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Pending Legislation Would Reduce Prices at the Pump

Bills propose a gas tax holiday, gas tax cap and pipeline expansion.

State Rep. Chris Nybo (R-41st, Elmhurst) co-sponsored various pieces of legislation as part of a Motor Fuel Price Relief package to alleviate the escalating price of gas. 

House Bill 6146, if passed, will enact a six-month state sales tax holiday for gas between July 1 and Dec. 31.

In addition to the Illinois’ 19 cent per gallon Motor Fuel Tax, the state also charges the standard 6.25 percent sales tax on the purchase of gasoline. This legislation would suspend the state portion of that sales tax during the coming months.

“Suspending the local sales tax is one way to save motorists money on the state level,” Nybo said. “Residents are driving to bordering communities in Indiana and Missouri to buy cheaper gas, which in return is a loss in revenue to Illinois.”

An additional piece of legislation, House Bill 6147, was also co-sponsored by Nybo. It proposes permanently capping the sales tax on fuel, only allowing the state to charge sales taxes on the first $2.50 of each gallon of gasoline.

“Gas prices not only affect families but also businesses who rely on gas to function,” Nybo said. “These bills are aimed to offer some sort of relief to Illinois residents who rely on gas to perform their daily activities and lifestyles.”

Other pieces of legislation include House Resolution 877, which calls upon the Obama Administration to complete the Keystone Pipeline system for the delivery of Alberta crude oil to the 48 U.S. states.

York Parent April 17, 2012 at 02:37 PM
Excellent point, glenn. I notice this too just by driving around the Chicago area.
Kevin Fitzpatrick April 17, 2012 at 03:16 PM
Glenn, he's on his way to Springfield today and he's really not a reader of blogs. I can share some perspective as the Legislative Advisory Committee has looked into some of this. It's not just the state and counties that add layers to the retail sales tax, it's some of the municipalities too. When gas prices go up, there's a multiplier with a sales tax as a percentage of the cost per gallon, plus the dedicated fuel tax and then a sales tax on top of that. The more dense the population, the greater likelihood of higher fuel cost. The property tax that needs to be covered in the profit formula of a given franchisee also factors in. If you look at Cook County, the price is even higher yet, .10 higher than DuPage, which is .10 higher than Kane, which is higher than DeKalb. I was always amazed that it was cheaper to fill up on the Tollway at Belvedere than it was off the highway in DuPage. The gas stations generally only make a couple or a few cents a gallon on gas. They're hoping you buy coffee, snacks, pop or use their ATM to make more. Nearly every gas station you see now has multiple mini-profit centers inside. People who pay at the pump are their least desired customers. Guys in your profession are especially hurt by higher fuel costs and have little option to pass the cost on. You probably have changed your routine to buy gas at the most reasonable place.
Bob Santini April 18, 2012 at 01:10 PM
wow, first "spite", now "ulterior motive". ok, here's a simple concept: it is a gimmick because it's short term; is that plain enough ? if it were a permanent reduction, and the government could afford it, fine; but neither of these apply. here's a simple solution to reduce the price of gas: DRIVE LESS ! and/or BUY MORE FUEL EFFICIENT CARS ! I wish I could count on one hand the number of massive SUVs I see boating around Elmhurst, but I can't because there are too many. Remember Econ 101 and the concepts of quantity demanded and quantity supplied. We reap what we sow, and have no one to blame but ourselves.
MIke R April 19, 2012 at 09:19 PM
York Parent: The reduction in gas prices resulting from reduced taxes may be meaningless to you, but it is not meaningless to those trucking terminals, central warehouse and distribution companies, and other companies with fleets whose profit/loss statements are very sensitive to the price of fuel. For businesses that rely on fleets to provide their service, such reductions could be the difference in deciding whether it is cheaper to move their operations to a bordering state rather than paying high motor fuel charges in Illinois. I agree this is a small-change-savings per fill to you, but it is big money to business. Representative Nybo is trying to lighten the load not only on citizens of Illinois, but also businesses that employee them. Again I applaud Representative Nybo for his efforts and I would also encourage him to look at the excessively high licensing and permit costs associated with Illinois commerce and associated transportation of goods. Such high fees are contributing to the loss of jobs. Anyone who thinks otherwise just doesn't understand the logistics of the distribution business.
MIke R April 19, 2012 at 09:20 PM
Mr. Santini states that if the reduction was permanent then he would support it. If you go back and read the article you will see that while HB 6146 is a 6-month temporary "tax holiday," the second bill, HB 6147 (co-sponsored by Representative Nybo), "...proposes permanently capping the sales tax on fuel, only allowing the state to charge sales taxes on the first $2.50 of each gallon of gasoline." This definitely adds some stability to the cost of gas especially when the cost goes beyond $2.50/gallon. Mr Sabatini, you wrote in one of your comments above " if this were a permanent repeal/reduction of a tax, i'm all for it..." Well, given your statement, can you now admit you can support Mr. Nybo's efforts, or will you have another reason not to?

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