Hidden Gas Tax Hike Will Cost You More At The Pump

SPRINGFIELD, IL — A sales tax hike hidden inside the 538-page state budget bill will cost customers 4 to 5 cents more per gallon of gasoline. A state spending plan was passed after the Illinois General Assembly overrode Gov. Bruce Rauner's veto last week. It includes a measure that is expected to raise $95 million in sales tax revenue for the state — but unlike a gas tax, it doesn't have to go towards road repairs and will instead go into a general fund, according to ABC Chicago.

In addition to the higher gas prices, starting July 1, income taxes went up in Illinois thanks to the new budget. The tax rate went up from 3.75 to 4.95 percent.

The gas price increase comes thanks to the elimination of a 20-percent sales tax credit on unleaded gas containing ethanol given to wholesalers, according to ABC. That cost will now be passed on to consumers.

Gas prices averaged 2.32 per gallon in Illinois as of Thursday afternoon, 7 cents higher than the national average, according to Gas Buddy.

• Tax Hike, Budget Approved: Illinois House Overrides Rauner Vetoes

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