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*** UPDATED x1 *** Pritzker addresses coming July 1 tax hikes on groceries, motor fuel

Tuesday, Jun 27, 2023 - Posted by Rich Miller

* Background

On July 1, Illinois’ gas tax will undergo its annual increase [roughly three cents per gallon] and the state’s moratorium of [the local 1 percent] grocery tax will expire.

* Gov. Pritzker was asked about this today

* Reporter: On Saturday, folks are gonna see prices go up at the grocery checkout line. Prices will go up at the gas pump for the second time in six months. Critics, when you passed that tax relief plan last year, called it an election-year stunt. The election year is over. Were they right about that?

* Pritzker: Dan, I hope you’ll report - you haven’t yet, so I’m gonna ask you to do it now - report on the fact that the grocery tax doesn’t go to the state of Illinois. It goes to local governments.

What we did last year was a temporary measure because we had very high inflation. Inflation, you may notice, has come down. But we had very high inflation. We wanted to do everything that we could and we provided $1.8 billion of tax relief for families across Illinois. The grocery tax was one of them. But what we did was we replaced the money that local governments were getting from that grocery tax for the year at the state level. We provided the money to replace that tax.

Now I hear often Republicans complaining that the grocery tax is being reimposed. But these are the same folks who don’t have a solution for well, how would you reimburse local governments for the grocery tax that you would like to get rid of? I would like very much to eliminate entirely the grocery tax, but it is a matter of local governments and what they would do if they didn’t have that income as a result of the grocery tax.

Please pardon all transcription errors.

*** UPDATE *** Reporter in question brings receipts…


Heh.

       

14 Comments
  1. - Candy Dogood - Tuesday, Jun 27, 23 @ 2:20 pm:

    Neither of these planned tax levy rates meet the criteria of what I’d describe as a sharp increase in taxes.

    I’m not a fan of taxing groceries as a policy, but did anyone even try to mount an effort to make the exclusion of groceries from sales tax permanent?


  2. - Aaron B - Tuesday, Jun 27, 23 @ 2:46 pm:

    I despise the excuse that says “Prices will go up at the gas pump for the second time in six months.” and how republicans enjoy pointing out that the gas tax doubled in Pritzker’s first term. The gas tax had been the same for 30 years, that was unsustainable to maintain our roads and infrastructure. They like to blame Madigan for everything else so why aren’t they blaming him for not incrementally increasing the gas tax over the course of the last 3 decades?


  3. - City Zen - Tuesday, Jun 27, 23 @ 3:15 pm:

    ==we replaced the money that local governments were getting from that grocery tax for the year at the state level. We provided the money to replace that tax.==

    “We” as in the Feds.

    Tax relief, like money, is fungible. The state could have kept that 1% tax which went to municipalities and instead doubled the standard deduction or decreased the sales tax rate a quarter point or any of the myriad of tax choices the state had at its disposal. Instead they chose a tax where they’re the middle man and now they want to pretend they did us a favor?


  4. - gduya - Tuesday, Jun 27, 23 @ 3:24 pm:

    Would have been averted with a progressive income tax.


  5. - Amalia - Tuesday, Jun 27, 23 @ 3:36 pm:

    Pre what was CeaseFire Tio Hardiman worked for the City of Chicago. How he keeps getting employed is beyond me.


  6. - Rich Miller - Tuesday, Jun 27, 23 @ 3:52 pm:

    ===The state could have kept that 1% tax which went to municipalities===

    60-30-1.

    Woulda, coulda, shoulda.

    You first gotta pass a bill. And this year, the municipals were pushing hard for more money and found a receptive ear in the GA.

    So, spare us the sophomore dorm talk.


  7. - Sue - Tuesday, Jun 27, 23 @ 3:53 pm:

    Illinois needs to quickly impose a user type fee of electric vehicles. The fuel tax is a user tax intended to provide road funds as drivers “use up” the roads. It is totally unfair electric vehicles fail to contribute to the road fund. We could do it by adding a surcharge on electric vehicles each time they use an electric charger. The utility companies could pass on the money to the state as they would be the logical collection point


  8. - We've never had one before - Tuesday, Jun 27, 23 @ 4:30 pm:

    >>>>We could do it by adding a surcharge on electric vehicles each time they use an electric charger. The utility companies could pass on the money to the state as they would be the logical collection point

    Two meters at the house?


  9. - Padraig - Tuesday, Jun 27, 23 @ 4:48 pm:

    “Illinois needs to quickly impose a user type fee of electric vehicles.”

    Electric vehicle owners pay an additional $100 on their license plate renewal. $99 of which goes to the road fund.


  10. - State of DenIL - Tuesday, Jun 27, 23 @ 4:55 pm:

    Worth noting that electric vehicles are usually much heavier than the ICE equivalents.


  11. - Rich Miller - Tuesday, Jun 27, 23 @ 4:57 pm:

    ===are usually much heavier===

    Meh. Until you get to the semi-truck level, there’s no real, provable impact on roadways that I am aware of.


  12. - Sue - Tuesday, Jun 27, 23 @ 5:28 pm:

    We have never had one before- you wouldn’t need another meter. The software associated with the charger mechanism could easily be programmed to tack on the surcharge and have your utility charge the customer and pass on the fee to the state. Similarly public charging stations could charge the customer a surcharge which can be passed on. If electric vehicles hit the numbers being encouraged by the Biden administration- we will have perhaps 50 percent at least of new vehicle sales by 2030 being electric. All states will be forced to find ways to tax drivers or their road fuel tax fees are going to get hammered


  13. - Big Dipper - Tuesday, Jun 27, 23 @ 5:53 pm:

    Electric bills already have a ridiculous amount of taxes, fees, and surcharges, and our conservative friend wants to add more.


  14. - Anyone Remember - Tuesday, Jun 27, 23 @ 6:09 pm:

    The reporter’s tweet - what is the source of his “receipts” ??? It is just text, stripped of context. Time? Place?


Sorry, comments for this post are now closed.


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