Form Mf 04-7 - Motor Fuel Distributor - 5 Day Revocation Page 8
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10Q. ’97 or’98?
A. ’97 or ’98 is when we purchased.
Q. And that increased your gallons and therefore your liability?
A.
Yeah, it would have almost doubled our motor fuel tax
liability.
Q. All right. And then at some point you subsequently sold ?
A. I believe that was in May of 2000. (Tr. pp. 12-13)
ABC admitted that it sold the truck stop in 2000 but that its liabilities for which it was put on a
payment plan with the Department were for May and June of 2003. It is therefore unclear when
the $86,000 check was written. However, it is certainly clear that ABC has had and continues to
have “cash flow problems.”
Ms. Doe is the Vice-President of ABC and does all of the
accounting work. She is the one responsible for filing the tax returns and has done so for the last
six years. (Tr. pp. 8-9)
The Department issued the first request for a bond in 2000, yet only in the latter part of
2003 did ABC change its method of operations so that it did not have “cash flow problems” with
the Department.
ABC, at the time of the hearing, admittedly owed the Department close to
$100,000 and has annual gross sales in the amount of $8,000,000. Motor fuel tax liabilities can
accrue rapidly. Ms. Doe admitted that it is “easier to pay as we go along as to once a month
choking up a huge check for $50,000.” (Tr. p. 15)
The motor fuel use tax, a subsection of the Act, also has licensure and bonding
requirements. The Department’s rules, promulgated pursuant to the authority found at 35 ILCS
505/14, state:
Bonds are not required for first-time applicants. However, bond[s]
may be required for just cause, as determined by the Department.
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