After several decades of nearly annual struggle to protect the Retail Discount, thru Republican and Democratic governors, this year retailers’ fight to keep Illinois’ retail discount from being capped, reduced or eliminated has come to an end.

The retail discount is the portion of the sales tax that retailers collect as partial reimbursement for collecting the sales tax from consumers on behalf of the state. Illinois currently allowed retailers to retain 1.75% of the sales taxes. Despite successful informational campaigns year-after-year an inflection point arrived this year. The pressures included but were not limited to a desire by policy-makers to make local governments whole as a result of getting rid of the 1% tax on groceries, meet increased spending pressures, and balance the budget without directly increasing general taxes. Governor JB Pritzker’s proposal to cap the discount at $1,000 per month per entity ($12,000 per year) was ultimately adopted and the change takes effect for tax returns due on or after January 1, 2025.

However, IRMA was able to secure a number of changes to help Illinois retailers control costs including but not limited to “swipe fee” prohibition on sales taxes, expansion of pharmacy test-and-treat, among other things. In regards to “swipe fees”, IRMA was able to secure passage of legislation allowing retailers the option of having card processors remove the fees they charge on the sales tax portion of every electronic transaction. While states like Tennessee and Florida paved the way, Illinois became the first state to do so. This is even more important as Illinois’ own US Senator Richard Durbin (D) pursues federal regulation of the fees charged by processors. While these changes could potentially require changes to point-of-sale and accounting systems, in the long-run they provide significant cost-control opportunities for retailers. Further, they provide significant impetus to Senator Durbin’s efforts. This provision takes effect July 1, 2025.

The August 13 primary ballot in Wisconsin will feature two significant constitutional referendum questions related to the state's fiscal management and the allocation of federal funds. Here is a breakdown of the questions voters are being asked to accept or reject and the implications:

Question 1: Delegation of Appropriation Power

Text: “Shall section 35 (1) of article IV of the constitution be created to provide that the legislature may not delegate its sole power to determine how moneys shall be appropriated?”

• Yes Vote: Prevents the legislature from delegating its authority to appropriate funds. Only the legislature would have the power to decide on the allocation of state funds.

• No Vote: Maintains the current system, allowing some delegation of appropriation powers.

Read the full article here.

As part of Mastercard's commitment to helping small businesses thrive within the cybersecurity landscape, they launched a Mastercard Cybersecurity Assessment Tool.

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