Sente Votes to Prevent Double Taxation for Businesses

State Rep. Carol Sente (D-Vernon Hills) has voted for legislation to allow businesses to avoid paying sales and use taxes twice on items delivered to Illinois then transferred out of state.

“Businesses are already facing higher taxes during the recession, and there is no reasonable excuse to further cripple employers and drive jobs out of state,” Sente said. “These businesses should not be at a financial disadvantage with competitors out of state, and this bill will ensure a level playing field for companies doing business here.”

Senate Bill 401, co-sponsored by Sente, extends the centralized purchasing activities sales tax exemption for an additional five years. This exemption, currently set to expire on June 30, 2011, is available for companies who temporarily store items in Illinois prior to transporting them out of state for consumption and use. This exemption is in place for multi-state companies to avoid paying sales and use taxes multiple times in different states. If the exemption were to expire, companies would have to pay sales tax in Illinois and use tax in the state items are shipped to for use.

To track business growth and retention in Illinois, Sente also sponsored Senate Bill 2082. This measure would require the state to issue quarterly reports on the number of businesses licensed in Illinois, renewing registrations and newly incorporating or otherwise forming to better monitor changes in the business climate in Illinois.

“In order for business to growth to take place in our state, we must foster an environment that does not overburden companies with unnecessary taxes,” Sente said. “We need to create a culture in Illinois that encourages businesses to operate here, expand, and create and retain good paying jobs that contribute to our economic growth.”

Senate Bill 2082 passed the House and awaits further consideration in the Senate.  Senate Bill 401 has passed both chambers of the General Assembly and now heads to the Governor’s desk for final approval.