IL SB2298

Removes the population restriction limiting municipal motor fuel tax authority to counties with over 3,000,000 inhabitants, allowing any municipality to impose the tax.

Changes the tax structure from a motor fuel tax to a retailers' occupation tax imposed on persons engaged in selling motor fuel at retail, including those making incidental fuel sales with services.

Establishes a tax rate of up to $0.03 per gallon in one cent increments, excludes aviation fuel from taxation, and allows sellers to separately state the tax as an additional charge to consumers.

Requires the Department of Revenue to administer, collect, and enforce the tax using the same procedures as the Retailers' Occupation Tax Act, with all collected taxes deposited into the Municipal Motor Fuel Tax Fund for distribution to municipalities.

Sets implementation deadlines requiring municipalities to file ordinances with the Department by April 1 or October 1 for July 1 or January 1 effective dates, respectively, with transition provisions for ordinances filed before January 1, 2020.