On January 1st, a six-month pause on a scheduled gas tax increase in Illinois came to an end, but multiple pieces of legislation introduced in the General Assembly could counter the hike. The increase, originally slated for July 1st of last year, would have raised the tax by 2.2 cents per gallon, bringing it to 41.4 cents per gallon. However, Governor JB Pritzker paused the increase until the new year as part of a package that included a yearlong suspension of the 1% grocery tax.
The gas tax increase is scheduled annually for July and is tied to annual inflation calculated by the Department of Labor. The Consumer Price Index for 2022 was 8.2%, leading to an increase of approximately 3.1 cents per gallon and a total of 42.4 cents per gallon. This marks the second increase this year. Illinois currently has the second highest gas tax in the country, with only California surpassing it. According to AAA, the average price per gallon in Illinois was $3.27 on Friday, ten cents more than the national average.
Photo of a young man agonizing over how much it costs to fill his gas tank.
The gas tax hike is a result of the passage of the Rebuild Illinois infrastructure plan in 2019. The plan increased the tax from 19 cents per gallon to 38 cents in order to fund a $45 billion construction program, which is also financed by vehicle registration fees, title fees, and sales tax on motor fuel.
According to the Illinois Policy Institute, the Rebuild Illinois plan is expected to…
