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Illinois General Assembly - Full Text of SB2978 SB2978 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2978

 

Introduced 2/4/2020, by Sen. Bill Cunningham

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-11-2.3

    Amends the Illinois Municipal Code. Provides that all municipalities (currently, only municipalities in a county with a population of over 3,000,000 inhabitants) may impose a motor fuel tax. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2978LRB101 17141 HLH 66542 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 8-11-2.3 as follows:
 
6    (65 ILCS 5/8-11-2.3)
7    Sec. 8-11-2.3. Municipal Motor Fuel Tax Law.
8Notwithstanding any other provision of law, in addition to any
9other tax that may be imposed, a municipality in a county with
10a population of over 3,000,000 inhabitants may also impose, by
11ordinance, a tax upon all persons engaged in the municipality
12in the business of selling motor fuel, as defined in the Motor
13Fuel Tax Law, at retail for the operation of motor vehicles
14upon public highways or for the operation of recreational
15watercraft upon waterways. The tax may be imposed, in one cent
16increments, at a rate not to exceed $0.03 per gallon of motor
17fuel sold at retail within the municipality for the purpose of
18use or consumption and not for the purpose of resale. The tax
19may not be imposed under this Section on aviation fuel, as
20defined in Section 3 of the Retailers' Occupation Tax Act.
21    Persons subject to any tax imposed under the authority
22granted in this Section may reimburse themselves for their
23seller's tax liability hereunder by separately stating that tax

 

 

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1as an additional charge, which charge may be stated in
2combination, in a single amount, with State tax which sellers
3are required to collect under the Use Tax Act, pursuant to such
4bracket schedules as the Department may prescribe.
5    A tax imposed pursuant to this Section, and all civil
6penalties that may be assessed as an incident thereof, shall be
7administered, collected, and enforced by the Department of
8Revenue in the same manner as the tax imposed under the
9Retailers' Occupation Tax Act, as now or hereafter amended,
10insofar as may be practicable; except that in the event of a
11conflict with the provisions of this Section, this Section
12shall control. The Department of Revenue shall have full power
13to: administer and enforce this Section; collect all taxes and
14penalties due hereunder; dispose of taxes and penalties so
15collected in the manner hereinafter provided; and determine all
16rights to credit memoranda arising on account of the erroneous
17payment of tax or penalty hereunder.
18    Whenever the Department determines that a refund shall be
19made under this Section to a claimant instead of issuing a
20credit memorandum, the Department shall notify the State
21Comptroller, who shall cause the order to be drawn for the
22amount specified, and to the person named, in the notification
23from the Department. The refund shall be paid by the State
24Treasurer out of the Municipal Motor Fuel Tax Fund.
25    The Department shall immediately pay over to the State
26Treasurer, ex officio, as trustee, all taxes and penalties

 

 

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1collected under this Section. Those taxes and penalties shall
2be deposited into the Municipal Motor Fuel Tax Fund, a trust
3fund created in the State treasury. Moneys in the Municipal
4Motor Fuel Tax Fund shall be used to make payments to
5municipalities and for the payment of refunds under this
6Section.
7    On or before the 25th day of each calendar month, the
8Department shall prepare and certify to the State Comptroller
9the disbursement of stated sums of money to named
10municipalities for which taxpayers have paid taxes or penalties
11hereunder to the Department during the second preceding
12calendar month. The amount to be paid to each municipality
13shall be the amount (not including credit memoranda) collected
14under this Section from retailers within the municipality
15during the second preceding calendar month by the Department,
16plus an amount the Department determines is necessary to offset
17amounts that were erroneously paid to a different municipality,
18and not including an amount equal to the amount of refunds made
19during the second preceding calendar month by the Department on
20behalf of the municipality, and not including any amount that
21the Department determines is necessary to offset any amounts
22that were payable to a different municipality but were
23erroneously paid to the municipality, less 1.5% of the
24remainder, which the Department shall transfer into the Tax
25Compliance and Administration Fund. The Department, at the time
26of each monthly disbursement, shall prepare and certify to the

 

 

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1State Comptroller the amount to be transferred into the Tax
2Compliance and Administration Fund under this Section. Within
310 days after receipt by the Comptroller of the disbursement
4certification to the municipalities and the Tax Compliance and
5Administration Fund provided for in this Section to be given to
6the Comptroller by the Department, the Comptroller shall cause
7the orders to be drawn for the respective amounts in accordance
8with the directions contained in the certification.
9    Nothing in this Section shall be construed to authorize a
10municipality to impose a tax upon the privilege of engaging in
11any business which under the Constitution of the United States
12may not be made the subject of taxation by this State.
13    An ordinance or resolution imposing or discontinuing the
14tax under this Section or effecting a change in the rate
15thereof shall either: (i) be adopted and a certified copy
16thereof filed with the Department on or before the first day of
17April, whereupon the Department shall proceed to administer and
18enforce this Section as of the first day of July next following
19the adoption and filing; or (ii) be adopted and a certified
20copy thereof filed with the Department on or before the first
21day of October, whereupon the Department shall proceed to
22administer and enforce this Section as of the first day of
23January next following the adoption and filing.
24    An ordinance adopted in accordance with the provisions of
25this Section in effect before the effective date of this
26amendatory Act of the 101st General Assembly shall be deemed to

 

 

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1impose the tax in accordance with the provisions of this
2Section as amended by this amendatory Act of the 101st General
3Assembly and shall be administered by the Department of Revenue
4in accordance with the provisions of this Section as amended by
5this amendatory Act of the 101st General Assembly; provided
6that, on or before October 1, 2020, the municipality adopts and
7files a certified copy of a superseding ordinance that imposes
8the tax in accordance with the provisions of this Section as
9amended by this amendatory Act of the 101st General Assembly.
10If a superseding ordinance is not so adopted and filed, then
11the tax imposed in accordance with the provisions of this
12Section in effect before the effective date of this amendatory
13Act of the 101st General Assembly shall be discontinued on
14January 1, 2021.
15    This Section shall be known and may be cited as the
16Municipal Motor Fuel Tax Law.
17(Source: P.A. 101-32, eff. 6-28-19; 101-604, eff. 12-13-19.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.