Gas taxes are on the rise
However, Illinois is one of the states that increased dramatically. The motor fuel tax (such as gasoline, gasohol, and compressed natural gas) doubled from 19 cents per gallon to a whopping 38 cents per gallon.
The diesel fuel tax (such as diesel fuel, liquefied natural gas, and liquefied petroleum gas) increased by 5 cents now making it 45.5 cents.
What’s the reason for the tax hike?
Governer J.B. Pritzer wants to prioritize the rebuilding and repairing roads, bridges, highways, and other infrastructure. Nonetheless, this tax plan relies heavily on Illinoisans to paying extra when they’re at the pump.
To read more about this on a publication from the Illinois Department of Revenue, click here.
Here’s what you’re paying more for
Other than gasoline, you’re subject to more taxes on other necessary items due to inflation. When you’re at the DMV, servicing your vehicle, or want to know how your tax situation changes, look out for increased fees/taxes on the following:
- Vehicle registration fees (Larger vehicles such as trailers and buses increase to $100 and electronic vehicles to $248)
- License plate stickers
- Parking garages
- Electronic cigarettes
- Beer, wine, and liquor
- Ride-sharing fees
- Video game machines
- Online marketplaces
- Casino fees
After the tax hike
Many residents are now taking trips across state lines to fill up their gas tank. In Indiana, the gas tax is less than Illinois; standing at 29 cents per gallon. When tax time rolls around, you can still deduct any sales tax you paid as long as you’re itemizing your deductions.
Overall, be sure to check your paycheck and W-4 allowances. With this tax increase already passed and in place, you might want to keep an eye on your paycheck and how your taxes differ. You may also want to make adjustments to your withholding.
Give yourself a break
With expenses increasing, keep track of them. Another way to get on track is saving. File your current and past taxes. Maybe you’re in store for a refund one year. You can still claim your 2016 and 2017 refund!