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05.31.2009 3:57 pm

Dating services, Internet connections, pet grooming all on tax list

Post-Dispatch Springfield Bureau
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UPDATE, 10:20 p.m. - This bill hasn’t been taken up in the House, and is apparently dead.

SPRINGFIELD, Ill. – Here is the list of the services that would be taxed in Illinois under HB174, the deficit-reduction bill that may or may not win final passage in the state Legislature today. (Read our earlier blog on the bill here.)

The plan just came together late yesterday, and the proposed income-tax hike has gotten the most attention – since it would be the biggest single expense for most people – but the list of services that would suddenly by subject to the state’s 6.25 percent sales tax becomes more sobering each time you read it.

Consider this hypothetical: If you use the Internet to join a dating service, get your shirt pressed for the date, present her with a professionally wrapped gift, and take her to a play . . . you’d pay this new service tax five times. (Pick her up in a limo, and it’s six times.)

Here are the services that would become taxable under the plan, as defined in the legislative language. Some of the definitions are pretty open-ended (“Information services”? “Cultural events”?), which has prompted concerns here that the taxes could be applied on very wide basis:

(1) Warehousing and storage (household and specialty goods)

(2) Travel agent services

(3) Carpet and upholstery cleaning services

(4) Dating services

(5) Dry cleaning and laundry, except coin-operated

(6) Consumer goods rental

(7) Health clubs, tanning parlors, reducing salons

(8) Linen supply

(9) Interior design services

(10) Other business services, including copy shops

(11) Bowling Centers

(12) Coin operated video games and pinball machines

(13) Membership fees in private clubs

(14) Admission to spectator sports (excluding horse tracks)

(15) Admission to cultural events

(16) Billiard Parlors

(17) Scenic and sightseeing transportation

(18) Taxi and Limousine services

(19) Unscheduled chartered passenger air transportation

(20) Motion picture theaters, except drive-in theaters

(21) Pet grooming

(22) Landscaping services (including lawn care)

(23) Income from intrastate transportation of persons

(24) Mini-storage

(25) Household goods storage

(26) Cold storage

(27) Marina Service (docking, storage, cleaning, repair)

(28) Marine towing service (including tugboats)

(29) Gift and package wrapping service

(30) Laundry and dry cleaning services, coin-operated

(31) Other services to buildings and dwellings

(32) Water softening and conditioning

(33) Internet Service Providers

(34) Short term auto rental

(35) Information Services

(36) Amusement park admission and rides

(37) Circuses and fairs — admission and games

(38) Cable and other program distribution

(39) Rental of video tapes for home viewing

6 comments

Comments are closed.

Ever=y body wants their states to pay for this or pay for that, though higher taxes no one wants to see, we also don’t want to see programs that are a benefit to residents stopped due to budget cuts or trimming to get a states budget balanced…unfortunately needed programs, the money needed to keep states running and roads, schools has to come from some where.

States also need to do much much better in watching the money they spend and tracking where it goes and who is getting it, know what I mean?

— James
5:01 pm May 31st, 2009

What, no tax on funeral expenses? Surely this profit center must have been over-looked by the Chicago politicians pandering to their welfare-receiving constituents.

— mississippi
6:47 pm May 31st, 2009

Yeah, as I suspected in my comment on your previous post, this is huge. “Other business services, including copy shops” could include literally anybody who provides services to businesses - lawyers, accountants, temporary service agencies, lawn services, and janitorial services. “Information Services” would cover anybody who performs any sort of service involving computers or software. “Other services to buildings and dwellings” could include pretty much any service at your home - electrician, plumber, lawn service … in fact, one might argue that even your homeowner’s insurance policy constitutes a service and would be taxed.

They have included some things and excluded others, with no rhyme or reason. Why should you have to pay a tax when your boat is towed, but not when your car is towed? Why single out “information services” but leave us guessing as to whether our CPA and attorney are subject to the tax?

Why do they beat up on certain industries? For example, they include “(1) Warehousing and storage (household and specialty goods)”, “(24) Mini-storage; (25) Household goods storage; (26) Cold storage” - that is, more than 10% of the enumerated items are in the self-storage industry, and three of those are just different industry terms for exactly the same thing. And was it necessary to include “(18) Taxi and Limousine services” as well as “(23) Income from intrastate transportation of persons”?

And what sort of idiots are these who list “(5) Dry cleaning and laundry, except coin-operated” and “(30) Laundry and dry cleaning services, coin-operated”? It’s really illustrative of what they REALLY should have done for this list:

(1) Everything

(2) Everything else

This change in the sales tax code is going to cost families a bundle. Not only will you be paying tax on lots of things which aren’t taxed today, business costs will be increasing substantially, which will be passed on in higher prices.

— Nick Kasoff
9:04 pm May 31st, 2009

Based on these and other proposed tax increases, it makes no sense for a private entity to start a business today. There are those who say that these increases in taxes are needed to fund budget deficits. Well then, if these increases are so great for us and the economy, why don’t they tax us at 100% because then it should make everything even better? Not!!! Let’s extrapolate and really show how high taxes will destroy this country and our economy. All these taxes will result in is ever greater size of government and more government intrusion in people’s personal lives.

— Dan S1
8:06 am June 1st, 2009

I urge Gov. Quinn to start the massive budget cuts now. Wake up residents in your state to what the truth is, and that is your state has no money. Once it hits residents in the wallet, they’ll wake up the legislature.

— Underground_Mensa
7:15 am June 2nd, 2009

What do you expect from a Democratic welfare state? Wake up people!!

— ksmith06
9:41 am June 2nd, 2009