Illinois Fuel Tax Case Opens Door to More Expansive Tax Rules

Leanne Sobel, partner in Weaver’s Motor Fuels and Excise Tax Services, sat with Bloomberg Tax to discuss Marathon Petroleum’s appeal of a $15 million fuel tax ruling before the Illinois Supreme Court. The case challenges Cook County’s taxation of intangible transactions, which could set a precedent for broader tax implications across industries.

“The motor fuel industry is watching the case closely, as the ‘appellate court’s interpretation deviates from a decades-long understanding’ that fuel taxes require the actual sale or transfer of fuel, according to Leanne Sobel, a partner at Weaver and Tidwell LLP. If that decision is upheld, any industry that that transacts in intangible interests in commodities could ‘cease transactions within Illinois altogether,’ said Sobel, who specializes in motor fuel taxes.”

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