with new laws including the return of the state’s 1% tax on sales on groceries, an increase in the gas tax will take effect for the second time this year and the cost of cremation permits doubles and minimum wage increases on small businesses … all regressive taxes on the poor and working class while the state, county and city have surpluses in their budgets … as states and taxpayers continue to feel the strain of inflation and many experts project a national recession in the coming year.
… so if we have surpluses why would the government raise taxes … the answer is simple they need to pay off all the votes that got brandon john into office and buy future votes exactly how the chicago teachers union built its political machine with union dues money and resources now teh city will be the political piggy back of the pseudo-left …
Chicago likely ended 2022 with a surplus of $554 million and is projected to end 2023 with a surplus of $142 million, officials said.
https://news.wttw.com/2023/04/18/chicago-faces-85m-budget-shortfall-2024-says-lightfoot-while-defending-her-financial
Cook County Set to End 2023 With $214.7M Budget Surplus
https://news.wttw.com/2023/06/22/cook-county-set-end-2023-2147m-budget-surplus-officials
Gov. JB Pritzker says tax cuts on the table if state revenues continue to exceed expectations … Forecasting commission last week upped its projections by a combined $1 billion … how to spend higher than expected revenue growth
https://abc7chicago.com/jb-pritzker-illinois-tax-cuts-taxes-budget/12960114/
Cook County’s TIF districts collected record $1.6B in 2021, clerk’s office says
https://abc7chicago.com/cook-county-il-clerk-tax-increment-financing-tif-district/12697977/
ILLINOIS — The end of a grocery tax suspension, the increase of the state’s tax on gas, the doubling of certain fees; there are multiple aspects of life in Illinois set to become more expensive on July 1.
Perhaps the most far-reaching impending change is the return of the state’s 1% tax on sales of groceries. Though one penny for every dollar spent is arguably a low amount, it is a tax which impacts nearly every resident of Illinois.
Illinois Grocery Tax
Last year, Illinois’ 1% grocery tax was suspended as part of a 2022 $46.5 billion state budget plan aimed at providing relief to families struggling with rising costs of goods and inflation. Officials said the extension was predicted to save taxpayers upwards to $400 million through the fiscal year.
The tax was suspended for 12 months on items that included “food for human consumption that is to be consumed off the premises where it is sold.” Alcoholic beverages, soft drinks, candy and food prepared for immediate consumption were not included in the grocery tax suspension.
According to state documents, the final day of the tax holiday is June 30, 2023.
The state’s Motor Fuel Tax Law imposes an annual increase on July 1 to Illinois’ Part A fuel tax. This is a separate tax from the Part B rate determined January 1 every year, and any July 1 local municipal fuel tax increases such as those in DuPage, Kane, Lake, McHenry, and Will Counties.
Illinois Gas Tax
Also under the state’s 2023 fiscal year budget, a mandatory increase in the gas tax that was tied to inflation was delayed by six months last year.
That increase, which took effect on Jan. 1, saw the tax rise to 8.2%, meaning the rate for Illinois motorists climbed by roughly 3.2 cents per gallon earlier this year, bringing the state’s total fuel tax on unleaded gasoline to 42.4 cents per gallon.
But the annual inflation-based increase in the state’s gas tax goes into effect on July 1 each year because of the Rebuild Illinois infrastructure bill, which passed the General Assembly in 2019. Prior to that, the state’s gas tax had been locked at 19 cents per gallon for nearly 20 years.
Under the terms of the state’s 2023 fiscal year budget, the tax increase for fiscal year 2024 will still go into effect, meaning that motorists could see a second fuel tax increase this year.
The yearly increase is tied to the Consumer Price Index from the U.S. Department of Labor which for 2023 is 7.41%. As such, the cost of gasoline will jump by more than three-cents per gallon on July 1 simply due to the Part A fuel tax increase which will go from $0.423 per gallon to $0.454.
The same tax increase also applies to diesel fuel, jumping from $0.498 per gallon to $0.529, liquefied natural gas, liquefied petroleum gas, and compressed natural gas.
Certain fees double for coroners and real estate transactions
House Bill 2332 was signed into law in June and doubles the cost of cremation for county coroners and medical examiners. The current cost is $50 per permit, but on July 1 it will jump to $100.
That’s not the only state-imposed fee doubling in the new fiscal year. House Bill 3878 amended the Rental Housing Support Program Act to increase the state surcharge on all county recorder real-estate documents. Currently, each county recorder is required to collect a $9 fee for any such documents, but as of July 1 that extra fee will be $18.
The Rental Housing Support Program, created by the Illinois legislature in 2005, primarily provides rental assistance to those who are unable to pay their housing costs for one reason or another.
Local sales tax increases
Fifteen local municipalities across Illinois are set to increase their sales tax, four of which are in the Chicago area: Barrington, Naperville, St. Charles, and Winfield.
Barrington is enacting a 1% increase which will result in a 10% sales tax in its Cook County portion and an 8% sales tax in its Lake County portion.
Naperville’s Heinen Business District will see a 0.50% increase up to 8.25%, while its Block 59 Business District will jump 1% to 8.75%.
St. Charles is implementing a 0.50% increase up to a new 8.50% total sales tax.
Winfield’s sales tax will jump 0.25% to a new total of 7.75%.
See the full list of local municipal sales tax increases across Illinois here.
https://tax.illinois.gov/content/dam/soi/en/web/tax/research/publications/bulletins/documents/2023/fy-2023-20.pdf
Minimum wage increases in Chicago and Cook County
Though not the result of a new law, the next scheduled annual minimum wage increase will also take effect on July 1 for the City of Chicago and the rest of Cook County. While not a tax, the increase in labor costs could push prices of goods and services up for local consumers.
The city’s hourly minimum wage will rise $0.40 per hour to $15.80 for businesses with 21 or more employees, and rise $0.50 per hour to $15 for businesses with four to 20 employees. Also set to rise is the base hourly salary for tipped employees, going up $0.24 to $9.48 for businesses with 21 or more employees, and jumping to $9 per hour for those with four to 20.
Meanwhile a similar increase will take place for suburban Cook County with the hourly minimum wage rising $0.35 to $13.70, and $0.60 to $8 per hour for tipped workers.
Are there any sales and use tax notification requirements for retailers?
Beginning July 1, 2023, retailers should remove the statement placed on any cash register tape, receipt, invoice, or sales ticket issued to customers, or posted on a sign that states “From July 1, 2022, through
June 30, 2023, the State of Illinois sales tax on groceries is 0%.”
What is the last period I can file Schedule GT?
For retailers filing on a monthly or quarterly basis, the last reporting period a Schedule GT, Sales and Use Tax
Holiday and Grocery Tax Suspension Schedule can be filed with your Form ST-1, Sales and Use Tax and E911 Surcharge Return is the June 30, 2023 reporting period. Do not file Schedule GT for any reporting period after June 30, 2023.
For annual filers, if you made sales that qualified for the suspension (groceries sold January – June 30, 2023), you will still need to include Schedule GT with your Form ST-1 for the 2023 reporting period.
What if I forgot to file Schedule GT or need to amend a return for a period
included in the grocery tax suspension?
You must complete and attach Schedule GT-X, Amended Sales and Use Tax Holiday and Grocery Tax Suspension Schedule, to your Form ST-1-X, Amended Sales and Use Tax and E911 Surcharge Return, to calculate credit against your Retailers’ Occupation Tax liability for sales made from July 1, 2022, through June 30, 2023, that qualify for the suspension of the Illinois state sales tax.
For more information, see the Retailer Resources webpage
https://tax.illinois.gov/businesses/retailer-resources.html
Other new laws effective July 1
A number of other new laws are set to take effect with the state’s new fiscal year. Below is a non-exhaustive list of the bills and a brief synopsis of each intended purpose.
Bill Number: SB 250
Description: Fiscal Year 2024 appropriations bill.
https://www.ilga.gov/legislation/BillStatus.asp?DocNum=0250&DocTypeId=SB&GAId=17&GA=103&sessionid=112
Bill Number: HB 1273
Description: Makes Constitution Day a commemorative holiday.
https://www.ilga.gov/legislation/fulltext.asp?DocName=&SessionId=112&GA=103&DocTypeId=HB&DocNum=1273&GAID=17&LegID=143383&SpecSess=&Session=
Bill Number: HB 1688
Description: Allows cars, vans, and other first division vehicles to operate as school buses under a Secretary of State permit.
https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1688&GAID=16&DocTypeID=HB&LegId=130365&SessionID=110&GA=102
Bill Number: SB 1963
Description: Amends the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act in numerous ways.
https://www.ilga.gov/legislation/billstatus.asp?DocNum=1963&GAID=17&GA=103&DocTypeID=SB&LegID=146825&SessionID=112&SpecSess=
Bill Number: HB 2380
Description: Amends and expands eligibility for the Illinois Student Assistance Commission’s existing human services professional loan repayment grants.
https://www.ilga.gov/legislation/billstatus.asp?DocNum=2380&GAID=17&GA=103&DocTypeID=HB&LegID=147457&SessionID=112&SpecSess=
Bill Number: SB 3130
Description: Requires DCFS to provide youth in care access to the department’s Search and Reunion services within 30 days prior to the youth in care turning 18 years old.
https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3130&GAID=16&DocTypeID=SB&LegId=137845&SessionID=110&GA=102
Bill Number: SB 3459
Description: Provides that the Adjutant General, the Assistant Adjutant General for Army, or the Assistant Adjutant General for Air, or a representative designated by the Adjutant General may present one State flag of Illinois to the next of kin of the deceased member of the Illinois National Guard or any Illinois resident dies while on State Active Duty or while serving in duty or training statuses pursuant to Title 10 or Title 32 of the United States Code as approved by the member’s service component.
https://www.ilga.gov/legislation/billstatus.asp?DocNum=3459&GAID=16&GA=102&DocTypeID=SB&LegID=138380&SessionID=110
Bill Number: HB 3551
Description: Establishes the Bond Authorization Act of 2023
https://www.ilga.gov/legislation/billstatus.asp?DocNum=3551&GAID=17&GA=103&DocTypeID=HB&LegID=148721&SessionID=112&SpecSess=
Bill Number: HB 3817
Description: Implements the Fiscal Year 2024 Budget.
https://www.ilga.gov/legislation/billstatus.asp?DocNum=3817&GAID=17&GA=103&DocTypeID=HB&LegID=149076&SessionID=112&SpecSess=
Bill Number: HB 4639
Description: Repeals a Section concerning the licensing of manufactured home dealers.
https://www.ilga.gov/legislation/BillStatus.asp?DocNum=4639&GAID=16&DocTypeID=HB&LegId=138614&SessionID=110&GA=102
Bill Number: HB 4825
Description: Allows vehicle registration applicants to self-disclose potential conditions that could impede communications with a peace officer.
https://www.ilga.gov/legislation/BillStatus.asp?GA=102&DocTypeID=HB&DocNum=4825&GAID=16&SessionID=110&LegID=139285
Bill Number: HB 5496
Description: Amends several statutes to uniformly replace the term “accident” in relation to automobiles, motor vehicles, and traffic accidents with the term “crash.”
https://www.ilga.gov/legislation/BillStatus.asp?DocNum=5496&GAID=16&DocTypeID=HB&SessionID=110&GA=102
Sources for Report
Life in Illinois gets more expensive on July 1 with multiple tax increases, new laws by: Chip Brewster Posted: Jun 23, 2023 / 01:22 PM CDT
Updated: Jun 23, 2023 / 01:46 PM CDT https://wgntv.com/news/illinois/life-in-illinois-gets-more-expensive-on-july-1-with-multiple-tax-increases-new-laws/
Illinois grocery, gas bills could soon change as taxes set to soon rise. What to expect Beginning July 1, the suspension of the state’s grocery tax will end and an increase in the gas tax will take effect for the second time this year
By NBC Chicago Staff • Published June 12, 2023 • Updated on June 12, 2023 at 3:13 pm https://www.nbcchicago.com/news/local/illinois-grocery-gas-bills-could-soon-change-as-taxes-set-to-soon-rise-what-to-expect/3159590/
Grocery Tax Suspension Period Concludes June 30, 2023
https://tax.illinois.gov/content/dam/soi/en/web/tax/research/publications/bulletins/documents/2023/fy-2023-22.pdf
Cook County Set to End 2023 With $214.7M Budget Surplus: Officials
Heather Cherone | June 22, 2023 5:21 pm
https://news.wttw.com/2023/06/22/cook-county-set-end-2023-2147m-budget-surplus-officials
Cook County’s TIF districts collected record $1.6B in 2021, clerk’s office says
https://abc7chicago.com/cook-county-il-clerk-tax-increment-financing-tif-district/12697977/
Civic Federation Report Details Financial Challenges Facing Chicago’s New Mayor and City Officials June 14, 2023
https://www.civicfed.org/press-room/ChicagoFinancialChallenges2023
Press Release: Civic Federation Supports Governor Pritzker’s Recommended FY2024 Budget May 11, 2023 The Federation praises the State’s responsible choices but urges caution around long-term agency spending plans, Tier 2 pension expansion proposals and public transit funding shortages
https://www.civicfed.org/FY24ILRecommendedBudget_Release
Mayor Lightfoot And City of Chicago Finance Team Present Mid-Year Budget Forecast City projects $85M budget gap in FY2024 and lowest sustained budget gaps in decades for FY2024-2026 April 18, 2023
https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2023/april/FinanceTeamPresentMidYearBudgetForecast.html
Gov. JB Pritzker says tax cuts on the table if state revenues continue to exceed expectations … Forecasting commission last week upped its projections by a combined $1 billion By Jerry Nowicki, Capitol News Illinois Wednesday, March 15, 2023 https://abc7chicago.com/jb-pritzker-illinois-tax-cuts-taxes-budget/12960114/
During Second Consecutive Year of Significant Gap Reduction, City of Chicago Projects $127.9 Million Shortfall In 2023 Fiscal Year Budget … Budget gap reduced for the second year in a row to $127.9 million as City continues to make powerful strides toward long-term financial stability August 10, 2022
https://www.chicago.gov/city/en/depts/mayor/press_room/press_releases/2022/august/ProjectsShortfallIn2023FiscalYearBudget.html
Chicago Faces $85M Budget Shortfall in 2024, Says Lightfoot While Defending Her Financial Legacy Heather Cherone | April 18, 2023 12:00 pm
https://news.wttw.com/2023/04/18/chicago-faces-85m-budget-shortfall-2024-says-lightfoot-while-defending-her-financial
MID-YEAR BUDGET FORECAST APRIL 2023
https://www.chicago.gov/content/dam/city/depts/obm/supp_info/2024Budget/MidYearBudgetForecast.pdf
Revenues, still higher than initial estimates, would be enough to fund Pritzker’s proposed budget By JERRY NOWICKI Wednesday, May 3, 2023
https://www.capitolnewsillinois.com/NEWS/latest-state-budget-forecast-puts-brakes-on-previously-predicted-surplus
Pritzker: Tax cuts on the table if state revenues continue to exceed expectations … Forecasting commission last week upped its projections by a combined $1 billion By JERRY NOWICKI Wednesday, March 15, 2023
https://www.capitolnewsillinois.com/NEWS/pritzker-tax-cuts-on-the-table-if-state-revenues-continue-to-exceed-expectations
