New fiscal year means new grocery, gas tax for Illinois residents

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A new state fiscal year begins July 1, and with it, the return of a grocery tax and greater gasoline taxes.

Return of previously suspended grocery tax

The state of Illinois had suspended a 1% grocery store tax last year in order to save residents in the state money while inflation was high, approaching 9%, according to the U.S. Bureau of Labor Statistics, but last month it was 4% when the fiscal year 2024 budget was passed.

“What we did last year was a temporary measure because we had very high inflation,” Gov. J.B. Pritzker said Tuesday.  “Inflation, you may notice, has come down.”

Greater gasoline taxes

Meanwhile, the state’s tax on gasoline, diesel fuel, and compressed natural gas will increase by 3.1 cents. The automatic increase is an annual process that became law in 2019, doubling the motor fuel tax and setting it to increase at the rate of the federal government’s Consumer Price Index each year.  Last year that annual increase set to kick in July 1 was postponed by six months, again to ease the burden on taxpayers. But in January of this year, the 3.1 cent increase took effect, with this second duplicate boost now raising prices again.

As of June 30, the average price of gas for Will County sits at $4.10 and for DuPage County is $4.10 per gallon for regular oil, according to AAA.

The highest average price for the entire state ever recorded is $5.56 per gallon for regular unleaded fuel and that was on June 13, 2022.

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