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Lawmaker Wants State Gas Tax Cut
(IRN) -- Some lawmakers want to explore oil reserves in the United States to lower gas prices; others want to cut subsidies to oil companies. But another lawmaker wants to lower the price at the pump by cutting taxes.

State Rep. Wayne Rosenthal (R-Morrisonville), a first-year House member, suggests the state should eliminate the 5 percent state sales tax on gasoline. He says with prices well above $4, it would save about 20 cents a gallon.

"We would lose the sales tax revenue, but on the other side, we would gain the road tax, a 19 cent road tax, by people buying in Illinois as opposed to going across the river to Missouri or Indiana," he says.

Rosenthal says the convenience stores will also benefit from increased in-store sales. When the state suspended the tax in 2000, Rosenthal says stores in the middle of the state saw as much as a 50 percent increase in total sales. Near the borders that jumped to an average of 85 percent.

The state sales tax would be eliminated, but all applicable local and federal taxes would still be collected.

This proposal, if signed, would take effect in July and expire at the end of the calendar year. It's in bill form, HB 3769, but has not yet been heard in committee. Rosenthal is unsure if it will be heard this session.

(Illinois Radio Network)
05 08 11 by Newsroom
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