Illinois' automatic gas tax increase hits again on July 1

Just in time for Independence Day travel, drivers will face Illinois’ latest gasoline tax hike. 

Thanks to Governor Pritzker, Illinois' motor fuel tax has gone from 19 cents per gallon the year before he was elected to 47 cents per gallon today. On July 1st, it goes to 48.3 cents per gallon. Only California (61 cents) and Pennsylvania (57 cents) have a higher rate.

Lawmakers built in the yearly increases in 2019 so they won't look bad raising them year after year, and gives them the excuse that the increase is already on the books.

The state of Illinois uses the Consumer Price Index, a federally calculated measure of how inflation is impacting prices in the U.S. economy, to help determine how much its share of the state’s fuel taxes rises each July 1.

The tax helps to make Illinois the 7th-highest state to buy gas, and the most expensive in the Midwest. The high cost has made it a way of life for many Illiniosans to cross state lines to fill their tanks. 

Buying gas in Wisconsin or Iowa saves about 50 cents a gallon. Kentucky gas costs 57 cents less. Missouri gas is 64 cents cheaper and Indiana 22 cents cheaper heading into the holiday travel period.

According to the taxpayer watchdog group Illinois Policy Institute, the state also double taxes drivers, charging taxes on taxes. Illinois is one of three states that applies the state’s general sales tax on top of the price of gasoline, after federal taxes have been added.