Gas prices increase in Illinois following Pritzker’s infrastructure plan
July 6, 2019
Illinois residents have noticed an increase in gas prices over the past week after Gov. J.B. Pritzker signed new legislation Friday as part of his $45 billion infrastructure plan. The new changes began July 1.
Motor fuel tax has doubled from 19 cents to 38 cents per gallon, while diesel fuel tax increased significantly, from 5 cents to 45.5 cents per gallon. This tax was last raised in 1990 and is one of the highest spikes in recent state history. It is indexed to inflation, which means the prices will rise further with the rest of the economy over time. Illinois currently faces one of the highest total gas tax burdens in the nation.
The plan also increases vehicle registration fees by $50 and will tax cigarettes more heavily. Pritzker expanded gambling with plans for new casinos in Chicago and surrounding suburbs, as well as eventual legalized sports betting.
Revenue from the increases will be split among state road and bridge construction, local government costs and local transit districts, according to NBC Chicago. Pritzker also said the money would go toward supporting construction workers.
“Taken together, our goal is to make some of the best roads in the country right here in Illinois and some of the best you’ve driven on in decades,” Prizker said during a news conference after the bill signing.
Future funds will be protected under the transportation lockbox amendment, and can only be spent on transportation-related purposes.
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