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Automatic increase in Illinois gas tax effective from July 1st

newsfinale.com 5 days ago

SPRINGFIELD, Ill. (WTVO) — Illinois residents, who pay the second highest gas tax in the country, will see an increase at the pump starting July 1st.

That’s when the automatic annual Motor Fuel Tax increases to account for inflation.

Currently, the tax stands at 45 cents a gallon. On July 1st, 2024, it will increase to 47 cents a gallon.

Illinois is behind only California, which charges residents 60 cents per gallon in gas taxes.

Before 2019, the state had a 19 cents per gallon gas tax. It was doubled that year to 38 cents to help fund a $45 billion infrastructure bill. At the same time, lawmakers set the tax to increase each year to adjust for inflation, sparing a public vote on a tax hike.

A bill that would suspend the automatic Illinois Motor Fuel Tax for two years was proposed in May to help residents suffering from high inflation. House Bill 5252 was referred to the Rules Committee, awaiting further action.

In July 2022, the state put a freeze on the gas tax for six months as part of a package of tax relief legislation as the economy recovered from government-mandated COVID-19 shutdowns.

Electric vehicle (EV) owners, who are exempt from the gasoline fuel tax are charged a flat $100 a year, on top of their annual registration fee, to make up for lost tax revenue.

On July 1st, several new laws will take effect in Illinois, including the availability of driver’s licenses to undocumented migrants, a change in the child labor law to protect children from social media influencer parents, protections for independent contractors, and a change on how school assessment tests are administered.

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