Bill > HB2613

This bill modifies the Motor Fuel Tax Law by establishing a fixed motor fuel tax rate of $0.19 per gallon beginning July 1, 2025, replacing the current system of annual adjustments based on the Consumer Price Index. For diesel fuel, liquefied natural gas, and propane, the bill reinstates an additional 2.5 cents per gallon tax (returning to the pre-2019 rate). The bill also prohibits municipalities from imposing their own motor fuel taxes on or after July 1, 2025, which effectively preempts local motor fuel taxation. This change represents a significant shift from the previous method of annually adjusting the motor fuel tax rate based on inflation, instead setting a static rate. The bill aims to provide more predictability in motor fuel taxation and eliminate the complexity of annual tax rate calculations. The tax provisions apply to motor fuel used in vehicles on public highways and recreational watercraft, with specific definitions and exemptions for certain fuel types like aviation fuel and kerosene.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2613&GAID=18&DocTypeID=HB&SessionID=114&GA=104