IRPOA Declares Service and Delivery Tax Proposals Will Decimate Housing Affordability

Illinois Rental Property Owners Association Warns Against Two Tax Proposals Circulating in the Illinois General Assembly

GLEN ELLYN, IL, UNITED STATES, October 22, 2025 /EINPresswire.com/ -- The Illinois Rental Property Owners Association (IRPOA), which represents housing providers managing tens of thousands of rental housing units, has issued a warning regarding two new tax proposals circulating in the General Assembly: an extended tax on services and a $1.50 fee on deliveries.

Andrew R. Timms, President of IRPOA, says, “These measures are fundamentally unfair and represent a direct threat to housing stability and affordability for renters and homeowners—forcing costs upward by hundreds or thousands of dollars per year for every Illinois resident.”

The proposed service tax expansion—which could levy a tax on essential services like plumbing, electrical work, landscaping, and property management—could result in a tax on a tax, creating an unsustainable financial burden for rental housing owners.

This proposal directly targets the housing provider’s operational costs. When the state taxes critical services like maintenance, repairs, and management, housing providers’ costs immediately rise. This increase is passed on to residents in the form of rent increases. Additionally, it reduces the supply of affordable housing units.

Homeowners will see immediate cost hikes on essential repairs. Fixing a broken furnace, mending a leaky roof, or other forms of maintenance will become significantly more expensive, discouraging upkeep and increasing the cost of homeownership and renovation.

Cost hikes, including the taxation of professional services used by businesses (such as legal or accounting services), will slow economic growth and reduce competitiveness in the Illinois marketplace.

IRPOA identifies the delivery tax as a highly regressive tax that disproportionately harms low and middle-income families. The fee costs the same for all income levels, consuming a larger portion of the income of seniors, working families, and residents in areas with limited shopping access. The financial burden could cost the average Illinois family more than $1,200 each year.

Paul Arena, Director of Legislative Affairs for IRPOA, says, "These proposals will impact homeowners and renters alike. The service tax will apply to every aspect of our lives, including haircuts, auto repairs, home maintenance, and dry cleaning, which will cause the cost of living in Illinois to skyrocket. Housing providers will be forced to raise rents or cut back on maintenance. Many will just choose to leave the market.

“Simultaneously, the delivery tax is a regressive levy designed to fund a regional service using the wallets of every Illinois family. These bad tax ideas will drain everyone's wallet and unequivocally hurt housing in Illinois.”

IRPOA urges all members of the General Assembly to reject these fiscally irresponsible proposals that will make housing unaffordable.

IRPOA is a non-profit association dedicated to the preservation of private property rights, the promotion of quality, affordable housing, and the education and advocacy for housing providers across Illinois.

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