The state of Illinois’ gas tax is about due for its yearly increase, but could the hike be paused in light of soaring fuel prices?
Under provisions of a 2019 law passed by the General Assembly, Illinois’ gas tax increases every July 1, indexed for inflation, to provide funding for infrastructure projects around the state.
With this year’s increase set by lawmakers, will they consider hitting the pause button on the uptick? Illinois Gov. JB Pritzker was asked that question during a press availability in Champaign on Tuesday.
“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.”
The legislative session will run through May 31, with a host of new laws and the state’s budget still to be passed in Springfield. Affordability concerns have been paramount during talks in the capital, and there has been some speculation on whether the state would seek to either pause or reduce their fuel tax in light of skyrocketing prices.
Pritzker was critical of the Trump administration’s decision to continue the conflict in Iran, which has sent prices soaring in recent months.
“It’s a war of choice that’s led to that. He took us into that war. He should get us out of that war,” the governor said. “So that’s the very first and most important thing that we can do to lower gas prices. I think secondly, we in the state can look at doing what I already did a few years ago, which is to suspend the increase in the gas tax, the automatic increase, and look at other ways to lower gas tax, gas costs.”
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.
The idea of suspending the gas tax increase comes as other states have suspended their taxes entirely, including Indiana, which has suspended both its fuel tax and its sales tax on gasoline purchases.
In all, the measures aimed to save Indiana residents nearly $0.60 per gallon in fuel taxes, according to Gov. Mike Braun.
“Making life more affordable for Hoosiers will always be my top priority,” the governor said in a statement. “Suspending both the gas tax and excise tax gives Hoosiers meaningful relief for the next month.”
There’s no indication Illinois will take similar steps, with Pritzker and other lawmakers citing concerns about funding shortfalls for road construction and other infrastructure improvements if those revenues were impacted by such a move.
