Illinois Senate Republicans’ long term tax relief plan
Illinois residents pay some of the highest taxes in the nation, thanks in large part to a super-majority party that has continued to advance its tax and spend agenda. In addition to directly increasing taxes, majority democrats have also repeatedly enacted laws and policies which drive up property taxes. Illinois currently ranks as the state with the second highest property taxes.
The Illinois Senate Republican Caucus is committed to providing real tax relief to families. Members of the Caucus are advancing a package of legislation to hold down property taxes, increase exemptions for seniors, and reduce or eliminate some of the state’s most egregious taxes.
SB 4163: PROPERTY TAX INCOME TAX CREDIT
Increase the property tax income tax credit from 5% to 10%. Estimated taxpayer savings: $500 million per year
SB 4164: CUT SALES TAX ON FOOD AND PRESCRIPTION DRUGS
Eliminate the 1% sales tax on food (i.e. groceries) and prescription drugs/medical devices. Since the entirety of the 1% sales tax from these purchases goes to local governments, there is a provision that would ensure the local governments continue to receive what they receive now, increased by CPI on an annual basis.
Estimated taxpayer savings: around $434 million per year.
SB 4162: CUT GAS/GASOHOL SALES TAXES BY 1%
Lower the 6.25% sales tax on gas/gasohol to 5.25% for one year (FY23). Increase the Road Fund disbursement from 32% to 53%. Estimated taxpayer savings: $171 million at $3.00/gallon and nearly $200 million at $3.50/gallon .
SB 4161: SENIOR INCOME TAX EXEMPTION
Increase the additional exemption seniors receive on their Illinois income tax from $1,000 to $2,000. Estimated taxpayer savings: $40 million per year.
SB 4160: PTELL REFORMS (SIMPLE)
Allow voters, via referendum, to lower a PTELL taxing district’s extension and thus lower the taxing district’s limiting rate and limit the increase in PTELL taxing district’s limiting rate to the average CPI increase (if any) for the proceeding 10 years.
SB 4159: PTELL REFORMS (OMNIBUS)
Allows voter, via referendum, to lower a PTELL taxing district’s extension and thus lower the taxing district’s limiting rate. Additionally, limit the increase in PTELL taxing district’s limiting rate to the average CPI increase (if any) for the proceeding 10 years. Next, the proposal would make all new unfunded mandates passed by the state without an additional appropriation enacted after the effective date of the bill non-binding on the unit of local government. Increase the distribution from the individual and corporate income tax to LGDF to 7% (individual)/8.11% (corporate) in FY23 and 8% (individual)/9.11% (Corporate) in FY24 (and all subsequent fiscal years).
SB 4195: SALES TAX CAP ON GASOLINE
This legislation will save consumers around 16 cents per gallon with an estimated savings of nearly $1 billion for consumers across the state by capping the sales tax on gasoline to 18 cents per gallon. This proposal will not affect the money that goes towards the road fund.