Illinois’ new laws went into effect July 1, including a minimum wage increase and a gas tax increase.
In Chicago, minimum wage workers will now make a base pay of $16.20 per hour. Before, the minimum wage was $15.80 per hour. In Cook County, which encompasses Oak Park, minimum wage will increase to $14.05 per hour from $14 per hour for non-tipped employees. Tipped workers base pay will remain at $8.40 per hour.
Tipped workers in Chicago, however, will see an increase in their base wages. Now, these workers will make $11.02 per hour plus tips, up from $9.48 per hour. Some say the increased wages will allow for better service and employee retention, according to ABC Chicago. But some critics say the costs may have to be covered by customers.
Illinois’ gas tax also increased July 1, by two cents to 47 cents per gallon. According to the Illinois Policy Institute, that means a typical driver will pay about $184 more in gas taxes than in 2019, when the tax was increased to 38 cents per gallon, from 19 cents.
The average gas price in Cook County as of July 2 was $4.16, according to AAA, almost 9% more than the state average of $3.83 per gallon of regular gasoline.
Gas taxes disproportionately affect middle- and low-income individuals, according to Illinois Policy Institute, and Illinois’ retail gas price is the seventh-most expensive in the United States.
Illinois Policy Institute is a nonprofit, nonpartisan research organization that, according to its website, advocates to protect civil liberties, limit the power of government and bring down property taxes.
“Illinoisans were already overburdened with heavy gas taxes before this latest hike and now it will be more costly for tens of millions of Illinoisans expected to take to the roads this summer,” Bryce Hill, director of fiscal and economic research at the institute said in a news release. “These tax increases continue to damage our quality of life and make Illinois an expensive place to live.”
The group claims that there will be a $1.1 billion increase in taxes overall in 2024. In Illinois’ fiscal year 2025 budget, officials say “individual income taxes are forecasted to grow $979 million.” Illinois Gov. JB Pritzker signed a $53.1 billion state budget June 5, the largest in state history, with an emphasis on childcare and education, according to Courthouse News Service.
Another tax-related increase is one on sports wagering. Starting July 1, the tax was increased from 15% to up to 35%, according to the Illinois fiscal year 2025 budget. That could bring in about $200 million in additional revenue for the state. Illinois also projects about a $22 million increase in revenue for gaming taxes and about $7 million more for adult-use cannabis tax.
In Oak Park, Dutchess Cannabis Company recently replaced the MedMen cannabis dispensary at 1142 Lake St. The village collects a local cannabis tax, on top of the state tax.
Another July 1 change is that immigrants lacking permanent legal status can now apply for standard Illinois driver’s licenses. Instead of receiving a temporary visitor driver’s license, these immigrants can now get a limited four-year driver’s license that say “Federal Limits Apply,” according to the Illinois Office of the Secretary of State.
The application process is the same as a temporary visitor driver’s license. The individual must have lived in Illinois for more than a year and show certain documents including proof of residency and car insurance. The applicant must also pass vision, written and driving tests.
The licenses, however, cannot be used to obtain a REAL ID or to register to vote, according to the Illinois Office of the Secretary of State.
In Oak Park, there was an influx of migrants in late October 2023. All the migrants under Oak Park’s care found new homes by early April 2024. Some resettled in the village, and others in neighboring communities.
Correction, July 8, 2024: A previous version of this article misstated the minimum wage increase in Cook County. We regret the error.
