Tue September 10, 2013
Proposals Would Change Gasoline Taxes
In Illinois, gasoline is taxed twice -- so explains Rep. Jack Franks (D-Marengo):
"What we have in Illinois is a tax on a tax. Which is just wrong. Because right now we get charged with the motor fuel tax. But then on top of that, they charge a sales tax," Franks said.
Franks wants to wipe that out that second tax, so drivers would no longer have to pay sales tax on gasoline and other fuels. It's happened before - the state temporarily lifted the sales tax on gasoline more than a decade ago, a move some viewed as a mistake. While it's popular with voters, it would mean less money for Illinois' already stretched budget. But Franks insists it's not an election year gimmick.
The Transportation for Illinois Coalition says the motor fuel tax doesn't bring the money needed to keep up the state's roads. The group proposes abolishing the 19-cents-a-gallon motor fuel tax, and replacing it with a 9.5-percent wholesale fuel tax. That plan also calls for higher driver's license and vehicle registration fees.
Illinois Public Radio's Amanda Vinicky contributed to this report.