Motor Fuel Tax Funds By WILLIAM T. SUNLEY, Engineer of Local Roads and Streets Illinois Department of Transportation

Public Act 86-16 was signed into law on June 30, 1989, and became effective August 1, 1989. This Act increased the motor fuel tax from 13 cents per gallon to 19 cents per gallon. The tax is imposed in two three-cent increments, one became effective August 1, 1989, and the other becoming effective January 1, 1990. Due to this tax increase, MFT revenues experienced an increase during calendar year 1989. The MFT allotments you received during the months of October, November, and December did contain some of the new money. In fact, without the additional revenue from the tax increase, your total 1989 allotments would have been essentially the same as those for 1988. You should begin receiving more of the new money with the allotment you receive in March of 1990. We have anticipated that when the full six cent increase is collected, your allotments will increase by approximately 22 percent as long as fuel consumption remains essentially constant.

Gross collections, which included $84,400,758.35 of sales tax revenue were 5.23 percent above calendar year 1988. This increase was partially offset by an increase in the cost of administering the Vehicle Inspection Fund and resulted in a 3.48 percent increase in all local agency MFT allotments. Approximately 10 cents of every dollar you received during 1989 was a direct result of the 2.5 percent (1.7 percent since 7-1-89) of the total net sales tax deposited in the motor fuel tax fund each month.

The chart below shows Illinois' motor fuel tax revenues that were distributed in calendar year 1989. Municipalities received $17.96 per person, up from $17.50 last year. Road Districts received $799.22 per mile, up from $772.22 last year. Counties receive their allotments on the basis of registered license fees for the previous year.

MOTOR FUEL TAX ALLOTMENT STATISTICS (Distribution of CY 89)
			% of change from 1988
Motor Fuel Tax..................................		$788,558,570.05
Sales Tax .......................................		84,400,758.35
GROSS COLLECTIONS .....................		$872,959,328.40	+ 5.23
DEDUCTIONS
Vehicle Inspection Fund ..........................	$ 21,698,216.00		+ 28.98
Secretary of State ................................	475,700.00		- 19.47
State Construction Fund ..........................	258,866,608.53		- 1.03
Transferred to Road Fund ........................	64,879,842.41		+109.04
Highway Administration..........................	7,212,453.23		+ 9.86
Revenue Administration ..........................	15,591,873.91		+ 23.14
Refunds ........................................	17,322,814.66		- 2.51
State Boating Act Fund ...........................	4,284,000.00		+ 6.25
All-Terrain Vehicle Safety Fund ...................	39,870.00		N.A.
	$390,371,378.74	$390,371,378.74
		$482,587,949.66
ALLOCATIONS
Dept. of Trans. (Road Fund) ......................	$122,943,722.69	$122,943,722.69	- 6.12
Less Grade X-ing Fund ...........................	13,500,000.00
	$109,443,722.69
Municipalities ...................................	$176,573,381.22		+ 3.48
Counties Over 1,000,000 Pop.......................	60,200,446.68		+ 3.48
All Other Counties ...............................	65,712,699.05		+ 3.48
Road Districts ...................................	57,157,700.02		+ 3.48
	$359,644,226.97	$359,644,226.97
Credits to: Robert F. Steskal, Section Chief of Administrative Services.		$482,587,949.66

January 1990 / Illinois Municipal Review / Page 13

Each month your motor fuel tax allotment varies directly with the total monthly motor fuel tax collection (including the sales tax) which are deposited in the State Treasury. Should you have questions concerning your motor fuel tax allotment or should you not receive your monthly allotment by the end of the following month, please call Frank McCarthy in the Bureau of Local Roads and Streets in Springfield at (217) 785-5179 •

Page 14 / Illinois Municipal Review / January 1990