Stop Illinois from Imposing America’s Highest Service Tax The pending legislation would slap the full 6.25 % (plus local add-ons) on more than 80 distinct service categories, from barber shops and dry cleaners to Software-as-a-Service subscriptions and janitorial contracts.
At the proposed 6.25% statewide rate, Illinois would edge past West Virginia’s 6% to become the highest statewide rate applied to such a broad range of services anywhere in the United States.
A service tax will not only burden consumers, but would disproportionately impact service based small businesses and startups.
From Illinois Policy
Illinois lawmakers are looking to collect $2.7 billion statewide by expanding sales taxes from mainly goods to many services such as streaming services, rideshares, gym memberships, car repair and more.
Members of the Illinois General Assembly said their Democratic peers are in stealth mode trying to pass the massive tax increase before adjournment May 31. They are claiming the money is needed to solve Chicago’s Regional Transit Authority fiscal crisis…read more.
Illinoisans would find themselves paying sales taxes on:
- Netflix and streaming services.
- Rideshare services such as Über and Lyft.
- Gym memberships.
- Barbershops and beauty salons.
- Car washes and car repair.
- Plumbing, electrical and other repair.
- Lawn care and landscaping.