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Bill

SB 3986

MOTOR FUEL-CPI ADJUSTMENT

104th Regular Session Introduced by Chris Balkema and 1 co-sponsor

The bill would link motor fuel charges to the Consumer Price Index, adjusting taxes or fees periodically to reflect inflation.

Added as Co-Sponsor Sen. Chris Balkema
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Bill Summary · SB 3986

Bill overview

  • Chamber and session: Illinois, 104th General Assembly
  • Bill: SB 3986
  • Title: MOTOR FUEL-CPI ADJUSTMENT
  • Primary purpose: Establish a mechanism to adjust motor fuel-related charges, taxes, or fees based on the Consumer Price Index (CPI) to reflect inflation over time.

Key provisions and changes

  • CPI-based adjustment mechanism: The bill would implement periodic adjustments to motor fuel-related charges (likely taxes, fees, or surcharges) using a CPI index to maintain purchasing power and revenue levels.
  • Triggers and schedule: The bill specifies how often adjustments occur (e.g., annually or on a fixed schedule) and the specific CPI measure to be used (e.g., national or regional CPI for urban consumers). It may also define a floor/ceiling or caps for yearly changes.
  • Calculation method: A formula tying the current rate to the CPI change over a defined period, with clear instructions on rounding and application to motor fuel transactions.
  • Administrative responsibilities: Provisions may assign the state taxation or revenue department with implementing the adjustments, notifying stakeholders, and publishing updated rates.
  • Effective date: The bill would designate when the CPI adjustments take effect and any transitional period if applicable.
  • Legislative review or sunset: There may be provisions for periodic legislative review or a sunset clause to reassess the mechanism.

Who or what would be affected

  • Motor fuel consumers: Direct impact through potential changes to the per-gallon fuel tax, surcharge, or related fees.
  • Fuel retailers and distributors: Businesses would implement updated rates at points of sale or in license/permit calculations.
  • State revenue and budgeting: Government revenue projections would be indexed to inflation, potentially stabilizing purchasing power for motor fuel funding streams.
  • Related programs: Any earmarks or programs funded by motor fuel revenues could see adjusted funding levels over time.

Procedural and timeline aspects

  • Introduction and sponsorship: SB 3986 is sponsored as a co-sponsored measure by Sen. Jason Plummer and Sen. Chris Balkema.
  • File and readings: Filed and given first reading on February 6, 2026; referred to Assignments on the same date.
  • Action history: On March 4, 2026, added as a co-sponsor (Sen. Balkema). No additional actions listed beyond sponsorship and referral in the provided history.
  • Next steps: The bill would advance through committee consideration, potential amendments, and votes in the Senate and then the House (if approved by the Senate), with final passage subject to legislative approval and potential signature or veto by the governor.

Notes for readers

  • The summary reflects the bill’s stated title and action history as provided. Specifics such as the exact CPI measure, adjustment frequency, dollar amounts, caps, or transitional provisions would be detailed in the bill text itself. For a complete understanding, review the full language of SB 3986 and any fiscal impact statements or amendments submitted during committee hearings.

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

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