Motor Fuel Tax Funds

The Motor Fuel Tax Funds that the Village of Seneca receives are distributed by the State of Illinois from taxes on gasoline and diesel fuel. After the State funds various administrative, regulatory, railroad, and boating requirements, the balance of the funds are allotted monthly to Counties, Townships, and Municipalities, with municipalities receiving about 27% of those available funds. A municipality's share of the total MFT municipal allocation is based on the ratio of that municipality's population to the total population of all incorporated areas in the State. The allotment of each municipality is not based on the total fuel tax collected within that municipality's boundary. It is based on State wide sales.

Uses of Motor Fuel Tax Funds are restricted to the following uses:

  • Construction and Maintenance of Municipal Streets and Extensions, Municipal Alleys, County Highways and Extensions, State Highways, and Federal-aid Routes within the municipality
  • Bicycle Signs, Paths, Lanes, or Bicycle Parking Facilities Storm Sewers
  • Traffic Control and School Crossing Signals
  • Grade Separations and Approaches
  • Off-Street Parking Facilities
  • Street Lighting Systems
  • Pedestrian Subway or Overhead Crossings
  • Sidewalks and Pedestrian Paths
  • Non-dedicated Subdivision Roads established before July 23, 1959

Allotment of Funds for:

  • Matching Federal-aid Funds
  • Engineering Services
  • Retirement of Indebtedness
  • Local Mass Transit Districts
  • Motor Vehicle Safety Inspection Lanes Operation and Maintenance
  • Payment of Principal and Interest on Road Bonds
  • Engineering Investigation
  • Toll Bridge Studies

Although the Statutes do not explicitly state that MFT funds can be used for the work items below, IDOT has determined that the costs for these items are eligible if they are related to MFT maintenance or construction.

  • Curb Ramps
  • Right-of-Way
  • Salt Storage Facilities
  • Wages or Salaries
  • Equipment Operations Costs
  • Holidays, Vacation, and Sick Leave
  • Tree Trimming and Tree Removal
  • Worker's Compensation Insurance Premiums
  • Retirement Fund and Social Security Fund
  • Miscellaneous Expenses in Connection with Bond Issue Improvements
  • Railroad Signal Protection and Crossing Work
  • Utility Adjustments
  • Health, Hospitalization, and Life Insurance.