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HB 1637

MOTOR FUEL-NO CPI INCREASE

104th Regular Session Introduced by Amy Grant

Bill eliminates automatic CPI-based increases to Illinois motor fuel taxes, freezing rates to reduce fuel costs but potentially reducing state transportation infrastructure funding.

Referred to Rules Committee
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WeVote Research Nonpartisan
Bill Summary · HB 1637

Legislative bill overview

HB 1637 proposes to freeze motor fuel taxes in Illinois and prevent them from increasing based on the Consumer Price Index (CPI). Currently, Illinois law allows fuel tax rates to adjust annually according to CPI changes, which can increase the per-gallon tax burden. This bill would eliminate that automatic adjustment mechanism.

Why is this important

Motor fuel taxes fund road maintenance, infrastructure repairs, and transportation projects. Freezing these taxes affects state revenue for infrastructure while potentially providing cost stability for consumers and businesses that rely on fuel. The fiscal impact depends on inflation rates and the duration of the freeze, which could significantly alter transportation funding availability.

Potential points of contention

  • Revenue implications: Freezing fuel taxes reduces state transportation funding, potentially delaying road repairs, bridge maintenance, and infrastructure projects unless alternative funding sources are identified
  • Inflation erosion: A permanent freeze means the tax's purchasing power declines over time, gradually reducing infrastructure funding without explicit legislative action to restore it
  • Equity concerns: The policy benefits frequent fuel consumers (commercial operators, long-distance commuters) while reducing public investment in transportation that benefits all residents
  • Implementation details: The bill's language doesn't specify whether it's a temporary or permanent freeze, or if it applies retroactively to past CPI adjustments

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

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