Illinois gas tax revenue hits $212 million in April, highest monthly total this year

Illinois gas tax revenue hits $212 million in April, highest monthly total this year

Illinois is eighth in the nation for most expensive gas, and reduced oil production in May could drive prices even higher. It all means more taxes for the state.

Illinoisans pay more at the pump than most others, and it’s a growing revenue source for the state.

April brought in $212 million in motor fuel tax revenue, the highest monthly total for the fiscal year that started July 1.

At an average of $3.94 a gallon on May 9, Illinois was eighth in the U.S., AAA reported.

The national average was $3.53, 41 cents lower than Illinois’ price. Neighboring Missouri’s gas was 71 cents cheaper. Memorial Day will likely spike prices.

Saudi Arabia and the Organization of the Petroleum Exporting Countries announced reduced production by more than 1 million barrels a day that started May 1.

Illinois taxes gas multiple times. It charges sales tax on the base cost of gas plus the federal tax and environmental fees. Then it adds state and local excise taxes – meaning it makes drivers pay tax on the taxes.

Most states don’t operate that way.

Illinois’ excise gas tax is currently 42.3 cents per gallon. Gov. J.B Pritzker doubled it in 2019 from 19 cents per gallon and added automatic annual tax hikes, which have brought it to the current rate. The next hike hits July 1.

Those hikes led to more than $2.5 billion in revenue for the state in fiscal year 2022, up 86% from 2019.

Each month brings in roughly $100 million, but that could go up in July when the next automatic increase kicks in.

The July gas tax hike will be the second one of 2023. Illinoisans also experienced a gas tax hike in January because Pritzker delayed last year’s increase to shortly after the November election.

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