(The Center Square) – In a state where its residents pay the second highest gas taxes in the country, another increase is on the horizon in Illinois.
Dubbed “Rebuild Illinois” in 2019, the capital plan doubled the 19 cent gas tax to 38 cents and linked annual increases to the Consumer Price Index. It increases again to 48.3 cents per gallon on July 1.
Revenue generated from motor fuel taxes is primarily dedicated to funding transportation-related infrastructure, but Ravi Mishra, policy analyst with the Illinois Policy Institute, said Illinoisans are not getting their money’s worth.
“The state just keeps on taking more taxes and there has been very little to show for it,” said Mishra. “From research that we have conducted, our roads have not gotten much better since the increase in taxes.”
There has been legislation introduced by Illinois Republicans that would temporarily halt fuel tax rate hikes linked to the CPI. They argue that there is plenty of money in the state’s road and construction fund and that it is time motorists receive some relief at the pump.
As of May 12, the Illinois Road Fund had nearly $3.7 billion sitting ready to be used for construction projects.
“As Springfield nears the end of the 2025 Spring Session and budget talks ramp up, it is important for legislators to remember increasing the motor fuel tax not only impacts their constituents directly, through their increased cost at the pump, but also indirectly, through increased costs of goods and services throughout the economy,” said Nate Harris, CEO of the Illinois Fuel and Retail Association.
IPI notes that Illinois’ practice of applying sales taxes to gasoline after the motor fuel tax is charged effectively creates a tax-on-tax predicament for drivers.
Mishra said Illinoisans shouldn’t be punished because of the incompetence in Springfield.
“It’s a structural issue that Illinois just keeps on burning taxpayers just because they can’t manage their budget,” said Mishra.
