Illinois Administrative Code › Title 86 - REVENUE › Part 696 - MUNICIPAL MOTOR FUEL TAX › Section 696.101 - Nature of the Municipal Motor Fuel Tax (Cook County)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Authority to Impose Tax
Under the Municipal Motor Fuel Tax Law [65 ILCS 5/8-11 -2.3]
				(Law),
in addition to any other tax that may be imposed, a municipality
				in a county with a population of over 3,000,000 inhabitants may also impose, by
				ordinance, a tax upon all persons engaged in the municipality in the business
				of selling motor fuel, as 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. The
				tax may be imposed, in one cent increments, at a rate not to exceed $0.03 per
				gallon of motor fuel sold at retail within the municipality for the purpose of
				use or consumption and not for the purpose of resale. The tax may not be
				imposed under this Section on aviation fuel, as defined in Section 3 of the
				Retailers' Occupation Tax Act
[35 ILCS 120]. The Municipal Motor Fuel
				Tax imposed under the Municipal Motor Fuel Tax 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 municipality under the Municipal Motor Fuel Tax Law and this
				Part, and all civil penalties that may be assessed as an incident of the Law
				and this Part, shall be collected and enforced by the Department. A
				municipality, only part of which is located in a county with a population of
				over 3,000,000 inhabitants, qualifies as a municipality in a county with a
				population of over 3,000,000 inhabitants and is therefore authorized to impose
				the tax under the Law and this Part. If, however, such a municipality imposes a
				tax under the Law and this Part, the tax must be imposed upon all persons
				engaged in the municipality in the business of selling motor fuel, in
				accordance with the Law, and not only those persons engaged in the business of
				selling motor fuel in the portion of the municipality located in a county with
				a population of over 3,000,000 inhabitants.
b) Passing on the Tax
The legal incidence of the Municipal Motor Fuel Tax Law is on
				the seller. The General Assembly has authorized persons subject to any tax
				imposed pursuant to the authority granted in the Law to
reimburse
				themselves for their Municipal Motor Fuel Tax liability by separately stating
				that tax as an additional charge. The charge may be stated in combination, in a
				single amount, with State tax that sellers are required to collect under the
				Use Tax Act
[35 ILCS 105]
, pursuant to such bracket schedules
				as the Department has prescribed
(see 86 Ill. Adm. Code 150.Table A).
				[65 ILCS 5/8-11 -2.3]
c)
			 Exclusion from "Gross Receipts"
Any amount added to the selling price of motor fuel by the
				seller because of a Municipal Motor Fuel Tax shall not be regarded as a part of
				the seller's gross receipts that are subject to Illinois Retailers' Occupation
				Tax or any local occupation tax administered by the
				Department.