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Bill

Bill

SB 2360

MOTOR FUEL-CPI ADJUSTMENT

104th Regular Session Introduced by Jason Plummer

Illinois bill ties motor fuel tax to inflation via CPI adjustment, enabling automatic tax increases without legislative votes to maintain infrastructure funding as prices rise.

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Bill Summary · SB 2360

Legislative bill overview

SB 2360 would establish a mechanism to automatically adjust Illinois's motor fuel tax based on the Consumer Price Index (CPI), linking tax rates to inflation rather than requiring legislative action for each change. The bill aims to maintain the purchasing power of fuel tax revenues without repeated legislative votes on rate increases.

Why is this important

Motor fuel taxes fund road and bridge infrastructure maintenance, and inflation erodes their real value over time—meaning fewer roads can be maintained with the same tax revenue. An automatic CPI adjustment would ensure consistent funding for transportation infrastructure while removing the political friction of periodic tax-increase votes. However, it also means fuel taxes could increase without explicit legislative approval each time.

Potential points of contention

  • Automatic tax increases without vote: Critics may object to delegating tax-setting authority to a formula rather than requiring lawmakers to justify increases to constituents
  • Consumer impact during inflation: Drivers would see fuel costs rise both from market prices and tax increases simultaneously, compounding affordability concerns
  • Revenue predictability vs. fiscal surprise: While predictable for budgeters, unexpected CPI-driven increases could surprise motorists and create political backlash
  • Precedent for other taxes: Passage could prompt similar automatic-adjustment proposals for other tax types, raising broader fiscal governance questions

Compiled from official sources — confirm details with the bill’s official record.

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