UPDATE: It appears that the Governor has taken our advice.  His new proposal for the capital spending bill would include diverting state sales taxes on gasoline into the spending program
CHICAGO— The president of Illinois’ largest taxpayer group urged lawmakers to use tax money collected from gasoline sales taxes for road repairs, not to pad lavish government pensions by funneling the money into the state’s general fund.
“Illinois is one of only nine states that charges sales tax on gasoline,” said Jim Tobin, president of National Taxpayers United of Illinois (NTUI). “This sales tax is on top of the 19 cents per gallon gasoline tax that is levied. The sales tax that is collected however is put into the state’s general fund and can be spent on whatever the state chooses.”
“The proposed $34 billion public works program is just a front by the politicians to justify a 67% state income tax increase. This is unnecessary as total state revenue increased $2.3 billion for fiscal year 2008 ending June 30. The July 9 ITEF state revenue study can be found on our website, www.ntui.org.”
“It is estimated that the state will bring in $754 million dollars this year in revenue from gasoline sales,” said Tobin. “This money should be spent on roads and bridges, not to fund lavish pensions and high government salaries.”
“The governor will be in Springfield today to meet with legislative leaders to try to come up with a solution. Many ideas will be floated around, including raising taxes and expanding gaming. The state should use the sales tax revenue from gasoline to fix the roads and bridges.  Otherwise it should repeal the state sales tax on gasoline,” said Tobin.
Click here for the News Release.

1 Comment
  1. Sir, please advise the other eight states that charges sales tax on gasoline. Also, do you have the percentage charged per state.
    Thank you