Illinois – IL considers applying sales taxes to more services

The Chicago Sun Times
CHICAGO NEWS 03/12/2017, 10:18 am

SPRINGFIELD — If you get your nails done at a salon or have your lawn mulched next spring, the service could be taxed under a plan Illinois lawmakers are considering to help fill a multibillion-dollar hole in the state budget.

The idea comes as part of a proposal to increase state revenue tied to a Senate compromise intended to break the state’s two-year stalemate over an annual spending plan. The “grand bargain” stalled last month before the revenue measure came to a vote.

But lawmakers say they’ll keep working on the plan.

The provision would tax eight service categories at the same 6.25 percent rate applied to most sales in Illinois. These newly taxable services constitute the second-largest source of annual funding in the proposal after the revenue bill’s income tax increase.


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