PEORIA, Ill. (WMBD) — In response to inflation, the Illinois Family Relief Plan took effect Friday.
The plan is expected to provide Illinoisans with $1.8 billion dollars in total relief.
“We are sending $1.8 billion in tax relief to Illinois families – and we are doing that because democrats balanced the budget, eliminated the bill backlog, and state government is now running a surplus. In challenging times like these, it’s more important than ever to have a government whose first focus is on working families and those who are struggling, and leadership that provides new and creative ways to deliver relief when you need it most” said Governor JB Pritzker.
Inside the relief package is a delay to a scheduled 2 cent motor fuel tax increase, keeping the tax at 39 cents per gallon.
“I don’t think I would’ve really noticed it. I mean I still have to get gas, so it’s still a necessity,” said Ed Hammond, local driver.
But the state is making sure customers do notice the tax freeze. Beginning Friday, Illinois gas stations are required to display stickers or signs about the tax suspension or face a fine of up to $500 per unlabeled pump per day.
At Illinois grocery stores, the Family Relief Plan, has suspended the state’s 1 percent grocery sales tax for a year. Friday, many shoppers say they didn’t notice the difference in savings.
“I would expect we might start to see it. I don’t know if we pay attention enough to notice a one percent difference,” said Brian Rivara, local shopper.
Both Rivara and Hammond said despite not seeing the savings now, efforts to lower costs are welcomed.
“I think anything that can be done to help people with inflation and general prices is a good thing,” Rivara said.
“I can see for certain families, certain incomes, maybe fixed income, or reduced income, I’m sure every little bit helps,” Hammond said.
Back-to-school shoppers can expect some savings next month as well. From August 5-14, taxes on some clothing and school-related items will be reduced from 6.25 percent to just 1.25 percent.
The State of Illinois is also providing property tax rebates for eligible homeowners in an amount equal to the property tax credit they qualified for on their 2021 Illinois tax returns, up to a maximum of $300.
Additionally, individuals who made less than $200,000 in 2021 will receive $50 income tax rebates. Couples filing jointly with incomes under $400,000 will receive $100. Tax filers will also receive $100 per dependent they claimed on their 2021 taxes, up to three dependents.
Income and property tax rebates will be automatically issued to all of the estimated 6.2 million taxpayers who qualify under the Family Relief Plan based on information included in their submitted 2021 tax returns.