Illinois considers allowing municipalities to impose local gas tax

SPRINGFIELD, Ill. (WTVO) — A new bill under consideration in the Illinois House would allow individual municipalities to impose their own, local motor fuel tax on top of the state’s gas tax.

House Bill 1283 would create the Municipal Motor Fuel Tax Law, allowing cities, towns and villages to impose their own gas tax, at a rate not to exceed 3 cents per gallon.

The bill was introduced by Rep. Anthony DeLuca (D-80th).

Illinois residents currently pay the second-highest gas tax in the country besides California, at 66 cents per gallon.

The state had a 19 cents per gallon gas tax before 2019 when it was doubled to 38 cents per gallon to help fund a $45 billion infrastructure bill.

Lawmakers set the tax to automatically increase each year to adjust for inflation, in a move that avoided requiring a public vote on gas tax increases.

Electric vehicle (EV) owners, who are exempt from the gasoline fuel tax are charged a flat $100 a year, on top of their annual vehicle registration fee, to make up for lost tax revenue.

Another proposal filed in the Senate would explore the possibility of charging drivers by the mile, due to the prevalence of more fuel-efficient and electric vehicles on Ilinois roadways.