Illinois Administrative Code › Title 86 - REVENUE › Part 695 - COUNTY MOTOR FUEL TAX › Section 695.101 - Nature of the County Motor Fuel Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) Authority to Impose Tax
Under the County Motor Fuel Tax Law ("Law") [55
				ILCS 5/5-1035.1],
the county board of the
				counties of DuPage, Kane, Lake, Will and McHenry may, by an ordinance or
				resolution adopted by the affirmative vote of a majority of the members elected
				or appointed to the county board, impose a tax upon all persons engaged in the
				business of selling motor fuel, as now or hereafter defined in the Motor Fuel
				Tax Law
[35 ILCS 505],
at retail for the operation of motor
				vehicles upon public highways or for the operation of recreational watercraft
				upon waterways. Kane County may exempt diesel fuel from the tax imposed
				pursuant to this Section. The initial tax rate may not be less than 4 cents per
				gallon of motor fuel sold at retail within the county for the purpose of use or
				consumption and not for the purpose of resale and may not exceed 8 cents per
				gallon of motor fuel sold at retail within the county for the purpose of use or
				consumption and not for the purpose of resale. The proceeds from the tax shall
				be used by the county solely for the purpose of operating, constructing and
				improving public highways and waterways, and acquiring real property and
				rights-of-way for public highways and waterways within the county imposing the
				tax
. The County Motor Fuel Tax imposed under the Law is an occupation
				tax upon retailers of motor fuel and is administered by the Illinois Department
				of Revenue ("Department") in the same manner as the Retailers' Occupation Tax.
				The tax imposed by a county board under the County Motor Fuel Tax Law and this
				Part, and all civil penalties that may be assessed as an incident thereof,
				shall be collected and enforced by the Department.
b) Annual Rate Increase
By June 1, 2020, and by June 1 of each year thereafter,
				the Department of Revenue will determine an annual rate increase to take effect
				on July 1 of that calendar year and continue through June 30 of the next
				calendar year. Not later than June 1 of each year, the Department of Revenue
				will publish on its website the rate that will take effect on July 1 of that
				calendar year. The rate shall be equal to the rate in effect increased by an
				amount equal to the percentage increase, if any, in the Consumer Price Index
				for All Urban Consumers for all items, published by the United States
				Department of Labor for the 12 months ending in March of each year. The rate
				shall be rounded to the nearest one-tenth of one cent. Each new rate may not
				exceed the rate in effect on June 30 of the previous year plus one
				cent.
(Section (a-5) of the Law)
1) With respect to rate increases, if the
			 rate in effect on June 30, 2020 is 4 cents per gallon, then the rate that takes
			 effect on July 1, 2021 as a result of the annual rate increase may not exceed 5
			 cents per gallon. If, however, the county board adopts an ordinance or
			 resolution to increase the rate on July 1, 2021 to 6 cents per gallon, then the
			 6 cents per gallon rate shall take effect on July 1, 2021, notwithstanding that
			 it exceeds the rate in effect on June 30, 2020 by more than one cent per
			 gallon.
2) While the rate set by
			 the county board by ordinance or resolution may not exceed 8 cents per gallon,
			 the rate in effect thereafter may exceed 8 cents per gallon as a result of the
			 annual rate increase provision.