Operations

Possible Tax Increase for Illinois Operators

LCT Staff
Posted on April 28, 2003
NAPERVILLE, Ill. – Limousine operators in Illinois might soon see another tax day, even though April 15 is a long way off. That’s because Gov. Rod Blagojevich, in an attempt to help resolve the state’s $5 billion budget deficit, has proposed eliminating the Rolling Stock Sale Tax Exemption that livery businesses currently benefit from.

The tax law has for years exempted livery operators, along with taxicab and trucking companies and others, from paying sales tax on vehicles and vehicle parts. If passed, this new measure would eliminate that benefit and could have dramatic results for limousine operators.

“The livery community is depressed and adding cost without adding business, particularly at this time, is really going to be a life threatening issue for many of our companies,” said Karen Renk, executive director for the Illinois Limousine Association.

How much of a monetary impact could this have? “Some of our members have estimated that it could equal as much as $100,000 a year [in costs] that they are currently not paying,” Renk said. “And, obviously that shift would result in increased fares for the riders.”

Client safety is also a concern, Renk noted. The measure could force operators to keep their cars longer, perhaps beyond their recommended retirement dates.

The ILA formed a committee of concerned operators to meet with a lobbyist to develop what Renk called a fast plan of action to prevent the measure from being passing.

The governor’s proposal was scheduled to appear before both the Illinois House and Senate by mid-May.

Visit ILA’s Web site www.useourlimos.org for up-to-date information.

LCT Staff LCT Staff
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