For the first time in its history, the City of Elmhurst is considering imposing a motor fuel tax of one and a half cents per gallon.

The city council is expected to vote on the proposed tax at its Monday, Feb. 16 meeting. 

The motor fuel tax would help the city cope with a $6 to $6.5 million budget deficit, and  with a loss of revenue from the state motor fuel tax.

“One of the reasons the city is considering the tax is because our state motor fuel tax has declined,” said assistant finance director Tom Trosien. “A (city) motor fuel tax would be used for street repairs and for the general fund.”

If approved, Trosien said the tax would bring in about $250,000 a year.

The tax was recommended by the city’s finance task force which is made up of residents who were appointed to help the city determine how to bridge its budget gap.

William McCloskey, vice president of Texor Petroleum which has a gas station in Elmhurst, said he is relieved that the proposed tax is not more.

“They were originally considering a five cent increase,” McCloskey said. “I am thankful they involved us in the process."

McCloskey said he asked the city not to impose a tax that would make gas in Elmhurst more expensive than in Cook County. He said DuPage County has a 4 cent per gallon motor fuel tax and Cook County’s is five and a half cents. In addition, DuPage County has a 7.25 percent sales tax. Cook County’s sales tax is ten and a half percent.

Although he is relieved proposed tax is not higher, McCloskey said it will make it harder for gas stations to make a profit in Elmhurst.

“We don’t like taxes,” he said. “It impacts our business. We felt it was important to maintain our advantage over Cook County.”

The city’s other efforts to increase revenues over the past year include a property tax increase that was approved in December. The increase means the owner of a $400,000 house pays about $250 more a year in taxes.

In addition, the city approved a 0.25 increase in the home-rule sales tax last year.

If the motor fuel tax is approved, Trosien said it may take effect May 1.

By Annemarie Mannion

Triblocal.com reporter