Changes in the Motor Fuel Tax Law Effective July 29, 2010

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This bulletin is written to inform you
of recent changes; it does not replace
statutes, rules and regulations, or
court decisions.
Recent legislation made several changes to the Motor Fuel Tax Law. Effective
July 29, 2010:
A tax-free sales of dyed diesel may be made by a licensed distributor or
licensed supplier to someone other than a licensed distributor or licensed
supplier for non-highway purposes if:
1 the 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. “A dispensing facility that has withdrawal facilities that
are not readily accessible to and are not capable of dispensing into the
fuel supply tank of a motor vehicle” means:
• a dispenser hose that is short enough so that it will not reach the
fuel supply tank of a motor vehicle; or
• a dispenser that is enclosed by a fence or other physical barrier
so that a vehicle cannot pull alongside the dispenser to permit
fueling.
2 the fuel is delivered from a vehicle designed for the specifi c purpose
of such sales and delivered directly into a stationary bulk storage tank
that displays the dyed diesel notice required by Section 4f of the Motor
Fuel Tax Law.
3 the fuel is delivered from a vehicle designed for the specifi c 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.
Note: For the sales described above, the distributor or supplier must
make a specifi c notation detailing the nature of the tax free
purchase of fuel on the invoice or sales slip for each sale and
retain this documentation as required by the department.
B all claims of loss due to fi re or theft must include copies of fi re department
and police reports in addition to any other documentation that the Depart-ment
may require.
To All Distributors and Suppliers
of Motor Fuel
Changes in the Motor Fuel Tax Law
Effective July 29, 2010
Brian Hamer / Director
Illinois Department of Revenue
informational
FY 2011-02
July 2010
Bulletin