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East Central Reporter

Wednesday, July 2, 2025

Illinois lawmakers consider $1.50 delivery tax proposal

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State Representative Chris Miller (il) | Representative Chris Miller (R) 101st District

State Representative Chris Miller (il) | Representative Chris Miller (R) 101st District

Delivery services have become an essential convenience for many Illinois residents, providing a way to receive school supplies, groceries, and other necessities directly at their doorsteps. However, there has been a recent proposal by Governor JB Pritzker and progressive Democrats to introduce a $1.50 delivery tax on nearly every package delivered to homes in the state.

Although this proposed delivery tax did not come to a vote during the last legislative session, it remains possible that it could be considered in future veto or special sessions later this year.

Illinois Democrats have been active in raising taxes, introducing nearly $1 billion in new taxes and fund reallocations as part of the fiscal year 2026 budget. This budget is notable for being the largest in Illinois history at $55 billion. Among the new taxes are:

- A sports betting tax increase, which imposes a per-wager tax of $0.25 for the first 20 million bets, increasing to $0.50 thereafter. Companies like DraftKings and FanDuel have responded by adjusting their costs accordingly.

- A hotel tax on short-term rentals through platforms such as Airbnb and Vrbo, now subject to Illinois’ Hotel Operators’ Occupation Tax.

- An increase in the wholesale tobacco tax from 36% to 45%.

These measures reflect ongoing efforts by the Democrat-led government to address budgetary needs through increased taxation. Meanwhile, House Republicans continue to advocate against what they consider wasteful spending and new taxes, promoting pro-growth policies instead.

"Instead of collaborating with Republicans on ideas for tax relief," noted critics of these measures, "Democrat leaders once again chose to take more."

House Republicans remain committed to opposing new taxes while supporting families through alternative fiscal strategies.

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