The Gross Receipts Tax GRT The Goods

1
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 states
  citizens

2
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)

3
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

4
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

5
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

6
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

7
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 its 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

8
ITA POSITION ON HB 1795

• In February the construction industry changed
  its position to neutral from opposition,
  giving the bill a greater chance of passing
• ITA requested a meeting with the bills sponsor
  to ask that trucking be specifically exempted
  from the bill
• ITA met with sponsor, the Dept. of Labor, and
  bills 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 bills scope as it relates to
  trucking
• ITA will continue to seek full exemption

9
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

10
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