SPRINGFIELD, Ill. -- Illinois State Rep. Bill Black (R) last week renewed his demand for immediate gasoline price relief, but such action appeared unlikely, reported the Urbana/Champaign News-Gazette.
Black and House Minority Leader Tom Cross (R) want the state to suspend the 19-cent-per-gallon state motor fuel tax for 30 days and eliminate the state's 5% sales tax on gasoline for 60 days.
Based on last Wednesday's prices, Black said the two proposals together could save drivers about 28 cents per gallon, while costing the state [image-nocss] an estimated $225 million.
Almost a month ago, Black sent Democratic Governor Rod Blagojevich a letter asking for a special session to enact the gasoline price tax breaks, but said he never received a response. On Wednesday, he sent a similar letter to Senate President Emil Jones (D) and House Speaker Michael Madigan (D).
The only way the General Assembly can convene in special session is at the call of the governor or at the joint request of Jones and Madigan. Cindy Davidsmeyer, spokesperson for Jones, told the newspaper that his office had not yet received the letter and therefore could not comment.
But Madigan's spokesperson, Steve Brown, indicated that a special session was unlikely. As you know, we tried this a couple of years ago and it failed. Brown told the paper. It was a complete folly. Legislators suspended the tax for a short time, and the refiners, the gas station operators just kept the money in their pocket. If that didn't work with $2 a gallon, it won't work with $3. Why would we want to give that industry even more money?
An American Road & Transportation Builders Association study cited by the News-Gazette found that Illinois gave up an average of 7.5 cents per gallon in tax revenues by suspending state sale taxes on gasoline from July 1, 2000, through Jan. 1, 2001, but motorists only saved an average of four cents per gallon during that period.
Cross' spokesperson, David Dring, admitted that the state had no way of ensuring that the entire tax break is passed on to consumers, but he said House Republicans believed the proposal would work as intended. It is a potential concern, but we have talked to many of the operators and they said they would definitely pass on the savings because people who buy gas would have a little more money in their pockets to spend inside, he told the paper.
The Blagojevich administration, which has been cool to the idea of a temporary tax break, did not return a call seeking comment on Wednesday, said the report.
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