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Illinois tax hikes may benefit Indiana gas stations, stores

Gasoline tax hikes in Illinois will likely send more drivers looking for better prices in Indiana, but it’s unclear if a higher levy on cigarettes will have the same effect, industry analysts said.

Posted: Jun 17, 2019 12:25 PM

HAMMOND, Ind. (AP) — Gasoline tax hikes in Illinois will likely send more drivers looking for better prices in Indiana, but it’s unclear if a higher levy on cigarettes will have the same effect, industry analysts said.

Starting July 1, the Illinois gas tax will double from 19 cents to 38 cents per gallon, compared to the 29 cents per gallon tax in Indiana.

“The gas station convenience store industry in Illinois is on the endangered species list,” William Fleischli, the executive vice president of the Illinois Petroleum Marketers Association/Illinois Association of Convenience Stores, told The (Northwest Indiana) Times .

GasBuddy.com petroleum analyst Patrick DeHaan agreed.

“Drivers that shop around will find easy savings by going into Indiana, and that will likely lead to a loss in gallon sales for Illinois,” DeHaan said.

Also next month, cigarettes will cost $1 more per pack in Illinois on top of the $1.98 tax per pack already in place. Elena Ivanova, of Chicago’s health department, told the Associated Press that the tax on cigarettes in the city — already the highest in the nation — will increase to $8.16 per pack.

By comparison, Indiana taxes every pack of cigarettes 95 cents.

Gus Olympidis, the CEO of Family Express convenience stores, said that although Indiana’s cigarette taxes are much lower, that cost advantage could be lost during the next legislative session when Indiana lawmakers could again consider raising cigarette taxes.

A proposal to raise the tax by $2 per pack failed in the Indiana Legislature this year, despite support in the polls and the backing of the Indiana Chamber of Commerce.

Nonetheless, Fleischli predicts that the cigarette and gas tax hikes, combined, will be devastating to businesses in Illinois.

“Borders will become wider and our customers will cross them to buy motor fuel, cigarettes, and other ancillary items, costing the state tax dollars and companies profits,” he said. “Our motor fuel volumes will go down 2% to 3% a year for about three years then start to recover. Inside sales will go down 10% to 12% and may never recover.”

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Illinois Coronavirus Cases

(Widget updates once daily at 7 p.m. CT)

Confirmed Cases: 383687

Reported Deaths: 9792
CountyConfirmedDeaths
Cook1774655433
DuPage23099606
Lake20815511
Will18621427
Kane16903347
Winnebago10340180
St. Clair7993220
Madison7221154
McHenry6452121
Champaign617229
Unassigned4778270
Peoria462273
McLean420934
Rock Island407090
Sangamon406763
Kankakee342180
Macon316052
Kendall270430
Tazewell268756
LaSalle242663
DeKalb239942
Coles193539
Adams188820
Williamson188859
Boone187825
Clinton178926
Vermilion174110
Jackson154826
Whiteside146027
Knox131716
Randolph128315
Ogle12187
Effingham11834
Marion102819
Stephenson10187
Franklin9869
Grundy9777
Morgan93424
Monroe92530
Bureau91316
Jefferson90748
Henry8537
Christian82529
Macoupin81611
Union78725
McDonough77120
Lee7402
Shelby69112
Fayette68524
Douglas6849
Crawford6516
Livingston64610
Woodford63714
Montgomery61516
Logan5994
Saline5679
Fulton5271
Jo Daviess5127
Bond5079
Warren5068
Iroquois49519
Wayne48612
Jersey47521
Cass46311
Perry44716
Carroll41911
Moultrie4154
Johnson3620
Pike3586
Lawrence3368
Richland33516
Clay31413
Hancock3144
Clark31017
Washington3102
Mason3091
Greene29515
Cumberland2946
Mercer2706
White2704
De Witt2646
Jasper26410
Piatt2540
Pulaski2401
Wabash2285
Ford19814
Menard1861
Edgar15710
Marshall1573
Massac1552
Henderson1290
Hamilton1262
Alexander1241
Brown1110
Edwards1090
Gallatin1072
Scott1070
Putnam920
Schuyler901
Stark863
Calhoun660
Hardin540
Pope421
Out of IL50

Indiana Coronavirus Cases

(Widget updates once daily at 8 p.m. ET)

Confirmed Cases: 164581

Reported Deaths: 4143
CountyConfirmedDeaths
Marion26055792
Lake14436358
St. Joseph9606168
Elkhart9271138
Allen8647231
Hamilton6400115
Vanderburgh617162
Tippecanoe396715
Porter347550
Hendricks3418134
Monroe335638
Johnson3286130
Delaware311575
Clark306263
Vigo275340
Madison250896
LaPorte239261
Cass229724
Warrick205065
Kosciusko201127
Floyd187468
Howard169466
Bartholomew147958
Marshall147428
Dubois146426
Wayne142031
Grant133539
Henry133030
Boone129150
Hancock124744
Noble122935
Jackson121018
Dearborn103128
Morgan100340
Lawrence96838
Gibson94412
Clinton92416
Daviess92334
Shelby90632
LaGrange82815
Knox81810
Harrison81024
Posey7767
Putnam77616
Fayette76719
DeKalb76011
Jasper6885
Miami6715
Steuben6608
Montgomery63122
White62316
Greene57838
Adams5607
Scott55413
Decatur52839
Ripley4838
Whitley4836
Clay4617
Sullivan45714
Wells45611
Huntington4455
Starke4438
Wabash4439
Orange42425
Spencer4176
Randolph39210
Jennings38713
Washington3873
Franklin38325
Fulton3785
Perry36914
Jefferson3655
Pike35718
Carroll34313
Jay3386
Fountain3293
Tipton28423
Vermillion2721
Parke2564
Rush2464
Blackford2394
Newton23711
Owen2151
Martin2050
Pulaski1783
Crawford1631
Brown1473
Ohio1337
Union1140
Benton1130
Switzerland980
Warren911
Unassigned0236