Transportation (Transportation Funding)

SB 3986 stops a scheduled July 1, 2026 increase to Illinois' motor fuel tax that would have been triggered by the Consumer Price Index (CPI). This bill directly affects motor fuel retailers and consumers by preventing a tax hike that would have automatically occurred based on inflation. The key provision amends the Motor Fuel Tax Law to specifically exclude the July 1, 2026 CPI adjustment, effective immediately upon enactment. The change halts an automatic annual tax increase mechanism tied to inflation data.

Amends the Motor Fuel Tax Law. Provides that an increase in the rate of tax based on the change in the Consumer Price Index shall not occur from July 1, 2025 until July 1, 2027. Effective immediately.

Amends the Motor Fuel Tax Law. Provides that, beginning on July 1, 2025, the rate of tax shall be $0.19 per gallon (currently, 39.2 cents per gallon, adjusted each year according to the percentage increase in the Consumer Price Index), plus an additional 2 1/2 cents per gallon for diesel fuel, liquefied natural gas, or propane. Amends the Illinois Municipal Code. Provides that no tax may be imposed under the Municipal Motor Fuel Tax Law on or after July 1, 2025. Preempts the exercise of home rule powers. Effective immediately.

Amends the Motor Fuel Tax Law. Provides that an increase in the rate of tax based on the change in the Consumer Price Index shall not occur from July 1, 2026 until July 1, 2027. Effective immediately.