Here are 10 Illinois laws, taxes starting July 1
A list of new laws took effect in Illinois on July 1, impacting taxes, licenses and labor relations. Here’s what you need to know.
New laws and taxes went into effect in Illinois on July 1, including higher taxes on gasoline and sports betting, a minimum wage hike for Chicago workers and new rules for noncitizens to get a driver’s license.
Here’s what you need to know about some of the laws and taxes that started July 1:
Gas tax increase
Illinois’ gas tax increased to 47 cents per gallon on July 1 as the tax continues to automatically rise with inflation.
The state gas tax was 19 cents a gallon before Gov. J.B. Pritzker took office and doubled it in his first year. Illinoisans were paying about 45 cents a gallon, the second-highest gas tax in the nation, before the July 1 hike added another two cents.
Sports wagering tax hike
Starting July 1, Illinois’ sports betting tax increased from a flat rate of 15% to a progressive structure with rates ranging from 20% to 40% depending on the operator’s revenues.
The change made Illinois’ sports betting tax the fourth highest in the nation and new tax dollars collected under this progressive structure go directly to the state’s general revenue fund.
The new law is expected to cost sportsbooks in Illinois an additional $200 million.
Video gaming tax hike
Illinois’ video gaming tax also increased from 34% to 35% starting July 1. The change is expected to bring in an additional $35 million for the state.
Driver’s licenses available to undocumented immigrants
Undocumented immigrants were allowed to get an Illinois driver’s license starting July 1.
Under House Bill 3882, noncitizens living in Illinois are allowed to apply for a standard driver’s license with the wording “Federal Limits Apply.” These licenses replace the current Temporary Visitor Driver’s License and are considered a valid form of identification compliant under the federal REAL ID Act.
For noncitizens to qualify for a standard Illinois driver’s license, they must still pass a driving test, have valid car insurance, provide identification documents and prove at least one year of residency in the state.
Child labor law change for social media
Senate Bill 1782 extends Illinois’ existing child labor protection laws to social media influencers.
Under the new law, bloggers on social media platforms who feature a child in 30% or more of their online content would be required to set aside 15% of the gross earnings from the video in a trust under the child’s name.
Once the child turns 18, they will then be allowed to withdraw money from the trust fund and take legal action against videos in which they were featured as children but not properly compensated.
Freelance Worker Protection Act
House Bill 1122, also known as the Freelance Worker Protect Act, mandates businesses pay freelance workers on or before the contractually agreed upon payment date.
If the due date for payment is not specified, the company is required to pay the independent contractor within 30 days of completing the service.
The bill also includes punishments for employers that do not pay by the agreed upon date and adds protections for freelancers against threats, intimidation, discipline, harassment and discrimination.
Changes to administration of school assessments tests
Senate Bill 1993 requires school boards to hold public votes at regular meetings before approving new contracts for district-administered assessments. These meetings must be publicized and open to the public.
Chicago minimum wage increase
The minimum wage in Chicago rose to $16.20 on July 1. This applies to all businesses regardless of the number of workers they employ. Large businesses, with 21 or more employees, currently pay $15.80 an hour while small business pay $15 an hour.
Tipped workers will also see their hourly wage increase from $9.48 to an estimated $11.02 an hour. Under the One Fair Wage ordinance, it will continue to increase by 8% annually until 2028, when the tipped minimum wage will be fully eliminated.
There are currently about 100,000 tipped workers in Chicago. This ordinance will make Chicago the largest city in the nation to eliminate the tipped wage, according to the Chicago Tribune.
More time off for Chicago workers
All Chicago businesses are now required to provide workers with at least 10 days off each year under the Chicago Paid Leave and Paid Sick and Safe Leave ordinance.
The ordinance provides workers who work at least 80 hours within a 120-day period five days of guaranteed paid leave and five days of sick leave.
For more on the new laws that took effect in Illinois July 1, click here.