|On June 28, Gov. J.B. Pritzker signed into law a $45 billion infrastructure plan that will bring Illinois drivers a record gas tax hike and higher vehicle registration costs.
Those tax and fee increases will come in addition to tax hikes on cigarettes, e-cigarettes, parking and real-estate transfers, on top of new revenue from a massive gambling expansion that includes new casinos and legalized sport betting – all of which the Illinois General Assembly introduced and passed in a single day.
The gas tax hike is the most painful increase to come, doubling to 38 cents from 19 cents per gallon.
This will bump Illinois’ total gas tax burden to the third-highest in the nation, and possibly higher if local governments exercise their increased taxing authority under the plan. An Illinois Policy Institute analysis found the typical Illinois driver will pay at least $100 more on gasoline each year under a doubled gas tax.
Illinois is one of just seven states where drivers pay layers of both general sales taxes and special excise taxes on gasoline at the state and local levels. Those multiple layers mean drivers filling up in Chicago, for example, will pay 96 cents in taxes and fees on a $2.46 gallon of gasoline – an effective tax burden of 39%.
The infrastructure plan also hikes Illinois’ vehicle registration fees to among the highest in the nation. Illinois drivers of standard vehicles weighing 8,000 pounds or less will see registration fees jump to $148 from $98.
The gas tax hike kicks in July 1, and motorists will pay more for license plate stickers starting in 2020.