SPRINGFIELD, IL — A proposed statewide delivery tax is gaining attention as Illinois lawmakers search for ways to rescue the Chicago-area transit system from a projected fiscal cliff. Under the plan, a $1.50 “climate fee” would be applied to all motor vehicle retail deliveries — from Amazon to DoorDash — with most of the funds benefiting regional transit.
If approved, 80% of the collected revenue would go to CTA, Metra, and Pace in Chicago and the Collar Counties, while 20% would be directed to Downstate Illinois public transportation systems.
The measure is backed by State Senator Ram Villivalam (D-Chicago) and remains under review in committee as the Legislature faces pressure to finalize transit funding this year.
What’s in the Proposed Delivery Fee?
According to WANDTV, the proposal includes:
- $1.50 flat fee per delivery by motor vehicle
- Applies to retail orders statewide, including groceries, retail packages, and restaurant deliveries
- Called a “climate fee”, intended to encourage sustainability and help fund transit
The bill does not currently specify which Downstate agencies or projects will receive funds, but $200 million has been allocated for regional transit support across southern and central Illinois.
Political Pushback Emerges
Not all lawmakers are on board. State Senator Donald DeWitte (R-West Dundee) criticized the plan, suggesting it unfairly shifts Chicago’s problems onto the rest of the state.
“So we’re going to force the entire state… to generate revenues to solve these problems created in Chicago,” DeWitte said during a subject matter hearing.
DeWitte’s concern centers on the lack of specificity about Downstate use and the statewide tax’s burden on residents who may not use Chicago transit.
Supporters Argue for Statewide Investment
Sen. Villivalam pushed back on that characterization, emphasizing the bill’s effort to boost funding statewide, not just in urban areas.
“Even though I represent Chicago and suburban Cook, we need transformational investment in transit across our state,” Villivalam said during the hearing.
He noted the 20% allocation to Downstate systems was intentionally increased to ensure communities outside the Chicago region benefit from the legislation.
Still, without details on which cities or systems would receive funding, rural and suburban lawmakers have expressed hesitation to support the measure without further clarity.
What’s Next?
The delivery tax was introduced in a subject matter hearing only, and was not voted on. It remains in committee and must pass before May 31 to be included in the 2026 budget timeline. Otherwise, the Chicago and Collar County systems may begin preparing for major service cuts, as outlined in CBS News Chicago’s previous reporting.
Failure to pass a funding mechanism in the spring session would require a three-fifths supermajority in a future session to take effect by 2026.
Do you support a statewide delivery tax to help fund public transit in Chicago and Downstate? Would a $1.50 fee affect your online shopping or delivery habits? Share your views in the comments below.
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