New Illinois Laws and Tax Changes Taking Effect July 1, 2025

Marisol Vega
Published On:
New Illinois Laws and Tax Changes Taking Effect July 1, 2025

ILLINOIS — Several new laws and regulatory changes will go into effect across Illinois starting July 1, 2025, impacting everything from fuel prices and rental agreements to hotel operations and overdose response training.

These laws, passed during the 2024 and 2025 legislative sessions and signed by Governor J.B. Pritzker, represent the second wave of state reforms following earlier updates that began on January 1.

1. Motor Fuel Tax Increasing Again

Illinois already ranks among the highest in the country for fuel taxes — and it’s about to climb even higher.

Starting July 1:

  • Gasoline tax will rise from 45¢ to 48.3¢ per gallon

  • Diesel fuel tax will increase from 54¢ to 55¢ per gallon

The hike is part of the state’s annual inflation-based increase under the infrastructure funding law.
More on Illinois fuel tax

2. Plastic Hotel Bottles To Be Banned

Senate Bill 2960 prohibits hotels with 50 or more rooms from providing small, single-use plastic toiletry bottles (under 6 ounces). This includes items like:

  • Shampoo

  • Conditioner

  • Soap

The goal is to reduce plastic waste in hospitality settings.

  • Effective date: July 1, 2025

  • Smaller hotels (under 50 rooms) have until January 1, 2026, to comply
    Read the bill text here

3. Changes To Sales Tax On Leased & Rented Goods

Under House Bill 4951, sales tax policies for leases and rentals will be restructured.

Previously:

  • Lessors paid tax at the time of purchase and didn’t charge tax on lease payments.

Under the new law:

  • Lessors can claim a resale exemption at purchase.

  • Sales tax will instead be applied to lease or rental payments.

This also affects licenses for certain computer software.
Bill HB 4951 – Official Language

4. State Employees Will Be Trained On Opioid Overdose Reversal

House Bill 5028 requires the state to provide mandatory training for government employees in the use of opioid antagonists such as Narcan (naloxone).

The goal is to improve the state’s emergency response capabilities amid the ongoing opioid crisis.

More about HB 5028

Do you think these changes will help or hurt Illinois residents?
Share your thoughts with us on ChicagoSuburbanFamily.com or drop your opinion in the comments section.

Marisol Vega

Marisol Vega

Marisol writes about how city decisions affect everyday people. From housing and schools to city programs, she breaks down the news so it’s easy to understand. Her focus is helping readers know what’s changing and how it matters to them.

Leave a Comment