MOTOR FUEL-GRADE CROSSING

Illinois General Assembly - Full Text of SB3635

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3635

Introduced 2/5/2026, by Sen. Laura M. Murphy

SYNOPSIS AS INTRODUCED:

35 ILCS 505/8

from Ch. 120, par. 424

Amends the Motor Fuel Tax Law. Provides that the monthly amount
transferred from the Motor Fuel Tax Fund to the Grade Crossing Protection
Fund shall be increased in each fiscal year by the percentage increase, if
any, in the Consumer Price Index for All Urban Consumers for the most
recent 12-month period for which data is available on July 1 of the fiscal
year for which the monthly grade crossing protection amount is calculated.
Effective immediately.
LRB104 20674 JDS 34173 b

A BILL FOR

SB3635
LRB104 20674 JDS 34173 b
1

AN ACT concerning revenue.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Motor Fuel Tax Law is amended by changing
5
Section 8 as follows:

6

(35 ILCS 505/8)

(from Ch. 120, par. 424)
7

Sec. 8.
Distribution of proceeds of tax.
Except as
8
provided in subsection (a-1) of this Section, Section 8a,
9
subdivision (h)(1) of Section 12a, Section 13a.6, and items
10
13, 14, 15, and 16 of Section 15, all money received by the
11
Department under this Act, including payments made to the
12
Department by member jurisdictions participating in the
13
International Fuel Tax Agreement, shall be deposited into a
14
special fund in the State treasury, to be known as the Motor
15
Fuel Tax Fund, and shall be used as follows:
16

(a) 2 1/2 cents per gallon of the tax collected on special
17
fuel under paragraph (b) of Section 2 and Section 13a of this
18
Act shall be transferred to the State Construction Account
19
Fund in the State Treasury; the remainder of the tax collected
20
on special fuel under paragraph (b) of Section 2 and Section
21
13a of this Act shall be deposited into the Road Fund
.

;
22

(a-1) Beginning on July 1, 2019, an amount equal to the
23
amount of tax collected under subsection (a) of Section 2 and

SB3635
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LRB104 20674 JDS 34173 b
1
Section 13a as a result of the increase in the tax rate under
2
subsection (a) of Section 2 authorized by Public Act 101-32
3
shall be deposited each month into the Transportation Renewal
4
Fund; provided, however, that the amount that represents the
5
part (b) portion of the rate under Section 13a shall be
6
deposited each month into the Motor Fuel Tax Fund and the
7
Transportation Renewal Fund in the same proportion as the
8
amount collected under subsection (a) of Section 2
.

;

9

(b) $420,000 shall be transferred each month to the State
10
Boating Act Fund to be used by the Department of Natural
11
Resources for the purposes specified in Article X of the Boat
12
Registration and Safety Act
.

;
13

(c)
The monthly grade crossing protection amount

14
$3,500,000
shall be transferred each month
from the Motor Fuel
15
Tax Fund
to the Grade Crossing Protection Fund
. For fiscal
16
years beginning before July 1, 2026, the monthly grade
17
crossing protection amount is $3,500,000 per month. For fiscal
18
years beginning on or after July 1, 2026, the monthly grade
19
crossing protection amount shall be the monthly grade crossing
20
protection amount for the immediately preceding fiscal year,
21
multiplied by one plus the percentage increase, if any, in the
22
Consumer Price Index for All Urban Consumers (CPI-U), U.S.
23
City Average, as published by the United States Bureau of
24
Labor Statistics, for the most recent 12-month period for
25
which data is available on July 1 of the fiscal year for which
26
the monthly grade crossing protection amount is calculated. In

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LRB104 20674 JDS 34173 b
1
no case shall the monthly grade crossing protection amount be
2
less than the monthly grade crossing protection amount for the
3
preceding fiscal year. Moneys transferred to the Grade
4
Crossing Protection Fund under this subsection (c) shall be

to
5
be
used as follows: not less than $12,000,000 each fiscal year
6
shall be used for the construction or reconstruction of rail
7
highway grade separation structures; $5,500,000 in fiscal year
8
2022 and each fiscal year thereafter shall be transferred to
9
the Transportation Regulatory Fund and shall be used to pay
10
the cost of administration of the Illinois Commerce
11
Commission's railroad safety program in connection with its
12
duties under subsection (3) of Section 18c-7401 of the
13
Illinois Vehicle Code, with the remainder to be used by the
14
Department of Transportation upon order of the Illinois
15
Commerce Commission, to pay that part of the cost apportioned
16
by such Commission to the State to cover the interest of the
17
public in the use of highways, roads, streets, or pedestrian
18
walkways in the county highway system, township and district
19
road system, or municipal street system as defined in the
20
Illinois Highway Code, as the same may from time to time be
21
amended, for separation of grades, for installation,
22
construction or reconstruction of crossing protection or
23
reconstruction, alteration, relocation including construction
24
or improvement of any existing highway necessary for access to
25
property or improvement of any grade crossing and grade
26
crossing surface including the necessary highway approaches

SB3635
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LRB104 20674 JDS 34173 b
1
thereto of any railroad across the highway or public road, or
2
for the installation, construction, reconstruction, or
3
maintenance of safety treatments to deter trespassing or a
4
pedestrian walkway over or under a railroad right-of-way, as
5
provided for in and in accordance with Section 18c-7401 of the
6
Illinois Vehicle Code. The Commission may order up to
7
$2,000,000 per year in Grade Crossing Protection Fund moneys
8
for the improvement of grade crossing surfaces and up to
9
$300,000 per year for the maintenance and renewal of
10
4-quadrant gate vehicle detection systems located at non-high
11
speed rail grade crossings. In entering orders for projects
12
for which payments from the Grade Crossing Protection Fund
13
will be made, the Commission shall account for expenditures
14
authorized by the orders on a cash rather than an accrual
15
basis. For purposes of this requirement an "accrual basis"
16
assumes that the total cost of the project is expended in the
17
fiscal year in which the order is entered, while a "cash basis"
18
allocates the cost of the project among fiscal years as
19
expenditures are actually made. To meet the requirements of
20
this subsection, the Illinois Commerce Commission shall
21
develop annual and 5-year project plans of rail crossing
22
capital improvements that will be paid for with moneys from
23
the Grade Crossing Protection Fund. The annual project plan
24
shall identify projects for the succeeding fiscal year and the
25
5-year project plan shall identify projects for the 5 directly
26
succeeding fiscal years. The Commission shall submit the

SB3635
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LRB104 20674 JDS 34173 b
1
annual and 5-year project plans for this Fund to the Governor,
2
the President of the Senate, the Senate Minority Leader, the
3
Speaker of the House of Representatives, and the Minority
4
Leader of the House of Representatives on the first Wednesday
5
in April of each year
.

;
6

(d)
Of

of
the amount remaining after allocations provided
7
for in subsections (a), (a-1), (b), and (c), a sufficient
8
amount shall be reserved to pay all of the following:
9

(1) the costs of the Department of Revenue in
10

administering this Act;
11

(2) the costs of the Department of Transportation in
12

performing its duties imposed by the Illinois Highway Code
13

for supervising the use of motor fuel tax funds
14

apportioned to municipalities, counties and road
15

districts;
16

(3) refunds provided for in Section 13, refunds for
17

overpayment of decal fees paid under Section 13a.4 of this
18

Act, and refunds provided for under the terms of the
19

International Fuel Tax Agreement referenced in Section
20

14a;
21

(4) from October 1, 1985 until June 30, 1994, the
22

administration of the Vehicle Emissions Inspection Law,
23

which amount shall be certified monthly by the
24

Environmental Protection Agency to the State Comptroller
25

and shall promptly be transferred by the State Comptroller
26

and Treasurer from the Motor Fuel Tax Fund to the Vehicle

SB3635
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LRB104 20674 JDS 34173 b
1

Inspection Fund, and for the period July 1, 1994 through
2

June 30, 2000, one-twelfth of $25,000,000 each month, for
3

the period July 1, 2000 through June 30, 2003, one-twelfth
4

of $30,000,000 each month, and $15,000,000 on July 1,
5

2003, and $15,000,000 on January 1, 2004, and $15,000,000
6

on each July 1 and October 1, or as soon thereafter as may
7

be practical, during the period July 1, 2004 through June
8

30, 2012, and $30,000,000 on June 1, 2013, or as soon
9

thereafter as may be practical, and $15,000,000 on July 1
10

and October 1, or as soon thereafter as may be practical,
11

during the period of July 1, 2013 through June 30, 2015,
12

for the administration of the Vehicle Emissions Inspection
13

Law of 2005, to be transferred by the State Comptroller
14

and Treasurer from the Motor Fuel Tax Fund into the
15

Vehicle Inspection Fund;
16

(4.5) beginning on July 1, 2019, the costs of the
17

Environmental Protection Agency for the administration of
18

the Vehicle Emissions Inspection Law of 2005 shall be
19

paid, subject to appropriation, from the Motor Fuel Tax
20

Fund into the Vehicle Inspection Fund; beginning in 2019,
21

no later than December 31 of each year, or as soon
22

thereafter as practical, the State Comptroller shall
23

direct and the State Treasurer shall transfer from the
24

Vehicle Inspection Fund to the Motor Fuel Tax Fund any
25

balance remaining in the Vehicle Inspection Fund in excess
26

of $2,000,000;

SB3635
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LRB104 20674 JDS 34173 b
1

(5) amounts ordered paid by the Court of Claims; and
2

(6) payment of motor fuel use taxes due to member
3

jurisdictions under the terms of the International Fuel
4

Tax Agreement. The Department shall certify these amounts
5

to the Comptroller by the 15th day of each month; the
6

Comptroller shall cause orders to be drawn for such
7

amounts, and the Treasurer shall administer those amounts
8

on or before the last day of each month
.

;
9

(e)
After

after
allocations for the purposes set forth in
10
subsections (a), (a-1), (b), (c), and (d), the remaining
11
amount shall be apportioned as follows:
12

(1) Until January 1, 2000, 58.4%, and beginning
13

January 1, 2000, 45.6% shall be deposited as follows:
14

(A) 37% into the State Construction Account Fund,
15

and
16

(B) 63% into the Road Fund, $1,250,000 of which
17

shall be reserved each month for the Department of
18

Transportation to be used in accordance with the
19

provisions of Sections 6-901 through 6-906 of the
20

Illinois Highway Code;
21

(2) Until January 1, 2000, 41.6%, and beginning
22

January 1, 2000, 54.4% shall be transferred to the
23

Department of Transportation to be distributed as follows:
24

(A) 49.10% to the municipalities of the State,
25

(B) 16.74% to the counties of the State having
26

1,000,000 or more inhabitants,

SB3635
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LRB104 20674 JDS 34173 b
1

(C) 18.27% to the counties of the State having
2

less than 1,000,000 inhabitants,
3

(D) 15.89% to the road districts of the State.
4

If a township is dissolved under Article 24 of the
5

Township Code, McHenry County shall receive any moneys
6

that would have been distributed to the township under
7

this subparagraph, except that a municipality that assumes
8

the powers and responsibilities of a road district under
9

paragraph (6) of Section 24-35 of the Township Code shall
10

receive any moneys that would have been distributed to the
11

township in a percent equal to the area of the dissolved
12

road district or portion of the dissolved road district
13

over which the municipality assumed the powers and
14

responsibilities compared to the total area of the
15

dissolved township. The moneys received under this
16

subparagraph shall be used in the geographic area of the
17

dissolved township. If a township is reconstituted as
18

provided under Section 24-45 of the Township Code, McHenry
19

County or a municipality shall no longer be distributed
20

moneys under this subparagraph.
21

As soon as may be after the first day of each month, the
22
Department of Transportation shall allot to each municipality
23
its share of the amount apportioned to the several
24
municipalities which shall be in proportion to the population
25
of such municipalities as determined by the last preceding
26
municipal census if conducted by the Federal Government or

SB3635
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LRB104 20674 JDS 34173 b
1
Federal census. If territory is annexed to any municipality
2
subsequent to the time of the last preceding census the
3
corporate authorities of such municipality may cause a census
4
to be taken of such annexed territory and the population so
5
ascertained for such territory shall be added to the
6
population of the municipality as determined by the last
7
preceding census for the purpose of determining the allotment
8
for that municipality. If the population of any municipality
9
was not determined by the last Federal census preceding any
10
apportionment, the apportionment to such municipality shall be
11
in accordance with any census taken by such municipality. Any
12
municipal census used in accordance with this Section shall be
13
certified to the Department of Transportation by the clerk of
14
such municipality, and the accuracy thereof shall be subject
15
to approval of the Department which may make such corrections
16
as it ascertains to be necessary.
17

As soon as may be after the first day of each month, the
18
Department of Transportation shall allot to each county its
19
share of the amount apportioned to the several counties of the
20
State as herein provided. Each allotment to the several
21
counties having less than 1,000,000 inhabitants shall be in
22
proportion to the amount of motor vehicle license fees
23
received from the residents of such counties, respectively,
24
during the preceding calendar year. The Secretary of State
25
shall, on or before April 15 of each year, transmit to the
26
Department of Transportation a full and complete report

SB3635
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LRB104 20674 JDS 34173 b
1
showing the amount of motor vehicle license fees received from
2
the residents of each county, respectively, during the
3
preceding calendar year. The Department of Transportation
4
shall, each month, use for allotment purposes the last such
5
report received from the Secretary of State.
6

As soon as may be after the first day of each month, the
7
Department of Transportation shall allot to the several
8
counties their share of the amount apportioned for the use of
9
road districts. The allotment shall be apportioned among the
10
several counties in the State in the proportion which the
11
total mileage of township or district roads in the respective
12
counties bears to the total mileage of all township and
13
district roads in the State. Funds allotted to the respective
14
counties for the use of road districts therein shall be
15
allocated to the several road districts in the county in the
16
proportion which the total mileage of such township or
17
district roads in the respective road districts bears to the
18
total mileage of all such township or district roads in the
19
county. After July 1 of any year prior to 2011, no allocation
20
shall be made for any road district unless it levied a tax for
21
road and bridge purposes in an amount which will require the
22
extension of such tax against the taxable property in any such
23
road district at a rate of not less than either .08% of the
24
value thereof, based upon the assessment for the year
25
immediately prior to the year in which such tax was levied and
26
as equalized by the Department of Revenue or, in DuPage

SB3635
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LRB104 20674 JDS 34173 b
1
County, an amount equal to or greater than $12,000 per mile of
2
road under the jurisdiction of the road district, whichever is
3
less. Beginning July 1, 2011 and each July 1 thereafter, an
4
allocation shall be made for any road district if it levied a
5
tax for road and bridge purposes. In counties other than
6
DuPage County, if the amount of the tax levy requires the
7
extension of the tax against the taxable property in the road
8
district at a rate that is less than 0.08% of the value
9
thereof, based upon the assessment for the year immediately
10
prior to the year in which the tax was levied and as equalized
11
by the Department of Revenue, then the amount of the
12
allocation for that road district shall be a percentage of the
13
maximum allocation equal to the percentage obtained by
14
dividing the rate extended by the district by 0.08%. In DuPage
15
County, if the amount of the tax levy requires the extension of
16
the tax against the taxable property in the road district at a
17
rate that is less than the lesser of (i) 0.08% of the value of
18
the taxable property in the road district, based upon the
19
assessment for the year immediately prior to the year in which
20
such tax was levied and as equalized by the Department of
21
Revenue, or (ii) a rate that will yield an amount equal to
22
$12,000 per mile of road under the jurisdiction of the road
23
district, then the amount of the allocation for the road
24
district shall be a percentage of the maximum allocation equal
25
to the percentage obtained by dividing the rate extended by
26
the district by the lesser of (i) 0.08% or (ii) the rate that

SB3635
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LRB104 20674 JDS 34173 b
1
will yield an amount equal to $12,000 per mile of road under
2
the jurisdiction of the road district.
3

Prior to 2011, if any road district has levied a special
4
tax for road purposes pursuant to Sections 6-601, 6-602, and
5
6-603 of the Illinois Highway Code, and such tax was levied in
6
an amount which would require extension at a rate of not less
7
than .08% of the value of the taxable property thereof, as
8
equalized or assessed by the Department of Revenue, or, in
9
DuPage County, an amount equal to or greater than $12,000 per
10
mile of road under the jurisdiction of the road district,
11
whichever is less, such levy shall, however, be deemed a
12
proper compliance with this Section and shall qualify such
13
road district for an allotment under this Section. Beginning
14
in 2011 and thereafter, if any road district has levied a
15
special tax for road purposes under Sections 6-601, 6-602, and
16
6-603 of the Illinois Highway Code, and the tax was levied in
17
an amount that would require extension at a rate of not less
18
than 0.08% of the value of the taxable property of that road
19
district, as equalized or assessed by the Department of
20
Revenue or, in DuPage County, an amount equal to or greater
21
than $12,000 per mile of road under the jurisdiction of the
22
road district, whichever is less, that levy shall be deemed a
23
proper compliance with this Section and shall qualify such
24
road district for a full, rather than proportionate, allotment
25
under this Section. If the levy for the special tax is less
26
than 0.08% of the value of the taxable property, or, in DuPage

SB3635
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LRB104 20674 JDS 34173 b
1
County if the levy for the special tax is less than the lesser
2
of (i) 0.08% or (ii) $12,000 per mile of road under the
3
jurisdiction of the road district, and if the levy for the
4
special tax is more than any other levy for road and bridge
5
purposes, then the levy for the special tax qualifies the road
6
district for a proportionate, rather than full, allotment
7
under this Section. If the levy for the special tax is equal to
8
or less than any other levy for road and bridge purposes, then
9
any allotment under this Section shall be determined by the
10
other levy for road and bridge purposes.
11

Prior to 2011, if a township has transferred to the road
12
and bridge fund money which, when added to the amount of any
13
tax levy of the road district would be the equivalent of a tax
14
levy requiring extension at a rate of at least .08%, or, in
15
DuPage County, an amount equal to or greater than $12,000 per
16
mile of road under the jurisdiction of the road district,
17
whichever is less, such transfer, together with any such tax
18
levy, shall be deemed a proper compliance with this Section
19
and shall qualify the road district for an allotment under
20
this Section.
21

In counties in which a property tax extension limitation
22
is imposed under the Property Tax Extension Limitation Law,
23
road districts may retain their entitlement to a motor fuel
24
tax allotment or, beginning in 2011, their entitlement to a
25
full allotment if, at the time the property tax extension
26
limitation was imposed, the road district was levying a road

SB3635
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LRB104 20674 JDS 34173 b
1
and bridge tax at a rate sufficient to entitle it to a motor
2
fuel tax allotment and continues to levy the maximum allowable
3
amount after the imposition of the property tax extension
4
limitation. Any road district may in all circumstances retain
5
its entitlement to a motor fuel tax allotment or, beginning in
6
2011, its entitlement to a full allotment if it levied a road
7
and bridge tax in an amount that will require the extension of
8
the tax against the taxable property in the road district at a
9
rate of not less than 0.08% of the assessed value of the
10
property, based upon the assessment for the year immediately
11
preceding the year in which the tax was levied and as equalized
12
by the Department of Revenue or, in DuPage County, an amount
13
equal to or greater than $12,000 per mile of road under the
14
jurisdiction of the road district, whichever is less.
15

As used in this Section, the term "road district" means
16
any road district, including a county unit road district,
17
provided for by the Illinois Highway Code; and the term
18
"township or district road" means any road in the township and
19
district road system as defined in the Illinois Highway Code.
20
For the purposes of this Section, "township or district road"
21
also includes such roads as are maintained by park districts,
22
forest preserve districts and conservation districts. The
23
Department of Transportation shall determine the mileage of
24
all township and district roads for the purposes of making
25
allotments and allocations of motor fuel tax funds for use in
26
road districts.

SB3635
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LRB104 20674 JDS 34173 b
1

Payment of motor fuel tax moneys to municipalities and
2
counties shall be made as soon as possible after the allotment
3
is made. The treasurer of the municipality or county may
4
invest these funds until their use is required and the
5
interest earned by these investments shall be limited to the
6
same uses as the principal funds.
7
(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
8
102-699, eff. 4-19-22; 103-8, eff. 6-7-23.)

9

Section 99.
Effective date.
This Act takes effect upon
10
becoming law.

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