EAST SAINT LOUIS, Ill. — If you live in Illinois, two weekly errands will be more expensive soon. Here are three things to know about the tax exemptions coming to an end impacting gas and groceries by July.
1. You'll be paying higher taxes on gas and groceries starting July 1.
By July 1, you'll see a tax increase at the grocery store and at the gas pump. The grocery tax is a 1% increase, and the gas tax increase is three cents a gallon.
2. The taxes are not new.
These taxes were already in the works. They were either reinstated last year or they were already part of the proposed budget. The grocery tax was suspended as part of a $46.5 billion state budget plan aimed at giving relief to families struggling with the rising costs of goods and inflation in 2022.
The gas tax is part of the yearly inflation base gas tax which passed in 2019.
3. It will be a subtle change to your wallet at each purchase
A 1% tax increase at the grocery store means you'll spend $2 in taxes for $200 worth of food at checkout. If you go shopping once a week at that rate, it could cost you a little more than $100 a year.
If you go to the pump, gas will cost you three cents a gallon. For most drivers, it averages out to be a $10 difference for the remainder of the year, but keep in mind some families have multiple cars, and we did not factor in costs of business expenses.