BARRINGTON HILLS – State Representative Martin McLaughlin (R-Barrington Hills) slammed the latest round of tax increases set to take effect July 1st after Governor JB Pritzker signed off on Democrats’ Fiscal Year 2026 state budget last week—the largest spending plan in Illinois history. McLaughlin called the budget a punishing blow to families, job creators, and workers across the state.
“Democrats never miss an opportunity to take more of your money,” said McLaughlin. “This budget raises taxes on the things people use every day— gasoline, phones, internet, and even short weekend trips. It’s a classic Illinois move: grow government, grow spending, and hand taxpayers the bill.”
Tax increases taking effect July 1 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%
- Sports Betting Tax Hike: 25 cents per wager for the first $20 million in bets a sportsbook takes in—then 50 cents per bet after that.
- Major Increases on Nicotine Products: E-cigarette taxes triple (15% to 45%), moist snuff is now taxed at 45% of wholesale, and new taxes hit nicotine pouches, lozenges, and gum.
- Short-Term Rental Tax Expansion: Airbnb and Vrbo stays will now be taxed like hotel rooms.
- Telecom Tax Increase: Phone and internet services taxed at 8.65%, up from 7%.
McLaughlin referenced the increases to the Motor Fuel Tax as a point of major concern: “The idea that we can raise diesel prices and it’s not going to have an impact on families and consumers is ridiculous. It’s going to cause more inflation and higher prices for everyone across the board and it’s incredibly anti-business” said McLaughlin.
“Diesel is used to deliver everything to our homes or our businesses by either rail or truck and not having that basic understanding it’s going to cost everyone. I think we need to rethink our energy policy with the understanding that Illinois taxpayers are tapped out.”
For more information about Representative McLaughlin, visit RepMcLaughlin.com
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