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Dupage Policy Journal

Monday, December 23, 2024

DuPage, Kane and McHenry counties now have the ability to double local gas tax

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Will DuPage, Kane and McHenry counties opt to double their 4-cent-per-gallon county gas tax? Gov. J.B. Pritzker's newly signed $45 billion capital plan gives them that option. 

On July 1, the state's gasoline tax doubled, hitting 38 cents per gallon, up from 19 cents. This means the average Illinois driver can expect to pay $100 more per year for gas in 2020, according to Illinois Policy.

Under the new capital plan, Chicago and Illinois counties now have the ability to add local gas tax hikes on top of the 38 cent per gallon state tax. Drivers in DuPage, Kane and McHenry counties could see the local gas tax portion rise from 4 cents per gallon to 8 cents. 

Pritzker says the gas tax hike is needed to pay for required infrastructure spending as well as to provide revenue for the state's fiscal year 2020 budget. Twenty taxes and fees are set to rise. Vehicle registration fees have gone up from $98 to $148. The cost of license plate stickers also will go up in 2020. Taxes and fees are also going up on tobacco, e-cigarettes, video games, parking and real estate transfers.

The gas tax hikes have pushed Illinois from the state ranked 10th for its high gas tax burden to the state ranked third in the nation. If Illinois localities exercise their options to hike their local shares of gas tax revenues, Illinois will rise to second in the nation or even number one. 

Expect Illinois gas taxes to keep rising, Illinois Policy says. The new capital plan has tied the gas tax to inflation. Illinois Policy states that if inflation predictions hold up, Illinois gas taxes will rise by almost a penny a gallon per year until 2025.

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