WASHINGTON, D.C. – A professional privilege tax bill has been successfully defeated in Illinois. The Financial Services Institute (FSI) worked to stop this bill since it was introduced in February.
S.B. 1719, and its companion, H.B. 3393, would have imposed a 20% privilege tax rate on partnerships and corporations engaged in the business of investment management services. Most professional businesses, including some FSI members who organize their businesses as limited liability corporations, limited partnerships or limited liability partnerships, are subject to paying franchise taxes, excise taxes and would have been subject to a professional privilege tax which would have equated to being double taxed.
“It’s critical we do everything possible to ensure clients have access to quality, affordable financial advice. And we will oppose anything that puts more of a burden on financial advisors that ultimately hurts their hard-working clients,” said FSI President & CEO Dale Brown. “We work every day to support the growth of our members. A tax of this nature certainly would not help our members grow or help their clients thrive. Thanks to the advocacy efforts of our members and our team, we have continued to ensure that this growth is possible in Illinois, and that our members’ clients in that state continue to have access to the advice they deserve.”
Once the bill was introduced, FSI collaborated with other stakeholders in Illinois and immediately engaged with the bill sponsors, members of the Illinois State House of Representatives and State Senate, and Governor Bruce Rauner. FSI’s Illinois members also contacted their state legislators urging them to oppose the bill.
The bill, which passed the Illinois Senate chamber, was never called for a vote in the Illinois House during the legislative session nor during the special session called by Gov. Rauner to address budget issues. It has now been re-referred back to the Illinois House Rules Committee.
About the Financial Services Institute (FSI): The Financial Services Institute (FSI) is the only organization advocating solely on behalf of independent financial advisors and independent financial services firms. Since 2004, through advocacy, education and public awareness, FSI has successfully promoted a more responsible regulatory environment for more than 100 independent financial services firm members and their 160,000+ affiliated financial advisors – which comprise over 60% of all producing registered representatives. We effect change through involvement in FINRA governance as well as constructive engagement in the regulatory and legislative processes, working to create a healthier regulatory environment for our members so they can provide affordable, objective advice to hard-working Main Street Americans. For more information, please visit financialservices.org.
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