SPRINGFIELD (AP) — Two tax policy organizations with distinct views have released a joint report explaining why taxing more consumer services would help stabilize Illinois tax revenue.
The report from the Center for Tax and Budget Accountability and the Taxpayer’s Federation of Illinois outlines how taxing services such as haircuts and pet grooming would update the state’s tax policy.
Representatives from the groups say service taxes could generate up to $2.1 billion in new annual revenue.
Democrat Sen. Toi Hutchinson says she believes there is bipartisan support for updating the sales tax.
Republican Gov. Bruce Rauner also has discussed the possibility of taxing some services.
However, it’s unclear if it would be included in a deal between lawmakers and Rauner to bridge a $6 billion gap in the 2016 budget.