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.

black hawk April 13, 2012 at 12:52 AM
Good job Bob, I wish more people would see the deception these political crooks use just to sound good. I just cannot figure out how this stooge got in office. Nybo is as fake as you can get.
Jim Court April 13, 2012 at 02:25 AM
Bob, I must admit, you really have a deep grasp of the financial aspects and statistics behind the current state budget.
Jim Court April 13, 2012 at 02:26 AM
What is with the new "pending approval" ?
Deke April 13, 2012 at 03:12 AM
How is this "deception?" You can't simply wave a magic wand and make the Illinois economy robust overnight. You have to address problems issue by issue, piece by piece. Nybo's proposed legislation provides some relief from state fuel taxes. True, a ton more needs to be done to get the State back on its feet, but it cannot all be done immediately in one piece of legislation, and it cannot all be done by one legislator. I don't blame anyone for being sour on State government, but come on, the guy is trying to do something, and he deserves credit for that, not condemnation.
NancyC April 13, 2012 at 12:55 PM
Thank you Rep. Chris Nybo. This legislation helps everyone, especially the neediest among us. Any reduction in taxes is a step in the right direction, but it should be tied to reductions in spending like, reduced pension benefits and salaries for elected officials.
NancyC April 13, 2012 at 12:57 PM
Jim, Patch is implementing a new system, nation wide, and they have been experiencing technical difficulties with it.
Kevin Fitzpatrick April 13, 2012 at 06:32 PM
Bob, with due respect, don't let spite get the best of your thinking on an issue. In the summer months, Illinois changes to an ethanol mix of gasoline which raises the cost of gasoline. We currently pay a percentage tax on top of a per gallon tax. There are 2 taxes involved here. Literally millions of people can leave the state and go into Indiana, Wisconsin, Kentucky, Missouri and Iowa to fuel up and avoid both taxes. When the cost gets as high as it's been, people will drive much further to do this. It affects us less, because none of those states are close enough to make it worth it. Gas prices affect lower income people very disproportionately. It's the difference between going to work or not for some. Every time we raise a tax, we lose money in the aggregate. A six month reprieve on some gasoline tax will help some folks get by. Our state debt is in crisis, no question. There are big fundamental decisions to be made. Lowering a tax on a tax on a agricultural subsidy gasoline mixture strikes me as a step in the right direction.
Kevin Fitzpatrick April 13, 2012 at 06:37 PM
Oy! Kind of a wide brush BH. He got into office by winning the seat. It's hard to see how lowering a tax is viewed as "deception". If that's the case, we should have more of it.
Bob Santini April 13, 2012 at 06:57 PM
@kfitz: what in my comment suggests spite; that i used the word gimmick. i guess i should have prefaced my comment with the proviso that most taxpayers are smarter than politicians give us credit for; and by that i mean that we see through these "gimmicks". my opinion is not motivated by spite; rather by common sense and of suspicion of ever wanting politicians to "help" me. what most politicians either don't realize, or don't want to realize, is that they do the most harm when they act. they like "doling" out things that "help" us; because then we get addicted to their dole. once we are addicted, we seek them out for favors; when we seek them out for favors, it gives them an inflated sense of their own self worth. if this were a permanent repeal/reduction of a tax, i'm all for it, but it's just a short term teaser that will have a less than $ 5.00 per fill up impact. If they really want us (poor or not) to save $ 5.00 per week, then get rid of the state lottery; that is the most regressive "tax" going. I realize it is not actually a tax, but the amount of money that poor jamokes spend on it is incredible !! or raise other "sin" taxes (alcohol, cigarettes, etc). yes, people do need gas to earn a living, but lotto tickets, cigarettes, and/or maddog 20/20 never helped any one.
Bob Santini April 13, 2012 at 08:02 PM
kfitz: yes, it is a very wide brush, 280 billion wide ! and i don't blame mr nybo for any of that because he, like most in his party, has little, if any, actual power. in the absence of a republican governor, AND a state house that can sustain a veto, there's really not much any rookie rep can do. so the question is: should i applaud him for trying ? imo no, because the proposal he advances is short term, and of de minimis impact, even for poor people; and c'mon, let's get real here: is an otherwise employed person really going to quit his job (or just float some more purchases on his visa) if the price of gas goes up a little ? your hyperbole is a little extreme.
MIke R April 13, 2012 at 10:04 PM
I applaud Mr. Nybo for doing something rather than nothing. Not only does this apply to what Mr Santini refers to as the "otherwise employed person...(who could) float some more purchases on his visa..." it also applies to businesses with fleets, especially those geographically-peripheral businesses, that would find it cheaper to fuel their service fleets by moving to other neighboring states. Every bit does indeed help and while I agree that this is a small relief to each one of us alone, it is a relief never-the-less, and it is action not worthy of referring to Mr. Nybo's attempts to limit additional taxing, as the cost of fuel rises, as "gimmicks." It does sound as if Mr. Santini has an ulterior motive for such negative rhetoric.
Glenn April 17, 2012 at 01:30 PM
My question to Mr. Nybo, is there anyone looking at price gouging in the state? I am a truck driver and I drive all over the 6 county area and see the gas prices vary extensively. For example I see price differences of $.10-.20 from DuPage to Kane and from Lake to Will, with the same name brand. Sure each county has different tax rates but that much change is redicilous.
York Parent April 17, 2012 at 02:35 PM
This is a joke. The State already can't pay its bills and now Nybo wants to reduce the State's revenue? Yes, the prices of gas are already too high, but eliminating the sales tax on it will have almost a meaningless effect on the prices you see at the pump.
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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