(The Center Square) – Illinois motorists already pay among the highest gas taxes in the country and legislation at the statehouse could make that higher.
House Bill 1283 would allow all municipalities, not just larger home rule communities, to impose a motor fuel tax on top of the state’s gas tax. The measure was scheduled in committee Thursday, but was not brought up.
Illinois Fuel and Retail Association CEO Nate Harris opposes the measure as bad for customers.
“Any increase in the gas tax is regressive against the low income folks here in this state and we think that increasing taxes like this just hurts regular individuals,” Harris told The Center Square Thursday.
Last month, Illinois Municipal League CEO Brad Cole said their members need the extra revenue.
“When somebody says ‘look, I’m willing to pay an extra penny or two if we can fix the potholes,’ then we would be able to do that,” Cole said. “That’s the balance.”
Illinois’ state gas tax is 47 cents. If HB 1283 is enacted, all municipalities could increase the local gas tax by 3 more cents.
Illinois Fuel and Retail Association CEO Nate Harris and Illinois Municipal League CEO Brad Cole separately discuss a measure to allow local municipalities to increase the local gas tax.
Cole said if approved, increasing the tax locally could be difficult, but makes sense.
“They also know that the investment is in the community,” Cole said. “It’s not going to a different community. It’s not going to something they can’t see. It’s actually an investment in their community.”
Harris reiterated that taxpayers and convenient stores can’t afford it. He said people are already going across the border to fill up in neighboring states with cheaper gas.
“Then when they’re over there, they’re buying cigarettes, they’re buying other retail items and they’re bringing them back to the state so the state is losing out on that revenue as well,” Harris said.
HB 1283 remains in the House Revenue and Finance Committee.
