DirecTV

New Gas Sales Tax To Increase Prices

News

Since the budget has passed, many have spoken out about their opposition of the income tax increase. But, it will not be the only place their pockets will be affected. Drivers can soon expect an increase in the gas sales tax too.

“Currently, the gas station gets a credit of 20% of sales tax,” said Senator Dave Syverson (R-35th). “That credit is going away. So, now they’ll charge that back to the consumer who will see 20% build back to the gas prices.”

Syverson predicts the change will cost about five cents more per gallon for the most popular gas blend.

“It’s a sales tax on the gasoline and not a gas tax on the gasoline. It means that the increase cost does not go to the roads, but it goes to the state.”

Syverson says people might not even be noticing that they will be paying more in taxes.

“The problem is with gas prices fluctuating up and down every day. People really don’t realize it.”

Senator Steve Stadelman (D-34th) voted to pass the budget. He says the decision behind removing the credit was to get people to use a different type of fuel.

“It really was the result of interest groups,” said Stadelman. “[We want] to encourage use of these higher ethanol blends.”

He believes in the long run, it will benefit the state.

“The policy’s goal here are really trying to get rid of fossil fuel use and use product that the state of Illinois produces and that’s corn.”

E-85 fuel and bio-diesel will keep their tax exemption. But, it isn’t certain when the increase will begin. But, it is expected to be this month.

Copyright 2019 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Made in the Stateline

More Made in the Stateline

Education Matters

More Education Matters

Behind the Badge

More Behind the Badge

Stateline Strong

More Stateline Strong

Trending Stories