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

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)

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

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

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

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

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

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

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

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