Motor carrier fuel/Highway use/Mileage tax - Illinois

IFTA fees

IFTA license, no fee

IFTA decals, $3.75 per vehicle; expired decals must be removed from vehicles

Temporary decal permit

Not available. Carrier must have permanent decals.

IFTA

Illinois will allow full credit for tax paid fuel purchases on the quarterly IFTA return. Any excess of tax paid over tax liability in any member jurisdiction will be credited in full to the licensee's tax liability in other member jurisdictions or to the licensee's account ledger as appropriate.

Under IFTA, a licensee will receive full credit or refund for tax-paid fuel used outside the jurisdiction where the fuel was purchased. The base jurisdiction shall allow credits and issue refunds for all of its licensees on behalf of all member jurisdictions. Refunds to licensees will be made only when all tax liability, including audit assessments, have been satisfied to all member jurisdictions.

Information regarding credits or refunds under IFTA is included in the IFTA Agreement manual located at the beginning of this guide in Section XIII Credits and Refunds.

PTO/Reefer fuel

Non-highway refunds are available in Illinois. A permit is not required to request a refund and there are no minimum gallons required in order to apply for a refund. Although it is recommended that refunds be applied for annually, they can be requested for up to 2 years beyond the date the tax was paid on the fuel being claimed.

Illinois will issue refunds for tax paid on fuel used in both reefer and power-take-off (PTO) equipment, but not for idle time. Records must be submitted with the refund form to back up PTO usage figures for a refund. Claims are based upon actual consumption of undyed diesel fuel. The maximum amount of undyed diesel fuel that may be claimed for refund is 25 percent of the fuel consumed, unless prior to submission of the claim the claimant submits a specific study conducted by the claimant and approved by the Department of Revenue for claims in excess of that amount. Approved studies are valid for two years after the date of approval; however, may be extended for an additional two years upon petition of a taxpayer and Department approval (for a total of four years).

Claims may be made electronically and refund status can be checked at mytax.illinois.gov.

Licensed Illinois distributors/suppliers can only request for up to one year from the date tax was paid on the fuel being claimed.

Illinois requires that all special fuel sold or used for non-highway purposes must contain a red solvent dye. The dye must be added prior to the removal from a terminal rack. All containers, storage tanks, or facilities used to store or distribute dyed diesel fuel must display a legible and conspicuous notice stating, “Dyed Diesel Fuel. Non-taxable Use Only.” In addition, the language, “Dyed Diesel Fuel, Non-taxable Use Only, Penalty For Taxable Use” must appear on all bills of lading and invoices accompanying any sale of dyed diesel fuel. Penalties will be imposed on all individuals or companies that do not comply with the requirements.