IL HB1601

Expands authority to impose a county motor fuel tax from only DuPage, Kane, Lake, Will, and McHenry counties to any county in Illinois

Tax rate must be between 4 and 8 cents per gallon on retail motor fuel sales, with annual adjustments tied to the Consumer Price Index (capped at 1 cent increase per year)

Adds "maintaining and constructing essential transportation-related infrastructure" as an allowable use of tax proceeds, alongside existing uses for highways, waterways, bike paths, sidewalks, and property acquisition

Counties may exempt diesel fuel from the tax, and fuel used for aircraft propulsion is prohibited from being taxed

Tax is administered and collected by the Illinois Department of Revenue, which retains 2% of collections to cover administrative costs