Sangamon Sun

As the Illinois legislative session approaches its conclusion, the debate over a proposed service tax intensifies. With only nine days left before the state budget deadline on May 31, House Republicans have expressed strong opposition to any budget that includes tax increases. This comes after the Governor’s Office of Management and Budget reduced revenue projections for fiscal year 2026 by over $500 million.

The new proposal from Illinois Democrats aims to introduce a sales tax on services statewide. This would affect a wide range of consumer services, including streaming platforms, dry cleaning, haircuts, and vehicle repairs. The proposal is intended to address financial shortfalls in Chicago's mass transportation system, which faces a nearly billion-dollar deficit in 2026.

State Representative Mike Coffey criticized the proposal: “Proposals of raising taxes again on working families is outrageous when our state is in dire need of policy reform that offers taxpayers relief,” he stated. Coffey emphasized the need for policies that keep families in Illinois without imposing high taxes.

Dean Graven, owner of Dean’s Landscaping and Handyman Services and former president of the Springfield Home Builders Association, highlighted potential impacts on housing costs: “A new service tax will have a terrible impact on housing affordability in Illinois and will serve to stifle new construction rates,” Graven remarked. He noted that additional taxes on essential home-building services would ultimately be passed onto consumers.

The proposed tax encompasses more than eighty services such as car washes, landscaping, fitness centers, pest control, and dog grooming. Opponents are encouraged to visit StopILServiceTax.com for more information and to voice their concerns.

Rep. Coffey supports legislation aimed at reducing taxes in Illinois as part of efforts to alleviate financial burdens on residents.