You’d better fill up your gas tank before Monday, when the state’s gas tax will double and vehicle registration fees will increase.
Gov. J.B. Pritzker signed legislation on Friday that would double the state’s gas tax to pay for a $45 billion infrastructure plan along with another bill to hike the tax on a pack of cigarettes by $1.
Monday marks the beginning of the fiscal year. Senate Bill 1939 doubles the state’s motor fuel tax and increases vehicle registration and other driving fees, and Senate Bill 690, which expands gambling but also increases the tax on a pack of cigarettes by $1 dollar to nearly $3 a pack.
The tax hikes will help pay for a six-year, $45 billion infrastructure plan.
The state’s gas tax is set to double from 19 cents a gallon to 38 cents a gallon Monday after Pritzker signed the bill. The state’s motor fuel tax will also be indexed to increase every year thereafter with inflation. In addition, the state’s license plate registration fee will increase by $50, and diesel taxes go from 2.5 cents a gallon to 7.5 cents a gallon. Truck drivers will see additional fee increases.
The $1 per pack additional tax for cigarettes was part of the gambling expansion bill, which would also usher in legalized sports betting, add six more casinos and nearly double the number of allowed video gambling machines. Taxes on video gambling machines will also increase.
