IL HB3535

Creates the Non-Home Rule Municipal Motor Fuel Tax Act, allowing non-home rule municipalities to impose a tax on motor fuel sold at retail with voter approval via referendum.

Tax rate is capped at 2% maximum and must be imposed in 1/4% increments, in addition to any existing motor fuel taxes.

Revenue collected from the motor fuel tax may only be used for infrastructure and road projects, defined as construction or repair of roads, highways, and bridges.

Retailers selling motor fuel within the municipality must collect the tax from purchasers and remit it to the municipality as prescribed by municipal ordinance.

Tax liability falls on the purchaser of motor fuel, not on retailers or other persons engaged in the sale of motor fuel.