Illinois gas tax to rise again, EV owners to be taxed too

PEORIA (25News Now) – The Illinois Motor Fuel tax, known as the gas tax, will rise again on July 1 meaning higher per-gallon gas prices.

The tax rate increases by 3%. Taxes for gasoline will be 47 cents-per-gallon and 54 cents-per-gallon for diesel.

The increase is part of the Rebuild Illinois capital plan. In 2019, lawmakers voted to double the gas tax from 19 cents-per-gallon to 38 cents-per-gallon.

The plan was to increase the rate each year based on inflation.

Before 2019, did not have a gas tax increase for nearly 30 years. The tax revenue collected helped fund roads and transportation projects.

Some residents we spoke with said they understand the tax increase. Others said that more roads need to be redone.

State Rep. Travis Weaver (R-Edwards) agreed roads need work, but he said the Illinois Department of Transportation (IDOT) needs to use the more than $3 billion sitting in the road fund.

“Obviously, they take in revenue and spend money, but the balance has grown by six times as much,” Weaver said. “I would say to IDOT: ‘You have two choices. You either start spending that money, putting it to work to get roads fixed, or we’re going to cut the gas tax.’”

In a statement to 25 News, Democratic Sen. Dave Koehler said:

“Recently, it was announced that the Peoria and Bloomington-Normal communities will receive over $193 million in funding for state and local highways through the Illinois Department of Transportation’s Multi-Year Plan. These funds play a large role in supporting this program that ensures our roads and bridges are safe and well maintained.”

Another issue is for electric vehicle owners who do not pay gas taxes.

Starting July 1, EV owners will be charged a $100 yearly fee to make up for lost tax revenue, on top of the annual registration fee.

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