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IL gas tax freeze keeps promise to Rebuild Illinois, fails to address gas tax reform

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(WSIL) -- There were mixed reactions in the wake of Illinois lawmakers' decision to suspend the gas tax increase scheduled for July.

The increase was part of the 2019 Rebuild Illinois plan passed with bipartisan support.

Kevin Artl, CEO and president of the American Council of Engineering Companies of Illinois says it's a good move because it keeps the promises made in 2019.

"Illinois is the crossroads of the nation. We should have the best infrastrucutre because we will attract a lot of companies to come here," Artl said.

But Josh Sharp, CEO of the Illinois Fuel & Retail Association, disagrees. Illinois is one of six states that imposes a sales tax on top of a fuel tax. That's something Sharp says needs to be readdressed and reformed.

"This leds to severe tax pyramiding for consumer and it leads them to pay the highest gas prices not just in the midwest but in the United States," Sharp said.

The freeze is not real relief and guarantees two gas tax increases in a single year, Sharp argues. But Artl says all that money is going back into repairs.

"Our roads are going to be repaired so you're not hitting potholes and causing damage to your cars," Artl said. "We're going to try and expand capacity on [roads] so you'll be spending less time in cars."

Sharp says he's in favor of infrastructure projects and putting people to work but feels the state could've done better to control its spending and cost at the pump.

Sharp is also exploring legal options over a recently passed amendment to the gas tax freeze. It states that gas stations must post signs outside their store to inform customers about the gas tax or face daily fines.

Sharp says these are considered 'petty offenses' under the amendment and fines gas stations $500 a day if they don't place signs on their storefront.

"We think it's... not only unconstitutional to force us to put up those signs but there's also some very real equal protection problems as well with having two industries being treated so differently under the law," Sharp said.

Sharp is referring to the one-year suspension of Illinois' grocery tax. The state recommends grocery stores inform customers about the suspension of the grocery tax by putting a sign for customers to see or have it printed on their receipts.

Meanwhile at the Pittsburg Convenience Center, people are flocking to get affordable gas. Owner Michael Berry is charging about $3.86 a gallon though he knows most of the money is in his store not outside.

"If they just come up and get gas yeah we're going to lose a little bit of money," Berry said. "We just hope that they come in and buy a soda buy a hamburger or try one four fantastic sides of ribs."

Berry says he'll keep helping customers as long as he can but the real issue he says is the number of taxes on a gallon of fuel.

"The retailer still has to pay 8.25%, 9.25%, 10.25% sales tax on top of that," Berry said.

Anchor & Reporter

Danny Valle anchors News 3 This Morning on Saturday and Sunday and reports Monday-Wednesday at News 3 WSIL.

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