Mayors across Illinois push for local gas tax, other state laws

SPRINGFIELD (25News Now) – Illinois mayors are asking state lawmakers for more tools to manage local budgets, roads, and growth as part of their yearly pitch.

The Illinois Municipal League, a coalition of towns, cities and villages throughout the state, laid out their wish list for lawmakers in 2026. Their message: Give cities, villages, and towns more control over how money is raised and spent close to home.

One of their core demands is for the state for fully fund all revenue that is shared with municipalities. One example is the Local Government Distributive Fund.

According to the IML, the LGDF used to spread 10% of state income tax revenues across municipalities. In 2011, that percentage was changed to 6%. This year, Governor JB Pritzker proposed allocating 6.28% to 6.47% of tax revenue towards LGDF.

“Local governments are where residents feel impacts first, so shifting costs to the local level makes Illinois less affordable for residents,” said IML President and Matteson Village President Sheila Chalmers-Currin.

“Reducing LGDF funding would leave us only two options: raise local taxes or cut critical services like public safety, infrastructure and transportation,” she continued.

City, town and village leaders with the IML are also pushing to amend laws around the Motor Fuel Tax.

“Under current law, only non home rule communities located in Cook County, or those with a population exceeding 100,000 are authorized to impose a local non home rule mobile fuel tax without a referendum”, said Mayor John Lewis and first Vice President of Illinois Municipal League.

New legislation aims to change that. The proposal would allow all Illinois municipalities to add their own local gas tax in one-cent increments, up to a maximum of three cents per gallon, on top of the state’s existing motor fuel tax of 48 cents per gallon.

Any revenue from a local gas tax would be dedicated to infrastructure projects. That includes repairing roads, replacing bridges, and funding other transportation improvements that residents use every day.

Supporters argue that a small local gas tax is a fair and transparent way to pay for the streets and bridges drivers rely on. Opponents focus on what it would mean at the pump. They warn that adding another layer of tax would drive gas prices even higher at a time when many families are already struggling with rising costs.

The motor fuel tax bill, HB 1283, was filed by Chicago Heights Democratic Representative Anthony DeLuca in January 2025. It was last sent to a House committee in March 2025.

Lawmakers will consider it during this year’s legislative session.

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