A proposal Senate bill in Springfield, Ill. would make residents’ gas tax the second-highest in the nation, according to Illinois Policy.
An amendment added to Senate Bill 103 would increase the motor fuel tax set at the state level to 38 cents from 19 cents per gallon. The bill would allocate $34 from the proceeds of each new tax and fee to the Transit Capital Projects Fund, designated for infrastructure and transportation purposes.
The new gas tax would begin July 2019 and increase each year based on inflation but cap at 1 cent per year.Registration renewal for electric vehicles would increase to $148 from $18 a year under SB 103, an increase of more than 720%, according to Illinois Policy. And the annual registration sticker fees for new license plates would increase to $148 from $98.
These are is in addition to several other tax and fee increases, including doubling driver’s license fees to $60 from $30, a $60 increase on vehicle titles and a $100 “weight tax” increase across all truck classes.
Illinois sales taxes are first applied on the base cost of gas, plus the federal tax and environmental fees. Then state and local excise taxes are layered on after the sales taxes are applied.
Illinois is one of seven states with a sales tax on gas. Despite not having increased its gas tax since 1990, Illinois’ gas tax remains 10th-highest in the nation, according to the Tax Foundation.
According to Illinois Policy, high taxes are the top reason Illinoisans cite for wanting to leave the state.
