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Informational
Bulletin
FY 2026-29
June 2026
David Harris, Director
This bulletin is written to inform you of recent changes; it does not replace statutes, rules and regulations, or court decisions.
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Notice to Retailers: Revised Motor Fuel Tax Rate Effective July 1, 2026, through December 31, 2026
To: All Motor Fuel Retailers
Public Act 104-0468, signed June 16, 2026, suspended the scheduled July 1, 2026, Consumer Price Index adjustment related to the motor fuel tax rate for 6 months from July 1, 2026, through December 31, 2026.
Section 2 of the Motor Fuel Tax Law (35 ILCS 505/2) imposes a tax per gallon on all motor fuel (i.e., diesel fuel, gasoline, gasohol, liquefied petroleum gas (LPG, commonly known as “propane”), compressed natural gas (CNG), and liquefied natural gas (LNG)) used in motor vehicles operating on Illinois public highways and in recreational type watercraft operating on Illinois waters. The Law provides that the rate of tax will be increased on July 1 of each year by an amount equal to the percentage increase, if any, in the Consumer Price Index for All Urban Consumers for all items published by the United States Department of Labor for the 12 months ending in March of that year, rounded to the nearest one-tenth of one cent.
Does this change the way retailers report sales of motor fuel on Form ST-1, Sales and Use Tax and E911 Surcharge Return?
No. Retailers must continue to report sales of motor fuel in the same manner. The tax rate in place as of June 30, 2026, will remain in place through December 31, 2026.
Printed by authority of the State of Illinois — Electronic only, One copy