Illinois Administrative Code › Title 86 - REVENUE › Part 500 - MOTOR FUEL TAX › Subpart B - MOTOR FUEL TAX › Section 500.265 - Distributors' and Suppliers' Claims for Credit or Refund

Current through Register Vol. 48, No. 28, July 12, 2024
a) Filing of Claims. Any distributor or
				supplier who shall have paid Motor Fuel Tax upon motor fuel used by the
				distributor or supplier for any purpose other than operating a motor vehicle
				upon the public highways or waters, may file a claim for credit or refund to
				recover the amount so paid. The claims shall be filed on forms prescribed by
				the Department. On and after January 1, 2016, claims are required to be filed
				electronically in accordance with 86 Ill. Adm. Code 760 only for periods for
				which an original return is required to be filed electronically. All other
				claims must be filed on paper forms. The claims shall be made to the
				Department, duly verified by the claimant (or by the claimant's legal
				representative if the claimant shall have died or become a person under legal
				disability). The claim shall state such facts relating to the purchase,
				importation, manufacture or production of the motor fuel by the claimant as the
				Department may deem necessary and shall state when the nontaxable use occurred
				and shall specify the purpose for which the motor fuel was used by the
				claimant, together with such other information as the Department may reasonably
				require. Claims for credit or refund for tax paid on motor fuel purchased on or
				after July 1, 1965, must be filed not later than one year after the date on
				which tax was paid by the claimant. In case the distributor or supplier
				requests and the Department determines that the claimant is entitled to a
				refund, the refund shall be made only from such appropriation as may be
				available for that purpose. If it appears unlikely that the amount appropriated
				would permit everyone having a claim allowed during the period covered by the
				appropriation to elect to receive a cash refund, the Department shall provide
				for the payment of refunds in hardship cases as provided in 86 Ill. Adm. Code
				130.1510.
b) The Department will approve claims for
				refund only when the claims are based upon a showing that the motor fuel was
				used for a nontaxable purpose, and that the part for which refund is claimed
				can, as a practical matter, be calculated and itemized. When the claims are
				estimated or calculated, they must be supported by verifiable documentation
				retained in the claimant's books and records. Only claims that can be supported
				by proof of the amount of motor fuel not used for a taxable purpose will be
				approved.
c)
For claims
				based upon taxes paid on or after January 1, 2001, no claim based upon the use
				of undyed diesel fuel shall be allowed except for claims for the
				following:
1)
Undyed diesel
				fuel used: in a manufacturing process, as defined in Section 2-45 of the
				Retailers' Occupation Tax Act, wherein the undyed diesel fuel becomes a
				component part of a product or byproduct, other than fuel or motor fuel, when
				the use of dyed diesel fuel in that manufacturing process results in a product
				that is unsuitable for its intended use; or for testing machinery and equipment
				in a manufacturing process, as defined in Section 2-45 of the Retailers'
				Occupation Tax Act, wherein the testing takes place on private
				property.
2)
Undyed diesel fuel used by a manufacturer on private property in the
				research and development, as defined in Section 1.29 of the Law, of machinery
				or equipment intended for manufacture.
3)
Undyed diesel fuel used by a
				single unit self-propelled agricultural fertilizer implement, designed for on
				and off road use, equipped with flotation tires and specially adapted for the
				application of plant food materials or agricultural
				chemicals.
4)
Undyed diesel fuel used by a commercial motor vehicle for any purpose
				other than operating the commercial motor vehicle upon the public highways.
				Claims shall be limited to commercial motor vehicles that are operated for both
				highway purposes and any purposes other than operating such vehicles upon the
				public highways and shall be limited to the nonhighway portion of the fuel
				used.
For instance, such claims include, but are not limited to,
				commercial motor vehicles such as 3-axle dump trucks operated both on public
				highways and on landfills in landfill operations. This subsection (c)(4) does
				not include claims filed for undyed diesel fuel used by power take-off
				equipment. This type of claim is described in subsection (c)(7).
5)
Undyed diesel fuel used by a unit
				of local government in its operation of an airport if the undyed diesel fuel is
				used directly in airport operations on airport property.
6)
Undyed diesel fuel used by
				refrigeration units that are permanently mounted to a semitrailer, as defined
				in Section 1.28 of the Law, wherein the refrigeration units have a fuel supply
				system dedicated solely for the operation of the refrigeration units.
Claims may be made for 100% of the fuel consumed by the refrigeration
				units.
7)
Undyed diesel
				fuel used by power take-off equipment as defined in Section 1.27 of the
				Law.
(Section 13 of the Law) Claims shall be based upon actual
				consumption of undyed diesel fuel. The maximum amounts of undyed diesel fuel
				that may be claimed for refund under this Section, however, is 25% of the fuel
				consumed, unless prior to submission of the claim the claimant submits a
				specific study conducted by the claimant and approved by the Department for
				claims in excess of this amount. Approved studies shall be valid for 2 years
				after the date of approval. However, upon petition of a taxpayer, the
				Department may approve an extension of a previously approved study for no more
				than 2 years. No study may be relied upon for a total of more than 4
				years.
8)
Beginning on
				August 22, 2005, undyed diesel fuel used by tugs and spotter equipment to shift
				vehicles or parcels on both private and airport property. Any claim
				under
this subsection (c)(8)
may be made only by a claimant
				that owns tugs and spotter equipment and operates that equipment on both
				private and airport property. The aggregate of all credits or refunds resulting
				from claims filed under this
subsection (c)(8)
by a claimant
				in any calendar year may not exceed $100,000. A claim may not be made under
				this
subsection (c)(8)
by the same claimant more often than
				once each quarter. For purposes of this
subsection (c)(8)
,
				"tug" means a vehicle designed for use on airport property that shifts
				custom-designed containers of parcels from loading docks to aircraft, and
				"spotter equipment" means a vehicle designed for use on both private and
				airport property that shifts trailers containing parcels between staging areas
				and loading docks.
(Section 13 of the Law)
9) Claims for taxes paid on and after January
				1, 2001 are not authorized for commercial vehicles unless the commercial
				vehicle falls within the definition of a "commercial motor vehicle" as provided
				in Section
				500.100 of this
				Part and the claim is eligible for refund under subsection (c)(4), or the claim
				is eligible for refund under any of the other provisions of this subsection
				(c).
10) Claims for taxes paid on
				and after January 1, 2001 are not authorized for undyed diesel fuel used by
				unlicensed commercial vehicles operating exclusively on private property,
				unless the vehicles are eligible for refund under any of the provisions of this
				subsection (c).