April 1: House third reading deadline for Senate bills and Senate third reading deadline for House bills.
April 8: General Assembly spring session scheduled adjournment.
Save the dates -
April 20 - Webinar - Introduction to Illinois sales taxes and an Illinois update. 2 hours of Illinois CPE and CLE submitted for approval. Free to Tax Institute members. Register at this link
April 25 - Tax Institute Quarterly meeting - 2:00 - 4:00 pm. We are planning a hybrid meeting with an in person option at our Chicago offices and a webcast for those who don't wish to attend in person. I'll present a legislative wrap up - the General Assembly is scheduled to adjourn on April.
Special Guest - Roger Koss - Head of the IDOR Audit Bureau who will give an update and answer questions (invited).
April 1, 2022
State and Local Tax
Special Friday Night Edition
Illinois General Assembly
The House and Senate both cancelled the session originally scheduled for Saturday. The House returns to Springfield Sunday afternoon at 4:00 and the Senate returns to Springfield at 3:00 on Monday.
Late this afternoon, a series of 8 tax-related amendments were filed to a shell bill we have been following, SB 1150. Here are descriptions of the amendments from the General Assembly website:
Senate Floor amendment 1 - Harmon - Replaces everything after the enacting clause. Amends the Illinois Income Tax Act. Provides for a one-time income tax refund for taxpayers who file an individual Illinois income tax return for the taxable year that began on January 1, 2021 and have a federal adjusted gross income for that taxable year that does not exceed $250,000 for single filers or $500,000 for spouses filing a joint return. Provides that the amount of the refund is $100 for single filers and $200 for spouses filing a joint return, plus an additional $50 for each person who is claimed as a dependent on the taxpayer's federal income tax return, not to exceed 3 dependents per refund. Amends the Illinois Administrative Procedure Act to provide for emergency rules. Effective immediately.
Senate Floor amendment 2 - Sims - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on July 1, 2022 and until January 1, 2023, the rate of tax on certain food products shall be 0% (currently, 1%). Requires returns under those Acts to include the gross receipts of those food products upon which tax would have been due but for the 0% rate imposed under the amendatory Act. Amends the State Finance Act. Creates the Grocery Tax Replacement Fund. Provides for a transfer from the General Revenue Fund to the Grocery Tax Replacement Fund. Provides for transfers from the Grocery Tax Replacement Fund to the State and Local Sales Tax Reform Fund and the Local Government Tax Fund of amounts needed to equal the net revenue that, but for the reduction of the rate to 0% in the Service Occupation Tax Act and the Retailers' Occupation Tax Act under the amendatory Act, would have been deposited into those funds if the items that are subject to the rate reduction had been taxed at the 1% rate during the period of the reduction. Makes conforming changes in the Innovation Development and Economy Act, the Counties Code, the Illinois Municipal Code, the Flood Prevention District Act, the Metro-East Park and Recreation District Act, and the Regional Transportation Authority Act. Makes other changes.
Senate Floor amendment 3 - Sims - Adds provisions amending the Motor Fuel Tax Law. Provides that, beginning on July 1, 2021 and until January 1, 2023, the rate of tax shall be 39.2 cents per gallon. Provides that, on January 1, 2023, the rate of tax imposed shall be increased by an amount equal to the percentage increase in the Consumer Price Index for the 12-month period ending on September 30, 2022 (currently, the rate is adjusted by the change in the Consumer Price Index on July 1 of each year). Provides for transfers from the Underground Storage Tank Fund to the Road Fund.
Senate Floor amendment 4 - Gillespie - Adds provisions amending the Illinois Income Tax Act. Provides that the Department of Revenue shall pay a one-time rebate to taxpayers who filed an Illinois income tax return for the taxable year beginning on January 1, 2021. Provides that the rebate shall be the lesser of: (1) the amount of the credit allowed to the taxpayer under Section 208 for tax year 2021, including any amounts that would otherwise reduce a taxpayer's liability to less than zero, or (2) $300 per principal residence. Amends the State Finance Act to create the Property Tax Rebate Fund and provides for transfers from the General Revenue Fund into that Fund. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking.
Senate Floor amendment 5 - Hastings - Adds provisions amending the Use Tax Act and the Retailers' Occupation Tax Act. Creates a tax holiday under those Acts for certain school supplies and clothing from August 5, 2022 through August 14, 2022. Amends the State Finance Act to make conforming changes.
Senate Floor amendment 6 - Aquino - Further amends the Illinois Income Tax Act. Provides that the earned income tax credit shall be 19% of the federal tax credit for each taxable year beginning on or after January 1, 2023. Extends the earned income tax credit to individuals filing a return using an individual taxpayer identification number (ITIN). Specifies that the earned income tax credit is not refundable for taxpayers who file returns using an ITIN other than a Social Security number.
Senate Floor amendment 7 - Holmes - Further amends the Illinois Income Tax Act. Increases the maximum amount of the credit for instructional materials and supplies from $250 for taxable years beginning prior to January 1, 2023 to $300 for taxable years beginning on or after January 1, 2023.
Senate Floor amendment 8 - Belt - Further amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to $500 for individuals who serve as volunteer emergency workers for at least 9 months during a taxable year and do not receive compensation for services as a volunteer emergency worker of more than $10,000 for the taxable year. Provides that the credit is available during taxable years beginning on or after January 1, 2023 and beginning prior to January 1, 2028. Defines "volunteer emergency worker".
