3) if
24  the sale is made to the Federal Government or its
25  instrumentalities the amount sold; (4) if the sale is made to a
26  municipal corporation owning and operating a local

 

 

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1  transportation system for public service in this State the
2  name and address of such purchaser, and the amount sold, as
3  evidenced by official forms of exemption certificates properly
4  executed and furnished by such purchaser; (5) if the sale is
5  made to a privately owned public utility owning and operating
6  2-axle vehicles designed and used for transporting more than 7
7  passengers, which vehicles are used as common carriers in
8  general transportation of passengers, are not devoted to any
9  specialized purpose and are operated entirely within the
10  territorial limits of a single municipality or of any group of
11  contiguous municipalities or in a close radius thereof, and
12  the operations of which are subject to the regulations of the
13  Illinois Commerce Commission, then the name and address of
14  such purchaser and the amount sold as evidenced by official
15  forms of exemption certificates properly executed and
16  furnished by the purchaser; (6) if the product sold is special
17  fuel and if the sale is made to a licensed supplier under
18  conditions which qualify the sale for tax exemption under
19  Section 6 of this Act, the amount sold and the name, address
20  and license number of the purchaser; and (6) (7) if a sale of
21  special fuel is made to someone other than a licensed
22  distributor, or a licensed supplier, for a use other than in
23  motor vehicles, by making a specific notation thereof on the
24  invoice or sales slip covering such sales and obtaining such
25  supporting documentation as may be required by the Department.
26  All special fuel sold or used for non-highway purposes

 

 

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1  must have a dye added in accordance with Section 4d of this
2  Law.
3  A person whose license to act as a distributor of motor
4  fuel has been revoked shall make a return to the Department
5  covering the period from the date of the last return to the
6  date of the revocation of the license, which return shall be
7  delivered to the Department not later than 10 days from the
8  date of the revocation or termination of the license of such
9  distributor; the return shall in all other respects be subject
10  to the same provisions and conditions as returns by
11  distributors licensed under the provisions of this Act.
12  The records, waybills and supporting documents kept by
13  railroads and other common carriers in the regular course of
14  business shall be prima facie evidence of the contents and
15  receipt of cars or tanks covered by those records, waybills or
16  supporting documents.
17  If the Department has reason to believe and does believe
18  that the amount shown on the return as purchased, acquired,
19  received, exported, sold, used, lost or destroyed is
20  incorrect, or that an amount of motor fuel of the types
21  required by the second paragraph of this Section to be
22  reported to the Department has not been correctly reported the
23  Department shall fix an amount for such receipt, sales,
24  export, use, loss or destruction according to its best
25  judgment and information, which amount so fixed by the
26  Department shall be prima facie correct. All returns shall be

 

 

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1  made on forms prepared and furnished by the Department, and
2  shall contain such other information as the Department may
3  reasonably require. The return must be accompanied by
4  appropriate computer-generated magnetic media supporting
5  schedule data in the format required by the Department,
6  unless, as provided by rule, the Department grants an
7  exception upon petition of a taxpayer. All licensed
8  distributors shall report all losses of motor fuel sustained
9  on account of fire, theft, spillage, spoilage, leakage, or any
10  other provable cause when filing the return for the period
11  during which the loss occurred. If the distributor reports
12  losses due to fire or theft, then the distributor must include
13  fire department or police department reports and any other
14  documentation that the Department may require. The mere making
15  of the report does not assure the allowance of the loss as a
16  reduction in tax liability. Losses of motor fuel as the result
17  of evaporation or shrinkage due to temperature variations may
18  not exceed 1% of the total gallons in storage at the beginning
19  of the month, plus the receipts of gallonage during the month,
20  minus the gallonage remaining in storage at the end of the
21  month. Any loss reported that is in excess of 1% shall be
22  subject to the tax imposed by Section 2 of this Law. On and
23  after July 1, 2001, for each 6-month period January through
24  June, net losses of motor fuel (for each category of motor fuel
25  that is required to be reported on a return) as the result of
26  evaporation or shrinkage due to temperature variations may not

 

 

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1  exceed 1% of the total gallons in storage at the beginning of
2  each January, plus the receipts of gallonage each January
3  through June, minus the gallonage remaining in storage at the
4  end of each June. On and after July 1, 2001, for each 6-month
5  period July through December, net losses of motor fuel (for
6  each category of motor fuel that is required to be reported on
7  a return) as the result of evaporation or shrinkage due to
8  temperature variations may not exceed 1% of the total gallons
9  in storage at the beginning of each July, plus the receipts of
10  gallonage each July through December, minus the gallonage
11  remaining in storage at the end of each December. Any net loss
12  reported that is in excess of this amount shall be subject to
13  the tax imposed by Section 2 of this Law. For purposes of this
14  Section, "net loss" means the number of gallons gained through
15  temperature variations minus the number of gallons lost
16  through temperature variations or evaporation for each of the
17  respective 6-month periods.
18  If any payment provided for in this Section exceeds the
19  distributor's liabilities under this Act, as shown on an
20  original return, the Department may authorize the distributor
21  to credit such excess payment against liability subsequently
22  to be remitted to the Department under this Act, in accordance
23  with reasonable rules adopted by the Department. If the
24  Department subsequently determines that all or any part of the
25  credit taken was not actually due to the distributor, the
26  distributor's discount shall be reduced by an amount equal to

 

 

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1  the difference between the discount as applied to the credit
2  taken and that actually due, and that distributor shall be
3  liable for penalties and interest on such difference.
4  (Source: P.A. 100-9, eff. 7-1-17; 100-1171, eff. 1-4-19.)
5  (35 ILCS 505/6) (from Ch. 120, par. 422)
6  Sec. 6. Collection of tax; distributors. A distributor who
7  sells or distributes any motor fuel, which he is required by
8  Section 5 to report to the Department when filing a return,
9  shall (except as hereinafter provided) collect at the time of
10  such sale and distribution, the amount of tax imposed under
11  this Act on all such motor fuel sold and distributed, and at
12  the time of making a return, the distributor shall pay to the
13  Department the amount so collected less a discount of 2%
14  through June 30, 2003 and 1.75% thereafter which is allowed to
15  reimburse the distributor for the expenses incurred in keeping
16  records, preparing and filing returns, collecting and
17  remitting the tax and supplying data to the Department on
18  request, and shall also pay to the Department an amount equal
19  to the amount that would be collectible as a tax in the event
20  of a sale thereof on all such motor fuel used by said
21  distributor during the period covered by the return. However,
22  no payment shall be made based upon dyed diesel fuel used by
23  the distributor for non-highway purposes. The discount shall
24  only be applicable to the amount of tax payment which
25  accompanies a return which is filed timely in accordance with

 

 

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1  Section 5 of this Act. In each subsequent sale of motor fuel on
2  which the amount of tax imposed under this Act has been
3  collected as provided in this Section, the amount so collected
4  shall be added to the selling price, so that the amount of tax
5  is paid ultimately by the user of the motor fuel. However, no
6  collection or payment shall be made in the case of the sale or
7  use of any motor fuel to the extent to which such sale or use
8  of motor fuel may not, under the constitution and statutes of
9  the United States, be made the subject of taxation by this
10  State. A person whose license to act as a distributor of fuel
11  has been revoked shall, at the time of making a return, also
12  pay to the Department an amount equal to the amount that would
13  be collectible as a tax in the event of a sale thereof on all
14  motor fuel, which he is required by the second paragraph of
15  Section 5 to report to the Department in making a return, and
16  which he had on hand on the date on which the license was
17  revoked, and with respect to which no tax had been previously
18  paid under this Act.
19  A distributor may make tax free sales of motor fuel, with
20  respect to which he is otherwise required to collect the tax,
21  only as specified in the following items 1 through 7.
22  1. When the sale is made to a person holding a valid
23  unrevoked license as a distributor, by making a specific
24  notation thereof on invoices or sales slip covering each
25  sale.
26  2. When the sale is made with delivery to a purchaser

 

 

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1  outside of this State.
2  3. When the sale is made to the Federal Government or
3  its instrumentalities.
4  4. When the sale is made to a municipal corporation
5  owning and operating a local transportation system for
6  public service in this State when an official certificate
7  of exemption is obtained in lieu of the tax.
8  5. When the sale is made to a privately owned public
9  utility owning and operating 2 axle vehicles designed and
10  used for transporting more than 7 passengers, which
11  vehicles are used as common carriers in general
12  transportation of passengers, are not devoted to any
13  specialized purpose and are operated entirely within the
14  territorial limits of a single municipality or of any
15  group of contiguous municipalities, or in a close radius
16  thereof, and the operations of which are subject to the
17  regulations of the Illinois Commerce Commission, when an
18  official certificate of exemption is obtained in lieu of
19  the tax.
20  6. (Blank). When a sale of special fuel is made to a
21  person holding a valid, unrevoked license as a supplier,
22  by making a specific notation thereof on the invoice or
23  sales slip covering each such sale.
24  7. When a sale of dyed diesel fuel is made by the
25  licensed distributor to the end user of the fuel who is not
26  a licensed distributor or a licensed supplier for

 

 

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1  non-highway purposes and the fuel is (i) delivered from a
2  vehicle designed for the specific purpose of such sales
3  and delivered directly into a stationary bulk storage tank
4  that displays the notice required by Section 4f of this
5  Act, (ii) delivered from a vehicle designed for the
6  specific purpose of such sales and delivered directly into
7  the fuel supply tanks of non-highway vehicles that are not
8  required to be registered for highway use, or (iii)
9  dispensed from a dyed diesel fuel dispensing facility that
10  has withdrawal facilities that are not readily accessible
11  to and are not capable of dispensing dyed diesel fuel into
12  the fuel supply tank of a motor vehicle.
13  A specific notation is required on the invoice or
14  sales slip covering such sales, and any supporting
15  documentation that may be required by the Department must
16  be obtained by the distributor. The distributor shall
17  obtain and keep the supporting documentation in such form
18  as the Department may require by rule.
19  For purposes of this item 7, a dyed diesel fuel
20  dispensing facility is considered to have withdrawal
21  facilities that are "not readily accessible to and not
22  capable of dispensing dyed diesel fuel into the fuel
23  supply tank of a motor vehicle" only if the dyed diesel
24  fuel is delivered from: (i) a dispenser hose that is short
25  enough so that it will not reach the fuel supply tank of a
26  motor vehicle or (ii) a dispenser that is enclosed by a

 

 

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1  fence or other physical barrier so that a vehicle cannot
2  pull alongside the dispenser to permit fueling.
3  8. (Blank).
4  All special fuel sold or used for non-highway purposes
5  must have a dye added in accordance with Section 4d of this
6  Law.
7  All suits or other proceedings brought for the purpose of
8  recovering any taxes, interest or penalties due the State of
9  Illinois under this Act may be maintained in the name of the
10  Department.
11  (Source: P.A. 102-1019, eff. 5-27-22.)
12  (35 ILCS 505/7) (from Ch. 120, par. 423)
13  Sec. 7. Any person who is , not licensed as a receiver or ,
14  distributor and who purchases or supplier, purchasing fuel or
15  motor fuel as to which there has been no charge made to him of
16  the tax imposed by Section 2 or 2a, or both, shall make payment
17  of the tax imposed by Section 2a of this Act and if the same be
18  thereafter used in the operation of a motor vehicle upon the
19  public highways, make payment of the motor fuel tax computed
20  at the rate prescribed in Section 2 of this Act on the amount
21  so used, such payment to be made to the Department not later
22  than the 20th day of the month succeeding the month in which
23  the motor fuel was so used.
24  This Section does not apply in cases of such use of motor
25  fuel which was obtained tax-free under an official certificate

 

 

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1  of exemption mentioned in Sections 6 and 6a of this Act.
2  (Source: P.A. 86-125.)
3  (35 ILCS 505/11.5) (from Ch. 120, par. 427a)
4  Sec. 11.5. In the event that liability upon the bond filed
5  by a distributor, supplier, or receiver with the Department
6  shall be discharged or reduced, whether by judgment rendered,
7  payment made or otherwise, or if in the opinion of the
8  Department the bond of any distributor, supplier, or receiver
9  theretofore given shall become unsatisfactory, then the
10  distributor, supplier, or receiver shall forthwith, upon the
11  written demand of the Department, file a new bond in the same
12  manner and form and in an amount and with sureties
13  satisfactory to the Department, failing which the Department
14  shall forthwith revoke the license of the distributor,
15  supplier, or receiver.
16  If such new bond shall be furnished by the distributor,
17  supplier, or receiver as above provided, the Department shall
18  cancel the bond for which such new bond shall be substituted.
19  Any surety on any bond furnished by any distributor,
20  supplier, or receiver shall be released and discharged from
21  any and all liability to the State of Illinois accruing on such
22  bond after the expiration of 60 days from the date upon which
23  such surety shall have filed with the Department written
24  request so to be released and discharged. But such request
25  shall not operate to relieve, release or discharge such surety

 

 

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1  from any liability already accrued, or which shall accrue,
2  before the expiration of said 60-day period. The Department
3  shall, promptly on receipt of such request, notify the
4  distributor, supplier, or receiver and, unless such
5  distributor, supplier, or receiver shall on or before the
6  expiration of such 60-day period file with the Department a
7  new bond with a surety or sureties satisfactory to the
8  Department in the amount and form hereinbefore provided, the
9  Department shall forthwith cancel the license of such
10  distributor, supplier, or receiver. If such new bond shall be
11  furnished by said distributor, supplier, or receiver as above
12  provided, the Department shall cancel the bond for which such
13  new bond shall be substituted.
14  (Source: P.A. 91-173, eff. 1-1-00.)
15  (35 ILCS 505/12) (from Ch. 120, par. 428)
16  Sec. 12. It is the duty of every distributor and ,
17  receiver, and supplier under this Act to keep within this
18  State or at some office outside this State for any period for
19  which the Department is authorized to issue a Notice of Tax
20  Liability to the distributor or , receiver, or supplier
21  records and books showing all purchases, receipts, losses
22  through any cause, sales, distribution and use of motor fuel,
23  aviation fuels, home heating oils, and kerosene, and products
24  used for the purpose of blending to produce motor fuel, which
25  records and books shall, at all times during business hours of

 

 

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1  the day, be subject to inspection by the Department, or its
2  duly authorized agents and employees. For purposes of this
3  Section, "records" means all data maintained by the taxpayer
4  including data on paper, microfilm, microfiche or any type of
5  machine-sensible data compilation. The Department may, in its
6  discretion, prescribe reasonable and uniform methods for
7  keeping of records and books by licensees and that set forth
8  requirements for the form and format of records that must be
9  maintained in order to comply with any recordkeeping
10  requirement under this Act.
11  (Source: P.A. 91-173, eff. 1-1-00.)
12  (35 ILCS 505/12a) (from Ch. 120, par. 428a)
13  Sec. 12a. (a) Any duly authorized agent or employee of the
14  Department shall have authority to enter in or upon the
15  premises of any manufacturer, vendor, dealer, retailer,
16  distributor, receiver, supplier or user of motor fuel or
17  special fuels during the regular business hours in order to
18  examine books, records, invoices, storage tanks, and any other
19  applicable equipment pertaining to motor fuel, aviation fuels,
20  home heating oils, kerosene, or special fuels, to determine
21  whether or not the taxes imposed by this Act have been paid.
22  (b) Any duly authorized agent of the Department, upon
23  presenting appropriate credentials and a written notice to the
24  person who owns, operates, or controls the place to be
25  inspected, shall have the authority to enter any place and to

 

 

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1  conduct inspections in accordance with subsections (b) through
2  (g) of this Section.
3  (c) Inspections will be performed in a reasonable manner
4  and at times that are reasonable under the circumstances,
5  taking into consideration the normal business hours of the
6  place to be entered.
7  (d) Inspections may be at any place at which taxable motor
8  fuel is or may be produced or stored or at any inspection site
9  where evidence of the following activities may be discovered:
10  (1) Where any dyed diesel fuel is sold or held for sale
11  by any person for any use which the person knows or has
12  reason to know is not a nontaxable use of such fuel.
13  (2) Where any dyed diesel fuel is held for use or used
14  by any person for a use other than a nontaxable use and the
15  person knew, or had reason to know, that the fuel was dyed
16  according to Section 4d.
17  (3) Where any person willfully alters, or attempts to
18  alter, the strength or composition of any dye or marking
19  done pursuant to Section 4d of this Law.
20  The places may include, but are not limited to, the
21  following:
22  (1) Any terminal.
23  (2) Any fuel storage facility that is not a terminal.
24  (3) Any retail fuel facility.
25  (4) Any designated inspection site.
26  (e) Duly authorized agents of the Department may

 

 

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1  physically inspect, examine, or otherwise search any tank,
2  reservoir, or other container that can or may be used for the
3  production, storage, or transportation of fuel, fuel dyes, or
4  fuel markers. Inspection may also be made of any equipment
5  used for, or in connection with, production, storage, or
6  transportation of fuel, fuel dyes, or fuel markers. This
7  includes any equipment used for the dyeing or marking of fuel.
8  This also includes books and records, if any, that are
9  maintained at the place of inspection and are kept to
10  determine tax liability under this Law.
11  (f) Duly authorized agents of the Department may detain
12  any motor vehicle, train, barge, ship, or vessel for the
13  purpose of inspecting its fuel tanks and storage tanks.
14  Detainment will be either on the premises under inspection or
15  at a designated inspection site. Detainment may continue for a
16  reasonable period of time as is necessary to determine the
17  amount and composition of the fuel.
18  (g) Duly authorized agents of the Department may take and
19  remove samples of fuel in quantities as are reasonably
20  necessary to determine the composition of the fuel.
21  (h) (1) Any person that refuses to allow an inspection
22  shall pay a $1,000 penalty for each refusal. This penalty
23  is in addition to any other penalty or tax that may be
24  imposed upon that person or any other person liable for
25  tax under this Law. All penalties received under this
26  subsection shall be deposited into the Tax Compliance and

 

 

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1  Administration Fund.
2  (2) In addition, any licensee who refuses to allow an
3  inspection shall be subject to license revocation as
4  provided by Section 16 of this Law.
5  (Source: P.A. 91-173, eff. 1-1-00.)
6  (35 ILCS 505/13) (from Ch. 120, par. 429)
7  Sec. 13. Refund of tax paid. Any person other than a
8  distributor or supplier, who loses motor fuel through any
9  cause or uses motor fuel (upon which he has paid the amount
10  required to be collected under Section 2 of this Act) for any
11  purpose other than operating a motor vehicle upon the public
12  highways or waters, shall be reimbursed and repaid the amount
13  so paid.
14  Any person who purchases motor fuel in Illinois and uses
15  that motor fuel in another state and that other state imposes a
16  tax on the use of such motor fuel shall be reimbursed and
17  repaid the amount of Illinois tax paid under Section 2 of this
18  Act on the motor fuel used in such other state. Reimbursement
19  and repayment shall be made by the Department upon receipt of
20  adequate proof of taxes directly paid to another state and the
21  amount of motor fuel used in that state.
22  Claims based in whole or in part on taxes paid to another
23  state shall include (i) a certified copy of the tax return
24  filed with such other state by the claimant; (ii) a copy of
25  either the cancelled check paying the tax due on such return,

 

 

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1  or a receipt acknowledging payment of the tax due on such tax
2  return; and (iii) such other information as the Department may
3  reasonably require. This paragraph shall not apply to taxes
4  paid on returns filed under Section 13a.3 of this Act.
5  Any person who purchases motor fuel use tax decals as
6  required by Section 13a.4 and pays an amount of fees for such
7  decals that exceeds the amount due shall be reimbursed and
8  repaid the amount of the decal fees that are deemed by the
9  department to be in excess of the amount due. Alternatively,
10  any person who purchases motor fuel use tax decals as required
11  by Section 13a.4 may credit any excess decal payment verified
12  by the Department against amounts subsequently due for the
13  purchase of additional decals, until such time as no excess
14  payment remains.
15  Claims for such reimbursement must be made to the
16  Department of Revenue, duly verified by the claimant (or by
17  the claimant's legal representative if the claimant has died
18  or become a person under legal disability), upon forms
19  prescribed by the Department. The claim must state such facts
20  relating to the purchase, importation, manufacture or
21  production of the motor fuel by the claimant as the Department
22  may deem necessary, and the time when, and the circumstances
23  of its loss or the specific purpose for which it was used (as
24  the case may be), together with such other information as the
25  Department may reasonably require. No claim based upon idle
26  time shall be allowed. Claims for reimbursement for

 

 

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1  overpayment of decal fees shall be made to the Department of
2  Revenue, duly verified by the claimant (or by the claimant's
3  legal representative if the claimant has died or become a
4  person under legal disability), upon forms prescribed by the
5  Department. The claim shall state facts relating to the
6  overpayment of decal fees, together with such other
7  information as the Department may reasonably require. Claims
8  for reimbursement of overpayment of decal fees paid on or
9  after January 1, 2011 must be filed not later than one year
10  after the date on which the fees were paid by the claimant. If
11  it is determined that the Department should reimburse a
12  claimant for overpayment of decal fees, the Department shall
13  first apply the amount of such refund against any tax or
14  penalty or interest due by the claimant under Section 13a of
15  this Act.
16  Claims for full reimbursement for taxes paid on or before
17  December 31, 1999 must be filed not later than one year after
18  the date on which the tax was paid by the claimant. If,
19  however, a claim for such reimbursement otherwise meeting the
20  requirements of this Section is filed more than one year but
21  less than 2 years after that date, the claimant shall be
22  reimbursed at the rate of 80% of the amount to which he would
23  have been entitled if his claim had been timely filed.
24  Claims for full reimbursement for taxes paid on or after
25  January 1, 2000 must be filed not later than 2 years after the
26  date on which the tax was paid by the claimant.

 

 

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1  The Department may make such investigation of the
2  correctness of the facts stated in such claims as it deems
3  necessary. When the Department has approved any such claim, it
4  shall pay to the claimant (or to the claimant's legal
5  representative, as such if the claimant has died or become a
6  person under legal disability) the reimbursement provided in
7  this Section, out of any moneys appropriated to it for that
8  purpose.
9  Any distributor or supplier who has paid the tax imposed
10  by Section 2 of this Act upon motor fuel lost or used by such
11  distributor or supplier for any purpose other than operating a
12  motor vehicle upon the public highways or waters may file a
13  claim for credit or refund to recover the amount so paid. Such
14  claims shall be filed on forms prescribed by the Department.
15  Such claims shall be made to the Department, duly verified by
16  the claimant (or by the claimant's legal representative if the
17  claimant has died or become a person under legal disability),
18  upon forms prescribed by the Department. The claim shall state
19  such facts relating to the purchase, importation, manufacture
20  or production of the motor fuel by the claimant as the
21  Department may deem necessary and the time when the loss or
22  nontaxable use occurred, and the circumstances of its loss or
23  the specific purpose for which it was used (as the case may
24  be), together with such other information as the Department
25  may reasonably require. Claims must be filed not later than
26  one year after the date on which the tax was paid by the

 

 

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1  claimant.
2  The Department may make such investigation of the
3  correctness of the facts stated in such claims as it deems
4  necessary. When the Department approves a claim, the
5  Department shall issue a refund or credit memorandum as
6  requested by the taxpayer, to the distributor or supplier who
7  made the payment for which the refund or credit is being given
8  or, if the distributor or supplier has died or become
9  incompetent, to such distributor's or supplier's legal
10  representative, as such. The amount of such credit memorandum
11  shall be credited against any tax due or to become due under
12  this Act from the distributor or supplier who made the payment
13  for which credit has been given.
14  Any credit or refund that is allowed under this Section
15  shall bear interest at the rate and in the manner specified in
16  the Uniform Penalty and Interest Act.
17  In case the distributor or supplier requests and the
18  Department determines that the claimant is entitled to a
19  refund, such refund shall be made only from such appropriation
20  as may be available for that purpose. If it appears unlikely
21  that the amount appropriated would permit everyone having a
22  claim allowed during the period covered by such appropriation
23  to elect to receive a cash refund, the Department, by rule or
24  regulation, shall provide for the payment of refunds in
25  hardship cases and shall define what types of cases qualify as
26  hardship cases.

 

 

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1  In any case in which there has been an erroneous refund of
2  tax or fees payable under this Section, a notice of tax
3  liability may be issued at any time within 3 years from the
4  making of that refund, or within 5 years from the making of
5  that refund if it appears that any part of the refund was
6  induced by fraud or the misrepresentation of material fact.
7  The amount of any proposed assessment set forth by the
8  Department shall be limited to the amount of the erroneous
9  refund.
10  If no tax is due and no proceeding is pending to determine
11  whether such distributor or supplier is indebted to the
12  Department for tax, the credit memorandum so issued may be
13  assigned and set over by the lawful holder thereof, subject to
14  reasonable rules of the Department, to any other licensed
15  distributor or supplier who is subject to this Act, and the
16  amount thereof applied by the Department against any tax due
17  or to become due under this Act from such assignee.
18  If the payment for which the distributor's or supplier's
19  claim is filed is held in the protest fund of the State
20  Treasury during the pendency of the claim for credit
21  proceedings pursuant to the order of the court in accordance
22  with Section 2a of the State Officers and Employees Money
23  Disposition Act and if it is determined by the Department or by
24  the final order of a reviewing court under the Administrative
25  Review Law that the claimant is entitled to all or a part of
26  the credit claimed, the claimant, instead of receiving a

 

 

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1  credit memorandum from the Department, shall receive a cash
2  refund from the protest fund as provided for in Section 2a of
3  the State Officers and Employees Money Disposition Act.
4  If any person ceases to be licensed as a distributor or
5  supplier while still holding an unused credit memorandum
6  issued under this Act, such person may, at his election
7  (instead of assigning the credit memorandum to a licensed
8  distributor or licensed supplier under this Act), surrender
9  such unused credit memorandum to the Department and receive a
10  refund of the amount to which such person is entitled.
11  For claims based upon taxes paid on or before December 31,
12  2000, a claim based upon the use of undyed diesel fuel shall
13  not be allowed except (i) if allowed under the following
14  paragraph or (ii) for undyed diesel fuel used by a commercial
15  vehicle, as that term is defined in Section 1-111.8 of the
16  Illinois Vehicle Code, for any purpose other than operating
17  the commercial vehicle upon the public highways and unlicensed
18  commercial vehicles operating on private property. Claims
19  shall be limited to commercial vehicles that are operated for
20  both highway purposes and any purposes other than operating
21  such vehicles upon the public highways.
22  For claims based upon taxes paid on or after January 1,
23  2000, a claim based upon the use of undyed diesel fuel shall
24  not be allowed except (i) if allowed under the preceding
25  paragraph or (ii) for claims for the following:
26  (1) Undyed diesel fuel used (i) in a manufacturing

 

 

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1  process, as defined in Section 2-45 of the Retailers'
2  Occupation Tax Act, wherein the undyed diesel fuel becomes
3  a component part of a product or by-product, other than
4  fuel or motor fuel, when the use of dyed diesel fuel in
5  that manufacturing process results in a product that is
6  unsuitable for its intended use or (ii) for testing
7  machinery and equipment in a manufacturing process, as
8  defined in Section 2-45 of the Retailers' Occupation Tax
9  Act, wherein the testing takes place on private property.
10  (2) Undyed diesel fuel used by a manufacturer on
11  private property in the research and development, as
12  defined in Section 1.29, of machinery or equipment
13  intended for manufacture.
14  (3) Undyed diesel fuel used by a single unit
15  self-propelled agricultural fertilizer implement,
16  designed for on and off road use, equipped with flotation
17  tires and specially adapted for the application of plant
18  food materials or agricultural chemicals.
19  (4) Undyed diesel fuel used by a commercial motor
20  vehicle for any purpose other than operating the
21  commercial motor vehicle upon the public highways. Claims
22  shall be limited to commercial motor vehicles that are
23  operated for both highway purposes and any purposes other
24  than operating such vehicles upon the public highways.
25  (5) Undyed diesel fuel used by a unit of local
26  government in its operation of an airport if the undyed

 

 

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1  diesel fuel is used directly in airport operations on
2  airport property.
3  (6) Undyed diesel fuel used by refrigeration units
4  that are permanently mounted to a semitrailer, as defined
5  in Section 1.28 of this Law, wherein the refrigeration
6  units have a fuel supply system dedicated solely for the
7  operation of the refrigeration units.
8  (7) Undyed diesel fuel used by power take-off
9  equipment as defined in Section 1.27 of this Law.
10  (8) Beginning on the effective date of this amendatory
11  Act of the 94th General Assembly, undyed diesel fuel used
12  by tugs and spotter equipment to shift vehicles or parcels
13  on both private and airport property. Any claim under this
14  item (8) may be made only by a claimant that owns tugs and
15  spotter equipment and operates that equipment on both
16  private and airport property. The aggregate of all credits
17  or refunds resulting from claims filed under this item (8)
18  by a claimant in any calendar year may not exceed
19  $100,000. A claim may not be made under this item (8) by
20  the same claimant more often than once each quarter. For
21  the purposes of this item (8), "tug" means a vehicle
22  designed for use on airport property that shifts
23  custom-designed containers of parcels from loading docks
24  to aircraft, and "spotter equipment" means a vehicle
25  designed for use on both private and airport property that
26  shifts trailers containing parcels between staging areas

 

 

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1  and loading docks.
2  Any person who has paid the tax imposed by Section 2 of
3  this Law upon undyed diesel fuel that is unintentionally mixed
4  with dyed diesel fuel and who owns or controls the mixture of
5  undyed diesel fuel and dyed diesel fuel may file a claim for
6  refund to recover the amount paid. The amount of undyed diesel
7  fuel unintentionally mixed must equal 500 gallons or more. Any
8  claim for refund of unintentionally mixed undyed diesel fuel
9  and dyed diesel fuel shall be supported by documentation
10  showing the date and location of the unintentional mixing, the
11  number of gallons involved, the disposition of the mixed
12  diesel fuel, and any other information that the Department may
13  reasonably require. Any unintentional mixture of undyed diesel
14  fuel and dyed diesel fuel shall be sold or used only for
15  non-highway purposes.
16  The Department shall promulgate regulations establishing
17  specific limits on the amount of undyed diesel fuel that may be
18  claimed for refund.
19  For purposes of claims for refund, "loss" means the
20  reduction of motor fuel resulting from fire, theft, spillage,
21  spoilage, leakage, or any other provable cause, but does not
22  include a reduction resulting from evaporation, or shrinkage
23  due to temperature variations. In the case of losses due to
24  fire or theft, the claimant must include fire department or
25  police department reports and any other documentation that the
26  Department may require.

 

 

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1  (Source: P.A. 100-1171, eff. 1-4-19.)
2  (35 ILCS 505/14a) (from Ch. 120, par. 430.1)
3  Sec. 14a. The Department of Revenue may enter into
4  reciprocal agreements with the appropriate officials of any
5  other state under which the Department may waive all or any
6  part of the requirements imposed by the laws of this State upon
7  those who use or consume motor fuel in Illinois upon which a
8  tax has been paid to such other state, provided that the
9  officials of such other state grant equivalent privileges with
10  respect to motor fuel used in such other state but upon which
11  the tax has been paid to Illinois.
12  The Department may enter the International Fuel Tax
13  Agreement or other cooperative compacts or agreements with
14  other states or jurisdictions to permit base state or base
15  jurisdiction licensing of persons using motor fuel in this
16  State. Those agreements may provide for the cooperation and
17  assistance among member states in the administration and
18  collection of motor fuel tax, including, but not limited to,
19  exchanges of information, auditing and assessing of interstate
20  carriers and suppliers, and any other activities necessary to
21  further uniformity.
22  Pursuant to federal mandate, upon membership in the
23  International Fuel Tax Agreement ("Agreement"), the motor fuel
24  use tax imposed upon Commercial Motor Vehicles required to be
25  registered under the terms of the Agreement shall be

 

 

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1  administered according to the terms of the Agreement, as now
2  and hereafter amended. Illinois shall not establish, maintain,
3  or enforce any law or regulation that has fuel use tax
4  reporting requirements or that provides for the payment of a
5  fuel use tax, unless that law or regulation is in conformity
6  with the Agreement.
7  The Department shall adopt rules and regulations to
8  implement the provisions of the Agreement.
9  (Source: P.A. 88-480.)
10  (35 ILCS 505/15) (from Ch. 120, par. 431)
11  Sec. 15. 1. Any person who knowingly acts as a distributor
12  of motor fuel or supplier of special fuel, or receiver of fuel
13  without having a license so to do, or who knowingly fails or
14  refuses to file a return with the Department as provided in
15  Section 2b, Section 5, or Section 5a of this Act, or who
16  knowingly fails or refuses to make payment to the Department
17  as provided either in Section 2b, Section 6, Section 6a, or
18  Section 7 of this Act, shall be guilty of a Class 3 felony.
19  Each day any person knowingly acts as a distributor of motor
20  fuel, supplier of special fuel, or receiver of fuel without
21  having a license so to do or after such a license has been
22  revoked, constitutes a separate offense.
23  2. Any person who acts as a motor carrier without having a
24  valid motor fuel use tax license, issued by the Department or
25  by a member jurisdiction under the provisions of the

 

 

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1  International Fuel Tax Agreement, or a valid single trip
2  permit is guilty of a Class A misdemeanor for a first offense
3  and is guilty of a Class 4 felony for each subsequent offense.
4  Any person (i) who fails or refuses to make payment to the
5  Department as provided in Section 13a.1 of this Act or in the
6  International Fuel Tax Agreement referenced in Section 14a, or
7  (ii) who fails or refuses to make the quarterly return as
8  provided in Section 13a.3 is guilty of a Class 4 felony; and
9  for each subsequent offense, such person is guilty of a Class 3
10  felony.
11  3. In case such person acting as a distributor, receiver,
12  supplier, or motor carrier is a corporation, then the officer
13  or officers, agent or agents, employee or employees, of such
14  corporation responsible for any act of such corporation, or
15  failure of such corporation to act, which acts or failure to
16  act constitutes a violation of any of the provisions of this
17  Act as enumerated in paragraphs 1 and 2 of this Section, shall
18  be punished by such fine or imprisonment, or by both such fine
19  and imprisonment as provided in those paragraphs.
20  3.5. Any person who knowingly enters false information on
21  any supporting documentation required to be kept by Section 6
22  or 6a of this Act is guilty of a Class 3 felony.
23  3.7. Any person who knowingly attempts in any manner to
24  evade or defeat any tax imposed by this Act or the payment of
25  any tax imposed by this Act is guilty of a Class 2 felony.
26  4. Any person who refuses, upon demand, to submit for

 

 

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1  inspection, books and records, or who fails or refuses to keep
2  books and records in violation of Section 12 of this Act, or
3  any distributor or , receiver, or supplier who violates any
4  reasonable rule or regulation adopted by the Department for
5  the enforcement of this Act is guilty of a Class A misdemeanor.
6  Any person who acts as a blender in violation of Section 3 of
7  this Act is guilty of a Class 4 felony.
8  5. Any person licensed under Section 13a.4, 13a.5, or the
9  International Fuel Tax Agreement who: (a) fails or refuses to
10  keep records and books, as provided in Section 13a.2 or as
11  required by the terms of the International Fuel Tax Agreement,
12  (b) refuses upon demand by the Department to submit for
13  inspection and examination the records required by Section
14  13a.2 of this Act or by the terms of the International Fuel Tax
15  Agreement, or (c) violates any reasonable rule or regulation
16  adopted by the Department for the enforcement of this Act, is
17  guilty of a Class A misdemeanor.
18  6. Any person who makes any false return or report to the
19  Department as to any material fact required by Sections 2b, 5,
20  5a, 7, 13, or 13a.3 of this Act or by the International Fuel
21  Tax Agreement is guilty of a Class 2 felony.
22  7. A prosecution for any violation of this Section may be
23  commenced anytime within 5 years of the commission of that
24  violation. A prosecution for tax evasion as set forth in
25  paragraph 3.7 of this Section may be prosecuted any time
26  within 5 years of the commission of the last act in furtherance

 

 

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1  of evasion. The running of the period of limitations under
2  this Section shall be suspended while any proceeding or appeal
3  from any proceeding relating to the quashing or enforcement of
4  any grand jury or administrative subpoena issued in connection
5  with an investigation of the violation of any provision of
6  this Act is pending.
7  8. Any person who provides false documentation required by
8  any Section of this Act is guilty of a Class 4 felony.
9  9. Any person filing a fraudulent application or order
10  form under any provision of this Act is guilty of a Class A
11  misdemeanor. For each subsequent offense, the person is guilty
12  of a Class 4 felony.
13  10. Any person who acts as a motor carrier and who fails to
14  carry a manifest as provided in Section 5.5 is guilty of a
15  Class A misdemeanor. For each subsequent offense, the person
16  is guilty of a Class 4 felony.
17  11. Any person who knowingly sells or attempts to sell
18  dyed diesel fuel for highway use or for use by
19  recreational-type watercraft on the waters of this State is
20  guilty of a Class 4 felony. For each subsequent offense, the
21  person is guilty of a Class 2 felony.
22  12. Any person who knowingly possesses dyed diesel fuel
23  for highway use or for use by recreational-type watercraft on
24  the waters of this State is guilty of a Class A misdemeanor.
25  For each subsequent offense, the person is guilty of a Class 4
26  felony.

 

 

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1  13. Any person who sells or transports dyed diesel fuel
2  without the notice required by Section 4e shall pay the
3  following penalty:
4  First occurrence....................................$ 500
5  Second and each occurrence thereafter..............$1,000
6  14. Any person who owns, operates, or controls any
7  container, storage tank, or facility used to store or
8  distribute dyed diesel fuel without the notice required by
9  Section 4f shall pay the following penalty:
10  First occurrence....................................$ 500
11  Second and each occurrence thereafter..............$1,000
12  15. If a motor vehicle required to be registered for
13  highway purposes is found to have dyed diesel fuel within the
14  ordinary fuel tanks attached to the motor vehicle or if a
15  recreational-type watercraft on the waters of this State is
16  found to have dyed diesel fuel within the ordinary fuel tanks
17  attached to the watercraft, the operator shall pay the
18  following penalty:
19  First occurrence...................................$1,000
20  Second and each occurrence thereafter..............$5,000
21  16. Any licensed motor fuel distributor or licensed
22  supplier who sells or attempts to sell dyed diesel fuel for
23  highway use or for use by recreational-type watercraft on the
24  waters of this State shall pay the following penalty:
25  First occurrence...................................$1,000
26  Second and each occurrence thereafter..............$5,000

 

 

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1  17. Any person who knowingly sells or distributes dyed
2  diesel fuel without the notice required by Section 4e is
3  guilty of a petty offense. For each subsequent offense, the
4  person is guilty of a Class A misdemeanor.
5  18. Any person who knowingly owns, operates, or controls
6  any container, storage tank, or facility used to store or
7  distribute dyed diesel fuel without the notice required by
8  Section 4f is guilty of a petty offense. For each subsequent
9  offense the person is guilty of a Class A misdemeanor.
10  For purposes of this Section, dyed diesel fuel means any
11  dyed diesel fuel whether or not dyed pursuant to Section 4d of
12  this Law.
13  Any person aggrieved by any action of the Department under
14  item 13, 14, 15, or 16 of this Section may protest the action
15  by making a written request for a hearing within 60 days of the
16  original action. If the hearing is not requested in writing
17  within 60 days, the original action is final.
18  All penalties received under items 13, 14, 15, and 16 of
19  this Section shall be deposited into the Tax Compliance and
20  Administration Fund.
21  (Source: P.A. 102-851, eff. 1-1-23.)
22  (35 ILCS 505/16) (from Ch. 120, par. 432)
23  Sec. 16. The Department may, after 5 days' notice, revoke
24  the distributor's or , receiver's, or supplier's license or
25  permit of any person (1) who does not operate as a distributor

 

 

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1  or , receiver, supplier (a) under Sections 1.2, 1.14, or 1.20,
2  (2) who violates any provision of this Act or any rule or
3  regulation promulgated by the Department under Section 14 of
4  this Act, or (3) who refuses to allow any inspection or test
5  authorized by this Law.
6  Any person whose returns for 2 or more consecutive months
7  do not show sufficient taxable sales to indicate an active
8  business as a distributor or , receiver, or supplier shall be
9  deemed to not be operating as a distributor or , receiver, or
10  supplier as defined in Sections 1.2, 1.14 or 1.20.
11  The Department may, after 5 days notice, revoke any
12  distributor'sor , receiver's, or supplier's license of a
13  person who is registered as a reseller of motor fuel pursuant
14  to Section 2a or 2c of the Retailers' Occupation Tax Act and
15  who fails to collect such prepaid tax on invoiced gallons of
16  motor fuel sold or who fails to deliver a statement of tax paid
17  to the purchaser or to the Department as required by Sections
18  2d and 2e of the Retailers' Occupation Tax Act.
19  The Department may, on notice given by registered mail,
20  cancel a Blender's Permit for any violation of any provisions
21  of this Act or for noncompliance with any rule or regulation
22  made by the Department under Section 14 of this Act.
23  The Department, upon complaint filed in the circuit court,
24  may, by injunction, restrain any person who fails or refuses
25  to comply with the provisions of this Act from acting as a
26  blender or distributor of motor fuel, supplier of special

 

 

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1  fuel, or as a receiver of fuel in this State.
2  The Department may revoke the motor fuel use tax license
3  of a motor carrier registered under Section 13a.4, or that is
4  required to be registered under the terms of the International
5  Fuel Tax Agreement, that violates any provision of this Act or
6  any rule promulgated by the Department under Sections 14 or
7  14a of this Act. Motor fuel use tax licenses that have been
8  revoked are subject to a $100 reinstatement fee.
9  Licensees registered or required to be registered under
10  Section 13a.4, or persons required to obtain single trip
11  permits under Section 13a.5, may protest any action or audit
12  finding made by the Department by making a written request for
13  a hearing within 30 days after service of the notice of the
14  original action or finding. If the hearing is not requested
15  within 30 days in writing, the original finding or action is
16  final. Once a hearing has been properly requested, the
17  Department shall give at least 20 days written notice of the
18  time and place of the hearing.
19  (Source: P.A. 94-1074, eff. 12-26-06.)

 

 

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