*** UPDATED x1 *** Pritzker’s preliminary draft capital plan relies on about $1.8 billion a year in new or higher taxes
Friday, May 17, 2019
*** UPDATE *** Click here for the full briefing.
* The governor’s preliminary draft of the capital plan pitched to lawmakers today includes numerous proposed tax and fee increases and some brand new taxes. Some of these ideas are more likely than others to pass.
The packet distributed to members today claims the proposal will include a “combination of bonding and consistent, annual pay-as-you-go funding.”
…Adding… Total bonding over six years will be $17.807 billion. Total pay as you go will be $7.035 billion over six years. Total federal money is banked at $10.032 billion. Local/private share is listed as $6.642 billion for a grand total of $41.515 billion over six years.
A proposed motor fuel tax increase of 19 cents per gallon for gas and diesel, double what it is now. The increase is lower than both the Local 150 plan and the Illinois Chamber plan (both were 25 cents). $560 million a year.
The current $101 a year vehicle registration fee would go to $199 for vehicles 3 years old or newer, $169 for vehicles 4-6 years of age, $139 for vehicles aged 7-11 years, and $109 for vehicles 12 years and older. Kind of a progressive tax without using auto values. $490 million a year.
The registration fee for electric vehicles is now $34 per vehicle and would rise to $250 per year. $4 million a year.
The Real Estate Transfer Tax (for non-residential transactions) would rise from 50 cents per $500 in market value to $1. The fee hasn’t been changed since 1989. $34 million a year.
Current liquor gallonage taxes are 23.1 cents on beer and cider, $1.39 on wine, and $8.55 on distilled liquor. The new proposal would increase the rate per gallon by 4.6 cents, 66 cents, and $4.05, respectively. $120 million a year.
Currently, traded-in property provides a sales tax exemption on the purchase of property up to the value of the property traded-in. This proposal would introduce a $10,000 cap per trade-in transaction. $60 million a year.
The video gaming terminal tax is currently 30 percent of net. According to the draft: “The structure for this proposal is to be determined, but a portion of the revenues from the current discussions to restructure this industry can be allocated to the capital budget, on top of operating budget needs.” $90 million a year.
A new state tax on ridesharing of $1 per ride. $214 million a year.
A new 7 percent tax on cable, satellite and streaming services (an almost perennial proposal that has never passed). $150 million a year.
A new parking garage tax of 6 percent tax on daily and hourly garage parking and a 9 percent tax on monthly and annual garage parking. $60 million a year.
Total: $1.782 billion a year.
…Adding… Many of these ideas were not generated by Pritzker or his staff, but came from the working groups, some of which were bipartisan.