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ILLINOIS’
DOUBLED GAS TAX GROWS A LITTLE MORE JULY 1
Illinois Policy Institute/
Noah Shaar
When Illinois state lawmakers and Gov. J.B.
Pritzker doubled the state gasoline tax in 2019, they built in automatic
annual increases to avoid voting for future hikes. The tax increases
another half cent on July 1. |
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 Doubling the state gas tax was not enough in 2019, so every
July 1 state leaders ensured motorists would pay a little more.
This July 1, the state motor fuel tax will move to 39.2 cents per gallon, a
half-penny increase, after it doubled to 38 centsfrom 19 cents in 2019 and saw
an automatic increase to 38.7 cents in 2020. At 39.2 cents, Illinois’s gas tax
has increased 206% in three years.
A driver in Chicago will pay $55.55 for a 15-gallon fill-up July 1 at $3.70 per
gallon. That includes $15.33 in taxes – nearly 40% of the retail cost of the
gas.
In 2020, Illinois was No. 3 in the nation for highest gas
taxes. Only California and Pennsylvania were higher.
Each gallon of gas includes the 39.2-cent state gas tax as well as a little more
than 18 cents for the federal motor fuel tax. Cook County adds 6 cents per
gallon and Chicago adds 8 cents. Everyone is charged just more than a penny for
the underground fuel storage tank clean-up fee.
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State, county and municipal sales taxes are then
added atop the fees, making Illinois one of the few states that
taxes its taxes on gas. Tally it all up, and a Chicago driver pays
just more than $1 a gallon in taxes.
The July 1 gas tax boost will mean the average driver in Illinois
will be paying $105.67 more per year than before the gas tax
doubled.
Illinois’ high fuel taxes are most obvious when
looking at gas prices in neighboring states. Illinois averaged 56
cents per gallon more than neighboring Missouri on June 23.
Illinois’ July 1 gas tax hike comes at the same time crude oil hits
a three-year high of $70 per barrel, and as Gov. J.B. Pritzker is
spending $6 million to convince Illinoisans and tourists from other
states to take a trip in Illinois. His “Time for Me to Drive”
campaign is an attempt to boost the tourism industry that was
battered by his COVID-19 lockdowns.
Pritzker just better hope savvy drivers don’t choose to gas up in a
neighboring state before their Illinois road trip. |
