The passage of HB2974 could have significant financial implications for both consumers and retailers in the state of Illinois. By eliminating the tax on marine fuel, the bill is likely to reduce operational costs for businesses that rely on watercraft for commercial activities, such as fishing, tourism, and transportation. Additionally, recreational boaters would benefit from lower fuel prices, potentially increasing usage of lakes and rivers for leisure activities, thus having a favorable effect on related local economies.
House Bill 2974 proposes an amendment to the Illinois Motor Fuel Tax Law, specifically to exempt marine fuel from the tax imposed under the Act starting July 1, 2023. The term 'marine fuel' is defined in the bill as motor fuel specially formulated for the use in the propulsion of watercraft. This legislative change aims to alleviate the financial burden on operators of boats and other watercraft by making marine fuel more affordable through a tax exemption.
While proponents of the bill argue that the tax exemption will support the economy and encourage outdoor recreational activities, there may be concerns about the loss of tax revenue traditionally collected on marine fuel. This loss could affect funding for state-level projects and services, particularly those connected to infrastructure and maintenance of waterways. Additionally, some critics might question whether the exemption is necessary and if it disproportionately benefits wealthier boat owners rather than the average citizen.