Dupage Policy Journal

Critics are panning Illinois’ increased taxes on gas and groceries. Both taxes increase as of July 1. 

“Do you remember when Governor Pritzker threatened Illinois gas retailers that if they failed to put a sticker on their pumps touting the suspension of a gas tax they would be sued?” West Chicago resident Russell G. Whitaker Jr. said on Facebook. “Well, after being re-elected and ensconcing his rather large derrière in the Governor’s seat the tax ‘holiday’ disappeared! Poof!” 

He underlined that Illinoisans will soon be even more burdened with daily needs including groceries and fuel. 

“Well, suckers, get ready because it’s coming soon to a gas retailer near you….another tax increase!”

Starting Saturday, July 1, two taxes on essential items in Illinois are set to increase. The state's gas tax will rise by 3.1 cents per gallon, bringing the total tax to 45.4 cents, marking the second increase in the motor fuel tax this year, according to The Center Square. Additionally, the state's 1% tax on groceries, which was temporarily suspended during last year's election cycle, will be reinstated. Pritzker defended the reinstatement, citing the need for local government funding, while critics argue that the tax increases place a burden on residents who are already facing high property taxes. The state's recently approved fiscal year 2024 budget also includes other fee increases.

The increase in the gas tax is the second this year as the state government has previously implemented a gas tax increase on Jan. 1, adding 3.2 cents per gallon of gas, resulting in the state having the second-highest gas tax in the United States after California. The State Motor Fuel Tax in Illinois is currently set at $0.423 per gallon of gasoline and $0.498 per gallon of diesel fuel until June 30, Mahomet Daily reported.

The end of the one-year suspension of the grocery tax, implemented by Pritzker during his election year, is notable given the overwhelming majority of states don’t tax food. Despite discussions on making the tax suspension permanent, the majority of state lawmakers opted against joining the majority of states that do not tax groceries at all. According to Illinois Policy, only 13 states in total tax groceries and Illinois is the only among the ten most populous states to impose a tax on groceries.

In 2022, Pritzker mandated that gas stations post signs noting the gas tax was postponed, which Republicans saw as an election-year ruse. 

"As of July 1, 2022, the State of Illinois has suspended the inflation adjustment to the motor fuel tax through December 31, 2022. The price on this pump should reflect the suspension of the tax increase," the mandatory signage read.