Illinois residents are less financially burdened through new laws that took effect in August.

As inflation continues to raise the cost of everyday goods and services, most Americans are feeling added financial stress.

In this article, I will tell you how you can save money and earn more when the Illinois government temporarily eliminated taxes and fees, and relaxed rules on buying and selling here.

Here are the seven new laws that will help Illinois residents. 

Grocery Tax Suspension Public Act 102-0700

We previously discussed how living in Chicago is expensive, particularly because of the huge tax burden.

And one of these tax burdens is Illinois’ grocery tax.

Before July 2022, the state charged a 1% tax on groceries, medicine, other drug items, and hygiene products.

Other purchases are charged at a higher sales tax rate of 6.25%.

Public Act (P.A.) 102-0700 suspended the state's 1 percent (1%) low rate of sales and use tax on retail sales of groceries normally taxed at this rate from July 1, 2022, through June 30, 2023.

This law was part of the $46.5 billion state budget plan that was passed earlier this year with the aim at providing relief to families struggling with rising costs of goods and inflation.

From July 1, 2022, through June 30, 2023, the state of Illinois sales and use tax on groceries will be 0%.

Groceries taxed at the low rate include food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult-use cannabis, soft drinks, candy, and food that has been prepared for immediate consumption). Drugs or medicine will not be included in this tax suspension.

Minimum Wage Increases in Chicago and Cook County

Another immensely helpful new law is the Minimum Wage Increase (Public Act 101-0001) Law.

Illinois’ minimum wage is up to $10 per hour from $9.25. The minimum wage went up by $1, from $8.25 per hour, at the start of the year. Workers will get another $1 per hour raise each Jan. 1 until the minimum wage hits $15 per hour in 2025.

Under this new law, there are provisions for employers to count gratuities to offset wages for workers, such as food servers, who regularly earn tips.

Tipped employees may be paid 60% of the hourly minimum wage.

However, those workers must still earn the minimum wage after receiving tips, or the employer will make up the difference.

In Chicago, the minimum wage increased to $15 per hour.

The $15 minimum wage is for large businesses that employ 21 or more workers, and $14.50 for smaller businesses.

For tipped workers, the rates also increased - to $9.24 for large employers and $8.70 for smaller businesses.

Teens under the age of 18 got a new minimum wage of $12 for non-tipped employees and $7.20 for tipped employees.

In the rest of Cook County, the minimum wage went up to $13 per hour, except in the more than 100 municipalities that have opted out of the county ordinance.

Beginning in 2023, it will go up based on the rate of inflation.

Prescription Drug Price Transparency (SB 1682)

Thanks to this new law, you can do price checks for your medicine more effectively.

SB 1682 amended the Pharmacy Practice Act and removed limits imposed on consumers looking to find out the retail price of a brand name or generic prescription drug.

Pharmacies must post a notice informing customers they can request the price of name-brand or generic prescriptions, giving them more options to help cover the cost of medicine.

Hayli's Law (SB 0119)

Kids can now earn money without the fear of getting shut down by public health authorities!

In Hayli's Law, everyone under the age of 16 can operate lemonade stands and sell non-alcoholic beverages without needing a permit from authorities. 

Free from Fees after Losing a Loved One (HB 1022)

When a loved one passes, families already have enough to worry about, from funeral services to estates and more.

Extra hassle when tying up the loose ends of life isn't appreciated or needed.

This new Illinois law ends early termination fees on utility contracts for deceased residents to make setting affairs in order that much easier.

College athletes can be paid for use of their image and likeness

If you’re a student-athlete in Illinois, you can now take advantage of the Senate Bill 2338, the Student-Athlete Endorsement Rights Act, where you can hire agents and sign endorsements in order to profit off your own name, image and likeness.

And yes, this means extra income from modeling or promoting products.

But you can’t endorse things like gambling or sports betting, controlled substances, cannabis, tobacco, alcohol, nicotine, performance-enhancing supplements, or adult entertainment.

Here athletes are not compensated not by their schools for their athletic performance.

Instead, they are free to make deals for profit on their own, by hiring agents. 

“With this law, Illinois will lead the United States in giving student-athletes the opportunity to sign endorsement deals of their own, joining a growing coalition of states leading the fight for innovation in our modern collegiate sports system,” Illinois Governor Pritzker said.

This Illinois law is meant to encourage student-athletes to choose Illinois for college.

It applies to both public and private colleges and universities. Illinois student-athletes can promote anything so long as they are consistent with the values or mission of a postsecondary educational institution.

Illinois won't suspend driver's licenses over tickets or fines

Lastly, Illinois will officially no longer suspend driver's licenses over the inability to pay fines for things like traffic tickets, red light camera tickets, or parking tickets.

That's thanks to a provision of a sweeping criminal justice and police reform measure signed into law in February that also brought an end to cash bail in Illinois, requires new police training policies in areas like crisis intervention and de-escalation tactics, mandates that all police officers wear body cameras by 2025, bans police chokeholds and more.

Conclusion

Inflation is real and it’s really tough for practically everyone in the world. And fortunately, for us living in the Land of Lincoln, we are getting some help. You can enjoy fewer taxes, fewer fees and fines, increased wages, more price transparency, and more income opportunities.

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