Cabello proposes bill to repeal gas tax hike during recession

SPRINGFIELD — The recently approved motor fuel tax increase in Illinois would be repealed during periods of high unemployment under legislation introduced Monday by state Rep. John Cabello, R-Machesney Park.

Cabello’s bill would fully repeal the tax hike if the seasonally adjusted unemployment rate in Illinois exceeds 8% for a period of three consecutive calendar months. In that event, the Illinois Department of Employment Security would be required to notify the state’s Department of Revenue, the agency responsible for adjusting the tax rate collected by retailers that sell gasoline and diesel fuel.

“It is an unfortunate reality that 21 new or increased taxes were approved in Springfield this year,” Cabello said in a news release. “While there is no way we can ever get those who voted for the gas tax hike to repeal it, we should all come together to protect the working families who already can’t afford it if and when a recession hits Illinois.”

Cabello’s bill has been referred to the House Rules Committee.

Lawmakers voted in June to double the state’s tax on gasoline from 19 cents to 38 cents per gallon and increased the tax on diesel fuel by 24 cents to 45-and-a-half cents per gallon. The gasoline tax increase took effect July 1 to help fund the $45 billion capital plan known as “Rebuild Illinois” which is designed to repair state roads and bridges.