Beginning on Monday, drivers in Illinois will pay a little higher gas tax as part of the state’s annual hike in prices.
The Illinois Department of Revenue reports that the state’s gas pump tax rate will rise by little more than 3.5%, from $0.454 to an even $0.47 a gallon.
The cost of diesel gasoline will also go up for those who fill up, going from $0.529 to $0.545, an increase of slightly more than 3%.
Following a period without fuel tax hikes since the early 1990s, the state of Illinois approved a bill in 2019 establishing annual increases. Since then, the tax has raised several times. In that year, it doubled from $0.19 to $0.38 per gallon.
Inflation and variations in the Consumer Price Index determine the annual increase in the tax rate.
Read Also: Chicago’s Minimum Wage to Rise from Monday: What Workers Should Expect
Concerns about inflation forced the state to halt the tax increase in 2022, but according to officials, the tax rate has now increased three times.
State and local building projects are financed by the gasoline tax imposed by the state. A 2016 constitutional change that limits their usage to building projects separates such levies from the state’s general revenue stream.
The Illinois State Comptroller’s Office claims that since July 2023, the state has received more than $2.9 billion in gas tax revenue.
According to authorities, drivers in Illinois must additionally pay state sales taxes, which are levied after the state fuel tax is factored into the cost, and federal excise taxes on gasoline.
