Politicians will tell you that the state motor fuel tax is in line with other states. That's half of the story. Illinois applies sales tax to gasoline. Surrounding states either do not apply sales tax or it is at a lower rate. In addition with Home Rule in Illinois, local governments can apply sales and motor fuel taxes. This does not happen in surrounding states. Marketing gasoline and diesel fuel near bordering states is difficult or impossible. The table below show taxes in surrounding states. Taxes were in effect 6/1/2000.
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