Illinois Lawmakers Move to Eliminate State Gas Sales Tax

An Illinois lawmaker has proposed eliminating the state's 6.25% sales tax on motor fuels sales.

September 24, 2013

SPRINGFIELD – Illinois state Rep. Sue Scherer has sponsored a bill to eliminate the state’s 6.25% sales tax (not state motor fuels tax) on motor fuel sales, the Quincy Journal reports.

“The people I represent are frustrated by high gas prices, and high state taxes that add to their burden,” Scherer said. “By cutting some of the taxes that are contributing to our pain at the pump, this bill offers much-needed relief.”

The bill would permanently remove the tax, beginning July 1, 2014. The state tax includes 5% that goes to the state, 1% that goes to municipal governments, and 0.2% that goes to county government.

The state’s 5% allocation amounted to $779 million in the last fiscal year, said Sue Hofer, spokesperson for the Illinois Department of Revenue. 

Hofer said the 6.25% sales tax generally applies to the base price of fuel and is also levied on federal and local taxes that are part of the fuel price. It is not levied on the state motor fuel tax — which is 19 cents per gallon in Illinois.

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