Illinois & # 39; new 38 percent gas tax will likely send drivers to Indiana, experts say – Story
HAMMOND, Ind. (AP) – Petrol tax burden in Illinois is likely to send several drivers in search of better prices in Indiana, but it is unclear whether a higher tax on cigarettes will have the same effect, analysts said.
As of July 1, Illinois gas tax will double from 19 cents to 38 cents per gallon, compared to 29 cents per gallon tax in Indiana.
"The food industry in the Illinois gas station is on the list of endangered species," says William Fleischli, Executive Vice President of the Illinois Petroleum Marketers Association / Illinois Association of Convenience Stores, The Times of Northwest Indiana. [1[ads1]9659002] GasBuddy.com Petroleum analyst Patrick DeHaan agreed.
"Drivers shopping around will find easy savings by going into Indiana, and it will probably lead to losses in gallon sales for Illinois," DeHaan said.
Also next month, cigarettes will cost $ 1 more per pack of Illinois at the top of $ 1.98 tax per package already in place. Elena Ivanova, from Chicago's health department, told the Associated Press that the rate of cigarettes in the city – already the highest in the country – would increase to $ 8.16 per package.
By comparison, Indiana taxes each pack of cigarettes 95 cents.
Gus Olympidis, CEO of Family Express convenience stores, said that while Indian's cigarette tax is much lower, this cost benefit could be lost in the next legislative session when Indiana lawmakers could again consider increasing cigarette tax.
A proposal to raise the tax by $ 2 per package failed in Indiana legislator this year, despite support in the polls and support of the Indiana Chamber of Commerce.
Nevertheless, Fleischli foresees that cigarette and gas tax increases, combined, will be detrimental to businesses in Illinois.
"Boundaries are widening, and our customers will cross them to buy engine fuels, cigarettes and other related items, which cost the state tax dollars and the company's profits," he said. "Our fuel volumes will go down 2% to 3% a year for about three years and start recovering. Internal sales will go down 10% to 12% and can never recover."
