March 7, 2008
House Republicans Call for Sales Tax Holiday
House Republicans Propose Sales Tax Holiday
Springfield, IL…A group of House Republican lawmakers on Thursday introduced a proposal that would provide families with a sales tax holiday over the four day Memorial Day weekend.
“In May many families will begin receiving rebate checks from the federal government to help stimulate the economy. The sales tax holiday we are proposing would allow them to get more for their money as they spend those checks,” said State Representative Rosemary Mulligan (R-Des Plaines).
“This is something we can do at the state level to help stimulate the economy. Rising gas prices have provided the state a windfall in motor fuel tax revenues. This is also a way for us to put some of that revenue back into consumer’s pockets,” said State Representative Ron Wait (R-Belvidere).
Items valued at $600 or less would be exempt from state sales tax during the holiday. Families who purchase an energy star efficient appliance would be eligible to receive a sales tax exemption on the first $600 spent for that appliance.
According to State Representative Ruth Munson, a sale tax holiday over the busy Memorial Day weekend would help counter the effects of the recent retail slowdown and help stretch cash-strapped family budgets.
“A sales tax holiday will help ordinary families buy ordinary products like clothes, shoes, diapers, small appliances, and products for the home,” said Munson (R-Elgin).
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“Families need some help. Gas prices could hit $4.00 a gallon by summer. Heating and cooling bills are on the rise. We are paying more for groceries and many are struggling every month to pay their mortgage and taxes. While a one-time sales tax holiday won’t solve all of our problems, it will provide families a much-needed tax break,” said State Representative Dennis Reboletti (R-Elmhurst).
“This is estimated to be about $40 million in tax relief for families across Illinois. With yet another unforeseen increase by the county board, a sales tax holiday will help soften the blow,” said State Representative Sid Mathias (R-Buffalo Grove).
According to Representative Ron Stephens (R-Greenville), 15 other states plus the District of Columbia have implemented a sales tax holiday.
“It must be successful because many of these states have chosen to have subsequent sales tax holidays,” said Stephens. “While the U.S. Congress has figured out that tax breaks are needed to help stimulate the economy, many Democrats here in Illinois continue to push for higher taxes including sales taxes on the same family purchases we are trying to help. I believe raising taxes is the wrong approach to turning our economy around and would prefer to give working families a much-needed tax break.”
“Aiding Illinois families through a Sales Tax Holiday will generate sales, encourage job growth and provide lower costs for Illinois consumers” stated David F. Vite, President of the Illinois Retail Merchants Association. A Sales Tax Holiday will be welcome news to Illinoisans who have been beset by increasing costs of government at all levels. “The Memorial Day timing of the Holiday will allow Illinois families to have additional benefit form the Federal stimulus checks which are scheduled to arrive in May” Vite added.
The sales tax holiday would run from 12:01 a.m. on Friday, May 23rd through 11:59 p.m. on Monday, May 26th.
