IL
Illinois House Bill HB1637

Illinois 2025-2026 Regular Session

Illinois House Bill HB1637 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1637 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED: 35 ILCS 505/2 from Ch. 120, par. 418 Amends the Motor Fuel Tax Law. Provides that an increase in the rate of tax based on the change in the Consumer Price Index shall not occur from July 1, 2025 until July 1, 2027. Effective immediately. LRB104 07466 HLH 17507 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1637 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED: 35 ILCS 505/2 from Ch. 120, par. 418 35 ILCS 505/2 from Ch. 120, par. 418 Amends the Motor Fuel Tax Law. Provides that an increase in the rate of tax based on the change in the Consumer Price Index shall not occur from July 1, 2025 until July 1, 2027. Effective immediately. LRB104 07466 HLH 17507 b LRB104 07466 HLH 17507 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1637 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED:
33 35 ILCS 505/2 from Ch. 120, par. 418 35 ILCS 505/2 from Ch. 120, par. 418
44 35 ILCS 505/2 from Ch. 120, par. 418
55 Amends the Motor Fuel Tax Law. Provides that an increase in the rate of tax based on the change in the Consumer Price Index shall not occur from July 1, 2025 until July 1, 2027. Effective immediately.
66 LRB104 07466 HLH 17507 b LRB104 07466 HLH 17507 b
77 LRB104 07466 HLH 17507 b
88 A BILL FOR
99 HB1637LRB104 07466 HLH 17507 b HB1637 LRB104 07466 HLH 17507 b
1010 HB1637 LRB104 07466 HLH 17507 b
1111 1 AN ACT concerning revenue.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 5. The Motor Fuel Tax Law is amended by changing
1515 5 Section 2 as follows:
1616 6 (35 ILCS 505/2) (from Ch. 120, par. 418)
1717 7 Sec. 2. A tax is imposed on the privilege of operating
1818 8 motor vehicles upon the public highways and recreational-type
1919 9 watercraft upon the waters of this State.
2020 10 (a) Prior to August 1, 1989, the tax is imposed at the rate
2121 11 of 13 cents per gallon on all motor fuel used in motor vehicles
2222 12 operating on the public highways and recreational type
2323 13 watercraft operating upon the waters of this State. Beginning
2424 14 on August 1, 1989 and until January 1, 1990, the rate of the
2525 15 tax imposed in this paragraph shall be 16 cents per gallon.
2626 16 Beginning January 1, 1990 and until July 1, 2019, the rate of
2727 17 tax imposed in this paragraph, including the tax on compressed
2828 18 natural gas, shall be 19 cents per gallon. Beginning July 1,
2929 19 2019 and until July 1, 2020, the rate of tax imposed in this
3030 20 paragraph shall be 38 cents per gallon. Beginning July 1, 2020
3131 21 and until July 1, 2021, the rate of tax imposed in this
3232 22 paragraph shall be 38.7 cents per gallon. Beginning July 1,
3333 23 2021 and until January 1, 2023, the rate of tax imposed in this
3434
3535
3636
3737 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1637 Introduced , by Rep. Amy L. Grant SYNOPSIS AS INTRODUCED:
3838 35 ILCS 505/2 from Ch. 120, par. 418 35 ILCS 505/2 from Ch. 120, par. 418
3939 35 ILCS 505/2 from Ch. 120, par. 418
4040 Amends the Motor Fuel Tax Law. Provides that an increase in the rate of tax based on the change in the Consumer Price Index shall not occur from July 1, 2025 until July 1, 2027. Effective immediately.
4141 LRB104 07466 HLH 17507 b LRB104 07466 HLH 17507 b
4242 LRB104 07466 HLH 17507 b
4343 A BILL FOR
4444
4545
4646
4747
4848
4949 35 ILCS 505/2 from Ch. 120, par. 418
5050
5151
5252
5353 LRB104 07466 HLH 17507 b
5454
5555
5656
5757
5858
5959
6060
6161
6262
6363 HB1637 LRB104 07466 HLH 17507 b
6464
6565
6666 HB1637- 2 -LRB104 07466 HLH 17507 b HB1637 - 2 - LRB104 07466 HLH 17507 b
6767 HB1637 - 2 - LRB104 07466 HLH 17507 b
6868 1 paragraph shall be 39.2 cents per gallon. On January 1, 2023,
6969 2 the rate of tax imposed in this paragraph shall be increased by
7070 3 an amount equal to the percentage increase, if any, in the
7171 4 Consumer Price Index for the 12 months ending in September of
7272 5 2022. On July 1, 2023, and on July 1 of each subsequent year,
7373 6 except as otherwise provided in this subsection, the rate of
7474 7 tax imposed in this paragraph shall be increased by an amount
7575 8 equal to the percentage increase, if any, in the Consumer
7676 9 Price Index for the 12 months ending in March of the year in
7777 10 which the increase takes place. The percentage increase in the
7878 11 Consumer Price Index shall be calculated as follows: (1)
7979 12 calculate the average Consumer Price Index for the full 12
8080 13 months ending in March of the year in which the increase takes
8181 14 place; (2) calculate the average Consumer Price Index for the
8282 15 full 12 months ending in March of the year immediately
8383 16 preceding the year in which the increase takes place; (3)
8484 17 calculate the percentage increase, if any, in the current-year
8585 18 average determined under item (1) over the preceding-year
8686 19 average determined under item (2). The rate shall be rounded
8787 20 to the nearest one-tenth of one cent. Notwithstanding the
8888 21 provisions of this Section, the increase described in this
8989 22 subsection based on the Consumer Price Index shall not occur
9090 23 from July 1, 2025 until July 1, 2027.
9191 24 (a-5) Beginning on July 1, 2022 and through December 31,
9292 25 2022, each retailer of motor fuel shall cause the following
9393 26 notice to be posted in a prominently visible place on each
9494
9595
9696
9797
9898
9999 HB1637 - 2 - LRB104 07466 HLH 17507 b
100100
101101
102102 HB1637- 3 -LRB104 07466 HLH 17507 b HB1637 - 3 - LRB104 07466 HLH 17507 b
103103 HB1637 - 3 - LRB104 07466 HLH 17507 b
104104 1 retail dispensing device that is used to dispense motor fuel
105105 2 in the State of Illinois: "As of July 1, 2022, the State of
106106 3 Illinois has suspended the inflation adjustment to the motor
107107 4 fuel tax through December 31, 2022. The price on this pump
108108 5 should reflect the suspension of the tax increase." The notice
109109 6 shall be printed in bold print on a sign that is no smaller
110110 7 than 4 inches by 8 inches. The sign shall be clearly visible to
111111 8 customers. Any retailer who fails to post or maintain a
112112 9 required sign through December 31, 2022 is guilty of a petty
113113 10 offense for which the fine shall be $500 per day per each
114114 11 retail premises where a violation occurs.
115115 12 (b) Until July 1, 2019, the tax on the privilege of
116116 13 operating motor vehicles which use diesel fuel, liquefied
117117 14 natural gas, or propane shall be the rate according to
118118 15 paragraph (a) plus an additional 2 1/2 cents per gallon.
119119 16 Beginning July 1, 2019, the tax on the privilege of operating
120120 17 motor vehicles which use diesel fuel, liquefied natural gas,
121121 18 or propane shall be the rate according to subsection (a) plus
122122 19 an additional 7.5 cents per gallon. "Diesel fuel" is defined
123123 20 as any product intended for use or offered for sale as a fuel
124124 21 for engines in which the fuel is injected into the combustion
125125 22 chamber and ignited by pressure without electric spark.
126126 23 (c) A tax is imposed upon the privilege of engaging in the
127127 24 business of selling motor fuel as a retailer or reseller on all
128128 25 motor fuel used in motor vehicles operating on the public
129129 26 highways and recreational type watercraft operating upon the
130130
131131
132132
133133
134134
135135 HB1637 - 3 - LRB104 07466 HLH 17507 b
136136
137137
138138 HB1637- 4 -LRB104 07466 HLH 17507 b HB1637 - 4 - LRB104 07466 HLH 17507 b
139139 HB1637 - 4 - LRB104 07466 HLH 17507 b
140140 1 waters of this State: (1) at the rate of 3 cents per gallon on
141141 2 motor fuel owned or possessed by such retailer or reseller at
142142 3 12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
143143 4 per gallon on motor fuel owned or possessed by such retailer or
144144 5 reseller at 12:01 A.M. on January 1, 1990.
145145 6 Retailers and resellers who are subject to this additional
146146 7 tax shall be required to inventory such motor fuel and pay this
147147 8 additional tax in a manner prescribed by the Department of
148148 9 Revenue.
149149 10 The tax imposed in this paragraph (c) shall be in addition
150150 11 to all other taxes imposed by the State of Illinois or any unit
151151 12 of local government in this State.
152152 13 (d) Except as provided in Section 2a, the collection of a
153153 14 tax based on gallonage of gasoline used for the propulsion of
154154 15 any aircraft is prohibited on and after October 1, 1979, and
155155 16 the collection of a tax based on gallonage of special fuel used
156156 17 for the propulsion of any aircraft is prohibited on and after
157157 18 December 1, 2019.
158158 19 (e) The collection of a tax, based on gallonage of all
159159 20 products commonly or commercially known or sold as 1-K
160160 21 kerosene, regardless of its classification or uses, is
161161 22 prohibited (i) on and after July 1, 1992 until December 31,
162162 23 1999, except when the 1-K kerosene is either: (1) delivered
163163 24 into bulk storage facilities of a bulk user, or (2) delivered
164164 25 directly into the fuel supply tanks of motor vehicles and (ii)
165165 26 on and after January 1, 2000. Beginning on January 1, 2000, the
166166
167167
168168
169169
170170
171171 HB1637 - 4 - LRB104 07466 HLH 17507 b
172172
173173
174174 HB1637- 5 -LRB104 07466 HLH 17507 b HB1637 - 5 - LRB104 07466 HLH 17507 b
175175 HB1637 - 5 - LRB104 07466 HLH 17507 b
176176 1 collection of a tax, based on gallonage of all products
177177 2 commonly or commercially known or sold as 1-K kerosene,
178178 3 regardless of its classification or uses, is prohibited except
179179 4 when the 1-K kerosene is delivered directly into a storage
180180 5 tank that is located at a facility that has withdrawal
181181 6 facilities that are readily accessible to and are capable of
182182 7 dispensing 1-K kerosene into the fuel supply tanks of motor
183183 8 vehicles. For purposes of this subsection (e), a facility is
184184 9 considered to have withdrawal facilities that are not "readily
185185 10 accessible to and capable of dispensing 1-K kerosene into the
186186 11 fuel supply tanks of motor vehicles" only if the 1-K kerosene
187187 12 is delivered from: (i) a dispenser hose that is short enough so
188188 13 that it will not reach the fuel supply tank of a motor vehicle
189189 14 or (ii) a dispenser that is enclosed by a fence or other
190190 15 physical barrier so that a vehicle cannot pull alongside the
191191 16 dispenser to permit fueling.
192192 17 Any person who sells or uses 1-K kerosene for use in motor
193193 18 vehicles upon which the tax imposed by this Law has not been
194194 19 paid shall be liable for any tax due on the sales or use of 1-K
195195 20 kerosene.
196196 21 As used in this Section, "Consumer Price Index" means the
197197 22 index published by the Bureau of Labor Statistics of the
198198 23 United States Department of Labor that measures the average
199199 24 change in prices of goods and services purchased by all urban
200200 25 consumers, United States city average, all items, 1982-84 =
201201 26 100.
202202
203203
204204
205205
206206
207207 HB1637 - 5 - LRB104 07466 HLH 17507 b
208208
209209
210210 HB1637- 6 -LRB104 07466 HLH 17507 b HB1637 - 6 - LRB104 07466 HLH 17507 b
211211 HB1637 - 6 - LRB104 07466 HLH 17507 b
212212 1 (Source: P.A. 102-700, eff. 4-19-22; 103-995, eff. 8-9-24.)
213213
214214
215215
216216
217217
218218 HB1637 - 6 - LRB104 07466 HLH 17507 b