Illinois Governor Proposes Gross Receipts Tax
In his "State of the State" speech last week, Illinois Governor Rod Blagojevich proposed a new gross receipts tax (GRT) on all business activity in the state. Under his plan, "goods-producing" companies, including manufacturers, wholesalers and retailers would pay a .5% tax rate on their total revenue. All other businesses, including primarily service-based companies, would pay a 1.8% tax rate on their total revenues. The new GRT would take effect on January 1, 2008 and is estimated to generate more than $6 billion per year in net revenues for the state.
The Governor's GRT proposal has not been introduced in the General Assembly and there are still many details unknown. Unlike a sales tax, a gross receipts tax would be levied on the full value of all transactions between companies as well as on the receipts on the ultimate sale to a consumer, thus potentially including media advertising sales.
ANA is working closely with the Illinois media groups and other industry groups to oppose any effort to tax advertising time and space.
If your company has significant contacts with Governor Blagojevich or the leadership in the Illinois General Assembly, it would be very helpful if you would contact them to express your opposition to any tax on advertising.
If you have any questions or more information about the tax proposal in Illinois or any other state, please contact Keith Scarborough, Senior Vice President in ANA's Washington, DC office at email@example.com or (202) 296-1883.
If someone else in your company is responsible for state tax issues, please pass this along and provide us their contact information for future communications.