As gas prices continue to soar, State Senator Sally Turner (R-Beason) is cosponsoring newly filed legislation that would help alleviate the growing burden by immediately capping the state’s sales tax on motor fuel at 18 cents per gallon.
“As gas prices skyrocket, we have the potential to see the average price across the entire state exceed five dollars per gallon,” said Senator Sally Turner. “This legislation will ensure that Illinoisans aren’t unnecessarily harmed by global events beyond their control by capping our state’s sales tax on motor fuel at the same level they were paying before prices dramatically increased.”
Senate Bill 4195 could help Illinois consumers save nearly $1 billion over the next fiscal year, or 16 cents per gallon, assuming gas prices are at $5.50 per gallon. Additionally, the measure would continue to provide adequate funding for Illinois’ infrastructure projects.
“This plan will ensure that critically-needed projects are still properly funded while also providing relief for the people of our state who are currently experiencing generational high inflation,” continued Senator Sally Turner. “Illinois lawmakers must act quickly to pass this legislation, so our constituents can have some level of reprieve before the situation gets too out of hand.”
While both the state and federal motor fuel taxes are a flat tax rate, which means the tax does not change with price of fuel, Illinois is one of only seven states that also charges a sales tax at 6.25 percent on top of the motor fuel tax. As gas prices continue to rise, so does the amount consumers pay in sales tax.
The legislation was filed on March 10th and has already received over a dozen cosponsors.