SPRINGFIELD – A lawmaker in Illinois has proposed a bill to remove the state’s 6.25% sales tax on motor fuel sales. Rep. Sue Scherer’s bill would leave the state motor fuels tax in place.
“The people I represent are frustrated by high gas prices, and high state sales taxes that add to their burden,” Scherer said. “By cutting some of the taxes that are contributing to our pain at the pump, this bill offers much-needed relief.”
The bill proposes permanently removing the tax, starting July 1, 2014. The sales tax includes 5% that the state receives, 1% goes to municipal governments, and 0.2% goes to county government. The state’s 5% portion represented $779 million last fiscal year, according to Sue Hofer, spokesperson for the Illinois Department of Revenue.
Hofer said the 6.25% sales tax is generally applied to the base fuel price, and is also charged on federal and local taxes which are part of the fuel price. It is not, however, levied on the state motor fuel tax, which is currently 19 cents per gallon in Illinois.
I suspect the funding that would be lost from this proposal is already connected to projects. Further, I suspect when these connections are made known, the energy behind this effort will be compromised. Eliminating the tax does not eliminate the need for the projects. JN