IL
Illinois House Bill HB2736

Illinois 2025-2026 Regular Session

Illinois House Bill HB2736 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2736 Introduced , by Rep. Christopher "C.D." Davidsmeyer SYNOPSIS AS INTRODUCED: 35 ILCS 505/1.30 new35 ILCS 505/2 from Ch. 120, par. 418 Amends the Motor Fuel Tax Law. Provides that, on and after July 1, 2025, 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. LRB104 09222 LNS 19279 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2736 Introduced , by Rep. Christopher "C.D." Davidsmeyer SYNOPSIS AS INTRODUCED: 35 ILCS 505/1.30 new35 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, 2025, 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. LRB104 09222 LNS 19279 b LRB104 09222 LNS 19279 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2736 Introduced , by Rep. Christopher "C.D." Davidsmeyer SYNOPSIS AS INTRODUCED:
33 35 ILCS 505/1.30 new35 ILCS 505/2 from Ch. 120, par. 418 35 ILCS 505/1.30 new 35 ILCS 505/2 from Ch. 120, par. 418
44 35 ILCS 505/1.30 new
55 35 ILCS 505/2 from Ch. 120, par. 418
66 Amends the Motor Fuel Tax Law. Provides that, on and after July 1, 2025, 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.
77 LRB104 09222 LNS 19279 b LRB104 09222 LNS 19279 b
88 LRB104 09222 LNS 19279 b
99 A BILL FOR
1010 HB2736LRB104 09222 LNS 19279 b HB2736 LRB104 09222 LNS 19279 b
1111 HB2736 LRB104 09222 LNS 19279 b
1212 1 AN ACT concerning revenue.
1313 2 Be it enacted by the People of the State of Illinois,
1414 3 represented in the General Assembly:
1515 4 Section 5. The Motor Fuel Tax Law is amended by changing
1616 5 Section 2 and by adding Section 1.30 as follows:
1717 6 (35 ILCS 505/1.30 new)
1818 7 Sec. 1.30. Marine fuel. "Marine fuel" means motor fuel
1919 8 specially formulated to be used in the propulsion of
2020 9 watercraft.
2121 10 (35 ILCS 505/2) (from Ch. 120, par. 418)
2222 11 Sec. 2. A tax is imposed on the privilege of operating
2323 12 motor vehicles upon the public highways and recreational-type
2424 13 watercraft upon the waters of this State.
2525 14 (a) Prior to August 1, 1989, the tax is imposed at the rate
2626 15 of 13 cents per gallon on all motor fuel used in motor vehicles
2727 16 operating on the public highways and recreational type
2828 17 watercraft operating upon the waters of this State. Beginning
2929 18 on August 1, 1989 and until January 1, 1990, the rate of the
3030 19 tax imposed in this paragraph shall be 16 cents per gallon.
3131 20 Beginning January 1, 1990 and until July 1, 2019, the rate of
3232 21 tax imposed in this paragraph, including the tax on compressed
3333 22 natural gas, shall be 19 cents per gallon. Beginning July 1,
3434
3535
3636
3737 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2736 Introduced , by Rep. Christopher "C.D." Davidsmeyer SYNOPSIS AS INTRODUCED:
3838 35 ILCS 505/1.30 new35 ILCS 505/2 from Ch. 120, par. 418 35 ILCS 505/1.30 new 35 ILCS 505/2 from Ch. 120, par. 418
3939 35 ILCS 505/1.30 new
4040 35 ILCS 505/2 from Ch. 120, par. 418
4141 Amends the Motor Fuel Tax Law. Provides that, on and after July 1, 2025, 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.
4242 LRB104 09222 LNS 19279 b LRB104 09222 LNS 19279 b
4343 LRB104 09222 LNS 19279 b
4444 A BILL FOR
4545
4646
4747
4848
4949
5050 35 ILCS 505/1.30 new
5151 35 ILCS 505/2 from Ch. 120, par. 418
5252
5353
5454
5555 LRB104 09222 LNS 19279 b
5656
5757
5858
5959
6060
6161
6262
6363
6464
6565 HB2736 LRB104 09222 LNS 19279 b
6666
6767
6868 HB2736- 2 -LRB104 09222 LNS 19279 b HB2736 - 2 - LRB104 09222 LNS 19279 b
6969 HB2736 - 2 - LRB104 09222 LNS 19279 b
7070 1 2019 and until July 1, 2020, the rate of tax imposed in this
7171 2 paragraph shall be 38 cents per gallon. Beginning July 1, 2020
7272 3 and until July 1, 2021, the rate of tax imposed in this
7373 4 paragraph shall be 38.7 cents per gallon. Beginning July 1,
7474 5 2021 and until January 1, 2023, the rate of tax imposed in this
7575 6 paragraph shall be 39.2 cents per gallon. On January 1, 2023,
7676 7 the rate of tax imposed in this paragraph shall be increased by
7777 8 an amount equal to the percentage increase, if any, in the
7878 9 Consumer Price Index for the 12 months ending in September of
7979 10 2022. On July 1, 2023, and on July 1 of each subsequent year,
8080 11 the rate of tax imposed in this paragraph shall be increased by
8181 12 an amount equal to the percentage increase, if any, in the
8282 13 Consumer Price Index for the 12 months ending in March of the
8383 14 year in which the increase takes place. The percentage
8484 15 increase in the Consumer Price Index shall be calculated as
8585 16 follows: (1) calculate the average Consumer Price Index for
8686 17 the full 12 months ending in March of the year in which the
8787 18 increase takes place; (2) calculate the average Consumer Price
8888 19 Index for the full 12 months ending in March of the year
8989 20 immediately preceding the year in which the increase takes
9090 21 place; (3) calculate the percentage increase, if any, in the
9191 22 current-year average determined under item (1) over the
9292 23 preceding-year average determined under item (2). The rate
9393 24 shall be rounded to the nearest one-tenth of one cent.
9494 25 (a-5) Beginning on July 1, 2022 and through December 31,
9595 26 2022, each retailer of motor fuel shall cause the following
9696
9797
9898
9999
100100
101101 HB2736 - 2 - LRB104 09222 LNS 19279 b
102102
103103
104104 HB2736- 3 -LRB104 09222 LNS 19279 b HB2736 - 3 - LRB104 09222 LNS 19279 b
105105 HB2736 - 3 - LRB104 09222 LNS 19279 b
106106 1 notice to be posted in a prominently visible place on each
107107 2 retail dispensing device that is used to dispense motor fuel
108108 3 in the State of Illinois: "As of July 1, 2022, the State of
109109 4 Illinois has suspended the inflation adjustment to the motor
110110 5 fuel tax through December 31, 2022. The price on this pump
111111 6 should reflect the suspension of the tax increase." The notice
112112 7 shall be printed in bold print on a sign that is no smaller
113113 8 than 4 inches by 8 inches. The sign shall be clearly visible to
114114 9 customers. Any retailer who fails to post or maintain a
115115 10 required sign through December 31, 2022 is guilty of a petty
116116 11 offense for which the fine shall be $500 per day per each
117117 12 retail premises where a violation occurs.
118118 13 (b) Until July 1, 2019, the tax on the privilege of
119119 14 operating motor vehicles which use diesel fuel, liquefied
120120 15 natural gas, or propane shall be the rate according to
121121 16 paragraph (a) plus an additional 2 1/2 cents per gallon.
122122 17 Beginning July 1, 2019, the tax on the privilege of operating
123123 18 motor vehicles which use diesel fuel, liquefied natural gas,
124124 19 or propane shall be the rate according to subsection (a) plus
125125 20 an additional 7.5 cents per gallon. "Diesel fuel" is defined
126126 21 as any product intended for use or offered for sale as a fuel
127127 22 for engines in which the fuel is injected into the combustion
128128 23 chamber and ignited by pressure without electric spark.
129129 24 (c) A tax is imposed upon the privilege of engaging in the
130130 25 business of selling motor fuel as a retailer or reseller on all
131131 26 motor fuel used in motor vehicles operating on the public
132132
133133
134134
135135
136136
137137 HB2736 - 3 - LRB104 09222 LNS 19279 b
138138
139139
140140 HB2736- 4 -LRB104 09222 LNS 19279 b HB2736 - 4 - LRB104 09222 LNS 19279 b
141141 HB2736 - 4 - LRB104 09222 LNS 19279 b
142142 1 highways and recreational type watercraft operating upon the
143143 2 waters of this State: (1) at the rate of 3 cents per gallon on
144144 3 motor fuel owned or possessed by such retailer or reseller at
145145 4 12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
146146 5 per gallon on motor fuel owned or possessed by such retailer or
147147 6 reseller at 12:01 A.M. on January 1, 1990.
148148 7 Retailers and resellers who are subject to this additional
149149 8 tax shall be required to inventory such motor fuel and pay this
150150 9 additional tax in a manner prescribed by the Department of
151151 10 Revenue.
152152 11 The tax imposed in this paragraph (c) shall be in addition
153153 12 to all other taxes imposed by the State of Illinois or any unit
154154 13 of local government in this State.
155155 14 (d) Except as provided in Section 2a, the collection of a
156156 15 tax based on gallonage of gasoline used for the propulsion of
157157 16 any aircraft is prohibited on and after October 1, 1979, and
158158 17 the collection of a tax based on gallonage of special fuel used
159159 18 for the propulsion of any aircraft is prohibited on and after
160160 19 December 1, 2019.
161161 20 (d-5) On and after July 1, 2025, marine fuel, as defined in
162162 21 Section 1.30, is exempt from the tax imposed under this Act.
163163 22 (e) The collection of a tax, based on gallonage of all
164164 23 products commonly or commercially known or sold as 1-K
165165 24 kerosene, regardless of its classification or uses, is
166166 25 prohibited (i) on and after July 1, 1992 until December 31,
167167 26 1999, except when the 1-K kerosene is either: (1) delivered
168168
169169
170170
171171
172172
173173 HB2736 - 4 - LRB104 09222 LNS 19279 b
174174
175175
176176 HB2736- 5 -LRB104 09222 LNS 19279 b HB2736 - 5 - LRB104 09222 LNS 19279 b
177177 HB2736 - 5 - LRB104 09222 LNS 19279 b
178178 1 into bulk storage facilities of a bulk user, or (2) delivered
179179 2 directly into the fuel supply tanks of motor vehicles and (ii)
180180 3 on and after January 1, 2000. Beginning on January 1, 2000, the
181181 4 collection of a tax, based on gallonage of all products
182182 5 commonly or commercially known or sold as 1-K kerosene,
183183 6 regardless of its classification or uses, is prohibited except
184184 7 when the 1-K kerosene is delivered directly into a storage
185185 8 tank that is located at a facility that has withdrawal
186186 9 facilities that are readily accessible to and are capable of
187187 10 dispensing 1-K kerosene into the fuel supply tanks of motor
188188 11 vehicles. For purposes of this subsection (e), a facility is
189189 12 considered to have withdrawal facilities that are not "readily
190190 13 accessible to and capable of dispensing 1-K kerosene into the
191191 14 fuel supply tanks of motor vehicles" only if the 1-K kerosene
192192 15 is delivered from: (i) a dispenser hose that is short enough so
193193 16 that it will not reach the fuel supply tank of a motor vehicle
194194 17 or (ii) a dispenser that is enclosed by a fence or other
195195 18 physical barrier so that a vehicle cannot pull alongside the
196196 19 dispenser to permit fueling.
197197 20 Any person who sells or uses 1-K kerosene for use in motor
198198 21 vehicles upon which the tax imposed by this Law has not been
199199 22 paid shall be liable for any tax due on the sales or use of 1-K
200200 23 kerosene.
201201 24 As used in this Section, "Consumer Price Index" means the
202202 25 index published by the Bureau of Labor Statistics of the
203203 26 United States Department of Labor that measures the average
204204
205205
206206
207207
208208
209209 HB2736 - 5 - LRB104 09222 LNS 19279 b
210210
211211
212212 HB2736- 6 -LRB104 09222 LNS 19279 b HB2736 - 6 - LRB104 09222 LNS 19279 b
213213 HB2736 - 6 - LRB104 09222 LNS 19279 b
214214 1 change in prices of goods and services purchased by all urban
215215 2 consumers, United States city average, all items, 1982-84 =
216216 3 100.
217217 4 (Source: P.A. 102-700, eff. 4-19-22; 103-995, eff. 8-9-24.)
218218
219219
220220
221221
222222
223223 HB2736 - 6 - LRB104 09222 LNS 19279 b