Temporary relief from grocery taxes, gas taxes coming to Illinois starting Friday
CHICAGO (CBS) -- Some financial relief is on the way for Illinois residents, at least when it comes to taxes. Starting Friday, the state is suspending the 1% tax on groceries, and other temporary tax relief measures also are going into effect.
It's all part of the state's 2023 budget plan, which Gov. JB Pritzker signed into law in April. It comes at a time when many families are understandably struggling with increased prices for groceries and other needs, due to inflation.
The governor's $1.8 billion tax relief plan includes suspending the state's 1% tax on groceries for one year.
MORE INFO: Illinois Family Relief Plan to Begin July 1
A planned increase in the state's gas tax that was set to take effect on July 1 will be delayed for six months. It comes as drivers are struggling with gas prices that are averaging nearly $5 per gallon nationwide and nearly $5.40 per gallon in Illinois. At this time last year, the average price of gas nationwide was about $3.12 per gallon, and in Illinois it was $3.36 per gallon.
The plan also will send property tax rebate checks of up to $300 to homeowners.
And income tax rebates of $50 per person and $100 per dependent child, for up to three children, also will go out to taxpayers. Those income tax rebates are limited to individual taxpayers earning less than $200,000 per year, and joint filers earning less than $400,000 per year.
"Even more tax relief will go into effect next year from a permanent increase in the Earned Income Tax Credit, and an expansion from the number of households covered by it," Pritzker said of his tax relief plan.
The governor's budget plan also makes a $1 billion deposit into the state's so-called "rainy day fund," which had dwindled to almost nothing under former Gov. Bruce Rauner.
As for the suspension of the 1% tax on groceries for one year, critics have asked why Gov. Pritzker didn't simply do away with it permanently.
"Actually, we're doing something even better. We're sending checks directly to people. They can use those dollars to reduce their gas price at the pump by paying for it, or they can use it in other ways," Pritzker said Thursday.
Finally, to make back-to-school shopping less expensive, the state will have a one-week sales tax holiday on clothing and school supplies in August. The state also will double the tax credit for teachers who buy their own classroom supplies.
The Illinois Republican Party has criticized the Democratic governor's budget plan, calling his tax relief programs "insulting temporary election-year gimmicks."
