Is there a Ghetto Tax for gasoline in Chicago? - But I got my answer: see comment at bottom (Taxes add an average of 69 cents to every gallon of gas in Illinois, and far more in high tax areas such as Chicago. That places Illinois up with the highest gas-taxing states in the nation, along with Connecticut, 70.3 cents, and New York, 69.1 cents, according to an analysis by petroleum institute. The national average is about 50 cents) I live just west of the Chicago Westside community, further away distance-wise from the central processing facilities for gasoline and other refined oil products (see map). The retail gasoline price for non-Cosco/Sams Club and/or similar outlet, was $2.16 p/gal near where I live. But, less than two miles east (going toward the City and therefore closer to terminal facilities) the price for gas was as high as $2.49 p/gal. As one travels west, or closer toward Chicago, prices rise to $2.80 - 2.99 and more p/gal. Why the poorest pay more, though, is beyond me. Other images included in this post show high/low gas prices for the region. None of it has to do with distance form refinery. So how does one explain? ADDENDA: BLAME IT ON LOCAL TAX LEVIES, INCLUDING A SALES TAX - One reason for higher prices is because of the multiple layers of taxes in Chicago, said John Felmy, chief economist at the American Petroleum Institute. Illinois is one of only seven states to charge sales tax on gasoline. Gas taxes in most states are assessed as a fixed number of cents per gallon. No matter how wildly oil prices swing, drivers in those states pay the same built-in taxes. But Illinois sales tax changes, calculated as a percentage of the sale. So as gas prices rise for all of America, Illinois prices rise faster. The Illinois state sales tax, normally 6.25 percent, is added to every gallon. However, if the gas is mixed with ethanol, which nearly all of it is, its taxed at a lower rate, or 5 percent. So, back when gas cost $1.25, as it did for so many years, applying a 5 percent sales tax would have added about 6 cents to the cost. But tack on 5 percent to $4 gasoline, and youre talking an additional 20 cents per gallon. But thats just state sales tax. Illinois is unusual for allowing counties and municipalities to tax gasoline. Consider total sales taxes in Chicago: City, county and Regional Transportation Authority sales taxes add another 3.5 percent, but because of the ethanol factor, its 2.8 percent. In sales taxes alone, a $4 gallon of gas goes to about $4.31, according to calculations based on figures provided by the Illinois Department of Revenue. But theres more. When you buy gas in Chicago, you pay a couple more flat taxes. The city of Chicago and Cook County not only levy sales taxes but also flat taxes of 5 cents and 6 cents, respectively. Illinois is the only state to allow all these different taxes to be levied in concert, Sykuta said. Worsening the problem is that some sales taxes are applied on top of flat taxes, charging motorists tax on tax, which only accelerates the total cost. articles.chicagotribune/2011-06-19/business/ct-biz-0619-bf-gasoline-20110619_1_prices-rocket-gas-prices-crude-oil-prices/2
Posted on: Sat, 03 Jan 2015 01:49:17 +0000
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