Peoria Standard

Li Arellano Jr., State Senator of Illinois, expressed concerns over a $1.50 delivery tax that was approved by the Senate despite bipartisan opposition. He described it as a regressive measure linked to Chicago's transit management in a statement made on Facebook.

"In the middle of the night, against bipartisan opposition, the Senate Democrats just passed the most regressive tax I've seen in my entire career," said Arellano, State Senator for Illinois, according to Facebook. "A $1.50 delivery tax on your online deliveries, all to bail out Brandon Johnson and the Chicago Transit Authority's mismanagement. Failed leadership and blatant transit mismanagement in Chicago has now led to Democratic lawmakers dipping into the pockets of every Illinoisan, whether they use the system or not. The tax-and-spend Democrats have once again shown that their failures will continue to harm every Illinoisan."

In May 2024, Illinois lawmakers advanced the delivery tax as part of a Senate transit funding package aimed at addressing a $771 million shortfall for Chicago-area transit agencies. The plan, which sparked significant debate over its regressive nature, passed the Senate but stalled in the House, according to Capitol News Illinois.

Capitol News Illinois reported that the proposed delivery tax is expected to generate approximately $1.5 billion annually. Of this amount, 80% would be allocated to Northeastern Illinois transit systems and 20% to downstate agencies, with the goal of preventing severe transit service cuts and layoffs.

A June 2024 analysis by Axios highlighted that Illinois' flat per-delivery tax is unique among U.S. states. While several states like Colorado and cities such as New York impose taxes on deliveries through sales taxes or fees, none have implemented a statewide flat fee solely for transit funding.

Arellano is a Republican State Senator representing Illinois' 37th District since January 2025. He also serves as a U.S. Army Reserve squad leader and is the former Mayor of Dixon (2015–2023). Additionally, he participates in committees focused on public health, veterans, and local government, according to the Illinois Senate Republicans.