The House and Senate return to Springfield for the spring legislative session on January 4.

New tax-related legislation introduced this week:

HB 4214 - Vella - Amends the Illinois Income Tax Act. Creates an income tax credit for hospitality employers, for taxable years that begin on or after January 1, 2022 and begin prior to January 1, 2023, in an amount equal to 100% of the amount paid by the taxpayer to provide vision and dental benefits, life insurance, and short term disability coverage for its employees during the taxable year. Effective immediately.

HB 4223 - Stuart - Amends the Illinois Income Tax Act. Provides that the credit for wages paid to qualified veterans also extends to wages paid to a qualified veteran's spouse. Provides that active duty members of the United States Armed Forces are also considered "qualified veterans". Effective immediately.

The November 19 edition of the Illinois Register did not contain any proposed rules by the Illinois Department of Revenue or the Department of Commerce and Economic Opportunity.

Today's Illinois Register contained 3 adopted rulemakings by the Illinois Department of Revenue. The amendment to the Retailers' Occupation Tax Act rules was described by the Department as follows:

"This amended regulation implements Public Act 101- 0629 which retroactively reinstated the Aircraft Maintenance exemption. This rule retroactively allows the exemption from December 31, 2014, when this exemption originally sunset, through the new sunset date of December 31, 2024. This amended regulation disallows any credit or refund for taxes paid from the original sunset date through the effective date of Public Act 101-0629 (February 5, 2020)." 

The Department adopted amendments to the rules governing Practice and Procedure for Hearings before the Illinois Department of Revenue to clarify the Department's authority to grant late discretionary hearings for notices of deficiency issued under the Illinois Income Tax Act.

The Department amended the Telecommunications Excise Tax rules. The Department described the amendments as follows:

"The rulemaking amends 86 Ill. Adm. Code 495, Telecommunications Excise Tax, by adding two new sections: Section 495.111, Registration of Retailers, and Section 495.112, Revocation of Certificate of Registration. The Telecommunications Excise Tax Act and Part 495 do not contain provisions regarding Registration of telecommunications retailers. Under the Act, telecommunications retailers are responsible for collecting and remitting the tax and filing returns. The rulemaking sets forth information to be included on an application for certificate of registration, circumstances under which the Department may decline to issue a certificate, and an opportunity for hearing after such a declination. Section 495.112 permits the Department to revoke a certificate of registration if a retailer is in violation of the Act or rules after notice and an opportunity for hearing."

No new tax-related cases this week.

No new decisions have been posted by the Tribunal this week.

One new case may be of interest. CSX Transportation, Inc. v. Department of Revenue. The case is a protest of an income tax audit. At issue is the proper determination of the tax liability of the unitary business group for 2017. You will recall that 2017 was the first year during which companies that have differing statutory apportionment formulas were part of the same combined return.

In addition to protesting the Department's audit modification of the manner in which CSX apportioned income to Illinois, CSX also protests the notice of deficiency because, contrary to the requirements of the Taxpayer Bill of Rights and the Illinois Income Tax Act, the Department's "Explanation of Adjustments" didn't provide an explanation. The Department's so-call explanation was just the usual meaningless boilerplate that the Department uses in its notices - that's my characterization of the argument by CSX not a quote from the protest. (The lack of any cogent and meaningful explanation of the Department's adjustments has been a pet peeve of mine for years.)

CSX is represented by Breen Schiller of Tax Institute member law firm Eversheds Sutherland.

The Cook County Assessor issued a 2019 Sales Ratio Study that he commissioned from the Professional Consulting Services of IAAO, LLC. The company is a wholly owned subsidiary of the International Association of Assessing Officers.

The Civic Federation has a recent blog post, Evaluating Ideas for Homeowner Property Tax Relief, that provides a thoughtful summary of various approaches to property tax relief in Illinois and Cook County.

The Civic Federation blog post discussed above references a new publication of the Lincoln Institute of Land Policy entitled, Property Tax Relief for Homeowners.