The SBAC championed legislation that provides small business owners and advocates with an easier way to review Illinois regulations and make their voices heard. The Regulatory Flexibility Program provides notice and analysis of new state regulations that may impact small businesses.
This page provides a synopsis of proposed regulations pertinent to the small business community. We will keep this page updated, so check back frequently. Please do not hesitate to reach out to Aidan (aidan@sbacil.org) with any questions, including on how to post a public comment or request a hearing on a specific regulation.
For the sake of brevity, we will not include every regulation, nor will we analyze every provision for some of the lengthier rules. For those who are interested in more information, we recommend this document.
What is changing:
Illinois charges a 5% tax on hotel operators and conference centers. This rule clarifies that short-term rentals and fees charged by Airbnb, Vrbo, and other hosting platforms are also subject to this tax. Traditional hotels and bed and breakfasts are already subject to this tax.
Who is impacted:
Individuals and business owners who rent their property on a short-term basis.
How to engage:
Submit questions and comments by April 27:
Request a small business impact analysis:
What is changing:
The Illinois Department of Revenue (DOR) can deny a retailer’s certificate of registration if any of the owners, partners, or LLC/corporation members have failed to file required tax returns on time, or are currently in default on taxes or fees owed to DOR.
Additionally, when deciding whether a retailer must post a surety bond to obtain a certificate of registration, DOR will consider whether any owner, partner, or member is in default on a tax obligation or has had a registration revoked in the past five years.
Who is impacted:
Retailers applying for a certificate of registration along with their owners, partners, and members.
How to engage:
Submit questions and comments by April 27:
Request a small business impact analysis:
What is changing:
Illinois retailers subject to sales tax must display their certificate of registration that is visible to the public or customers. Retailers with a physical location in Illinois can post it in-store. Retailers without a physical presence must display it online or include it with printed materials sent to Illinois customers.
Who is impacted:
All retailers that pay Illinois sales taxes.
How to engage:
Submit questions and comments by April 27:
Request a small business impact analysis:
CEO.RegFlex@illinois.gov
What is changing:
Illinois provides a sales tax exemption for vehicles used to transport passengers or goods across state lines. A new rule clarifies that this interstate transportation exemption does not apply to vehicles used for Uber, Lyft, or other app-based ride share services.
Who is impacted:
Sole proprietors who drive for Uber and Lyft.
How to engage:
Submit questions and comments by April 27:
Request a small business impact analysis:
What is changing:
Illinois will now assume that vehicles purchased in the state after June 16, 2025, by out-of-state LLCs with at least one Illinois-based owner are subject to sales tax. Buyers can avoid the tax if they show that the vehicle will be kept and used in another state.
Who is impacted:
LLCs registered out of state with Illinois-based owners.
How to engage:
Submit questions and comments by April 27:
Request a small business impact analysis:
What is changing:
Retailers who sell building materials that will be used in construction at a DCEO-certified quantum computing campus will no longer need to pay sales tax on those materials. If the same sale already qualifies for another tax deduction or credit, the retailer cannot claim this quantum campus deduction for that sale.
Who is impacted:
Retailers who sell building materials.
How to engage:
Submit questions and comments by April 27:
Request a small business impact analysis:
What is changing:
Cook County imposes a 3-cent-per-gallon fuel tax on businesses selling motor fuel for cars or boats. Previously, the tax applied to all businesses in a municipality, even if only part of it was in Cook County. Under this rule, the tax will only apply to portions of the municipality that are within Cook County.
Who is impacted:
Businesses that sell motor fuel in a municipality that is partially within the boundaries of Cook County, but who are not located in Cook County.
How to engage:
Submit questions and comments by April 27:
Request a small business impact analysis:
What is changing:
The Illinois Liquor Control Commission (ILCC) has updated its rules to reorganize, clarify, and modernize existing regulations. The proposed rule will also update education programs for vendors and servers. Given the breadth of the update, we have not summarized specific provisions here. Pages 15-78 and pages 232-242 of this document list the existing regulations, and pages 79-231 list the proposed regulations.
Who is impacted:
Business owners who manufacture, distribute, or sell alcoholic beverages.
How to engage:
Submit questions and comments by April 20:
Request a small business impact analysis:
What is changing:
Illinois requires interpretive language assistance in administrative hearings. Under this rule, individuals will now be notified of these services in their initial hearing notice, which must include a notice in multiple languages, including Spanish, Arabic, Cantonese, Mandarin, Gujarati, Korean, Polish, Russian, Tagalog, Urdu, Ukrainian, and Vietnamese.
Additionally, under this rule, businesses or professionals who fail to maintain required workers’ compensation insurance or fail to pay fines or honor settlements related to workers’ compensation may have their license denied, suspended, or revoked.
Who is impacted:
Individuals who participate in administrative hearings, along with individuals and businesses licensed by IDFPR.
How to engage:
Submit questions and comments by April 6:
Request a small business impact analysis: