![Page 1: The Gross Receipts Tax (GRT) “The Goods & Services Tax”](https://reader036.vdocuments.us/reader036/viewer/2022082414/56813a23550346895da200dc/html5/thumbnails/1.jpg)
The Gross Receipts Tax (GRT) “The Goods & Services Tax”
• GRT Proposal– 1.95% tax on all Gross Receipts generated from services (ie:
trucking) Changed this weekend from 1.8%.– 0.85% tax on all Gross Receipts generated from manufacturing
Changed this weekend from .5%.
• Tax Fairness Plan – 3% payroll tax on all employers with 10 or more employees base
on the level of health insurance provided
• It is estimated that the GRT would generate more than $9 billion/yr in business taxes– IL businesses paid $26.7 billion in taxes in Fiscal Yr 2006– The proposal represents the largest tax increase in IL history
• The tax is to be used for health care for the uninsured, $10 billion for schools & $12 billion for pensions.
• ITA opposes the GRT & Tax Fairness Plan– It is unfair to IL businesses and the state’s citizens
![Page 2: The Gross Receipts Tax (GRT) “The Goods & Services Tax”](https://reader036.vdocuments.us/reader036/viewer/2022082414/56813a23550346895da200dc/html5/thumbnails/2.jpg)
ITA OPPOSITION TO THE GRT
• GRT taxes business income even without a profit (before salaries, businesses expenses, other taxes)
• Products manufactured in IL will be priced out of the market
• High tax costs will drive business & investment out of IL (poor business climate, punitive environment & high taxes)
• Will lock out new start up or innovative companies in IL
• The tax is punitive to high-volume, low margin businesses (agri-business)
• New taxes will be paid through the production & distribution chain (consumer pays the ultimate cost)
![Page 3: The Gross Receipts Tax (GRT) “The Goods & Services Tax”](https://reader036.vdocuments.us/reader036/viewer/2022082414/56813a23550346895da200dc/html5/thumbnails/3.jpg)
ITA OPPOSITION TO THE GRT
• Locally produced pharmaceuticals & food face higher taxes in IL
• The GRT is really a service tax (from legal assistance to haircuts)
• Opposition to this tax is growing and businesses are actively engaged in getting the message out.
• Legislators are concerned that the tax increase does nothing for tax reform.
• ITA is part of a broad coalition opposing the GRT & is working to inform lawmakers of the negative impacts of the GRT for IL businesses
Contact your state representative and strongly urge opposition to GRT
![Page 4: The Gross Receipts Tax (GRT) “The Goods & Services Tax”](https://reader036.vdocuments.us/reader036/viewer/2022082414/56813a23550346895da200dc/html5/thumbnails/4.jpg)
UPDATE – TRUCKING FEES & MOTOR FUEL TAX INCREASE
• SB 268 would create the IL Diesel Emissions Reduction Act & place a 10% surcharge on trucks registered in IL (Jacqueline Collins D-Chicago)
• It would place a 2.5% surcharge on the sale or lease of most trucks in IL
• It would place a 1.0% surcharge on the sale/lease/rent of any off-road diesel powered vehicles in IL
• The bill passed the Senate Energy & Environment Committee & is on the floor of the Senate
Contact your State Senator to oppose SB 268
Projected to nearlydouble
![Page 5: The Gross Receipts Tax (GRT) “The Goods & Services Tax”](https://reader036.vdocuments.us/reader036/viewer/2022082414/56813a23550346895da200dc/html5/thumbnails/5.jpg)
COMMERCIAL DISTRIBUTION FEE (CDF) UPDATE
• HB 1113 is currently on hold for the time being
• Rep. Careen Gordon (D-Coal City) would fully eliminate the CDF saving some $400/year on registration
• It did not pass out of the House Revenue Committee before deadline and thus is “on hold”
• Lawmakers have indicated to ITA that it is still on hold despite the House deadline
$232
![Page 6: The Gross Receipts Tax (GRT) “The Goods & Services Tax”](https://reader036.vdocuments.us/reader036/viewer/2022082414/56813a23550346895da200dc/html5/thumbnails/6.jpg)
PREVAILING WAGE UPDATE
• HB 1105 (Careen Gordon D-Coal City) amends the Prevailing Wage Act to eliminate the prevailing wage exemption for aggregate haulers on public works projects
• It would redefine the work site to include facilities located near the work site
• ITA is STRONGLY opposed to HB 1105• March 28 the IL House voted & the bill fell
short by just ONE vote with 59
• The sponsor placed the bill on the order of “consideration postponed” to bring it up for another vote.
Contact your state representative to OPPOSE HB 1105
![Page 7: The Gross Receipts Tax (GRT) “The Goods & Services Tax”](https://reader036.vdocuments.us/reader036/viewer/2022082414/56813a23550346895da200dc/html5/thumbnails/7.jpg)
Classification of Independent Contractor HB 1795
• Creates the Employee Classification Act
– An individual performing services for a contractor is deemed to be an employee of the employer unless it’s shown that
• The individual has been & will continue to be free from control or direction over the performance of the service for the contractor
• The service performed by the individual is outside the usual course of services performed by the contractor
• The individual is engaged in an independently established trade, occupation, profession or business
• The individual is deemed a legitimate sole proprietor or partnership
![Page 8: The Gross Receipts Tax (GRT) “The Goods & Services Tax”](https://reader036.vdocuments.us/reader036/viewer/2022082414/56813a23550346895da200dc/html5/thumbnails/8.jpg)
ITA POSITION ON HB 1795
• In February the construction industry changed it’s position to “neutral” from opposition, giving the bill a greater chance of passing
• ITA requested a meeting with the bill’s sponsor to ask that trucking be specifically exempted from the bill
• ITA met with sponsor, the Dept. of Labor, and bill’s opponents in early March
• The exemption was rejected
• The sponsor agreed to amend the bill by changing the definition of “construction” to include
• moving construction related materials on the job site or to/from the job site
• ITA narrowed the bill’s scope as it relates to trucking
• ITA will continue to seek full exemption
![Page 9: The Gross Receipts Tax (GRT) “The Goods & Services Tax”](https://reader036.vdocuments.us/reader036/viewer/2022082414/56813a23550346895da200dc/html5/thumbnails/9.jpg)
UNIFORM SPEED LIMIT SB 540
• SB 540 (sponsored by Sen. John Sullivan – D-Rushville), was approved by the IL Senate 45 – 10
• The bill would eliminate Illinois’ split speed limit between cars & trucks on rural interstate highways
• It therefore allows truckers’ logs to reflect the higher speed limit in IL
• The bill will go to the IL House for consideration next
![Page 10: The Gross Receipts Tax (GRT) “The Goods & Services Tax”](https://reader036.vdocuments.us/reader036/viewer/2022082414/56813a23550346895da200dc/html5/thumbnails/10.jpg)
UNIFORM 80,000- POUND ACCESS HB 918
• Bill HB 918 passed out of committee & is on the floor of the House (Bill Black R-Danville)
• Provides uniform 80,000 lb access across the state
• IL remains the ONLY state in the Mid-west to adhere to the 73,280 lb limit on non-designated highways
Modernize truck fleet:
Scrap dirty old trucks
Retrofit all other pre-2007
trucks