With gasoline prices at the pump topping well over $4 per gallon and expected to continue to climb with projections of over $5 per gallon, State Senator Terri Bryant (R-Murphysboro) is joining State Senators Dave Syverson (R-Cherry Valley) and Donald DeWitte (R-St. Charles) to cosponsor legislation that would help alleviate the growing burden by immediately capping the state’s sales tax on motor fuel at 18 cents per gallon.
“It is critical that the General Assembly acts immediately to provide some kind of relief to Illinoisans struggling to keep up with skyrocketing gas prices and surging inflation,” said Sen. Bryant. “This newly filed legislation responsibly addresses soaring prices at the pump by capping our state’s sales tax on gas at the same rate it was before prices steeply spiked.”
Senate Bill 4195 could help Illinois consumers save nearly $1 billion over the next fiscal year, or 16 cents per gallon, assuming gas prices are at $5.50 per gallon. Additionally, the measure would continue to provide adequate funding for Illinois’ infrastructure projects.
“With gas prices continuing to skyrocket, we could easily see the average price of gas to be around five dollars per gallon. We would be providing relief at the pump now, and then preventing any future sales tax increase,” said Sen. Syverson. “We must pass emergency relief legislation before we leave this spring session. The government has no business capitalizing on a crisis at the expense of struggling families across the state.”
While both the state and federal motor fuel taxes are a flat tax rate, which means the tax does not change with price of fuel, Illinois is one of only seven states that also charges a sales tax at 6.25 percent on top of the motor fuel tax. As gas prices continue to rise, so does the amount consumers pay in sales tax.
“Families are struggling with their personal budgets due to 40-year-high inflation rates. They need relief and this is one step toward allowing families to keep a little more of their own money,” Sen. DeWitte said. “We have fast-tracked legislation like this in the past. We are in crisis mode, so I am asking my colleagues to expedite this measure with the goal of having the Governor sign it in the next few days so relief can begin for taxpayers.”
The legislation was filed on March 10th and has already received over a dozen cosponsors.