2 months, 3 weeks ago From sj-r.com
Illinois municipal and county governments get $195 million from the tax
State Rep. Sue Scherer, D-Decatur, is a sponsor of a bill to remove the 6.25 percent sales tax the state collects on most motor fuel sales.
“The people I represent are frustrated by high gas prices, and high state taxes that add to their burden,” Scherer, whose district includes part of Springfield, said in a statement concerning House Bill 3666. “By cutting some of the taxes that are contributing to our pain at the pump, this bill offers much-needed relief.”
The bill would permanently remove the tax, as of July 1, 2014. The 6.25 percent includes 5 percent that goes to the state, 1 percent that goes to municipal government and a quarter percent that goes to county government.
The state’s 5 percent sales tax on fuel alone amounted to $779 million in the fiscal year that ended June 30, said Sue Hofer, spokeswoman for the Illinois Department of Revenue. That would also mean municipal and county governments received about $195 million from their portion of the state-collected tax.
Hofer said the 6.25 sales tax generally applies to the base price of fuel and is also levied on federal and local taxes that are part of the fuel price. However, she said, the sales tax is not levied on the state motor fuel tax — which is 19 cents per gallon on gasoline.