Starting today, consumers in Illinois will see lower gas prices, food prices, cuts, suspensions, and rebates of their income taxes. The state has balanced the budget for the first time in years, and now is starting to produce a surplus, the State of Illinois is suspending some taxes to help residents offset the shock of inflation.
The Illinois Family Relief Plan went into effect at midnight on July 1. Property taxes, school supplies, and the State’s fuel tax are temporarily placed on hold, or drastically reduced. Consumers can expect a modest decrease at the grocery store with the state’s 1% sales tax on food suspended. For a 10-day period from August 5 through August 14, the 6.25% sales tax is reduced to 1.25% on school supplies, shoes costing under $125.00, and qualified school clothing such as school uniforms.
Where consumers will feel the greatest relief is the pump. The plan suspends the 39 cents per gallon fuel tax until January 1. There is controversy about this provision. In Dupage County and elsewhere, Gas Buddy reports a drop in fuel prices in an amount equal to the tax. In other locations, fuel prices dropped more modestly closer to the planned increase in the gas tax. It is important to note that smaller counties are more susceptible to price gouging due to the market being controlled by a few retailers than in more urban areas where there is more competition.
The plan permanently expands the state’s earned income tax credit from 18% to 20% of the federal limit and expands the number of households that qualify for the credit. The state is also providing a tax rebate on 2021 property up to $300.
Individuals who made less than $200,000 per year, and couples with less than $400,000 last year, will receive $50 dollars and $100 dollars in income tax rebates respectively.
More information is available on the State of Illinois Department of Revenue website, or by calling 1–800–8866