SB2359 amends the Illinois Motor Fuel Tax Law to prevent a scheduled inflation-based increase in the motor fuel tax from taking effect on July 1, 2025. Under current law, the motor fuel tax rate is adjusted annually based on the Consumer Price Index (CPI), and this bill would carve out an exception so that the 2025 CPI adjustment does not occur. The bill is effective immediately, meaning the change would apply as soon as enacted rather than waiting for a later effective date.
The bill does not change the broader structure of the motor fuel tax or the existing CPI indexing mechanism for future years; it only suspends the one increase tied to July 1, 2025. The underlying statute still contains the general annual inflation adjustment formula, diesel and alternative fuel tax provisions, and other motor fuel tax rules, but this proposal would temporarily freeze the rate for that year. In practical terms, it would reduce the amount motorists and fuel purchasers would otherwise pay beginning July 1, 2025.
The general sentiment reflected by the bill’s text is tax-relief oriented, with the proposal framed as a pause on a scheduled tax hike rather than a broader tax overhaul. Because there are no committee transcripts or recorded votes provided, there is no documented legislative debate in the supplied materials. Based on the bill’s purpose, support would likely come from taxpayers and fuel consumers who favor limiting automatic tax increases, while opposition would likely come from those concerned about state revenue and transportation funding.
The main point of contention is the tradeoff between keeping fuel costs lower for consumers and preserving expected revenue growth for the state. Supporters would likely argue that CPI-driven increases can raise costs automatically without a separate policy decision, while critics would likely argue that suspending the adjustment could reduce funding available for roads, bridges, and other transportation-related needs. Because the bill only suspends one year’s increase, the dispute is narrower than a full repeal of the CPI adjustment, but it still directly affects state revenue policy.
Impact
The bill would amend Section 2 of the Motor Fuel Tax Law (35 ILCS 505/2) to exclude the July 1, 2025 CPI-based increase from the motor fuel tax rate calculation. It would leave the rest of the statute intact, including the existing annual inflation adjustment framework for other years, the diesel and alternative fuel surtax provisions, and the Department of Revenue’s administration of the tax. The immediate legal effect would be to hold the motor fuel tax rate at the pre-July 1, 2025 level for that year, reducing tax liability for fuel retailers and end users relative to current law.
Sentiment
The bill appears generally favorable to taxpayers and motorists because it blocks a scheduled tax increase, and its title and text suggest a straightforward anti-increase policy. No committee discussion or vote history is provided, so there is no recorded legislative sentiment in the supplied materials. On its face, the proposal is likely to appeal to members who oppose automatic tax escalators and to draw concern from those who rely on motor fuel tax revenue for transportation funding.
Contention
The central contention is whether Illinois should forgo an inflation-based motor fuel tax increase that is already built into current law. Supporters would likely emphasize consumer relief, lower fuel prices, and the idea that tax increases should require an affirmative policy choice rather than an automatic CPI formula. Opponents would likely focus on the fiscal impact, arguing that suspending the increase could reduce transportation revenue and complicate budgeting for infrastructure and related state obligations.