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Illinois Proposes Dues Tax on Clubs: NCA Member Alert

A bill has been introduced in the Illinois State Senate that would tax club dues and expenses that members incur at the club. The legislation would impose a five percent tax on club dues. Fortunately for the club industry, it is extremely unlikely that this bill will become law.

* This legislation is part of a set of 13 various bills that the Senate must pass in order for any to go into effect.

* Governor Bruce Rauner (R) is unlikely to sign the legislation into law even if these bills were to pass.

* llinois requires a three-fifths majority vote in both chambers of the legislature to override a veto by the governor and there is very little chance that the Republicans in either the state House or Senate will support an effort to override a veto.

Imposing a tax on club dues and other expenses at the club would not only harm clubs, but also their members and staff. As the Illinois economy continues to experience sluggish growth post-recession, it would be detrimental to financially burden clubs in The Prairie State with additional taxes.

Since our inception, NCA has fought against these and other taxes that hurt clubs.

NCA is monitoring this bill and will work with our Illinois clubs to direct our concerns to the Illinois legislature and the governor’s office in an effort to stop this bill.

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