TO: Finance Committee
FROM: Beth Beatty, City Manager
SUBJECT:
title
Ordinance Amending Chapter 28 - Taxation Article IX. Retail Purchase of Motor Fuel of the City of Joliet Code of Ordinances
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BACKGROUND:
The Finance Department conducted a survey and found that local fuel taxes do not automatically result in higher prices and the impact on consumers will be minimal. For example, a person who drives 15,000 miles in a year, in a vehicle that gets 20 miles per gallon, would pay $7.50 per year, if the tax results in higher fuel prices.
A survey was conducted earlier this year of surrounding communities and fuel prices. The results showed that communities with higher fuel tax rates did not have higher fuel prices. For example, Channahon had the highest diesel tax with the lowest price at the pump and New Lenox had no diesel tax with the highest price at the pump. Additionally, the results showed that one station had the same price at the pump regardless of the varying fuel taxes.
This amendment is projected to generate an additional $1,067,500.00 in revenue from diesel tax, for the repair of damaged roads caused by the trucking industry. This also clarifies that the tax also applies to bulk fuel being delivered to privately owned fuel tanks within the City.
CONCLUSION:
Approval of this item will provide long term funding for the repair of damaged roads caused by the trucking industry and maintenance of the City’s fleet of vehicles.
RECOMMENDATION:
recommendation
It is recommended that the Mayor and City Council approve this ordinance.
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