Bellas & Wachowski

Proposed Tax on Legal Services

This is an appropriate time for you to call your state representative and state senator and encourage them to oppose a tax on professional services. Although this may seem premature, this issue could move quickly in the legislative process if the budget stalemate ever abates.

For background, Governor Rauner's 2014 campaign proposed a service tax that included a tax on legal services. This part of his plan accounted for one-quarter of the $577 million that was estimated to be generated by this tax. This is to address the estimated $8.5 billion in unpaid bills at the end of the calendar year.

We're linking to a recent joint study by the Taxpayers Federation of Illinois and the Center for Tax and Budget Accountability and an article in State Tax Notes. The
joint study recommends against imposing a service tax on professional services (page 9) but does recommend an expansion of Illinois' sales tax base. The article, entitled "Taxing Services is No Panacea" by Brian Hamer, is a concise four-page discussion of the service tax issue.

The Illinois State Bar Association is opposed to this regressive tax on our clients who hire lawyers to exercise their rights under law.

It's not a discretionary consumer purchase such as grooming your dog, using a travel agent, or dry-cleaning. Many of our clients are people of modest means who must hire counsel to seek delinquent child support or custody of their children or request a guardianship for a sick, elderly parent.

Such a tax will also disproportionately affect small businesses in which legal services are an ordinary and necessary part of starting and maintaining such a business. They compete with large corporations who will have in-house legal staff that won't be subject to this kind of tax.

A tax on professional services is also a difficult tax to administer and enforce, and one of the reasons why none of our neighboring states tax professional services.

Your legislators may be found at this
link of the General Assembly's homepage or at the State directory at 217-782-2000.


George S. Bellas

Attorneys Who Care About Their Clients

At Bellas & Wachowski our focus is always on achieving the best results for our clients. We have developed many innovative methods to provide our clients with added protection. For example, in ourpersonal injurywork, we take a uniqueTotal Guard Approachthat ensures clients' finances will be protected during litigation. And in ourbusiness law section, we offer aCorporate Maintenance Planthat helps maintain a business's corporate standing.


Bellas & Wachowski

15 North Northwest Highway


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Jasmina de la Torre

B & W News

We would like to welcome a new attorney to our firm Jasmina de la Torre. In over a 17 years span of her legal career, Jasmina has tackled a broad range of litigation categories. She is also fluent in Spanish and Serbian.