# Illinois Service Tax on the horizon



## ZamboniHDB (May 8, 2004)

Illinois Senate Bill 9 proposes a service tax on a wide range of landscaping activities including snow plowing and removal. A 5% tax will be imposed on the total invoiced amount and the business will be required to annually purchase a $75 registration certificate as well. This is the only "construction" trade being singled out for a service tax and it's estimated that 40% of this industry operates illegally by not paying workers' comp insurance in addition to not paying for business liability insurance. If those 'scab" businesses aren't already paying their fair share, they most certainly won't collect/pay a service tax.

Also included in SB9 is a 5% service tax for towing, automotive repairs, and most real property repairs like appliance, painting and plumbing services. Illinois is obviously running out of taxation options and Illinois residents need to contact their State Senator in Springfield. http://ilca.us9.list-manage1.com/track/click?u=8c98018104141fa974750f1b3&id=4e2bc85c43&e=9e30748ee7


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## framer1901 (Dec 18, 2005)

This was proposed in MI also in some form, I know it didn't happen though. Maybe someone knows more detail about what happened in MI


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## John_DeereGreen (Jan 2, 2011)

You guys don't collect sales tax on snow and landscape services already?


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## ZamboniHDB (May 8, 2004)

John_DeereGreen said:


> You guys don't collect sales tax on snow and landscape services already?


This is a proposed tax on service aka labor not goods or merchandise


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## pieperlc (Jan 4, 2005)

John_DeereGreen said:


> You guys don't collect sales tax on snow and landscape services already?


No, we don't at this time. This is nothing new in other states and I'm surprised it hasn't already happened in Illinois. We do work in Wisconsin also and collect a sales and use tax there for quite a few years. However, they consider snow a necessary service, not a luxury service so don't connect for plowing. All landscape maintenance, and plant/mulch installs. Walls and patios don't get taxed except for the materials.


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## John_DeereGreen (Jan 2, 2011)

Interesting. In OH anyone doing over a set dollar amount in landscape maintenance or installs, or snow and ice management must charge tax on the full amount of services rendered, materials and labor. I think it's like 5k minimum or something stupid low.


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## ZamboniHDB (May 8, 2004)

John_DeereGreen said:


> Interesting. In OH anyone doing over a set dollar amount in landscape maintenance or installs, or snow and ice management must charge tax on the full amount of services rendered, materials and labor. I think it's like 5k minimum or something stupid low.


In Illinois the sales tax rate for tangibles can vary based upon local level taxation from the county or municipality. The state's base rate is 6.25% however if you're in the city of Chicago the total rate is 10.25% and if you're in Marengo the total rate is 7%. It's just a matter of time before the various counties and municipalities add onto the 5% service tax if it becomes law. This is only the tip of the iceberg as to the various taxing schemes that are allowed in Illinois.


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## John_DeereGreen (Jan 2, 2011)

It does vary by county here. From 6.5 to 8 or 9. Plus some counties have a "sugar tax" that gets charged on sugar drinks, candy, etc.


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## Mark Oomkes (Dec 10, 2000)

The Michigan one was a load of crap that 2 penny Jenny was trying to get through, along with the gutless ahole legislators. 

It would have required yard monkeys with 12 month contracts to collect the tax, but not say a construction company who plowed on the side. 

My plan was not to collect as I have separate contracts for yard monkey work and snow monkey work. 

I don't recall, but it was going to be on haircuts and all kinds of other BS as well. 

Someone had enough brains to not pass it just in time.


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## John_DeereGreen (Jan 2, 2011)

Mark Oomkes said:


> The Michigan one was a load of crap that 2 penny Jenny was trying to get through, along with the gutless ahole legislators.
> 
> It would have required yard monkeys with 12 month contracts to collect the tax, but not say a construction company who plowed on the side.
> 
> ...


That's about ignorant.

Either it's taxable or it isn't once you sell a certain dollar amount, or its taxable or isn't period.


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## framer1901 (Dec 18, 2005)

Jenny's gone now thankfully!


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