SPRINGFIELD, Ill. (WTVO) — Beginning Friday, July 1st, Illinois will waive tax on groceries and gas.
The temporary initiative, which will last one year, is designed to ease the effects of inflation on residents.
The budget plan going into effect on Friday will:
– Suspend for one year the 1% sales tax on groceries. The money collected is distributed to local municipalities, but the state would replace that funding.
– Freeze the motor fuel tax on gasoline for a year at 39.2 cents per gallon. To fund Pritzker’s $45 billion statewide construction plan in 2019, the tax was doubled to 38 cents and indexed to inflation annually. Without a freeze, it would increase 6.9% to 41.4 cents July 1. The state will waive the motor fuel tax increase which was due to increase on July 1st.
– Provide a property tax rebate up to $300. Every property owner can get an income tax credit of up to 5% of property taxes paid. For single filers earning less than $250,000, the state would double that 5% credit in the form of a rebate. This would cost the state an estimated $475 million.
The Associated Press contributed to this report.