By Illinois Radio Network
SPRINGFIELD – Despite there being no formal proposal to increase the state’s motor fuel tax, discussions at the statehouse are under way.
Joe Sweeney with the Indiana, Illinois, Iowa Foundation for Fair Contracting said Illinois’ infrastructure is woefully inadequate because the state hasn’t increased its 19 cent per gallon state gas tax since 1993. He proposed tying the gas tax to inflation.
“If the motor fuel tax had kept up with inflation in 2015, we would have been at 31 cents per gallon and the diesel tax would have been at 35 cents per gallon,” Sweeney said.
But Illinois Petroleum Marketers Association and Association of Convenience Stores Executive Vice President Bill Fleischli said increasing the state’s gas tax isn’t the solution.
“The last time the motor fuel tax was raised, volumes decreased by 7 percent. If you allow us to compete and not raise taxes,” Fleischli told the committee, “gallonage and revenue will increase.”
Fleischli said increasing the gas tax puts the state at a competitive disadvantage with neighboring states. It’s not just Illinois’ gas tax that consumers are avoiding by crossing state lines, one border town convenience store owner says it’s all the other things that costs more in Illinois driving consumers elsewhere.
Curt Adams, who owns convenient stores near the Illinois-Missouri border, opposes an increase to the state’s gas tax. He said he’s witnessed Illinoisans walking out of stores in other states carrying cartons of cigarettes like logs because they’re cheaper. But there are many things he says hurts Illinois competitiveness with neighboring Missouri.
“From labor costs, [Missouri] is at the federal minimum wage. Cigarette tax, sales tax, gasoline tax – completely disadvantaged,” Adams said. “Property tax – completely disadvantaged.”
Adams said not raising the motor fuel tax will allow border town convenience stores like his to compete a little better with lower-cost states.
