May 18: I'm presenting an Illinois legislative update to the quarterly meeting of the Illinois CPA Society State and Local Tax Committee.
May 26: I'm presenting an Illinois legislative update to the Women's Property Tax Association along with Mark Armstrong, the Kane County Supervisor of Assessments.
June 16: I'm presenting an Illinois update at the Chicago Bar Association's Annual State and Local Tax Update. Information and registration is available at this link
General Assembly fall veto session: Dates TBD
May 13, 2022
State and Local Tax
This Week
Illinois General Assembly
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.
Rulemaking
The May 13 edition of the Illinois Register did not contain any proposed or adopted rulemakings by the Department of Commerce and Economic Opportunity or proposed rulemaking by the Department of Revenue.
Today's Illinois Register contains two adopted rulemakings by the Department of Revenue. The Retailers' Occupation Tax rules are amended to update the rules to conform to legislation enacted in the 2021 legislative session. The Department described the rulemaking as follows:
"Amends Section 130.120(vv) Nontaxable Transactions and Section 130.311(b) Drugs, Medicines, Medical Appliances and Grooming and Hygiene Products – This amended regulation implements Public Act 102-0016 and represents a change in the sunset provisions of the menstrual pads, tampons, and menstrual cups exemption by extending it through the new sunset date of December 31, 2026. Previously, the exemption was to sunset by operation of law on August 18, 2021. Additionally, this amendment implements Public Act 102-0004 by changing references to “urine testing materials” to “blood sugar testing materials” to reflect the statutory language."
The Department of Revenue also adopted new Part 515, Water and Sewer Assistance Charge rules. This rulemaking creates new rules to implement the Water and Sewer Financial Assistance Act, enacted into law in 2021 by P.A. 102-0262. As explained by the Department:
"This Act establishes a low-income water and sewer assistance program that allows water and sewer providers to voluntarily participate by assessing each of its customer accounts a charge to be paid into a fund to benefit eligible applicants. The rules provide key definitions, the nature of the charge, the rates, the process for filing a return with the Department, and the sections of the Retailers’ Occupation Tax Act that are incorporated by reference into the Water and Sewer Assistance Act."
Court cases
No new cases this week.
Tax Tribunal
No new decisions have been posted by the Tribunal this week.
As of this morning, no new cases have been filed with the Tribunal this week. This year, only 42 new cases have been filed with the Tribunal.
Illinois Department of Revenue
The Department issued a series of Informational Bulletins, beginning last Friday after I sent out last week's newsletter.
Informational Bulleting FY2022-22 addresses the suspension of the inflation adjustment to the Motor Fuel Tax rate for the six month period from July 1, 2022 through December 31, 2022.
Informational Bulletin FY 2022-21 - addresses the "Part B rate" of the Motor Fuel Use Tax. Which, as I understand the bulletin, has not changed for the remainder of this calendar year as a result of the spring session legislation suspending the inflation adjustment tot he Motor Fuel Tax rate.
As explained by the Department "[t]he Illinois Department of Revenue is required to establish the 'Part B' rate of the Motor Fuel Use Tax for diesel fuel, gasoline, gasohol, liquefied petroleum gas (LPG, commonly known as propane), compressed natural gas (CNG), and liquefied natural gas (LNG)."
The Department further explains in the Informational Bulletin that '[t]he 'Part B' rate is established by the Department as of January 1, of each year using the average selling price per gallon of motor fuel sold in Illinois during the previous 12 months and multiplying it by 6.25% to determine the cents per gallon rate. 35 ILCS 505/13a"
Informational Bulletin 2022-16 provides a listing of the sales and excise tax incentives for Illinois electric vehicle production under the Reimagining Electric Vehicles in Illinois (REV Illinois) Act (P.A. 102-669)
Publications
The Institute on Taxation and Economic Policy, a left-leaning organization, is not happy that on a 90-5 vote the U.S. Senate approved a non-binding measure that would authorize immediate expensing of research expenses in the year in which the expenses are incurred, rather than deducting the costs over 5 years. Most Senate Democrats Join Republicans in Calling for Corporate Tax Break. I suppose the definition of "corporate tax break" is in the eye of the beholder. At the end of the day, the expenses are deducted, whether in the year incurred or over 5 years.
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