HB2613 would lower Illinois’ state motor fuel tax rate beginning July 1, 2025. It changes the Motor Fuel Tax Law so the per-gallon rate drops from the current inflation-adjusted 39.2 cents to 19 cents per gallon, while keeping a 2.5-cent-per-gallon add-on for diesel fuel, liquefied natural gas, and propane. The bill also preserves the existing structure of the tax on motor fuel sales and the related statutory definitions, but resets the base rate to a fixed amount rather than continuing the current CPI-based increase mechanism after the effective date.
The bill also amends the Illinois Municipal Code to prohibit municipalities from imposing a municipal motor fuel tax on or after July 1, 2025. In practical terms, that would eliminate the authority of home rule municipalities to levy the local motor fuel tax authorized under the Municipal Motor Fuel Tax Law, and the bill expressly preempts home rule powers on that point. The bill is effective immediately, but the tax-rate and local-tax changes are scheduled to take effect on July 1, 2025.
Impact
HB2613 would directly amend two major revenue statutes: the Motor Fuel Tax Law and the Municipal Motor Fuel Tax Law. It would reduce the state motor fuel tax rate, alter the treatment of diesel and certain alternative fuels, and end municipal authority to impose a local motor fuel tax after July 1, 2025. Because the motor fuel tax is a dedicated revenue source for transportation-related funds and distributions to state and local governments, the bill would affect state transportation funding, municipal revenue, and allocations to counties, road districts, and other recipients under the existing distribution formula.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the available materials. Based on the bill text alone, the measure appears to be a tax-reduction proposal aimed at lowering fuel costs and limiting local fuel taxation. The absence of discussion or voting history means sentiment cannot be measured from the record provided, but the bill’s structure suggests it would likely be viewed favorably by tax-cut advocates and more cautiously by transportation-funding and local-government stakeholders.
Contention
The main points of contention are likely to be revenue loss and local control. Opponents would likely focus on the reduction in state motor fuel tax receipts and the effect on transportation infrastructure funding, since those revenues are earmarked for road, bridge, and related purposes. Local governments, especially home rule municipalities that currently use the municipal motor fuel tax, would likely object to the bill’s outright prohibition on new or continuing local fuel taxes after July 1, 2025. Supporters would likely emphasize lower fuel prices and relief from both state and local fuel taxation, as well as the bill’s rollback of inflation-based tax increases.