Illinois grocery tax break ends Saturday as gas tax goes up

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Illinois grocery tax break ends Saturday as gas tax goes up
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Illinois consumers on July 1 face a one-two punch as a one-year suspension of the state's grocery tax ends, and the gas tax goes up for the second time this year.

Roberto Irizarry, co-owner of a BP station in the 5100 block of North Broadway Avenue, works on June 29, 2023. “We try to stay competitive with everybody in the neighborhood,” Irizarry said. “Even though they raise up the prices, we try to go down a little bit. It always balances itself out.”

At the end of May, inflation in the U.S. was at about 4%, compared with roughly 8.6% at the end of May 2022.Pritzker last year justified the tax relief by saying he and the Democratic-controlled state legislature “balanced the budget, eliminated the bill backlog and state government is now running a surplus.”Income from the 1% tax on groceries that was suspended last July 1 and will be reinstated on Saturday goes exclusively to municipal governments.

The average price in Illinois for regular gasoline a year ago was about $5.40, but had dropped to just under $4 as of Tuesday. “I think, unfortunately, that taxpayers across the state receiving this double-whack, if you will, on July 1, is nothing more than proof that Democrats decided to implement these cuts simply as election-year political gimmicks to generate some goodwill on the part of voters to support Democrats in the election,” he said.

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