State of Illinois
91st General Assembly
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SB1082 Engrossed                               LRB9105921PTdv

 1        AN ACT concerning motor fuel.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Motor Fuel Tax Law is amended by changing
 5    Sections 1.2, 1.5, 1.13A, 1.14, 2, 2b, 3, 3a, 3c, 4c, 5,  5a,
 6    6,  6a,  8,  11.5,  12,  12a, 13, 13a.6, 13a.7, 15 and 16 and
 7    adding Sections 1.13B, 1.23, 1.24, 1.25, 1.26, 4d, 4e, and 4f
 8    as follows:

 9        (35 ILCS 505/1.2) (from Ch. 120, par. 417.2)
10        Sec. 1.2. Distributor. "Distributor" means  a person  who
11    either   (i)   produces,   refines,   blends,   compounds  or
12    manufactures motor fuel in this  State,  or  (ii)  transports
13    motor  fuel  into  this  State,  or  (iii)    engages  in the
14    distribution of motor fuel primarily  by  tank  car  or  tank
15    truck, or both, and who operates an Illinois bulk plant where
16    he  or  she has active bulk storage capacity of not less than
17    30,000 gallons for gasoline as defined in item (A) of Section
18    5 of this Law receives motor fuel  transported  to  him  from
19    without the State.
20        "Distributor"  does  not,  however,  include a person who
21    receives or transports into this  State  and  sells  or  uses
22    motor   fuel   under   such  circumstances  as  preclude  the
23    collection of the  tax  herein  imposed,  by  reason  of  the
24    provisions  of  the  constitution  and statutes of the United
25    States. However, a person operating a motor vehicle into  the
26    State,  may  transport  motor  fuel in the ordinary fuel tank
27    attached to the motor vehicle, not more than  twenty  gallons
28    of  motor  fuel,  for  the  operation  of  the motor vehicle,
29    without being considered a distributor.
30    (Source: P.A. 89-399, eff. 8-20-95.)
 
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 1        (35 ILCS 505/1.5) (from Ch. 120, par. 417.5)
 2        Sec. 1.5. "Blending" means the  mixing  together  by  any
 3    process  whatsoever,  of  any one or more products with other
 4    products, and regardless of the  original  character  of  the
 5    products  so  blended,  provided  the  resultant  product  so
 6    obtained  is suitable or practicable for use as a motor fuel,
 7    except such blending as may occur in  the  process  known  as
 8    refining  by  the  original  refiner  of crude petroleum, and
 9    except, also, the blending of products known  as  lubricating
10    oil  in  the  production  of lubricating oils and greases and
11    except, also, the dyeing  of  special  fuel  as  required  by
12    Section 4d of this Law.
13    (Source: Laws 1961, p. 3653.)

14        (35 ILCS 505/1.13A) (from Ch. 120, par. 417.13A)
15        Sec.  1.13A.   "1-K  Kerosene" means a special low-sulfur
16    grade  kerosene  suitable  for  use  in  non-flue   connected
17    kerosene  burner appliances, and in wick-fed illuminate lamps
18    which has a maximum limit of .04% sulfur mass, and a freezing
19    point of -22 Fahrenheit, and has a minimum saybolt  color  of
20    +16.  For  purposes  of  this  Law, 1-K Kerosene includes 1-K
21    Kerosene that has been dyed in accordance with Section 4d  of
22    this Law.
23    (Source: P.A. 87-149.)

24        (35 ILCS 505/1.13B new)
25        Sec.  1.13B.   "Dyed  diesel fuel" means special fuel, as
26    defined in Section 1.13 of this Law, dyed in accordance  with
27    Section 4d of this Law.

28        (35 ILCS 505/1.14) (from Ch. 120, par. 417.14)
29        Sec.  1.14.   Supplier. "Supplier" means any person other
30    than a licensed distributor who (i) transports  special  fuel
31    into  this  State  or  (ii)  engages  in  the distribution of
 
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 1    special fuel primarily by tank car or tank  truck,  or  both,
 2    and  who  operates an Illinois bulk plant where he has active
 3    bulk storage capacity of not less  than  30,000  gallons  for
 4    special  fuel as defined in Section 1.13 of this Law receives
 5    special fuel transported to him from outside the State.
 6        "Supplier"  does  not,  however,  include  a  person  who
 7    receives or transports into this  State  and  sells  or  uses
 8    special   fuel  under  such  circumstances  as  preclude  the
 9    collection of the  tax  herein  imposed,  by  reason  of  the
10    provisions of the Constitution and laws of the United States.
11    However,  a  person operating a motor vehicle into the State,
12    may transport special fuel in the ordinary fuel tank attached
13    to the motor vehicle for the operation of the  motor  vehicle
14    without being considered a supplier.
15    (Source: P.A. 89-399, eff. 8-20-95.)

16        (35 ILCS 505/1.23 new)
17        Sec.   1.23.   "Terminal  rack"  means  a  mechanism  for
18    dispensing motor fuel or fuel from a refinery,  terminal,  or
19    bulk  plant  into  a  transport  truck, railroad tank car, or
20    other means of transportation.

21        (35 ILCS 505/1.24 new)
22        Sec. 1.24. "Premises" means any location  where  original
23    records  are  kept;  where  tank  cars,  ships,  barges, tank
24    trucks,  tank  wagons,  or  other  types  of   transportation
25    equipment are used to distribute fuel or motor fuel; or where
26    containers,  storage  tanks,  or other facilities are used to
27    store or distribute fuel or motor fuel.

28        (35 ILCS 505/1.25 new)
29        Sec. 1.25. "Kerosene-type jet fuel" means any jet fuel as
30    described  in  ASTM  specification  D   1655   and   military
31    specifications  MIL-T-5624R and MIL-T-83133D (Grades JP-5 and
 
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 1    JP-8).

 2        (35 ILCS 505/1.26 new)
 3        Sec. 1.26. "Designated inspection site" means  any  State
 4    highway   inspection  station,  weigh  station,  agricultural
 5    inspection  station,  mobile  station,  or   other   location
 6    designated  by the Department to be used as a fuel inspection
 7    site.  A designated inspection site will be identified  as  a
 8    fuel inspection site.

 9        (35 ILCS 505/2) (from Ch. 120, par. 418)
10        Sec.  2.  A  tax is imposed on the privilege of operating
11    motor vehicles upon the public highways and recreational-type
12    watercraft upon the waters of this State.
13        (a)  Prior to August 1, 1989, the tax is imposed  at  the
14    rate  of  13 cents per gallon on all motor fuel used in motor
15    vehicles operating on the public  highways  and  recreational
16    type  watercraft  operating  upon  the  waters of this State.
17    Beginning on August 1, 1989 and until January  1,  1990,  the
18    rate  of  the tax imposed in this paragraph shall be 16 cents
19    per gallon.  Beginning January  1,  1990,  the  rate  of  tax
20    imposed in this paragraph shall be 19 cents per gallon.
21        (b)  The tax on the privilege of operating motor vehicles
22    which  use  diesel  fuel  shall  be  the  rate  according  to
23    paragraph  (a)  plus  an  additional  2 1/2 cents per gallon.
24    "Diesel fuel" is defined as any  petroleum  product  intended
25    for  use  or  offered for sale as a fuel for engines in which
26    the fuel is injected into the combustion chamber and  ignited
27    by pressure without electric spark.
28        (c)  A  tax  is imposed upon the privilege of engaging in
29    the business of selling motor fuel as a retailer or  reseller
30    on  all  motor  fuel  used in motor vehicles operating on the
31    public highways and recreational  type  watercraft  operating
32    upon the waters of this State: (1) at the rate of 3 cents per
 
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 1    gallon  on  motor fuel owned or possessed by such retailer or
 2    reseller at 12:01 a.m. on August 1, 1989; and (2) at the rate
 3    of 3 cents per gallon on motor fuel  owned  or  possessed  by
 4    such retailer or reseller at 12:01 A.M. on January 1, 1990.
 5        Retailers   and   resellers   who  are  subject  to  this
 6    additional tax shall be required to inventory such motor fuel
 7    and pay this additional tax in a  manner  prescribed  by  the
 8    Department of Revenue.
 9        The  tax  imposed  in  this  paragraph  (c)  shall  be in
10    addition to all other taxes imposed by the State of  Illinois
11    or any unit of local government in this State.
12        (d)  Except  as provided in Section 2a, the collection of
13    a tax based on gallonage of gasoline used for the  propulsion
14    of any aircraft is prohibited on and after October 1, 1979.
15        (e)  The  collection  of a tax, based on gallonage of all
16    products commonly  or  commercially  known  or  sold  as  1-K
17    kerosene,  regardless  of  its  classification  or  uses,  is
18    prohibited  (i)  on and after July 1, 1992 until December 31,
19    1999, except when the 1-K kerosene is either:  (1)  delivered
20    into bulk storage facilities of a bulk user, or (2) delivered
21    directly  into  the  fuel  supply tanks of motor vehicles and
22    (ii) on and after January 1, 2000. Beginning  on  January  1,
23    2000,  the  collection  of  a  tax, based on gallonage of all
24    products commonly  or  commercially  known  or  sold  as  1-K
25    kerosene,  regardless  of  its  classification  or  uses,  is
26    prohibited except when the 1-K kerosene is delivered directly
27    into  a  storage  tank that is located at a facility that has
28    withdrawal facilities that are readily accessible to and  are
29    capable of dispensing 1-K kerosene into the fuel supply tanks
30    of motor vehicles.
31        Any  sales, except as provided in paragraph (e), items in
32    (1) or  (2)  of  this  Section,  of  1-K  kerosene  that  are
33    delivered  into  a storage tank that is located at a facility
34    that has withdrawal facilities which are  readily  accessible
 
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 1    to,  and are capable of dispensing 1-K kerosene into the fuel
 2    supply  tanks  of  motor  vehicles  must  be   supported   by
 3    documentation  affirming  that  the  1-K kerosene will not be
 4    sold for use in highway  vehicles.   Any  person,  who  after
 5    submitting  documentation, sells or uses 1-K kerosene for use
 6    in  motor vehicles upon which the tax imposed by this Law has
 7    not been paid shall be liable for any tax due on the sales or
 8    use of 1-K kerosene.
 9    (Source: P.A. 86-16; 86-125; 86-1028; 87-149.)

10        (35 ILCS 505/2b) (from Ch. 120, par. 418b)
11        Sec. 2b.  In addition to the tax collection and reporting
12    responsibilities imposed elsewhere in this Act, a person  who
13    is  required to pay the tax imposed by Section 2a of this Act
14    shall pay the tax to the Department  by  return  showing  all
15    fuel purchased, acquired or received and sold, distributed or
16    used  during the preceding calendar month including losses of
17    fuel as  the  result  of  evaporation  or  shrinkage  due  to
18    temperature  variations.  Losses  of  fuel  as  the result of
19    evaporation or shrinkage due to  temperature  variations  may
20    not  exceed   one  percent of the total gallons in storage at
21    the beginning of the month, plus the  receipts  of  gallonage
22    during the month, minus the gallonage remaining in storage at
23    the end of the month.  Any loss reported that is in excess of
24    this amount shall be subject to the tax imposed by Section 2a
25    of this Law.
26        The  return  shall  be  prescribed  by the Department and
27    shall be filed between the 1st and 20th days of each calendar
28    month.  The Department may, in its  discretion,  combine  the
29    returns  filed  under this Section, Section 5, and Section 5a
30    of this Act.  The return must be accompanied  by  appropriate
31    computer-generated magnetic media supporting schedule data in
32    the format required by the Department, unless, as provided by
33    rule,  the  Department grants an exception upon petition of a
 
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 1    taxpayer.  If the return is filed timely,  the  seller  shall
 2    take  a  discount  of  2%  which  is allowed to reimburse the
 3    seller  for  the  expenses  incurred  in   keeping   records,
 4    preparing  and  filing  returns, collecting and remitting the
 5    tax and supplying data to the Department on request.  The  2%
 6    discount,  however, shall be applicable only to the amount of
 7    payment which accompanies a return that is  filed  timely  in
 8    accordance with this Section.
 9    (Source: P.A. 88-194.)

10        (35 ILCS 505/3) (from Ch. 120, par. 419)
11        Sec.  3.   No  person shall act as a distributor of motor
12    fuel within this State without first securing  a  license  to
13    act  as  a  distributor  of  motor  fuel from the Department.
14    Application for such license shall be made to the  Department
15    upon  blanks furnished by it. The application shall be signed
16    and verified, and  shall  contain  such  information  as  the
17    Department  deems  necessary. A blender shall, in addition to
18    securing a distributor's license,  make  application  to  the
19    Department  for  a  blender's  permit,  setting  forth in the
20    application  such  information  as   the   Department   deems
21    necessary.  The  applicant  for a distributor's license shall
22    also file with the Department a bond on a form to be approved
23    by  and  with  a  surety  or  sureties  satisfactory  to  the
24    Department conditioned upon  such  applicant  paying  to  the
25    State  of  Illinois  all monies becoming due by reason of the
26    sale or use of motor fuel by the applicant, together with all
27    penalties and interest thereon. The Department shall fix  the
28    penalty  of  such bond in each case taking into consideration
29    the amount of motor fuel expected to be sold, distributed and
30    used  by  such  applicant  and  the  penalty  fixed  by   the
31    Department shall be such, as in its opinion, will protect the
32    State   of   Illinois  against  failure  to  pay  the  amount
33    hereinafter provided on  motor  fuel  sold,  distributed  and
 
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 1    used,  but  the amount of the penalty fixed by the Department
 2    shall not exceed twice 2.1  times  the  monthly  amount  that
 3    would  be  collectable as a tax in the event of a sale on all
 4    the motor fuel sold, distributed, and used by the distributor
 5    inclusive of tax-free sales,  use,  or  distribution  of  tax
 6    liability of a monthly return; however, in no event shall the
 7    amount  of  such penalty exceed $100,000. Upon receipt of the
 8    application and bond in proper  form,  the  Department  shall
 9    issue  to the applicant a license to act as a distributor. No
10    person who is in default to the State for  monies  due  under
11    this  Act  for  the  sale,  distribution or use of motor fuel
12    shall receive a license either directly or indirectly to  act
13    as a distributor.
14        A  license  shall  not  be  granted  to  any person whose
15    principal  place  of  business  is  in  a  state  other  than
16    Illinois, unless such  person  is  licensed  for  motor  fuel
17    distribution  in  the  state  in which the principal place of
18    business is located and that such person is not in default to
19    that State for any monies due for the sale, distribution,  or
20    use of motor fuel.
21        Notwithstanding   his  activities  are  not  those  of  a
22    distributor as defined in Section 1.2 of this Act:
23             A.  A  person  who  as  of  July  1,  1957  holds  a
24        distributor's license may continue in  that  capacity  so
25        long  as  he  continues  to  comply with obligations of a
26        distributor.
27             B.  A person who in this State  is  engaged  in  the
28        distribution  of motor fuel primarily by tank car or tank
29        truck, or both, and who operates an Illinois  bulk  plant
30        where  he  has  active  bulk storage capacity of not less
31        than 30,000 gallons for gasoline as  defined  in  example
32        (A)  in  the  second  paragraph of Section 5 of this Act,
33        may, by application to the Department and compliance with
34        the requirements of this Section, obtain a  distributor's
 
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 1        license, and when so licensed shall be subject to all the
 2        obligations  and  have all the rights and privileges of a
 3        distributor under this Act.
 4    (Source: P.A. 90-491, eff. 1-1-98.)

 5        (35 ILCS 505/3a) (from Ch. 120, par. 419a)
 6        Sec. 3a.  No person, other than a  licensed  distributor,
 7    shall  act  as  a  supplier of special fuel within this State
 8    without first securing a license to  act  as  a  supplier  of
 9    special fuel from the Department.
10        Application  for  such  license  shall  be  made  to  the
11    Department upon blanks furnished by it. The application shall
12    be  signed and verified and shall contain such information as
13    the Department deems necessary.
14        The applicant for a supplier's license shall  also  file,
15    with  the  Department, a bond on a form to be approved by and
16    with a surety or sureties  satisfactory  to  the  Department,
17    conditioned  upon  such  applicant  paying  to  the  State of
18    Illinois all moneys becoming due by reason of the sale or use
19    of special fuel by the applicant, together with all penalties
20    and interest thereon. The Department shall fix the penalty of
21    such bond in each case, taking into consideration the  amount
22    of  special fuel expected to be sold, distributed and used by
23    such applicant, and the penalty fixed by the Department shall
24    be such, as  in  its  opinion,  will  protect  the  State  of
25    Illinois  against  failure  to  pay  the  amount  hereinafter
26    provided  on special fuel sold, distributed and used, but the
27    amount of the penalty  fixed  by  the  Department  shall  not
28    exceed  twice  the monthly amount of tax liability that would
29    be collectable as a tax in the event of a taxable sale on all
30    the special fuel sold, distributed, and used by the  supplier
31    inclusive  of  tax-free  sales,  use,  or  distribution  of a
32    monthly return; however, in no event shall the amount  exceed
33    $100,000.
 
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 1        Upon  receipt of the application and bond in proper form,
 2    the Department shall issue to the applicant a license to  act
 3    as  a  supplier. No person who is in default to the State for
 4    moneys due under this Act for the sale, distribution  or  use
 5    of  motor  fuel  shall  receive  a license either directly or
 6    indirectly to act as a supplier.
 7        A license shall  not  be  granted  to  any  person  whose
 8    principal  place  of  business  is  in  a  state  other  than
 9    Illinois,  unless  such  person  is  licensed  for motor fuel
10    distribution in the State in which  the  principal  place  of
11    business  is  located  and  that  other  State  requires such
12    license and that such person is not in default to that  State
13    for  any  monies  due  for  the sale, distribution, or use of
14    motor fuel.
15    (Source: P.A. 90-491, eff. 1-1-98.)

16        (35 ILCS 505/3c) (from Ch. 120, par. 419b.1)
17        Sec. 3c.  No person shall  act  as  a  receiver  of  fuel
18    within  this  State without first securing a license from the
19    Department to act as a receiver of fuel.
20        Application  for  such  license  shall  be  made  to  the
21    Department upon blanks  furnished  by  it.   The  application
22    shall   be  signed  and  verified,  and  shall  contain  such
23    information as the Department deems necessary.  The applicant
24    for a receiver's license shall also file with the  Department
25    a  bond  on  a  form  to  be approved by and with a surety or
26    sureties satisfactory to the Department conditioned upon such
27    applicant paying to the State of Illinois all monies becoming
28    due by reason of  the  receipt  of  fuel  by  the  applicant,
29    together  with  all  penalties  and  interest  thereon.   The
30    Department  shall  fix  the penalty of such bond in each case
31    taking into consideration the amount of fuel expected  to  be
32    sold,  distributed and used by such applicant and the penalty
33    fixed by the Department shall be such,  as  in  its  opinion,
 
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 1    will protect the State of Illinois against failure to pay the
 2    tax imposed by Section 2a on fuel received in this State, but
 3    the  amount  of the penalty fixed by the Department shall not
 4    exceed twice the monthly amount that  would  be  due  in  the
 5    event  of  a  sale or use on all the fuel sold or used by the
 6    receiver inclusive of tax-free sales or use of tax  liability
 7    of  a  monthly  return; however, in no event shall the amount
 8    exceed $100,000.
 9        Upon receipt of the application and bond in proper  form,
10    the  Department shall issue to the applicant a license to act
11    as a receiver.  No person who is in default to the State  for
12    monies due under this Act for the receipt, sale, distribution
13    or  use  of fuel or motor fuel shall receive a license either
14    directly or indirectly to act as a receiver.
15    (Source: P.A. 90-491, eff. 1-1-98.)

16        (35 ILCS 505/4c) (from Ch. 120, par. 419c)
17        Sec. 4c.  Notwithstanding  any  other  provision  to  the
18    contrary,  any person who is required to file a bond pursuant
19    to any  provision  of  this  Act  and  who  has  continuously
20    complied  with  all  provisions of this Act for 48 24 or more
21    consecutive months, shall no longer  be  required  to  comply
22    with  the  bonding  provisions  of  this  Act so long as such
23    person continues his compliance with the provisions  of  this
24    Act.  This provision does not apply to motor carriers subject
25    to the provisions of Sections 13a through 13a.5 of this Act.
26    (Source: P.A. 88-480.)

27        (35 ILCS 505/4d new)
28        Sec. 4d. All special fuel sold or  used  for  non-highway
29    purposes  must  contain  only  the  dye  Solvent Red 164 at a
30    concentration spectrally equivalent to at least 3.9 pounds of
31    the solid dye standard Solvent Red 26 per thousand barrels of
32    special fuel except  kerosene-type  jet  fuel  sold  for  the
 
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 1    propulsion  of  any aircraft.  The dye must be added prior to
 2    removal from a terminal rack. The Department may also require
 3    all special fuel sold for non-highway use to  have  a  marker
 4    added.

 5        (35 ILCS 505/4e new)
 6        Sec.  4e.  A legible and conspicuous notice stating "Dyed
 7    Diesel Fuel, Non-taxable Use Only, Penalty For  Taxable  Use"
 8    must  appear  on  all  shipping  papers, bills of lading, and
 9    invoices accompanying any sale of dyed diesel fuel.

10        (35 ILCS 505/4f new)
11        Sec. 4f. A legible and conspicuous notice stating   "Dyed
12    Diesel  Fuel,  Non-taxable  Use  Only"  must  appear  on  all
13    containers,  storage  tanks,  or  facilities used to store or
14    distribute dyed diesel fuel.

15        (35 ILCS 505/5) (from Ch. 120, par. 421)
16        Sec. 5.  Except as hereinafter provided, a person holding
17    a valid unrevoked license to act as a  distributor  of  motor
18    fuel  shall,  between  the 1st and 20th days of each calendar
19    month, make return to the  Department,  showing  an  itemized
20    statement  of the number of invoiced gallons of motor fuel of
21    the types specified in this  Section  which  were  purchased,
22    acquired or received during the preceding calendar month; the
23    amount  of  such  motor  fuel  produced, refined, compounded,
24    manufactured, blended, sold, distributed,  and  used  by  the
25    licensed distributor during the preceding calendar month; the
26    amount  of  such  motor  fuel  lost  or  destroyed during the
27    preceding calendar month; and the amount of such  motor  fuel
28    on  hand  at  the  close  of  business  for such month.  If a
29    distributor's only activities with respect to motor fuel  are
30    either:  (1) production of alcohol in quantities of less than
31    10,000 proof gallons per year  or  (2)  blending  alcohol  in
 
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 1    quantities  of  less than 10,000 proof gallons per year which
 2    such distributor has produced, he shall file  returns  on  an
 3    annual  basis  with  the return for a given year being due by
 4    January 20 of the following year.  Distributors  whose  total
 5    production of alcohol (whether blended or not) exceeds 10,000
 6    proof  gallons  per  year,  based  on  production  during the
 7    preceding (calendar) year or as reasonably projected  by  the
 8    Department if one calendar year's record of production cannot
 9    be  established,  shall file returns between the 1st and 20th
10    days of each calendar month as hereinabove provided.
11        The types of motor fuel  referred  to  in  the  preceding
12    paragraph  are:  (A)  All  products  commonly or commercially
13    known  or  sold  as  gasoline  (including   casing-head   and
14    absorption  or  natural  gasoline),  gasohol, motor benzol or
15    motor benzene regardless of their classification or uses; and
16    (B) all combustible gases which exist in a gaseous  state  at
17    60  degrees  Fahrenheit  and  at  14.7 pounds per square inch
18    absolute including, but not limited to,  liquefied  petroleum
19    gases  used  for highway purposes; and (C) special fuel. Only
20    those quantities of combustible  gases  (example  (B)  above)
21    which  are  used  or  sold  by  the distributor to be used to
22    propel motor vehicles on the public highways,  or  which  are
23    delivered into the bulk storage facilities of a bulk user, or
24    which  are delivered into a storage tank that is located at a
25    facility that has withdrawal  facilities  which  are  readily
26    accessible to and are capable of dispensing combustible gases
27    into  the  fuel  supply  tanks  of  motor  vehicles, shall be
28    subject to return.  For the purposes of this  Act,  liquefied
29    petroleum  gases shall mean and include any material having a
30    vapor pressure not  exceeding  that  allowed  for  commercial
31    propane composed predominantly of the following hydrocarbons,
32    either  by  themselves  or  as mixtures:  Propane, Propylene,
33    Butane (normal butane or iso-butane) and Butylene  (including
34    isomers).
 
SB1082 Engrossed            -14-               LRB9105921PTdv
 1        In case of a sale of special fuel to someone other than a
 2    licensed  distributor,  or  a licensed supplier or a licensed
 3    bulk user with a valid permit, for a use other than in  motor
 4    vehicles, the distributor shall show in his return the amount
 5    of  invoiced  gallons  sold  and  the name and address of the
 6    purchaser in addition to any other information the Department
 7    may require.
 8        All special fuel sold or used  for  non-highway  purposes
 9    must  have  a dye added in accordance with Section 4d of this
10    Law.
11        In case of a tax-free sale, as provided in Section 6,  of
12    motor  fuel which the distributor is required by this Section
13    to include in his return to the Department,  the  distributor
14    in  his return shall show: (1) If the sale is made to another
15    licensed distributor the amount sold and  the  name,  address
16    and  license number of the purchasing distributor; (2) if the
17    sale is made to a person where delivery is  made  outside  of
18    this  State  the  name  and address of such purchaser and the
19    point  of  delivery  together  with  the  date   and   amount
20    delivered;  (3) if the sale is made to the Federal Government
21    or its instrumentalities the amount  sold,  as  evidenced  by
22    official  forms  of  exemption certificates properly executed
23    and   furnished   by   the   Federal   Government   or    its
24    instrumentalities;  (4)  if  the  sale is made to a municipal
25    corporation  owning  and  operating  a  local  transportation
26    system for public service in this State the name and  address
27    of  such  purchaser,  and  the  amount  sold, as evidenced by
28    official forms of exemption  certificates  properly  executed
29    and furnished by such purchaser; (5) if the sale is made to a
30    privately  owned  public  utility owning and operating 2-axle
31    vehicles designed and  used  for  transporting  more  than  7
32    passengers,  which  vehicles  are  used as common carriers in
33    general transportation of passengers, are not devoted to  any
34    specialized  purpose  and  are  operated  entirely within the
 
SB1082 Engrossed            -15-               LRB9105921PTdv
 1    territorial limits of a single municipality or of  any  group
 2    of  contiguous  municipalities  or in a close radius thereof,
 3    and the operations of which are subject to the regulations of
 4    the Illinois Commerce Commission, then the name  and  address
 5    of  such  purchaser  and  the  amount  sold  as  evidenced by
 6    official forms of exemption  certificates  properly  executed
 7    and  furnished  by  the purchaser; (6) if the product sold is
 8    special fuel and if the sale is made to a  licensed  supplier
 9    under  conditions  which  qualify  the sale for tax exemption
10    under Section 6 of this Act, the amount sold  and  the  name,
11    address  and  license  number  of the purchaser; and (7) if a
12    sale of special fuel is made to someone other than a licensed
13    distributor, or a licensed supplier, or a licensed bulk  user
14    with  a  permit,  for  a use other than in motor vehicles, by
15    making a specific notation thereof on the  invoice  or  sales
16    slip  covering  such  sales  and  obtaining  such  supporting
17    documentation  as  may be required by the Department; and (8)
18    if a sale of special fuel is made to  a  licensed  bulk  user
19    with  a  valid  unrevoked permit to purchase special fuel tax
20    exempt.
21        All special fuel sold or used  for  non-highway  purposes
22    must  have  a dye added in accordance with Section 4d of this
23    Law.
24        A person whose license to act as a distributor  of  motor
25    fuel  has  been revoked shall make a return to the Department
26    covering the period from the date of the last return  to  the
27    date  of the revocation of the license, which return shall be
28    delivered to the Department not later than 10 days  from  the
29    date  of the revocation or termination of the license of such
30    distributor; the  return  shall  in  all  other  respects  be
31    subject  to  the same provisions and conditions as returns by
32    distributors licensed under the provisions of this Act.
33        The records, waybills and supporting  documents  kept  by
34    railroads  and other common carriers in the regular course of
 
SB1082 Engrossed            -16-               LRB9105921PTdv
 1    business shall be prima facie evidence of  the  contents  and
 2    receipt  of  cars or tanks covered by those records, waybills
 3    or supporting documents.
 4        If the Department has reason to believe and does  believe
 5    that  the  amount shown on the return as purchased, acquired,
 6    received, sold, used, lost or destroyed is incorrect, or that
 7    an amount of motor fuel of the types required by  the  second
 8    paragraph of this Section to be reported to the Department by
 9    distributors  as a receipt has not been correctly reported as
10    a receipt, the  Department  shall  fix  an  amount  for  such
11    receipt,  sales,  use,  loss  or destruction according to its
12    best judgment and information, which amount so fixed  by  the
13    Department  shall  be prima facie correct.  All returns shall
14    be made on forms prepared and furnished  by  the  Department,
15    and  shall  contain  such other information as the Department
16    may reasonably require. The return  must  be  accompanied  by
17    appropriate   computer-generated  magnetic  media  supporting
18    schedule data in  the  format  required  by  the  Department,
19    unless,  as  provided   by  rule,  the  Department  grants an
20    exception  upon  petition  of  a   taxpayer.   All   licensed
21    distributors  shall report all losses of motor fuel sustained
22    on account of fire, theft, spillage,  spoilage,  leakage,  or
23    any  other  provable  cause  when  filing  the return for the
24    period during which the loss occurred. The mere making of the
25    report does not  assure  the  allowance  of  the  loss  as  a
26    reduction  in  tax  liability.    Losses of motor fuel as the
27    result  of  evaporation  or  shrinkage  due  to   temperature
28    variations  may  not exceed  one percent of the total gallons
29    in storage at the beginning of the month, plus  the  receipts
30    of  gallonage during the month, minus the gallonage remaining
31    in storage at the end of the month.  Any loss  reported  that
32    is  in  excess  of   one  percent shall be subject to the tax
33    imposed by Section 2  of this Law.
34    (Source: P.A. 87-149; 88-194.)
 
SB1082 Engrossed            -17-               LRB9105921PTdv
 1        (35 ILCS 505/5a) (from Ch. 120, par. 421a)
 2        Sec. 5a.  A person holding a valid unrevoked  license  to
 3    act  as a supplier of special fuel shall, between the 1st and
 4    20th  days  of  each  calendar  month,  make  return  to  the
 5    Department showing an itemized statement  of  the  number  of
 6    invoiced   gallons   of   special  fuel  acquired,  received,
 7    purchased, or sold, or used  during  the  preceding  calendar
 8    month; the amount of special fuel sold, distributed, and used
 9    by the licensed supplier during the preceding calendar month;
10    the  amount  of  special  fuel  lost  or destroyed during the
11    preceding calendar month; and the amount of special  fuel  on
12    hand  at  the  close  of  business for the preceding calendar
13    month.
14        A person whose license to act as a  supplier  of  special
15    fuel  has  been revoked shall make a return to the Department
16    covering the period from the date of the last return  to  the
17    date  of the revocation of the license, which return shall be
18    delivered to the Department not later than 10 days  from  the
19    date  of the revocation or termination of the license of such
20    supplier.  The return shall in all other respects be  subject
21    to the same provisions and conditions as returns by suppliers
22    licensed under this Act.
23        The  records,  waybills  and supporting documents kept by
24    railroads and other common carriers in the regular course  of
25    business  shall  be  prima facie evidence of the contents and
26    receipt of cars or tanks covered by those  records,  waybills
27    or supporting documents.
28        If  the Department has reason to believe and does believe
29    that the amount shown on the return as  purchased,  acquired,
30    received,  or sold, or used, or lost is incorrect, or that an
31    amount of special fuel  of  the  type  required  by  the  1st
32    paragraph of this Section to be reported to the Department by
33    suppliers  as  a purchase, sale or use has not been correctly
34    reported as a purchase, receipt, sale, or use,  or  loss  the
 
SB1082 Engrossed            -18-               LRB9105921PTdv
 1    Department  shall  fix  an amount for such purchase, receipt,
 2    sale, or use, or loss according  to  its  best  judgment  and
 3    information, which amount so fixed by the Department shall be
 4    prima  facie correct. All licensed suppliers shall report all
 5    losses of special fuel sustained on account of  fire,  theft,
 6    spillage, spoilage, leakage, or any other provable cause when
 7    filing  the  return  for  the  period  during  which the loss
 8    occurred.  The mere making of the report does not assure  the
 9    allowance of the loss as a reduction in tax liability. Losses
10    of special fuel as the result of evaporation or shrinkage due
11    to  temperature variations may not exceed  one percent of the
12    total gallons in storage at the beginning of the month,  plus
13    the  receipts  of  gallonage  during  the  month,  minus  the
14    gallonage remaining in storage at the end of the month.
15        Any loss reported that is in excess of  one percent shall
16    be subject to the tax imposed by Section 2 of this Law.
17        In case of a sale of special fuel to someone other than a
18    licensed  distributor or, licensed supplier, or licensed bulk
19    user with a valid permit, for  a  use  other  than  in  motor
20    vehicles, the supplier shall show in his return the amount of
21    invoiced  gallons  sold  and  the  name  and  address  of the
22    purchaser in addition to any other information the Department
23    may require.
24        All special fuel sold or used  for  non-highway  purposes
25    must  have  a dye added in accordance with Section 4d of this
26    Law.
27        All returns shall be made on forms prepared and furnished
28    by the Department and shall contain such other information as
29    the Department may reasonably require.  The  return  must  be
30    accompanied  by appropriate computer-generated magnetic media
31    supporting schedule  data  in  the  format  required  by  the
32    Department,  unless,  as  provided  by  rule,  the Department
33    grants an exception upon petition of a taxpayer.
34        In case of a tax-free sale, as provided in Section 6a, of
 
SB1082 Engrossed            -19-               LRB9105921PTdv
 1    special fuel which the supplier is required by  this  Section
 2    to  include  in his return to the Department, the supplier in
 3    his return shall show: (1) If the sale  of  special  fuel  is
 4    made  to the Federal Government or its instrumentalities, the
 5    amount sold as  evidenced  by  official  forms  of  exemption
 6    certificates   properly   executed   and   furnished  by  the
 7    Government or its  instrumentalities;  (2)  if  the  sale  of
 8    special  fuel  is  made to a municipal corporation owning and
 9    operating a local transportation system for public service in
10    this State, the name and address of such  purchaser  and  the
11    amount  sold,  as  evidenced  by  official forms of exemption
12    certificates  properly  executed  and   furnished   by   such
13    purchaser;  (3)  if  the  sale  of  special fuel is made to a
14    privately owned public utility owning  and  operating  2-axle
15    vehicles  designed  and  used  for  transporting  more than 7
16    passengers, which vehicles are used  as  common  carriers  in
17    general  transportation of passengers, are not devoted to any
18    specialized purpose and  are  operated  entirely  within  the
19    territorial  limits  of a single municipality or of any group
20    of contiguous municipalities or in a  close  radius  thereof,
21    and the operations of which are subject to the regulations of
22    the  Illinois  Commerce Commission, then the name and address
23    of such purchaser  and  the  amount  sold,  as  evidenced  by
24    official  forms  of  exemption certificates properly executed
25    and furnished by such purchaser; (4) if the product  sold  is
26    special  fuel  and if the sale is made to a licensed supplier
27    or to a licensed distributor under conditions  which  qualify
28    the  sale for tax exemption under Section 6a of this Act, the
29    amount sold and the name, address and license number of  such
30    purchaser;  (5) if a sale of special fuel is made to a person
31    where delivery is made outside of this State,  the  name  and
32    address  of such purchaser and the point of delivery together
33    with the date and amount of invoiced gallons  delivered;  and
34    (6) if a sale of special fuel is made to someone other than a
 
SB1082 Engrossed            -20-               LRB9105921PTdv
 1    licensed  distributor  or a, licensed supplier, or a licensed
 2    bulk user with a permit,  for  a  use  other  than  in  motor
 3    vehicles,  by  making  a  specific  notation  thereof  on the
 4    invoice or sales slip covering that sale and  obtaining  such
 5    supporting documentation as may be required by the Department
 6    ;  and  (7)  if  a sale of special fuel is made to a licensed
 7    bulk user with a valid unrevoked permit to  purchase  special
 8    fuel tax exempt.
 9        All  special  fuel  sold or used for non-highway purposes
10    must have a dye added in accordance with Section 4d  of  this
11    Law.
12    (Source: P.A. 87-149; 88-194.)

13        (35 ILCS 505/6) (from Ch. 120, par. 422)
14        Sec.  6.  Collection  of tax; distributors. A distributor
15    who sells or distributes any motor fuel, which he is required
16    by Section 5 to  report  to  the  Department  when  filing  a
17    return, shall (except as hereinafter provided) collect at the
18    time of such sale and distribution, the amount of tax imposed
19    under  this  Act on all such motor fuel sold and distributed,
20    and at the time of making a return, the distributor shall pay
21    to the Department the amount so collected less a discount  of
22    2%  which  is  allowed  to  reimburse the distributor for the
23    expenses incurred in keeping records,  preparing  and  filing
24    returns,  collecting and remitting the tax and supplying data
25    to the Department on request,  and  shall  also  pay  to  the
26    Department  an  amount  equal  to  the  amount  that would be
27    collectible as a tax in the event of a sale  thereof  on  all
28    such  motor  fuel  used by said distributor during the period
29    covered by the return. However, no  payment   shall  be  made
30    based  upon  dyed  diesel  fuel  used  by the distributor for
31    non-highway  purposes.  The  2%  discount   shall   only   be
32    applicable  to  the amount of tax payment which accompanies a
33    return which is filed timely in accordance with Section 5  of
 
SB1082 Engrossed            -21-               LRB9105921PTdv
 1    this  Act. In each subsequent sale of motor fuel on which the
 2    amount of tax imposed under this Act has  been  collected  as
 3    provided  in  this  Section, the amount so collected shall be
 4    added to the selling price, so that the amount of tax is paid
 5    ultimately by the  user  of  the  motor  fuel.   However,  no
 6    collection  or  payment shall be made in the case of the sale
 7    or use of any motor fuel to the extent to  which such sale or
 8    use of  motor  fuel  may  not,  under  the  constitution  and
 9    statutes  of  the  United  States,  be  made  the  subject of
10    taxation by this State.  A person whose license to act  as  a
11    distributor  of  fuel  has been revoked shall, at the time of
12    making a return, also pay to the Department an  amount  equal
13    to the amount that would be collectible as a tax in the event
14    of  a sale thereof on all motor fuel, which he is required by
15    the second paragraph of Section 5 to report to the Department
16    in making a return, and which he had on hand on the  date  on
17    which  the  license was revoked, and with respect to which no
18    tax had been previously paid under this Act.
19        A distributor may make tax free sales of motor fuel, with
20    respect to which he is otherwise required to collect the tax,
21    when the motor fuel is delivered from a  dispensing  facility
22    that  has  withdrawal  facilities capable of dispensing motor
23    fuel into the fuel supply tanks of  motor  vehicles  only  as
24    specified  in the following items 3, 4, and 5.  A distributor
25    may make tax-free sales of motor fuel, with respect to  which
26    he  is  otherwise required to collect the tax, when the motor
27    fuel is delivered from other facilities only as specified  in
28    the following items 1 through 7 8.
29             1.  When  the  sale  is  made  to a person holding a
30        valid unrevoked license as a  distributor,  by  making  a
31        specific  notation  thereof  on  invoices  or  sales slip
32        covering each sale.
33             2.  When  the  sale  is  made  with  delivery  to  a
34        purchaser outside of this State.
 
SB1082 Engrossed            -22-               LRB9105921PTdv
 1             3.  When the sale is made to the Federal  Government
 2        or its instrumentalities.
 3             4.  When the sale is made to a municipal corporation
 4        owning  and  operating  a local transportation system for
 5        public service in this State when an official certificate
 6        of exemption is obtained in lieu of the tax.
 7             5.  When the sale  is  made  to  a  privately  owned
 8        public  utility  owning  and  operating  2  axle vehicles
 9        designed  and  used  for   transporting   more   than   7
10        passengers, which vehicles are used as common carriers in
11        general  transportation of passengers, are not devoted to
12        any specialized purpose and are operated entirely  within
13        the territorial limits of a single municipality or of any
14        group  of contiguous municipalities, or in a close radius
15        thereof, and the operations of which are subject  to  the
16        regulations  of the Illinois Commerce Commission, when an
17        official certificate of exemption is obtained in lieu  of
18        the tax.
19             6.  When  a sale of special fuel is made to a person
20        holding a valid, unrevoked  license  as  a  supplier,  by
21        making  a  specific  notation  thereof  on the invoice or
22        sales slip covering each such sale.
23             7.  When a sale of special fuel is made  to  someone
24        other than a licensed distributor or a, licensed supplier
25        ,  or a licensed bulk user, for a use other than in motor
26        vehicles, by making a specific notation  thereof  on  the
27        invoice  or  sales  slip covering such sale and obtaining
28        such supporting documentation as may be required  by  the
29        Department.  The  distributor  shall  obtain and keep the
30        supporting documentation in such form as  the  Department
31        may  require  by rule. The supporting documentation shall
32        be signed by the buyer of  the  special  fuel  and  shall
33        specify the reasons for which the sale should be made tax
34        free.  It  shall  be made available by the distributor on
 
SB1082 Engrossed            -23-               LRB9105921PTdv
 1        demand for inspection and copying by the Department.
 2             8.  (Blank). When a sale of special fuel is made  to
 3        a  licensed  bulk  user  with a valid unrevoked permit to
 4        purchase special fuel tax exempt.
 5        All special fuel sold or used  for  non-highway  purposes
 6    must  have  a dye added in accordance with Section 4d of this
 7    Law.
 8        All suits or other proceedings brought for the purpose of
 9    recovering any taxes, interest or penalties due the State  of
10    Illinois  under this Act may be maintained in the name of the
11    Department.
12    (Source: P.A. 89-399, eff. 8-20-95.)

13        (35 ILCS 505/6a) (from Ch. 120, par. 422a)
14        Sec. 6a. Collection of tax; suppliers. A supplier,  other
15    than  a  licensed  distributor,  who sells or distributes any
16    special fuel, which he is required by Section 5a to report to
17    the  Department  when  filing  a  return,  shall  (except  as
18    hereinafter provided) collect at the time of  such  sale  and
19    distribution, the amount of tax imposed under this Act on all
20    such  special  fuel  sold and distributed, and at the time of
21    making a return, the supplier shall pay to the Department the
22    amount so collected less a discount of 2%  which  is  allowed
23    to  reimburse  the  supplier  for  the  expenses  incurred in
24    keeping records, preparing and filing returns, collecting and
25    remitting the tax and supplying data  to  the  Department  on
26    request,   and  shall  also  pay  to the Department an amount
27    equal to the amount that would be collectible as a tax in the
28    event of a sale thereof on all such special fuel used by said
29    supplier during the period covered by the  return.   However,
30    no payment  shall be made based upon dyed diesel fuel used by
31    said supplier for non-highway purposes. The 2% discount shall
32    only  be  applicable  to  the  amount  of  tax  payment which
33    accompanies a return which is filed timely in accordance with
 
SB1082 Engrossed            -24-               LRB9105921PTdv
 1    Section 5(a) of this Act.  In each subsequent sale of special
 2    fuel on which the amount of tax imposed under  this  Act  has
 3    been  collected  as  provided  in this Section, the amount so
 4    collected shall be added to the selling price,  so  that  the
 5    amount  of  tax is paid ultimately by the user of the special
 6    fuel.  However, no collection or payment shall be made in the
 7    case of the sale or use of any special fuel  to the extent to
 8    which such sale or use of  motor  fuel  may  not,  under  the
 9    Constitution  and  statutes of the United States, be made the
10    subject of taxation by this State.
11        A person whose license to act as supplier of special fuel
12    has been revoked shall, at the time of making a return,  also
13    pay  to  the  Department  an  amount equal to the amount that
14    would be collectible as a tax in the event of a sale  thereof
15    on  all  special  fuel,  which  he  is  required  by  the 1st
16    paragraph of Section 5a to report to the Department in making
17    a return.
18        A supplier may make tax-free sales of special fuel,  with
19    respect to which he is otherwise required to collect the tax,
20    when  the  motor fuel is delivered from a dispensing facility
21    that has withdrawal facilities capable of dispensing  special
22    fuel  into  the  fuel  supply tanks of motor vehicles only as
23    specified in the following items 1, 2, and 3.  A supplier may
24    make tax-free sales of special fuel, with respect to which he
25    is otherwise required to collect the tax,  when  the  special
26    fuel  is delivered from other facilities only as specified in
27    the following items 1 through 7.
28             1.  When the sale is made to the federal  government
29        or its instrumentalities.
30             2.  When the sale is made to a municipal corporation
31        owning  and  operating  a local transportation system for
32        public service in this State when an official certificate
33        of exemption is obtained in lieu of the tax.
34             3.  When the sale  is  made  to  a  privately  owned
 
SB1082 Engrossed            -25-               LRB9105921PTdv
 1        public  utility  owning  and  operating  2  axle vehicles
 2        designed  and  used  for   transporting   more   than   7
 3        passengers, which vehicles are used as common carriers in
 4        general  transportation of passengers, are not devoted to
 5        any specialized purpose and are operated entirely  within
 6        the territorial limits of a single municipality or of any
 7        group  of contiguous municipalities, or in a close radius
 8        thereof, and the operations of which are subject  to  the
 9        regulations  of the Illinois Commerce Commission, when an
10        official certificate of exemption is obtained in lieu  of
11        the tax.
12             4.  When  a sale of special fuel is made to a person
13        holding a valid unrevoked license  as  a  supplier  or  a
14        distributor  by  making  a  specific  notation thereof on
15        invoice or sales slip covering each such sale.
16             5.  When a sale of special fuel is made  to  someone
17        other  than a licensed distributor, licensed supplier, or
18        licensed  bulk  user  for  a  use  other  than  in  motor
19        vehicles, by making a specific notation  thereof  on  the
20        invoice  or  sales  slip covering such sale and obtaining
21        such supporting documentation as may be required  by  the
22        Department.  The  supplier  shall  obtain  and  keep  the
23        supporting  documentation  in such form as the Department
24        may require by rule. The supporting  documentation  shall
25        be  signed  by  the  buyer  of the special fuel and shall
26        specify the reasons for which the sale should be made tax
27        free. It shall be  made  available  by  the  supplier  on
28        demand for inspection and copying by the Department.
29             6.  (Blank).  When a sale of special fuel is made to
30        a licensed bulk user with a valid,  unrevoked  permit  to
31        purchase special fuel tax exempt.
32             7.  When  a sale of special fuel is made to a person
33        where delivery is made outside of this State.
34        All special fuel sold or used  for  non-highway  purposes
 
SB1082 Engrossed            -26-               LRB9105921PTdv
 1    must  have  a dye added in accordance with Section 4d of this
 2    Law.
 3        All suits or other proceedings brought for the purpose of
 4    recovering any taxes, interest or penalties due the State  of
 5    Illinois  under this Act may be maintained in the name of the
 6    Department.
 7    (Source: P.A. 89-399, eff. 8-20-95.)

 8        (35 ILCS 505/8) (from Ch. 120, par. 424)
 9        Sec. 8.  Except as provided in Sections  Section  8a  and
10    13a.6  and  items 13, 14, 15, and 16 of Section 15, all money
11    received by the Department under this Act, including payments
12    made to the Department by member jurisdictions  participating
13    in  the  International Fuel Tax Agreement, shall be deposited
14    in a special fund in the State treasury, to be known  as  the
15    "Motor Fuel Tax Fund", and shall be used as follows:
16        (a)  2  1/2  cents  per  gallon  of  the tax collected on
17    special fuel under paragraph (b) of Section 2 and Section 13a
18    of this Act shall be transferred to  the  State  Construction
19    Account Fund in the State Treasury;
20        (b)  $420,000  shall  be  transferred  each  month to the
21    State Boating Act Fund  to  be  used  by  the  Department  of
22    Natural  Resources for the purposes specified in Article X of
23    the Boat Registration and Safety Act;
24        (c)  $1,500,000 shall be transferred each  month  to  the
25    Grade  Crossing  Protection  Fund  to be used as follows: not
26    less than $6,000,000 each fiscal year shall be used  for  the
27    construction   or   reconstruction   of  rail  highway  grade
28    separation structures; beginning with fiscal  year  1997  and
29    ending  in  fiscal  year  1999,  $1,500,000,  and $750,000 in
30    fiscal year 2000 and each fiscal  year  thereafter  shall  be
31    transferred  to  the Transportation Regulatory Fund and shall
32    be accounted for as part of the rail carrier portion of  such
33    funds  and shall be used to pay the cost of administration of
 
SB1082 Engrossed            -27-               LRB9105921PTdv
 1    the Illinois Commerce Commission's railroad safety program in
 2    connection with its duties under subsection  (3)  of  Section
 3    18c-7401  of the Illinois Vehicle Code, with the remainder to
 4    be used by the Department of Transportation upon order of the
 5    Illinois Commerce Commission, to pay that part  of  the  cost
 6    apportioned  by  such  Commission  to  the State to cover the
 7    interest of the public in  the  use  of  highways,  roads  or
 8    streets  in  the county highway system, township and district
 9    road system or municipal street  system  as  defined  in  the
10    Illinois  Highway  Code, as the same may from time to time be
11    amended,  for  separation  of   grades,   for   installation,
12    construction  or  reconstruction  of  crossing  protection or
13    reconstruction, alteration, relocation including construction
14    or improvement of any existing highway necessary  for  access
15    to  property  or  improvement of any grade crossing including
16    the necessary highway  approaches  thereto  of  any  railroad
17    across  the highway or public road, as provided for in and in
18    accordance with Section  18c-7401  of  the  Illinois  Vehicle
19    Code.   In  entering  orders  for projects for which payments
20    from the Grade Crossing Protection Fund  will  be  made,  the
21    Commission  shall  account for expenditures authorized by the
22    orders on a cash rather than an accrual basis.  For  purposes
23    of this requirement an "accrual basis" assumes that the total
24    cost  of  the project is expended in the fiscal year in which
25    the order is entered, while a "cash basis" allocates the cost
26    of  the  project  among  fiscal  years  as  expenditures  are
27    actually made.  To meet the requirements of this  subsection,
28    the  Illinois  Commerce  Commission  shall develop annual and
29    5-year project plans of rail  crossing  capital  improvements
30    that  will  be  paid  for with moneys from the Grade Crossing
31    Protection Fund.  The  annual  project  plan  shall  identify
32    projects  for  the  succeeding  fiscal  year  and  the 5-year
33    project plan shall  identify  projects  for  the  5  directly
34    succeeding  fiscal  years.   The  Commission shall submit the
 
SB1082 Engrossed            -28-               LRB9105921PTdv
 1    annual  and  5-year  project  plans  for  this  Fund  to  the
 2    Governor, the President of the Senate,  the  Senate  Minority
 3    Leader,  the Speaker of the House of Representatives, and the
 4    Minority Leader of the House of Representatives on the  first
 5    Wednesday in April of each year;
 6        (d)  of  the  amount remaining after allocations provided
 7    for in subsections (a), (b)  and  (c),  a  sufficient  amount
 8    shall be reserved to pay all of the following:
 9             (1)  the  costs  of  the  Department  of  Revenue in
10        administering this Act;
11             (2)  the costs of the Department  of  Transportation
12        in  performing its duties imposed by the Illinois Highway
13        Code for supervising the use  of  motor  fuel  tax  funds
14        apportioned   to   municipalities,   counties   and  road
15        districts;
16             (3)  refunds provided for in Section 13 of this  Act
17        and  under  the  terms  of  the  International  Fuel  Tax
18        Agreement referenced in Section 14a;
19             (4)  from  October  1, 1985 until June 30, 1994, the
20        administration of the Vehicle Emissions  Inspection  Law,
21        which   amount   shall   be   certified  monthly  by  the
22        Environmental Protection Agency to the State  Comptroller
23        and   shall   promptly   be   transferred  by  the  State
24        Comptroller and Treasurer from the Motor Fuel Tax Fund to
25        the Vehicle Inspection Fund, and beginning July 1,  1994,
26        and  until  December 31, 2000, one-twelfth of $25,000,000
27        each  month  for  the  administration  of   the   Vehicle
28        Emissions  Inspection  Law  of 1995, to be transferred by
29        the State Comptroller and Treasurer from the  Motor  Fuel
30        Tax Fund into the Vehicle Inspection Fund;
31             (5)  amounts  ordered  paid  by the Court of Claims;
32        and
33             (6)  payment of motor fuel use taxes due  to  member
34        jurisdictions  under  the terms of the International Fuel
 
SB1082 Engrossed            -29-               LRB9105921PTdv
 1        Tax  Agreement.   The  Department  shall  certify   these
 2        amounts to the Comptroller by the 15th day of each month;
 3        the  Comptroller  shall cause orders to be drawn for such
 4        amounts, and the Treasurer shall administer those amounts
 5        on or before the last day of each month;
 6        (e)  after allocations for  the  purposes  set  forth  in
 7    subsections (a), (b), (c) and (d), the remaining amount shall
 8    be apportioned as follows:
 9             (1)  58.4% shall be deposited as follows:
10                  (A)  37%  into  the  State Construction Account
11             Fund, and
12                  (B)  63% into  the  Road  Fund,  $1,250,000  of
13             which   shall   be   reserved  each  month  for  the
14             Department  of  Transportation   to   be   used   in
15             accordance  with  the  provisions  of Sections 6-901
16             through 6-906 of the Illinois Highway Code;
17             (2)  41.6% shall be transferred to the Department of
18        Transportation to be distributed as follows:
19                  (A)  49.10% to the municipalities of the State,
20                  (B)  16.74% to the counties of the State having
21             1,000,000 or more inhabitants,
22                  (C)  18.27% to the counties of the State having
23             less than 1,000,000 inhabitants,
24                  (D)  15.89% to the road districts of the State.
25        As soon as may be after the first day of each  month  the
26    Department of Transportation shall allot to each municipality
27    its   share   of   the  amount  apportioned  to  the  several
28    municipalities which shall be in proportion to the population
29    of such municipalities as determined by  the  last  preceding
30    municipal  census  if  conducted by the Federal Government or
31    Federal census. If territory is annexed to  any  municipality
32    subsequent  to  the  time  of  the  last preceding census the
33    corporate authorities of such municipality may cause a census
34    to be taken of such annexed territory and the  population  so
 
SB1082 Engrossed            -30-               LRB9105921PTdv
 1    ascertained   for  such  territory  shall  be  added  to  the
 2    population of the municipality  as  determined  by  the  last
 3    preceding census for the purpose of determining the allotment
 4    for that municipality.  If the population of any municipality
 5    was  not  determined by the last Federal census preceding any
 6    apportionment, the apportionment to such  municipality  shall
 7    be  in accordance with any census taken by such municipality.
 8    Any municipal census used in  accordance  with  this  Section
 9    shall be certified to the Department of Transportation by the
10    clerk of such municipality, and the accuracy thereof shall be
11    subject  to  approval  of  the Department which may make such
12    corrections as it ascertains to be necessary.
13        As soon as may be after the first day of each  month  the
14    Department  of  Transportation shall allot to each county its
15    share of the amount apportioned to the  several  counties  of
16    the  State  as herein provided. Each allotment to the several
17    counties having less than 1,000,000 inhabitants shall  be  in
18    proportion  to  the  amount  of  motor  vehicle  license fees
19    received from the residents of such  counties,  respectively,
20    during  the  preceding  calendar year. The Secretary of State
21    shall, on or before April 15 of each year,  transmit  to  the
22    Department  of  Transportation  a  full  and  complete report
23    showing the amount of motor  vehicle  license  fees  received
24    from  the  residents of each county, respectively, during the
25    preceding calendar year.  The  Department  of  Transportation
26    shall,  each  month, use for allotment purposes the last such
27    report received from the Secretary of State.
28        As soon as may be after the first day of each month,  the
29    Department  of  Transportation  shall  allot  to  the several
30    counties their share of the amount apportioned for the use of
31    road districts.  The allotment shall be apportioned among the
32    several counties in the State in  the  proportion  which  the
33    total mileage of township or district roads in the respective
34    counties  bears  to  the  total  mileage  of all township and
 
SB1082 Engrossed            -31-               LRB9105921PTdv
 1    district roads in the State. Funds allotted to the respective
 2    counties for the use  of  road  districts  therein  shall  be
 3    allocated  to the several road districts in the county in the
 4    proportion which  the  total  mileage  of  such  township  or
 5    district  roads in the respective road districts bears to the
 6    total mileage of all such township or district roads  in  the
 7    county.   After  July  1  of any year, no allocation shall be
 8    made for any road district unless it levied a  tax  for  road
 9    and  bridge  purposes  in  an  amount  which will require the
10    extension of such tax against the  taxable  property  in  any
11    such  road district at a rate of not less than either .08% of
12    the value thereof, based upon the  assessment  for  the  year
13    immediately  prior  to  the year in which such tax was levied
14    and as equalized by the Department of Revenue or,  in  DuPage
15    County,  an  amount equal to or greater than $12,000 per mile
16    of  road  under  the  jurisdiction  of  the  road   district,
17    whichever is less.  If any road district has levied a special
18    tax  for  road purposes pursuant to Sections 6-601, 6-602 and
19    6-603 of the Illinois Highway Code, and such tax  was  levied
20    in  an  amount which would require extension at a rate of not
21    less than .08% of the value of the taxable property  thereof,
22    as equalized or assessed by the Department of Revenue, or, in
23    DuPage County, an amount equal to or greater than $12,000 per
24    mile  of  road  under  the jurisdiction of the road district,
25    whichever is less, such levy  shall,  however,  be  deemed  a
26    proper  compliance  with  this Section and shall qualify such
27    road district for an allotment  under  this  Section.   If  a
28    township  has  transferred  to the road and bridge fund money
29    which, when added to the amount of any tax levy of  the  road
30    district  would  be  the  equivalent  of a tax levy requiring
31    extension at a rate of at least .08%,  or, in DuPage  County,
32    an  amount  equal to or greater than $12,000 per mile of road
33    under the jurisdiction of the  road  district,  whichever  is
34    less,  such  transfer, together with any such tax levy, shall
 
SB1082 Engrossed            -32-               LRB9105921PTdv
 1    be deemed a proper compliance with  this  Section  and  shall
 2    qualify  the  road  district  for  an  allotment  under  this
 3    Section.
 4        In  counties in which a property tax extension limitation
 5    is imposed under the Property Tax Extension  Limitation  Law,
 6    road  districts  may retain their entitlement to a motor fuel
 7    tax allotment if, at the  time  the  property  tax  extension
 8    limitation  was imposed, the road district was levying a road
 9    and bridge tax at a rate sufficient to entitle it to a  motor
10    fuel   tax  allotment  and  continues  to  levy  the  maximum
11    allowable amount after the imposition  of  the  property  tax
12    extension   limitation.    Any   road  district  may  in  all
13    circumstances retain its entitlement  to  a  motor  fuel  tax
14    allotment  if  it  levied  a road and bridge tax in an amount
15    that will require  the  extension  of  the  tax  against  the
16    taxable  property  in the road district at a rate of not less
17    than 0.08% of the assessed value of the property, based  upon
18    the assessment for the year immediately preceding the year in
19    which  the  tax was levied and as equalized by the Department
20    of Revenue or, in  DuPage  County,  an  amount  equal  to  or
21    greater  than $12,000 per mile of road under the jurisdiction
22    of the road district, whichever is less.
23        As used in this Section the term  "road  district"  means
24    any  road  district,  including  a county unit road district,
25    provided for by the  Illinois  Highway  Code;  and  the  term
26    "township  or  district  road" means any road in the township
27    and district road system as defined in the  Illinois  Highway
28    Code.  For the purposes of this Section, "road district" also
29    includes   park  districts,  forest  preserve  districts  and
30    conservation  districts  organized  under  Illinois  law  and
31    "township or district road" also includes such roads  as  are
32    maintained  by  park districts, forest preserve districts and
33    conservation districts.   The  Department  of  Transportation
34    shall  determine  the  mileage  of  all township and district
 
SB1082 Engrossed            -33-               LRB9105921PTdv
 1    roads for the purposes of making allotments  and  allocations
 2    of motor fuel tax funds for use in road districts.
 3        Payment  of  motor  fuel tax moneys to municipalities and
 4    counties  shall  be  made  as  soon  as  possible  after  the
 5    allotment is made.  The  treasurer  of  the  municipality  or
 6    county may invest these funds until their use is required and
 7    the  interest earned by these investments shall be limited to
 8    the same uses as the principal funds.
 9    (Source: P.A.  89-167,  eff.  1-1-96;  89-445,  eff.  2-7-96;
10    89-699,  eff.  1-16-97;  90-110,  eff.  7-14-97; 90-655, eff.
11    7-30-98; 90-659, eff. 1-1-99; 90-691,  eff.  1-1-99;  revised
12    9-16-98.)

13        (35 ILCS 505/11.5) (from Ch. 120, par. 427a)
14        Sec.  11.5.   In  the  event that liability upon the bond
15    filed by a distributor, supplier, or receiver, or  bulk  user
16    with  the  Department shall be discharged or reduced, whether
17    by judgment rendered, payment made or otherwise, or if in the
18    opinion of  the  Department  the  bond  of  any  distributor,
19    supplier,  or  receiver, or bulk user theretofore given shall
20    become unsatisfactory, then  the  distributor,  supplier,  or
21    receiver,  or  bulk  user  shall  forthwith, upon the written
22    demand of the Department, file a new bond in the same  manner
23    and  form  and in an amount and with sureties satisfactory to
24    the Department, failing which the Department shall  forthwith
25    revoke the license of the distributor, supplier, or receiver,
26    or bulk user.
27        If  such  new bond shall be furnished by the distributor,
28    supplier, or receiver, or bulk user as  above  provided,  the
29    Department  shall  cancel  the  bond  for which such new bond
30    shall be substituted.
31        Any surety on any  bond  furnished  by  any  distributor,
32    supplier,  or  receiver,  or  bulk user shall be released and
33    discharged from  any  and  all  liability  to  the  State  of
 
SB1082 Engrossed            -34-               LRB9105921PTdv
 1    Illinois  accruing  on  such  bond after the expiration of 60
 2    days from the date upon which such surety  shall  have  filed
 3    with  the  Department  written  request so to be released and
 4    discharged. But such request shall not  operate  to  relieve,
 5    release  or  discharge such surety from any liability already
 6    accrued, or which shall accrue, before the expiration of said
 7    60-day period. The Department shall, promptly on  receipt  of
 8    such  request, notify the distributor, supplier, or receiver,
 9    or bulk user  and,  unless  such  distributor,  supplier,  or
10    receiver,  or  bulk user shall on or before the expiration of
11    such 60-day period file with the Department a new bond with a
12    surety or sureties satisfactory  to  the  Department  in  the
13    amount  and  form hereinbefore provided, the Department shall
14    forthwith cancel the license of such  distributor,  supplier,
15    or  receiver,  or  bulk  user.  If  such  new  bond  shall be
16    furnished by said distributor, supplier, or receiver, or bulk
17    user as above provided, the Department shall cancel the  bond
18    for which such new bond shall be substituted.
19    (Source: P.A. 86-958; 87-895.)

20        (35 ILCS 505/12) (from Ch. 120, par. 428)
21        Sec. 12.  It is the duty of every distributor, receiver,
22    and  or supplier under this Act to keep within this State and
23    of every bulk user under this Act to keep within  this  State
24    or at some office outside this State for any period for which
25    the  Department  is  authorized  to  issue  a  Notice  of Tax
26    Liability to the distributor, receiver, or supplier  or  bulk
27    user,  records  and  books  showing  all purchases, receipts,
28    losses through any cause,  sales,  distribution  and  use  of
29    motor  fuel, aviation fuels, home heating oils, and kerosene,
30    and products used for the  purpose  of  blending  to  produce
31    motor  fuel,  which  records  and  books  shall, at all times
32    during business hours of the day, be subject to inspection by
33    the Department, or its duly authorized agents and employees.
 
SB1082 Engrossed            -35-               LRB9105921PTdv
 1    If, however, the records and books of any bulk user are  kept
 2    out  of  this State, such records and books shall be produced
 3    for inspection within 20 days from date of  notice  from  the
 4    Department  at  Springfield  or Chicago as designated in that
 5    notice.  For purposes of this Section,  "records"  means  all
 6    data  maintained  by  the  taxpayer  including data on paper,
 7    microfilm, microfiche or any type  of  machine-sensible  data
 8    compilation. The Department may, in its discretion, prescribe
 9    reasonable  and  uniform  methods  for keeping of records and
10    books by licensees and that set forth  requirements  for  the
11    form  and  format of records that must be maintained in order
12    to comply with any recordkeeping requirement under this Act.
13    (Source: P.A. 88-480.)

14        (35 ILCS 505/12a) (from Ch. 120, par. 428a)
15        Sec. 12a. (a) Any duly authorized agent  or  employee  of
16    the  Department  shall have authority to enter in or upon the
17    premises  of  any  manufacturer,  vendor,  dealer,  retailer,
18    distributor, receiver, supplier or  user  of  motor  fuel  or
19    special  fuels  during the regular business hours in order to
20    examine books, records,  invoices,  storage  tanks,  and  any
21    other applicable equipment pertaining to motor fuel, aviation
22    fuels,  home  heating  oils,  kerosene,  or special fuels, to
23    determine whether or not the taxes imposed by this  Act  have
24    been paid.
25        (b)  Any  duly  authorized  agent of the Department, upon
26    presenting appropriate credentials and a  written  notice  to
27    the  person  who  owns, operates, or controls the place to be
28    inspected, shall have the authority to enter any place and to
29    conduct  inspections  in  accordance  with  subsections   (b)
30    through (g) of this Section.
31        (c)  Inspections will be performed in a reasonable manner
32    and  at  times  that  are reasonable under the circumstances,
33    taking into consideration the normal business  hours  of  the
 
SB1082 Engrossed            -36-               LRB9105921PTdv
 1    place to be entered.
 2        (d)  Inspections  may  be  at  any place at which taxable
 3    motor fuel is  or  may  be  produced  or  stored  or  at  any
 4    inspection  site  where  evidence of the following activities
 5    may be discovered:
 6             (1)  Where any dyed diesel fuel is sold or held  for
 7        sale  by any person for any use which the person knows or
 8        has reason to know is not a nontaxable use of such fuel.
 9             (2)  Where any dyed diesel fuel is held for  use  or
10        used  by any person for a use other than a nontaxable use
11        and the person knew, or had reason to know, that the fuel
12        was dyed according to Section 4d.
13             (3)  Where any person willfully alters, or  attempts
14        to  alter,  the  strength  or  composition  of any dye or
15        marking done pursuant to Section 4d of this Law.
16        The places may include,  but  are  not  limited  to,  the
17    following:
18             (1)  Any terminal.
19             (2)  Any   fuel  storage  facility  that  is  not  a
20        terminal.
21             (3)  Any retail fuel facility.
22             (4)  Any designated inspection site.
23        (e)  Duly  authorized  agents  of  the   Department   may
24    physically  inspect,  examine,  or otherwise search any tank,
25    reservoir, or other container that can or may be used for the
26    production, storage, or transportation of fuel, fuel dyes, or
27    fuel markers.  Inspection may also be made of  any  equipment
28    used  for,  or  in  connection  with, production, storage, or
29    transportation of fuel, fuel dyes,  or  fuel  markers.   This
30    includes  any  equipment  used  for  the dyeing or marking of
31    fuel.  This also includes books and records, if any, that are
32    maintained at  the  place  of  inspection  and  are  kept  to
33    determine tax liability under this Law.
34        (f)  Duly  authorized agents of the Department may detain
 
SB1082 Engrossed            -37-               LRB9105921PTdv
 1    any motor vehicle, train, barge,  ship,  or  vessel  for  the
 2    purpose  of  inspecting  its  fuel  tanks  and storage tanks.
 3    Detainment will be either on the premises under inspection or
 4    at a designated inspection site.  Detainment may continue for
 5    a reasonable period of time as is necessary to determine  the
 6    amount and composition of the fuel.
 7        (g)  Duly  authorized  agents  of the Department may take
 8    and remove samples of fuel in quantities  as  are  reasonably
 9    necessary to determine the composition of the fuel.
10        (h) (1)  Any  person  that refuses to allow an inspection
11        shall pay  a  $1,000  penalty  for  each  refusal.   This
12        penalty  is  in addition to any other penalty or tax that
13        may be imposed upon  that  person  or  any  other  person
14        liable  for  tax  under this Law.  All penalties received
15        under this subsection shall be  deposited  into  the  Tax
16        Compliance and Administration Fund.
17             (2)  In  addition, any licensee who refuses to allow
18        an inspection shall be subject to license  revocation  as
19        provided  by  Section  16  of this Law ; provided that if
20        such books, records or invoices of any bulk user are kept
21        out of this State, such books, records or invoices  shall
22        be  produced for examination within 20 days from the date
23        of notice from the Department at Springfield  or  Chicago
24        as designated in said notice.
25    (Source: P.A. 86-958.)

26        (35 ILCS 505/13) (from Ch. 120, par. 429)
27        Sec.   13.  Any   person  other  than  a  distributor  or
28    supplier, who loses motor fuel  through  any  cause  or  uses
29    motor  fuel (upon which he has paid the amount required to be
30    collected under Section 2 of this Act) for any purpose  other
31    than  operating  a  motor vehicle upon the public highways or
32    waters, shall be reimbursed and repaid the amount so paid.
33        Any person who purchases motor fuel in Illinois and  uses
 
SB1082 Engrossed            -38-               LRB9105921PTdv
 1    that motor fuel in another state and that other state imposes
 2    a  tax  on the use of such motor fuel shall be reimbursed and
 3    repaid the amount of Illinois tax paid  under  Section  2  of
 4    this  Act  on  the  motor  fuel  used  in  such  other state.
 5    Reimbursement and repayment shall be made by  the  Department
 6    upon receipt of adequate proof of taxes paid to another state
 7    and the amount of motor fuel used in that state.
 8        Claims  for  such  reimbursement  must  be  made  to  the
 9    Department  of  Revenue, duly verified by the claimant (or by
10    the claimant's legal representative if the claimant has  died
11    or  become  a  person  under  legal  disability),  upon forms
12    prescribed by the Department.   The  claim  must  state  such
13    facts  relating  to the purchase, importation, manufacture or
14    production  of  the  motor  fuel  by  the  claimant  as   the
15    Department  may  deem  necessary,  and the time when, and the
16    circumstances of its loss or the specific purpose  for  which
17    it  was  used  (as the case may be), together with such other
18    information as the Department  may  reasonably  require.   No
19    claim based upon idle time shall be allowed.  Claims for full
20    reimbursement must be filed not later than one year after the
21    date on which the tax was paid by the claimant.
22        If,  however,  a  claim  for such reimbursement otherwise
23    meeting the requirements of this Section is filed  more  than
24    one  year but less than 2 years after that date, the claimant
25    shall be reimbursed at the rate of 80% of the amount to which
26    he would have been entitled if  his  claim  had  been  timely
27    filed.
28        The   Department  may  make  such  investigation  of  the
29    correctness of the facts stated in such claims  as  it  deems
30    necessary.   When the Department has approved any such claim,
31    it shall pay to the claimant  (or  to  the  claimant's  legal
32    representative,  as such if the claimant has died or become a
33    person under legal disability) the reimbursement provided  in
34    this  Section,  out of any moneys appropriated to it for that
 
SB1082 Engrossed            -39-               LRB9105921PTdv
 1    purpose.
 2        Any distributor or supplier who has paid the tax  imposed
 3    by Section 2 of this Act upon motor fuel lost or used by such
 4    distributor  or supplier for any purpose other than operating
 5    a motor vehicle upon the public highways or waters may file a
 6    claim for credit or refund to recover  the  amount  so  paid.
 7    Such  claims  shall  be  filed  on  forms  prescribed  by the
 8    Department.  Such claims shall be  made  to  the  Department,
 9    duly  verified  by  the  claimant (or by the claimant's legal
10    representative if the claimant has died or  become  a  person
11    under   legal  disability),  upon  forms  prescribed  by  the
12    Department.  The claim shall state such facts relating to the
13    purchase, importation, manufacture or production of the motor
14    fuel by the claimant as the Department may deem necessary and
15    the time when the loss or nontaxable use  occurred,  and  the
16    circumstances  of  its loss or the specific purpose for which
17    it was used (as the case may be), together  with  such  other
18    information as the Department may reasonably require.  Claims
19    must be filed not later than one year after the date on which
20    the tax was paid by the claimant.
21        The   Department  may  make  such  investigation  of  the
22    correctness of the facts stated in such claims  as  it  deems
23    necessary.    When  the  Department  approves  a  claim,  the
24    Department shall issue  a  refund  or  credit  memorandum  as
25    requested by the taxpayer, to the distributor or supplier who
26    made  the  payment  for  which  the refund or credit is being
27    given or, if the distributor or supplier has died  or  become
28    incompetent,   to  such  distributor's  or  supplier's  legal
29    representative,  as  such.   The  amount   of   such   credit
30    memorandum shall be credited against any tax due or to become
31    due  under this Act from the distributor or supplier who made
32    the payment for which credit has been given.
33        Any credit or refund that is allowed under  this  Section
34    shall  bear  interest at the rate and in the manner specified
 
SB1082 Engrossed            -40-               LRB9105921PTdv
 1    in the Uniform Penalty and Interest Act.
 2        In case the distributor  or  supplier  requests  and  the
 3    Department  determines  that  the  claimant  is entitled to a
 4    refund,  such  refund  shall   be   made   only   from   such
 5    appropriation  as  may  be  available for that purpose. If it
 6    appears unlikely that the amount  appropriated  would  permit
 7    everyone  having a claim allowed during the period covered by
 8    such appropriation to elect to receive  a  cash  refund,  the
 9    Department,  by  rule  or  regulation,  shall provide for the
10    payment of refunds in hardship cases and  shall  define  what
11    types of cases qualify as hardship cases.
12        In  any  case in which there has been an erroneous refund
13    of tax payable under this Section, a notice of tax  liability
14    may  be  issued at any time within 3 years from the making of
15    that refund, or within 5 years from the making of that refund
16    if it appears that any part of  the  refund  was  induced  by
17    fraud  or the misrepresentation of material fact.  The amount
18    of any proposed assessment set forth by the Department  shall
19    be limited to the amount of the erroneous refund.
20        If  no  tax  is  due  and  no  proceeding  is  pending to
21    determine whether such distributor or supplier is indebted to
22    the Department for tax, the credit memorandum so  issued  may
23    be  assigned  and  set  over  by  the  lawful holder thereof,
24    subject to reasonable rules of the Department, to  any  other
25    licensed  distributor or supplier who is subject to this Act,
26    and the amount thereof applied by the Department against  any
27    tax due or to become due under this Act from such assignee.
28        If  the payment for which the distributor's or supplier's
29    claim is filed is held in  the  protest  fund  of  the  State
30    Treasury   during  the  pendency  of  the  claim  for  credit
31    proceedings pursuant to the order of the court in  accordance
32    with  Section  2a  of  the State Officers and Employees Money
33    Disposition Act and if it is determined by the Department  or
34    by   the   final   order  of  a  reviewing  court  under  the
 
SB1082 Engrossed            -41-               LRB9105921PTdv
 1    Administrative Review Law that the claimant  is  entitled  to
 2    all or a part of the credit claimed, the claimant, instead of
 3    receiving  a  credit  memorandum  from  the Department, shall
 4    receive a cash refund from the protest fund as  provided  for
 5    in  Section  2a  of  the  State  Officers and Employees Money
 6    Disposition Act.
 7        If any person ceases to be licensed as a  distributor  or
 8    supplier  while  still  holding  an  unused credit memorandum
 9    issued under this Act, such  person  may,  at  his   election
10    (instead  of  assigning  the  credit memorandum to a licensed
11    distributor or licensed supplier under this  Act),  surrender
12    such unused credit memorandum to the Department and receive a
13    refund of the amount to which such person is entitled.
14        No  claim  based upon the use of undyed diesel fuel shall
15    be allowed except for undyed diesel fuel used by a commercial
16    vehicle, as that term is defined in Section  1-111.8  of  the
17    Illinois  Vehicle  Code, for any purpose other than operating
18    the  commercial  vehicle  upon  the   public   highways   and
19    unlicensed commercial vehicles operating on private property.
20    Claims  shall  be  limited  to  commercial  vehicles that are
21    operated for both highway purposes  and  any  purposes  other
22    than  operating  such vehicles upon the public highways.  The
23    Department shall promulgate regulations establishing specific
24    limits on the amount  of  undyed  diesel  fuel  that  may  be
25    claimed for refund.
26        For  purposes  of  claims  for  refund,  "loss" means the
27    reduction of motor fuel resulting from fire, theft, spillage,
28    spoilage, leakage, or any other provable cause, but does  not
29    include  a  reduction resulting from evaporation or shrinkage
30    due to temperature variations.
31    (Source: P.A. 90-491, eff. 1-1-98.)

32        (35 ILCS 505/13a.6) (from Ch. 120, par. 429a6)
33        Sec. 13a.6.  In addition to any other  penalties  imposed
 
SB1082 Engrossed            -42-               LRB9105921PTdv
 1    by this Act:
 2        (a)  If  a commercial motor vehicle is found operating in
 3    Illinois (i) without displaying decals  required  by  Section
 4    13a.4  of  this  Act,  or in lieu thereof only for the period
 5    specified  on  the   temporary   permit,   a   valid   30-day
 6    International  Fuel  Tax  Agreement temporary permit, (ii) or
 7    without carrying a motor fuel use tax license as required  by
 8    Section 13a.4 of this Act, or (iii) without carrying a single
 9    trip permit, when applicable, as provided in Section 13a.5 of
10    this  Act, or (iv) with a revoked motor fuel use tax license,
11    the operator is guilty of a petty  offense  and  must  pay  a
12    minimum  of $75. For each subsequent occurrence, the operator
13    must pay a minimum of $150.
14        When a commercial vehicle is found operating in  Illinois
15    with  a revoked motor fuel use tax license, the vehicle shall
16    be placed out of  service  and  not  allowed  to  operate  in
17    Illinois until the motor fuel use tax license is reinstated.
18        (b)  If  a  commercial  motor  vehicle  is  found  to  be
19    operating  in  Illinois  without  a  valid motor fuel use tax
20    license and without properly displaying  decals  required  by
21    Section  13a.4  or  without  a  valid single trip permit when
22    required by Section 13a.5 of  this  Act  or  a  valid  30-day
23    International Fuel Tax Agreement temporary permit, the person
24    required to obtain a license or permit under Section 13a.4 or
25    13a.5  of this Law operator must pay a minimum of $1,000 as a
26    penalty.  For each subsequent occurrence, the person must pay
27    a minimum of $2,000 as a penalty.
28        All  penalties  received  under  this  Section  shall  be
29    deposited into the Tax Compliance and Administration Fund.
30        Improper use of the motor fuel use  tax  license,  single
31    trip  permit,  or  decals provided for in this Section may be
32    cause for revocation of the license.
33        For  purposes  of  this  Section,  "motor  fuel  use  tax
34    license" means (i) a motor fuel use tax license issued by the
 
SB1082 Engrossed            -43-               LRB9105921PTdv
 1    Department  or  by  any   member   jurisdiction   under   the
 2    International  Fuel  Tax  Agreement,  or  (ii) a valid 30-day
 3    International Fuel Tax Agreement temporary permit.
 4    (Source: P.A. 88-480; 88-669,  eff.  11-29-94;  89-399,  eff.
 5    8-20-95.)

 6        (35 ILCS 505/13a.7) (from Ch. 120, par. 429a7)
 7        Sec.  13a.7.   Notwithstanding  the provisions for credit
 8    memoranda, credits or refunds contained in Section  13a.3  of
 9    this  Act,  no  credit  memorandum, credit or refund shall be
10    allowed or made based upon a return filed more than  4  years
11    after  the  due  date of the return or the date the return is
12    filed, whichever is later. In any case  in  which  there  has
13    been an erroneous refund of tax payable under this Section, a
14    notice  of  tax  liability may be issued at any time within 3
15    years from the making of that refund or within 5  years  from
16    the  making of that refund if it appears that any part of the
17    refund was induced  by  fraud  or  the  misrepresentation  of
18    material  fact.   The  amount  of any proposed assessment set
19    forth by the Department shall be limited to the amount of the
20    erroneous refund.
21    (Source: P.A. 90-491, eff. 1-1-98.)

22        (35 ILCS 505/15) (from Ch. 120, par. 431)
23        Sec.  15.   1.  Any  person  who  knowingly  acts  as   a
24    distributor of motor fuel or supplier or bulk user of special
25    fuel,  or receiver of fuel without having a license so to do,
26    or who knowingly fails or refuses to file a return  with  the
27    Department  as  provided in Section 2b, Section 5, or Section
28    5a or Section 5b of this  Act,  or  who  knowingly  fails  or
29    refuses  to make payment to the Department as provided either
30    in Section 2b, Section 6, Section 6a, or Section  7  of  this
31    Act, shall be guilty of a Class 3 felony. Each day any person
32    knowingly  acts  as  a distributor of motor fuel, supplier or
 
SB1082 Engrossed            -44-               LRB9105921PTdv
 1    bulk user of special fuel, or receiver of fuel without having
 2    a license so to do or after such a license has been  revoked,
 3    constitutes a separate offense.
 4        2.  Any person who acts as a motor carrier without having
 5    a  valid motor fuel use tax license, issued by the Department
 6    or by a member  jurisdiction  under  the  provisions  of  the
 7    International  Fuel  Tax  Agreement,  or  a valid single trip
 8    permit is guilty of a Class A misdemeanor for a first offense
 9    and is guilty  of  a  Class  4  felony  for  each  subsequent
10    offense.  Any person (i) who fails or refuses to make payment
11    to the Department as provided in Section 13a.1 of this Act or
12    in the International Fuel Tax Agreement referenced in Section
13    14a, or (ii) who fails  or  refuses  to  make  the  quarterly
14    return  as  provided  in Section 13a.3 is guilty of a Class 4
15    felony; and for  each  subsequent  offense,  such  person  is
16    guilty of a Class 3 felony.
17        3.  In   case   such  person  acting  as  a  distributor,
18    receiver, supplier, or  bulk  user  or  motor  carrier  is  a
19    corporation,  then  the officer or officers, agent or agents,
20    employee or employees, of such  corporation  responsible  for
21    any  act  of such corporation, or failure of such corporation
22    to act, which acts or failure to act constitutes a  violation
23    of  any  of  the  provisions  of  this  Act  as enumerated in
24    paragraphs 1 and 2 of this Section, shall be punished by such
25    fine or imprisonment, or by both such fine  and  imprisonment
26    as provided in those paragraphs.
27        3.5.  Any  person  who knowingly enters false information
28    on any  supporting  documentation  required  to  be  kept  by
29    Section 6 or 6a of this Act is guilty of a Class 3 felony.
30        3.7.  Any  person who knowingly attempts in any manner to
31    evade or defeat any tax imposed by this Act or the payment of
32    any tax imposed by this Act is guilty of a Class 2 felony.
33        4.  Any person who refuses, upon demand,  to  submit  for
34    inspection,  books  and  records,  or who fails or refuses to
 
SB1082 Engrossed            -45-               LRB9105921PTdv
 1    keep books and records in violation of  Section  12  of  this
 2    Act,  or any distributor, receiver, or supplier, or bulk user
 3    who violates any reasonable rule or regulation adopted by the
 4    Department for the enforcement of this Act  is  guilty  of  a
 5    Class  A  misdemeanor.   Any  person who acts as a blender in
 6    violation of Section 3 of this Act or who having  transported
 7    reportable  motor fuel within Section 7b of this Act fails to
 8    make the return required by that  Section,  is  guilty  of  a
 9    Class 4 felony.
10        5.  Any  person  licensed  under Section 13a.4, 13a.5, or
11    the International  Fuel  Tax  Agreement  who:  (a)  fails  or
12    refuses  to  keep  records  and books, as provided in Section
13    13a.2 or as required by the terms of the  International  Fuel
14    Tax  Agreement,  (b) refuses upon demand by the Department to
15    submit for inspection and examination the records required by
16    Section  13a.2  of  this  Act  or  by  the   terms   of   the
17    International  Motor  Fuel Tax Agreement, or (c) violates any
18    reasonable rule or regulation adopted by the  Department  for
19    the  enforcement  of  this  Act,  is  guilty  of  a  Class  A
20    misdemeanor.
21        6.  Any  person  who  makes any false return or report to
22    the Department as to any material fact required  by  Sections
23    2b,  5,  5a,  5b,  7,  13,  or  13a.3  of  this Act or by the
24    International Fuel Tax Agreement  is  guilty  of  a  Class  2
25    felony.
26        7.  A  prosecution  for any violation of this Section may
27    be commenced anytime within 5 years of the commission of that
28    violation. A prosecution for tax  evasion  as  set  forth  in
29    paragraph  3.7  of  this  Section  may be prosecuted any time
30    within  5  years  of  the  commission  of  the  last  act  in
31    furtherance  of  evasion.  The  running  of  the  period   of
32    limitations  under  this Section shall be suspended while any
33    proceeding or appeal from  any  proceeding  relating  to  the
34    quashing  or  enforcement of any grand jury or administrative
 
SB1082 Engrossed            -46-               LRB9105921PTdv
 1    subpoena issued in connection with an  investigation  of  the
 2    violation of any provision of this Act is pending.
 3        8.  Any  person who provides false documentation required
 4    by any Section of this Act is guilty of a Class 4 felony.
 5        9.  Any person filing a fraudulent application  or  order
 6    form  under  any provision of this Act is guilty of a Class A
 7    misdemeanor.  For each  subsequent  offense,  the  person  is
 8    guilty of a Class 4 felony.
 9        10.  Any person who acts as a motor carrier and who fails
10    to carry a manifest as provided in Section 5.5 is guilty of a
11    Class  A misdemeanor. For each subsequent offense, the person
12    is guilty of a Class 4 felony.
13        11.  Any person who knowingly sells or attempts  to  sell
14    dyed  diesel  fuel  for  highway  use  is guilty of a Class 4
15    felony.  For each subsequent offense, the person is guilty of
16    a Class 2 felony.
17        12. Any person who knowingly possesses dyed  diesel  fuel
18    for highway use is guilty of a Class A misdemeanor.  For each
19    subsequent offense, the person is guilty of a Class 4 felony.
20        13.  Any  person who sells or transports dyed diesel fuel
21    without the notice required  by  Section  4e  shall  pay  the
22    following penalty:
23        First occurrence....................................$ 500
24        Second and each occurrence thereafter..............$1,000
25        14.  Any  person  who  owns,  operates,  or  controls any
26    container,  storage  tank,  or  facility  used  to  store  or
27    distribute dyed diesel fuel without the  notice  required  by
28    Section 4f shall pay the following penalty:
29        First occurrence....................................$ 500
30        Second and each occurrence thereafter..............$1,000
31        15.  If  a  licensed  motor vehicle is found to have dyed
32    diesel fuel within the ordinary fuel tanks  attached  to  the
33    motor vehicle, the operator shall pay the following penalty:
34        First occurrence...................................$2,500
 
SB1082 Engrossed            -47-               LRB9105921PTdv
 1        Second and each occurrence thereafter..............$5,000
 2        16.  Any  licensed  motor  fuel  distributor  or licensed
 3    supplier who sells or attempts to sell dyed diesel  fuel  for
 4    highway use shall pay the following penalty:
 5        First occurrence..................................$ 5,000
 6        Second and each occurrence thereafter.............$10,000
 7        17.  Any  person  who  knowingly sells or transports dyed
 8    diesel fuel without the notice  required  by  Section  4e  is
 9    guilty  of a petty offense.  For each subsequent offense, the
10    person is guilty of a Class A misdemeanor.
11        18.  Any person who knowingly owns, operates, or controls
12    any container, storage tank, or facility  used  to  store  or
13    distribute  dyed  diesel  fuel without the notice required by
14    Section 4f is guilty of a petty offense.  For each subsequent
15    offense the person is guilty of a Class A misdemeanor.
16        For purposes of this Section, dyed diesel fuel means  any
17    dyed  diesel  fuel whether or not dyed pursuant to Section 4d
18    of this Law.
19        All penalties received under items 13, 14, 15, and 16  of
20    this  Section  shall be deposited into the Tax Compliance and
21    Administration Fund.
22    (Source: P.A. 88-480; 88-669,  eff.  11-29-94;  89-399,  eff.
23    8-20-95.)

24        (35 ILCS 505/16) (from Ch. 120, par. 432)
25        Sec.  16.   The  Department  may,  after  5 days' notice,
26    revoke the distributor's, receiver's, or supplier's  or  bulk
27    user's  license  or  permit  of  any  person (1) who does not
28    operate as a distributor, receiver, supplier or bulk user (a)
29    under Sections 1.2, 1.14, 1.15, or 1.20,  (other  than  those
30    persons  who  hold  licenses under Paragraph A of Section 3),
31    (b) under Paragraph B of Section 3, or (c) under Section 3a-1
32    or (2) who violates any provision of this Act or any rule  or
33    regulation  promulgated by the Department under Section 14 of
 
SB1082 Engrossed            -48-               LRB9105921PTdv
 1    this Act, or (3) who refuses to allow any inspection or  test
 2    authorized by this Law.
 3        Any person whose returns for 2 or more consecutive months
 4    do  not  show  sufficient taxable sales to indicate an active
 5    business as a distributor, receiver,  or  supplier  shall  be
 6    deemed  to  not  be  operating as a distributor, receiver, or
 7    supplier as defined in Sections 1.2, 1.14 or 1.20.
 8        The Department may,  after  5  days  notice,  revoke  any
 9    distributor's,  receiver's, or supplier's license of a person
10    who is registered as a reseller of  motor  fuel  pursuant  to
11    Section 2a or 2c of the Retailers' Occupation Tax Act and who
12    fails  to  collect  such  prepaid  tax on invoiced gallons of
13    motor fuel sold or who fails to deliver a  statement  of  tax
14    paid  to  the  purchaser  or to the Department as required by
15    Sections 2d and 2e of the Retailers' Occupation Tax Act.
16        The Department may, on notice given by  registered  mail,
17    cancel a Blender's Permit for any violation of any provisions
18    of  this Act or for noncompliance with any rule or regulation
19    made by the Department under Section 14 of this Act.
20        The Department,  upon  complaint  filed  in  the  circuit
21    court,  may,  by injunction, restrain any person who fails or
22    refuses to comply with the provisions of this Act from acting
23    as a blender  or  distributor  of  motor  fuel,  supplier  of
24    special  fuel, bulk user of special fuel, or receiver of fuel
25    in this State.
26        The Department may revoke the motor fuel use tax  license
27    of a motor carrier registered under Section 13a.4, or that is
28    required   to   be   registered   under   the  terms  of  the
29    International Fuel Tax Agreement, that violates any provision
30    of this Act or any rule promulgated by the  Department  under
31    Sections  14 or 14a of this Act.  Motor fuel use tax licenses
32    that have been revoked are subject to  a  $100  reinstatement
33    fee.
34        Licensees  registered  or required to be registered under
 
SB1082 Engrossed            -49-               LRB9105921PTdv
 1    Section 13a.4, or persons  required  to  obtain  single  trip
 2    permits  under Section 13a.5, may protest any action or audit
 3    finding made by the Department by making  a  written  request
 4    for  a  hearing within 30 days after service of the notice of
 5    the original action  or  finding.   If  the  hearing  is  not
 6    requested  within 30 days in writing, the original finding or
 7    action is final.  Once a hearing has been properly requested,
 8    the Department shall give at least 20 days written notice  of
 9    the time and place of the hearing.
10    (Source:  P.A.  88-480;  88-669,  eff. 11-29-94; 89-399, eff.
11    8-20-95.)

12        (35 ILCS 505/1.15 rep.)
13        (35 ILCS 505/3a-1 rep.)
14        (35 ILCS 505/3b rep.)
15        (35 ILCS 505/5b rep.)
16        Section 10.   The  Motor  Fuel  Tax  Law  is  amended  by
17    repealing Sections 1.15, 3a-1, 3b, and 5b.

18        Section 12.  The  Environmental Impact Fee Law is amended
19    by changing Section 315 as follows:

20        (415 ILCS 125/315)
21        (Section scheduled to be repealed on January 1, 2003)
22        Sec.  315.   Fee  on  receivers  of fuel for sale or use;
23    collection and reporting.  A person that is required  to  pay
24    the  fee  imposed  by  this  Law  shall  pay  the  fee to the
25    Department by return showing all fuel purchased, acquired, or
26    received and sold, distributed or used during  the  preceding
27    calendar  month,  including  losses  of fuel as the result of
28    evaporation  or  shrinkage  due  to  temperature  variations.
29    Losses of fuel as the result of evaporation or shrinkage  due
30    to  temperature  variations may not exceed one percent of the
31    total gallons in storage at the beginning of the month,  plus
 
SB1082 Engrossed            -50-               LRB9105921PTdv
 1    the  receipts  of  gallonage  during  the  month,  minus  the
 2    gallonage  remaining in storage at the end of the month.  Any
 3    loss reported that is in  excess  of  this  amount  shall  be
 4    subject to the fee imposed by Section 310 of this Law.
 5        The  return  shall  be  prescribed  by the Department and
 6    shall be filed between the 1st and 20th days of each calendar
 7    month.  The Department may, in its  discretion,  combine  the
 8    return  filed  under  this  Law  with  the return filed under
 9    Section 2b of the Motor Fuel  Tax  Law.   If  the  return  is
10    timely  filed,  the  receiver  may  take  a discount of 2% to
11    reimburse  himself  for  the  expenses  incurred  in  keeping
12    records,  preparing  and  filing  returns,   collecting   and
13    remitting  the  fee,  and supplying data to the Department on
14    request.  However, the 2% discount applies only to the amount
15    of the fee payment that accompanies a return that  is  timely
16    filed in accordance with this Section.
17    (Source: P.A. 89-428, eff. 1-1-96; 89-457, eff. 5-22-96.)

18        Section  15.   The  Illinois  Vehicle  Code is amended by
19    adding Section 11-1419.05 as follows:

20        (625 ILCS 5/11-1419.05 new)
21        Sec. 11-1419.05. A motor carrier  shall  not  operate  or
22    cause  to  be  operated  a  commercial motor vehicle upon the
23    highways of this State with a  revoked  motor  fuel  use  tax
24    license.   Any person who operates a commercial motor vehicle
25    with a revoked motor fuel use tax  license  is  guilty  of  a
26    petty  offense as provided in Section 13a.6 of the Motor Fuel
27    Tax Law. When a commercial  motor  vehicle  is  found  to  be
28    operating  in  Illinois  with  a  revoked  motor fuel use tax
29    license, the vehicle shall be placed out of service  and  not
30    allowed  to  operate in Illinois until the motor fuel use tax
31    license is reinstated.
 
SB1082 Engrossed            -51-               LRB9105921PTdv
 1        Section 99.   Effective  date.   This  Act  takes  effect
 2    January 1, 2000.
 
SB1082 Engrossed            -52-               LRB9105921PTdv
 1                                INDEX
 2               Statutes amended in order of appearance
 3    35 ILCS 505/1.2           from Ch. 120, par. 417.2
 4    35 ILCS 505/1.5           from Ch. 120, par. 417.5
 5    35 ILCS 505/1.13A         from Ch. 120, par. 417.13A
 6    35 ILCS 505 1.13B new
 7    35 ILCS 505/1.14          from Ch. 120, par. 417.14
 8    35 ILCS 505/1.23 new
 9    35 ILCS 505/1.24 new
10    35 ILCS 505/1.25 new
11    35 ILCS 505/1.26 new
12    35 ILCS 505/2             from Ch. 120, par. 418
13    35 ILCS 505/2b            from Ch. 120, par. 418b
14    35 ILCS 505/3             from Ch. 120, par. 419
15    35 ILCS 505/3a            from Ch. 120, par. 419a
16    35 ILCS 505/3c            from Ch. 120, par. 419b.1
17    35 ILCS 505/4c            from Ch. 120, par. 419c
18    N5 ILCS 505/4d new
19    35 ILCS 505/4e new
20    35 ILCS 505/4f new
21    35 ILCS 505/5             from Ch. 120, par. 421
22    35 ILCS 505/5a            from Ch. 120, par. 421a
23    35 ILCS 505/6             from Ch. 120, par. 422
24    35 ILCS 505/6a            from Ch. 120, par. 422a
25    35 ILCS 505/8             from Ch. 120, par. 424
26    35 ILCS 505/11.5          from Ch. 120, par. 427a
27    35 ILCS 505/12            from Ch. 120, par. 428
28    35 ILCS 505/12a           from Ch. 120, par. 428a
29    35 ILCS 505/13            from Ch. 120, par. 429
30    35 ILCS 505/13a.6         from Ch. 120, par. 429a6
31    35 ILCS 505/13a.7         from Ch. 120, par. 429a7
32    35 ILCS 505/15            from Ch. 120, par. 431
33    35 ILCS 505/16            from Ch. 120, par. 432
34    35 ILCS 505/1.15 rep.
 
SB1082 Engrossed            -53-               LRB9105921PTdv
 1    35 ILCS 505/3a-1 rep.
 2    N5 ILCS 505/3b rep.
 3    35 ILCS 505/5b rep.
 4    625 ILCS 5/11-1419.05 new

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