Sangamon Sun

Starting July 1, Illinois introduces several new laws and tax increases as part of the Fiscal Year 2026 State Budget, which amounts to a record $55.2 billion. This budget was passed by Democrats in the spring.

Among the tax changes is an increase in sports betting taxes. A per-wager tax will now be $0.25 for the first 20 million bets, doubling to $0.50 thereafter. In response, companies like DraftKings and FanDuel have already increased costs for their users.

Short-term rental services such as Airbnb and Vrbo will now be subject to Illinois’ Hotel Operators’ Occupation Tax, affecting families traveling within the state. Additionally, there is a rise in wholesale tobacco taxes from 36% to 45%.

Several new laws are also coming into effect today:

The Small Single-Use Plastic Act prohibits hotels with 50 or more rooms from providing small single-use plastic bottles containing personal care products like soap and shampoo unless requested by guests. This law will expand to smaller hotels by January 1, 2026. Violations result in written warnings initially, with fines up to $1,500 for repeat offenses.

Public Act 103-0304 mandates that state agencies include data on non-binary or gender non-conforming individuals when collecting employment records.

Two laws related to birth certificates are introduced: Public Act 103-0682 waives fees for requests made by the Office of the State Guardian; Public Act 103-0948 allows parents to request a certificate of birth for stillbirths occurring at or after 20 weeks.

Beginning with the 2026–2027 school year, public schools must educate students on climate change effects under new legislation, pending funding from lawmakers.

The Access to Affordable Insulin Act reduces the out-of-pocket cost cap for insulin from $100 to $35 and offers a discount program for post-rebate purchases.

Eligibility for assisted living facilities is expanded under amendments to The Assisted Living and Shared Housing Act.

Public Act 103-0845 requires opioid antagonists like Narcan to be available in state agencies and staff trained in their use while offering legal protection under the Good Samaritan Act.

Under Public Act 103-1056, courts must provide foreign language interpreters at no cost when needed during trials involving self-represented litigants or low-income individuals.

A new law addressing sexual exploitation and prostitution mandates automatic sealing of eligible Class 4 felony convictions for prostitution if they qualify for expungement. It also requires new policies for officer conduct during related investigations and updates terminology regarding juvenile prostitution and other related terms.