The House returned to Springfield on Tuesday and was in session through Friday. The Senate was not in session this week.

The House and Senate are both scheduled to be in session next week The Senate is scheduled to be in session Tuesday through Friday. The House is scheduled to be in session Monday through Friday.

The Senate Revenue committee did not meet this week. The Senate Revenue committee is scheduled to meet next week on Wednesday. Only two bills have been posted for the committee hearing so far. Here is a link to the bills posted.

The House Revenue committee met on Wednesday and Thursday this week. The House Revenue committee is scheduled to meet next Thursday. Here is a link to the items posted for the hearing next week. Please remember that the Revenue committee tends to post everything that has been assigned to the committee and the Chairman only advises which, if any, of the posted bills will be considered shortly before the committee hearing.

At the Tuesday hearing, the House Revenue committee considered one bill and passed the bill out to the floor:

The committee considered amendment 2 to HB 4785. As introduced:

At it's Thursday hearing, the House Revenue committee considered two bills and passed both bills out to the floor:

The committee considered amendment 2 to HB 448. As introduced:

Amendment #2 provides as follows: Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with formatting changes. Makes the following substantive changes. Provides that the provisions apply only to: (1) certain school districts; (2) park districts; (3) library districts; and (4) community college districts. Provides that the taxing district must certify to the county clerk that the taxing district did not extend the maximum amount permitted under the Property Tax Extension Limitation Law for a particular levy year. Provides that the aggregate extension for a taxing district that utilizes the recapture provisions of the introduced bill may not exceed the taxing district's last preceding aggregate extension by more than 5% unless the increase is approved by the voters. Effective immediately.

The committee considered amendment 2 to HB 5532. As introduced:

No new tax-related legislation was introduced in the House or Senate since my last newsletter.

HB 4870 - As proposed it was a shell bill. As amended: Replaces everything after the enacting clause. Amends the Property Tax Code. Provides for a non-binding, advisory referendum on the question of whether a taxing district should reduce its aggregate extension by up to 10% from its aggregate extension for the previous taxable year. Provides that the referendum shall be initiated by a petition signed by a number of registered voters of the taxing district that is equal to or greater than 1% but less than 5% of the total number of votes cast in the taxing district in the preceding general election. Provides for a binding referendum on the question of whether a taxing district shall reduce its aggregate extension by up to 10% from its aggregate extension for the previous taxable year. Provides that the referendum shall be initiated by a petition signed by a number of registered voters of a taxing district that is equal to or greater than 5% of the total number of votes cast in the taxing district in the preceding general election. Preempts the power of home rule units to tax. Effective immediately.

HB 5142 - As amended - Replaces everything after the enacting clause. Amends the Illinois Income Tax Act. Provides that, for tax years ending on or after December 31, 2022, all individual income tax returns shall contain an appropriate space in which the taxpayer may indicate that the taxpayer would like to know the taxpayer's eligibility for health insurance benefits and authorize the Department of Revenue to share the taxpayer's income information with the State health benefits exchange. Provides that, by June 1 and October 1 of each year, the Department of Healthcare and Family Services and the Department of Insurance shall provide the Department of Revenue with a form letter describing health insurance enrollment options for taxpayers. Provides that the form letter is not required in any calendar year if the State health benefits exchange is operational as of January 1 of that calendar year. Provides that the Department of Revenue shall send the form letter via e-mail or first class mail to the taxpayers who indicated on their most recent individual income tax return that they would like to know their eligibility for health insurance benefits. Provides that the marketplace enrollment platform must interface with the Department's tax system if the State transitions to a State health benefits exchange. Provides that the Director of Revenue shall make individual income tax information available to the State health benefits exchange if the disclosure is authorized by the taxpayer. Provides that the State health benefits exchange shall use the information provided by the Department to assess the individual taxpayer's eligibility for Medicaid and health insurance premium tax credits. Provides that the State health benefits exchange shall inform the taxpayer of the results of its eligibility assessment. Effective immediately.

HB 5184 - As introduced - Amends the Military Veterans Assistance Act. Provides that the "overseer of military veterans assistance" shall be construed to mean the commanders of the various congressionally chartered veteran service organizations, or the Superintendent of a County Veterans Assistance Commission. Provides that funding for Veterans Assistance Commissions shall be derived from: (i) a tax levied under the Counties Code and the Illinois Public Aid Code; (ii) funds from the county general corporate fund; and (iii) State funds from the Department of Human Services. Provides that congressionally chartered veteran service organizations and county Veterans Assistance Commissions, if applicable (rather than military veterans organizations), shall undertake the assistance of military veterans and their families. Provides that in a county having 2 or more congressionally chartered veteran service organizations, the congressionally chartered veteran service organizations may come together to form a Veterans Assistance Commission that shall act as the central office for all veterans and their families and for the families of deceased veterans. Amends the Counties Code. Provides that in a county having a population of less than 3,000,000 in which there is created a County Veterans Assistance Commission, the county shall levy for assistance to military veterans and their families a tax of an amount which, when added to the unobligated balance available for such purpose at the close of the preceding fiscal year will equal .02% of the last known assessed value of the taxable property in the county. Requires County Veterans Assistance Commissions to be in charge of the administration of general assistance benefits and other public aid benefits provided under the Illinois Public Aid Code for military veterans and their families. Amends the Illinois Public Aid Code. Requires counties with less than 3,000,000 inhabitants that have a County Veterans Assistance Commission to levy for assistance to military veterans and their families a tax of an amount which, when added to the unobligated balance available for such purpose at the close of the preceding fiscal year, will equal .02% of the last known assessed value of the taxable property in the county, or will equal .03% of such assessed value if such higher amount is authorized by the electors of the county.

As amended - Replaces everything after the enacting clause and reinserts the provisions of the introduced bill with various changes. Eliminates Illinois Public Aid Code language that changed the placement of certain taxation provisions. Eliminates Counties Code language that added certain taxation provisions. Amends the Military Veterans Assistance Act. Changes the term "overseer of military veterans assistance" to "administrator of military veterans assistance". Deletes language concerning almshouses, orphan asylums, and facilities for indigent persons who are mentally ill. Deletes references to "military veterans organization". Makes changes concerning military discharges and other matters.

HB 5532 - See discussion of the bill above

HB 5543 - The amendment to this bill was posted for consideration at the Thursday hearing of the House Revenue committee. We advised the sponsor of our opposition to the amendment, filed witness slips in opposition and requested an opportunity to testify in opposition. The amendment was not called for consideration by the Revenue committee at the Thursday hearing. The amendment has been posted for next week's Revenue committee hearing. As originally proposed - Amends the Department of Labor Law of the Civil Administrative Code of Illinois. Provides that the Department of Labor shall develop and administer a Day and Temporary Labor Service Agencies Seal of Approval Program to bring day and temporary labor service agencies into compliance with the provisions of the Day and Temporary Labor Services Act. Provides for a voluntary Code of Conduct for day and temporary labor service agencies. Provides that, as part of the Program, a day or temporary labor service agency shall submit itself to audits conducted at the Department's discretion. Provides for benefits and partnerships with other State agencies and community partners. Provides that the Department may adopt rules to implement the Program.

As amended - Replaces everything after the enacting clause. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity may require a business organization to agree to certain terms that ensure the business is a good corporate citizen as a condition for receiving development assistance. Provides that a business that cannot consent to any required terms shall be ineligible for the development assistance. Specifies terms that may be required. Provides that compliance with good corporate citizen eligibility is required throughout a development assistance agreement. Provides that the Department may suspend the development assistance for noncompliance and seek revocation of any credits or exemptions that were earned or used during a time when the business or its corporate parent or affiliates were not in compliance with any applicable requirements. Provides for the adoption of rules. Defines terms.

SB 1145 - As introduced the bill was shell bill. As amended - Replaces everything after the enacting clause. Amends the Illinois Income Tax Act. Creates an income tax credit for a taxpayer who may claim one or more qualifying students as a dependent, or a taxpayer who is a qualifying student and is not claimed as a dependent by any other taxpayer, in an amount equal to the lesser of: (1) the qualified tuition and fee expenses paid by the taxpayer during the taxable year on behalf of the qualifying student or students; or (2) the maximum credit amount. Sets forth the maximum credit amount. Provides that no taxpayer may claim a credit under the amendatory Act if the taxpayer's federal adjusted gross income for the taxable year is less than or equal to 6 times the federal poverty level or more than 11 times the federal poverty level. Effective immediately.

Tax-related bills that passed the Senate last Friday after the last newsletter was sent out last Friday morning:

Sb 2154 - Amends the Property Tax Code. Provides that buildings, structures, and improvements that are not permanently attached to the land are not considered property for the purposes of the Code.

SB 2173 - As introduced - Amends the Illinois Income Tax Act. Provides that an apprentice who is hired by the taxpayer through the United States Department of Defense SkillBridge internship program is considered a qualifying apprentice for the purpose of the apprenticeship education expense credit. Provides that, in the case of an employee participating in the SkillBridge program, the credit shall be equal to $3,500 per qualifying apprentice. Effective immediately.

SB 3634 - 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, breast pumps, breast pump collection and storage supplies, and breast pump kits are exempt from the taxes imposed under those Acts. Effective immediately.

SB 3832 - As introduced - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that tangible personal property sold by or on behalf of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act is exempt.

Tax-related bills that passed the House:

HB 4132 - Amends the Parking Excise Tax Act. Creates an exemption for parking areas and garages that are operated for the use of attendees, vendors, or employees of the Illinois State Fair or the DuQuoin State Fair and are not otherwise subject to taxation under the Act in the ordinary course of business.

HB 4284 - Amends the Illinois Vehicle Code. In provisions concerning a motor vehicle transfer tax when the transfer is pursuant to the administration of an estate and the beneficiary is not a surviving spouse, provides that those provisions also apply to the administration of an inter vivos trust that became irrevocable upon the death of the grantor. Effective immediately.

It remains a a quiet year for tax legislation - not that I'm complaining. Yesterday 163 bills passed the House, and unless I missed anything, none were tax bills.

The March 4 edition of the Illinois Register contained no new proposed or adopted rulemakings by the Illinois Department of Revenue ("IDOR") and the Department of Commerce and Economic Opportunity.

No new cases this week.

No new decisions have been posted by the Tribunal this week. None of the new cases raise any unique issues.

Publications

The Illinois General Assembly's Commission on Government Forecasting and Accountability issued its Monthly Briefing for the Month Ended: .February 2022