Gas, hotels, video rentals – hidden taxes you might not realize you’re paying

When it comes to taxes, politicians like to be sneaky.

Scott Reeder
Illinois News Network

When it comes to taxes, politicians like to be sneaky.

Sure, we all are aware of the income taxes that we file every April 15.

And it’s probably not just me who flinches when the property tax bill arrives every year.

But at least we know when we write out those checks to the Illinois Department of Revenue or the county tax collector that we are being taxed.

And if you are like me, you study those tax bills closely.

You look to see if you are paying more than the year before and if the rate has changed.

Politicians know this. So they try to sneak taxes into places where you won’t look.

For example, if you buy gasoline in Chicago you can expect to pay taxes amounting to about 90 cents for each gallon you pump into your tank, according to the Illinois Petroleum Marketers Association.

The rates are less in most downstate communities – but not by much.

Illinois law prohibits service stations from advertising their prices without taxes included.

It would appear politicians don’t want you to associate high prices at the pump with taxes going to federal, state and local governments.

They would just assume you blame Shell, Exxon and BP for high prices – but not government.

But the pump isn’t the only place where our elected officials pack in the hidden taxes.

If you check into a hotel in Rockford you can expect to pay a 12 percent lodging tax. The General Assembly is considering allowing Winnebago County to tack on another two percentage points to that tax to pay for better sports facilities.

That’s a pretty steep fee, just for the privilege of sleeping in Rockford.

Politicians in various cities like this tax because not only is it tucked away on hotel bills but it also is usually paid by people who don’t vote in the community where they pay the tax.

We may be 237 years removed from July 4, 1776, but taxation without representation is still an appealing concept – for many in power.

Many elected officials are hoping Hilton, Sheridan and Ramada will bear the blame for the bigger hotel bill – not them.

Utility bills, phone bills and insurance bills are all packed full of hidden taxes, too.

Why? Because politicians think you’re too dumb to catch on to that fact that government is getting a cut.

Taxes should be three things: broad, low and transparent.

These hidden taxes are none of those.

The secret political appeal of hidden taxes first came to my attention back in the early 1990s when I was a young reporter covering Moline City Hall.

The aldermen were looking for a place to generate revenue.

They chose a 5 percent tax on all video rentals. Why?  Because they didn’t think anybody would notice.

It’s time to hit the erase button on that – and every other hidden tax.