The Illinois Policy Institute warns about Gov. Pritzker’s upcoming tax hikes
PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE
CONTACT: Micky Horstman (312) 607-4977
Higher price tags on gas, groceries coming July 1
The Illinois Policy Institute warns about Gov. Pritzker’s upcoming tax hikes
CHICAGO (June 27, 2023) – As the new fiscal year begins July 1, prices on gas, groceries and more are set to rise, according to the Illinois Policy Institute.
Illinois residents will be hit with a 3.1 cent gas tax hike for the second time this year. Shoppers will also see the 1% tax on groceries resume.
“New taxes on gas and groceries might increase the cost of your Independence Day festivities,” said Bryce Hill, director of fiscal and economic research at the nonpartisan Illinois Policy Institute.
Illinois drivers will face a 45.4 cent gas tax on every gallon, up from just 19 cents in 2019. This comes while Illinois drivers are paying the highest gas prices in the Midwest. Grocery costs are also on the rise in Illinois, up 7.1% from last year and expected to grow by another 4.5-8% by the end of the year.
Starting July 1, Illinois will hike new vehicle title certificates by $10, too, bringing the total to $165 per title.
“Lawmakers passed a temporary tax freeze last year as an election-year gimmick. Election season is over, but record-setting inflation still harms Illinois families,” Hill said. “Illinois and Chicago need to find alternatives to balancing their budgets beyond nickel-and-diming their overburdened residents.
Illinois tax facts:
- Illinois has the fourth-highest motor fuel excise tax in the nation and is one of just seven states to have a motor fuel sales tax.
- According to AAA, the cost of gas in Illinois is roughly 50 cents more expensive than all six of Illinois’ neighbors.
- Gas tax hikes disproportionately hurt lower-income residents, who give up a larger percentage of their paycheck to pay for gas.
- Illinois is one of just 13 states to charge a grocery tax. Of the 13 states, Hawaii, Idaho, Kansas, Oklahoma and Utah offer a credit or rebate to offset costs for low-income households.
- Among the 10 most populous states, Illinois is the only one with a grocery tax.
For interviews or interviews, contact media@illinoispolicy.org or (312) 607-4977.