Millions of Illinois Americans are ready to receive five tax breaks, including a one-time payment of $300.
The relief was introduced as part of the $46 billion state budget that took effect on July 1.
Millions of Illinois Americans are poised to receive multiple tax breaks and relief paymentsCredit: Getty
As the Chicago Tribune reports, Gov. JB Pritzker announced the relief is intended to help working families struggling amid the rising cost of living crisis.
Gas tax stopped
The state gas tax was due to increase by 2.4 cents a gallon on Friday, but the increase has been put on hold.
According to the American Automobile Association, the average price of gasoline per gallon in Illinois is $5,325 – higher than the national average of $4,812.
The average cost of gasoline per gallon in the state last month was $5,316.
Fuel prices in Illinois are up compared to last year when the average gas price per gallon was $3,365.
By the end of the year, motorists will pay the current gas tax of 39.2 cents per gallon.
Governor Pritzker’s office estimates the savings at around $70 million.
But Zubin Shroff, who lives about 35 miles from Chicago, described the withholding as a “token gesture” in an interview with the Associated Press.
Exemption from property tax
Millions of homeowners who file joint income tax returns and earn less than $500,000 receive up to $300 in property tax exemption.
Now the limit for single taxpayers is up to $250,000.
The Tribune announced that a homeowner who pays $5,000 in property taxes would receive a $250 exemption.
The exemption will be automatically sent based on the Illinois 2021 tax return.
The governor’s office expects an estate tax exemption of up to $520 million.
Around 6.2 million taxpayers are poised to qualify for the relief payment, and checks are expected to start mailing September 12.
Illinois residents will receive a payment of $50 per taxpayer and $100 per child for up to three children.
The Aid Inquiry is estimated at around £685million.
Officials estimate it will take about eight weeks to mail the checks.
tax-free on groceries
Shoppers get some relief at the checkout as the state’s 1 percent sales tax on groceries has been suspended until June 30, 2023.
That means Americans save $1 for every $100 they spend.
But the tax freeze has been criticized by some shopkeepers, who claim it makes no difference.
Bob Goldberg, 72, told the AP, “It’s not going to feel like the 1%. If you want to do something, bring the gas up to where it was a year ago.”
back to school break
As part of the state sales tax exemption, parents can get their children’s school clothes and equipment cheaper from August 5th to 14th.
Sales tax will be reduced from 6.25 percent to 1.25 percent.
Some items that deserve a discount are staplers, calculators, crayons, erasers, and sneakers.
Sneakers and clothing items to qualify for the tax break must have a retail value of less than $125.
Amid rising inflation, states across the country are helping citizens struggling with liquidity constraints.
However, the tax exemption will not be sent today – July 4th – as the post office is closed.
Millions of Californians are set to receive payments of up to $1,050 in the coming months after lawmakers approved the state’s $300 billion budget last week.
About 20 million taxpayers are expected to receive checks ranging from $200 to $1,050.
Single taxpayers on income less than $75,000 would qualify for a $350 check, while joint taxpayers on income less than $150,000 would receive $700.
If they have at least one dependent, they will receive an additional $350.
Single taxpayers earning between $75,001 and $125,000 annually will receive a $250 payout, while couples will be capped at $250,000.
Gov. Gavin Newsom said the budget is taking “immediate action to give $$ back to millions of people battling global inflation and rising costs while addressing some of the greatest challenges of our time.”
And Berkeley State Senator Nancy Skinner called the budget “historic.”
Thousands of New Mexicans are also scheduled to receive $500 worth of refundable income tax exemptions this month.
And thousands of dollars in payments are being sent to states that don’t file income taxes.
Hundreds of thousands of Americans in Maine will receive an $850 direct payment in the coming months.