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House Bill 1283 would allow all municipalities, not just larger
home rule communities, to impose a motor fuel tax on top of the
state’s gas tax. The measure was scheduled in committee
Thursday, but was not brought up.
Illinois Fuel and Retail Association CEO Nate Harris opposes the
measure as bad for customers.
“Any increase in the gas tax is regressive against the low
income folks here in this state and we think that increasing
taxes like this just hurts regular individuals,” Harris told The
Center Square Thursday.
Last month, Illinois Municipal League CEO Brad Cole said their
members need the extra revenue.
“When somebody says ‘look, I’m willing to pay an extra penny or
two if we can fix the potholes,’ then we would be able to do
that,” Cole said. “That’s the balance.”
Illinois’ state gas tax is 47 cents. If HB 1283 is enacted, all
municipalities could increase the local gas tax by 3 more cents.
Cole said if approved, increasing the tax locally could be
difficult, but makes sense.
“They also know that the investment is in the community,” Cole
said. “It’s not going to a different community. It’s not going
to something they can’t see. It’s actually an investment in
their community.”
Harris reiterated that taxpayers and convenient stores can’t
afford it. He said people are already going across the border to
fill up in neighboring states with cheaper gas.
“Then when they’re over there, they’re buying cigarettes,
they’re buying other retail items and they’re bringing them back
to the state so the state is losing out on that revenue as
well,” Harris said.
HB 1283 remains in the House Revenue and Finance Committee. |
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