Illinois Gas Tax Decrease Proposed

The proposal reduces the state’s gas tax by 5%.

January 23, 2014

CHICAGO – Illinois gubernatorial candidate Kirk Dillard has proposed a reduction in the state’s sales tax on gasoline, MyStateline.com reports.

Dillard’s proposal reduces the gas tax by 5% while leaving the local government portion undisturbed. He estimates the plan would save taxpayers roughly $450 million at the pump. “Families need a break, especially when the economy is this tough. This is money they can use for school supplies, new clothes for kids, and books,” Dillard said.

Dillard noted that Illinois is one of just seven states that charge sales tax at the pump.  Most other states assess an excise tax, or set amount per gallon no matter the price of a gallon of gas.

Illinois levies an 18-cents per gallon excise tax and collects a little more than that in sales taxes and other fees. Combined, the state has the country’s 5th highest gas tax at nearly 40 cents per gallon. By contrast, neighboring Iowa charges roughly 22 cents per gallon and Wisconsin drivers pay approximately 33 cents per gallon.

For Chicagoans, the taxes stack up: Motorists pay a federal fuel tax of 18.4 cents, a state fuel tax of 19 cents, Cook County and City fuel taxes of 11 cents, and an Illinois environmental tax of 1.1 cents — all before sales tax is assessed. As a result, gas prices in Chicago are among the highest in the country.

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