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Illinoisans face increased gas, cigarette and vehicle title taxes on July 1

It’s all part of $2.4 billion in new taxes and fee hikes to help ‘Rebuild Illinois.’

Gov. J.B. Pritzker signs Rebuild Illinois plan into law June 28, 2019.
Gov. J.B. Pritzker’s Rebuild Illinois plan has been signed into law June 28, 2019. Now the taxes and fees to pay for it go into effect July 1.
Ashlee Rezin/Sun-Times

Now that Gov. J.B. Pritzker has signed a $45 billion capital bill into law, Illinoisans will see new roads, bridges and schools spring up statewide.

But they’ll also see a slew of new taxes to help pay for all of those improvements.

The “Rebuild Illinois” plan uses the new taxes and fee hikes, as well as revenue from new casinos and other forms of gambling, to bankroll what Pritzker is calling “the most comprehensive reconstruction effort in this state’s history.”

Here’s a look at what the plan will fund — and the $2.4 billion in new taxes and fee hikes residents will face starting July 1.

Funding for $45 billion

Here’s a breakdown of everything funded in Rebuild Illinois:

  • $33.2 billion for transportation projects;
  • $3.5 billion for education projects;
  • $4.3 billion for new government buildings;
  • $1.2 billion for environment/conservation projects;
  • $420 million for broadband deployment;
  • $465 million for health care and human services; and
  • $1.9 billion in economic and community development initiatives.

Funding for all these projects will come from a mix of taxes, gambling revenue — including a planned Chicago casino — and federal tax dollars.

Here’s a breakdown of new taxes and fee hikes that will take effect Monday.

Gas tax increases

Currently, motorists pay a 19-cent-per-gallon gas tax. That tax will double to a 38 cents per gallon, generating $560 million a year for state government and $650 million annually for local governments. The gas tax will increase each year in line with the consumer price index.

Cigarettes and e-cigarettes

Whether you smoke traditional cigarettes or vape, you’ll pay more. Cigarette taxes will go up by $1, to $2.98 per pack, bringing in $156 million a year for the state.

Additionally, e-cigarettes, which now have no added tax on them except for sales tax, will now have a 15% tax on the wholesale price. That tax is expected to add another $10 million a year in revenue for the state.

Motor vehicle title fees

Motor vehicle title fees are expected to generate $146 million a year for state government.

Motor Vehicle Fee Increases

Title Type Current Fee New Fee
Title Type Current Fee New Fee
Certificate of Title $95 $150
Certificate of title for motor home, mini motor home, van camper $95 $250
Duplicate/Corrected Title $95 $50
Salvage Title $4 $20
Junk Title $0 $10
Source: Illinois Secretary of State Jesse White

Sales tax exemptions

Also, starting Jan. 1, Rebuild Illinois will end a sales-tax exemption on trade-in vehicles valued at $10,000 or more. This is expected to bring in $45 million a year in additional revenue for the state.