Illinois Proposes Special Tax on Service Contract Sale Proceeds

On February 15, 2013, State of Illinois Senator William R. Haine introduced Senate Bill 1731 – an amendment to the Illinois Service Contract Act. The proposed legislation includes a provision that service contract providers shall pay, for the privilege of doing business in Illinois, a tax equal to 0.5% of the gross consideration received. The bill provides that the tax shall be remitted to the Director of Insurance in accordance with the provisions of the Illinois Insurance Code concerning the annual privilege tax payable by companies and makes a corresponding change. The bill has been referred to the Assignments Committee.

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Filed under Service Contract, Statutes & Regulations

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