Changes for Illinois motorists on July 1

Beginning Thursday, Illinois drivers will see an increase in the state motor fuel tax rate and twice annually insurance verifications.

On July 1, the Illinois Motor Fuel Tax rate for gasoline will increase by $0.005 per gallon, making the motor fuel tax rate $0.387 per gallon. The previous year’s increase was $0.007 per gallon.

This increase is based off the rate of inflation recorded in March, not exceeding one cent. Automatically increasing the motor fuel tax rate under this parameter was written into legislation in 2019.

The revenue from these taxes goes toward fixing state roads and other infrastructure.

Nick Chabarria, AAA St. Louis Regional Headquarters spokesperson, said it is not unusual for states to build such tax increases into their legislation. In fact, Illinoisans may soon find they can no longer go across the river to find relief at the pump. 

Missouri Gov. Mike Parson has not yet signed the legislation into law, yet Missouri’s Legislature agreed on a gradual tax increase of 2.5 cents a year until the tax hits 29.5 cents per gallon in approximately five years, Associated Press reported. Drivers can apply for a refund, but must show necessary receipts. 

“Not including Missouri’s new fuel tax increase … currently Missouri’s fuel tax rate is 17.42 cents (per gallon),” Chabarria said. “When it comes to state fuel tax rates (combined with use tax rates) as far as cheapest to most expensive, Missouri (currently) has the second lowest fuel tax rate just behind Alaska, and Illinois (before the increase) has the third most expensive.”

These motor fuel tax increases will add to already high gas prices due to a return to normal as pandemic restrictions ease. 

“From AAA’s standpoint, we know that fuel prices have gone up significantly around the country really since late last year,” Chabarria said. “We know that throughout much of 2020, fuel prices around the country and in Illinois in some cases were at historic lows due to decreased demand because of the pandemic. We know that people weren’t driving as much and of course working from home and staying at home, so that really drove down fuel prices last year. Since late last year, though, we’ve also seen crude oil prices really increase and most recently now they’ve hit prices that we haven’t seen in about three years, so crude oil prices and the return of gasoline demand nationwide has kind of really been driving up the prices.” 

Also beginning July 1, vehicle owners’ car insurance verification will be done electronically at least twice a year at random times. 

If one’s insurance cannot be electronically verified, they will receive a notice before their vehicle registration is suspended. 

Illinois motorists must notify their insurance agent that they received the letter, and the insurance agent should then confirm with the Secretary of State’s Office that the car owner does in fact meet the minimum insurance requirements. If proof of insurance cannot be obtained, the vehicle owner’s license plates will be suspended and they will be charged a $100 reinstatement fee.

In a press release, Illinois Secretary of State Jesse White said the new verification system will decrease the amount of uninsured motorists. 

“My office has led the effort to establish and implement an automotive insurance verification system online which will serve to reduce the number of Illinois motorists driving while uninsured,” White said. “The message is very simple: if you don’t have auto insurance, get covered now. It is the law.”

For more information on insurance requirements, visit the Secretary of State’s website at cyberdriveillinois.com.

Also, White announced this week that expiration dates for driver’s licenses and ID cards have been extended an additional five months — from Aug. 1, 2021, to Jan. 1, 2022. 

This extension does not apply to commercial driver’s licenses and CDL learner’s permits.

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Madison Lammert

Madison is a reporter at the Republic-Times. She has over six years of experience in journalistic writing. Madison is a recent graduate of Southern Illinois University Edwardsville; she graduated summa cum laude with a degree in mass communications. Before graduating and working at the Republic-Times, Madison worked for SIUE’s student newspaper, The Alestle, for many years. During her time there she filled many roles, including editor-in-chief. When she is not working, she likes to spend time with her dog and try new restaurants across the river.
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