Gas tax hike takes effect Monday

You might want to get in line at your favorite gas station Sunday, to save the extra 19 cents per gallon gas tax that goes into effect on Monday, July 1.
The motor fuel, or “gas” tax will double, from the current 19 cents per gallon to 38 cents, and the tax on diesel fuel will jump from 21.4 cents to 45.5 cents per gallon. It’s been almost 20 years since the state increased the motor fuel tax.
The motor fuel tax is also tied to inflation, and will rise in the future without lawmaker approval. Beginning next year, the Illinois Department of Revenue will use the consumer price index to calculate the new tax in March, and it will become effective in July. If it were in place today, the CPI of 1.8 percent would add another seven-tenths of a cent to the 38-cent tax.
Twenty percent of the new dollars will be used for mass transit and 80 percent is slated to go to road and bridge maintenance — 60 percent for state roads and 40 percent for local roads. Currently, 54.4 percent of motor fuel tax dollars are distributed to local governments.
In addition, the state sales tax on motor fuel, currently at 6.25 percent, will be diverted from the general fund to the road fund within three years. By 2026 the road fund will be receiving 5 percent of the sales tax, with the remainder going to local governments.
The legislation also gave Will and Lake counties the ability, by resolution, to levy their own gas tax for infrastructure improvements — Cook and the collar counties have been able to do that for over 25 years. The minimum tax the county could enact is 4 cents; the maximum is 8 cents.
The gas tax legislation also included a $50 increase in vehicle registration fees for most vehicles. One dollar will go to the secretary of state’s office, and $49 will be channeled into the road fund. Registration fees for electric vehicles will increase from their current $25 every two years to $148, and those owners will pay a $100 fee in lieu of motor fuel taxes they don’t pay.
The state also raised the tax on a pack of cigarettes $1.