Association may still pursue challenge to ‘ridiculous’ gas tax pump sticker mandate

[July 09, 2022]  By Greg Bishop | The Center Square

(The Center Square) – Enforcers are out checking Illinois gas pumps for a state-mandated sticker announcing the delayed gas tax increase, but there are no reports of $500 daily fines being issued yet for businesses that don’t post the notice.

Illinois Fuel and Retail Association's Josh Sharp said now more than a week in, he’s heard from most of his members that they’re complying with the mandate. And, he hears inspectors with the Illinois Department of Agriculture are out to enforce.

“I don’t believe anyone that I know of has been cited yet for a fine but they are out there checking, which leads me to believe that if they did find someone without it on the pump then they would fine them, but so far I’m not aware of any,” Sharp told The Center Square.

During its spring legislative session, state lawmakers decided to postpone from July 1 to Jan. 1 an annual increase, estimated at about 2 cents, to the state's gas tax tied to inflation and required gas station operators to post stickers on their pump informing motorists of that delay or face $500 daily fines. Gov. J.B. Pritzker signed the mandate into law.

Sharp said the requirement is ridiculous and consumers are smart enough to see through it.

“There’s no consumer protection here,” Sharp said. “There’s nothing to even inform consumers about. The tax is the same now as it was before July 1.”

A spokesperson with the Illinois Department of Revenue, which is enforcing the mandate, said late Friday there have been pumps found without the sticker. They did not disclose how many. No penalties have been assessed at this time.

“Those found in violation are given a notice of violation by the Department of Agriculture and passed along to the Department of Revenue,” said IDOR spokesperson Maura Kownacki. “Through an inter-agency agreement, IDOA Bureau of Weights & Measures inspectors look for the notices as part of their regular inspections.

Some stickers are computer paper stuck to the pump with scotch tape. Other stickers have additional text provided by the retail association with more context about lawmakers more than doubling the state’s gas tax since 2019. Illinois has the highest gas tax in the Midwest and second-highest in the country.

A picture of a state-mandated sign on a gas pump in Riverton, Illinois - Greg Bishop / The Center Square

The average price of a gallon of gasoline in Illinois on Friday was $5.20 a gallon, according to AAA, nearly 50 cents higher than the national average of $4.72. Illinois high gas taxes are a big reason why.

Sharp said while his members are complying with the state mandate, whether the stickers will stay put is tough to say.

“People vandalize things, they take things off the pump, the wind could blow them off, you could have a strong storm, who knows,” Sharp said. “But, they’re making every effort to make sure that they stay on the pumps.”

To the question about signs that may be ripped off by a vandal, or by weather or other circumstances beyond the control of the gas station owner, Kownacki the said review would be case-by-case.

“The law dictates that failure to post the sign is a petty offense punishable by a fine,” Kownacki said. “The goal is not to issue fines, but rather encourage compliance and to also ensure that consumers are informed about the tax relief to ensure they are paying no more than they should.”

Sharp said while a federal court dismissed their challenge to what his association says is forced political speech during an election year, their lawsuit against the mandate is still alive in state court.

“Our case has actually been remanded back to Illinois state court and we are considering pursuing the case back in Sangamon County,” Sharp said.

He said they’ll have to decide whether to pursue the case in state court in the next few weeks.

The sticker requirement expires Jan. 1, when the gas tax will then increase.

Greg Bishop reports on Illinois government and other issues for The Center Square. Bishop has years of award-winning broadcast experience and hosts the WMAY Morning Newsfeed out of Springfield.