Peoria Standard

Illinois lawmakers are preparing for a veto session where several tax proposals are expected to be discussed. Illinois House Republicans have voiced concerns that these measures would increase the financial burden on families across the state.

Earlier this year, nearly $1 billion in new taxes were enacted, affecting areas such as sports betting, hotel and short-term rentals, cell phones, and tobacco. One major issue now facing legislators is a funding shortfall for Chicagoland’s transit agencies under the Regional Transportation Authority (RTA), with an estimated gap of up to $202 million. Democrats have indicated they may propose additional tax increases to address this deficit.

Among the proposals considered during the spring legislative session was a $1.50 delivery tax on each package delivered to homes statewide. Deputy Republican Leader Norine Hammond said, “The proposed delivery tax is a non-starter for House Republicans. Instead of reining in spending, Illinois Democrats want to put an additional burden on some of our most vulnerable populations who rely on home delivery services, such as the elderly, disabled, and fixed-income households. Democrats need to get their priorities straight. They should be working with us to reduce the high cost of living, not piling on more expenses.”

Other anticipated proposals include new fees related to green energy initiatives and surcharges on energy bills to fund battery storage projects or efficiency mandates. There is also discussion about reviving a service tax that would affect over 80 services—including hair salons, dry cleaning, car repair, landscaping, streaming services, plumbing, and home repair—which could impact small businesses and families throughout Illinois.

Deputy House Minority Leader Ryan Spain commented: “Illinois is already hemorrhaging families and businesses due to poor leadership in Springfield. An additional tax on essential services would only push more people out of our state due to the ever-expanding tax burden crushing Illinois taxpayers.” Spain has served as a Republican representative for Illinois’ 73rd House District since 2017.

House Minority Leader Tony McCombie added: “House Republicans are committed to lowering the tax burden on Illinois families. With the high cost of living in our state, there is simply no room for a tax hike. We need responsible spending and reasonable reform.”

The upcoming veto session will determine which—if any—of these proposed measures move forward.