Illinois gas tax, vehicle registration fees and parking tax among those to be increased under new bills

BY DANI TIETZ
dani@mahometnews.com

Pending approval by Gov. J.B. Pritzker, Illinoisans could see several tax increases, which will pay for a $45 billion infrastructure project known as “Rebuild Illinois.”

The “Rebuild Illinois” capital bill, which has passed in the Illinois House and Senate, will rebuild roads, bridges, public schools and university buildings throughout the state.

Funding the project are increases in the motor fuel tax, license plate fees, cigarette and e-cig taxes, parking garage taxes and the enforcement of the online sales tax. The legalization of sports betting and a gambling expansion, which includes plans for casinos in the Chicago and Danville area, will also help pay for the project.

Gas Tax: The motor fuel tax — currently at 19-cents-per-gallon — would double to 38-cents per gallon on July 1.  Diesel and propane fuel would be taxed at 7.5-cents-per-gallon. The measure also allows for the motor fuel tax to increase with inflation without lawmaker approval.

The bill also allows counties with more than 3,000,000 inhabitants to impose an additional 3-cent tax per gallon.

Cigarettes and E-Cigs: The cigarette tax would increase $1 to $2.98 per pack, beginning July 1 and e-cigarettes would be taxed at 15-percent of the wholesale price.

Vehicle Registration Fees: Beginning in 2020, license plate fees would increase $50 annually. An owner of a car under 8,000 lbs. will pay $148 per year for vehicle registration.

Owners of electric vehicles would see a steep increase in vehicle registration charges from $17.50 per year to approximately $148 annually plus a $100 fee to account for the motor tax fuel money lost by using electricity.

Parking: Taxes on parking would go up beginning Jan. 1, 2020. Those parking in a garage or parking lot with fees would see a six-percent increase to hourly or daily charges whereas monthly or annual taxes would see an additional nine-percent tax.

Online taxes: Online marketplaces would be required to collect and remit the 6.25 percent online sales tax from Illinois sellers who use their platform beginning in 2020. The bill would also require online retailers, which do not have storefronts or distribution centers in Illinois, to charge a local tax, where applicable.