Home Builders Oppose SB09 New & Higher Taxes on Home Repair & Maintenance The Home Builders Association of Illinois opposes the passage of SB09, the omnibus taxation bill within the Grand Bargain, and respectfully requests a NO Vote on its consideration. SB09 will increase taxes & fees on home repair shops five times with one vote, probably a record even for Illinois [Personal & Corporate Income Tax, Business Opportunity Tax, a first-time Excise Tax, and a first-time $75 registration fee to the Illinois Dept. of Revenue). SB09 is unfair, complicated and narrow-based. Article 15 of SB09 imposes a new EXCISE TAX on the repair and maintenance of homes located here in Illinois. The 5% sales tax would cause a decline in work for repair & maintenance by about $30 million per year. This impact includes: $27 million less income for Illinois workers, 327 fewer jobs in Illinois, $5 million less in revenue for the state government and local governments within the state, partially offsetting the increase in revenue collected under the new tax.* Home Repair Businesses will not only get hard hit by the new taxes, they will also be hit with very confusing language on how to pay for these taxes. Sole Proprietorships and Partnerships will struggle with the payment options which will hinder customer service while conforming to state regulations. The Service Tax on Home Ownership is a narrow based tax intended to usher in a new form of taxation for Illinois, sales taxation on the service industry. But the five sectors of the economy hit by this proposal may, or may not be, joined later by other service industries later. This would mean a hardship for a few economic sectors and a relatively small revenue stream for the state. In the meantime, the home repair business will also get socked with other tax increases covered by SB09; Personal & Corporate Income Tax Increases; the Business Opportunity Tax: and, the fees paid annually to the Dept. of Revenue to administer collection of the EXCISE TAX. 16
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