Mid-West Truckers Association has formally requested the State of Illinois and Governor J.B. Pritzker to take immediate action to provide relief to farmers, truckers, businesses and families facing exceptionally high fuel costs.

MTA recommends that the state consider the emergency suspension or removal of the applicable state sales tax on motor fuel, where legally authorized, to provide immediate relief at the pump.

“A suspension of the state sales-tax component would allow Illinois motorists, farmers, trucking companies, and other businesses to see the savings immediately. At current fuel prices, the savings could amount to more than 30 cents per gallon of diesel,” Vice-President, Mid-West Truckers Association, Matt Wells, said. “If the Governor is about affordability for everyone, then the double taxation of sales tax on top of the motor fuel tax with every gallon of fuel must stop.”

Other states have taken emergency measures in response to fuel prices, including allowing certain agricultural users to utilize off-road diesel on public roadways under emergency circumstances. A suspension of the Illinois state sales-tax would be a better option to provide relief to residents, farmers and transportation providers. The State of Illinois collects the second highest amount of taxes on motor fuel in the nation and is one of very few states who collect sales tax and a motor fuel tax.

Protecting the Illinois Road Fund

Any emergency action should be structured so that it does not jeopardize dedicated funding for Illinois roads and transportation infrastructure.

The Illinois Department of Revenue distinguishes the Motor Fuel Tax from other taxes imposed on motor-fuel transactions. Illinois' Motor Fuel Tax is specifically imposed under the Motor Fuel Tax Law, while the state also separately administers sales and use taxes.

“For that reason, the Governor should examine whether temporary relief can be provided through the state's emergency declaration authority without reducing dedicated Motor Fuel Tax revenues that support transportation infrastructure,” Wells said.

Transit funding should not come at the expense of Illinois fuel consumers

Illinois is also making significant changes to the way transportation and transit services are funded in the Chicago metropolitan region.

If additional state sales-tax revenues from motor-fuel purchases are being used to support transit programs, the state should consider whether temporary alternative funding can be provided during an emergency rather than continuing to place the entire burden on people purchasing fuel.

“Farmers and truckers cannot simply choose not to purchase diesel. They need fuel to plant and harvest crops, transport goods, deliver products, and keep Illinois' economy moving,” Wells said.

A request for immediate action

MTA respectfully asks Governor Pritzker and the Illinois General Assembly to:

  • Examine an emergency suspension or reduction of the applicable state sales tax on motor fuel.
  • Determine whether emergency authorities exist to provide immediate relief without reducing dedicated Illinois Road Fund revenues.
  • Provide transparent accounting of how much Illinois collects from motor-fuel sales taxes and where those revenues are being spent.
  • Consider permanent or temporary motor fuel sales tax relief measures for farmers, truckers, and other fuel-intensive businesses while fuel prices remain elevated.

“Illinois residents need relief now, not after another legislative session or budget cycle,” Wells said. “I urge the Governor and General Assembly to use every lawful emergency authority available to provide immediate fuel-cost relief while protecting the dedicated funding necessary to maintain Illinois roads.”