Tax measure described as potential fatal blow to ailing laundry industry
The laundry and dry-cleaning industry might not be able to take another hit in Illinois, Sue Kratz, the executive director of the Illinois Professional Drycleaners and Launderers, told the DuPage Policy Journal recently.
But Senate Bill 9 would do just that, expanding the state sales tax to an industry that already sees its customers slipping away, Kratz said.
“The tax will be directly assessed to the customer, who will then be paying an additional 6.25 percent on top of what they already consider to be an expensive, service,” Kratz said.
The measure, which passed the Senate on May 23 but has yet to be called for a House vote, is expected to raise more than $5.4 billion dollars in new tax revenue. According to the Illinois Policy Institute, expanding the sales tax to laundry and dry-cleaning services, along with other industries, will bring in $55 million of the total.
Kratz bemoans the depleted customer base laundry shops have already seen in recent years, partly from a change in clothing trends.
There’s been an “increase in casual attire in the workplace, which has filtered down to even more casual attire outside the workplace,” Kratz said.
Many of the laundry facilities across the state are mom-and-pop shops, Kratz said, whch are ill-equipped to handle the reporting requirements that an additional tax would demand.
“They will be spending more time and money on paperwork and reporting while they're revenues continue to fall,” Kratz said.
Kratz is calling on the public to help.
“Contact the governor's office or your state representative as soon as possible, and voice your opposition to SB 9,” she said.
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