Illinois Gas Tax Raise?

The Chicago Metropolitan Agency for Planning recently released its “Go to 2040” plan. It’s a comprehensive blue print on how to develop the Chicagoland for the future. The plan details sustainability, infrastructure improvement and effective efficiency. To help pay for the costly capital improvement projects the agency wants to raise the motor fuel tax.

When you’re paying $4 at the pump this is the breakdown of taxes: there’s the state universal federal tax of 18.4 cents per gallon, then each state levies a MFT tax and other fees. In Illinois the state levies 19cpg, an additional 20.6cpg for other fees (sales tax being one) combined with the federal tax for a total of 58cpg in taxes. CMAP wants the state to raise the MFT by 8cpg to 27cpg.

Oddly Illinois would only tie for 8th place amongst the states for the highest MFT if it was raised. 1st place goes to Washington for 37.5cpg, but they do not levy any other fees, so a total of 55.9cpg in taxes. Illinois ranks 5th (58cpg) for highest MFT with California taking 1st (67.4cpg), according to the American Petroleum Institute.

Motor fuel taxes and vehicle registration fees are the two primary sources of revenue to fund road maintenance and construction. The state last increased the MFT in 1991. IDOT has 45.6 percent allocated to their road construction fund with the remaining 54.4 percent allocated to local governments. CMAP said the MFT raise is necessary because purchasing power has decreased with inflation and construction costs.