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Chamber@Work | Chicagoland Chamber of Commerce

July 6, 2015

Cook County:

Photo courtesy of the Chicago Tribune

Cook County Board President Preckwinkle is proposing a 1% increase in the sales tax and introduced that ordinance on Wednesday, July 1st. If passed, Chicago and Cook County consumers would pay a nation-leading sales tax of between 10.25% and 11.25% (11.25% in the Metropolitan Pier and Exposition Authority area).

The Chamber attended the County board meeting and remains actively opposed to such an increase. There is much fluidity as to the timing of a vote, and we continue to actively monitor the situation. The ordinance may be viewed here.

At a time when actions in Springfield will have a profound impact on both the City and County government’s fiscal futures, there should be no rush to pass a sales tax increase. Similarly, passing a sales tax increase separate from the normal budget process is a mistake and does not allow for a transparent and full discussion.

The Chamber has and continues to be actively engaged on this issue and are working to inform the County board on the negative impact this would have on our business climate. The Chamber recognizes the great progress made under President Preckwinkle’s leadership in reforming Cook County government to the benefit of all taxpayers, but the Chamber believes now is not the time to make it harder for businesses to expand jobs and grow our economy.

Click here to read a great op-ed piece from Commissioner Bridget Gainer in opposition to the sales tax increase.

The Chamber encourages you to contact your Cook County Commissioner, both as a resident and business owner, to let him or her know you do not support this tax increase. You may locate your Commissioner here.

The next Cook County Board of Commissioners Meeting will be held on July 29, 2015 at 11a.m.

City of Chicago:

Two rulings went into effect on July 1st in the City of Chicago. The Department of Finance, through its administrative rule process, issued rulings regarding the Personal Property Lease Transaction Tax and the Amusement Tax on June 9th.

Both taxes are imposed at a 9 percent rate and are extensive in their reach. The Personal Property Lease Transaction Tax ruling can be found here and the Amusement Tax, here. The Chamber’s comments in the Chicago Tribune can be found here and here.

The Amusement Tax applies to streaming services such as movies, games and satellite TV. The Lease Transaction Tax will apply to the cloud, the online procurement of data that has been compiled, entered and stored on the provider’s computer, and platform, software, and infrastructure as a service. The implications on the technology sector are particularly concerning, given Chicago’s growth as a tech hub.

The Chamber is a member of the Mayor’s ‘Working Families Task Force.’ The task force met for the first time on June 19th and will meet during the next several months to discuss paid sick leave, maternity leave and other issues surrounding working families.

The Chamber will be an active participant and provide insight on how these proposed policies have an effect on the business community. Click here to read a Crain’s Chicago Business article about the working group.

The minimum wage increase took effect last week on July 1st. Businesses will now have to pay employees $10 per hour and will see increases to $10.50 in 2016, $11 in 2017, $12 in 2018, and $13 in 2019.

The Chicagoland Chamber served on the Minimum Wage Task Force during the summer of 2014, and voted no on the final report produced by the Task Force recommending a minimum wage increase to $13 per hour.

The next City Council Meeting will be held on July 29, 2015 at 10a.m.

State of Illinois:

The Chicagoland Chamber of Commerce testified before the Illinois Senate’s Committee of the Whole on June 23rd, discussing paid sick leave and minimum wage. The Chamber’s position remains consistent: as the economy starts to show strength since the Great Recession, the local and State governments need to focus on prioritizing their respective fiscal houses and provide certainty to businesses as they navigate the still uncertain economic climate.

If businesses wish to provide paid sick leave or a higher minimum wage (and many do), that decision should be made by each business. The Senate bill for minimum wage can be found here and paid sick leave here. The witness slips can be found here.

Visit www.ilga.gov to view each chamber’s proceedings by clicking ‘Audio/Video’ under each chamber.

To read the Chamber’s end of session report, click here.

We want to hear from you about any issues that may be of importance to you and your business. Please contact me directly with any questions or concerns at mreever@chicagolandchamber.org or 312-806-1508.