Illinois Fuel Tax Case Opens Door to More Expansive Tax Rules

Marathon Petroleum Co. will try to convince the Illinois Supreme Court at oral arguments Thursday to overturn a $15 million motor fuel tax bill and in the process urge the court to put the brakes on localities expanding their reach and taxing intangible assets.

The petroleum refiner asked the state justices to review a 2022 state appeals court decision holding that the Cook County Department of Revenue properly imposed its motor fuel tax on “book-out transactions,” which involved paying cash to settle a contract to deliver fuel on a specific date.

The motor fuel industry is watching the case closely, ...