Surging gasoline prices mean Illinois is getting a boost in sales taxes from fuel, but that’s because drivers are paying the extra $200 a year. Most states don’t charge sales tax on gasoline, but Illinois adds it atop other taxes – taxing the taxes.
July 1 marks the start of the suspended state grocery tax and delay in the automatic gas tax hike. Both industries are required by law to display signs reminding customers of the suspensions, but only gas stations face $500-a-day fines if they fail to comply.
Drivers are now paying $35 more to fill-up on regular gasoline and $65 more for diesel than they were a year ago. Gas taxes eat more than one-fifth of every tank.
Independence Day travel will return to pre-pandemic levels this weekend, reminding Illinoisans they pay the most for gas in the Midwest thanks to high taxes.
President Biden will call on Congress to suspend the federal gasoline and diesel tax for three months. Instead of suspending it, Gov J.B. Pritzker delayed the next motor fuel tax hike until after the election, hitting Illinois drivers with two hikes in 2023.
The Illinois Fuel & Retail Association has agreed to post signage notifying drivers of the delayed gas tax hike, and an explanation of why gas in Illinois is so expensive.
Illinois’ record-high fuel prices mean consumers pay more for everyday items. Pritzker’s 2019 doubling of gas, diesel, and natural gas taxes are partly to blame.