IL SB2978

Expands municipal motor fuel tax authority to all Illinois municipalities, removing the previous restriction that limited this power to only municipalities in counties with populations over 3,000,000 (Cook County)

Municipalities may impose the tax in one cent increments up to a maximum of $0.03 per gallon on retail motor fuel sales for vehicles on public highways or recreational watercraft on waterways

Aviation fuel is exempt from the municipal motor fuel tax

Existing municipal motor fuel tax ordinances must be replaced with superseding ordinances filed by October 1, 2020, or the tax will be discontinued on January 1, 2021

The Illinois Department of Revenue administers, collects, and enforces the tax, retaining 1.5% for the Tax Compliance and Administration Fund before distributing revenues to municipalities