SPRINGFIELD -- The Illinois Chamber of Commerce and
some lawmakers are pushing to roll back a tax hike they say was
largely unknown when it was approved earlier this year.
The tax would hit some partnerships and other
businesses that charge professional fees -- law firms, architects,
dentists and others -- with an additional income tax charge.
The hike was inside an already complicated
budget measure and approved without any "no" votes earlier this year.
The tax -- called the personal property
replacement tax -- sends money to counties and cities, not the state.
For that reason, state leaders might be less hesitant to repeal the
increase, said Illinois Chamber of Commerce spokesman Todd Maisch.
Plus, Maisch said, the provision was widely
unknown when it was initially approved.
"This was not a conscious policy decision of the
legislature," Maisch said.
State Sen. Don Harmon, D-Oak Park, said the
provision was inserted to prevent tax abuse by partnerships. But, he
said, he understands it might not be the right fix.
Harmon said he'll push next week to repeal it.
He said it wasn't supposed to be a hidden tax hike.
"I think that the tax code is extremely
complicated," Harmon said.
State Rep. David Reis, R-Willow Hill, said it's
clear that hardly any lawmakers knew it was a part of the budget plan.
Otherwise, there would have been lots of opposition.
Reis filed legislation to roll the tax hike
back, and lawmakers could consider the issue when they return to
Springfield next week.
"We just think this is the wrong time to be
hurting businesses," Reis said.
The personal property replacement tax is
different from the income tax hike Gov. Pat Quinn has been seeking
this year. That would raise taxes on individuals in an attempt to
solve the state's budget problems.
Lawmakers are scheduled to begin their fall
session Wednesday.
The original budget legislation was Senate Bill
1912.
