IL tax hikes could kill small businesses, expert warns
IL tax hikes could kill small businesses, expert warns
A car leaves a Shell station after getting gas in Sacramento on May 17
03 July, 2019, 18:15
The state doubled its gas tax to 38 cents per gallon, up from 19 cents per gallon - which had been the rate since 1990.
In California, where average gas prices were already at the highest level nationwide, the state gas taxes rose 5.6 cents a gallon, about a 10% increase. The City of Harrison will receive an additional $246,891 in state fiscal year 2020 and $249,014 in fiscal 2021.
The gas tax will be raised for the first time since 1990.
Proceeds from the gas tax hike are meant to fund local and state road infrastructure improvement projects.
Critics of the new taxes on gas and cigarettes have said that besides consumers, they are anxious it could further hurt the convenience store business. There's also a federal excise tax of 18.4 cents per gallon.
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But the widespread hikes are notable, said Kloza: "I don't ever recall these many states raising gas taxes on the same day".
Illinois' gas tax will increase annually based on the consumer price index, which according to Decatur Herald & Review is typically around 2 percent. "There are so many things that go into it, and gas prices had already been falling". "We're going to see that start to change pretty quickly".
Those traveling in the Chicago area could save 29 cents per gallon by purchasing gas in nearby Gary, Ind. President Donald Trump has suggested he might be able to support an increase in the federal gas tax to pay for infrastructure fix, but Congress has not yet moved to do so. They may have to swallow increases that come at times of low gas demand, such as New Year's Day.
California drivers paid an average of $3.75 per gallon in June which is higher than the national average of $2.71 calculated by AAA.
"It's going to hurt financially, but personally I don't mind it because we need the roads the schools need money", says IL resident Rebecca Seendsen.
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