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Home Illinois News

Aside graduated tax proposal, Illinois Dems consider at least 10 fee and tax hikes

Illinois Review by Illinois Review
May 22, 2019
in Illinois News
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SPRINGFIELD – Maybe you, like everyone else, are focused on the vote expected soon on the state constitutional amendment to remove Illinois' flat income tax rate.

But while the focus for many is elsewhere, there's a whole list of new and hiked taxes looming in the Illinois General Assembly, State Rep. Allen Skillicorn and other GOP lawmakers said Wednesday at the Capitol.

Skillicorn (R-Crystal Lake), joined by House colleagues Darren Bailey and Chris Miller, reviewed the anticipated new tax and fee list Gov Pritzker and the Democrats are drooling all over:

  *   Gas tax: 231% increase
  *   Passenger car/truck registration: $101 to $199
  *   Electric car registration: $17.50 to $250
  *   Tobacco tax: 1% increase
  *   Ridesharing tax: $1 per ride
  *   Cable, satellite and streaming tax: 7%
  *   Beer tax: 23.1 cents to 27.7 cents
  *   Wine tax: $1.39 to $2.05
  *   Liquor tax: $8.55 to 12.60
  *   Parking tax: 6% daily, 9% monthly
 
“Illinois managed to bring in $1.5 billion more in tax revenue and the increased revenue is expected to continue in the next fiscal year thanks to the economic boost of President Trump’s tax cuts, but we are still not even growing at the same rate as the rest of country,” said Skillicorn. “The windfall benefits of the national economy won’t continue forever and Moody’s just reported we cannot withstand a recession.
 
Despite the facts, Gov. Pritzker and Springfield Democrats are ready to hike taxes and fees that will surely drive more people and investment out of the state, Skillicorn said. He then pointed to the Rivian electric car manufacturer as a perfect example of a company that wants to invest in Illinois, but may choose to stifle plans for a $400 million investment if such oppressive fees from Springfield are implemented.
 
Rivian, an electric car manufacturer, purchased the former Mitsubishi plant in Normal in 2017 and began a $400 million investment plan that will ultimately create 1,000 jobs. One of the driving factors for their expansion in Illinois was the favorable climate toward electric vehicles and the prospects of major EV growth in the state. However, proposals that would drastically increase the fees on electric vehicles and other transportation tax and fee increases could dramatically dampen their investment and job creation plans.
 
Skillicorn also pointed to data from the Federal Highway Administration to show that Illinois does not need a broad range of new regressive taxes to meet infrastructure needs.
 
According to the FHA's data, Illinois’ roads and bridges are in twice as good condition today as they were in the 1990s. Only 9% of Illinois bridges faced structural deficiencies in 2017, compared to 18% in 1992. As "structurally deficient," they are not at risk of collapse or a safety hazard, but the maintenance costs are higher than necessary. A problem, which like other state issues, can be more readily dealt with through better management and project prioritization on the state level, he said.

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