CHICAGO (WBBM NEWSRADIO) – Starting July 1, Illinois residents will pay more in taxes to generate money for "Rebuild Illinois", the state's first large-scale infrastructure program in 10 years.
According to Governor Pritzker, the $45 billion capital plan is expected to repair roads and bridges across Illinois, and create more than 500,000 jobs.
Rebuild Illinois will be funded by doubling of gasoline tax, increasing vehicle registration fees, higher taxes on cigarettes and electronic cigarettes, a new state parking tax, and revenue from expanded gambling.
For the first time since 1990, Illinois is raising its motor fuel tax, taking the rate from 19 cents to 38 cents per gallon. According to Governor Pritzker, the gas tax will bring in an estimated $590 million a year for the state, $400 million a year for local governments, and $250 million a year for transit agencies.
The gas tax is one of several bills Gov. Pritzker signed into law Friday, including raising taxes on cigarettes by $1 per pack and introducing a 15 percent tax on e-cigarettes and vaping products. Also beginning July 1, the age for purchasing tobacco products in Illinois will be 21.
Vehicle registration fees are also increasing from $101 to $151 per vehicle beginning with 2021 registrations. Electric car registration fees jump from $34 per vehicle every other year to $251 annually. Truck registration fees increase by $50 for vehicles 8,000 pounds and under, and by $100 for vehicles weighing more than that.
The increases in vehicle registration fees will generate an estimated $529 million a year in new state revenue, the governor's office said.
There will also be a new tax on parking garages - 6 percent on daily and hourly garage parking and 9 percent on monthly and annual parking - effective January 1, 2020.
