Illinois bill would delay Jan. 1 fuel tax increase

Pursuit at the Illinois statehouse would continue fuel tax relief in place since the summer.

In June, Gov. J.B. Pritzker signed a number of tax policy changes. One change froze the state’s 39.2-cent gas tax rate and 46.7-cent diesel rate.

A 2-cent cost-of-living adjustment set for July 1 was delayed for six months. Another increase is slated for July 2023.

Another delay pursued

One House bill filed in recent weeks by Republican lawmakers would further delay the implementation of the cost-of-living adjustment.

Specifically, the scheduled Jan. 1 increase in fuel tax rates would be postponed until July 1, 2023. The already scheduled July 1 increase would be nixed to prevent a double increase.

Advocates say continued fuel tax relief is necessary to help counter rising inflation and strained supply chains.

Additionally, a requirement in the current rule for fuel stations to post 4-inch-by-8-inch signs notifying customers about the tax freeze would be ended.

The Illinois Fuel and Retail Association filed a lawsuit in June against the sign requirement. The group cited opposition to “political speech” for the legal challenge.

A federal judge threw out the lawsuit shortly thereafter. U.S. District Judge Sue Myerscough ruled the signs contained “a purely factual statement.”

Supporters are hopeful the legislation, HB5829, will be brought up for consideration during the legislature’s veto session that begins today and concludes by Dec. 1. LL

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