Motor Fuel Tax Funds By WILLIAM T. SUNLEY, Engineer of Local Roads and Streets Illinois Department of Transportation

Effective August 1, 1989, Public Act 86-16 increased the motor fuel tax from 13 cents per gallon to 19 cents per gallon. This tax was imposed in two three-cent increments, one became effective on August 1, 1989, and the other on January 1, 1990. Motor fuel tax revenues experienced a significant increase during calendar year 1990 due to this tax increase. Except for the months of January and February last year, the motor fuel tax allotments you received during 1990 included revenues generated by the full six cent increase. January and February allotments did not include revenue from the last three-cent increment because of the two month lag from the effective date to the actual collection of the new revenue. We had anticipated that when the full six-cent increase was collected for twelve consecutive months, your allotments would increase by approximately 22 percent over 1988 revenues if fuel consumption remained essentially constant. Fuel consumption was only down 0.2% through the first nine months in spite of high pump prices due to the Persian Gulf crisis. The figures for the last three months are not yet available but will probably show some decrease.

Gross collections, which included $63, 589, 009.84 of sales tax revenue, topped the one billion dollar mark for the first time and were 24.73 percent above calendar year 1989. Approximately six cents of every dollar you received during 1990 was a direct result of 1.7 percent of the total net sales tax deposited in the motor fuel tax fund each month.

The chart below shows Illinois motor fuel tax revenues that were distributed in calendar year 1990. Municipalities received $20.38 per person, up from $17.96 last year, Road Districts received $911.00 per mile, up from $799.22 last year. Counties receive their allotments on the basis of registered license fees for the previous year.

January 1991 / Illinois Municipal Review / Page 11

Each month your motor fuel tax allotment varies directly with the total monthly motor fuel tax collection (including the sales tax) which are deposited in the State Treasury. Should you have questions concerning your motor fuel tax allotment or should you not receive your monthly allotment by the end of the following month, please call Frank McCarthy in the Bureau of Local Roads and Streets in Springfield at (217) 785-5179. •

Page 12 / Illinois Municipal Review / January 1991