I plan on taking next week off so there won't be a newsletter next Friday.

The House and Senate are not scheduled to return to Springfield until the veto session. However, if an agreement is reached on energy legislation both chambers will return to Springfield to consider that legislation. Although there is nothing specific of which I am aware at present, it is possible that the House and Senate could also consider other legislation, including tax-related legislation, if they return to Springfield.

The following tax-related bills passed by the General Assembly during the spring legislative session were sent to the Governor this week. The Governor has 60 days in which to act on the bills:

HB 3174 - deals with High Impact Business designation and wind power facilities.

SB 58 - repeals the $10,000 limitation on automobile trade-ins.

SB 338 - amends the Revised Uniform Unclaimed Property Act to require the filing of "negative reports" by certain potential holders of unclaimed property and adds reporting requirements for holders of cryptocurrency.

SB 340 - Amends the Illinois Income Tax Act extend the sunset date for the student assistance contributions credit to December 31, 2024.

SB 508 - provides for a supplemental levy if the issuance of a certificate of error, a court order, or a final administrative decision of the Property Tax Appeal Board results in a refund from the taxing district of a portion of the property tax revenue distributed to the taxing district. Adds procedural requirements for the supplemental levy.

SB 1138 - amends the Home Equity Assurance Act. Provides that the governing commission of a home equity assurance program that levied at least $1,000,000 in property taxes in levy year 2019 or 2020 may not levy any property tax in levy year 2021. Repeals the provisions on January 1, 2025. Amends the Property Tax Code. Provides that, for levy year 2022, the aggregate extension base of a home equity assurance program that levied at least $1,000,000 in property taxes in levy year 2019 or 2020 under the Home Equity Assurance Act shall be the amount that the program's aggregate extension base for levy year 2021 would have been if the program had levied a property tax for levy year 2021. 

SB 1667 - amends the Property Tax Code to provide that certification of the levy by the county clerk may be done electronically.

SB 1721 - as it passed the Senate -  In provisions about delinquent property, provides that a county may take steps necessary (currently, shall take all steps necessary) to acquire title to the property and may manage and operate the property, including, but not limited to, mowing of grass, removal of nuisance greenery, removal of garbage, waste, debris or other materials, or the demolition, repair, or remediation of unsafe structures. Provides costs to be distributed to taxing districts, including operation and maintenance costs and all costs associated with county staff and overhead used to perform the duties of the trustees. Reduces the maximum penalty bids for the annual tax sale from 18% to 12%. In provisions about redemption of property, limits the assessments of penalties from every 6 months to 12 months. Makes conforming changes. Amends the Counties Code and Illinois Municipal Code. Modifies the requirements to have a circuit court declare property abandoned. The House amended the bill to reduce the maximum penalty bids for the annual sale from 12% to 9%.

SB 2066 - provides that, beginning January 1, 2020 and through December 31, 2020, sales of tangible personal property made by a marketplace seller over a marketplace for which tax is due but for which use tax has been collected and remitted to the Department of Revenue by a marketplace facilitator are exempt. Provides that the term "marketplace facilitator" does not include any person licensed under the Auction License Act, other than any person who is an Internet auction listing service. Amends the Leveling the Playing Field for Illinois Retail Act. Provides that certified service providers who collect and remit taxes on behalf of retailers may claim the retailers' discount with respect to those taxes. Provides that the retailer is not entitled to the discount with respect to those taxes.

SB 2244 - amends the Senior Citizens Real Estate Tax Deferral Act. Provides that the income limitation under the Act is $65,000 for tax years 2022 through 2025 and $55,000 for tax year 2026 and thereafter (currently, $55,000). Provides that, for tax years 2022 through 2025, the total amount of any such deferral shall not exceed $7,500 per taxpayer in each tax year (currently, $5,000). Provides that, beginning again in tax year 2026, the total amount of any such deferral shall not exceed $5,000. Effective immediately.

SB 2531 - this is the Chamber's federal SALT cap workaround legislation for partners of partnerships and S corporation shareholders.

Last Friday I missed an adopted rulemaking of the Illinois Department of Revenue that was published in the June 25 edition of the Illinois Register. The Illinois Department of Revenue adopted amendments to its administrative hearings rules.

The Department of Revenue explained the amendment as follows: "Section 200.175 of the Department's Administrative Hearings Rules is being amended to clarify that the Department has the authority to grant late discretionary hearings for Notices of Deficiency issued under the Income Tax Act in the same manner as Notices of Tax Liability issued under the Retailers' Occupation Tax Act. The authority to grant late discretionary hearings for Notices of Deficiency issued under the Income Tax Act was provided in P.A. 97-1129."

The July 2 edition of the Illinois Register contains one proposed rulemaking by the Illinois Department of Revenue amending the Retailers' Occupation Tax rules. The Department describes the rulemaking as follows: "This amended regulation increases the presumed average cost of free meals provided to employees for purposes of establishing employers' Use Tax liability from $0.75 to $3.50 to more accurately reflect true costs. This amended regulation also specifies tax is to be paid at the rate that would have been imposed when the employer acquired the goods from the supplier (generally low rate for groceries as the food was not initially purchased as food for immediate consumption), as this would be the taxable moment for these transactions. The presumed average cost of free meals has not been increased since 1977. The new amount was determined by adjusting the old amount for inflation."

Today's Illinois Register does not contain any rulemakings by the Department of Commerce and Economic Opportunity.

Sunnyside Elgin Apartments, LLC v. Miller deals with whether condominium associations, townhouse associations and homeowner associations have standing to to object to property taxes levied against individual owners. The appellate court ruled that they do have standing.

In at least three cases, the trial courts found that these associations lacked standing. In one case, the trial court concluded that the associations have associational standing.

Plaintiffs in this case filed a tax-objection complaint against the McHenry County Collector. A school district intervened and contended that associations lack standing to file tax objection cases because they don't actually pay the property taxes.

The appellate court construed the applicable statutes and concluded the associations do have standing to bring a case objecting to property taxes.

The Department issued the 2020 Cook County Final Multiplier

The Illinois Department of Revenue issued Compliance Alert to Local Governments. The Compliance Alert is entitled "Clarification issued to municipalities with business districts regarding proper reporting of addresses.

The Illinois Auditor General issued its Compliance Examination for the two year period ending June 30, 2020.

The latest edition of the Illinois Chamber's Business Leader magazine is available in digital format.

The Tax Foundation published an article entitled "State and Local Tax Structure Has a Critical Impact on Corporate Tax Burdens."

The Governor's Office of Management and Budget recently issued its May 2021 Report to the Legislative Budget Oversight Commission.

The Lincoln Institute of Land Policy recently released the 50-State Property Tax Comparison Study For Taxes Paid in 2020. Notably, Chicago had the second highest effective property tax rate on $1-million commercial property. The report also states that Chicago is the 5th highest city with respect to the study's commercial vs. homeowners ratio.

The Illinois Chamber is returning to its traditional Annual Luncheon & Reception format with its September 30^th get together at the Palmer House in Chicago. This year’s Keynote Speaker is Holly Sullivan, VP of Worldwide Economic Development, Amazon.