Local Gas Tax

gas tax

On November 11, 2019, the Village of Buffalo Grove passed Ordinance 209-58 enacting a two cent ($0.02) Municipal Motor Fuel Tax on all motor fuel sales in the Village of Buffalo Grove.  

For 2020, the Village faces approximately $9-11 million in roadwork costs ($6.8 million from previous years plus the annual estimated cost of $3.5-$4 million moving forward) and the MFT funds are estimated to generate approximately $1.6 million.

A municipal gas tax would help offset this shortfall.  The tax would exclusively tax motor fuel purchases and be remitted to the Village.  The tax would be structured to operate as a user fee. Therefore, those who heavily utilize Buffalo Grove roads and benefit from ongoing maintenance and repairs would most directly pay for this cost at Buffalo Grove gas stations. 

Of thirty-five communities surveyed in the Chicago Metro area in 2018, almost thirty have developed a municipal gas tax.  Municipal gas tax rates range from $0.020 to $0.060 per gallon.  The average tax is $0.037 per gallon and the most frequent municipal gas tax rate is $0.040.  

gas tax chart