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Hikes to minimum wage and gas tax, new state snake and rock among changes taking effect Jan. 1

Debate around the proposed end of cash bail in Illinois on Jan. 1 dominated the political discourse during this fall’s political races and is now the subject of a court battle, but it’s just one of about 200 laws scheduled to take effect in the new year.

From a pay bump for low-wage workers and a tax hike at the gas pump to a new official state snake and rock, here’s a look at what kicks in as the calendar turns to 2023.

Minimum wage increase

For the fourth straight year, workers 18 and older who earn minimum wage in Illinois will see their pay rate go up on Jan. 1, with a $1 increase to $13 per hour.

The annual increases are the result of a measure Gov. J.B. Pritzker signed into law in 2019, when the minimum wage was $8.25 per hour, that in steps will raise pay to $15 per hour in 2025.

In Chicago, the minimum wage for employers with more than 20 workers, which is tied to inflation, went up to $15.40 per hour on July 1 and will increase again this year by 2.5% or the rate of inflation, whichever is lower.

Cook County has set a minimum wage of $13.35, though most county municipalities have opted out. Those municipalities will still be governed by the state minimum wage.

Gas tax increase

After a six-month election-year reprieve, drivers will see taxes go up at the pump twice in 2023.

The first hike, on New Year’s Day, will be an increase of 3.1 cents, to 42.3 cents per gallon.

Under a 2019 measure that doubled the gas tax to help pay for Pritzker’s $45 billion Rebuild Illinois construction program, the tax is supposed to increase each July based on the rate of inflation.

But faced with soaring prices for gas and other necessities during what was expected to be a tough election year, Pritzker and the Democratic-controlled legislature pushed off last July’s gas tax hike until after the November balloting.

The move was dismissed by Republicans as an election year gimmick and opposed by gas station owners who were required to post stickers on their pumps notifying drivers of the pause.

Another component of the tax relief plan, a suspension of the 1% sales tax on groceries, remains in effect for another six months.

The main permanent aspect of the plan kicks in Jan. 1: an increase and expansion of eligibility for the earned income tax credit for low- and moderate-income workers.

The credit, which lowers tax bills and often produces refunds for those who qualify, is increasing by 2 percentage points and will be available to childless adults ages 18 to 25, people 65 and older, and immigrants who were not previously eligible.

Anonymous police complaints

Bail reform isn’t the only provision of the SAFE-T Act, the sweeping criminal justice legislation that was signed into law last year, that is taking effect on New Year’s Day. Also new as of Sunday is a law that allows for the investigation of a wider range of anonymous complaints against police officers.