The House and Senate adjourned the spring legislative session early last Saturday morning. Neither chamber is 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 following is my quick summary of the tax bills that passed both houses of the General Assembly during the spring session:

SB 157 - This bill ended up as the tax-related portion of the final budget legislation. I summarized this bill in the special edition of the newsletter last Saturday morning

SB 1711 Amends the Historic Preservation Tax Credit

SB 1975 - House amendments 3 and 4 became the bill:

House amendment 3 - Replaces everything after the enacting clause. Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that, for levy years 2022 and later, the taxing district's aggregate extension base is the greater of (A) the district's last preceding aggregate extension limit or (B) the district's last preceding aggregate extension, subject to certain adjustments. Provides that the term "aggregate extension limit" means the district's last preceding aggregate extension if the taxing district had utilized the maximum limiting rate permitted without referendum for each of the 5 immediately preceding levy years. Provides that the maximum reduction under the General Homestead Exemption is $10,000 in counties with 3,000,000 or more inhabitants and counties that are contiguous to a county of 3,000,000 or more inhabitants and $6,000 in all other counties (currently, $10,000 in counties with 3,000,000 or more inhabitants and $6,000 in all other counties). Provides that the maximum reduction under the senior citizens homestead exemption is $8,000 in counties with 3,000,000 or more inhabitants and counties that are contiguous to a county of 3,000,000 or more inhabitants and $5,000 in all other counties (currently, $8,000 in counties with 3,000,000 or more inhabitants and $5,000 in all other counties). In provisions concerning the homestead exemption for veterans with disabilities, makes changes concerning the surviving spouse. Provides that the interest rate under the Senior Citizens Real Estate Tax Deferral Act is reduced from 6% to 4%. Amends the School Code. Contains provisions concerning interfund transfers and disclosure of cash reserve balances. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois to require the Department of Revenue to conduct a study concerning the homestead exemption for veterans with disabilities. Effective immediately.

SB 3069 - House committee amendment 1 became the bill - Replaces everything after the enacting clause. Provides that an association may, on behalf of all or several of the owners that constitute the association, file an appeal to the Property Tax Appeal Board or intervene in an appeal filed by a taxing body. Defines "association" as: (1) a common interest community association; (2) a unit owners' association; or (3) a master association.

SB 3097 - House committee amendment 1 became the bill - Replaces everything after the enacting clause. Amends the Property Tax Code. In provisions concerning the scavenger sale, repeals provisions added by Public Act 102-528 that require the county clerk to mail notice of the expiration of the period of redemption within 30 days from the date of the filing of addresses with the clerk. Requires the purchaser of the certificate of purchase to prepare the notice of the expiration of the period of redemption and deliver it to the clerk of the Circuit Court not more than 6 months and not less than 111 days prior to the expiration of the period of redemption. Requires the clerk to mail the notices not less than 3 months prior to the expiration of the period of redemption. Effective immediately.

SB 3189 - House committee amendment 1 became the bill - Replaces everything after the enacting clause. Amends the Property Tax Code. Provides that certain property located in Bloom, Bremen, Calumet, Rich, Thornton, or Worth Township may be certified as southland reactivation property. Provides that, beginning with the first tax year after the property is certified as southland reactivation property and continuing through the twelfth tax year after the property is certified as southland reactivation property, the property shall be valued at 50% of the base year equalized assessed value. Provides that the base year is the last tax year prior to the date of the application for southland reactivation designation during which the property was occupied and assessed and had an equalized assessed value. Sets forth the maximum aggregate tax liability for property that has been certified as southland reactivation property. Effective immediately.

SB 3661 - Senate committee amendment became the bill - Replaces everything after the enacting clause. Amends the Motor Fuel Tax Law. Repeals provisions concerning reports by railroad companies, and street, suburban, or interurban railroad companies. Makes a conforming change. This bill was a Department of Revenue initiative.

SB 3685 - This bill as it passed the House and Senate contains a number of technical initiatives of the Illinois Department of Revenue.

As introduced - Amends the Property Tax Code. Provides that courses and training for the Certified Illinois Assessing Officer certificate shall be held in a manner and format deemed appropriate by the Department of Revenue (currently, required to be held at various convenient locations throughout the State). Removes a requirement that the hearing concerning the tentative equalization factor shall be held in either Chicago or Springfield. Effective January 1, 2023.

As amended in the House - Replaces everything after the enacting clause. Reinserts the provisions of the engrossed bill. Adds provisions amending the Motor Fuel Tax Law. In provisions allowing tax-free sales of dyed diesel fuel for non-highway purposes, provides that the sale must be made by the licensed distributor to the end user of the fuel who is not a licensed distributor (currently, someone who is not a licensed distributor). Adds provisions amending the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, on and after January 1, 2023, returns for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of the State are required to be filed electronically. Effective January 1, 2023, except that provisions amending the Motor Fuel Tax Law take effect upon becoming law.

SB 3832 - This bill was an initiative of the State Treasurer - 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. The bill was amended in the Senate to make it effective immediately.

SB 3895 - Amends Property Tax Code provisions dealing with reductions in assessed value.

HB 4132 - Amends the Parking Excise Tax to provide an exemption for parking areas and garaged operated for the use of attendees vendors or employees of the Illinois State Fair and the DuQuoin State Fair. As amended in the Senate it also provides that the parking tax does not apply to: (1) a parking area or garage operated by the State, a State university, or a unit of local government; (2) the purchase of a parking space by the State, a State university, or a unit of local government for use by employees of the State, State university, or unit of local government; (3) a parking space leased to a governmental entity for use by the public; or (4) a parking area or garage owned and operated by a person engaged in the business of renting real estate and used by the lessee to park motor vehicles, recreational vehicles, or self-propelled vehicles for the lessee's own use. Effective immediately.

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.

HB 4362 - This bill was a Department of Revenue initiative triggered by an Auditor General report finding - Amends the Illinois Department of Revenue Sunshine Act. Provides that the Department of Revenue shall submit for publication (currently, publish) quarterly in the Illinois Register an index of any informal rulings, opinions or letters issued by the Department of Revenue during the quarter and required to be made available. Effective January 1, 2023.

HB 5532 - As introduced - Amends the Property Tax Code. Provides that with the exception of a county or taxing district acquiring tax certificates to property, all purchasers or assignees of a property at a tax sale shall pay the clerk postage plus the sum of $10 dollars (currently, the purchaser or assignee). Provides that not less than 1 month (currently, 3 months) nor more than 6 months prior to the expiration of the period of redemption, the purchaser or his or her assignee shall prepare and deliver to the clerk of the Circuit Court of the county in which the property is located, the notice provided for, together with the statutory costs for mailing the notice by certified mail, return receipt requested. Provides that notwithstanding any provision to the contrary, all properties owned and held for future development by specified entities are exempt from property taxes. Provides requirements to claim the exemption. Specifies the County of Cook d/b/a Cook County Land Bank as an entity exempt from property taxes. Provides that when property is owned and held by a specified entity, then excludes them from needing to file an application with the county board of review or board of appeals. Provides that the decision of the board of review is final with regards to exemptions to the specified entities. Effective immediately.

As amended in the House - Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with changes. Adds the South Suburban Land Bank and Development Authority and the Northern Illinois Land Bank Authority to the list of entities whose property is exempt if it is held for future development. Makes a conforming change concerning final decisions of the board of review. Makes various formatting changes. Effective immediately.

The April 15 edition of the Illinois Register not contain any proposed or adopted rulemakings by the Department of Commerce and Economic Opportunity or adopted rulemakings by the Department of Revenue.

Today's Illinois Register contains one proposed rulemaking by the Illinois Department of Revenue amending the income tax rules. The Department described the proposed amendments as follows:

"This rulemaking amends Section 100.3200 to remove the stipulation regarding treaties with foreign countries in determining whether a taxpayer is subject to tax. For purposes of determining whether a taxpayer is taxable in another country, such that either the throw-back or throw-out rules in IITA section 304 would apply, the current rule contains a restriction that the taxpayer will not be considered subject to tax if a treaty exempts its activities from taxation. Illinois is unique in this regard, and this policy in contrary to the Multistate Tax Commission model rule provision. This amendment would align section 100.3200 with the MTC model rule." 

No new tax related decisions this week.

No new decisions have been posted by the Tribunal this week. As of this morning, only one new case has been filed with the Tribunal since April 1. The case is protest of a sales tax audit of a liquor business that does not raise any unique issues.

April 25 - Tax Institute Quarterly meeting

RSVP to Keith at the link

The Civic Federation published a recent blog post entitled Effective Property Tax Rates in South Cook County for Tax Years 2005 to 2019. As explained in the post "Effective property tax rates are a measure of property tax burden for homeowners and businesses. They translate the tax rates on property tax bills into “effective” rates that reflect the percentage of full market value that a property owed in taxes for a given year. More specifically, multiplying the market value of a home or business property by the applicable effective tax rate provides an estimate of the property taxes due on that property in a given tax year. For example, a property with a market value of $300,000 and an effective tax rate of 2% would have an estimated property tax liability of $6,000."

The Illinois General Assembly bi-partisan Commission on Government Forecasting and Accountability issued its FY 2023 Capital Plan Analysis