One of the Republican candidates for governor is talking about reducing taxes on gasoline. State Sen. Kirk Dillard (R-Hinsdale) would keep the per-gallon motor fuel tax in place, but would roll back 70 percent of the 5 percent state portion of the sales tax on gasoline. At today’s price ($3.39 average statewide), that would save consumers about 12 cents a gallon, assuming the saving is passed along to them.
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“It is bad tax policy to have a second gas tax on Illinois raising and keeping Chicago and Illinois among the highest gas prices, historically, in America,” he said today (Monday) at a news conference on the sidewalk across the street from one of the usually highest-priced gas stations in Chicago.
Of the sales tax on gas that remains, some is designated for schools and bond issues, and Dillard would allocate the rest to transportation funding – roads, bridges and transit. Dillard says the money the state loses can be made up partly with increased sales. Sales tax on gasoline in Illinois has been a “windfall” for the state, Dillard says, as the price of gas has risen faster than inflation over the last decade.