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Bill

Bill

SB 2359

MOTOR FUEL-CPI ADJUSTMENT

104th Regular Session Introduced by Jason Plummer

Illinois bill linking motor fuel tax rates to inflation to automatically increase revenue for transportation without repeated legislative action.

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Bill Summary · SB 2359

Legislative bill overview

SB 2359 would establish an automatic cost-of-living adjustment (CPI) mechanism for Illinois's motor fuel tax, linking tax rates to inflation rather than requiring legislative action for each increase. The bill aims to maintain the purchasing power of fuel tax revenue as inflation erodes its real value over time.

Why is this important

Motor fuel taxes fund road maintenance, bridge repairs, and transportation infrastructure. Without adjustment, inflation gradually reduces tax revenue in real dollars, creating funding gaps for infrastructure upkeep. An automatic CPI adjustment would theoretically stabilize transportation funding without repeated legislative battles over tax increases.

Potential points of contention

  • Regressive tax burden: Motor fuel taxes disproportionately affect lower-income drivers and rural communities with longer commutes, and automatic increases would compound this impact without exemptions or offsets
  • Limited legislative oversight: Automatic adjustments reduce lawmakers' ability to control tax policy, potentially frustrating elected officials and those opposed to tax increases on principle
  • Economic competitiveness concerns: Illinois already has relatively high fuel taxes; automatic increases could push more drivers to neighboring states with lower rates, potentially reducing in-state consumption and counteracting revenue goals
  • Transparency and predictability: Drivers may face unpredictable fuel cost increases tied to federal inflation metrics they don't control

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

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