Our Research

We provide independent, nonpartisan research and recommendations that help state and local policymakers improve our governments' sustainability, efficiency and effectiveness and inform the media and the public on critical issues facing our region. Our focus areas include government finance, criminal justice policy, mass transit governance and more.

March 19, 2025

Modernizing Illinois' Sales Tax: A Pathway to a Sustainable Future

As the State of Illinois’ second largest revenue source, the sales tax is a critical tool that supports government operations and public services throughout the state. First implemented in the 1930s, Illinois’ antiquated sales tax structure still primarily taxes goods rather than services. Due to this narrow tax base — which does not reflect the modern, service-oriented economy — the sales tax is falling short. Illinois needs a more strategic and sustainable fiscal structure that delivers consistent and reliable revenue growth, efficient spending, and economic competitiveness.

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