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Illinois lawmakers considering new measure to add additional tax to rideshare, delivery services

Illinois lawmakers will head back to Springfield on Tuesday for the start of their veto session.

Some of the decisions made during the session could impact everyday purchases. One of the items they may revisit is increased taxes on rideshares and food deliveries.

The idea is to tax the services, rideshare, food delivery, that use single vehicles and funnel that into services like the Chicago Transit Authority, Metra, and Pace. Some of the companies are so concerned that they have started reaching out in an email campaign.

While driving through West Loop one day before lawmakers return to Springfield, rideshare driver Richard Juarez said he's aware of concerns. He's gotten emails about them from his partner services.

"This is my primary source of income," he said.

An email from Uber last week explained, "legislators are considering a new measure that could add an extra tax on all rideshare trips."

Jessica Perjes, the owner of Tacotlan in Hermosa, on the city's Northwest Side, took to social media to share a similar statement from Grubhub, which warned, "A new tax could add up to $1.50 to every order you receive."

"It just made me feel frustrated, because I was like, what else can we take?" she said.

Perjes estimates that half of all their business right now comes from delivery, something they and the customers rely on.

"Everything going on with immigration, people are not wanting to go out, and people are scared, and so we're viewing those third parties right now as maybe just a lifeline," she said.

"I used to say before the pandemic, the restaurant industry was an industry of nickels and dimes. Now it is an industry of pennies and nickels," said Sam Toia, president and CEO of the Illinois Restaurant Association

Experts said the taxes could seriously impact small businesses in an industry increasingly reliant on delivery sales.

"Seventy-six percent of restaurants, now you know, basically offer a delivery service, and upwards to 20% of their business is through deliveries as well," Toia said.

It comes as the CTA announced that it is increasing fares and pass prices next year to bridge some of the funding gap. Metra recently announced its own price hike.

Restaurant owners are saying there's got to be another revenue source.

"Somebody can eat it more than we can," Perjes said.

She said she's working with other restaurant owners to craft a message for lawmakers.

There is some reason for hope. The Regional Transportation Authority revised its funding gap estimates earlier this month from the nearly $790 million they were projecting earlier this year to about $200 million instead.

A spokesperson for Grubhub, in a statement, said, "While we share the state's goal of funding transportation infrastructure, this delivery tax would raise costs for consumers and cut into restaurant sales across the state. Lawmakers should work with the restaurant community on more balanced solutions that don't punish small businesses or the customers who support them."  

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