No double tax on motor fuel

The Daily Herald editorial in the Friday, Feb. 9, paper stated that after the state motor fuel tax (MFT) is applied to the price of motor fuel, the state sales tax is added on top of that. The editorial stated the state was “taxing your taxes.”

Your editorial is incorrect on that. The state MFT is paid at the distributor level. The sales tax is paid at the retailer level, namely by the gas station or pump operator. The retailer is allowed to deduct the MFT amount from the taxable receipts that are sent to the Department of Revenue. The Illinois Administrative Code clearly states that the Illinois Motor Fuel Tax is not considered to be a part of the “selling price” of the motor fuel.

David Harris, Director

Illinois Department of Revenue