Illinois considers applying sales taxes to more services

SPRINGFIELD, Ill. (AP) - Illinois lawmakers are considering expanding the services subject to sales tax.

Their list includes eight service categories ranging from landscaping to hair removal. Those services would be taxed at 6.25 percent and raise an estimated $291 million per year.

The idea is part of a revenue proposal tied to a Senate compromise intended to break the state's two-year budget stalemate. That plan fell through last month but lawmakers say they'll keep working on it.

Democratic Sen. Toi Hutchinson of Olympia Fields is sponsoring the revenue measure that includes both the service tax expansion and an income tax hike.

She says taxing services is critical to filling the multibillion dollar budget hole.

Republican Gov. Bruce Rauner has indicated he would entertain the idea. But many members of the business community object.