As the calendar flips to July, Illinois is ushering in a series of new laws and tax changes. Among the highlights kicking off on the first of the month are revisions to minimum wage policies, an increase in tobacco product taxes, and adjustments to gas tax rates. Additionally, there's a new tax for sports bets and a noteworthy environmental regulation that bids farewell to an everyday hotel amenity—those tiny plastic shampoo bottles we're all used to.
Chicago's minimum wage is set to increase to $16.60 for businesses with four or more employees, while tipped workers will see their minimum wage rise to $12.62 per hour. This step is part of a larger shift outlined by the One Fair Wage Ordinance passed in 2023, with the goal to slowly but surely bring tipped wages fully in line with non-tipped ones by 2028. As reported by CBS News Chicago, restaurant owners are wrestling with how to absorb these costs, opting between higher prices or cutting back staff to stay afloat.
Tobacco enthusiasts will have to dig deeper into their pockets as taxes on vapes, nicotine pouches, and other tobacco products jump from 15% to a hefty 45%. This steep increase, set to introduce an estimated $30 million in revenue for the state, will also see cigarette taxes go up by $1 per pack. Not everyone's thrilled with these changes, especially the Illinois Fuel & Retail Association, which fears that consumers might just drive across state lines for their nicotine fix.
In addition to these adjustments, starting July 1, short-term rentals like those found on Airbnb and VRBO will fall under the state's Hotel Operators' Occupation Tax. This means a 6% tax on 94% of gross receipts, and while owners must pay it, they can choose to pass this expense onto their guests. And let's not forget about the gas tax hike—drivers will now pay $0.483 per gallon for gasoline, which marks a slight increase from the previous $0.47 per gallon rate.
The environmental landscape of Illinois hospitality is also changing. Senate Bill 2960, which came into effect earlier this year but now sees enforcement kicking in, bans hotels with more than 50 rooms from offering those mini single-use plastic shampoo and conditioner bottles. According to WGN-TV, smaller establishments have until January 2026 to comply. While these bottles are going away in rooms, guests could still request them if desired at a location other than the guest room, signaling a nod to convenience while also acknowledging environmental concerns.
It's a season of change across the state, with policies aiming to steer economic, environmental, and societal shifts. As these new laws roll out, the impact on consumers, businesses, and the environment will start to come to light, shaping the future contours of the Illinois landscape.
