State Representative Avery Bourne is co-sponsoring legislation to provide relief for families being hit by skyrocketing gas prices. House Bill 5723 caps the sales tax on gas at 18 cents per gallon for motor fuel and 80% of that amount for gasohol and biodiesel blends.
“Runaway inflation and the high price of oil is driving gas prices to levels not seen in years. Illinois is one of the rare states that has a sales tax on gas, so as gas prices increase, the price per gallon becomes even more costly for family budgets and small businesses across Illinois,” said Bourne. “People need relief and this legislation provides real relief to limit the pain at the pump.”
Since the state currently collects sales tax on gasoline as a percentage instead of at a flat rate, it is driving the price for a gallon of fuel even higher and creating an unexpected windfall for the state on the backs of people who can least afford it. The cap placed on the fuel sales tax under HB 5723 would prevent the exponential growth in the tax that is driving prices up by as much as 10, 20 cents, or more per gallon.
Unlike other proposals to limit the rise in fuel prices, HB 5723 targets the sales tax in the state’s General Revenue Fund (GRF) and not the state’s Road Fund. Funds for road projects will be protected by this approach and since the rapid increase in fuel prices is creating an unexpected GRF windfall, capping the sales tax will not have a negative effect on expected state revenues for the year.
“This legislation is a commonsense approach to help families weather this rapid inflation and the General Assembly needs to take action now. Families cannot afford to wait,” said Bourne.