Hold onto your wallets if you live in Illinois. The Illinois senate has approved one of the largest income tax increases, ever, along with a bunch of other new taxes.

Senate Bill 9 was approved in the Illinois senate by a vote of 32-26. Your income tax you pay, if approved by the Illinois house and the signed by Illinois Governor Rauner, would increase by 32% . The rate would go from 3.75 %  to 4.95 %, as part of ongoing budget negotiations in Springfield.

To make matter worse, the income tax is retroactive to Jan 1st. So, that means you will owe the state money on your income you already received and spent.

You will also pay a 6.25 % service sales tax on :

  • dry cleaning and laundry
  • storage units
  • vehicle maintenance
  • tattoos and piercing

This version of the bill that was passed, will not include a proposed sales tax on home maintenance services, landscaping and other personal services that were originally in the plan.

Rockford Area Senator Dave Syverson (R) said:

Disappointed that Senate Democrats passed a large tax increase with no reforms even worse made it retroactive back to January 1st. / I did NOT support.

 

All four of our area Illinois State senators voted against the tax increase.

  • Sen Bivens (R – Dixon)  Voted NO on the tax increase
  • Sen Syverson (R – Rockford) Voted NO on the tax increase
  • Sen Stadelman  (D – Rockford) Voted NO on the tax increase
  • Sen Altholf (R – McHenry) Voted NO on the tax increase

Here is how the entire Illinois Senate voted:

ILGA screen capture

It should be noted that only Democrats voted in favor of the tax increase. A handful of Democrats voted against it. ALL Republicans voted against the tax increases. Illinois is quickly becoming a very expensive place to live in.

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