ICCTA Action Alert
June 29, 2000

General Assembly OK's Temporary Repeal of 5% Gas Tax
The Illinois General Assembly adjourned Special Session #4 at 2 PM this afternoon by temporarily repealing the state sales tax on motor fuels. Senate Bill 1310 requires that beginning July 1, the 5% sales tax on gasoline is repealed until December 31. According to the Illinois Economic and Fiscal Commission, the state will give up $180 million during the six-month repeal of this revenue source.

SB 1310 passed out of the House with 105 votes and out of the Senate with 55 votes. Proponents argued that this measure will reduce the price of gasoline by 8 cents or 9 cents per gallon and is good public policy to remove a tax on a tax. In addition, the state's checkbook balance is holding at approximately $1.8 billion today.

SB 1310 has been sent to Gov. George Ryan, who is expected to sign the bill immediately.

There is no expected impact on community college or other higher education budgets, but the Governor is indicating that state agency office budgets will be reduced by 2 percent.

The General Assembly will return to Springfield on November 9 to begin the fall veto session.

Call ICCTA at 1-800-454-2282 with your legislative questions

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