ROCKFORD – State Representative John M. Cabello (R-Machesney Park) slammed the latest round of tax hikes taking effect July 1st after being signed into law last month by Governor JB Pritzker as part of Democrats Fiscal Year 2026 state budget. Cabello is calling the new budget, the largest spending plan in state history, a direct attack on working families, job creators, and anyone trying to make ends meet in Illinois.
“Today, thanks to Democrats, the cost of living in Illinois is going up—again,” said Cabello. “From cellphones, online sports betting, vacation rentals, and tobacco, Democrats found every way possible to nickel-and-dime hardworking people. This budget is anti-family, anti-worker, and anti-business.”
The new taxes include:
- Annual Motor Fuel Tax Increase: For gasoline, the tax is increasing to $0.483 per gallon, an increase of 2.77%; For diesel fuel, the tax is increasing to $0.558 per gallon, an increase of 2.39%
- Increased taxes on sports betting: 25 cents per wager for the first $20 million in bets a sportsbook takes in, jumping to 50 cents per bet after that.
- Massive tax hikes on nicotine products: E-cigarette taxes triple from 15% to 45%; moist snuff is taxed at 45% of wholesale (up from 30 cents/oz); and new taxes hit nicotine pouches, lozenges, and gum.
- Hotel tax expansion to short-term rentals: Airbnb and Vrbo bookings will now be taxed under the Hotel Operators’ Occupation Tax.
- Increased telecom taxes: Phone and internet services are taxed at 8.65% (up from 7%).
“All of this to pay for a bloated $55 billion budget Republicans had no voice in,” said Cabello. “Republicans were shut out of negotiations—again—because the majority party doesn’t want fiscal discipline, they want more of your money.”
Cabello said Illinoisans are being taxed out of their own state. “We’re losing families, losing jobs, and losing small businesses quicker than any other state. You can’t fix failed leadership with higher taxes.”
For further details or inquiries, please contact Representative Cabello at 815-621-2196.
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