Mar 22, 2022 - News

Illinois gas taxes among highest in nation

Data: Federation of Tax Administrators. Map: Baidi Wang/Axios

Illinois has the fifth-highest gas tax nationally at 40 cents per gallon, according to new data from the federal government.

Why it matters: Gas prices have surged to record levels and states are looking for ways to provide relief.

  • Some governors have already suspended gas taxes, while others, including Colorado and Ohio, are exploring their options. In Illinois, freezing the tax has already been proposed. It just hasn't kicked in yet.

Driving the news: Gov. J.B. Pritzker's new 2022 budget calls for the temporary freeze of the state gas tax.

  • The plan would forgo any rise in tax from inflation, which would cut an estimated 2.2 cents per gallon.
  • Pritzker says his plan would save Illinois drivers $135 million combined, but critics say it's an election year gimmick that will save drivers pennies on the dollar.

The intrigue: The governor made this announcement in February before Russia's invasion in Ukraine helped take gas prices to record levels.

  • And according to AAA, gas prices could go even higher after oil refineries make the switch from winter blend to the more expensive summer blend.
  • So don't look for this to be our saving(s) grace.

What's next: The state legislature has to approve the governor's budget before the end of the spring session on April 8.


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