Chicago City Wire

In Illinois, several new laws are set to take effect on July 1, impacting gas taxes and minimum wage rates in Chicago. The state's gas tax burden could reach up to 85 cents per gallon when combined with federal, state, and local fuel taxes. In Chicago, drivers face an additional city tax of 8 cents and a Cook County tax of 3 cents, along with sales taxes.

Bryce Hill from the Illinois Policy Institute commented on the situation: “With a record 3.86 million Illinoisans expected to hit the roads this summer, another gas hike is painful – especially considering this increase happens automatically every year without lawmakers even voting on it.”

Additionally, Chicago's minimum wage will rise to $16.60 per hour for most workers and $12.62 for tipped employees starting July 1. Hill expressed concerns about these changes: “We’re hurting our workers – especially on top of all the other taxes and fees the state imposes, making Illinois more and more expensive for working families. By eliminating the tip credit, lawmakers are forcing businesses to make impossible choices: raise prices, cut hours, or close entirely.”

Other tax increases taking effect include a 25-cent tax on the first 20 million sports wagers made within the state and a 50-cent tax thereafter. This primarily affects companies like FanDuel and DraftKings but also impacts competitors such as BetMGM and Caesar’s.

Short-term rentals through platforms like Airbnb and Vrbo will see an additional 6% tax in Illinois. Tobacco products will experience a wholesale price tax increase from 36% to 45%, affecting items such as vapes and nicotine gum. Furthermore, phone and internet services will have their taxes increased from 7% to 8.65%.

For further details on Illinois’ gas tax increases, information is available at illin.is/independencegas.