On July 1, several new laws and tax changes are set to go into effect across Illinois.

The updates were passed during the 2024 and 2025 legislative sessions and signed into law by Gov. JB Pritzker.

An automatic annual Motor Fuel Tax increase was put in place to account for inflation.

Currently, Illinois residents pay the second-highest gas tax in the country, behind only California.

The gas tax in Illinois is currently 45 cents per gallon, but will increase to 48.3 cents per gallon on July 1. Tax on diesel fuel will rise from 54 to 55 cents per gallon.

Also effective July 1, 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-trailer — 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 its employees in the use and administration of opioid antagonists, such as Narcan (naloxone), starting July 1. The law aims to combat opioid overdoses by training state employees to respond effectively in emergencies.

Senate Bill 2960 bans hotels with 50 or more rooms 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 bill goes into effect on July 1. Hotels with fewer than 50 rooms have until Jan. 1, 2026, to comply.

Included in the Fiscal Year 2026 budget was an amendment to House Bill 1928, which assesses a per-wager tax on sports betting. Beginning July 1, 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.

At least 50 municipalities in Illinois will see their local sales tax increase on July 1. The Illinois Department of Revenue said the rate change will range from .25 percent to an additional 2 percent, impacting business district sales tax, county public safety and mental health taxes, school facilities, home rule municipal sales tax, and non-home rule sales tax.

 Locally, the only municipality seeing an increase is New Athens – from 6.6 percent to 7.1 percent (non-home rule).