A new proposal is making the rounds in Springfield that would establish a new sales tax on services across the state. This new service tax would cover almost all services consumers rely on, ranging from streaming services to dry cleaning, haircuts to vehicle repairs, and everything in between. Proponents are pushing the new tax as a bailout to fill the void for years of mismanagement in the Chicago region’s mass transportation system, which is facing nearly a billion-dollar budget shortfall in 2026.
“It’s just wrong that rather than spending within our means and establishing a budget rooted in reality, Democrats seem focused on raising taxes on services we use every day to cover their spending spree,” said Rep. Charlie Meier. “At a time when high prices are still hurting family budgets and stifling small businesses, the last thing Illinoisans need is a new tax on the basic services we all rely on. Even worse, if this new tax is adopted at 6.25%, it would be the highest service tax in the country. If this passes, we will see more Illinoisans flood out of our state in search for better lives.”
The 6.25% proposal being floated in Springfield would be the highest tax of its kind in any state in the nation. Depending on the analysis, Illinois already consistently ranks as having one of the highest overall tax burdens of any state in the country.
Meier also noted that over 73% of the Illinois economy is service-producing industries, and most are not currently set up to pay sales tax. Rushed implementation under this proposal will lead to many businesses choosing not to operate in Illinois.
The tax would include, but not be limited to, the following services:
- Aircraft lease or rental (≤ 60 days)
- Alteration and garment repair
- Armored-car services
- Bank & financial-service charges
- Barber and beauty services
- Battery, tire, and allied services
- Boat, camera, and furniture repair
- Campgrounds and golf-course dues
- Carpentry, plumbing, electrical, and HVAC labor
- Communication and telecommunication services
- Dance, dating, and massage services
- Dry cleaning and laundry services
- Employment and executive search fees
- Extermination, landscaping, lawn care, and tree removal
- Information and software services, including SaaS
- Janitorial and building maintenance
- Motor-vehicle, RV, boat, bicycle, and motorcycle repairs or rentals
- Parking, towing, and personal transportation (ride-share, limousine, etc.)
- Pet grooming and veterinary services (non-medical)
- Photography, video-game tournaments, and streaming/pay-TV
- Security, detective, and armored-car services
- Swimming pool and household-appliance maintenance
- Welding, pipe fitting, well-drilling repair, and more.
For a complete list of the services included in the tax proposal and to express your opposition to this major tax expansion, go to StopILServiceTax.com.