Inflated Costs Boost Costs to End Users as Trucking Companies are Hit Hard by Increased Taxes in Illinois

Drivers aren’t the only ones frustrated with the increase in the Illinois gas tax, trucking companies also fear this tax increase could cost them thousands. 

Illinois lawmakers voted to increase the fuel tax, to pay for the $45 billion capital plan.That plan, known as “Rebuild Illinois,” will improve roads, bridges and other transportation projects. 

Currently the state collects 19 cents on each gallon of gas sold and 21.5 cents on diesel, but under the new legislation both of those rates would double.

Starting July 1, a gallon of gasoline will increase to 38 cents and diesel will rise to 45.5 cents a gallon. 

Dan Bost owns Bost Trucking Service in Murphysboro, a third generation trucking company, moving anything from landscaping products to household jobs. 

“They are destroying the state’s economy,” Bost said. “If they want to maybe increase it five cents or something like that, but to increase it 24 cents?”

Bost Trucking Company said their customers, that buy products like rock, can expect to see an added fuel surcharge on their bill. 

Bost said he thinks the increase in diesel will add an extra $20,000 onto their fuel bill for the year. 

“It’s good to be efficient but it makes it tough in Illinois to be efficient,” Bost said. “It’s just one more thing in the state of Illinois that  makes us uncompetitive.”

Brad Roberts is the operations manager at Shawnee Express in Herrin, another family owned trucking business in southern Illinois. 

Shawnee Express transports car parts and boats throughout multiple states. 

“In Illinois, the raising of our taxes is inevitable,” Roberts said. “The cost of the inflated prices will certainly find it’s way to the end user and to the store shelves and at the warehouses.”

Shawnee Express’ 75 semi trucks can hold anywhere from 250 to 300 gallons of fuel. 

Roberts said this 24 cent increase will cost them about $11,000 a month. 

“What’s frustrating to people is when they raise taxes and say they are going to go to one thing and then it doesn’t improve any,” Roberts said. “If the money is used for these purposes exclusively, then these up grades will be very welcome.”

The legislation also increases vehicles registration fees. 

Most drivers will see a $50 jump in fees, but for commercial vehicles like semis, companies will see a $100 dollar increase. 

Companies will get a break in a commercial distribution fee. Lawmakers voted to stop collecting the $400 fee starting July 1. 

About royfmc

BS in Environmental Engineering from Northwestern University's McCormick College of Engineering MBA from DePaul University's Kellstadt's College of Business JD from DePaul University's College of Law Website:
This entry was posted in #madigoon, #taxation, Elections, gasoline, Illinois, Illinois Pensions, illinois politics, Illinois Tollroad, infrastructure, mike madigan, News, political satire, politics, Pritzker, Rauner, referendum, Roy F. McCampbell, senator durbin, senator Mulroe, Social Media, Taxation, Transportation and tagged , , , , , , , , , , , , , . Bookmark the permalink.

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