Reis Supports Changing/Suspending Sales Tax on Gas

May 17, 2007

Springfield….Due to the rising price of motor fuel, State Rep. David Reis (R - Ste. Marie) is again sponsoring legislation that would help lower prices by either altering or eliminating state sales tax on gasoline in certain instances. HB 4097 would permanently reduce the rate of tax the state of Illinois charges per gallon of gasoline from the current 6.25% to a much lower 1.25% beginning July 1, 2007.

Reis and several House Republican State Representatives have also introduced HB 4098. The legislation would totally eliminate the state sales tax on gas from July 1 through September 3 and then return the sales tax rate to the 1.25% proposed in HB 4097. The 1.25% tax would remain in place in order to ensure that municipalities' road funds would not suffer depletion as a result of the roll back.

With the summer driving season fast approaching and gas prices soaring above $3 dollars per gallon, Reis believes the two bills could have a serious positive impact on families in Illinois already facing the burden of high electric rates. "At a certain point we have to take real action to help ease the pain at the pump," Reis said. It is estimated that the 5 cent/ gal drop in state sales tax would save .15 cents per gallon of gas, a move Reis believes would be a big help for families.

"So far, the Democrat led General Assembly and the Governor have failed to offer relief on the high cost of fuel and electricity for Illinois customers. I think both of these bills could really provide Illinois families with some relief at the gas pump. With all the talk in Springfield about raising taxes, I think it is far past the time that we take action to put some money back in the pockets of our working families, and this is just one option among many that we should be serious about," Reis said.