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March 7, 2007
Proposed Gross Receipts Tax Could Mean
Significant Cost for Illinois Businesses
During a combined State of the State message and budget address earlier today, Illinois Governor Rod Blagojevich announced a plan to phase out the state's corporate income tax in favor of a new gross receipts tax on all agriculture, mining, manufacturing, construction, wholesale, retail and service activities. If passed by the state legislature, the tax could have a significant impact on your bottom line, costing Illinois businesses as much as $7 billion annually.
According to Crain's Chicago Business, "Officials representing big and small business, from Realtors to retailers, say the levies will damage them and their customers, and they’re gearing up for what may be one of Springfield’s biggest lobbying wars in years in an attempt to defeat the proposals."
Much Shelist encourages our clients and friends across Illinois to contact their state senator or representative to voice your opinion. As this important business story continues to develop, our attorneys will monitor the situation carefully and work with you to address emerging concerns.
If you have questions regarding the proposed gross receipts tax and how it may affect your particular business, please contact your Much Shelist attorney.
Circular 230 Notice.To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
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