April 1: House third reading deadline for Senate bills and Senate third reading deadline for House bills.
April 8: General Assembly spring session scheduled adjournment.
Save the dates -
April 20 - Webinar - Introduction to Illinois sales taxes and an Illinois update. 2 hours of Illinois CPE and CLE submitted for approval. Free to Tax Institute members. Register at this link
April 25 - Tax Institute Quarterly meeting - 2:00 - 4:00 pm. We are planning a hybrid meeting with an in person option at our Chicago offices and a webcast for those who don't wish to attend in person. I'll present a legislative wrap up - the General Assembly is scheduled to adjourn on April.
Special Guest - Roger Koss - Head of the IDOR Audit Bureau who will give an update and answer questions (invited).
March 25, 2022
State and Local Tax
This Week
Illinois General Assembly
The House and Senate returned to Springfield on Monday and are scheduled to be in session in Springfield, including the weekend of April 2 and 3, through the scheduled adjournment date of April 8.. We have heard rumors that this weekend's session days may be cancelled.
The House Revenue committee met on Thursday. Representative Tarver substituted for Chairman Zalewski who has not been in Springfield this week. Representative Tarver took a rollcall of the members present and then recessed the committee without acting on any legislation.
The House Revenue Committee also met online this morning at 9:00
The following bills were approved by the committee and moved to the floor:
SB 1693 - As introduced - Creates the Illinois Industrial Biotechnology Partnership Act. Establishes the Industrial Biotechnology Public-Private Partnership as a State-sponsored board consisting of specified members to promote and market Illinois as a destination for research, development, and commercialization for industrial biotechnology. Provides for the appointment of members to the Partnership. Provides requirements concerning meetings and compensation. Provides for administrative and other support to the Partnership. Provides for duties and funding of the Partnership. Provides reporting requirements. Provides for the adoption of rules. Defines terms. Amends the Department of Commerce and Economic Opportunity Law. Creates the Industrial Biotechnology Workforce Development Grant Program. Provides that the Program shall provide grants for the purpose of fostering a well-trained and well-skilled industrial biotechnology workforce. Provides funding and eligibility requirements. Provides reporting requirements. Provides for the adoption of rules. Amends the State Finance Act. Creates the Industrial Biotechnology Human Capital Fund and Industrial Biotechnology Capital Maintenance Fund as special funds in the State treasury for specified purposes. Provides for funding of each Fund. Allows the use of Fund moneys for specified grants. Provides reporting requirements. Provides for the adoption of rules. Amends the Economic Development for a Growing Economy Tax Credit Act. Requires the Department of Commerce and Economic Opportunity to evaluate the tax credit program regarding employment and investment criteria to ensure that the program is applicable to both small startup firms as well as existing companies in the industrial biotechnology field.
As amended - Replaces everything after the enacting clause. Reinserts the provisions of the engrossed bill with changes. Makes changes to the membership of the Industrial Biotechnology Public-Private Partnership. Provides that members shall be appointed within 90 days (instead of 30 days) after the effective date of the Act. Provides that the Partnership shall develop and direct efforts to attract companies to use existing Illinois facilities for research, development, and pre-commercialization activities. Provides that the Department of Commerce and Economic Opportunity, or a non-profit organization designated by the Department of Commerce and Economic Opportunity, shall provide administrative and other support to the Partnership (instead of the Department of Commerce and Economic Opportunity alone). Provides that the Partnership is dissolved on December 31, 2025. Provides that certain grant programs created in the engrossed bill are subject to appropriation. Contains provisions concerning private matching funds necessary for the expenditure of funds appropriated to the Department of Commerce and Economic Opportunity for the use of the Industrial Biotechnology Public-Private Partnership. Provides that reports concerning the grant programs established in the bill are due on or before January 31 of the year following the fiscal year in which the moneys are allocated. Removes amendatory provisions requiring the Department of Revenue to evaluate the Economic Development for a Growing Economy Tax Credit Program. Makes conforming and other changes.
SB 3685 - 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 - 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.
As of this morning the House Revenue committee has not yet scheduled a hearing for next week.
The Senate Revenue committee met this week.
The following bill was voted out of committee to the floor:
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.
The Senate Revenue committee is scheduled to meet next week on April 5 at 4:30. Here is a link to the bills that have so far been posted for the committee. It is likely that additional legislation will be posted for committee consideration prior to the hearing.
One new tax-related bill was introduced in the House this week:
HB 5732 -Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning 30 days after the effective date of the amendatory Act and continuing through the last day of the fourth month after the effective date of the amendatory Act, the taxes imposed by those Acts do not apply to the proceeds of sales of: motor fuel; gasohol; majority blended ethanol fuel; biodiesel; and biodiesel blends. Amends the Motor Fuel Tax Act. Provides that no tax shall be imposed under this Act beginning 30 days after the effective date of the amendatory Act and continuing through the last day of the fourth month after the effective date of the amendatory Act. Amends the Illinois Administrative Procedure Act to authorize emergency rulemaking. Effective immediately.
House and Senate amendments filed since the last newsletter:
HB 1091 - Senate amendment 1 - Replaces everything after the enacting clause. Creates the Illinois Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act. Requires online marketplaces to collect and disclose to consumers contact and other information about high-volume third-party sellers. Provides exceptions. Provides that if the Attorney General has reason to believe that any person has violated the Act, the Attorney General may bring an action to restrain by preliminary or permanent injunction the use of such a method, act, or practice. Amends the Criminal Code of 2012. Extends the repeal of the RICO Article of the Code from June 11, 2022 to June 11, 2027. Creates the offense of organized retail crime. Defines the offense and establishes penalties. Provides that a retail mercantile establishment that is a victim of a violation of retail theft, organized retail crime, financial institution fraud or related offenses, or looting shall have certain rights. Provides that an issuer shall not provide a debit or credit cardholder or a person who utilizes an account number or code the value in any manner of any item purchased with intent to defraud the issuer or a person providing an item of value. Provides that a RICO violation involving felony offenses of organized retail crime shall be sentenced as a Class 1 felony, and the sentence imposed may include restitution. Amends the Statewide Grand Jury Act. Provides that a Statewide Grand Jury may investigate, indict, and prosecute violations of organized retail crime. Effective immediately.
Tax-related bills that passed both chambers:
SB 3174 - Amends the Revised Uniform Unclaimed Property Act. Allows the administrator to deliver property or pay the amount owing to a person without the person filing a claim if the value of the property that is owed the person is $5,000 (rather than $2,000) or less. Allows the administrator to waive a specific requirement and pay or deliver property directly to a person if the property has a value of less than $2,000 (rather than $500). Allows an heir or agent who files an unclaimed property claim in which the decedent's property does not exceed $250 (rather than $100) to submit an affidavit attesting to the heir's or agent's capacity to claim in lieu of submitting a certified copy of the will to verify a claim. Provides that an affidavit is not required to include a copy of the decedent's death certificate if other evidence of the death of the owner is available. Makes conforming changes. Effective immediately. This bill is an initiative of the Treasurer.
SB 3661 - As introduced - Amends the Motor Fuel Tax Law. Provides that only railroad companies, street, suburban or interurban railroad companies, and pipeline companies are required to report deliveries of motor fuel (currently, railroad companies, street, suburban or interurban railroad companies, pipeline companies, motor truck or motor tank car companies, water transportation companies, and every person transporting reportable motor fuel to a point in this State from a point without this State). Effective immediately.
As amended in the Senate - 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 is a Department of Revenue initiative.
HB 4362 - 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. This bill is a Department of Revenue initiative.
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.
Tax-related bills that passed the Senate:
SB 1146 - This is a shell bill that makes a technical change to the Invest in Kids Act. The bill passed out of the Senate as a shell, is now in the House, and was yesterday still as a shell bill assigned to the House Revenue committee. I'm watching this bill because it is poised to be used a vehicle for something tax-related.
HB 4362 - See above list of bills that passed both chambers this week.
Tax-related bills that passed the House:
SB 3069 - This bill previously passed the Senate and has been sent back to the Senate for concurrence in the House amendment.
As introduced - Amends the Property Tax Code. Provides that condominium associations and homeowner associations may also file appeals with the Property Tax Appeal Board. Effective immediately.
As amended in the House - 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 3174 - See above. The bill has passed both chambers.
SB 3189 - This bill previously passed the Senate and has been sent back to the Senate for concurrence in the House amendment.
As introduced - Amends 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.
As amended in the House - 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 - See above. The bill has passed both chambers.
HB 4284 - See above. The bill has passed both chambers.
Rulemaking
The April 1 edition of the Illinois Register did not contain any proposed or adopted rulemakings by the Department of Commerce and Economic Opportunity or the Department of Revenue.
Court cases
No new tax related decisions this week.
Tax Tribunal
No new decisions have been posted by the Tribunal this week.
