Champaign City Council will vote on an ordinance that would approve a four-cent motor fuel tax for the city at Tuesday’s regular meeting.
The motor fuel tax originated as a study report on Nov. 15 and has since gained approval for direction from the council. Champaign planning director Bruce Knight said the resolution has not changed significantly from the original report.
If approved, motorists refueling at Champaign gas stations would be charged an additional four cents per gallon, effective February 1, 2012. It wouldn’t be the first motor fuel tax in the area: Urbana has a similar tax in place. However, Champaign’s tax rate would remain flat at four cents, while Urbana’s rate is inflationary.
The tax would generate an estimated $1.5 million annually for local infrastructure projects. In the November report, it said that the majority of the revenue would be allocated for arterial road projects.
Champaign Mayor Don Gerard said he has received many calls regarding the tax, mostly positive. The calls against the tax, he added, tend to be from people who believe this is a major tax increase.
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Gerard said the tax will be barely noticeable and important for street improvement. He said many streets need the repairs, and this is the best option. Champaign currently has a backlog of more than $60 million in necessary arterial street improvements from over the last decade.
“The arguments made against this ignore all of the obvious advantages,” Gerard said. “It’s a direct investment to infrastructure we need not just for our local motorists but for economic development. We’ve got to fix our roads and our arterial streets.”
The resolution will be one of 12 items up for a vote at the city council chambers, 102 N. Neil St., at 7 p.m.