The governor’s plan raise existing taxes and add new ones
On the final day of the spring session, lawmakers were to decide on key legislation involving a state capital bill for infrastructure—something Illinois hasn’t had in about a decade.
Governor J.B. Pritzker proposed a $41.5 billion plan to repair Illinois deteriorating roads, bridges, public schools, and universities over six years. The proposal calls for nearly $1.8 billion in tax increases.
A draft of the proposal, called Rebuild Illinois, says the state’s “infrastructure is in dire shape.”
In order to generate the billions of dollars needed, the state would:
- Hike the gas tax from 19 cents per gallon to 38 cents.
- Raise vehicle registration fees from $101 to $199 for vehicles up to 3 years old, $169 for vehicles 4 to 6 years old, $139 for vehicles 7 to 11 years old, and $109 for vehicles 12 years and older.
- Electric vehicles would have a registration fee of $250 per year, instead of $34 every other year.
- Add a fee of $1 to ride-hailing trips with companies like Uber and Lyft.
- Introduce a new 7 percent tax on cable, satellite, and streaming services like Netflix.
- A 50 percent increase on taxes for beer, wine, and liquor.
- Rates for daily and hourly parking garages would see a 6 percent tax add-on.
- The real estate transfer tax (RETT) would double on non-residential real estate
How much of this revenue would Chicago see? The package details $350 million in funding to fix rail congestion and traffic delays. The Regional Transportation Authority (RTA) would get an additional $3.2 billion for infrastructure projects, which includes $60 million for repairs on the Green Line Cottage Grove station.
Earlier in May, top transit officials in Chicago called for an annual investment of $2 to $3 billion over the next decade. However, RTA chairman Kirk Dillard said that’s just not enough.
$30 billion of priority transit projects are not fully funded in our region, including new @CTA buses and trains, new @Metra locomotives, bridges and track, and new @PaceSuburbanBus buses and facilities. #InvestinTransithttps://t.co/nWO6MvYbwj
— Kirk Dillard (@KDillardRTA) July 31, 2018
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