Illinois residents like you pay taxes on many things. It is important to understand where your money is going. Consumer tax is one of the biggest daily taxes you will deal with. These taxes come from different places.
Knowing where your tax dollars go in consumer laws is crucial. They go into sales taxes, so-called “sin” taxes, and more.
Defining sin taxes in the state
IllinoisPolicy.org discusses the categories that fall under “sin tax”. This often refers to gasoline, cigarettes, gambling and liquor. Where does the name come from? It refers to the condemnation of these products as “harmful to society”.
The rate of taxing in the “sin tax” category varies. For example, each pack of cigarettes has a $1.98 tax. For beer, the tax is 23.1 cents per gallon. But wine has a $1.39 per gallon tax, and hard alcohol has a tax of $8.55 per gallon. Gasoline charges a tax of 39.1 cents per gallon. Riverboat gambling comes with a $3 tax for entry.
Other types of sales taxes
There are other taxes as well, of course. The overall sales tax in Illinois is 6.25 percent for all sales in the state. But there are some exceptions to these taxes. This includes movie tickets, newspapers and grocery stores.
Keep use taxes in mind if you want to buy an expensive item in a used state, too. These taxes often match the rate of sales taxes and can surprise used car owners who did not expect the expense.
Keeping an eye on where your tax dollars go is crucial in any situation. Knowing where they go when spending is of particular importance in the economy we live in.