December 20, 2022 – Illinois drivers will see increased gasoline taxes next month, with another increase six months after that.
Motor fuel prices in Illinois are down nearly 70 cents a gallon since this time last month. However, the state is set to increase the fuel tax January 1 by 3.1 cents, for a total of 42.3 cents per gallon. Another coming increase will occur in the summer on July 1.
The state doubled the per-gallon tax from 19 cents to 38 cents with annual increases every summer tied to inflation. Since then, the state has seen some of the highest fuel prices in the nation due to inflation and other factors.
Josh Sharp of the Illinois Fuel and Retail Association said the scheduled increases will hurt drivers in a state with already high taxes.
“Gas taxes in Illinois are the second highest in the nation. We trail only California for the amount of tax we put on a gallon of fuel,” Sharp said. “We not only have a motor fuel tax, but we also have a sales tax in the state of Illinois.”
In the spring, legislators approved a budget that included various tax rebates and freezes. The grocery tax was suspended for 12 months. The gas tax increase set for July 1, 2022, was delayed to January 1, 2023. Governor Pritzker said the move was an effort to bring tax relief to Illinois families.
Also beginning January 1, gas stations no longer have to display a state-required sign announcing the gas tax increase delay. Gas stations that didn’t display the sign the past five months could have faced a $500 a day fine. However, earlier this year, a spokesperson for the Illinois Department of Revenue said the “goal is not to issue fines, but rather encourage compliance and also ensure that consumers are informed about the tax relief to ensure they are paying no more than they should.”
