Rockford Sun

State Representative John M. Cabello has voiced strong opposition to the latest tax increases in Illinois, which are set to take effect on July 1st. These taxes were signed into law last month by Governor JB Pritzker as part of the Democrats' Fiscal Year 2026 state budget, marking the largest spending plan in the state's history.

Rep. Cabello criticized the new budget, labeling it as a burden on working families and businesses in Illinois. "Today, thanks to Democrats, the cost of living in Illinois is going up—again," he stated. "From cellphones, online sports betting, vacation rentals, and tobacco, Democrats found every way possible to nickel-and-dime hardworking people. This budget is anti-family, anti-worker, and anti-business."

The tax changes include an increase in motor fuel taxes with gasoline rising to $0.483 per gallon and diesel fuel increasing to $0.558 per gallon. Taxes on sports betting will see an increment with 25 cents per wager for the first $20 million taken by a sportsbook and 50 cents thereafter. Nicotine products face significant hikes; e-cigarette taxes will triple from 15% to 45%, moist snuff will be taxed at 45% of wholesale price instead of 30 cents per ounce, and new taxes will apply to nicotine pouches, lozenges, and gum.

Short-term rentals booked through platforms like Airbnb and Vrbo will now be subject to the Hotel Operators’ Occupation Tax. Additionally, telecom taxes for phone and internet services are set to increase from 7% to 8.65%.

Cabello expressed frustration over what he perceives as exclusion from fiscal discussions: “All of this to pay for a bloated $55 billion budget Republicans had no voice in,” he said. “Republicans were shut out of negotiations—again—because the majority party doesn’t want fiscal discipline, they want more of your money.”

He warned that these measures could drive residents out of Illinois: “We’re losing families, losing jobs, and losing small businesses quicker than any other state. You can’t fix failed leadership with higher taxes.”

For further details or inquiries regarding his statements or position on this matter, Representative Cabello can be contacted at 815-621-2196.