Illinois motorists will notice slightly higher prices when they fill up starting on Monday, as the state’s gas tax will go up as part of its yearly increase.
According to the Illinois Department of Revenue, the tax rate on gasoline at pumps in Illinois will increase by just over 3.5%, rising from $0.454 per gallon to an even $0.47.
Those filling up with diesel fuel will also see an increase, with those prices increasing from $0.529 per gallon to $0.545, an increase of just over 3%.
In 2019, the state of Illinois passed a law that would establish yearly increases in fuel taxes after not raising those rates since the early 1990’s. That year, the tax doubled from $0.19 per gallon to $0.38, and has increased multiple times in the years since.
The tax rate increases each year based on inflation and changes in the Consumer Price Index.
After pausing the tax increase in 2022 because of concerns over inflation, the state has now raised the tax rate three times, according to officials.
The state’s fuel tax is used to fund construction projects at the state and local levels. Those taxes are siloed from the rest of the state’s revenues, and can only be used on construction projects under a Constitutional amendment approved by voters in 2016.
Since July 2023, the state has collected more than $2.9 billion in gas tax revenue, according to the Illinois State Comptroller’s Office.
Illinois motorists also have to pay excise taxes on fuel, which is assessed by the federal government, and state sales taxes, which is applied after the state’s fuel tax is included in the price, according to officials.
from NBC Chicago https://ift.tt/SqifMod
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