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ILLINOIS
GASOLINE TAXES RISE TO NO. 2 IN NATION
Illinois Policy Institute/
Noah Shaar
Illinois drivers now pay the second-highest
taxes on their gasoline in the nation, a new survey found. Before the
state doubled the gas tax, Illinois ranked much lower. |
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 Illinois was No. 10 just a few years ago, but diligent efforts
by politicians mean Illinois is now No. 2 for the taxes paid on a gallon of
gas.
The American Petroleum Institute just broke down the taxes on gas in each state
and found Illinois charges 77.96 cents per gallon with both federal and state
taxes and fees combined. That is No. 2 in the U.S., up from third place after
Illinois doubled its gas tax in 2019 and 10th place before the tax hike.
The top spot was claimed by California, which charges 85.38 cents a gallon.
Alaska was lowest at 33.38 cents.
The second-lowest gas tax state is a problem for Illinois retailers. Missouri
charges 35.82 cents in taxes, meaning the same gallon of gas in Illinois costs
42 cents a gallon more.
You see a lot of Illinois license plates at gas stations just
across the state line in both Missouri and Indiana, said Robert Forsyth,
president of Moto Inc. He is based in Belleville, Illinois, and operates 79 Moto
Mart gas and convenience stores in six Midwest states. Indiana taxes are nearly
20 cents cheaper.
Its politically expedient to say you care, but when you pass regressive taxes
like this it shows you do not really care about the rest of the state or your
poor, Forsyth said.
He said low-income families tend to drive older, larger cars that are not as
fuel efficient.
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Every state pays an 18.4 cent federal excise fee.
The state excise tax of 39.2 cents makes up the bulk of the tax in
Illinois after doubling from 19 cents. State leaders now can avoid
voting on politically unpopular gas tax hikes because they tied
future taxes to inflation, with automatic increases every July 1.
Drivers pay another 20 cents per gallon in other
state taxes and fees. Illinois is one of seven states that levies
sales tax on top of gas taxes, which is essentially taxing the
taxes.
The average Illinoisan will pay $11.55 in taxes for 15 gallons of
gas. During the course of a year, the average gasoline tax is $408
per driver $105 a year more than before Illinois doubled the gas
tax in 2019.
 It gets worse for Chicago drivers.
Chicago charges $1.02 per gallon in taxes by including city and Cook
County taxes and fees. Each fill-up includes $15.33 in taxes, which
add up to an average of $534 in gas taxes a year.
As inflation creeps upward, so, too, with the automatically
increasing Illinois state gas taxes. Given a few years, Illinois
might pass California for the No. 1 spot. |
