ILLINOIS — Illinois lawmakers have approved a sweeping $55.2 billion budget that leans heavily on new and increased taxes — totaling more than $394 million — affecting residents who bet on sports, use short-term rentals like Airbnb, or purchase nicotine products. The budget also removes a $43 million property tax relief grant, effectively raising property taxes for many homeowners.
Key Budget Increases Target Sports Betting, Rentals, and Nicotine
The budget — signed off by lawmakers on June 1 and now headed to Gov. J.B. Pritzker’s desk — calls for significant revenue shifts to help close a $2 billion spending gap. Roughly half of the $800 million in new revenue is expected to come from tax hikes.
Here’s where taxpayers will feel the impact:
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Sports Betting: A new 25-cent tax on the first 20 million wagers and a 50-cent tax on every subsequent wager, effective July 1, aims to raise $36 million.
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Airbnb and Short-Term Rentals: Visitors booking rentals on platforms like Airbnb will now pay a 6% state tax, bringing them in line with hotel tax rates. This measure is expected to raise $15 million.
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Nicotine Products: A jump in the tax rate from 36% to 45% on wholesale prices will apply to cigars, vapes, gum, and nicotine pouches. However, no clear revenue projections were released prior to approval.
Corporate and Remote Business Changes
A new $72 million corporate tax increase will require all businesses selling over $100,000 annually in goods or services to Illinois customers to collect and remit sales taxes — even if they don’t have a physical presence in the state.
Additionally, companies transferring funds out of Illinois or abroad will lose exemptions and be subjected to corporate income tax, closing loopholes previously available through the “safe harbor” clause.
Property Tax Relief Eliminated
While the administration did not explicitly increase property tax rates, it canceled a $43 million Property Tax Relief Grant, impacting thousands of homeowners. The move, while subtle, essentially raises property taxes in a state already ranked No. 2 for highest property taxes nationally, nearly double the U.S. average.
Source – Capitol News Illinois
More Tax Hikes Could Still Come
Though the spring legislative session has concluded, lawmakers left open the possibility of a special session, where additional taxes could be passed — albeit with a higher bar of three-fifths majority approval.
Experts warn these moves reflect a broader trend of short-term fixes for long-term financial challenges in Illinois’ budget approach.
Source – Chicago Tribune Transit Budget Coverage
What This Means for Illinois Residents
The new budget will have tangible consequences:
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Expect higher costs on hotel alternatives like Airbnb.
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Smokers and vapers will see steeper prices.
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Bettors on apps like DraftKings may face additional fees.
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Businesses — even remote ones — face more tax burdens.
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Property owners lose relief with little notice.
While Gov. Pritzker previously promised no increases on “individuals or sales taxes,” the combination of new levies and removed exemptions paints a different picture.
Do you support the new tax measures to balance Illinois’ budget, or do you believe they unfairly burden working families and homeowners?
Sound off in the comments below on ChicagoSuburbanFamily.com — we want to hear your take.
