Ag interests fight off Illinois gross receipts tax

Springfield, Ill.-Agriculture and business forces joined with other opponents to turn back Gov. Rod Blagojevich’s plan for a gross receipts tax (GRT), which was feared would be a devastating blow for farm input dealers. “The proposed tax increase ($7.6 billion) would have been larger than the entire budget of many Midwestern states,” declared Illinois Fertilizer & Chemical Association President Jean Payne, who was at the forefront of the lobbying effort extending over nearly three months. “The gross receipts tax concept is particularly devastating for high volume, low margin businesses such as agriculture input suppliers and grain elevators, and agribusiness was very vocal in its opposition.” During the deliberations, Payne noted, agriculture interests had to deal with the threat of losing their sales tax exemption on ag inputs.