Local Motor Fuel Tax

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City of Belvidere passed a Local Motor Fuel Tax as of July 16th, 2018

 

Frequently Asked Questions

Local Motor Fuel Tax

What is the Local Motor Fuel Tax?

As a home rule municipality, the City of Belvidere can adopt local option taxes. The Local Motor Fuel Tax (LMFT) is levied upon the purchase of motor fuel sold at retail within the corporate limits of the City.

 

What is the Tax Rate?

The tax rate is set at two cents ($0.02) per gallon on gas and diesel fuel.

20 Gallons of fuel per week - $21.00 per year

25 Gallons of fuel per week - $26.00 per year

30 Gallons of fuel per week - $31.00 per year

When does the Tax go into effect?

The LMFT will go into effect on September 1, 2018.

         

How will the City use the LMFT Revenue?

The tax is estimated to generate $200,000-$300,000 annually in new revenue that will be used for road improvements throughout the city. It will also help pay for the rising cost of police and fire pensions.

What is the Process for collecting and remitting taxes collected?

Retailers must first complete a registration form that was mailed out in July and is also on the City website. The registration form should be completed and submitted to the City no later than August 17, 2018.  Retailers must remit each month’s tax collections along with a remittance form. The remittance form and taxes collected to the City of Belvidere must be submitted no later than the 20th of the month following the month of collection. In other words, taxes paid by customers in September of 2018 must be remitted to the City by October 20, 2018.

Who can I contact with additional questions?

You may call the Finance Department at 815-544-2612 with questions about the tax rate, remittance deadlines, etc. Additionally, any forms required can be found on the City website at www.ci.belvidere.il.us.

 

Local Motor Fuel Tax Ordinace CLICK HERE

Local Motor Fuel Tax Application for Registration

Local Motor Fuel Tax Return Form

Local Motor Fuel Tax Return for Multiple Locations Form