SPRINGFIELD, Ill. (WTVO) — Several new laws and taxes are set to go into effect on July 1st, 2025, including taxes on sports betting, vaping, gas, and new rules for single-use plastics.
Some of the new regulations apply to short-term vacation rentals.
Here are some of the biggest laws and taxes starting today, July 1st, 2025.
At least 50 cities and villages in Illinois are set to have a local sales tax increase on July 1st, 2025. The rate change will range from .25% to an additional 2%, according to the Illinois Department of Revenue, which will impact business district sales tax, county public safety and mental health taxes, school facilities, home rule municipal sales tax, and non-home rule sales tax.
The annual Motor Fuel Tax increase occurs every July 1st, and was put in place to account for inflation.
Currently, Illinois residents pay the second-highest gas tax in the country, behind California.
The gas tax will increase from 45 cents per gallon to 48.3 cents per gallon on July 1st. Tax on diesel fuel will rise from 54 to 55 cents per gallon.
Hotels with 50 or more rooms are banned from providing small single-use plastic bottles (under 6 ounces) for products such as shampoo, conditioner, or soap. The measure is meant to reduce plastic waste. The law goes into effect on July 1st, 2025. Hotels will fewer than 50 rooms will have until January 1st, 2026, to comply.
Starting July 1st, a 15% tobacco tax increase will raise the tax on wholesale costs of vapes, nicotine patches, and other tobacco products to 45%. The increase is expected to generate $29.7 million in tax revenue for the state.
Cigarettes are exempt from the 45% tax increase. Instead, a new $1 per pack tax will apply as the state seeks to discourage cigarette smoking across the state.
Included in the Fiscal Year 2026 budget was an amendment to House Bill 1928, which assesses a per-wager tax on sports betting. Beginning on July 1st, a tax of 25 cents per wager will be levied on the first 20 million wagers placed with licensed sports books. After that, the rate will increase to a tax of 50 cents per wager. The state hopes to raise $36 million in yearly revenue from the change.
Effective on July 1st, 2025, House Bill 4951 changes how sales tax is handled on leased or rented property. In the past, lessors paid sales tax on the purchase of property, other than motor vehicles, watercraft, aircraft, and semi-trailers, and did not collect tax on lease payments. Under the new law, lessors can purchase property tax-free using a resale exemption and charge sales tax on lease or rental payments. The new law also impacts lessors of certain computer software licenses.
House Bill 5028 requires the state to train employees in the use and administration of opioid antagonists, such as Narcan (naloxone), starting July 1st, 2025. The law aims to combat opioid overdoses by training state employees to respond effectively in emergencies.
For a full list of new laws in Illinois in 2025, go here.
The Nintendo Switch 2 Mario Kart World Bundle currently sells for $500 just about everywhere,…
From its gorgeous landscapes, gripping acting, and historically inspired combat animations, 1348 Ex Voto makes…
As part of a big Sonos Spring Sale event that started this week, Sonos is…
I have been on vacation or sick for most of the last two weeks. In…
The sixth book in the Harry Potter illustrated collection is releasing this October and the…
Netflix has reportedly picked Maxwell Jenkins to play Fred Jones, Tanner Hagen as Norville “Shaggy”…
This website uses cookies.