SPRINGFIELD, IL - Illinois lawmakers are proposing to allow gas stations along the state border to apply the sales tax of neighboring states if it provides a necessary competitive advantage, St. Louis Today reports.

State Reps. Jerry Costello and Richard Morthland are drafting legislation that calls on the Department of Revenue to monitor fuel and gas taxes in Iowa, Kentucky and Missouri. According to their plan, if those states have a sales tax on fuel less than 6.25%, the department would be required to reduce Illinois?? sales tax to 1.25% within 30 miles of the bordering state. Conversely, the proposal would also require the department to increase Illinois sales tax to 6.25% on fuel if the bordering state??s sales tax is 6.25% or higher.

"It is well known that oftentimes gas is cheaper on the other side of the river in Missouri and many Illinoisans travel there to fill up their tanks and buy other goods," Costello said.

Missouri does not have a sales tax on fuel and charges a gas tax of 17 cents per gallon, compared to Illinois?? gas tax of 19 cents per gallon and a 6.25% sales tax, according to the news source.

Costello said the proposal is a work in progress and they are trying to incorporate changes to account for states like Missouri that do not impose a sales tax on fuel.

"Missouri's taxation policy regarding gasoline results in lowers prices, and we should do everything in our power to keep tax dollars in Illinois and deliver cheaper gas for local residents," Costello said.

"Are we going to hurt gas stations that are right near the 30-mile boundary? I don't know." Morthland said. "At least we'll be recouping those losses in Illinois, in consequence to a handful of gas stations near the boundary."

For more on border bleed and the effects of disparate fuel prices, see "Run for the Border" in NACS Magazine.