Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0022 Latest Draft

Bill / Introduced Version Filed 01/13/2025

104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0022 Introduced 1/13/2025, by Sen. Christopher Belt 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 03537 HLH 13560 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0022 Introduced 1/13/2025, by Sen. Christopher Belt 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 03537 HLH 13560 b LRB104 03537 HLH 13560 b A BILL FOR
104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0022 Introduced 1/13/2025, by Sen. Christopher Belt 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".
LRB104 03537 HLH 13560 b LRB104 03537 HLH 13560 b
LRB104 03537 HLH 13560 b
A BILL FOR
SB0022LRB104 03537 HLH 13560 b SB0022 LRB104 03537 HLH 13560 b
SB0022 LRB104 03537 HLH 13560 b
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

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.

LRB104 03537 HLH 13560 b

SB0022 LRB104 03537 HLH 13560 b

SB0022- 2 -LRB104 03537 HLH 13560 b SB0022 - 2 - LRB104 03537 HLH 13560 b
SB0022 - 2 - LRB104 03537 HLH 13560 b
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.

SB0022 - 2 - LRB104 03537 HLH 13560 b

SB0022- 3 -LRB104 03537 HLH 13560 b SB0022 - 3 - LRB104 03537 HLH 13560 b
SB0022 - 3 - LRB104 03537 HLH 13560 b
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

SB0022 - 3 - LRB104 03537 HLH 13560 b

SB0022- 4 -LRB104 03537 HLH 13560 b SB0022 - 4 - LRB104 03537 HLH 13560 b
SB0022 - 4 - LRB104 03537 HLH 13560 b
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)

SB0022 - 4 - LRB104 03537 HLH 13560 b

SB0022- 5 -LRB104 03537 HLH 13560 b SB0022 - 5 - LRB104 03537 HLH 13560 b
SB0022 - 5 - LRB104 03537 HLH 13560 b
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

SB0022 - 5 - LRB104 03537 HLH 13560 b

SB0022- 6 -LRB104 03537 HLH 13560 b SB0022 - 6 - LRB104 03537 HLH 13560 b
SB0022 - 6 - LRB104 03537 HLH 13560 b
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

SB0022 - 6 - LRB104 03537 HLH 13560 b

SB0022- 7 -LRB104 03537 HLH 13560 b SB0022 - 7 - LRB104 03537 HLH 13560 b
SB0022 - 7 - LRB104 03537 HLH 13560 b
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

SB0022 - 7 - LRB104 03537 HLH 13560 b

SB0022- 8 -LRB104 03537 HLH 13560 b SB0022 - 8 - LRB104 03537 HLH 13560 b
SB0022 - 8 - LRB104 03537 HLH 13560 b
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

SB0022 - 8 - LRB104 03537 HLH 13560 b

SB0022- 9 -LRB104 03537 HLH 13560 b SB0022 - 9 - LRB104 03537 HLH 13560 b
SB0022 - 9 - LRB104 03537 HLH 13560 b
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

SB0022 - 9 - LRB104 03537 HLH 13560 b

SB0022- 10 -LRB104 03537 HLH 13560 b SB0022 - 10 - LRB104 03537 HLH 13560 b
SB0022 - 10 - LRB104 03537 HLH 13560 b
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

SB0022 - 10 - LRB104 03537 HLH 13560 b

SB0022- 11 -LRB104 03537 HLH 13560 b SB0022 - 11 - LRB104 03537 HLH 13560 b
SB0022 - 11 - LRB104 03537 HLH 13560 b
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

SB0022 - 11 - LRB104 03537 HLH 13560 b

SB0022- 12 -LRB104 03537 HLH 13560 b SB0022 - 12 - LRB104 03537 HLH 13560 b
SB0022 - 12 - LRB104 03537 HLH 13560 b
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

SB0022 - 12 - LRB104 03537 HLH 13560 b

SB0022- 13 -LRB104 03537 HLH 13560 b SB0022 - 13 - LRB104 03537 HLH 13560 b
SB0022 - 13 - LRB104 03537 HLH 13560 b
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

SB0022 - 13 - LRB104 03537 HLH 13560 b

SB0022- 14 -LRB104 03537 HLH 13560 b SB0022 - 14 - LRB104 03537 HLH 13560 b
SB0022 - 14 - LRB104 03537 HLH 13560 b
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

SB0022 - 14 - LRB104 03537 HLH 13560 b

SB0022- 15 -LRB104 03537 HLH 13560 b SB0022 - 15 - LRB104 03537 HLH 13560 b
SB0022 - 15 - LRB104 03537 HLH 13560 b
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

SB0022 - 15 - LRB104 03537 HLH 13560 b

SB0022- 16 -LRB104 03537 HLH 13560 b SB0022 - 16 - LRB104 03537 HLH 13560 b
SB0022 - 16 - LRB104 03537 HLH 13560 b
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

SB0022 - 16 - LRB104 03537 HLH 13560 b

SB0022- 17 -LRB104 03537 HLH 13560 b SB0022 - 17 - LRB104 03537 HLH 13560 b
SB0022 - 17 - LRB104 03537 HLH 13560 b
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

SB0022 - 17 - LRB104 03537 HLH 13560 b

SB0022- 18 -LRB104 03537 HLH 13560 b SB0022 - 18 - LRB104 03537 HLH 13560 b
SB0022 - 18 - LRB104 03537 HLH 13560 b
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

SB0022 - 18 - LRB104 03537 HLH 13560 b

SB0022- 19 -LRB104 03537 HLH 13560 b SB0022 - 19 - LRB104 03537 HLH 13560 b
SB0022 - 19 - LRB104 03537 HLH 13560 b
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

SB0022 - 19 - LRB104 03537 HLH 13560 b

SB0022- 20 -LRB104 03537 HLH 13560 b SB0022 - 20 - LRB104 03537 HLH 13560 b
SB0022 - 20 - LRB104 03537 HLH 13560 b
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

SB0022 - 20 - LRB104 03537 HLH 13560 b

SB0022- 21 -LRB104 03537 HLH 13560 b SB0022 - 21 - LRB104 03537 HLH 13560 b
SB0022 - 21 - LRB104 03537 HLH 13560 b
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,

SB0022 - 21 - LRB104 03537 HLH 13560 b

SB0022- 22 -LRB104 03537 HLH 13560 b SB0022 - 22 - LRB104 03537 HLH 13560 b
SB0022 - 22 - LRB104 03537 HLH 13560 b
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

SB0022 - 22 - LRB104 03537 HLH 13560 b

SB0022- 23 -LRB104 03537 HLH 13560 b SB0022 - 23 - LRB104 03537 HLH 13560 b
SB0022 - 23 - LRB104 03537 HLH 13560 b
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.

SB0022 - 23 - LRB104 03537 HLH 13560 b

SB0022- 24 -LRB104 03537 HLH 13560 b SB0022 - 24 - LRB104 03537 HLH 13560 b
SB0022 - 24 - LRB104 03537 HLH 13560 b
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

SB0022 - 24 - LRB104 03537 HLH 13560 b

SB0022- 25 -LRB104 03537 HLH 13560 b SB0022 - 25 - LRB104 03537 HLH 13560 b
SB0022 - 25 - LRB104 03537 HLH 13560 b
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.

SB0022 - 25 - LRB104 03537 HLH 13560 b

SB0022- 26 -LRB104 03537 HLH 13560 b SB0022 - 26 - LRB104 03537 HLH 13560 b
SB0022 - 26 - LRB104 03537 HLH 13560 b
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

SB0022 - 26 - LRB104 03537 HLH 13560 b

SB0022- 27 -LRB104 03537 HLH 13560 b SB0022 - 27 - LRB104 03537 HLH 13560 b
SB0022 - 27 - LRB104 03537 HLH 13560 b
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

SB0022 - 27 - LRB104 03537 HLH 13560 b

SB0022- 28 -LRB104 03537 HLH 13560 b SB0022 - 28 - LRB104 03537 HLH 13560 b
SB0022 - 28 - LRB104 03537 HLH 13560 b
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

SB0022 - 28 - LRB104 03537 HLH 13560 b

SB0022- 29 -LRB104 03537 HLH 13560 b SB0022 - 29 - LRB104 03537 HLH 13560 b
SB0022 - 29 - LRB104 03537 HLH 13560 b
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

SB0022 - 29 - LRB104 03537 HLH 13560 b

SB0022- 30 -LRB104 03537 HLH 13560 b SB0022 - 30 - LRB104 03537 HLH 13560 b
SB0022 - 30 - LRB104 03537 HLH 13560 b
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.

SB0022 - 30 - LRB104 03537 HLH 13560 b

SB0022- 31 -LRB104 03537 HLH 13560 b SB0022 - 31 - LRB104 03537 HLH 13560 b
SB0022 - 31 - LRB104 03537 HLH 13560 b
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

SB0022 - 31 - LRB104 03537 HLH 13560 b

SB0022- 32 -LRB104 03537 HLH 13560 b SB0022 - 32 - LRB104 03537 HLH 13560 b
SB0022 - 32 - LRB104 03537 HLH 13560 b
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

SB0022 - 32 - LRB104 03537 HLH 13560 b

SB0022- 33 -LRB104 03537 HLH 13560 b SB0022 - 33 - LRB104 03537 HLH 13560 b
SB0022 - 33 - LRB104 03537 HLH 13560 b
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

SB0022 - 33 - LRB104 03537 HLH 13560 b

SB0022- 34 -LRB104 03537 HLH 13560 b SB0022 - 34 - LRB104 03537 HLH 13560 b
SB0022 - 34 - LRB104 03537 HLH 13560 b
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

SB0022 - 34 - LRB104 03537 HLH 13560 b

SB0022- 35 -LRB104 03537 HLH 13560 b SB0022 - 35 - LRB104 03537 HLH 13560 b
SB0022 - 35 - LRB104 03537 HLH 13560 b
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.

SB0022 - 35 - LRB104 03537 HLH 13560 b

SB0022- 36 -LRB104 03537 HLH 13560 b SB0022 - 36 - LRB104 03537 HLH 13560 b
SB0022 - 36 - LRB104 03537 HLH 13560 b
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

SB0022 - 36 - LRB104 03537 HLH 13560 b

SB0022- 37 -LRB104 03537 HLH 13560 b SB0022 - 37 - LRB104 03537 HLH 13560 b
SB0022 - 37 - LRB104 03537 HLH 13560 b
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

SB0022 - 37 - LRB104 03537 HLH 13560 b

SB0022- 38 -LRB104 03537 HLH 13560 b SB0022 - 38 - LRB104 03537 HLH 13560 b
SB0022 - 38 - LRB104 03537 HLH 13560 b
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

SB0022 - 38 - LRB104 03537 HLH 13560 b

SB0022- 39 -LRB104 03537 HLH 13560 b SB0022 - 39 - LRB104 03537 HLH 13560 b
SB0022 - 39 - LRB104 03537 HLH 13560 b
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.)

SB0022 - 39 - LRB104 03537 HLH 13560 b