Illinois Republican House members have proposed a 6 month pause on the gas sales tax.
GOP state lawmakers want to lower gas prices in Illinois as the price of gas has risen above $4 a gallon because of the war in Iran.
Republican state Rep. Ryan Spain, representing an area north of Peoria to the Iowa border, introduced the bill. He said Illinois puts more of a burden on its drivers by having two taxes on fuel.
“We imposed a motor fuel tax across the state that was adjusted 6 years ago, 7 years ago now, in 2019, but then we impose a sales tax on top of that motor fuel tax, a tax on a tax,” Spain said.
Spain said by pausing this tax it would give quicker relief to Illinois families. He added the bill would only pause the sales tax and not the motor fuel tax.
Spain said now the revenue from the tax is being moved from downstate to Chicago transit. He added the bill can work with the budget because Chicago did not need as much money as they received.
“This sales tax that I'm speaking about was promised as a delivery into the Road Fund,” Spain said. “Those dollars have now been rescinded and transferred beginning on July one to fund Chicago land transit.”
One of the reasons gas prices are increasing is because of the war in Iran. On Tuesday, the Trump administration announced a two-week cease fire with Iran and negotiations aimed at ending the war. That announcement triggered a sharp decline in oil prices, though it's unclear if it will have a long-lasting affect on prices at the pump.
Republican state Rep. Regan Deering, representing an area between Bloomington-Normal and Decatur, said the sales tax pause should continue even if the national gas prices go down because holidays can keep the prices high.
“Families choose to take vacations, travel around, maybe outside of Illinois, be able to continue to provide that relief to them,” Deering said.
Deering said the gas prices are increasing the price of other areas like grocery stores, which might take a longer time to go down.
“We're looking at planting season for our farmers. Diesel prices are high,” Deering said.
Deering said the bill is also meant to be a conversation starter and continue talks about affordability in Illinois.
Deering said other bills she introduced dealing with affordability never got called for a vote.
The bill has not been called for a vote, but Spain said the bill could fit into this year's budget.
