Illinois Department of Revenue
Motor Fuel

General Overview

old gas pumps

The Motor Fuel Tax is imposed on the privilege of operating motor vehicles on public highways and recreational watercraft on waterways in Illinois. It is paid by distributors and suppliers, who collect the tax from their customers.

Statutory reference

Can I sell special fuel tax free?

Yes - if you are a licensed distributor or supplier, you may sell special fuel tax free if:
  • your customer is a licensed supplier of special fuel
  • your customer is a licensed motor fuel distributors
  • your customer is the federal government or one of its instrumentalities
  • your customer is a municipal corporation owning and operating a local transportation system for public service in Illinois
  • your customer is a privately owned public utility owning and operating certain transportation systems
  • your sale is one in which delivery is made outside Illinois
  • your customer uses fuel in a non-recreational type watercraft
  • your customer uses gasoline for propulsion of an aircraft
  • your customer uses dyed diesel for off-highway use only

How do I report gasohol?

For reporting purposes, gasohol is classified in the same category as gasoline.

I received an assessment because I reported "net" gallons, and my supplier reported "gross" gallons. What is the correct way to report in Illinois?

File your returns in the way in which you were billed. If you were billed "net", report "net". If you were billed "gross", report "gross".

If I receive a pre-assessment or notice of assessment for failing to report a shipment sold to my company, then find I reported the wrong bill of lading or invoice number, how do I correct this?

You can fix it with two simple entries on the applicable schedule - the reversal of the original entry (shown in parenthesis), and the corrected entry directly below it (not in parenthesis). It is not necessary to send the entire schedule detailed out.

Am I required to file motor fuel schedules on magnetic media?

Yes. We've been requiring that schedules be filed via magnetic media since July 1, 1994.

Where do I get information on how to file my support schedules using magnetic media?

Please call us at 217 782-2291 and we will mail you a magnetic media guide.
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