IL
Illinois Senate Bill SB1382

Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1382 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1382 Introduced 1/29/2025, by Sen. Sara Feigenholtz SYNOPSIS AS INTRODUCED: 35 ILCS 505/1.1 from Ch. 120, par. 417.135 ILCS 505/13 from Ch. 120, par. 429 Amends the Motor Fuel Tax Law. Provides that "motor fuel" means all volatile and inflammable substances, whether in liquid or gaseous form (currently, volatile and inflammable liquids). Provides that incidental use of motor fuel on private roads or private highways in the operation of a motor vehicle does not constitute a "purpose other than operating a motor vehicle upon the public highways" and does not form a basis for a claim for refund. Effective immediately, except that certain provisions take effect January 1, 2026. LRB104 03440 HLH 16962 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1382 Introduced 1/29/2025, by Sen. Sara Feigenholtz SYNOPSIS AS INTRODUCED: 35 ILCS 505/1.1 from Ch. 120, par. 417.135 ILCS 505/13 from Ch. 120, par. 429 35 ILCS 505/1.1 from Ch. 120, par. 417.1 35 ILCS 505/13 from Ch. 120, par. 429 Amends the Motor Fuel Tax Law. Provides that "motor fuel" means all volatile and inflammable substances, whether in liquid or gaseous form (currently, volatile and inflammable liquids). Provides that incidental use of motor fuel on private roads or private highways in the operation of a motor vehicle does not constitute a "purpose other than operating a motor vehicle upon the public highways" and does not form a basis for a claim for refund. Effective immediately, except that certain provisions take effect January 1, 2026. LRB104 03440 HLH 16962 b LRB104 03440 HLH 16962 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1382 Introduced 1/29/2025, by Sen. Sara Feigenholtz SYNOPSIS AS INTRODUCED:
33 35 ILCS 505/1.1 from Ch. 120, par. 417.135 ILCS 505/13 from Ch. 120, par. 429 35 ILCS 505/1.1 from Ch. 120, par. 417.1 35 ILCS 505/13 from Ch. 120, par. 429
44 35 ILCS 505/1.1 from Ch. 120, par. 417.1
55 35 ILCS 505/13 from Ch. 120, par. 429
66 Amends the Motor Fuel Tax Law. Provides that "motor fuel" means all volatile and inflammable substances, whether in liquid or gaseous form (currently, volatile and inflammable liquids). Provides that incidental use of motor fuel on private roads or private highways in the operation of a motor vehicle does not constitute a "purpose other than operating a motor vehicle upon the public highways" and does not form a basis for a claim for refund. Effective immediately, except that certain provisions take effect January 1, 2026.
77 LRB104 03440 HLH 16962 b LRB104 03440 HLH 16962 b
88 LRB104 03440 HLH 16962 b
99 A BILL FOR
1010 SB1382LRB104 03440 HLH 16962 b SB1382 LRB104 03440 HLH 16962 b
1111 SB1382 LRB104 03440 HLH 16962 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 Sections 1.1 and 13 as follows:
1717 6 (35 ILCS 505/1.1) (from Ch. 120, par. 417.1)
1818 7 Sec. 1.1. "Motor Fuel" means all volatile and inflammable
1919 8 substances (whether in liquid or gaseous form) that are
2020 9 liquids produced, blended or compounded for the purpose of, or
2121 10 that which are suitable or practicable for, operating motor
2222 11 vehicles. Among other things, "Motor Fuel" includes "Special
2323 12 Fuel" as defined in Section 1.13 of this Act.
2424 13 (Source: Laws 1963, p. 1557.)
2525 14 (35 ILCS 505/13) (from Ch. 120, par. 429)
2626 15 Sec. 13. Refund of tax paid. Any person other than a
2727 16 distributor or supplier, who loses motor fuel through any
2828 17 cause or uses motor fuel (upon which he has paid the amount
2929 18 required to be collected under Section 2 of this Act) for any
3030 19 purpose other than operating a motor vehicle upon the public
3131 20 highways or waters, shall be reimbursed and repaid the amount
3232 21 so paid.
3333 22 Any person who purchases motor fuel in Illinois and uses
3434
3535
3636
3737 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1382 Introduced 1/29/2025, by Sen. Sara Feigenholtz SYNOPSIS AS INTRODUCED:
3838 35 ILCS 505/1.1 from Ch. 120, par. 417.135 ILCS 505/13 from Ch. 120, par. 429 35 ILCS 505/1.1 from Ch. 120, par. 417.1 35 ILCS 505/13 from Ch. 120, par. 429
3939 35 ILCS 505/1.1 from Ch. 120, par. 417.1
4040 35 ILCS 505/13 from Ch. 120, par. 429
4141 Amends the Motor Fuel Tax Law. Provides that "motor fuel" means all volatile and inflammable substances, whether in liquid or gaseous form (currently, volatile and inflammable liquids). Provides that incidental use of motor fuel on private roads or private highways in the operation of a motor vehicle does not constitute a "purpose other than operating a motor vehicle upon the public highways" and does not form a basis for a claim for refund. Effective immediately, except that certain provisions take effect January 1, 2026.
4242 LRB104 03440 HLH 16962 b LRB104 03440 HLH 16962 b
4343 LRB104 03440 HLH 16962 b
4444 A BILL FOR
4545
4646
4747
4848
4949
5050 35 ILCS 505/1.1 from Ch. 120, par. 417.1
5151 35 ILCS 505/13 from Ch. 120, par. 429
5252
5353
5454
5555 LRB104 03440 HLH 16962 b
5656
5757
5858
5959
6060
6161
6262
6363
6464
6565 SB1382 LRB104 03440 HLH 16962 b
6666
6767
6868 SB1382- 2 -LRB104 03440 HLH 16962 b SB1382 - 2 - LRB104 03440 HLH 16962 b
6969 SB1382 - 2 - LRB104 03440 HLH 16962 b
7070 1 that motor fuel in another state and that other state imposes a
7171 2 tax on the use of such motor fuel shall be reimbursed and
7272 3 repaid the amount of Illinois tax paid under Section 2 of this
7373 4 Act on the motor fuel used in such other state. Reimbursement
7474 5 and repayment shall be made by the Department upon receipt of
7575 6 adequate proof of taxes directly paid to another state and the
7676 7 amount of motor fuel used in that state.
7777 8 Claims based in whole or in part on taxes paid to another
7878 9 state shall include (i) a certified copy of the tax return
7979 10 filed with such other state by the claimant; (ii) a copy of
8080 11 either the cancelled check paying the tax due on such return,
8181 12 or a receipt acknowledging payment of the tax due on such tax
8282 13 return; and (iii) such other information as the Department may
8383 14 reasonably require. This paragraph shall not apply to taxes
8484 15 paid on returns filed under Section 13a.3 of this Act.
8585 16 Any person who purchases motor fuel use tax decals as
8686 17 required by Section 13a.4 and pays an amount of fees for such
8787 18 decals that exceeds the amount due shall be reimbursed and
8888 19 repaid the amount of the decal fees that are deemed by the
8989 20 department to be in excess of the amount due. Alternatively,
9090 21 any person who purchases motor fuel use tax decals as required
9191 22 by Section 13a.4 may credit any excess decal payment verified
9292 23 by the Department against amounts subsequently due for the
9393 24 purchase of additional decals, until such time as no excess
9494 25 payment remains.
9595 26 Claims for such reimbursement must be made to the
9696
9797
9898
9999
100100
101101 SB1382 - 2 - LRB104 03440 HLH 16962 b
102102
103103
104104 SB1382- 3 -LRB104 03440 HLH 16962 b SB1382 - 3 - LRB104 03440 HLH 16962 b
105105 SB1382 - 3 - LRB104 03440 HLH 16962 b
106106 1 Department of Revenue, duly verified by the claimant (or by
107107 2 the claimant's legal representative if the claimant has died
108108 3 or become a person under legal disability), upon forms
109109 4 prescribed by the Department. The claim must state such facts
110110 5 relating to the purchase, importation, manufacture or
111111 6 production of the motor fuel by the claimant as the Department
112112 7 may deem necessary, and the time when, and the circumstances
113113 8 of its loss or the specific purpose for which it was used (as
114114 9 the case may be), together with such other information as the
115115 10 Department may reasonably require. No claim based upon idle
116116 11 time shall be allowed. Claims for reimbursement for
117117 12 overpayment of decal fees shall be made to the Department of
118118 13 Revenue, duly verified by the claimant (or by the claimant's
119119 14 legal representative if the claimant has died or become a
120120 15 person under legal disability), upon forms prescribed by the
121121 16 Department. The claim shall state facts relating to the
122122 17 overpayment of decal fees, together with such other
123123 18 information as the Department may reasonably require. Claims
124124 19 for reimbursement of overpayment of decal fees paid on or
125125 20 after January 1, 2011 must be filed not later than one year
126126 21 after the date on which the fees were paid by the claimant. If
127127 22 it is determined that the Department should reimburse a
128128 23 claimant for overpayment of decal fees, the Department shall
129129 24 first apply the amount of such refund against any tax or
130130 25 penalty or interest due by the claimant under Section 13a of
131131 26 this Act.
132132
133133
134134
135135
136136
137137 SB1382 - 3 - LRB104 03440 HLH 16962 b
138138
139139
140140 SB1382- 4 -LRB104 03440 HLH 16962 b SB1382 - 4 - LRB104 03440 HLH 16962 b
141141 SB1382 - 4 - LRB104 03440 HLH 16962 b
142142 1 Claims for full reimbursement for taxes paid on or before
143143 2 December 31, 1999 must be filed not later than one year after
144144 3 the date on which the tax was paid by the claimant. If,
145145 4 however, a claim for such reimbursement otherwise meeting the
146146 5 requirements of this Section is filed more than one year but
147147 6 less than 2 years after that date, the claimant shall be
148148 7 reimbursed at the rate of 80% of the amount to which he would
149149 8 have been entitled if his claim had been timely filed.
150150 9 Claims for full reimbursement for taxes paid on or after
151151 10 January 1, 2000 must be filed not later than 2 years after the
152152 11 date on which the tax was paid by the claimant.
153153 12 The Department may make such investigation of the
154154 13 correctness of the facts stated in such claims as it deems
155155 14 necessary. When the Department has approved any such claim, it
156156 15 shall pay to the claimant (or to the claimant's legal
157157 16 representative, as such if the claimant has died or become a
158158 17 person under legal disability) the reimbursement provided in
159159 18 this Section, out of any moneys appropriated to it for that
160160 19 purpose.
161161 20 Any distributor or supplier who has paid the tax imposed
162162 21 by Section 2 of this Act upon motor fuel lost or used by such
163163 22 distributor or supplier for any purpose other than operating a
164164 23 motor vehicle upon the public highways or waters may file a
165165 24 claim for credit or refund to recover the amount so paid. Such
166166 25 claims shall be filed on forms prescribed by the Department.
167167 26 Such claims shall be made to the Department, duly verified by
168168
169169
170170
171171
172172
173173 SB1382 - 4 - LRB104 03440 HLH 16962 b
174174
175175
176176 SB1382- 5 -LRB104 03440 HLH 16962 b SB1382 - 5 - LRB104 03440 HLH 16962 b
177177 SB1382 - 5 - LRB104 03440 HLH 16962 b
178178 1 the claimant (or by the claimant's legal representative if the
179179 2 claimant has died or become a person under legal disability),
180180 3 upon forms prescribed by the Department. The claim shall state
181181 4 such facts relating to the purchase, importation, manufacture
182182 5 or production of the motor fuel by the claimant as the
183183 6 Department may deem necessary and the time when the loss or
184184 7 nontaxable use occurred, and the circumstances of its loss or
185185 8 the specific purpose for which it was used (as the case may
186186 9 be), together with such other information as the Department
187187 10 may reasonably require. Claims must be filed not later than
188188 11 one year after the date on which the tax was paid by the
189189 12 claimant.
190190 13 The Department may make such investigation of the
191191 14 correctness of the facts stated in such claims as it deems
192192 15 necessary. When the Department approves a claim, the
193193 16 Department shall issue a refund or credit memorandum as
194194 17 requested by the taxpayer, to the distributor or supplier who
195195 18 made the payment for which the refund or credit is being given
196196 19 or, if the distributor or supplier has died or become
197197 20 incompetent, to such distributor's or supplier's legal
198198 21 representative, as such. The amount of such credit memorandum
199199 22 shall be credited against any tax due or to become due under
200200 23 this Act from the distributor or supplier who made the payment
201201 24 for which credit has been given.
202202 25 Any credit or refund that is allowed under this Section
203203 26 shall bear interest at the rate and in the manner specified in
204204
205205
206206
207207
208208
209209 SB1382 - 5 - LRB104 03440 HLH 16962 b
210210
211211
212212 SB1382- 6 -LRB104 03440 HLH 16962 b SB1382 - 6 - LRB104 03440 HLH 16962 b
213213 SB1382 - 6 - LRB104 03440 HLH 16962 b
214214 1 the Uniform Penalty and Interest Act.
215215 2 In case the distributor or supplier requests and the
216216 3 Department determines that the claimant is entitled to a
217217 4 refund, such refund shall be made only from such appropriation
218218 5 as may be available for that purpose. If it appears unlikely
219219 6 that the amount appropriated would permit everyone having a
220220 7 claim allowed during the period covered by such appropriation
221221 8 to elect to receive a cash refund, the Department, by rule or
222222 9 regulation, shall provide for the payment of refunds in
223223 10 hardship cases and shall define what types of cases qualify as
224224 11 hardship cases.
225225 12 In any case in which there has been an erroneous refund of
226226 13 tax or fees payable under this Section, a notice of tax
227227 14 liability may be issued at any time within 3 years from the
228228 15 making of that refund, or within 5 years from the making of
229229 16 that refund if it appears that any part of the refund was
230230 17 induced by fraud or the misrepresentation of material fact.
231231 18 The amount of any proposed assessment set forth by the
232232 19 Department shall be limited to the amount of the erroneous
233233 20 refund.
234234 21 If no tax is due and no proceeding is pending to determine
235235 22 whether such distributor or supplier is indebted to the
236236 23 Department for tax, the credit memorandum so issued may be
237237 24 assigned and set over by the lawful holder thereof, subject to
238238 25 reasonable rules of the Department, to any other licensed
239239 26 distributor or supplier who is subject to this Act, and the
240240
241241
242242
243243
244244
245245 SB1382 - 6 - LRB104 03440 HLH 16962 b
246246
247247
248248 SB1382- 7 -LRB104 03440 HLH 16962 b SB1382 - 7 - LRB104 03440 HLH 16962 b
249249 SB1382 - 7 - LRB104 03440 HLH 16962 b
250250 1 amount thereof applied by the Department against any tax due
251251 2 or to become due under this Act from such assignee.
252252 3 If the payment for which the distributor's or supplier's
253253 4 claim is filed is held in the protest fund of the State
254254 5 Treasury during the pendency of the claim for credit
255255 6 proceedings pursuant to the order of the court in accordance
256256 7 with Section 2a of the State Officers and Employees Money
257257 8 Disposition Act and if it is determined by the Department or by
258258 9 the final order of a reviewing court under the Administrative
259259 10 Review Law that the claimant is entitled to all or a part of
260260 11 the credit claimed, the claimant, instead of receiving a
261261 12 credit memorandum from the Department, shall receive a cash
262262 13 refund from the protest fund as provided for in Section 2a of
263263 14 the State Officers and Employees Money Disposition Act.
264264 15 If any person ceases to be licensed as a distributor or
265265 16 supplier while still holding an unused credit memorandum
266266 17 issued under this Act, such person may, at his election
267267 18 (instead of assigning the credit memorandum to a licensed
268268 19 distributor or licensed supplier under this Act), surrender
269269 20 such unused credit memorandum to the Department and receive a
270270 21 refund of the amount to which such person is entitled.
271271 22 For claims based upon taxes paid on or before December 31,
272272 23 2000, a claim based upon the use of undyed diesel fuel shall
273273 24 not be allowed except (i) if allowed under the following
274274 25 paragraph or (ii) for undyed diesel fuel used by a commercial
275275 26 vehicle, as that term is defined in Section 1-111.8 of the
276276
277277
278278
279279
280280
281281 SB1382 - 7 - LRB104 03440 HLH 16962 b
282282
283283
284284 SB1382- 8 -LRB104 03440 HLH 16962 b SB1382 - 8 - LRB104 03440 HLH 16962 b
285285 SB1382 - 8 - LRB104 03440 HLH 16962 b
286286 1 Illinois Vehicle Code, for any purpose other than operating
287287 2 the commercial vehicle upon the public highways and unlicensed
288288 3 commercial vehicles operating on private property. Claims
289289 4 shall be limited to commercial vehicles that are operated for
290290 5 both highway purposes and any purposes other than operating
291291 6 such vehicles upon the public highways.
292292 7 For claims based upon taxes paid on or after January 1,
293293 8 2000, a claim based upon the use of undyed diesel fuel shall
294294 9 not be allowed except (i) if allowed under the preceding
295295 10 paragraph or (ii) for claims for the following:
296296 11 (1) Undyed diesel fuel used (i) in a manufacturing
297297 12 process, as defined in Section 2-45 of the Retailers'
298298 13 Occupation Tax Act, wherein the undyed diesel fuel becomes
299299 14 a component part of a product or by-product, other than
300300 15 fuel or motor fuel, when the use of dyed diesel fuel in
301301 16 that manufacturing process results in a product that is
302302 17 unsuitable for its intended use or (ii) for testing
303303 18 machinery and equipment in a manufacturing process, as
304304 19 defined in Section 2-45 of the Retailers' Occupation Tax
305305 20 Act, wherein the testing takes place on private property.
306306 21 (2) Undyed diesel fuel used by a manufacturer on
307307 22 private property in the research and development, as
308308 23 defined in Section 1.29, of machinery or equipment
309309 24 intended for manufacture.
310310 25 (3) Undyed diesel fuel used by a single unit
311311 26 self-propelled agricultural fertilizer implement,
312312
313313
314314
315315
316316
317317 SB1382 - 8 - LRB104 03440 HLH 16962 b
318318
319319
320320 SB1382- 9 -LRB104 03440 HLH 16962 b SB1382 - 9 - LRB104 03440 HLH 16962 b
321321 SB1382 - 9 - LRB104 03440 HLH 16962 b
322322 1 designed for on and off road use, equipped with flotation
323323 2 tires and specially adapted for the application of plant
324324 3 food materials or agricultural chemicals.
325325 4 (4) Undyed diesel fuel used by a commercial motor
326326 5 vehicle for any purpose other than operating the
327327 6 commercial motor vehicle upon the public highways. Claims
328328 7 shall be limited to commercial motor vehicles that are
329329 8 operated for both highway purposes and any purposes other
330330 9 than operating such vehicles upon the public highways.
331331 10 (5) Undyed diesel fuel used by a unit of local
332332 11 government in its operation of an airport if the undyed
333333 12 diesel fuel is used directly in airport operations on
334334 13 airport property.
335335 14 (6) Undyed diesel fuel used by refrigeration units
336336 15 that are permanently mounted to a semitrailer, as defined
337337 16 in Section 1.28 of this Law, wherein the refrigeration
338338 17 units have a fuel supply system dedicated solely for the
339339 18 operation of the refrigeration units.
340340 19 (7) Undyed diesel fuel used by power take-off
341341 20 equipment as defined in Section 1.27 of this Law.
342342 21 (8) Beginning on the effective date of this amendatory
343343 22 Act of the 94th General Assembly, undyed diesel fuel used
344344 23 by tugs and spotter equipment to shift vehicles or parcels
345345 24 on both private and airport property. Any claim under this
346346 25 item (8) may be made only by a claimant that owns tugs and
347347 26 spotter equipment and operates that equipment on both
348348
349349
350350
351351
352352
353353 SB1382 - 9 - LRB104 03440 HLH 16962 b
354354
355355
356356 SB1382- 10 -LRB104 03440 HLH 16962 b SB1382 - 10 - LRB104 03440 HLH 16962 b
357357 SB1382 - 10 - LRB104 03440 HLH 16962 b
358358 1 private and airport property. The aggregate of all credits
359359 2 or refunds resulting from claims filed under this item (8)
360360 3 by a claimant in any calendar year may not exceed
361361 4 $100,000. A claim may not be made under this item (8) by
362362 5 the same claimant more often than once each quarter. For
363363 6 the purposes of this item (8), "tug" means a vehicle
364364 7 designed for use on airport property that shifts
365365 8 custom-designed containers of parcels from loading docks
366366 9 to aircraft, and "spotter equipment" means a vehicle
367367 10 designed for use on both private and airport property that
368368 11 shifts trailers containing parcels between staging areas
369369 12 and loading docks.
370370 13 Any person who has paid the tax imposed by Section 2 of
371371 14 this Law upon undyed diesel fuel that is unintentionally mixed
372372 15 with dyed diesel fuel and who owns or controls the mixture of
373373 16 undyed diesel fuel and dyed diesel fuel may file a claim for
374374 17 refund to recover the amount paid. The amount of undyed diesel
375375 18 fuel unintentionally mixed must equal 500 gallons or more. Any
376376 19 claim for refund of unintentionally mixed undyed diesel fuel
377377 20 and dyed diesel fuel shall be supported by documentation
378378 21 showing the date and location of the unintentional mixing, the
379379 22 number of gallons involved, the disposition of the mixed
380380 23 diesel fuel, and any other information that the Department may
381381 24 reasonably require. Any unintentional mixture of undyed diesel
382382 25 fuel and dyed diesel fuel shall be sold or used only for
383383 26 non-highway purposes.
384384
385385
386386
387387
388388
389389 SB1382 - 10 - LRB104 03440 HLH 16962 b
390390
391391
392392 SB1382- 11 -LRB104 03440 HLH 16962 b SB1382 - 11 - LRB104 03440 HLH 16962 b
393393 SB1382 - 11 - LRB104 03440 HLH 16962 b
394394 1 The Department shall promulgate regulations establishing
395395 2 specific limits on the amount of undyed diesel fuel that may be
396396 3 claimed for refund.
397397 4 For purposes of claims for refund, "loss" means the
398398 5 reduction of motor fuel resulting from fire, theft, spillage,
399399 6 spoilage, leakage, or any other provable cause, but does not
400400 7 include a reduction resulting from evaporation, or shrinkage
401401 8 due to temperature variations. In the case of losses due to
402402 9 fire or theft, the claimant must include fire department or
403403 10 police department reports and any other documentation that the
404404 11 Department may require.
405405 12 For purposes of claims for refund, "any purpose other than
406406 13 operating a motor vehicle upon the public highways" refers to
407407 14 the specific purpose for which the motor vehicle was used and
408408 15 does not refer to the specific location where the motor fuel
409409 16 was used. Incidental use of motor fuel on private roads or
410410 17 private highways in the operation of a motor vehicle does not
411411 18 constitute a "purpose other than operating a motor vehicle
412412 19 upon the public highways" and does not form a basis for a claim
413413 20 under this Section. The provisions of this amendatory Act of
414414 21 the 104th General Assembly are declaratory of existing law as
415415 22 to the meaning and scope of this claim for refund.
416416 23 (Source: P.A. 100-1171, eff. 1-4-19.)
417417
418418
419419
420420
421421
422422 SB1382 - 11 - LRB104 03440 HLH 16962 b