While several states have paused gas tax increases in wake of soaring fuel prices, Illinois hasn’t followed suit, even as Gov. JB Pritzker has said such a move is an option.
The possibility remains on the table, but time is running out, with Illinois lawmakers set to wrap up their legislative session on Sunday. When asked by reporters earlier this week whether this year’s hike could be paused, Pritzker said, “We’ll see.”
“As you know, we now are one of the best states in the country for infrastructure. But that’s because we’re making the investments that come from the motor fuel, tax that gets imposed,” he said. “ I think we can we have enough here so that we could make some sort of pause. But I think that’s something the legislature is going to consider over the coming week. We’ll see.”
Illinois’ gas tax increases every July 1, indexed for inflation, to provide funding for infrastructure projects around the state, under provisions of a 2019 law passed by the General Assembly. Lawmakers have floated the possibility of either pausing or reducing the fuel tax in light of skyrocketing prices, with affordability concerns front and center in Springfield.
On July 1, the state’s gas tax is set to go up by 2.7%, increasing to $0.496 per gallon according to officials. The tax on diesel fuel will go up by 2.3%, rising to $0.571 per gallon.
Illinois also assesses sales taxes on fuel, and local home rule units can assess their own taxes.
Indiana has suspended both its fuel tax and its sales tax on gasoline purchases, a move Gov. Mike Braun said saves residents nearly $0.60 per gallon in fuel taxes.
