Senator Rutherford warns Illinoisans about new service taxes


PONTIAC, IL - The State Senate recently voted in favor of the largest income tax increase in Illinois history, but that pales in comparison to what else was in the legislation, according to State Senator Dan Rutherford (R-Pontiac). The bill, HB 174 Senate Amendment 2, also created, for the first time in Illinois, a tax on services.

“The new tax on services would be on such services as cable TV, dry cleaning, bowling, pet grooming, Internet service, gym memberships, sports tickets and diaper service. It would take billions of dollars out of the wallets and purses of Illinoisans and cause thousands of businesses to start collecting and remitting this new tax to the state,” noted the Senator who voted against the legislation.

Rutherford added, “Most people comprehend when something is going to go up 67 percent, especially their income taxes. They may not like it, but they know what it is. The Service Tax is much more of a ‘stealth tax.’ It would be similar to a sales tax on products and would definitely increase the price of those services.”

“With the current financial situation our economy is in, now is not the time for government to ask taxpayers for more money through an increased price in their services,” Rutherford explained. “Once a new tax on services is established, it will be easy to add even more services to the list of hundreds. It could easily soon include barbers, beauticians and auto repair.

The Illinois Senate has passed the Service Tax Legislation with all Democrat votes. It has not yet been voted on in the House of Representatives, but could be acted upon this summer.

“The debate on raising the income tax has received much of the media attention, but a new tax on services would permanently change the landscape of taxing opportunities in our state. The public needs to be aware,” emphasized the Senator.

Senator Rutherford has posted the list of hundreds of services that would be impacted, on his Web site www.DanRutherford.com

As landlords we are “lucky” that rents are not included in HB174 Senate Amendment 2. But don’t think for 1 second that we dodged a bullet. Just a few things that could be taxed if this bill passes are: landscaping services, snow plowing services, tree trimming/removal services, coin-op laundry, internet service providers, carpet cleaning, cleaning services, duct cleaning, chimney sweeps, trade fairs, conventions, self storage units, and many more that will directly effect your business and your bottom line.

Now if you have a day off and want to take a train ride to the city to see a play, or Cubs/Sox/Bears/Bulls/Blackhaws and you have to take a city bus or cab ride, your being taxed on all if it. Want to pick up a DVD at Blockbuster for a nice quiet evening at home? Taxed!! Member of a health club? Taxed! Have a personal trainer at that club? Taxed! Need something dry cleaned? Taxed! Want to go get your hair cut? Taxed!!! Ladies want a day at the spa? Taxed!!! The list is 29 pages long. If this is making you sick, they are going to tax your home hospital bed rental and wheelchair. Oh and if your feeling taxed to death, don’t worry they’re taxing the hearse they are taking you out in.

This bill is has passed the senate but has not passed in the house yet. Call your representative today and let them know you pay enough in taxes, its time to stop taxing Illinoisans to death.

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