HR0402 95TH GENERAL ASSEMBLY

HR0402 LRB095 12104 BDD 36125 r

HOUSE RESOLUTION

WHEREAS, On March 7, 2007 before a joint session of the Illinois House and Senate, Governor Rod R. Blagojevich delivered a combined State-of-the-State and Budget Address; and

WHEREAS, Based on his concern that, "Many large corporations pay little or nothing in corporate income taxes and are not paying their fair share to meet the state's ongoing infrastructure, education, healthcare, and public safety needs," Governor Blagojevich, during his speech, asked that the General Assembly address this situation by the implementation of a Gross Receipts Tax (GRT) to begin January 1, 2008; and

WHEREAS, Governor Blagojevich's proposed GRT is a privilege tax imposed on virtually all business entities engaged in a trade or business conducted, in whole or in part, within Illinois; and

WHEREAS, Governor Blagojevich's proposed GRT would be assessed at a rate of 1% for manufacturing, retail, and wholesale companies, and all other businesses, such as those that provide services, would pay a rate of 2%; and

WHEREAS, Governor Blagojevich projects that his proposed GRT would raise $7.6 billion in annual revenue for the State; and

WHEREAS, Governor Blagojevich's proposed GRT would exempt businesses with gross revenues of $2,000,000 or less, non-profit organizations, and governmental entities; it would also exempt certain transactions, services, and goods and allow certain credits; and

WHEREAS, While no House member has of this date introduced a bill to enact Governor Blagojevich's proposed GRT, currently pending in the Illinois Senate is Senate Bill 1, Amendments #1 and #2, the legislative form of Governor Blagojevich's proposed GRT; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that those voting "aye" on this resolution are in support of Governor Blagojevich's proposed Gross Receipts Tax and urge that legislation to enact it into law be passed by the General Assembly as soon as possible, and those voting "no" on this resolution do not support Governor Blagojevich's proposed Gross Receipts Tax and believe that it should not become law; and be it further

RESOLVED, That a copy of this resolution be presented to all State Constitutional Officers, the Minority Leader of the House of Representatives, the President of the Senate, and the Minority Leader of the Senate.