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Council raises local diesel fuel tax to 5¢, removes sunset clause
Summary
Decatur City Council unanimously approved an ordinance to raise the local diesel motor fuels tax to 5¢ per gallon (bringing parity with non‑diesel) and remove the tax's sunset clause; city staff estimate about $700,000 in additional annual revenue, dedicated to local roads.
The Decatur City Council on a unanimous 7–0 vote adopted an ordinance to increase the city’s local diesel motor fuels tax to 5¢ per gallon and to remove the ordinance’s sunset clause so the charge continues annually. City staff said the change brings diesel in line with the rate charged on non‑diesel fuel and is intended to sustain neighborhood road repaving.
City Manager (Ms. Hahn) told the council staff reviewed surrounding communities’ rates and diesel prices and estimated the increase would bring roughly $700,000 in additional local revenue per year. “This will just bring them both to $0.05,” she said, adding the tax revenues are visible on the city’s public works road‑map and are not swept into the general fund.
Council members stressed the equity rationale for the change. Councilman Horn said larger vehicles and truck traffic cause disproportionate damage to neighborhood streets and that a diesel parity was a reasonable step to maintain road quality. Councilman McDaniel noted the tax program has helped keep pavement conditions roughly stable over the past decade.
The ordinance also removes a previous sunset provision so the local charge will remain in effect annually unless council later amends it. Officials emphasized the funds are earmarked for local road maintenance; the mayor noted state and federal highways remain the responsibility of IDOT and federal agencies.
The ordinance passed with all seven members voting aye.
