The House was scheduled to return to Springfield on February 2. Speaker Welch announced the cancellation of all but one previously scheduled February session day. The House will return to Springfield on February 10. The plan is that the House will return on February 10 to vote on a proposal that will allow for some remote activities. It appears that the members will be asked to adopt a proposal that will authorize committee hearings to be held remotely.

The Senate was scheduled to return to Springfield on January 26. The Senate cancelled this week's session days. The Senate is next scheduled to return to Springfield on February 9..

As of this morning, complete House and Senate committee assignments have not been made public. Speaker Welch announced House committee Chairs. Representative Zalewski will return as the Chairman of the House Revenue committee.

The flood of new legislation has begun. As I have done in the past, I will list every tax-related bill that is introduced with the exception of TIF extensions and proposed income tax checkoffs. Most of these bills won't end up going anywhere, but at this stage we don't know which bills will get traction and which will not.

No Senate bills have been posted yet, but I've heard that will change later today. The Senate only formally introduces bills after they have been "read" a first time in perfunctory session. The first Senate perfunctory session is scheduled for later this morning.

HB 229 - Meier - Creates the Illinois Renewable Fuel Standards Act. Provides that diesel fuel must contain at least a stated percentage of biodiesel fuel oil by volume on and after a specified date. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Makes changes concerning incentives for biodiesel to provide that the current exemptions for 100% biodiesel and biodiesel blends with more than 10% but no more than 99% biodiesel sunset on December 31, 2021. Provides that, with respect to 100% biodiesel and biodiesel blends with more than 20% but no more than 99% biodiesel, the taxes do not apply to proceeds of sales made on or after January 1, 2022 and on or before June 30, 2024 but apply 100% of the proceeds of sales made thereafter. Effective immediately, except that provisions creating the Illinois Renewable Fuel Standards Act take effect on July 1, 2021.

HB 238 - Harper - Amends the State Finance Act to create the Trauma Response Fund as a special fund in the State treasury. Amends the School Code. Requires school boards to develop a trauma response protocol that shall be implemented in response to a traumatic event at a school, including, but not limited to, a shooting at the school. Sets forth various requirements for the protocol, including response by hospitals, trauma intervention services, and community engagement. Provides that all moneys in the Trauma Response Fund shall be paid as grants to school districts to implement the trauma response protocol. Amends the University of Illinois Hospital Act and Hospital Licensing Act to make conforming changes. Amends the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act. Imposes a 1% surcharge on firearm ammunition, which shall be deposited into the Trauma Response Fund. Effective immediately.

HB 274 - Yingling - Amends the Common Interest Community Association Act. Defines a "retirement community" as a community intended and operated: (i) for occupancy by persons 55 years of age or older; and (ii) with at least 80% of the occupied units occupied by at least one person 55 years of age or older. Provides that the real estate taxes on a unit in a retirement community shall be assessed on the unit and paid by the unit owner. Provides that only real estate taxes on a common area may be included in an assessment. Provides that a common interest community shall provide a detailed breakdown of all costs in an association assessment, including a breakdown of real estate tax information. Effective immediately.

HB 281 - Meyers-Martin - Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that "redevelopment project costs" include costs payable to businesses located within the redevelopment area that have experienced business interruption or other adverse conditions directly or indirectly attributable to the COVID-19 public health emergency. Provides that the costs may be reimbursed in the form of grants, subsidies, or loans and that the municipality may establish procedures for the payment of such costs, including application procedures, grant or loan agreements, certifications, payment methodologies, and other accountability measures that may be imposed upon participating businesses. Defines "costs of business interruption".

HB 283 - Flowers - Creates the Financial Transaction Tax Act. Beginning January 1, 2022, imposes a tax on the privilege of engaging in a financial transaction on any of the following exchanges or boards of trade: the Chicago Stock Exchange, the Chicago Mercantile Exchange, the Chicago Board of Trade, or the Chicago Board Options Exchange. Provides that the tax is imposed at a rate of $1 per transaction for all transactions for which the underlying asset is an agricultural product, a financial instruments contract, or an options contract. Provides that transactions executed via open outcry that are physically filled on the exchange floor are exempt from the tax. Provides that the term "financial transaction" means a transaction involving the purchase or sale of a stock contract, futures contract, swap contract, credit default swap contract, or options contract, but does not include a transaction involving securities held in a retirement account or a transaction involving a mutual fund. Effective January 1, 2022.

HB 284 - Flowers - Amends the Stock, Commodity, or Options Transaction Tax Exemption Act. Provides that a home rule municipality with 1,000,000 or more inhabitants may, by ordinance, levy a tax on stock, commodity or options transactions. Effective immediately.

HB 294 - Willis - Amends the Property Tax Code. Provides that provisions concerning the assessment of wind energy devices apply through assessment year 2035 (currently, 2021). Effective immediately.

HB 313 - Mayfield - Amends the Property Tax Code. With respect to the homestead exemption for persons with disabilities, provides that the property is exempt from taxation if the person with a disability is 55 years of age or older at any point during the taxable year.

HB 315 - DeLuca - Amends the Illinois Income Tax Act. Provides that, from February 1, 2022 through January 31, 2023, the amount transferred from the General Revenue Fund to the Local Government Distributive Fund shall be: (i) 8.5% of the net revenue realized from the tax imposed on individuals, trusts, and estates, and (ii) 9.355% of the net revenue realized from the tax imposed on corporations. Provides that, from February 1, 2023 through January 31, 2024, the amount transferred from the General Revenue Fund to the Local Government Distributive Fund shall be: (i) 9% of the net revenue realized from the tax imposed on individuals, trusts, and estates, and (ii) 9.57% of the net revenue realized from the tax imposed on corporations. Provides that, from February 1, 2024 through January 31, 2025, the amount transferred from the General Revenue Fund to the Local Government Distributive Fund shall be: (i) 9.5% of the net revenue realized from the tax imposed on individuals, trusts, and estates, and (ii) 9.785% of the net revenue realized from the tax imposed on corporations. Provides that, beginning on February 1, 2025, the Treasurer shall transfer each month from the General Revenue Fund to the Local Government Distributive Fund an amount equal to 10% of the net revenue realized from the tax imposed on individuals, trusts, estates, and corporations during the preceding month. Effective immediately.

HB 316 - Mason - 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 January 1, 2022, the tax on gun safes and locks designed to secure firearms is imposed at the rate of 1%. Effective immediately.

HB 318 - Carroll - Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to the contributions made by the taxpayer to the Illinois Education Excellence Fund during the taxable year. Amends the State Finance Act. Creates the Illinois Education Excellence Fund. Provides that moneys in the Fund shall be used for public education purposes. Amends the Counties Code. Provides that the county board may establish a fund in the county treasury to accept contributions for public purposes. Provides that the county may provide for a credit against the taxpayer's property tax liability in an amount equal to the amount of the contribution. Effective immediately.

HB 333 - Yingling - Amends the Property Tax Code. Provides that the maximum reduction for the senior homestead exemption is $9,000 in counties with a population of more than 500,000 but not more than 1,000,000, $8,000 in counties with 3,000,000 or more inhabitants, and $5,000 in all other counties. Provides that the corporate authorities of the City of Chicago or the county board of a county with 3,000,000 or more inhabitants may, by ordinance, increase the maximum reduction for the senior homestead exemption for property under the jurisdiction of that city or county to not more than $9,000. Provides that the maximum reduction for the general homestead exemption is $12,000 in counties with a population of more than 500,000 but not more than 1,000,000, $10,000 in counties with 3,000,000 or more inhabitants, and $6,000 in all other counties. Provides that the corporate authorities of the City of Chicago or the county board of a county with 3,000,000 or more inhabitants may, by ordinance, increase the maximum reduction for the general homestead exemption for property under the jurisdiction of that city or county to not more than $12,000.

HB 336 - Bennett - Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2022, the exclusion amount shall be the applicable exclusion amount calculated under Section 2010 of the Internal Revenue Code, including any deceased spousal unused exclusion amount (currently, the exclusion amount for Illinois estate tax purposes is $4,000,000). Effective immediately.

The Department announced that the 2021 tax filing season begins on February 12.

The Department issued Informational Bulletin FY 2021-15 Sales and Use Tax Exemption for Aircraft Repair and Refurbishment Extended

The City of Chicago recently issued an Information Bulletin dealing with nexus. Samantha Breslow of Tax Institute member law firm Horwood Marcus Berk published an article on the firm's Blog in which she provides an excellent analysis of the Information Bulletin.

Vicki Thomas, the Executive Director of the Joint Committee on Administrative Rules (JCAR) since 1992 is retiring at the end of the week. The attached article discusses Director Thomas's career with JCAR.

The January 22 edition of the Illinois Register - did not contain any new or adopted rulemakings by the Illinois Department of Commerce and Economic Opportunity or the Illinois Department of Revenue.

The January 29 edition of the Illinois Register did not contain any new or adopted rulemakings by the Illinois Department of Commerce and Economic Opportunity or the Illinois Department of Revenue.

The January 29 Illinois Register contains an index of letter rulings issued by the Department during the 2020 calendar year.

Apple filed an amended complaint in their challenge to the City of Chicago streaming tax. Apple is represented by Cate Battin of Tax Institute member law firm McDermott Will & Emery.

No new decisions in tax-related cases this week.

No new decisions were issued by the Tribunal this week. Three new cases were posted this week as of this morning. None of the cases raise unique issues.

The Tax Foundation issued an article on The Drawbacks of State Taxes on Financial Transactions. This article is particularly timely in light of the introduction of HB 283 and HB 284 linked above.

The Tax Foundation also published an article entitled The Impact of a Financial Transactions Tax that discussed the impact of adoption of a financial transaction tax at the federal level.