The House and Senate are not scheduled to return to Springfield until the veto session. There are rumors that the General Assembly may return to Springfield the week of August 30 to address energy legislation and to possibly address legislative redistricting changes necessitated by the release of census numbers by the U.S. Census Bureau (you will recall that the legislative redistricting map that passed at the end of the legislative session was not based on final U.S. Census data.

Recently introduced legislation:

HB 4129 - Zalewski - Amends the Parking Excise Tax Act. Provides that the term "purchase price" does not include fees or charges paid to or retained by a booking intermediary and not remitted to the operator.

Staats comments: This legislation appears designed to make it clear that IDOR cannot assert that fees or charges retaining by booking intermediaries are subject to the Parking Tax. This would avoid the kinds of fights over fees and charges that have occurred throughout the country with regard to charges and fees retained by booking intermediaries under hotel taxes. We support this legislation.

HB 4130 - Zalewski - If and only if Senate Bill 508 of the 102nd General Assembly becomes law, amends the Property Tax Code. Repeals provisions added by Senate Bill 508 of the 102nd General Assembly concerning levy adjustments for certificates of error, court orders, and final administrative decisions of the Property Tax Appeal Board. Provides that a taxing district may adopt a levy to recapture revenue lost due to refunds issued pursuant to a decision of the Property Tax Appeal Board, an assessment or exemption decision of the Department of Revenue, a court order, or an administrative decision of a local assessment official. Provides that those recapture levies are not included in the taxing district's aggregate extension base under the Property Tax Extension Limitation Law. Amends the School Code to make conforming changes. Effective immediately or on the date Senate Bill 508 of the 102nd General Assembly takes effect, whichever is later.

Staats comments: As I read the bill, what it is designed to do is protect those taxpayers who have received refunds because their property was over-assessed and, hence over-taxed, from having to pay back a portion of that refund via higher property taxes in a subsequent year because the taxing bodies are allowed to have “recapture” levies in subsequent years to make up for the refunds.  We support this legislation. This legislation would correct a flaw in SB 508.

As of this morning, there were 256 bills that passed the General Assembly at the end of the spring session that are awaiting action by the Governor.

The following tax-related legislation from the spring session was signed by the Governor over the past week.

SB 0058 (P.A. 102-0353) - This legislation removes the $10,000 cap on automobile trade-ins effective January 1, 2022. The legislation also reduces the license fee for certain trailers (think boat trailers and small utility trailers) to $36 from $118. The vehicle use tax on private party sales is increased.

SB 1721 (P.A. 102-0363) - Amends the Property Tax Code. 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 August 20 edition of the Illinois Register did not contain any proposed or adopted rulemakings by the Illinois Department of Revenue or by the Department of Commerce and Economic Opportunity.

No new tax-related court cases were released this week..

None of the new cases raise unique issues.

The Department is taking applications for Chief Economist. Information about the job is available at this link

The Multistate Tax Commission recently approved "Proposed Revisions to the Statement of Information Concerning Practices of the Multistate Tax Commission and Supporting States under Public Law 86-272."