Transportation Modernization Plan Introduced in IL House

A transportation modernization program has been introduced in the IL Legislature.  Introduced by Rep. André M. Thapedi, D-Chicago, HB 3823 would raise $2 billion in annual revenue offset with pro-consumer and pro-business reforms.

The bill phases out the state sales tax on motor fuel with consumers realizing a combined 15 cent per gallon Motor Fuels Tax increase. The sales tax swap eliminates a state tax on motor fuel, narrows the price gap between Illinois and neighboring states, and creates consumer savings when gas rises above $2 per gallon.

The measure is supported by the IL Chamber of Commerce which says that while it does not take tax increases lightly, IL must act now to improve and invest in its infrastructure system to ensure the state remains the transportation hub of North America. The bill includes:

Annual funding of:

  • $600 million for IDOT
  • $240 million for local governments (a 40% increase over today’s funding)
  • $672 million for transit capital expenses
  • $20 million for the Grade Crossing Protection Fund to fund better rail/highway grade crossings
  • $2 million for construction trades training for disadvantaged populations

Bond funding of:

  • $4 billion to IDOT to accelerate bridge improvements
  • $1 billion for other needs (ports, federal grant match for local governments, transit

Read the Chamber’s news release here.  A Chamber fact sheet can be found here.

Leave a Reply

Your email address will not be published.