The House and Senate are not scheduled to return to Springfield until the fall veto session. The House and Senate have not posted the fall veto session dates. My understanding is that it will be after the November elections.

The April 22 edition of the Illinois Register not contain any proposed or adopted rulemakings by the Department of Commerce and Economic Opportunity or proposed rulemakings by the Department of Revenue.

Today's Illinois Register contains one adopted rulemaking by the Illinois Department of Revenue amending the Tobacco Products Tax Act rules. The Department described this rulemaking as follows:

"This rulemaking implements the amendments made by P.A. 102-0040 to the definition of “electronic cigarette” contained in the Tobacco Products Tax Act of 1995 (“Act”). Prior to the enactment of P.A. 100-0040, devices, cartridges or container intended for use in devices, and solutions or substances intended for use in devices or in cartridges or containers to be used in devices, whether or not the  substances or solutions contained nicotine, were defined as “electronic cigarettes,” included in the definition of “tobacco products,” and subject to Tobacco Products Tax. Distributors of these products were subject to tax under the Act at the rate of 15% of the wholesale price. The definition was broad enough to cover devices, cartridges and containers, and solutions containing cannabis sold in cannabis dispensaries. After the definition of “electronic cigarette” was included in the Act, on and after June 28, 2019, cannabis cultivators were required to obtain a distributor’s license and pay the Tobacco Products Tax on these items. Retailers of these items were required to obtain a retailer’s license under the Act. P.A. 102-0040 removes devices, cartridges and containers, and substances and solutions, that contain cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act or the Cannabis Regulation and Tax Act from the definition of “electronic cigarette” contained in the Act. P.A. 102-0040 includes language to address the period between the enactment of the original definition of “electronic cigarette” (June 28, 2019) and the effective date of P.A. 102-0040 (June 25, 2021). The changes made to the definition of "electronic cigarette" by P.A. 102-0040 apply on and after June 28, 2019, but no claim for credit or refund is allowed on or after the effective date of P.A. 102-0040 for taxes paid during the period beginning June 28, 2019, and the effective date of P.A. 102-0040."

The Illinois Supreme court issued its opinion in Illinois Road and Transportation Builders Association v. County of Cook. The court held that the language of the "lockbox" amendment to the Illinois Constitution is clear and the uses of the proceeds of the county taxes at issue in the case are limited by the amendment.

In 2016, an amendment shielding transportation funding from various taxes and fees from other uses was added to the state revenue article of the Illinois Constitution (Ill. Const. 1970, art. IX, § 11(a)) This amendment is commonly known as the transportation taxes and fees "lockbox amendment" or "safe roads amendment (Amendment)." The Amendment restricts the use of proceeds from transportation-related bond proceeds, taxes, fees, excises, and license taxes to ensure that such proceeds are only used for transportation-related purposes.

In 2018, a coalition of contracting firms in the public transportation construction and design industry, filed suit in the circuit court of Cook County for declaratory and injunctive relief against the County of Cook (County), asserting that the County was impermissibly diverting revenues generated from six transportation-related ordinances that, pursuant to the Amendment, should have been used only toward certain delineated transportation-related purposes.

The County filed a combined motion to dismiss and the circuit court dismissed the complaint, finding that plaintiffs lacked standing and that the complaint failed to state a violation of the Amendment.

The appellate court reversed on the issue of standing but affirmed the circuit court’s determination that no violation of the Amendment had been stated, albeit for different reasons.  

The plaintiffs filed an appeal to the Illinois Supreme Court. The Illinois Chamber filed an amicus brief in support of the plaintiffs in the appeal to the Supreme Court.

The Supreme court agreed with the Road Builders that the Amendment contains no exemption on the use of funds from the local taxes at issue for home-rule units of government or for expenditures of transportation tax revenue pursuant to home rule authority. The court remanded the case back to the circuit court of Cook County.

No new decisions have been posted by the Tribunal this week. The only new case filed this week does not raise any unique issues.

April 25 - Tax Institute Quarterly meeting

RSVP to Keith at the link (I may a bit delayed today in getting back to you with a confirmation that I received your registration request. I'm driving to Southern Illinois to run the River-to-River Relay tomorrow - an 8 person 80 mile relay race from the Mississippi to the Ohio through the hills of Southern Illinois. I'll respond to email when I get to the hotel this afternoon.)

The Federal Reserve issued the latest edition of the Beige Book the quarterly informal review by the Federal Reserve Banks of current economic conditions in their Districts.

The Chicago Federal Reserve Bank reports "Economic activity increased moderately. Employment increased strongly, and consumer spending, business spending, manufacturing, and construction and real estate were up modestly. Wages and prices rose rapidly, while financial conditions tightened some. Agriculture markets experienced price increases and substantial volatility related to Russia’s invasion of Ukraine."