Illinois Republican representatives held a press conference recently in Springfield to address growing concerns over the state’s gas tax as prices surge above $4 per gallon.
Representatives Ryan Spain and Regan Deering introduced House Bill 5738, describing it as much-needed relief for working families facing affordability challenges. The bill proposes a six-month “holiday” from the sales tax on gasoline, effective from July 1st through December 31st.
Illinois’ gas tax automatically increases every July. As of July 2025, the tax reached 48.3 cents per gallon—the second highest in the nation—with another increase anticipated this July.
According to Spain, the proposed measure could reduce gas prices by approximately 20 cents per gallon by suspending the sales tax, while the motor fuel tax would remain in place. Currently, Illinois collects a 5% sales tax per dollar, per gallon of gasoline.
Spain also noted that State Republicans had previously suggested redirecting the 5% sales tax revenue from the state’s general fund to the road fund to invest in Illinois’ roads.
However, this proposal was dropped during the Transit Reform Package considered in the veto session in Springfield. As a result, funds collected from gas sales will now be allocated to mass transit, primarily benefiting the Chicago area.
“Downstate has seen systemic disinvestment in our road and bridge infrastructure over the past several decades,” Spain said. “But this escalated when Democrats seized sales taxes on motor fuel and interest from unspent road funds to support Chicago-area mass transit systems.”
House Bill 5738 is currently awaiting action in the Rules Committee and, if passed, would take effect immediately.