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"Pennies from Pritzker"
Illinoisans will receive some modest tax relief starting (today) when the state's new fiscal year begins.
That includes some income tax rebates, property tax rebates, a suspension of the state's 1 percent tax on groceries, and a six-month pause on the scheduled inflationary increase in the state's motor fuel tax.
Tax relief measures beginning today include:
- An income tax rebate of $50 per individual with income below $200,000 a year, or $100 for couples filing jointly with income below $400,000 a year, plus $100 per dependent child, up to three children.
- A suspension of the 1 percent sales tax on groceries through June 2023.
- A suspension of the scheduled inflationary increase in the motor fuel tax through Dec. 31, which has been estimated at 2.2 cents per gallon. Instead, the motor fuel tax will increase twice at the rate of inflation next calendar year.
- A sales tax holiday on back-to-school items, to run from Aug. 5 to Aug. 14, when the rate will be imposed at 1.25 percent instead of the regular 6.25 percent.
- And an additional property tax rebate of up to $300 for homeowners who were eligible to claim the property tax credit on their 2021 state tax returns. The rebate is available to joint filers earning $500,000 or less and single filers earning $250,000 or less.
In addition, the tax relief package included a permanent expansion of the state's earned income tax credit, or EITC, to 20 percent of the federal EITC while also extending eligibility for that credit to noncitizens who file taxes using an Individual Taxpayer Identification Number instead of a Social Security Number.
Republicans criticized that package as an election-year gimmick, noting that the rebate checks would show up in people's mailboxes or bank accounts before Election Day, while motor fuel tax suspension would disappear soon after Election Day.
Read more here.
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