The state of Illinois is considering expanding the sales tax to include self-service laundromats. Depending on where your IL laundromat operates that would be anywhere from 6.0% – 9.25% of your gross receipts.
After last week's legislative victory in Iowa only 3 states collect sales tax on the quarters put into self-service washers and dryers. This proposed tax is problematic for customers and owners alike. The Coin Laundry Association points out that, "The median household income for a regular self-service laundry customer is $23,000 per year." Clean clothes are essential to the health and dignity of communities not an optional service. The CLA continues by explaining that, "there is no justification for imposing sales tax on the work people do for themselves. The coin laundry industry simply makes the equipment and utilities – which have already been taxed - available to their customers who provide the labor on a self-service basis."
If you operate a coin laundromat in the state of Illinois please visit the Illinois Coin Laundry Association’s webpage to learn more about this important issue and for ways you can get involved. You can access the full text of Senate Bill 1260 below.
Read SB1260
Lauren Schultz
Author
Lauren is the Vice President of Midwest Laundries and has over a decade of experience in the coin laundry industry. You can reach her at Lauren@midwestlaundries.com