New Illinois Taxes and Fees Taking Effect July 1

Illinois' gas tax doubled overnight into Monday, meaning drivers across the state are now paying more at the pump.

The motor fuel tax is doubling from 19 cents per gallon to 38 cents per gallon and the diesel fuel tax is increasing by 5 cents to be 45.5 cents total.

The increase is thanks to one of several bills Gov. J.B. Pritzker signed into law Friday, including a $45 billion capital plan, an expansion of gaming across the state and a revenue package that includes additional tax increases to fund the major infrastructure improvements in the capital plan.

But that's not all. Taxes and fees are increasing in several other areas, effective July 1.

Vehicle registration fees are 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 special fuels tax - on diesel fuel, liquefied natural gas or propane used for motor vehicles - increases from 2.5 cents per gallon to 7.5 cents per gallon.

Parking garages will now also be taxed: 6% on daily and hourly garages, and 9% on monthly and annual parking, effective January 1, 2020. Cigarettes will now be taxed at $2.98 per pack, increasing $1 from the current $1.98 per pack tax. E-cigarettes will also be taxed at a 15% rate wholesale, and the tax on video gaming machines increases from 30% to 33% on July 1, then to 34% on July 1, 2020.

Also taking effect on July 1 is a ban on sales of tobacco products to Illinois residents under the age of 21, up from 18. The state also has new, stricter distracted driving laws on the books starting July 1, with anyone caught texting and driving to receive a moving violation that goes on their driving record, not just a warning ticket.

Violators will face fines: $75 for a first offense, $100 for the second, $125 for the third and $150 for future offenses, and those convicted of three moving violations in a year could have their license suspended.

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