Tax & Accounting Blog

Chicago: A Proposal to Expand the Sales Tax on Services

Indirect Tax, Sales and Use Tax January 31, 2011

Windy City mayoral candidate Rahm Emanuel is proposing that the Legislature consider cutting the sales tax rate but extending the tax to cover many currently untaxed services. Services he suggests taxing include pet grooming and limo services. He claims that this could save families who don’t use these types of services up to $300 per year without costing the city any money. Service industries have successfully curtailed previous efforts to extend the sales tax base on services in the city.