Bill > HB2736

This bill amends the Motor Fuel Tax Law to create a new tax exemption for marine fuel, which is defined as motor fuel specially formulated to be used in propelling watercraft. Specifically, the bill adds a new definition of "marine fuel" to the law and establishes that starting July 1, 2025, marine fuel will be exempt from the motor fuel tax that is currently imposed on fuel used in motor vehicles and recreational watercraft. The existing law already imposes a tax on motor fuel used in vehicles and watercraft, with varying tax rates over time that have been adjusted periodically based on factors like the Consumer Price Index. By creating this exemption, the bill will reduce the tax burden for users of marine fuel, potentially making boating and water transportation slightly less expensive after the 2025 implementation date. The bill takes effect immediately upon becoming law, though the marine fuel tax exemption itself does not commence until July 1, 2025.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2736&GAID=18&DocTypeID=HB&SessionID=114&GA=104