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<< Rail News Home: Mechanical

5/6/2004    Freight News

Rail News: Mechanical

Illinois fuel-tax bill would pump up railroads' diesel costs, ASLRRA says

Illinois legislators recently proposed a bill that would expand the state's motor fuel tax to include non-farm, off-highway fuel users, including railroads, contractors, barges, ships and mining companies, according to the American Short Line and Regional Railroad Association's (ASLRRA) newsletter released May 4.

If enacted, the legislation will require fuel users previously exempted from Illinois' motor fuel tax to pay state and local sales taxes on every gallon of diesel, as well as an additional 21.5 cents per gallon in motor fuel taxes.

The tax change would add $40 million to Class Is' annual fuel costs, and threaten the viability of certain Illinois short lines and their shippers, association officials said.

ASLRRA President Richard Timmons sent an email to officials at all Illinois railroads and rail suppliers requesting that they contact state legislators to voice concern about the proposed legislation's impact on the rail industry.

Contact Progressive Railroading editorial staff.