il-v50i43-86-ill-adm-code-500: 86 Ill. Adm. Code 500 — Motor Fuel Tax

1) Heading of the Part: Motor Fuel Tax 2) Code Citation: 86 Ill. Adm. Code 500 3) Section Numbers: Proposed Actions: 500.100 Amendment 500.201 Amendment 500.203 Amendment 500.204 Amendment 500.205 Amendment 500.210 Amendment 500.230 Amendment 500.235 Amendment 500.265 Amendment 500.280 Amendment 500.285 Amendment 500.298 Amendment 4) Statutory Authority: Implementing the Motor Fuel Tax Law [35 ILCS 505] and authorized by Section 2505-20 of the Civil Administrative Code of Illinois (Department of Revenue Law) [20 ILCS 2505]. 5) A Complete Description of the Subjects and Issues Involved: This rulemaking implements Public Act 104-0006 which amended the Motor Fuel Tax Law, 35 ILCS 505/1 et seq., in several ways. The definition of motor fuel was amended to include gaseous substances. The definitions of distributor and receiver were amended by changing the bulk storage capacity from not less than 30,000 gallons to not less than 20,000 gallons for motor fuel. Public Act 104-0006 repealed the definition of supplier, the requirements for a supplier's license, tax collection by suppliers, and filing returns by suppliers. Effective January 1, 2026, Public Act 104-0006 required the Department to convert all valid and unrevoked supplier's licenses and their corresponding receiver's licenses to distributor's licenses and corresponding receiver's licenses. The holders of the converted distributor's licenses are subject to the same provisions and requirements as other licensed distributors under the Motor Fuel Tax Law. This rulemaking also updates outdated statutory language, italicizes statutory language, and inserts legal citations. 6) Published studies or reports, and sources of underlying data, used to compose this rulemaking: None 7) Will this proposed rulemaking replace an emergency rule currently in effect? No 8) Does this rulemaking contain an automatic repeal date? No 9) Do these proposed amendments contain incorporations by reference? No 10) Are there any other proposed rulemakings pending on this Part? No 11) Statement of Statewide Policy Objectives: These rules do not create or enlarge a State mandate as described in Section 3(b) of the State Mandates Act. 12) Time, Place, and Manner in which interested persons may comment on this proposed rulemaking: Persons who wish to submit comments on this proposed rulemaking may submit them in writing by no later than 45 days after publication of this Notice to: Katarzyna Kowalska Associate Counsel Legal Services Office - Sales and Excise Tax Policy Illinois Department of Revenue 101 W. Jefferson St. Springfield, Illinois 62702 (217) 782-7055 REV.GCO@illinois.gov 13) Initial Regulatory Flexibility Analysis: A) Description of the type of small business, not for profit corporations or small municipalities subject to the proposed amendments: Motor fuel distributors and receivers are affected by this rulemaking in that the requirement for operating an Illinois bulk plant where the person has active bulk storage capacity was changed from not less than 30,000 gallons for motor fuel to not less than 20,000 gallons for motor fuel." 35 ILCS 505/1.2 and 35 ILCS 505/1.20. Business entities holding supplier's licenses before January 1, 2026, were subject to the changes mandated by Public Act 104-0006 and consequently this proposed DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS rule amendment. At the end of December 2025, there were 33 business entities holding supplier's licenses. The 33 supplier's licenses were converted to distributor's licenses on January 1, 2026. Prior to January 1, 2026, Section 1.14 of the Motor Fuel Law defined supplier as "any person other than a licensed distributor who (i) transports special fuel into this State; (ii) exports special fuel out of this State; or (iii) engages in the distribution of special fuel primarily by tank car or tank truck, or both, and who operates an Illinois bulk plant where he has active bulk storage capacity of not less than 30,000 gallons for special fuel as defined in Section 1.13 of this Law." 35 ILCS 505/1.14. B) Description of the proposed reporting, bookkeeping and other procedures required for compliance with the amendments: Accounting, completing and filing tax returns, payment of taxes due, utilizing electronic platform to perform these functions. C) Description of the types of professional skills necessary for compliance: Accounting, bookkeeping, sales tax compliance, computer skills. 14) Small Business Economic Impact Analysis: Determine whether the rulemaking has an adverse impact on small business (fewer than 50 full-time employees or less than $4,000,000 in gross annual sales). An adverse impact is one that can be reasonably foreseen on small businesses including, but not limited to, a loss of customers, loss of revenue, or increased business expenses. If the proposed rule amendment has an adverse impact on small business, the agency must provide an economic impact analysis including: A) Types of businesses subject to the proposed amendments: 42 Wholesale Trade; 44-45 Retail Trade; 48-49 Transportation and Warehousing. B) Estimated number of small business subject to the proposed amendments: The Department does not have information to determine how many of the affected licensees are small businesses. At the end of December 2025, there were 346 business entities holding receiver's licenses, 312 business entities holding distributor's licenses, and 33 business entities holding supplier's licenses. The 33 supplier's licenses were converted to distributor's licenses on January 1, 2026. Every supplier and distributor had a receiver's license. Only one business entity that was not a supplier or distributor held a receiver's license. C) Categories that the agency reasonably believes the rulemaking will impact, including: ii. regulatory requirements; viii. record keeping. D) Projected reporting, recordkeeping and other administrative costs for compliance with the proposed amendments: The Department does not possess or has access to data that would allow it to determine compliance costs to the affected businesses. The 33 business entities whose supplier's licenses were converted to distributor's licenses were issued a new license number. Consequently, these 33 business entities had to update their license number in software systems and with their suppliers. The 33 business entities will now have to fulfill the requirements for holding a distributor's license as opposed to the supplier's license. E) Type of professional skills necessary for preparation of any report or record required for compliance with the proposed amendments: Accounting, bookkeeping, sales tax compliance, computer skills. F) Statement of the probable positive or negative economic effect on small business: The repeal of the regulatory requirement of a supplier's license is expected to have a positive impact on businesses. However, the change in the bulk storage capacity from not less than 30,000 gallons to not less than 20,000 gallons for motor fuel in the definitions of distributor and receiver, may subject more business entities to the requirements of the Motor Fuel Tax Law. G) Description of any less intrusive or costly alternative methods of achieving the purposes of the amendments: None 15) Regulatory Agenda on which this rulemaking was summarized: July 2026 16) Any other information or justification for the proposed rule or amendment that the agency believes would be helpful to the public regarding the proposed rule or amendment. For example, a discussion or analysis of the benefits of the proposed rule or amendment is projected to have on the Illinois public, consumers, investors or other similar groups. No additional information. The full text of the Proposed Amendments begins on the next page: DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS TITLE 86: REVENUE CHAPTER I: DEPARTMENT OF REVENUE PART 500 MOTOR FUEL TAX SUBPART A: DEFINITIONS Section 500.100 Definitions 500.101 Definition of Receiver (Repealed) 500.102 Definition of Loss (Repealed) 500.103 Basis and Rate of Tax Payable by Receivers (Recodified) 500.105 Monthly Returns (Recodified) 500.110 Report of Loss of Motor Fuel (Recodified) 500.115 Daily Gallonage Record (Recodified) 500.120 Licenses Are Not Transferable (Recodified) 500.125 Changes of Corporate Officers (Recodified) 500.130 Blenders' Permits Are Not Transferable (Recodified) 500.135 Vehicles of Distributors Transporting Petroleum Products (Recodified) 500.140 Other Vehicles (Recodified) 500.145 Cost of Collection – Determination (Recodified) 500.150 Cost of Collection – Books and Records (Repealed) 500.155 Motor Fuel Consumed by Distributors, Special Fuel Consumed by Suppliers and Fuel Consumed by Receivers (Recodified) 500.160 Claims for Refund – Original Invoices (Recodified) 500.165 Definition of Loss (Recodified) 500.170 Sales of Special Fuel – Variation in Usage (Recodified) 500.175 Special Motor Fuel Permits and Decals (Recodified) 500.180 Estimated Claims Not Acceptable (Recodified) 500.185 Claimants Owning Motor Vehicles (Recodified) 500.190 Detailed Answers (Recodified) 500.195 Revocation of License, Etc. – Notice – Hearing (Recodified) SUBPART B: MOTOR FUEL TAX Section 500.200 Basis and Rate of the Motor Fuel Tax 500.201 Licensure DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS 500.202 Basis and Rate of Tax Payable by Receivers 500.203 Monthly Returns 500.204 Report of Loss of Motor Fuel 500.205 Daily Gallonage Record 500.206 Special Fuel Sold or Used for Non-Highway Purposes 500.210 Documentation of Tax-free Sales of Motor Fuel Made by Licensed Distributors and Suppliers 500.215 Documentation of Tax-free Sales of Fuel Made by Licensed Receivers 500.220 Vehicles of Distributors Transporting Petroleum Products (Repealed) 500.225 Other Vehicles (Repealed) 500.230 Motor Fuel Consumed by Distributors, Special Fuel Consumed by Suppliers and Fuel Consumed by Receivers 500.235 Claims for Refund of Taxes and Motor Fuel Use Tax Decal Fees – Invoices 500.240 Sales of Special Fuel – Variation in Usage (Repealed) 500.245 Estimated Claims 500.250 Claimants Owning Motor Vehicles (Repealed) 500.255 Detailed Answers 500.260 Revocation of License, Etc. – Notice – Hearing 500.265 Distributors' and Suppliers' Claims for Credit or Refund 500.270 Receivers' Claims for Credit 500.275 Procedure When Tax-Paid Motor Fuel is Returned to Licensee for Credit 500.280 Sales of Motor Fuel to Municipal Corporations Owning and Operating Local Transportation Systems 500.285 Sales of Motor Fuel to Certain Privately-Owned Public Utilities Owning and Operating Transportation Systems in Metropolitan Areas 500.290 When Purchaser's License Number With Department on Invoices Covering Sales of Special Fuel is Required (Repealed) 500.295 Cost of Collection – Determination (Repealed) 500.297 Protest Procedures for Certain Penalties 500.298 Civil Penalties for Dyed Diesel Fuel Violations SUBPART C: MOTOR FUEL USE TAX Section 500.300 Licensure – Temporary Waiver upon Determination of Disaster 500.301 Special Motor Fuel Permits and Decals (Repealed) 500.302 Motor Carrier's Quarterly Report (Repealed) 500.305 Licenses and Decals 500.310 Display of License and Decals DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS 500.315 Renewal of Decals and Licenses 500.320 Single Trip Permits 500.325 Licensure of Lessors and Lessees 500.330 Cancellation of License 500.335 Quarterly Payment and Reporting 500.340 Credits and Refunds 500.345 Records Requirements 500.350 Revocation 500.355 IFTA Protest Procedures 500.360 Audits SUBPART D: TIMELY MAILING TREATED AS TIMELY FILING AND PAYING Section 500.400 General Information 500.405 Due Date That Falls on Saturday, Sunday or a Holiday SUBPART E: GENERAL REQUIREMENTS APPLICABLE TO ALL LICENSES AND PERMITS ISSUED UNDER THE MOTOR FUEL TAX LAW Section 500.500 Licenses and Permits Are Not Transferable 500.501 Blenders' Permits Are Not Transferable (Repealed) 500.505 Changes of Corporate Officers SUBPART F: INCORPORATION BY REFERENCE OF RETAILERS' OCCUPATION TAX Section 500.600 Incorporation of the Retailers' Occupation Tax Regulations by Reference AUTHORITY: Implementing the Motor Fuel Tax Law [35 ILCS 505] and authorized by Section 2505-20 of the Civil Administrative Code of Illinois. (Department of Revenue Law) [20 ILCS 2505]. SOURCE: Adopted July 3, 1931; amended at 2 Ill. Reg. 1, p. 97, effective December 31, 1978; amended at 3 Ill. Reg. 13, p. 98, effective March 25, 1979; amended at 4 Ill. Reg. 28, p. 568, effective June 1, 1980; codified at 8 Ill. Reg. 8612; amended at 10 Ill. Reg. 4540, effective February 28, 1986; amended at 11 Ill. Reg. 10295, effective May 18, 1987; emergency amendment at 13 Ill. Reg. 13271, effective August 7, 1989, for a maximum of 150 days; DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS emergency expired January 4, 1990; amended at 14 Ill. Reg. 6826, effective April 19, 1990; amended at 15 Ill. Reg. 6305, effective April 16, 1991; amended at 15 Ill. Reg. 13538, effective August 30, 1991; recodified at 18 Ill. Reg. 4451; amended at 19 Ill. Reg. 3008, effective February 28, 1995; amended at 19 Ill. Reg. 17195, effective December 18, 1995; amended at 20 Ill. Reg. 10168, effective July 16, 1996; amended at 22 Ill. Reg. 2253, effective January 9, 1998; amended at 22 Ill. Reg. 14917, effective August 3, 1998; amended at 22 Ill. Reg. 16322, effective August 25, 1998; amended at 22 Ill. Reg. 20299, effective December 1, 1998; emergency amendment at 24 Ill. Reg. 880, effective January 1, 2000, for a maximum of 150 days; amended at 24 Ill. Reg. 6918, effective April 21, 2000; amended at 24 Ill. Reg. 17826, effective November 28, 2000; amended at 26 Ill. Reg. 9912, effective June 24, 2002; amended at 27 Ill. Reg. 7870, effective April 21, 2003; emergency amendment at 27 Ill. Reg. 10547, effective July 1, 2003, for a maximum of 150 days; emergency expired November 27, 2003; amended at 28 Ill. Reg. 3921, effective February 13, 2004; amended at 32 Ill. Reg. 7134, effective April 21, 2008; amended at 36 Ill. Reg. 6677, effective April 12, 2012; amended at 38 Ill. Reg. 18586, effective August 21, 2014; amended at 39 Ill. Reg. 14728, effective October 23, 2015; amended at 44 Ill. Reg. 3282, effective February 10, 2020; amended at 47 Ill. Reg. 1473, effective January 17, 2023; amended at 47 Ill. Reg. 8887, effective June 6, 2023; amended at 49 Ill. Reg. 3261, effective February 26, 2025; amended at 50 Ill. Reg. ______, effective ____________. SUBPART A: DEFINITIONS Section 500.100 Definitions For purposes of this Part, the following definitions apply: "Base Jurisdiction" means the jurisdiction where commercial motor vehicles are based for vehicle registration purposes and: Where the operational control and operational records of the licensee's commercial motor vehicles are maintained or can be made available; and Where some travel is accrued by commercial motor vehicles within the fleet. See International Fuel Tax Agreement ("IFTA"), Articles of Agreement, Art. II, R212, effective date Jan. 1, 2026. "Blender""Blender" means any person who engages in the practice of blending. [35 ILCS 505/1.6](Section 1.6 of the Law) DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS "Blending""Blending" means the mixing together by any process whatsoever, of any one or more products with other products, and regardless of the original character of the products so blended, provided the resultant product so obtained is suitable or practicable for use as a motor fuel, except such blending as may occur in the process known as refining by the original refiner of crude petroleum, and except, also, the blending of products known as lubricating oil in the production of lubricating oils and greases and except, also, the dyeing of special fuel as required by Section 4d of thethe Law. [35 ILCS 505/1.5](Section 1.5 of the Law) "Commercial Motor Vehicle""Commercial Motor Vehicle" means a motor vehicle used, designed, or maintained for the transportation of persons or property and either having 2 axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,793 kilograms, or having 3 or more axles regardless of weight, or that is used in combination, when the weight of the combination exceeds 26,000 pounds or 11,793 kilograms gross vehicle weight or registered gross vehicle weight. For purposes of administration of the Motor Fuel Use Tax imposed by Section 13a of the Law, this term does not include motor vehicles operated by the State of Illinois or the United States, recreational vehicles, school buses and commercial motor vehicles operated solely within Illinois for which all motor fuel is purchased within the State of Illinoismotor vehicles operated by the State of Illinois or the United States, recreational vehicles, school buses and commercial motor vehicles operated solely within Illinois for which all motor fuel is purchased within this State. [35 ILCS 505/1.16](Section 1.16 of the Law) EXAMPLE 1: Weight of the combination exceeds 26,000 pounds gross vehicle weight. If a truck used in combination with a trailer is weighed at a weigh station and the combined weight exceeds 26,000 pounds, then that truck and trailer combination meets the definition of "commercial motor vehicle" subject to the IFTA licensing requirements. Failure to meet those requirements will result in imposition of the penalties in Section 13a.6 of the Law. EXAMPLE 2: Weight of the combination exceeds 26,000 pounds registered gross vehicle weight. If a truck used in combination with a trailer is weighed at a weigh station and the combined weight is 25,000 pounds, but the registered gross vehicle weight of the truck (based on the truck's registration documents) is 19,500 pounds and the registered gross DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS vehicle weight of the trailer (based on the trailer's registration documents) is 8,000 pounds, for a combined registered gross vehicle weight of 27,500 pounds, then that truck and trailer combination meets the definition of "commercial motor vehicle" subject to the IFTA licensing requirements. Failure to meet those requirements will result in imposition of the penalties in Section 13a.6 of the Law. "Designated inspection site""Designated inspection site" means any State highway inspection station, weigh station, agricultural inspection station, mobile station, or other location designated by the Department to be used as a fuel inspection site. A designated inspection site will be identified as a fuel inspection site. [35 ILCS 505/1.26](Section 1.26 of the Law) "Diesel fuel""Diesel fuel" means any product intended for use or offered for sale as a fuel for engines in which the fuel is injected into the combustion chamber and ignited by pressure without electric spark. [35 ILCS 505/2(b)](Section 2(b) of the Law) "Diesel gallon equivalent" or "DGE" or "DGE" means an amount of liquefied natural gas (LNG) or propane that has the equivalent energy content of a gallon of diesel fuel and shall beis defined as 6.06 pounds of liquefied natural gas or 6.41 pounds of propane. [35 ILCS 505/1.8A](Section 1.8A of the Law) "Distributor" means a person who does any of the following: who: produces motor fuel in this State;, refines motor fuel in this State;, blends motor fuel in this State;, compounds motor fuel in this State;or manufactures motor fuel in this State; or transports motor fuel into this State; or DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS exports motor fuel out of this State; or distributesis engaged in this State in the distribution of motor fuel primarily by tank car or tank truck, or both; and who operates an Illinois bulk plant where the personhe or she has active bulk storage capacity of not less than 20,00030,000 gallons for motor fuelgasoline as defined in Section 5(A) of the Law. [35 ILCS 505/1.2](Section 1.2 of the Law) "Dyed diesel fuel""Dyed diesel fuel" means special fuel, as defined in Section 1.13 of thethe Law, dyed in accordance with Section 4d of thethe Law. [35 ILCS 505/1.13B](Section 1.13B of the Law) "Export" means the transportation of reportable motor fuel or fuel, by any vessel, from Illinois, when the motor fuel or fuel comes to rest in a different state, whether or not in the original vessel used to transport the motor fuel or fuel. Motor fuel or fuel delivered to a different state, by or on behalf of the seller, constitutes an export by the seller. Motor fuel or fuel delivered to a different state, by or on behalf of the purchaser, constitutes an export by the purchaser. The exporter of the motor fuel or fuel is subject to the reporting and licensing requirements of the origin and destination states. "Fuel" means"Fuel" means all liquids defined as "motor fuel" in Section 1.1 of the Law and aviation fuels and kerosene, but excluding liquified petroleum gasesand aviation fuels and kerosene, but excluding liquified petroleum gases. [35 ILCS 505/1.19](Section 1.19 of the Law) "Gallon" means, in addition to its ordinary meaning, its equivalent in a capacity of measurement of substance in a gaseous state (Section 1.8 of the Law). For purposes of this Part, a gallon is equal to a liquid measurement of 4 quarts or 3.785 liters. On and after July 1, 2017, in the case of liquefied natural gas or propane used as a motor fuel, "gallon" means a diesel gallon equivalent as defined byin Section 1.8A of thethe Law. In the case of compressed natural gas (CNG) used as motor fuel, "gallon" means a gasoline gallon equivalent as defined in Section 1.8B of thethe Law. [35 ILCS 505/1.8](Section 1.8 of the Law) "Gasoline gallon equivalent" or "GGE" or "GGE" means an amount of compressed natural gas that has the equivalent energy content of a gallon of DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS gasoline and shall beis defined as 5.660 pounds of compressed natural gas. [35 ILCS 505/1.8B](Section 1.8B of the Law) "Import" means the transportation of reportable motor fuel or fuel, by any vessel, into Illinois, when the motor fuel or fuel comes to rest in Illinois, whether or not in the original vessel used to transport the motor fuel or fuel. Motor fuel or fuel delivered into Illinois, from a different state, by or on behalf of the seller, constitutes an import by the seller. Motor fuel or fuel delivered into Illinois, from a different state, by or on behalf of the purchaser, constitutes an import by the purchaser. The importer of the motor fuel or fuel is subject to the reporting and licensing requirements of the origin and destination states. "International Fuel Tax Agreement" or "IFTA" means the multijurisdictional International Fuel Tax Agreement ratified by Congress, the provisions of which were imposed upon States pursuant to Public Law 102-240, which mandates that no State shall establish, maintain or enforce any law or regulation that has fuel use tax reporting requirements not in conformity with the International Fuel Tax Agreement. See 49 U.S.C. 31701(3), 31705(a). "Jurisdiction" is a state of the United States, the District of Columbia, a state of the United Mexican States, or a province or Territory of Canada. [35 ILCS 505/1.22]"Jurisdiction" is a state of the United States, the District of Columbia, a state of the United Mexican States, or a province or Territory of Canada. "Kerosene-type jet fuel""Kerosene-type jet fuel" means any jet fuel as described in ASTM specification D 1655 and military specifications MIL-T-5624R and MIL- T-83133D (Grades JP-5 and JP-8). [35 ILCS 505/1.25](Section 1.25 of the Law) "Law" means the Motor Fuel Tax Law [35 ILCS 505]. "Leasing" means the giving of possession and control of a vehicle for valuable consideration for a specified period of time. "Liquefied natural gas" or "LNG" means methane or natural gas in the form of a cryogenic or refrigerated liquid for use as a motor fuel. [35 ILCS 505/1.13C](Section 1.13C of the Law) "Loss" means, for purposes related to claims for refund, the reduction of motor fuel resulting from spillage, spoilage, leakage, theft, destruction by fire or any DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS other provable cause, but does not include a reduction resulting from evaporation or shrinkage due to temperature variations. "Motor Fuel" "Motor fuel" means all volatile and inflammable substances (whether in liquid or gaseous form) that areliquids produced, blended or compounded for the purpose of, or thatwhich are suitable or practicable for, operatingthe propulsion of motor vehicles. Among other things, "Motor Fuelmotor fuel" includes "Special Fuelspecial fuel." as defined in Section 1.13 of the Law. [35 ILCS 505/1.1](Section 1.1 of the Law) The types of motor fuel referred to in Section 5 of the Law are: (A) All products commonly or commercially known or sold as gasoline (including casing-head and absorption or natural gasoline), gasohol, motor benzol or motor benzene regardless of their classification or uses; and (B) all combustible gases, not including liquefied natural gas, which exist in a gaseous state at 60 degrees Fahrenheit and at 14.7 pounds per square inch absolute including, but not limited to, liquefied petroleum gases used for highway purposes; and (C) special fuel. [35 ILCS 505/5]"Motor fuel" also includes all combustible gases that exist in a gaseous state at 60 degrees Fahrenheit and at 14.7 pounds per square inch absolute that are used in motor vehicles operating on the public highways and recreational type watercraft operating upon the waters of this State. (Section 5 of the Law) These gases include, but are not limited to, propane (liquefied petroleum gas (LPG)), CNG and LNG. "Person""Person" means any natural individual, firm, trust, estate, partnership, association, joint stock company, joint venture, corporation, limited liability company, or a receiver, trustee, guardian, or other representative appointed by order of any court, or any city, town, county or other political subdivision in this State. When used in any Section of the Law or in this Partin these rules to prescribe or impose a fine or imprisonment or both, the term "person" as applied to partnerships and associations shall mean the partners or members thereof; as applied to limited liability companies, the term "person" means managers, members, agents or employees of the limited liability company; and as applied to corporations, the term "person" shall mean the officers, agents, or employees thereof who are responsible for any violation of the Lawthe Act. [35 ILCS 505/1.11](Section 1.11 of the Law) "Power take-off equipment""Power take-off equipment" means any accessory that is mounted onto or designed as an integral part of a transmission of a motor vehicle that is registered for highway purposes whereby the accessory allows DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS power to be transferred outside the transmission to a shaft or driveline and the power is used for a purpose other than propelling the motor vehicle. [35 ILCS 505/1.27](Section 1.27 of the Law) "Premises""Premises" means any location where original records are kept; where tank cars, ships, barges, tank trucks, tank wagons, or other types of transportation equipment are used to distribute fuel or motor fuel; or where containers, storage tanks, or other facilities are used to store or distribute fuel or motor fuel. [35 ILCS 505/1.24](Section 1.24 of the Law) "Receiver" means a person who does any of the following:either produces, refines, blends, compounds or manufactures fuel in this State;, or transports fuel into this State; or receives fuel transported to ithim or her from without the State; or exports fuel out of this State;, or distributes who is engaged in the distribution of fuel primarily by tank car or tank truck, or both, and who operates an Illinois bulk plant where the person he or she has active fuel bulk storage capacity of not less than 20,00030,000 gallons. [35 ILCS 505/1.20](Section 1.20 of the Law) "Records" means all data maintained by the taxpayer, including data on paper, microfilm, microfiche or any type of machine-sensible data compilation. "Recreational vehicle" means vehicles, such as motor homes, pickup trucks with attached campers, camping or travel trailers, van or truck campers, mini motor homes, or buses, used exclusively for personal pleasure by an individual. In order to qualify as a recreational vehicle, the vehicle shall not be used in connection with any business endeavor. See IFTA Articles of Agreement, Art. II, R249, effective date Jan. 1, 2026. "Research and development""Research and development" means basic and applied research in the engineering, designing, development, or testing of DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS prototypes or new products. "Research and development" does not include manufacturing quality control, any product testing by consumers, market research, sales promotion, sales service, or other non-technological activities or technical services. [35 ILCS 505/1.29](Section 1.29 of the Law) "Revocation" means the withdrawal of license and privileges. See IFTA Articles of Agreement, Art. II, R257, effective date Jan. 1, 2026. "Semitrailer""Semitrailer" means every vehicle without motive power, other than a pole trailer, designed for carrying persons or property and for being drawn by a motor vehicle and so constructed that some part of its weight and that of its load rests upon or is carried by another vehicle. [35 ILCS 505/1.28](Section 1.28 of the Law) "Special Fuel" means"Special fuel" means all volatile and inflammable liquids capable of being used for the generation of power in an internal combustion engine except that it does not include gasoline as defined in Section 5, example (A) of the Law, or combustible gases as defined in Section 5, example (B) of the Law. "Special Fuelfuel" includes "diesel fuel." as defined in paragraph (b) of Section 2 of the Law. [35 ILCS 505/1.13] All special fuel sold or used for non- highway purposes must have a dye added in accordance with Section 4d of the Law. [35 ILCS 505/5, 6](Section 1.13 of the Law) "Supplier" means any person other than a licensed distributor who (i) transports special fuel into this State; or (ii) exports special fuel out of this State; or (iii) engages in the distribution of special fuel primarily by tank car or tank truck, or both, and who operates an Illinois bulk plant where he or she has active bulk storage capacity of not less than 30,000 gallons for special fuel as defined in Section 1.13 of the Law. (Section 1.14 of the Law) "Terminal rack""Terminal rack" means a mechanism for dispensing motor fuel or fuel from refinery, terminal, or bulk plant into a transport truck, railroad tank car, or other means of transportation. [35 ILCS 505/1.23](Section 1.23 of the Law) "Total distance" for purposes of the motor fuel use tax means all miles traveled during the reporting period by every commercial motor vehicle in the licensee's fleet, regardless of whether the miles are considered taxable or nontaxable by a jurisdiction. See IFTA Articles of Agreement, Art. II, R266, effective date Jan. 1, DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS 2026. "Weight", for purposes of the motor fuel use tax, means the greater of the actual weight of the loaded vehicle or combination of vehicles or the registered gross vehicle weight of the loaded vehicle or combination of vehicles, as registered with the Illinois Secretary of State or appropriate registration agency of another IFTA jurisdiction. See IFTA Articles of Agreement, Art. II, R269, effective date Jan. 1, 2026. (Source: Amended at 50 Ill. Reg. ______, effective ____________) SUBPART B: MOTOR FUEL TAX Section 500.201 Licensure a) Distributor's License. No person shall act as a distributor of motor fuel within this State, supplier, or receiver in Illinois without first securingapplying for and obtaining a license to act as a distributor of motor fuel from the Department. 1) The application shall be signed and verified by the applicantby the applicant, and shall contain such information asrequired by the Department deems necessary. [35 ILCS 505/3] 2) The applicant for a distributor's license shall also file, with the Department, a bond on a form to be approved by and with a surety or sureties satisfactory to the Department, conditioned upon such applicant paying to the State of Illinois all monies becoming due by reason of the sale, export, or use of special fuel by the applicant, together with all penalties and interest thereon. [35 ILCS 505/3] 3) A license shall not be granted to any person seeking a distributor's license whose principal place of business is in a state other than Illinois, unless such person is licensed for motor fuel distribution or export in the state in which the principal place of business is located and that other state requires such license and that such person is not in default to that State for any monies due for the sale, distribution, export or use of motor fuel. [35 ILCS 505/3(b)] Applicants whose principal place of business is outside of Illinois and who are not required to be licensed by the state in which their principal place of business is located will not be granted any license, nor DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS will any license be maintained, if they are in default to that state for any monies due for the use of motor fuel. 4) No person who is in default to the State for monies due under the Law for the sale, distribution, export, or use of motor fuel shall receive a license to act as a distributor. [35 ILCS 505/3] b) Receiver's License. No person shall act as a receiver of fuel within this State without first securing a license from the Department to act as a receiver of fuel. [35 ILCS 505/3c] 1) The application shall be signed and verified by the applicant, and shall contain such information as the Department deems necessary. [35 ILCS 505/3c] 2) The applicant for a receiver's license shall also file with the Department a bond on a form to be approved by and with a surety or sureties satisfactory to the Department conditioned upon such applicant paying to the State of Illinois all monies becoming due by reason of the receipt of fuel by the applicant, together with all penalties and interest thereon. [35 ILCS 505/3c] 3) No person who is in default to the State for monies due under the Law for the receipt, sale, distribution or use of fuel or motor fuel shall receive a license either directly or indirectly to act as a receiver. [35 ILCS 505/3c] c) Blender's Permit. A blender shall, in addition to securing a distributor's license, make application to the Department for a blender's permit, setting forth in the application such information as the Department deems necessary. [35 ILCS 505/3] d) All applicationsApplications must be signed by, and contain the home address of, each officer, partner or owner of the entity seeking licensure. In the case of a corporate applicant, the application shall be signed by at least one corporate officer and shall contain the home address and Social Security Number of all corporate officers. In the case of a Limited Liability Company, the application shall be signed by at least one member or manager and shall contain the home address and Social Security Number of all managers and members. Applications may not be signed by reporting services or other persons responsible for reporting DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS a licensee's tax obligations under a power of attorney, notwithstanding a properly executed power of attorney. The application shall also contain an acceptance of responsibility signed by the person or persons who will be responsible for filing returns and payment of taxes due under the law. No license shall be granted unless the application contains the name and home address of the person or persons who will be responsible for filing returns and payment of taxes due under the Law. An applicant shall also file with the Department a bond on a form to be approved by and with a surety or sureties satisfactory to the Department. e) The Department may refuse to issue, reissue, or renew a certificate of registration, permit, or license authorized to be issued by the Department if a person who is named as the owner, a partner, a corporate officer, or, in the case of a limited liability company, a manager or member, of the applicant on the application for the certificate of registration, permit or license, is or has been named as the owner, a partner, a corporate officer, or in the case of a limited liability company, a manager or member, on the application for the certificate of registration, permit, or license of a person that: 1) is in default for moneys due under the tax or fee Act upon which the certificate of registration, permit, or license is required or any other tax or fee Act administered by the Department, or 2) fails to file any return, on or before the due date prescribed for filing that return (including any extensions of time granted by the Department), that the person is required to file under the tax or fee Act upon which the certificate of registration, permit, or license is required or any other tax or fee Act administered by the Department. f) In determining whether a person is in default for moneys due, the Department shall include only amounts established as a final liability within the 23 years prior to the date of the Department's notice of refusal to issue or reissue the certificate of registration, permit, or license. "Person" means any natural individual, firm, partnership, association, joint stock company, joint adventure, public or private corporation, limited liability company, or a receiver, executor, trustee, guardian or other representative appointed by order of any court. [20 ILCS 2505/2505-380] b) A license shall not be granted, nor shall any license be maintained, for any supplier or distributor whose principal place of business is in a state other than Illinois, unless such person is licensed for motor fuel distribution or export in the state in which the principal place of business is located and such person is not in default to that state for any monies due for the sale, distribution, export or use of motor fuel. (Section 3, 3a, 3b and 3c of the Law) Applicants whose principal place of business is outside of Illinois and who are not required to be licensed by the state in which their principal place of business is located shall not be granted any license, nor shall any license be maintained, if they are in default to that state for any monies due for the use of motor fuel. c) A license shall not be issued to any person who fails to file a return, or to pay the tax, penalty or interest for a filed return, or to pay any final assessment of tax, penalty or interest, as required by the Law, or as required by any other tax Act administered by the Department. [20 ILCS 2505/39b47] (Source: Amended at 50 Ill. Reg. ______, effective ____________) Section 500.203 Monthly Returns a) Distributor, supplier, and receiver monthly returns. Monthly Motor Fuel Tax returns of licensed distributors, suppliers, and receivers must be compiled correctly on forms furnished by the Department and must be filed, accompanied th by a remittance for the correct amount of tax due, by the 20 day of the month following the month for which the return is made. Receipt schedules showing monthly receipts of motor fuel must always accompany the monthly return, as well as all other applicable schedules. On and after January 1, 2016, original returns and payment of tax shall be made electronically in accordance with rules established at 86 Ill. Adm. Code 750 and 760. Amended returns, however, are required to be filed electronically only for those periods, as provided in this subsection, for which original returns are electronically required. All other amended returns must be filed on a paper return. 1) Distributors of motor fuel shall file returns with the Department between the 1 and 20 days of each calendar month, showing: A) an itemized statement of the number of invoiced gallons of motor fuel of the types specified in Section 5 of the Motor Fuel Law which were: DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS i) purchased, acquired, or received during the preceding calendar month; ii) produced, refined, compounded, manufactured, or blended during the preceding calendar month; iii) sold, distributed, exported, or used by the licensed distributor during the preceding calendar month; iv) lost or destroyed during the preceding calendar month; and v) on hand at the close of business for the preceding calendar month; and B) such other reasonable information as the Department may require. [35 ILCS 505/5] 2) Suppliers of special fuel shall file returns with the Department between the st th 1 and 20 of each calendar month, showing: A) an itemized statement of the number of invoiced gallons of special fuel: i) acquired, received, or purchased during the preceding calendar month; ii) sold, distributed, exported, and used by the licensed supplier during the preceding calendar month; iii) lost or destroyed during the preceding calendar month; and iv) on hand at the close of business for the preceding calendar month; and B) such other reasonable information as the Department may require. [35 ILCS 505/5a] 23) Receivers required to pay the tax imposed by Section 2a of the Motor Fuel Tax Law (known as the "Underground Storage Tank Tax") shall file DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS returns with the Department between the 1 and 20 of each calendar month. showing: A) These returns must show: i) all fuel purchased, acquired, or received and sold, distributed, or used during the preceding calendar month including losses of fuel as the result of evaporation or shrinkage due to temperature variations, and ii) such other reasonable information as the Department may require. [35 ILCS 505/2b] B) The Department may, in its discretion, combine the return filed under the Environmental Impact Fee Law with the return filed under Section 2b of the Motor Fuel Tax Law. [415 ILCS 125/315]such other reasonable information as the Department may require. [35 ILCS 505/2b] b) If a distributor's only activities with respect to motor fuel are either production of alcohol in quantities of less than 10,000 proof gallons per year or blending alcohol in quantities of less than 10,000 proof gallons per year that the distributor has produced, the distributor shall file returns on an annual basis with the return for a given year being due by January 20 of the following year. Distributors whose total production of alcohol (whether blended or not) exceeds 10,000 proof gallons per year, based on production during the preceding (calendar) year or as reasonably projected by the Department if one calendar year's record of st th production cannot be established, shall file returns between the 1 and 20 days of each calendar month as provided in subsection (a). [35 ILCS 505/5] Original returns and payment of tax made under this subsection (b) may be made electronically beginning January 1, 2016. Amended returns, however, may only be filed electronically for those periods, as provided in this subsection, for which original returns may be filed electronically. All other amended returns must be filed on a paper return. c) Reporting and payment requirements for persons who produce biodiesel fuel or biodiesel blends for self-use. 1) Beginning July 1, 2007, notwithstanding any other reporting provisions of the Law, if a private biodiesel fuel producer's total gallonage that is taxable under Sections 2 and 2a of the Law and Section 310 of the Environmental Impact Fee Law [415 ILCS 125/310] is less than 5,000 gallons per year, then the producer must file returns and make payment of the tax imposed by Sections 2 and 2a of the Law and the fee imposed under Section 310 of the Environmental Impact Fee Law [415 ILCS 125/310] on an annual basis. The returns and payment of tax for a given year are due by January 20 of the following year. [35 ILCS 505/2d(a)] Original returns and payment of tax made under this subsection (c)(1) may be made electronically beginning January 1, 2016. Amended returns, however, may only be filed electronically for those periods, as provided in this subsection (c)(1), for which original returns may be filed electronically. All other amended returns must be filed on a paper return. 2) If a private biodiesel fuel producer's total gallonage that is taxable under Sections 2 and 2a of the Law and Section 310 of the Environmental Impact Fee Law [415 ILCS 125/310] for biodiesel and biodiesel fuel blends is 5,000 or more gallons per year, then the producer must file returns and make payment of the tax imposed by Sections 2 and 2a of the Law and Section 310 of the Environmental Impact Fee Law [415 ILCS 125/310] on a monthly basis. The returns and payment of tax are due between the 1 and 20 days of each calendar month for the preceding calendar month. [35 ILCS 505/2d(b)] Original returns and payment of tax made under this subsection (c)(2) shall be made electronically beginning January 1, 2016. Amended returns, however, are required to be filed electronically for only those periods, as provided in this subsection (c)(2), for which original returns are electronically required. All other amended returns must be filed on a paper return. However, upon petition by a taxpayer, the Department may waive the electronic filing and payment requirement if the taxpayer demonstrates that it does not have the ability to file electronically. 3) Except for persons required to be licensed under Section 13a.4 of the Law, a person who is subject to the provisions of Section 2(d) of the Law as reflected in this subsection (c) is exempt from all bonding and licensure requirements otherwise imposed under the Law. Each person who is subject to the provisions of Section 2(d) of the Law as reflected in this DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS subsection (c)this Section must keep records as required by Section 12 of the Law. [35 ILCS 505/2d(c)] 4) For purposes of this subsection (c): "Biodiesel blend" has the meaning set forth under Section 3-42 of the Use Tax Act [35 ILCS 105/3-42]. "Biodiesel fuel" has the meaning set forth under Section 3-41 of the Use Tax Act [35 ILCS 105/3-41]. "Biomass materials" has the meaning set forth under Section 3-43 of the Use Tax Act [35 ILCS 105/3-43]. "Private biodiesel fuel producer" means a person whose only activities with respect to motor fuel are: the conversion of any biomass materials into biodiesel fuel, which that is produced exclusively for personal use and not for sale; or the blending of biodiesel fuel, resulting in biodiesel blends, which that is produced exclusively for personal use and not for sale. [35 ILCS 505/2d(d)] d) Support Data. On and after January 1, 2016, all support schedules for original returns and amended returns shall be filed electronically as required by Ill. Adm. Code, Title 86, Part 760. e) When returns are timely filed in the manner required by this Section, a supplier, distributor, or receiver may take a discount of 1.75% of the tax collected as reimbursement for the expenses incurred in keeping records, preparing and filing returns, collecting and remitting the tax, and supplying data to the Department on requestfor the expenses incurred in keeping records, preparing and filing returns, collecting and remitting the tax, and supplying data to the Department on request. [35 ILCS 505/2(b), 6] This discount is not permitted for motor fuels that are used or consumed by a supplier or distributor in itstheir own vehicles or for any other purpose. The discount, however, shall be applicable only to the amount of payment which accompanies a return that is filed timely in accordance withThe discount, however, shall be applicable only to the amount of payment which DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS accompanies a return that is filed timely in accordance with Sections 2b or, 5, or 5a of the Law and the provisions of this Section. [35 ILCS 505/2(b), 6] Returns that are required to be filed electronically pursuant to this Section but are not filed electronically shall be considered nonfiled and the discount shall be disallowed. f) A person whose license to act as a supplier, distributor, or receiver of motor fuel has been revoked or cancelled shall make a return and payment to the Department covering the period from the date of the last return to the date of the revocation of the license, which return shall be delivered to the Department not later than 10 days from the date of the revocation or termination of the license. The return and payment of tax must be made electronically as provided in this Section. Tax on any inventory remaining at the close of the reporting period must be paid in full. (Source: Amended at 50 Ill. Reg. ______, effective ____________) Section 500.204 Report of Loss of Motor Fuel a) All licensed distributorsAll licensed suppliers, distributors, and receivers shall report all losses of motor fuel sustained by them on account of fire, theft, spillage, spoilage, leakage or any other provable cause when filing the return for the period during which the loss occurredare required to report all losses of motor fuel sustained by them on account of fire, theft, spillage, spoilage, leakage or any other provable cause when filing the return for the period during which the loss occurred in order that the Department may make such investigation as it may deem necessary. [35 ILCS 505/5] b) The mere making of such a report does not assure the allowance of the loss as a credit on account of tax liabilityThe mere making of such a report does not assure the allowance of the loss as a credit on account of tax liability with respect to the loss, but failure to report the losses promptly may result in the refusal of the Department to allow credit on account of tax liability with respect to a loss. [35 ILCS 505/5] c) Receiver's monthly return. On and after July 1, 2001, for each 6-month period January through June, net losses of fuel (for each category of fuel that is required to be reported on a return) as the result of evaporation or shrinkage due to temperature variations may not exceed 1% of the total gallons in storage at the beginning of each January, plus the receipts of gallonage each January through June, minus the gallonage remaining in storage at the end of each June. On and DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS after July 1, 2001, for each 6-month period July through December, net losses of fuel (for each category of fuel that is required to be reported on a return) as the result of evaporation or shrinkage due to temperature variations may not exceed 1% of the total gallons in storage at the beginning of each July, plus the receipts of gallonage each July through December, minus the gallonage remaining in storage at the end of each December. Any net loss reported that is in excess of this amount shall be subject to the tax imposed by Section 2 or 2a of the Law and the fee imposed by Section 310 of the Environmental Impact Fee Law. For purposes of this Section, "netNet loss" means the number of gallons gained through temperature variations minus the number of gallons lost through temperature variations or evaporation for each of the respective 6-month periods. [35 ILCS 505/2(b)] Also, any net loss reported that is in excess of this 1% amount shall be subject to the fee imposed by Section 310 of the Environmental Impact Fee Law. [415 ILCS 125/315](Sections 2b, 5, and 5a of the Law) d) Distributor's monthly return. On and after July 1, 2001, for each 6-month period January through June, net losses of motor fuel (for each category of motor fuel that is required to be reported on a return) as the result of evaporation or shrinkage due to temperature variations may not exceed 1% of the total gallons in storage at the beginning of each January, plus the receipts of gallonage each January through June, minus the gallonage remaining in storage at the end of each June. On and after July 1, 2001, for each 6-month period July through December, net losses of motor fuel (for each category of motor fuel that is required to be reported on a return) as the result of evaporation or shrinkage due to temperature variations may not exceed 1% of the total gallons in storage at the beginning of each July, plus the receipts of gallonage each July through December, minus the gallonage remaining in storage at the end of each December. Any net loss reported that is in excess of this amount shall be subject to the tax imposed by Section 2 of the Law. For purposes of this Section, "net loss" means the number of gallons gained through temperature variations minus the number of gallons lost through temperature variations or evaporation for each of the respective 6-month periods. [35 ILCS 505/5] ed) If the distributor reports losses due to fire or theft, then the distributor must include fire department or police department reports and any other documentation that the Department may requireDistributors or suppliers reporting loss due to fire or theft must include fire department or police department reports with their returns. [35 ILCS 505/5] DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS (Source: Amended at 50 Ill. Reg. ______, effective ____________) Section 500.205 Daily Gallonage Record Distributors and, receivers, and suppliers are required to maintain an accurate, actual, daily record of gallonage in storage facilities. Detailed records of all gallonage delivered into storage facilities must be made available to authorized Department employees and must contain the following information: a) date of delivery; b) invoice number; c) manifest/bill of lading number; d) location of receipt; e) seller's name and address; f) fuel type; and g) pipeline batch number, if delivered by pipeline. Carelessness in not keeping such records is frequently the means of building false inventories. The burden is also upon the distributor, supplier, or receiver to see to it that the valves on bulk plants function properly. This will have a tendency to eliminate substantial losses under various climatic conditions. (Source: Amended at 50 Ill. Reg. ______, effective ____________) Section 500.210 Documentation of Tax-free Sales of Motor Fuel Made by Licensed Distributors and Suppliers A distributor may make tax free sales of motor fuel, with respect to which the distributor is otherwise required to collect tax, only as specified in subsections (a) through (i). [35 ILCS 505/6)] a) Sale of motor fuel are made to a person holding a valid unrevoked license as a distributor by making a specific notation thereof on invoices or sales slip covering DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS each sale. [35 ILCS 505/6(1)] The seller must retain the amount sold and the name, address and license number of the purchasing distributor. [35 ILCS 505/5(1)] Also, the seller must retain the invoice number and date, name of carrier, bill of lading/manifest number, Illinois origin, Illinois destination, purchaser's license number.A distributor or supplier may make tax free sales of motor fuel, with respect to which the distributor or supplier is otherwise required to collect tax, only as specified in subsections (b) through (i). b) Sales of motor fuel are made with delivery to a purchaser outside of this State. [35 ILCS 505/6(2)]Sales of motor fuel delivered to points outside Illinois. The seller must retain the invoice date and number, name of carrier, bill of lading/manifest number, name and address of purchaserpurchaser's name and address, Illinois origin, point of deliverydestination location, date and amount deliveredinvoiced gallons. [35 ILCS 505/5(2)] c) Sales of motor fuel made to the Federal Government or its instrumentalitiesto the federal government or its instrumentalities. [35 ILCS 505/6(3)] The seller shall retain the invoice number and date, name of carrier, bill of lading/manifest number, name of purchaser, Illinois origin, Illinois destination, and amount soldinvoiced gallons. [35 ILCS 505/5(3)] d) Sales of motor fuel made to a municipal corporation owning and operating a local transportation system for public service in this State. [35 ILCS 505/5(4)]to a municipal corporation owning and operating a local transportation system for public service in Illinois. The seller shall retain the invoice date and number, name of carrier, bill of lading/manifest number, name and address of purchasername and address of purchaser, Illinois origin, Illinois destination and amount sold, as evidenced by official forms of exemption certificates properly executed and furnished by such purchaserinvoiced gallons. [35 ILCS 505/5(4)] FurtherIn addition, the seller shall include with the seller's return a Certificate of Exemption, in the form required by Section 500.280 of this Part, for each sale. e) Sales of motor fuel made to a privately owned public utility owning and operating 2-axle vehicles designed and used for transporting more than 7 passengers, which vehicles are used as common carriers in general transportation of passengers, are not devoted to any specialized purpose and are operated entirely within the territorial limits of a single municipality or of any group of contiguous municipalities or in a close radius thereof, and the operations of which are subject to the regulations of the Illinois Commerce Commissionto a privately DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS owned public utility owning and operating 2-axle vehicles designed and used for transporting more than 7 passengers, for the operation of vehicles that are used as common carriers in general transportation of passengers, are not devoted to any specialized purpose and are operated entirely within the territorial limits of a single municipality or any group of municipalities or in a close radius thereof, and the operations of which are subject to the regulations of the Illinois Commerce Commission. [35 ILCS 505/5(5), 505/6(5)] The seller shall retain the invoice date and number, name of carrier, bill of lading/manifest number, name and address of such purchasername and address of purchaser, Illinois origin, Illinois destination and amount sold as evidenced by official forms of exemption certificates properly executed and furnished by the purchaserinvoiced gallons. [35 ILCS 505/5(5)] FurtherIn addition, the seller shall include with the seller's return a Certificate of Exemption, in the form required by Section 500.285 of this Part, for each sale. f) Except as provided in Section 2a of the Law, the collection of a tax based on gallonage of gasoline used for the propulsion of any aircraft is prohibited on and after October 1, 1979, and the collection of a tax based on gallonage of special fuel used for the propulsion of any aircraft is prohibited on and after December 1, 2019. 35 ILCS 505/2(d)Sales of gasoline for aviation purposes. A Seller shall retain the invoice date and number, name of carrier, bill of lading/manifest number, name of purchaser, Illinois origin, Illinois destination, and invoiced gallons. The seller must also include a "Certificate of Gasoline or Special FuelGas Sold For Propulsion of Aircraft" with the seller's return to document this type of exemption. g) Sale of special fuel is made to someone other than a licensed distributor for a use other than in motor vehicles, by making a specific notation thereof on the invoice or sales slip covering such sales and obtaining such supporting documentation as may be required by the Department. [35 ILCS 505/5(6)]Sales to end users who are not licensed distributors or suppliers. 1) Sale of dyed diesel fuel is made by the licensed distributor to the end user of the fuel who is not a licensed distributor or a licensed supplier for non- highway purposes, andSales of dyed fuel sold by licensed distributors or suppliers to end users of the fuel who are not licensed distributors or licensed suppliers may be made tax free for non-highway purposes only when: DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS A) TheThe fuel is delivered from a vehicle designed for the specific purpose of such sales and delivered directly into a stationary bulk storage tank that displays the notice required by Section 4f of the Lawof the Act; or B) TheThe fuel is delivered from a vehicle designed for the specific purpose of such sales and delivered directly into the fuel supply tanks of non-highway vehicles that are not required to be registered for highway use; or C) TheThe fuel is dispensed from a dyed diesel fuel dispensing facility that has withdrawal facilities that are not readily accessible to and are not capable of dispensing dyed diesel fuel into the fuel supply tank of a motor vehicle. [35 ILCS 505/6(7)] 2) For purposes of this subsection (g), a dyed diesel fuel dispensing facility is considered to have withdrawal facilities that are "not readily accessible to, and not capable of dispensing dyed diesel fuel into, the fuel supply tank of a motor vehicle" only ifwhen the dyed diesel fuel is delivered from: A) AA dispenser hose that is short enough that it will not reach the fuel supply tank of a motor vehicle; or B) AA dispenser that is enclosed by a fence or other physical barrier so that a vehicle cannot pull alongside the dispenser to permit fueling. [35 ILCS 505/6(7)](Section 6 of the Law) 3) For each sale of dyed diesel fuel described in this subsection (g), a specific notation is required on the invoice or sales slip covering such sales, and any supporting documentation that may be required by the Department must be obtained by the distributor. The distributor shall obtain and keep the supporting documentation in such form as the Department requires. [35 ILCS 505/6(7)] Specifically, a specific notation of the nature of the exemption must be made on the invoice for these sales. The seller must retain the invoice number and date, name of carrier, bill of lading/manifest number, name and address of purchaser, Illinois origin, Illinois destination, and invoiced gallons sold (see 86 Ill. Adm. Code 130.815). A legible and conspicuous notice stating "Dyed Diesel Fuel, Non-taxable Use Only, Penalty For Taxable Use" must appear on allA legible and DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS conspicuous notice stating "Dyed Diesel Fuel, Non-taxable Use Only, Penalty For Taxable Use" must appear on all shipping papers (including delivery tickets or manifests and excluding material safety data sheets), bills of lading, and invoices accompanying any sale of dyed diesel fuelbills of lading, and invoices accompanying any sale of dyed diesel fuel. [35 ILCS 505/4e] 4) For purposes of this subsection (g), end users of dyed diesel fuel include off-road equipment rental companies when purchasing dyed diesel for their off-road rental equipment to be used exclusively for non-highway purposes, if the purchase otherwise meets the requirements of the exemption. h) Sales of 1-K kerosene delivered into a storage tank that is located at a facility that has withdrawal facilities that are readily accessible to, and are capable of dispensing 1-K kerosene into the fuel supply tanks of motor vehicles1-K kerosene delivered into a storage tank located at a facility that has withdrawal facilities that are readily accessible to, and are capable of dispensing 1-K kerosene into the fuel supply tanks of, motor vehicles are taxable. For purposes of the exemption described in this subsection (h),For purposes of the exemption described in this subsection (h), a facility is considered to have withdrawal facilities that are not "readily accessible to and capable of dispensing 1-K kerosene into the fuel supply tanks of motor vehicles" only ifwhen the 1-K kerosene is delivered from: 1) a dispenser hose that is short enough that it will not reach the fuel supply tank of a motor vehicle; or 2) a dispenser that is enclosed by a fence or other physical barrier so that a vehicle cannot pull alongside the dispenser to permit fueling. [35 ILCS 505/2(e)](Section 2 of the Law) i) Sales of motor fuel made to licensed distributors or suppliers. A specific notation of the nature of the exemption must be made on the invoice for these sales. Also, the seller must retain the invoice number and date, name of carrier, bill of lading/manifest number, name and address of purchaser, Illinois origin, Illinois destination, purchaser's license number, and invoiced gallons sold. (Source: Amended at 50 Ill. Reg. ______, effective ____________) Section 500.230 Motor Fuel Consumed by Distributors, Special Fuel Consumed by Suppliers and Fuel Consumed by Receivers a) Distributors are required to pay the tax on all motor fuel (of the type they are required by the second paragraph of Section 5 of the Motor Fuel Tax Law to report to the Department when filing a return), except dyed diesel fuel used by distributors for non-highway purposes, used or consumed by them, whether for taxable or nontaxable purposes. If the motor fuel is consumed for statutory nontaxable purposes, a claim for credit or refund may thereafter be filed as provided by the Motor Fuel Tax Law and on the form prescribed by the Department for that purpose. b) Suppliers are required to pay the tax on all special fuel, except dyed diesel fuel used by the suppliers for non-highway purposes, used or consumed by them, whether for taxable or nontaxable purposes. If the special fuel is consumed for statutory nontaxable purposes, a claim for credit or refund may thereafter be filed as provided by the Motor Fuel Tax Law and on the form prescribed by the Department for that purpose. bc) Receivers are required to pay tax on all fuel, as defined by Section 1.19 of the Motor Fuel Tax Law, used or consumed by them. cd) In addition to the daily gallonage requirements of Section 500.205, distributors, suppliers and receivers are required to keep detailed records of all motor fuel and fuel withdrawn from storage facilities for highway and nonhighway use by the distributor, supplier and receiver. This information must contain the following information: 1) Date of withdrawal;. 2) Number of gallons by fuel type;. 3) Description of vehicle or equipment into which the fuel or motor fuel was delivered;. 4) Unit number, license plate number, or vehicle identification number (VIN) of the vehicle or equipment; and. 5) Detailed description of the purpose for which the fuel or motor fuel was DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS used. (Source: Amended at 50 Ill. Reg. ______, effective ____________) Section 500.235 Claims for Refund of Taxes and Motor Fuel Use Tax Decal Fees – Invoices a) Any person other than a distributor, who loses motor fuel through any cause or uses motor fuel (upon which it has paid the amount required to be collected under Section 2 of the Act) for any purpose other than operating a motor vehicle upon the public highways or waters, shall be reimbursed and repaid the amount so paid. [35 ILCS 505/13] 1) Claims for the refund of Motor Fuel Tax imposed by Section 2 of the Law, by persons other than a distributor or supplier, shall be made to the Department of Revenue, duly verified by the claimant, upon forms prescribed by the Department. 2) Claims must state such facts relating to the purchase, importation, manufacture or production of the motor fuel by the claimant as the Department may deem necessary, and the time when, and the circumstances of its loss or the specific purpose for which it was used (as the case may be), together with such other information as the Department may reasonably require. [35 ILCS 505/13] 3) On and after January 1, 2016, claims may be filed electronically in accordance with 86 Ill. Adm. Code 760. 4) The Department of Revenue will not approve claims for refund of Motor Fuel Tax unless the claims can be directly supported by invoices, sales slips, statements of account, or monthly statements (herein referred to as "purchase documentation"). Reproductions may be submitted in lieu of originals, provided they are legible. However, the Department may require original purchase documentation to verify purchases. Purchase documentation may be electronically generated by the claimant's fuel supplier. Electronically generated purchase documentation shall meet all applicable electronic storage requirements of Sections 130.805 and 130.825 of the Retailers' Occupation Tax regulations (86 Ill. Adm. Code 130). Manifests will not be treated as purchase documentation. DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS b) All purchase documentation must contain the following information: 1) Date of delivery; 2) name and address of purchaser (which must be the name of the claimant); 3) name and address of seller; 4) number of gallons purchased and price per gallon; 5) Illinois Motor Fuel Tax as separate item if the purchase documentation is from other than a retail outlet; 6) receipt of payment. (Only paid purchase documentation is acceptable in connection with claims for refund.) Refunds will only be issued when payment of tax is exactly correlated to the purchase documentation for which the claim is being filed; and 7) in the case of losses of motor fuelpersons making claims based upon the loss of motor fuel due to fire or theft, the claimant must include fire department or police department reports with their claimwith their claim. [35 ILCS 505/13](Section 13 of the Law) Failure to include these reports will result in automatic denial of the claim. c) Claimants must retain purchase documentation in conjunction with claims based upon motor fuel used for a nontaxable purpose. In making a claim, claimants must show total purchases, deducting the gallonage used upon public highways or waters, the difference being the net amount upon which the claim is based. Claimants must retain among their books and records documentation of all purchases, payments, bulk storage withdrawals and proof of usage for a period equivalent to that during which an assessment can be issued under the Law, from the date of issuance of the claim or refund. This information must be made available to Department employees upon request. Failure to keep or provide the records will result in denial of claims and recovery of any claims paid. In addition, the Department may recover any claims erroneously paid. d) When the claimant has lost purchase documentation through inadvertence, force majeure or natural disasteran act of God, the Department will permit the claimant to submit an affidavit in lieu of purchase documentation in support of the claim, if DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS the affidavit contains the same information that the purchase documentation was required to contain, plus a statement of facts explaining the loss of the purchase documentation and justifying the substitution of an affidavit for the purchase documentation. e) Claims for reimbursement for taxes paid on or after January 1, 2000 must be filed not later than 2 years after the date on which the tax was paid by the claimant. [35 ILCS 505/13]Claims for reimbursement for taxes paid must be filed not later than 2 years after the date on which the tax was paid by the claimant. f) Claims accompanied by purchase documentation that demonstrates evidence of change of name, date or gallonage or other evidence of fraud, or that is illegible, will be disallowed in their entirety. g) Any person who purchases motor fuel in Illinois and uses that motor fuel in another state and that other state imposes a tax on the use of such motor fuel shall be reimbursed and repaid the amount of Illinois tax paid under Section 2 of the Law on the motor fuel used in such other state. Reimbursement and repayment shall be made by the Department upon receipt of adequate proof of taxes directly paid to another state and the amount of motor fuel used in that state. Evidence supporting the claim must include bothEvidence supporting the claim must include both a certified copy of the tax return filed with such other state by the claimant; and a copy of either the cancelled check paying the tax due on such return, or a receipt acknowledging payment of the tax due on such tax return; and such other information as the Department may reasonably require. The provisions of this subsection (g) shall not apply to taxes paid on returns under Section 13a.3 of the Lawthe Law. [35 ILCS 505/13](Section 13 of the Law) h) The Department shall pay all refunds due under this Act within 90 days after receipt of application for a refund. For commercial motor vehicles, refunds paid after the expiration of the 90 day period shall bear interest at the rate of 1% per month or fraction of a month. Refunds paid to all other persons subject to the Law shall be paidClaims for refunds for the motor fuel tax imposed by Section 2 of the Law approved by the Department shall be paid within 90 days after receipt of a complete and correct application for such a refund. If refunds are paid after the expiration of the 90 day period, the Department shall also pay from the Motor Fuel Tax Fund to the taxpayer interest at the rate and in the manner set by the Uniform Penalty and Interest Act [35 ILCS 753]. [35 ILCS 505/15.1](Section 15.1 of the Law) Refunds paid after the expiration of the 90 day period shall bear DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS interest from the date that a properly completed claim for refund was filed with the Department. i) The Department will approve claims for refund only when the claims are based upon a showing that the motor fuel was used for a nontaxable purpose, and that the part for which refund is claimed can, as a practical matter, be calculated and itemized. 1) For purposes of claims for refund, a nontaxable purpose or "any purpose other than operating a motor vehicle upon the public highways" refers to the specific purpose for which the motor vehicle was used and does not refer to the specific location where the motor fuel was used. Incidental use of motor fuel on private roads or private highways in the operation of a motor vehicle does not constitute a nontaxable purpose or "purpose other than operating a motor vehicle upon the public highways" and does not form a basis for a claim. [35 ILCS 505/13] 2) When the claims are estimated or calculated, they must be supported by verifiable documentation retained in the claimant's books and records. 3) Only claims that can be supported by proof of the amount of motor fuel not used for a taxable purpose will be approved. j) For claims based upon taxes paid on or after January 1, 2000, aNo claim based upon the use of undyed diesel fuel shall not be allowed except for claims for the following: 1) Undyed diesel fuel used: in a manufacturing process, as defined in Section 2-45 of the Retailers' Occupation Tax Act, wherein the undyed diesel fuel becomes a component part of a product or byproduct, other than fuel or motor fuel, when the use of dyed diesel fuel in that manufacturing process results in a product that is unsuitable for its intended use; or for testing machinery and equipment in a manufacturing process, as defined in Section 2-45 of the Retailers' Occupation Tax Act, wherein the testing takes place on private property. [35 ILCS 505/13(1)] 2) Undyed diesel fuel used by a manufacturer on private property in the research and development, as defined in Section 1.29 of the Lawof the Law, of machinery or equipment intended for manufacture. [35 ILCS DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS 505/13(2)] 3) Undyed diesel fuel used by a single unit self-propelled agricultural fertilizer implement, designed for on and off road use, equipped with flotation tires and specially adapted for the application of plant food materials or agricultural chemicals. [35 ILCS 505/13(3)] 4) Undyed diesel fuel used by a commercial motor vehicle, as defined in Section 500.100 of this Part,, as defined in Section 500.100 of this Part, for any purpose other than operating the commercial motor vehicle upon the public highways. Claims shall be limited to commercial motor vehicles that are operated for both highway purposes and any purposes other than operating such vehicles upon the public highways and shall be limited to the nonhighway portion of the fuel used. [35 ILCS 505/13(4)] For instance, the claims include, but are not limited to, commercial motor vehicles such as 3-axle dump trucks operated both on public highways and also on landfills in landfill operations. This subsection (j)(4) does not include claims filed for undyed diesel fuel used by power take-off equipment. This type of claim is described in subsection (j)(7). 5) Undyed diesel fuel used by a unit of local government in its operation of an airport if the undyed diesel fuel is used directly in airport operations on airport property. [35 ILCS 505/13(5)] 6) Undyed diesel fuel used by refrigeration units that are permanently mounted to a semitrailer, as defined in Section 1.28 of thethe Law, wherein the refrigeration units have a fuel supply system dedicated solely for the operation of the refrigeration units. [35 ILCS 505/13(6)] 7) Undyed diesel fuel used by power take-off equipment as defined in Section 1.27 of thethe Law. [35 ILCS 505/13(7)] Claims shall be based upon actual consumption of undyed diesel fuel. The maximum amount of undyed diesel fuel that may be claimed for refund under this Section, however, is 25% of the fuel consumed, unless prior to submission of the claim the claimant submits a specific study conducted by the claimant and approved by the Department for claims in excess of this amount. Approved studies shall be valid for 2 years after the date of approval. However, upon petition of a taxpayer, the Department may approve an extension of a previously approved study for no more than 2 years. No DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS study may be relied upon for a total of more than 4 years. 8) Claims for taxes paid on and after January 1, 2001 are not authorized for commercial vehicles unless the commercial vehicle falls within the definition of a "commercial motor vehicle", as provided in Section 500.100 of this Part and the claim is eligible for refund under subsection (j)(4), or the claim is eligible for refund under any of the other provisions of this subsection (j). 9) Beginning on August 22, 2005August 22, 2005, undyed diesel fuel used by tugs and spotter equipment to shift vehicles or parcels on both private and airport property. Any claim under this subsection (j)(9) may be made only by a claimant that owns tugs and spotter equipment and operates that equipment on both private and airport property. The aggregate of all credits or refunds resulting from claims filed under this subsection (j)(9) by a claimant in any calendar year may not exceed $100,000. A claim may not be made under this subsection (j)(9) by the same claimant more often than once each quarter. For purposes of this subsection (j)(9), "tug" means a vehicle designed for use on airport property that shifts custom-designed containers of parcels from loading docks to aircraft, and "spotter equipment" means a vehicle designed for use on both private and airport property that shifts trailers containing parcels between staging areas and loading docks. [35 ILCS 505/13(8)](Section 13 of the Law) k) Effective July 1, 2001, any person who has paid the tax imposed by Section 2 of thethe Law upon undyed diesel fuel that is unintentionally mixed with dyed diesel fuel and who owns or controls the mixture of undyed diesel fuel and dyed diesel fuel may file a claim for refund to recover the amount paid. The amount of undyed diesel fuel unintentionally mixed must equal 500 gallons or more. Any claim for refund of unintentionally mixed undyed diesel fuel and dyed diesel fuel shall be supported by documentation showing the date and location of the unintentional mixing, the number of gallons involved, the disposition of the mixed diesel fuel, and any other information that the Department may reasonably require. Any unintentional mixture of undyed diesel fuel and dyed diesel fuel shall be sold or used only for non-highwaynonhighway purposes. [35 ILCS 505/13](Section 13 of the Law) l) Any person who purchases motor fuel use tax decals as required by Section 13a.4 of the Law and pays an amount of fees for such decals that exceeds the amount DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS due shall be reimbursed and repaid the amount of the decal fees that are deemed by the Department to be in excess of the amount due. [35 ILCS 505/13] Claims for reimbursement of decal fees are subject to the following procedures and restrictions:Claims for reimbursement of decal fees are subject to the following procedures and restrictions: 1) Claims for reimbursement shall be made to the Department of Revenue electronically andand be duly verified by the claimant (or by the claimant's legal representative if the claimant has died or become a person under legal disability); 2) Claims shall state facts relating to the overpayment of decal fees; 3) Claims for reimbursement of overpayment of decal fees paid on or after January 1, 2011 must be filed not later than one year after the date on which the fees were paid by the claimant; 4) If it is determined that the Department should reimburse a claimant for overpayment of decal fees, the Department shall first apply the amount of such refund against any tax or penalty or interest due by the claimant under Section 13a of thethe Law. [35 ILCS 505/13](Section 13 of the Law) (Source: Amended at 50 Ill. Reg. ______, effective ____________) Section 500.265 Distributors' and Suppliers' Claims for Credit or Refund a) Filing of Claims. Any distributor who has paid the tax imposed by Section 2 of the Law upon motor fuel lost or used by such distributor for any purpose other than operating a motor vehicle upon the public highways or waters may file a claim for credit or refund to recover the amount so paid. Such claims shall be filed on forms prescribed by the Department. [35 ILCS 505/13]Any distributor or supplier who shall have paid Motor Fuel Tax upon motor fuel used by the distributor or supplier for any purpose other than operating a motor vehicle upon the public highways or waters, may file a claim for credit or refund to recover the amount so paid. The claims shall be filed on forms prescribed by the Department. b) On and after January 1, 2016, claims are required to be filed electronically in accordance with 86 Ill. Adm. Code 760 only for periods for which an original DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS return is required to be filed electronically. All other claims must be filed on paper forms. Such claims shall be made to the Department, duly verified by the claimant (or by the claimant's legal representative if the claimant has died or become a person under legal disability), upon forms prescribed by the Department. The claim shall state such facts relating to the purchase, importation, manufacture or production of the motor fuel by the claimant as the Department may deem necessary and the time when the loss or nontaxable use occurred, and the circumstances of its loss or the purpose for which it was used (as the case may be), together with such other information as the Department may reasonably require. Claims must be filed not later than one year after the date on which the tax was paid by the claimant. [35 ILCS 505/13] The claims shall be made to the Department, duly verified by the claimant (or by the claimant's legal representative if the claimant shall have died or become a person under legal disability). The claim shall state such facts relating to the purchase, importation, manufacture or production of the motor fuel by the claimant as the Department may deem necessary and shall state when the nontaxable use occurred and shall specify the purpose for which the motor fuel was used by the claimant, together with such other information as the Department may reasonably require. Claims for credit or refund for tax paid on motor fuel purchased on or after July 1, 1965, must be filed not later than one year after the date on which tax was paid by the claimant. c) In case the distributor requests and the Department determines that the claimant is entitled to a refund, such refund shall be made only from such appropriation as may be available for that purpose. If it appears unlikely that the amount appropriated would permit everyone having a claim allowed during the period covered by such appropriation to elect to receive a cash refundIn case the distributor or supplier requests and the Department determines that the claimant is entitled to a refund, the refund shall be made only from such appropriation as may be available for that purpose. If it appears unlikely that the amount appropriated would permit everyone having a claim allowed during the period covered by the appropriation to elect to receive a cash refund, the Department shall provide for the payment of refunds in hardship cases as provided in 86 Ill. Adm. Code 130.1510. [35 ILCS 505/13] db) The Department will approve claims for refund only when the claims are based upon a showing that the motor fuel was used for a nontaxable purpose, and that the part for which refund is claimed can, as a practical matter, be calculated and itemized. 1) When the claims are estimated or calculated, they must be supported by verifiable documentation retained in the claimant's books and records. 2) Only claims that can be supported by proof of the amount of motor fuel not used for a taxable purpose will be approved. ec) For claims based upon taxes paid on or after January 1, 2001, ano claim based upon the use of undyed diesel fuel shall not be allowed except for claims for the following: 1) Undyed diesel fuel used: in a manufacturing process, as defined in Section 2-45 of the Retailers' Occupation Tax Act, wherein the undyed diesel fuel becomes a component part of a product or byproduct, other than fuel or motor fuel, when the use of dyed diesel fuel in that manufacturing process results in a product that is unsuitable for its intended use; or for testing machinery and equipment in a manufacturing process, as defined in Section 2-45 of the Retailers' Occupation Tax Act, wherein the testing takes place on private property. [35 ILCS 505/13(1)] 2) Undyed diesel fuel used by a manufacturer on private property in the research and development, as defined in Section 1.29 of the Lawthe Law, of machinery or equipment intended for manufacture. [35 ILCS 505/13(2)] 3) Undyed diesel fuel used by a single unit self-propelled agricultural fertilizer implement, designed for on and off road use, equipped with flotation tires and specially adapted for the application of plant food materials or agricultural chemicals. [35 ILCS 505/13(3)] 4) Undyed diesel fuel used by a commercial motor vehicle for any purpose other than operating the commercial motor vehicle upon the public highways. Claims shall be limited to commercial motor vehicles that are operated for both highway purposes and any purposes other than operating such vehicles upon the public highways and shall be limited to the nonhighway portion of the fuel used. [35 ILCS 505/13(4)] For instance, such claims include, but are not limited to, commercial motor vehicles such as 3-axle dump trucks operated both on public highways and on landfills in landfill operations. This subsection (c)(4) does not include claims filed for undyed diesel fuel used by power take-off equipment. This DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS type of claim is described in subsection (c)(7). 5) Undyed diesel fuel used by a unit of local government in its operation of an airport if the undyed diesel fuel is used directly in airport operations on airport property. [35 ILCS 505/13(5)] 6) Undyed diesel fuel used by refrigeration units that are permanently mounted to a semitrailer, as defined in Section 1.28 of thethe Law, wherein the refrigeration units have a fuel supply system dedicated solely for the operation of the refrigeration units. [35 ILCS 505/13(6)] Claims may be made for 100% of the fuel consumed by the refrigeration units. 7) Undyed diesel fuel used by power take-off equipment as defined in Section 1.27 of thethe Law. [35 ILCS 505/13(7)](Section 13 of the Law) Claims shall be based upon actual consumption of undyed diesel fuel. The maximum amounts of undyed diesel fuel that may be claimed for refund under this Section, however, is 25% of the fuel consumed, unless prior to submission of the claim the claimant submits a specific study conducted by the claimant and approved by the Department for claims in excess of this amount. Approved studies shall be valid for 2 years after the date of approval. However, upon petition of a taxpayer, the Department may approve an extension of a previously approved study for no more than 2 years. No study may be relied upon for a total of more than 4 years. 8) Beginning on August 22, 2005August 22, 2005, undyed diesel fuel used by tugs and spotter equipment to shift vehicles or parcels on both private and airport property. Any claim under this subsection (c)(8) may be made only by a claimant that owns tugs and spotter equipment and operates that equipment on both private and airport property. The aggregate of all credits or refunds resulting from claims filed under this subsection (c)(8) by a claimant in any calendar year may not exceed $100,000. A claim may not be made under this subsection (c)(8) by the same claimant more often than once each quarter. For purposes of this subsection (c)(8), "tug" means a vehicle designed for use on airport property that shifts custom-designed containers of parcels from loading docks to aircraft, and "spotter equipment" means a vehicle designed for use on both private and airport property that shifts trailers containing parcels between staging areas and loading docks. [35 ILCS 505/13(8)](Section 13 of the Law) 9) Claims for taxes paid on and after January 1, 2001 are not authorized for commercial vehicles unless the commercial vehicle falls within the definition of a "commercial motor vehicle" as provided in Section 500.100 of this Part and the claim is eligible for refund under subsection (c)(4), or the claim is eligible for refund under any of the other provisions of this subsection (c). 10) Claims for taxes paid on and after January 1, 2001 are not authorized for undyed diesel fuel used by unlicensed commercial vehicles operating exclusively on private property, unless the vehicles are eligible for refund under any of the provisions of this subsection (c). fd) Effective July 1, 2001Effective July 1, 2001, any person who has paid the tax imposed by Section 2 of thethe Law upon undyed diesel fuel that is unintentionally mixed with dyed diesel fuel and who owns or controls the mixture of undyed diesel fuel and dyed diesel fuel may file a claim for refund to recover the amount paid. The amount of undyed diesel fuel unintentionally mixed must equal 500 gallons or more. Any claim for refund of unintentionally mixed undyed diesel fuel and dyed diesel fuel shall be supported by documentation showing the date and location of the unintentional mixing, the number of gallons involved, the disposition of the mixed diesel fuel, and any other information that the Department may reasonably require. Any unintentional mixture of undyed diesel fuel and dyed diesel fuel shall be sold or used only for nonhighway purposes. [35 ILCS 505/13](Section 13 of the Law) ge) Issuance of Credit Memoranda – Use Thereof to Satisfy Tax due from the Claimant to thePrior Rights of Department. 1) The Department may make such investigation of the correctness of the facts stated in such claims as it deems necessary. When the Department approves a claim, the Department shall issue a refund or credit memorandum as requested by the taxpayer, to the distributor who made the payment for which the refund or credit is being given or, if the distributor has died or become incompetent, to such distributor's legal representative, as such. The amount of such credit memorandum or refund shall be credited against any tax due or to become due under the Law from the distributor who made the payment for which credit has been given. [35 ILCS 505/13]The Department may make such investigation of the correctness of the facts stated in the claims for credit or refund as it DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS deems necessary. When the Department approves a claim for credit or refund the Department shall issue a refund or credit memorandum to the distributor or supplier who made the payment for which the refund or credit is being given or, in the event that the distributors or suppliers shall have died or become incompetent, to the distributor's or supplier's legal representative, as such. The amount of the refund or credit memorandum shall first be credited against any tax due or to become due under the Law from the distributor or supplier who made the payment for which credit has been given. This means that if there is an established or admitted unpaid Motor Fuel Tax liability on the part of the claimant, the amount of the credit or refund will be credited against the tax that is due. 2) If the credit or refund is in an amount less than that of the unpaid liability, the credit or refund shall be applied against the liability. If the amount of the credit or refund exceeds that of the unpaid liability, after applying a credit or refund amount sufficient to liquidate the tax due from claimant, the Department will issue a credit memorandum or refund for any remaining balance of the credit or refund, provided that no proceeding is pending to determine whether the claimant is indebted to the Department for tax under the Law.If the amount of the credit or refund exceeds that of the unpaid liability, after crediting an amount sufficient to liquidate or cancel out the unpaid liability, the Department will issue a new credit memorandum or refund representing the difference between that of the original credit or refund found to be due and that of the liability liquidated or paid as aforesaid, and such new credit memorandum or refund will be delivered to the person entitled to receive the delivery, provided that no proceeding is pending against the claimant to establish an unpaid liability under the Law. 3) If such proceeding is pending, the issuance of a credit memorandum or refund will be held by the Department until the proceeding culminates in a final disposition. If the proceeding results in a final disposition ordering assessment of tax under the Law against the claimant, the credit memorandum or refund will be applied by the Department to liquidate the assessed tax. A credit memorandum or refund will be issued for any remaining balance of the credit or refund.If a proceeding to establish such an unpaid liability is pending, the credit memorandum or refund will be held by the Department until the proceeding is concluded; and if the proceeding results in a determination that Motor Fuel Tax is due from the DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS claimant, the credit memorandum or refund will be applied by the Department, to the extent that may be necessary, in liquidation of the liability, and the balance of the credit memorandum or refund, if any (after cancellation of the credit memorandum or refund applied in liquidation of said liability), will be issued in the form of a new credit memorandum or refund and delivered to the person entitled to receive the delivery. hf) Disposition of Credit Memoranda by Holder Thereof 1) Assignment of Credit Memoranda. Credit memoranda may be assigned or set over by the lawful holder thereoftransferred only after a request for that purpose is filed with the Department upon forms prescribed and furnished by it, and subject to the following conditions: A) That the assignment is made to a person who is licensed as a distributor of motor fuel or a supplier of special fuel under the Law; B) no proceeding is pending to determine whether such distributor- assignor is indebted to the Department for taxthat there is no proceeding pending to establish an unpaid Motor Fuel Tax liability against the assignor; and C) that there is no established or admitted unpaid tax under the Law byMotor Fuel Tax liability against the assignor. [35 ILCS 505/13]; provided, that i) If tax under the Law is due from the assignorif the amount of the credit memorandum must first be applied, in whole or in part, against an established, unpaid liability of the claimant-assignor. Notice, notice to this effect will be given the claimant-assignor by the Department. Any remaining balance of credit will be issued in the form of a credit memorandum to the assignee, provided no proceedings are pending against the assignor to establish unpaid liability under the Law.If any balance is due the claimant-assignor, after application of the credit memorandum in the manner and to the purposes aforesaid, the balance may be assigned upon receipt by the Department of instructions to that DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS effect. If there is no unpaid liability and no proceedings pending to determine a liability as aforesaid, and if the assignee is a licensed distributor of motor fuel, the request for leave to assign will be approved. The original credit memorandum will be cancelled, and a new credit memorandum will be issued to the assignee in the amount shown on the cancelled memorandum. ii) However, before a credit memorandum may beis issued to the assignee, the amount of the credit will be applied by the Department against any tax due or to become due under the Law from such assignee. [35 ILCS 505/13] , to the extent that may be necessary, in liquidation of any unpaid Motor Fuel Tax liability of the assignee, and a credit memorandum for the Any remaining balance of credit, if any, will be issued in a form of a credit memorandum to the assignee, provided that there is no proceeding is pending against the assignee to establish an unpaid liability under the LawMotor Fuel Tax liability against him or her. However, ifIf a proceeding is pending to establish tax due under the Law against the assigneesuch an unpaid liability is pending, the credit memorandum will be held by the Department until the proceeding culminates in a final disposition. If such proceeding results in the issuance of a final disposition ordering an assessment of tax under the Law, the credit will be applied by the Department to liquidate the assessed tax.is concluded; and if the proceeding results in a determination that Motor Fuel Tax is due from the assignee, the credit will be applied by the Department, to the extent that may be necessary in liquidation of the liability, and the balance of the credit, if any (after cancellation of the credit memorandum applied in liquidation of said liability), will be issued in the form of a new credit memorandum and delivered to the person entitled to receive the delivery. 2) Submission of Credit Memoranda With Monthly Returns. Credit memoranda, in the hands either of the original claimant or of itshis or her assignee, may be submitted to the Department, along with monthly tax DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS returns, in payment of Motor Fuel Tax due from the holder of the credit memoranda. If, after applying any such credit memorandum against the amount of tax shown to be due by the tax return with which the credit memorandum is submitted, the Department finds that there is a remaining balance of the credit memorandum in favor of the distributor or supplier submitting the credit memorandum, the Department will cancel the credit memorandum that has been submitted and will issue and deliver to the distributor or supplier a new credit memorandum for the balance. This process will be followed until the credit, to which the distributor or supplier is entitled, is exhausted. However, any new credit memorandum, which is issued as provided in this subsection (f)(2) for a balance of credit due the distributor or supplier after applying the amount of a credit memorandum to the payment of current taxes, is subject to the satisfaction of prior tax due torights of the Department to the same extent that satisfaction ofsuch prior tax due takesrights take precedence when a credit memorandum is first issued (see subsection (e) of this Section) or when leave to assign a credit memorandum is requested (see subsection (f)(1) of this Section). ig) Refunds to Distributors and Suppliers. If any person ceases to be licensed as a distributor while still holding an unused credit memorandum issued under the Law, such person may, at his election (instead of assigning the credit memorandum to a licensed distributor under the Law), surrender such unused credit memorandum to the Department and receive a refund of the amount to which such person is entitled. [35 ILCS 505/13]If any distributor or supplier ceases to be licensed as a distributor or supplier while still holding an unused credit memorandum, the distributor or supplier may, at his or her election (instead of assigning the credit memorandum to another licensed distributor or supplier under the Law), surrender the unused credit memorandum to the Department and receive a refund in lieu of the credit. jh) The Department shall pay all refunds due under the Law within 90 days after receipt of application for a refund. For commercial motor vehicles, refunds paid after the expiration of the 90 day period shall bear interest at the rate of 1% per month or fraction of a month. Refunds paid to all other persons subject to the Law shall be paid at the rate and in the manner set by the Uniform Penalty and Interest Act. [35 ILCS 505/15.1]Claims filed under this Section for overpayment of the Motor Fuel Tax imposed by Section 2 of the Law shall bear interest at the rate and in the manner specified in the Uniform Penalty and Interest Act. Claims DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS made under this Section that are based upon motor fuel used for any purpose other than operating a motor vehicle upon the public highways or waters shall be paid within 90 days after receipt of a complete and correct application for credit. If credits based upon motor fuel used for any purpose other than operating a motor vehicle upon the public highways or waters are issued after expiration of the 90 day period, the Department shall include interest at the rate and in the manner set by the Uniform Penalty and Interest Act [35 ILCS 735]. (Section 13 of the Law) Refunds paid after the expiration of the 90 day period shall bear interest from the date that a properly completed claim for refund was filed with the Department. (Source: Amended at 50 Ill. Reg. ______, effective ____________) Section 500.280 Sales of Motor Fuel to Municipal Corporations Owning and Operating Local Transportation Systems A distributor of motor fuel or a supplier of special fuel may make tax-free sales of the special fuel to a municipal corporation owning and operating a local transportation system for public service in the Stateto a municipal corporation owning and operating a local transportation system for public service in the State for use in operating vehicles used for public transportation as part of the local transportation system, provided that the distributor or supplier obtains an official Certificate of Exemption in lieu of the tax. [35 ILCS 505/5] The Certificate of Exemption shall accompany the distributor's or supplier's monthly Motor Fuel Tax return to the Department to support itshis or her claim to exemption from the tax. The Certificate of Exemption shall be in substantially the following form: "This is to certify that (Name of Municipal Corporation) atof (Address) , Illinois, a municipal corporation which owns and operates a local transportation system for public service in Illinois, purchased gallons of motor fuel, Illinois Motor Fuel Tax exempt, from (Name of Distributor Supplier) whose address is on Invoice No dated , and said motor fuel is for use in operating vehicles used for public transportation as part of the local transportation system. Name of Municipal Corporation Name of Authorized Representative Title of Authorized Representative Dated: , 20 " (Source: Amended at 50 Ill. Reg. ______, effective ____________) Section 500.285 Sales of Motor Fuel to Certain Privately-Owned Public Utilities Owning and Operating Transportation Systems in Metropolitan Areas a) A distributor of motor fuel or a supplier of special fuel may make tax-free sales of the special fuel to a privately-owned public utility owning and operating 2 axle vehicles designed and used for transporting more than 7 passengers, which vehicles are used as common carriers in general transportation of passengers, are not devoted to any specialized purpose and are operated entirely within the territorial limits of a single municipality or of any group of contiguous municipalities, or in a close radius thereof, and the operations of which are subject to the regulations of the Illinois Commerce Commissionto a privately- owned public utility that owns and operates 2 axle vehicles designed and used for transporting more than 7 passengers, which vehicles are used as common carriers in general transportation of passengers, are not devoted to any specialized purpose and are operated entirely within the territorial limits of a single municipality or of any group of contiguous municipalities, or in a close radius thereof, and the operations of which are subject to the regulations of the Illinois Commerce Commission, provided that the distributor or supplier obtains an official Certificate of Exemption in lieu of the tax. [35 ILCS 505/5] Motor fuel may be sold tax-free only for the purpose of operating the 2-axle vehicles as common carriers in general transportation of passengers entirely within the territorial limits of a single municipality, any group of contiguous municipalities, or a close radius of either. b) The Certificate of Exemption shall accompany the distributor's or supplier's monthly Motor Fuel Tax return to the Department to support itshis or her claim to exemption from the tax. c) The Certificate of Exemption shall be in substantially the following form: DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS "This is to certify that (Purchasing Bus Company) atof (Address) , Illinois, a privately owned public utility which owns and operates 2 axle vehicles designed and used for transporting more than 7 passengers, which vehicles are used as common carriers in general transportation of passengers, are not devoted to any specialized purpose and are operated entirely within the territorial limits of a single municipality or of any group of contiguous municipalities, or in a close radius thereof, and the operations of which are subject to the regulations of the Illinois Commerce Commission, purchased ____ gallons of motor fuel, Illinois Motor Fuel Tax exempt, from (Name of Distributor) or Supplier) whose address is on Invoice No dated , and said motor fuel is for use in operating such local transportation system under the limitations specified hereinabove. Name of Purchasing Bus Company Name of Authorized Representative Title of Authorized Representative Dated: , 20 " (Source: Amended at 50 Ill. Reg. ______, effective ____________) Section 500.298 Civil Penalties for Dyed Diesel Fuel Violations a) Definitions. For purposes of this Section, the following definitions apply: "Inspection" means the periodic examination by duly authorized agents of the Department of places at which motor fuel is or may be produced or stored. Such places may include, but are not limited to, any terminal, any fuel storage facility that is not a terminal, any retail fuel facility, and any State highway inspection station, weigh station, agricultural inspection station, mobile station, or other location designated by the Department to be used as a fuel inspection siteany State highway inspection station, weigh station, agricultural inspection station, DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS mobile station, or other location designated by the Department to be used as a fuel inspection site. [35 ILCS 505/1.26] Inspection of multiple locations may be conducted as part of one inspection. When one inspection spans multiple sites, the inspection may occur over a period of up to 15 days. "Occurrence" means each event that results in a violation. As noted in subsections (c) and (d), an occurrence may encompass a series of similar violations occurring during an inspection (e.g., multiple violations of notice requirements). However, a separate occurrence results each time a violation of subsection (b) is found. For purposes of the penalty imposed under subsection (e), a first occurrence results for any amount of sales or attempted sales made to a specific customer during the course of a single day. A second and subsequent occurrence results for each day subsequent to the first occurrence in which any amount of sales or attempted sales are made to that same customer. "Operator" means the person who has physical control over a motor vehicle. For purposes of this Section, the driver of a vehicle is considered the operator of that vehicle irrespective of any ownership or lease agreements. When a motor vehicle is not under the control of a driver, the operator will be the person that has physical control over that vehicle. For instance, if a truck parked on company property is found to have dyed diesel fuel in its tanks, a penalty will be issued to the company. If, however, the company has leased that truck to a lessee and the lease remains in effect at the time an inspection occurs on the company property, the lessee will be the operator to whom a penalty is issued. In the latter case, the lessee is the party having physical control over the leased vehicle, until such time as the lease has terminated. b) If a motor vehicle required to be registered for highway purposes is found to have dyed diesel fuel within the ordinary fuel tanks attached to the motor vehicle or if a recreational-type watercraft on the waters of this State is found to have dyed diesel fuel within the ordinary fuel tanks attached to the watercraft, the operator shall pay the following penalty: First occurrence $1,000; Second and each occurrence thereafter $5,000. [35 ILCS 505/15(15)]From January 1, 2000 through June 30, 2001, if a licensed motor vehicle is found to have dyed diesel fuel within the ordinary fuel tanks attached to the motor vehicle, the operator shall pay a penalty of $2500 for the first occurrence and $5000 for the second occurrence and each occurrence thereafter. On and after July 1, 2001, when a motor vehicle required to be registered for highway purposes is found to have dyed diesel fuel within the ordinary fuel tanks attached to the motor vehicle, the DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS operator shall pay a penalty of $2500 for the first occurrence and $5000 for the second occurrence and each occurrence thereafter. On and after August 2, 2001, if a recreational-type watercraft is found to have dyed diesel fuel within the ordinary fuel tanks attached to the watercraft, the operator shall pay a penalty of $2500 for the first occurrence and $5000 for the second occurrence and each occurrence thereafter. (Section 15 of the Law). The first occurrence penalty imposed by this subsection (b) on and after July 29, 2010 shall be $1,000. Each licensed motor vehicle or recreational-type watercraft found to have dyed diesel fuel in its tanks constitutes a separate occurrence. EXAMPLE 1: A truck is inspected at a designated inspection site and dyed diesel fuel is found in the ordinary fuel tank of the truck (owned by the ABC Company). The truck driver tells Department agents that his or her boss, Mr. ABC, tells employees to fill ABC Company trucks with dyed diesel fuel. The truck driver tells the agents that there are other trucks located at the ABC Company with dyed diesel fuel in the ordinary fuel tanks attached to the trucks. Department agents then go to the ABC Company and conduct an inspection. Agents find 2 vehicles registered to the ABC Company with dyed diesel fuel in the ordinary fuel tanks of the vehicles. In this example, there are 3 separate occurrences. The truck driver is assessed a first occurrence penalty for dyed diesel fuel found in the ordinary fuel tank attached to the truck. The driver is the operator who had physical control over the truck when dyed diesel fuel was found in the tanks. The ABC Company is assessed a first occurrence penalty for the first licensed motor vehicle inspected at the business found with dyed diesel fuel in the ordinary fuel tank attached to the motor vehicle. The company is also assessed a $5000 second occurrence penalty for the second licensed motor vehicle inspected at the business found with dyed diesel fuel in the ordinary tank attached to the motor vehicle. The ABC Company is the person who has physical control over the trucks at the time of inspection. EXAMPLE 2: Truck driver #1 was previously issued a first occurrence penalty when he or she was found operating an ABC Company truck with dyed diesel in its tanks. Truck driver #1 returns this truck to the ABC Company. Several months later, agents inspect the ABC Company. The same truck previously driven by truck driver #1 is found to have dyed DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS diesel fuel in its tanks. At a later inspection, truck driver #2 is found to be operating the same truck with dyed diesel in its tanks. In addition, truck driver #1 was found to be operating a truck with dyed diesel in its tanks. Six months after its first inspection, ABC Company acquires 5 new trucks. During the course of an inspection, all 5 of the new trucks are found to have dyed diesel in their tanks. The ABC Company is issued a first occurrence penalty for the truck discovered during the agent's first inspection at ABC Company. The ABC Company is the person who has physical control over the truck at the time of inspection. Truck driver #2 is issued a first occurrence penalty. Truck driver #2 is the person who has physical control over the truck at the time of inspection. Truck driver #1 is issued a $5000 second occurrence penalty because he or she has physical control over the truck at the time of inspection and it is the second time he or she has committed a violation of subsection (b) of this Section. Company ABC is issued a separate $5000 second occurrence penalty for each of the 5 new trucks because the company has physical control over each of these trucks, and each truck represents a second and subsequent violation of subsection (b) of this Section. EXAMPLE 3: The owner of XYZ Company is driving a truck that is inspected and found to have dyed diesel fuel in the ordinary fuel tank attached to the truck. Several hours later, a second truck owned by XYZ Company and driven by an employee is inspected. It, too, is found to have dyed diesel fuel in the ordinary tank attached to the truck. In this example, there are 2 separate occurrences. The owner of Company XYZ driving the truck is assessed a first occurrence penalty for dyed diesel fuel found in the ordinary fuel tank attached to the truck, and the employee of Company XYZ driving the second truck is assessed a first occurrence penalty for dyed diesel fuel found in the ordinary fuel tank attached to the truck. The owner and employee are each persons who have physical control over the trucks, and as such, are operators subject to first occurrence penalties. EXAMPLE 4: Robert Andrew takes his family water skiing on Fox Lake. The boat is stopped for a routine inspection and dyed diesel fuel is found in the boat's fuel tanks. Mr. Andrew is assessed a first occurrence penalty for dyed diesel fuel found in the ordinary fuel tank attached to the watercraft. Mr. Andrew's ski boat is a recreational-type watercraft required to use clear diesel fuel. Dyed diesel fuel may be placed in the tanks of commercial watercraft, however, without penalty. For example, tugboats or commercial fishing boats found to have dyed diesel fuel in their tanks will not be subject to the penalty imposed in this subsection (b). c) Any person who owns, operates, or controls any container, storage tank, or facility used to store or distribute dyed diesel fuel without the notice required by Section 4f of the Lawof the Motor Fuel Tax Law shall pay a penalty of $500 for the first occurrence and $1000 for the second occurrence and each occurrence thereafter. [35 ILCS 505/15(14)] Section 4f requires that a legible and conspicuous notice stating "Dyed Diesel Fuel, Non-taxable Use Only" must appear on all containers, storage tanks, or facilities used to store or distribute dyed diesel fuellegible and conspicuous notice stating "Dyed Diesel Fuel, Non- taxable Use Only" appear on all containers, storage tanks, or facilities used to store or distribute dyed diesel fuel. [35 ILCS 505/4f] For purposes of this penalty, a series of similar violations occurring during the course of one inspection constitutes a single occurrence. EXAMPLE 1: A licensed motor fuel distributor has 5 bulk storage tanks of dyed diesel fuel. During an inspection, agents find that none of the 5 tanks are marked with the required dyed diesel fuel notice. In this example, the distributor is assessed a first occurrence penalty of $500 for all 5 storage tanks found without the required notice. This series of similar violations results in one first occurrence penalty. EXAMPLE 2: In the course of an inspection of a licensed motor fuel distributor with multiple locations, a motor fuel distributor is found to have 5 unmarked tanks at the first location, 3 unmarked tanks at the second location, and one unmarked tank at the third location. For purposes of this penalty, the violations found at the first, second and third location are considered a single occurrence spanning multiple locations during one inspection. However, if a subsequent inspection revealed that his or her storage tanks did not contain the required notice, the distributor would be DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS assessed a second occurrence penalty of $1000. These violations would be considered to have occurred during a separate inspection. d) Any person who sells or transports dyed diesel fuel without the notice required by Section 4e shall pay aa penalty ofof $500 for thefor the first occurrence andand $1000 for thefor the second occurrence and each occurrence thereafter. [35 ILCS 505/15(13)](Section 15 of the Law) A legible and conspicuous notice stating "Dyed Diesel Fuel, Non-taxable Use Only, Penalty for Taxable Use" must appear on all bills of lading and invoices accompanying any sale of dyed diesel fuel. [35 ILCS 505/4e](Section 4e of the Law) EXAMPLE 1: A licensed motor fuel distributor is inspected at one of its 3 locations. Three dyed diesel fuel sales invoices are found without the required dyed diesel fuel notice. During the course of a week-long inspection, agents examine invoices at the other 2 bulk plants of this distributor. At the second location, no violations are found, and at the third location, none of the diesel fuel sales invoices contain the required dyed diesel fuel notice. In this example, the licensed motor fuel distributor is assessed a first occurrence penalty of $500 for all invoices found at the first and third locations without the required notice. The unmarked invoices found at these locations constitute a single occurrence spanning multiple locations during one inspection. However, if a subsequent inspection revealed that his or her invoices did not contain the required notice, the licensed motor fuel distributor would be assessed a second occurrence penalty of $1000. e) Any licensed motor fuel distributor who sells or attempts to sell dyed diesel fuel for highway use or for use by recreational-type watercraft on the waters of this State shall pay the following penalty: First occurrence $1,000; Second and each occurrence thereafter $5,000. [35 ILCS 505/15(16)]Any licensed motor fuel distributor or licensed supplier who sells or attempts to sell dyed diesel fuel for highway use shall pay a penalty of $5000 for the first occurrence and a $10,000 penalty for the second occurrence and each occurrence thereafter. In addition, on and after August 2, 2001, any licensed motor fuel distributor or licensed supplier who sells or attempts to sell dyed diesel fuel for use by recreational-type watercraft on the waters of this State shall pay a penalty of $5000 for the first occurrence and a $10,000 penalty for the second occurrence and each occurrence thereafter. The penalties imposed under this subsection (e) on and after July 29, DEPARTMENT OF REVENUE NOTICE OF PROPOSED AMENDMENTS 2010 shall be $1000 for the first occurrence and $5000 for the second occurrence and each occurrence thereafter. (Section 15 of the Law) f) Any person aggrieved by any action of the Department under item 13, 14, 15, or 16 of Section 15 of the Law may protest the action by making a written request for a hearing within 60 days of the original action. If the hearing is not requested in writing within 60 days, the original action is final. [35 ILCS 505/15]Any person subject to the penalties described in this Section may protest the penalty by making a written request for a hearing within 60 days after notice of the penalty from the Department. If the hearing is not requested in writing within 60 days, the penalty assessment becomes final. (Section 15 of the Law) g) The penalties imposed by subsections (b) and (e) of this Section will be imposed only when the special fuel contains the dye Solvent Red 164 in quantities greater than .1 part per million. (Source: Amended at 50 Ill. Reg. ______, effective ____________) ILLINOIS COMMUNITY COLLEGE BOARD NOTICE OF ADOPTED AMENDMENTS