MOTOR FUEL TAX FUNDS

By JOHN McCREE Illinois Department of Transportation

Motor fuel tax revenues were up again during calendar year 1986. The full impact of the three-phase 5 1/2-cent-per-gallon increase was finally realized during 1986. The three-phase increase, which initially became effective July 1, 1983, was completed with the last one-cent increase on July 1, 1985. During the time that the tax increase was being implemented, July 1, 1983 to July 1, 1985, your motor fuel tax allotments actually increased 34.4 percent over 1982 tax revenues. We had estimated an increase of 34.6 percent based on previous fuel consumption figures. The accuracy of this projection confirms that fuel consumption has remained essentially constant.

Gross collections, which included $83,623,994.62 of sales tax revenue, were 6.23 percent above 1985. This resulted in increased motor fuel tax allotments whereby all local governments received 2.44 percent more in calendar year 1986. Approximately 11 cents of every dollar you received during 1986 was a direct result of the 2 1/2 percent of the 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 1986. Municipalities received $16.83 per person, up from $16.49 last year. Road districts received $738.61 per mile, up from $721.16. Counties received their allotment on the basis of license fees for the previous year.

Each month your motor fuel tax allotment varies directly with the total monthly motor fuel tax collections (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 Robert Steskal in the Bureau of Local Roads and Streets in Springfield at (217) 785-0394. •

Credits to: Robert F. Steskal, Unit Chief of Administrative Services

Page 24 / Illinois Municipal Review / January 1987