Illinois Gas Tax

[Gearhead Jim]

If we drive 10,000 miles per year in Illinois (our driving vacations are outside the state) at avg 20 mpg, that works out to an increase of $95 per year. If it helps get the roads fixed, that's a bargain. If.


Someone said PA has the highest fuel tax, and the roads last time I was there were awful, made Illinois look smooth.


The new gov is said to be strongly against taxing pensions & SS, we'll have to see if that holds. The high property taxes are not such a big deal when you are paying $0 state income tax.


There is no perfect place to live, we've been looking around for 18 years and still choosing to stay in Illinois.
Everyone's situation is different.

 

[rk911]

...The new gov is said to be strongly against taxing pensions & SS, we'll have to see if that holds. The high property taxes are not such a big deal when you are paying $0 state income tax...

the gov has already proved himself to be a cheat and a liar so i for one am not holding my breath.

 

[Walt34]

[mod hat on]

Do please keep the personalities of politicians, good or bad, out of the discussion lest Porky make an appearance.

[mod hat off]

 

[jldavid47]

The new gov is said to be strongly against taxing pensions & SS, we'll have to see if that holds. The high property taxes are not such a big deal when you are paying $0 state income tax.

Oh really? When we moved from Illinois to Indiana the Indiana income tax on my pension amounted to about $1500. The difference in property taxes (for a similar house) was $7000 and growing wider every year. That's $5500+ in my pocket annually and doesn't take into account that the situation in Illinois will only get worse.



We liked our home and community in Illinois but Illinois became too burdensome both financially and politically. NO regrets about moving out at all.

 

[MrGary]

EV no gas taxi

Since I have 2 EV's I haven't been to a gas station in 11 months. My electric bill was 22 something this past month. I heard the CA. gas tax went up 5.5 cents a gallon for those that still buy gasoline.

They will find a a way to get some kind of road tax from EV's . The gas tax is supposed to pay for road maintenance.

 

[CHBinFL]

I moved from IL to FL in 2010 after being there 20 years. I found the money i saved in property tax and income tax paid my apartment rent (and now pays my slip fees for the boat I live on). The people who bought my house in IL in 2010 sold it last year for less than they paid me. I thought I took a beating because of the housing market at the time, but I guess the fleeing of IL must be causing a housing glut.

 

[rk911]

They will find a a way to get some kind of road tax from EV's . The gas tax is supposed to pay for road maintenance.

operative word in that sentence us ‘supposed’. the legislature is taking some for themselves as a ‘raise’ and only 10% of the new recreational marijuana money is earmarked to pay down debt. the other 90% is for new spending.

 

[ERD50]

They will find a a way to get some kind of road tax from EV's . The gas tax is supposed to pay for road maintenance.

Well, IL did also increase the registration fees for EVs. IIRC (might be posted earlier in this thread), it went from a reduced fee (compared to non-EV), to something like $100 above non-EV.

But as was just posted, I don't think there is anything that actually ties that to rad improvements, pretty sure it is in a sort of general fund. Even if there is a specific fund, money is fungible, and I bet they still play a shell game with it.

-ERD50

 

[CRLLS]

They will find a a way to get some kind of road tax from EV's . The gas tax is supposed to pay for road maintenance.

One part of Illinois' new gas tax is to charge EV's higher annual license fees. I'm not sure if that will go directly to road funds or not. I'd have to read the bill. I haven't seen it in any news reports. Previously, Illinois EV's were getting a break in the registration at $17.50 per annum vs $98 for gas cars. Under the new law, gas cars will be $148 and EV's $248.

 

[ychuck46]

H3 is better than that

That's a nice car

OK, so, a bit of hyperbole on my part, it gets better mileage than a tank. 13 mpg is about what a Hummer gets, and IMO that's a "suburban tank", so maybe the example wasn't that overstated after all.

We have owned a 2007 H3 since we bought it new. By not goosing it I used to get almost 20 mpg in mostly highway driving; that is not a typo. Lately, though, with mostly suburban and town driving it is probably more like 17 mpg (we don't drive it much in her old age). Compare that with a Jeep Wrangler back in that time and tell me which vehicle the tree huggers should have gone after to kill.

 

[ychuck46]

Similar change

I moved from IL to FL in 2010 after being there 20 years. I found the money i saved in property tax and income tax paid my apartment rent (and now pays my slip fees for the boat I live on). The people who bought my house in IL in 2010 sold it last year for less than they paid me. I thought I took a beating because of the housing market at the time, but I guess the fleeing of IL must be causing a housing glut.

We left NY for TN in 2010 as well. We bought a house twice the square footage of what we had in NY, and 10x the land size. Our property taxes dropped 75% and have never gone up in nine years here. Small town living in the South can be easy on the wallet, but we are seeing a lot of encroachment from the North and West of people who want to ruin this state like their former abodes. Sad to see it happening.

 

[rk911]

Well, IL did also increase the registration fees for EVs. IIRC (might be posted earlier in this thread), it went from a reduced fee (compared to non-EV), to something like $100 above non-EV.

But as was just posted, I don't think there is anything that actually ties that to rad improvements, pretty sure it is in a sort of general fund. Even if there is a specific fund, money is fungible, and I bet they still play a shell game with it.

-ERD50

and that's the point. it ain't the dollars so much...although the taxes are way too high...its the corruption at all levels of govt. more and more tax dollars are demanded but the debt is not seriously addressed. the state budget is more of a personal piggy bank for our lawmakers. have a read:

https://www.rrstar.com/news/20190107/chuck-sweeny-illinois-biggest-problem-is-corruption

https://www.chicagobusiness.com/government/what-city-hall-corruption-costs-chicago-business

https://www.washingtonexaminer.com/news/illinois-governor-under-federal-investigation-over-mansion-tax-break

 

[GenXguy]

The new gov is said to be strongly against taxing pensions & SS, we'll have to see if that holds.

I don't trust the governor. Also remember, other retirement income from company retirement plans such as 401Ks isn't taxed at the state level, either.

The high property taxes are not such a big deal when you are paying $0 state income tax.

$0 state income tax? I still have to pay state income tax on my interest income, brokerage dividends, capital gains distributions, and realized capital gains, even when I'm retired. Anything that's not specifically considered "retirement" income is taxed, and it's at a 65% higher tax rate than it was most of my career.

The property taxes are incredibly high in Illinois. Between that and higher taxes and fees, with even more to come, I'm looking for greener pastures.

 

[ychuck46]

and that's the point. it ain't the dollars so much...although the taxes are way too high...its the corruption at all levels of govt. more and more tax dollars are demanded but the debt is not seriously addressed. the state budget is more of a personal piggy bank for our lawmakers. have a read:

One of the more egregious examples of this was from our former abode in NY. The NY State Thruway system, when it was completed, had a toll system in place that was supposed to sunset a few decades after the system was opened. The politicians "promised" they would adhere to that timeframe, which was to conclude sometime in the early 1990s I believe. Those tolls are still in place today, with likely increased charges for Thruway usage over when I left in 2010, with no end in sight. They will be in place forever since NY is so ravenous for money from anywhere to keep their spending increasing on people and projects the Governor and Legislature deem "necessary".

 

[jldavid47]

They will find a a way to get some kind of road tax from EV's . The gas tax is supposed to pay for road maintenance.

Many states are now adding a surcharge to registration fees for EVs and rightfully so. They use the roads, too.

 

[GenXguy]

We left NY for TN in 2010 as well. We bought a house twice the square footage of what we had in NY, and 10x the land size. Our property taxes dropped 75% and have never gone up in nine years here. Small town living in the South can be easy on the wallet, but we are seeing a lot of encroachment from the North and West of people who want to ruin this state like their former abodes. Sad to see it happening.

You moved at a good time. I've been checking TN housing in several markets down there, and the prices have really gone up, and the houses still seem to be selling like hotcakes - totally the opposite of where I live in IL where I have seen no appreciation to speak of in 17 years.

I'm not a big city liberal, so I think I would fit in pretty well.

 

[Gearhead Jim]

I don't trust the governor. Also remember, other retirement income from company retirement plans such as 401Ks isn't taxed at the state level, either.

$0 state income tax? I still have to pay state income tax on my interest income, brokerage dividends, capital gains distributions, and realized capital gains, even when I'm retired. Anything that's not specifically considered "retirement" income is taxed, and it's at a 65% higher tax rate than it was most of my career.

The property taxes are incredibly high in Illinois. Between that and higher taxes and fees, with even more to come, I'm looking for greener pastures.

(EDITED 07-14)
For the last dozen years we have indeed paid $0 Illinois income tax. It's all pensions/IRAs/SS. If one presumes a 5% state income tax (just a WAG example), the money we would pay into state income tax is equal to the total property tax we now pay on a nice house in the far suburbs.

Sure, Illinois (mostly, Cook County) is corrupt, cold in the winter, etc.
My job kept us here for 35 years and I couldn't wait to leave at retirement. But when we looked around seriously a few years before retirement, no other place had much pull. Plus the 35 years of friendships and familiarity.
We wintered in Florida for 7 years and Arizona for 3 years. They have their attractions, but not enough to make us move.
Our daughters live in D.C. and London. We can fly nonstop (standby passes) from OHare to either of those cities, or they can come to us.
Everyone's situation is different, and ours may change some day.

Some friends moved from our neighborhood to a nice suburb of Phoenix, three years ago. They did the math carefully and predicted they would save about $500 per month total cost of living in the new place. Now that they've been there three years, actual numbers come out equal. And they are stuck inside just as much as we are, except they stay inside during summer and we do it during winter.

The grass is always greener...

 

[Ronstar]

For the last dozen years we have indeed paid $0 Illinois income tax. It's all pensions/IRAs/SS. If one presumes a 5% state income tax (just a WAG example), the money we would pay into state income tax is equal to the total property tax we now pay on a nice house in the far suburbs.

Sure, Illinois is corrupt, cold in the winter, etc.
We wintered in Florida for 7 years and Arizona for 3 years. They have their advantages, but not enough to make us move.
Our daughters live in D.C. and London. We can fly nonstop from OHare to either of those cities, or they can come to us.
Everyone's situation is different.

Some friends moved from our neighborhood to a nice suburb of Phoenix, three years ago. They did the math carefully and predicted they would save about $500 per month total cost of living in the new place. Now that they've been there three years, actual numbers come out equal. And they are stuck inside just as much as we are, except they stay inside during summer and we do it during winter.

The grass is always greener...

We also paid $0 in Illinois state tax. We just sold our Arizona snowbird place and hope to buy a house there as our only residence. I’ve done the math and the total cost of living in Illinois is about the same as Arizona. And it’s true that the number of nasty hot days per year in Arizona is about the same as the number of nasty cold days in Illinois.

But the equalities are fading fast IMO. The state of Illinois financial situation is getting worse and will only lead to more taxes. None of the additional taxes recently enacted are being used to pay down the debt to my knowledge.

People are leaving in droves, leaving a smaller number of taxpayers to pay an increased amount of taxes. So the tax burden will only get worse. And real estate values in Illinois will decline simply because of supply and demand. So financially it makes sense to get out because living in Illinois will not be financially “equal” to living in most states in the near future. I do understand that there are other concerns besides financial - jobs, family, etc that will tend to keep people in Illinois. But those without these ties will be leaving.

 

[JoeWras]

I have wondered if fresh water may be the ultimate taxable item that pays Chicago's bills.

Per what I have read in the Chicago trbune,I believe a number of the suburbs are now buying water from Chicago and paying 4-6x what city residents do. I think it had something to do with underground aquifers drying up to the level that the suburban wells were drilled down to or toxicity in ground water.

But it is not as simple as Chicago mining Lake Michigan and charging everyone for it.

The other states (and Canada) in the Great Lakes Basin have complained bitterly about Chicago's usage, including the reversal of the river and associated output required to keep it flowing. Then on the other end, Missouri isn't happy about getting Illinois waste, and for that matter downstate isn't happy about getting Chicago's waste.

There have been court challenges and there will continue to be.

One of my fond memories of growing up in Chicago was the park water fountains. They ran 24x7 through the whole summer. After playing in the park, you saddle up to the fountain and get a clean, fresh, cold drink. It was great! I'm pretty sure they stopped that practice years ago.

Also, Chicago for years ran unmetered water to homes. I saw A LOT of waste. I understand they are trying to phase in a "saving program" for people to voluntarily get metered. But this is getting hosed up because of the disturbance of all the old lead piping still in use.

 

[youbet]

We left NY for TN in 2010 as well. We bought a house twice the square footage of what we had in NY, and 10x the land size. Our property taxes dropped 75% and have never gone up in nine years here. Small town living in the South can be easy on the wallet, but we are seeing a lot of encroachment from the North and West of people who want to ruin this state like their former abodes. Sad to see it happening.

This is funny! DIL is from eastern Tn and reports that it's east coast folks ruining their end of the state! She even mentioned NY.

Get off my lawn!

 

[youbet]

where I live in IL where I have seen no appreciation to speak of in 17 years.

Could you share the general area you're in? I'm curious because here in the close-in Chicago suburbs, we've seen a lot of appreciation in the past 17 years. Likely not as much appreciation as if there was less controversy and financial chaos in the state, but far more than the zero you've had.

Our old "hood" back on "da Nortwest side" has priced itself out of our reach due to gentrification. If we tired of suburban living, we couldn't afford to move back.

Are you in one of those downstate small towns where Main St has turned into Ghost Town St?

 

[Walt34]

This is funny! DIL is from eastern Tn and reports that it's east coast folks ruining their end of the state! She even mentioned NY.

Get off my lawn!

Nononononono!

According to the long-time residents of WV around here, it's "all them transplants" from other states. Doesn't seem to matter where they're from. And if you didn't grow up in the same house that your great-great-grandmother did, you're a "transplant".

Get off my lawn indeed!

 

[Ronstar]

But it is not as simple as Chicago mining Lake Michigan and charging everyone for it.

The other states (and Canada) in the Great Lakes Basin have complained bitterly about Chicago's usage, including the reversal of the river and associated output required to keep it flowing. Then on the other end, Missouri isn't happy about getting Illinois waste, and for that matter downstate isn't happy about getting Chicago's waste.

There have been court challenges and there will continue to be.

One of my fond memories of growing up in Chicago was the park water fountains. They ran 24x7 through the whole summer. After playing in the park, you saddle up to the fountain and get a clean, fresh, cold drink. It was great! I'm pretty sure they stopped that practice years ago.

Also, Chicago for years ran unmetered water to homes. I saw A LOT of waste. I understand they are trying to phase in a "saving program" for people to voluntarily get metered. But this is getting hosed up because of the disturbance of all the old lead piping still in use.

I did a little research. Chicago draws about 700 million gallons of water from Lake Michigan per day and transports 267 million gallons to other communities. http://graphics.chicagotribune.com/news/lake-michigan-drinking-water-rates/system-map.html

I saw where Chicago charges one community $19.05 per 5000 gallons. http://graphics.chicagotribune.com/news/lake-michigan-drinking-water-rates/index.html If my math is correct, and if Chicago charges all communities the same $19.05 rate, the city makes more than a million dollars a day from water transport fees to other communities.

https://drinkingwater123.metroplanning.org/meet-your-water-an-introduction says that Chicago currently draws out 76% of the amount that the supreme court decree allows.

It is cost prohibitive for far suburban communities to get Lake Michigan water, because each town that the water travels through charges the receiving town a fee. Some far suburban communities pay fees to least 4 cities that transport their water. So I don’t think that Chicago will reap a windfall by drastically increasing water exports.

 

[youbet]

Our town buys its water from Chicago and has for the past couple of decades (at least). We paid about $240 for water last year. We're not big water users, no sprinkler system, no elaborate landscaping, no large family, etc. But we're not really what you'd call "conservationists" either. At the price we pay, neither DW or I give a moment's thought to length of showers, washing the car, etc.

Compared to our prior cost when our town used well water and we had to have a water softener and maintain it, this is a big improvement.

I'm not sure how far west of us Lake Michigan water has been extended. Everybody seems to want it and there seems to be (as with most everything here) some controversy.

 

[Ready-4-ER-at-14]

I had a house that went from unmetered to metered voluntarily. Basically there was a lead water line coming into the house and then at the main shut off near ground level it switched to maybe galvanized piping.

I was having water pressure problems after installing a new shower at the shower so hired a plumber to retrofit the house using 3/4 copper instead of 1/2". The premise was the scale inside the pipe was reducing pressure.
Turned out the new shower had internal water use restrictions.

Anyhow the meter installation didn't affect my water as it was after the main shut off if i remember correctly. Apparently it is the shiny lead that causes most of the toxicity and the corrosion of shiny lead limits spread into water.
Seems from what I heard on talk radio they now add chemicals to quick corrode the pipe repairs and makes it much less toxic.

For every metered Chicago home, they can probably supply 2 or 3 suburban homes cause we were used to wasting water so close to the lake and all. I used to spray down the southern exposure to my brick building every afternoon to limit the need for AC before I had the meter.