HB 3502

Abstract

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2008, with respect to motor vehicles of the first division manufactured in model year 2008 and thereafter, the rate of tax under the Acts depends on the vehicles' annual fuel-cost rating within the class of vehicle to which it belongs, as determined by the U.S. Department of Energy and the U.S. Environmental Protection Agency. Requires the Department of Revenue to post information on its Internet website concerning the tax rates. Provides that the annual fuel-cost rating for a flexible-fuel vehicle is determined by its annual fuel cost when operated on gasoline, rather than by its annual fuel cost when operated on a mixture of gasoline and ethanol. Makes corresponding changes in provisions concerning the distribution of the tax proceeds. Makes other changes.