By: Ted Dabrowski and John Klingner
Expect the doubling of Illinois gas taxes to anger Illinoisans this summer. On July 1st, the state’s motor fuel tax increased to 38 cents per gallon from 19 cents. The state says the tax, which has not been increased since 1990, will fund capital improvements throughout the state.
Illinoisans have long been frustrated by higher gas prices in Illinois. In addition to paying the motor fuel tax, Illinoisans also pay a 6.25 percent state sales tax on gasoline purchases. Many residents also pay additional city and county sales taxes. Illinois is only one of seven states to hit consumers with a sales tax at the gas pump.
The Institute on Taxation and Economic Policy just published the list of states hiking gas taxes effective July 1, 2019, and unsurprisingly Illinois tops the list.
This state’s 19 cent jump is nearly double that of Ohio’s and nearly quadruple that of California’s.
Many of the other states on the list grew their taxes because their taxes are linked to the price of gas and/or inflation. Illinois is about to join that list of states. The state’s gas tax will now grow every year with inflation instead of staying flat.
The massive jump this year will skyrocket Illinois to near the top of the national ranking for combined taxes on gas.
Before the hike, Illinois’ gas taxes ranked 21st in the nation. After taking into account 2019 tax hikes across the nation, Illinoisans will pay the 3rd-highest combined taxes on gas.
That’s painful. And remember what that hike is going toward: an absolutely massive, unvetted, politically-motivated, pork-filled capital bill.
Read more about Illinois’ capital bill here: