As the year 2020 has officially come to the close, we look to 2021 with hope for better days ahead in the new year. But with the new year also comes changes to laws in Chicago. Among these are changes to the minimum wages, shared housing, extension of business relief, vehicle fuel and cloud tax, and automated speed enforcement.
Minimum Wage
On July 1, 2021, as part of an ordinance passed in 2019, Chicago’s minimum wage will increase to $15 an hour at large businesses and $14.50 an hour for workers at businesses with 20 or fewer employees. Additionally, on July 1, the minimum wage for tipped workers will increase to $9.00 an hour, with employees required to make up the difference if base wage plus tips do not equal $15.00 an hour.
Shared Housing
The City Council passed an ordinance in September 2020 that revised regulations governing the Shared Housing industry in Chicago. Under the reforms, starting on April 1, 2021, those who rent their residential units through Airbnb, HomeAway, or other similar platforms, will now need to apply directly with the Department of Business Affairs and Consumer Protection and pay a new $125 registration fee.
A statement released by Mayor Lori Lightfoot’s office explained the new regulations were established to “ensure public safety and accountability within the industry”
Extension of Business Relief
As all are aware the COVID-19 pandemic has hit businesses especially hard. According to the Mayor’s office, to help bring relief to struggling businesses the city is “extending critical relief efforts and renewal dates in to 2021”. Under these extensions all existing sidewalk cafes can continue to operate until May 1, 2021 without needing to renew their permits.
Additionally, all expired or expiring business and vehicle licenses between March 15, 2020 and June 15, 2021 will not need to pay a renewal fee until July 15, 2021.
Vehicle Fuel Tax and Cloud Tax
Starting January 1, 2021, a series of tax increases and fees came into effect. The vehicle fuel tax increased by $0.03 per gallon on non-aviation purchases. According to the Mayor’s office, to fill up a 12-gallon gas tank, motorists will see an increase of roughly $0.36. There will also be a 1.75 percentage point increase to the cloud tax, which, per a release from the Mayor’s office, is applied to “computer leases of cloud software and cloud infrastructure. This tax aligns with the tax imposed on all other lease, rental or use of rented, personal property currently taxed at 9 percent”.
Automated Speed Enforcement
Starting on Jan. 15, 2021 a 44-day warning period began for car owners caught speeding between 6 and 10 miles per hour over the speed limit in Automated Speed Enforcement (“ASE”) Children’s Safety Zones. Drivers caught during this period will receive a warning by mail. However, beginning on March 1, 2021, anyone driving in excess of 6-10 miles per hour over the speed limit in an ASE Children’s Safety Zone will receive a ticket. The fine for those going 6-10 MPH over the speed limit will be $35 and those going 11 miles or more over the speed limit will be fined $100.
If you have questions about these laws or any other new laws coming in 2021 contact, the attorneys at Rock Fusco & Connelly, LLC.