Controversial tax collection fee could be cut in half

An Illinois lawmaker is proposing a fee cut from the state’s budget package, arguing there wasn’t enough time to fully examine it as lawmakers quickly approved a budget to end the state’s budget impasse.

The State Journal-Register reports that Democratic Rep. Anthony DeLuca of Chicago Heights has proposed a bill to cut a fee in the package that affects local governments throughout Illinois.

The budget package applied a 2 percent collection fee to sales taxes imposed on municipalities for collecting taxes above 6.25 percent. The fee generates about $60 million annually for the state.

DeLuca’s bill would cut the state fee in half. He says the hurried nature of the budget agreement approved this summer didn’t leave enough time to examine the effects of the fee.