Hello and welcome back to my weekly Capitol Update. Both the House and Senate were in session this week as the Illinois General Assembly began the final month of its scheduled spring session.
With Illinois tied for the highest property taxes in the nation, House Republicans are proposing solutions to deliver property tax relief to homeowners across the state. Several of my colleagues held a press conference this week to unveil our Property Tax Reform Agenda, which I fully support.
How much will JB Pritzker’s gas tax hike cost you this year? Find out below, then read about my plan to provide some much-needed relief at the gas pumps.
As Co-Chair of the Commission on Government Forecasting and Accountability, I spoke with Capital News Illinois this week to discuss CGFA’s latest State revenue report and the fact that there was no “April Surprise” this year.
Downstate families will once again have to brace themselves for electric bill shocks this summer, as the Democrats’ green energy fantasies continue to reduce Illinois’ power generation capacity and raise energy rates.
On Thursday, I attended the annual Illinois Police Memorial Ceremony on the Capital lawn to pay tribute to our fallen law enforcement officers and their families.
Thank you for taking the time to read my Capitol Update. I encourage you to visit CDDavidsmeyer.org for more information.
House Republicans Offer Solutions to Deliver Property Tax Relief
As negotiations continue over legislation to develop a framework for megaprojects in Illinois, including a potential Chicago Bears Stadium in Arlington Heights, and provide property tax relief, House Republicans held a Capitol press conference this week to outline our property tax reform agenda.
“Crushing property taxes are driving families, small businesses, and opportunities out of Illinois,” said Rep. Jeff Keicher. “The reality is, property taxes don’t just show up on a bill – they shape major life decisions. Whether a young family can afford a first home, a senior can stay in the home they’ve owned for decades, or a small business can stay afloat, all are directly affected by the high cost of property taxes. Sadly, too many people feel they have little or no say in the process, and that has to change.”
Illinois House Republicans have offered several proposals that could be passed as standalone bills or included in a broader economic development package for megaprojects. The Republicans noted that instead of simply offering tax relief to large corporations, the state should work to reform the problems created by its broken property tax system.
The House Republican Property Tax Reform Agenda includes:
HB 9 (Ugaste) – Provides direct property tax relief to homeowners by creating the Fixed Pension Property Tax Relief Plan. (Estimated at $3.5 billion in state property tax relief for 2026 alone.)
HB 5611, HB 5612 (Weaver) – Provides property tax relief by reinvesting funds from paid bonds.
HB 2543 (Sosnowski) – Taxpayer Empowerment, forces taxing bodies to ask voters for approval.
HB 1024 (Cabello) – Mandates sunsets for tax referenda, adds transparency.
HB 5550 (Fritts) – Truth in Taxation (increases notice for tax increases).
How much is the new Illinois gas tax hike?
Illinois drivers will see another gas tax increase July 1.
The state tax will rise to 49.6 cents per gallon because of the automatic annual inflation increase built into the 2019 “Rebuild Illinois” infrastructure program signed by Gov. JB Pritzker.
That means Illinois drivers will continue paying among the highest gas taxes in the country. Indiana and Georgia gave residents a gas tax holiday from high prices because of the war in Iran.
The average price of a gallon of gas in Illinois was $4.986 on May 6, up from about $3.40 a year ago, according to the AAA.
When Pritzker doubled the state gas tax from 19 cents to 38 cents in 2019, lawmakers also ensured Illinoisans would face automatic inflation-linked increases every year without another recorded vote.
Once federal, state and local taxes are combined, many Illinois drivers pay more than 85 cents per gallon in taxes alone at the pump. Only California and Michigan rival Illinois for the highest total gas taxes in the country.
With Gas Prices Soaring, Rep. Davidsmeyer Backs Sales Tax Relief at the Pumps
With gas prices soaring across Illinois and the nation, State Representative C.D. Davidsmeyer is backing legislation to suspend the state sales tax on gas for six months.
As of the first week of May, the average price of gasoline hit $4.99/gallon in central Illinois. Motorists are being squeezed at the pumps not only because of world events affecting oil prices, but because Illinois has the second-highest gas tax in the nation, currently 48.3 cents/gallon. On top of that, Illinois charges a state sales tax of 6.25% on the price of gas (5% State/1.25% local governments).
Representative C.D. Davidsmeyer is sponsoring House Bill 5738 to suspend the state sales tax on gas for six months, from July 1, 2026 through December 31, 2026.
“Working families and seniors were already struggling with the high cost of living in Illinois,” Rep. Davidsmeyer said. “Now they are feeling serious pain at the pumps when they fill up on gas. To provide some relief from high gas prices, we should suspend the sales tax on gas for the rest of the year. Illinois has done this before, and we need to do it again now. It’s the least the State can do to deliver some much-needed relief to our residents.”
During the October 2025 Veto Session, Governor JB Pritzker and the Democrat majority enacted a $2.5 billion bailout of Chicago’s mass transit system. The Democrats’ Mass Transit Bailout included the largest Road Fund raid in Illinois history. SB 2111 broke the longstanding transportation funding deal that was a 55/45 Downstate/Chicago split. The Democrats’ Mass Transit Bailout swept nearly $500 million from Downstate road funds, resulting in an 85/15 Chicago/Downstate split. These funds come directly from the revenue generated by the state sales tax on gasoline.
“Thanks to JB Pritzker and the Democrat majority, the revenue from the state sales tax on gas no longer goes to funding Downstate road projects,” Davidsmeyer said. “So, to me, it’s a no-brainer to suspend this tax when gas prices are at historic highs. Illinois families cannot afford to pay this tax-on-a-tax when gas prices are so high. With the summer driving season about to get underway, I’m urging my colleagues to support HB 5738 to provide our drivers with much-needed tax relief at the gas pumps.”
Capitol News Illinois: Illinois legislators gear up for final budget talks
Illinois lawmakers are still batting around a variety of budget ideas with just a few weeks left in the legislative session.
The state remains on track to take in more revenue than originally expected this year, which provides wiggle room —though not much — for lawmakers in the budgeting process. But there remains contention about what the budget should look like, not just between the parties but also between factions of Democrats, with some demanding hefty tax increases beyond what the governor has proposed.
The Illinois Revenue Alliance, a group of progressive lawmakers and organizations such as the Chicago Teachers Union, wants to raise nearly $4 billion to increase funding for social services. They’d do that by creating new taxes and eliminating tax credits, but the governor hasn’t embraced any of the proposals, which are viewed as longshots. […]
Revenue in April was up $146 million, or 2%, compared to April 2025, with income tax receipts this March and April increasing by 4.1% compared to the same period last year, according to the bipartisan Commission on Government Forecasting and Accountability. The numbers fall in line with COGFA’s revised revenue estimates for the year, meaning there is no “April surprise” that would throw a wrench into final budget talks and projections remain on track.
Overall in FY26, revenue is up $1.7 billion through April, or 3.8%, compared to the same point in FY26. Strong-performing income tax receipts are helping to drive the revenue growth, which COGFA notes is exceeding the 0.9% growth originally expected this fiscal year. Sales taxes, which can serve as an indicator of consumer confidence, are also up 4% compared to last year. […]
Rep. C.D. Davidsmeyer, R-Murrayville, a cochair of COGFA, attributed much of the revenue growth to new taxes that have been part of recent budgets.
“It just shows that, you know, despite the tax increases that we’ve seen over the years, the tax increases are what’s keeping funding and revenue stable, as opposed to just natural growth in our economy,” he said.
Not every revenue source is in the black, however. Corporate income taxes have been declining throughout the year and are down $262 million, or 6.8%, in part because of federal tax code changes that have lowered tax rates on businesses. Parts of Illinois’ tax code are tied to the federal code. […]
Davidsmeyer said preparing for the economy to decline should be a priority during the budgeting process as unemployment ticked over 5% in February.
“You hope that the economy remains strong, but in the state of Illinois, we’re putting additional pressures on ourselves that the federal government is not putting on us,” Davidsmeyer said.
Reps. Keicher and Davidsmeyer Recap the Week and Latest State Tax Report
State Representatives Jeff Keicher and C.D. Davidsmeyer recap the week in Springfield and the Commission on Government Forecasting and Accountability (CGFA) report on state tax revenues.
