SPRINGFIELD, Ill. – Illinois Fuel and Retail Association CEO, Josh Sharp, is today issuing the following statement on Governor Pritzker’s proposal to temporarily freeze the Consumer Price Index gas tax increase scheduled for July 1, 2022, which would take Illinois’s gas tax from 39.2 cents per gallon to 41.4 cents per gallon, a 6.9 percent increase.
“Illinois already has the second highest gasoline taxes in the country and Governor Pritzker’s proposal today does nothing to change that. The Governor is correct that something needs to be done to address Illinois sky-high gas taxes, but more permanent solutions are needed.
Eliminating the automatic gas tax increase altogether would be one suggestion, as would reducing or removing Illinois’ sales tax on motor fuel. Illinois’ sales tax on motor fuel alone is expected to cost drivers’ almost $700 million in FY 2022 and that is in addition to the $2.3 billion in taxes collected from the state’s motor fuel tax. Illinois is one of only seven states that allows compounding sales taxes – from both state and local governments – to be added on top of the state’s motor fuel tax.
We agree with the Governor on the need for tax relief at the pump, but more is needed than the temporary fix being offered.”