SPRINGFIELD – Part of Illinois’ newly approved $55.9 billion state budget includes pause of a scheduled increase for the statewide gas tax.
The Motor Fuel Tax was scheduled to increase by 1.3 cents on July 1, but the approved budget pauses the increase for six months, pushing it to January.
The Motor Fuel Tax currently costs Illinoisans about 48 cents per gallon for gasoline and about 56 cents per gallon for diesel fuel. There are also taxes on liquefied petroleum gas, liquefied natural gas, and compressed natural gas.
A press release from the office of Gov. JB Pritzker said the tax was paused because families are facing higher costs, driven by economic uncertainty and rising energy prices.
More cost-saving items in the budget
In addition to the gas tax, Pritzker’s office highlighted other measures within the budget that aim to make “everyday day costs more affordable.”
A back-to-school sales tax holiday will put a halt on state sales tax for families shopping for school supplies, clothing, computers, and “other school necessities” from Aug. 7-16, according to the release.
Further, the budget sets aside nearly $100 million for food assistance, including:
The pause of the gas tax and the other measures aimed at affordability coincide with the end of the Illinois legislature’s spring session that happened on June 1 around 4 a.m.
More about the gas tax
Shortly after being elected into office in 2019, Pritzker signed legislation that would increase the tax with annual inflation as calculated by the Department of Labor. The legislation was part of the governor’s Rebuild Illinois Capital Plan, which put forth $45 billion to help rebuild the state’s roads and bridges.
The state and many local municipalities use the motor fuel tax to help with funding infrastructure projects. Prior to the legislation, the gas tax remained at 19 cents per gallon for more than 20 years.
A spokesperson for Pritzker told The State Journal-Register that pause is technically a freeze in the CPI inflation adjuster. No road or bridge projects will be affected by the pause.
The money from the tax would normally flow to various transportation funds, but those funds already have sufficient balances, the spokesperson said.
Tom Ackerman covers breaking news and trending news along with general news for the Springfield State Journal-Register. He can be reached at tackerman@usatodayco.com.
This article originally appeared on State Journal-Register: Illinois lawmakers put brakes on gas tax as costs continue to rise
Reporting by Tom Ackerman, Springfield State Journal-Register / State Journal-Register
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