Peoria Standard

Many Illinois residents frequently rely on delivery services from major retailers such as Amazon, Walmart, and Target, as well as local businesses. This convenience is now under scrutiny due to a proposed $1.50 delivery tax suggested by Governor JB Pritzker and Springfield Democrats during the recent legislative session. Although this tax did not receive a vote in the House, it remains possible that it could be considered in veto or special sessions later this year.

Democrats have been proactive in raising taxes to fund increased spending within Illinois' FY2026 budget, which amounts to nearly $1 billion in new taxes and fund reallocations. The newly signed $55 billion state budget is noted as the largest in Illinois history and includes several tax increases despite the existing high tax burden faced by working families.

Among these new taxes are:

- A sports betting tax increase, imposing a per-wager fee of $0.25 for the first 20 million bets, which doubles to $0.50 thereafter. Companies like DraftKings and FanDuel have already adjusted their user costs accordingly.

- A hotel tax applied to short-term rentals via platforms such as Airbnb and Vrbo, subjecting them to Illinois’ Hotel Operators’ Occupation Tax. This change results in higher travel costs for families within the state.

- An increase in tobacco taxes with wholesale rates rising from 36% to 45%, impacting consumer expenses further.

Critics argue that these measures demonstrate how the Democrat-led government continues its pattern of increasing both spending and taxation without addressing the challenges faced by working families. They highlight missed opportunities for bipartisan cooperation on potential tax relief initiatives, such as exemptions for family farms or eliminating taxes on tips and overtime pay.

House Republicans remain committed to opposing wasteful expenditure, defending family interests, challenging new taxes, and advocating for policies promoting economic growth.