Illinois legislation · 104th General Assembly
Illinois HB5738: USE/OCC TX-MOTOR FUEL
Status: In committee, May 26, 2026
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, from July 1, 2026 through December 31, 2026, use and occupation taxes on motor fuel and gasohol are imposed at the rate of 1.25%. Makes corresponding changes concerning the distribution of proceeds. Effective immediately.
What the bill says
A bill FOR HB5738 LRB104 21291 HLH 36057 b AN ACT concerning revenue.
From the introduced text, April 2, 2026:
A BILL FOR HB5738 LRB104 21291 HLH 36057 b AN ACT concerning revenue. Be it enacted by the People of the State of Illinois, represented in the General Assembly: Section 5. The Use Tax Act is amended by changing Sections 3-10 and 9 as follows: (35 ILCS 105/3-10) from Ch. 120, par. 439.33-10 Sec. 3-10. Rate of tax. Unless otherwise provided in this Section, the tax imposed by this Act is at the rate of 6.25% of either the selling price or the fair market value, if any, of the tangible personal property, which, on and after January 1, 2025, includes leases of tangible personal property. In all cases where property functionally used or consumed is the same as the property that was purchased at retail, then the tax is imposed on the selling price of the property. In all cases where property functionally used or consumed is a by-product or waste product that has been refined, manufactured, or produced from property purchased at retail, then the tax is imposed on the lower of the fair market value, if any, of the specific property so used in this State or on the selling price of the property purchased at retail. For purposes of this Section "fair market value" means the price at which property would change hands between a willing …
Sponsors
- Ryan Spain (R, 73) · primary sponsor
- Amy Elik (R, 111)
- Jackie Haas (R, 79)
- Dan Ugaste (R, 65)
- Tony M. McCombie (R, 89)
- Patrick Windhorst (R, 117)
- Joe C. Sosnowski (R, 69)
- Regan Deering (R, 88)
- Christopher "C.D." Davidsmeyer (R, 100)
- Norine K. Hammond (R, 94)
- Brandun Schweizer (R, 104)
- Charles Meier (R, 109)
Latest actions
- : Added Co-Sponsor Rep. Dan Swanson
- : Added Co-Sponsor Rep. Wayne A. Rosenthal
- : Added Co-Sponsor Rep. Travis Weaver
- : Added Co-Sponsor Rep. Dennis Tipsword
- : Added Co-Sponsor Rep. William E Hauter
- : Added Co-Sponsor Rep. Michael J. Coffey, Jr.
- : Added Co-Sponsor Rep. Nicole La Ha
- : Added Co-Sponsor Rep. Kevin Schmidt
- : Added Co-Sponsor Rep. Jennifer Sanalitro
- : Added Co-Sponsor Rep. Bradley Fritts
Common questions
- What is HB5738?
- HB5738 is a bill in the Illinois Legislature (104th General Assembly): USE/OCC TX-MOTOR FUEL.
- What does HB5738 do?
- In its own words: A bill FOR HB5738 LRB104 21291 HLH 36057 b AN ACT concerning revenue.
- What is the status of HB5738?
- In committee as of May 26, 2026. Latest action: Added Co-Sponsor Rep. Dan Swanson (May 26, 2026).
- Who sponsored HB5738?
- Ryan Spain (R, 73), with 11 co-sponsors.
- Where is the official record for HB5738?
- On the Illinois Legislature website: https://www.ilga.gov/Legislation/BillStatus?DocNum=5738&GAID=18&DocTypeID=HB&SessionID=114
Source: official Illinois record. Tracked by Delilah, AI for legislation across all 50 states and Congress.