Lawmaker pushes sales tax pause on gas as questions cloud ‘fragile’ ceasefire

By Jim Talamonti | The Center Square
The Center Square

(The Center Square) – With the average Illinois gas price about $1.40 per gallon higher on Wednesday than it was in late February, a state lawmaker is asking for a sales tax holiday on gas purchases.

AAA pegged the state’s average price for a gallon of regular unleaded at $4.41 on Wednesday, up from $3.50 one month earlier. The state’s average gas price before the U.S. and Israel began launching military strikes against Iran in late February was around $3 per gallon.

State Rep. Ryan Spain, R-Peoria, says House Bill 5738 would pause Illinois’ unique sales tax on gasoline for six months.

“We impose a motor fuel tax across the state that was adjusted six years ago, seven years ago now, in 2019, but then we impose a sales tax on top of that motor fuel tax,” Spain said.

State Rep. Regan Deering, R-Decatur, said the Illinois gas tax hit 48.3 cents per gallon last July 1 and another increase is looming in 80 days.

“Springfield here put the gas tax on autopilot, and taxpayers are indeed paying the price,” Deering said.

Deering and seven other Republicans co-sponsored HB 5738.

Spain was asked if there would be any need for the legislation if the U.S. conflict in the Middle East is resolved.

“Let’s say that the price of gas drops significantly. I hope it does. It still doesn’t mean that we shouldn’t deliver additional relief to families throughout the state of Illinois or businesses throughout the state of Illinois,” Spain said.

Hours after the United States and Iran agreed to a two-week ceasefire, White House Press Secretary Karoline Leavitt disputed media reports that Iran closed the Strait of Hormuz on Wednesday in response to Israel’s attacks on Lebanon.

“We have seen an uptick of traffic in the strait today, and I will reiterate the president’s expectation and demand that the Strait of Hormuz is reopened immediately, quickly and safely,” Leavitt said.

Leavitt said ceasefires are fragile by nature and the ceasefire with Iran did not apply to Lebanon.

Global energy infrastructure and fuel prices have been impacted by the blockade of the Strait of Hormuz during the conflict.

Alan Wooten and Andrew Rice contributed to this story.