I am joined by Brad Wilhelmson of KPMG and we are making a presentation on recent Illinois legislation to the Chief Tax Officer Roundtable of the Chicago chapter of TEI.
The Chicago Tax Club is presenting a webinar on Transfer pricing issues. Here is link for registration.
September 8: Save the date - Next quarterly meeting of the Tax Institute. The meeting will feature a discussion of unclaimed property issues with Allen Mayer, Chief of Staff for the Illinois Treasurer, Jennifer Waryjas of Jones Day and Troy Wangen of True Partners. email Keith to register
September 30: Illinois Chamber of Commerce Annual meeting. We will be holding our annual meeting at the Palmer House Hilton Chicago from 11:00 - 1:30. Registration is available at this link
October 19-21: First week of the House and Senate fall veto session.
October 26-28: Second week of the House and Senate fall veto session.
August 13, 2021
State and Local Tax
This Week
Illinois General Assembly
The House and Senate are not scheduled to return to Springfield until the veto session.
As of late yesterday, there were 328 bills awaiting action by the Governor.
The following tax-related legislation from the spring session was signed by the Governor over the past week.
HB 453 (P.A. 102-0265) - Amends the Property Tax Code. Provides that any taxing district that has an aggregate property tax levy of more than $5,000,000 for the applicable levy year shall make a good faith effort to collect and electronically publish data from all vendors and subcontractors doing business with the taxing district as to whether the vendor or subcontractor is a minority-owned, women-owned, or veteran-owned business or whether the vendor or subcontractor is a small business. Preempts the concurrent exercise of home rule powers. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
SB 338 (P.A. 102-0288) - Amends the Revised Uniform Unclaimed Property Act. Changes the definition of "virtual currency". Provides that a money order is presumed abandoned if it is unclaimed by the apparent owner 3 (rather than 7) years after issuance. Provides that virtual currency is presumed abandoned if it is unclaimed by the apparent owner 5 years after the last indication of interest in the property. Provides that a business association who has no reportable property shall so report to the administrator under specified circumstances. Provides that the administrator does not need to notify the Department of Revenue of the names or social security numbers of apparent owners of abandoned property if the administrator reasonably believes that the Department of Revenue will be unable to provide information that would provide sufficient evidence to establish that the person in the Department of Revenue's records is the apparent owner of unclaimed property in the custody of the administrator. Includes a provision regarding identification of apparent owners of abandoned property using other State databases. Provides that if property reported to the administrator is virtual currency, the holder shall liquidate the virtual currency and remit the proceeds to the administrator. Makes changes to provisions regarding: when tax-deferred and tax-exempt retirement accounts presumed abandoned; United States savings bonds; crediting income or gain to owner's account; and action by a person whose claim is denied.
Further amends the Revised Uniform Unclaimed Property Act. Provides that a money order is presumed abandoned if it is unclaimed by the apparent owner 5 (rather than 3) years after issuance. Provides that any instrument on which a financial organization or business association is directly liable, other than a money order, is presumed abandoned if it is unclaimed by the apparent owner 3 years after issuance. Makes changes concerning the time and circumstances under which financial organization deposits are presumed abandoned. Makes changes in provisions governing extending the reporting date of certain reported renewable time deposits. Deletes language requiring a holder to inform the State Treasurer, as administrator, to provide a telephone number that persons may call to inquire about or claim property. Provides that the State Treasurer may, at reasonable times and upon reasonable notice: (1) examine the records of specified types of financial organizations under certain conditions; (2) issue an administrative subpoena requiring the financial organization to make records available for examination; and (3) bring an action seeking judicial enforcement of the subpoena. Provides that records obtained in examinations of State-regulated financial organizations are subject to the same provisions concerning use and confidentiality as records obtained in examinations of other persons. Makes other changes. Adds an immediate effective date.
Provides that a time deposit for which the owner has not consented to automatic renewal of the time deposit is presumed abandoned 3 years after the later of maturity or the date of the last indication of interest in the property by the apparent owner (instead of "3 years after the date of last indication of interest in the property by the apparent owner").
SB 340 (P.A. 102-0289) - Amends the Illinois Income Tax Act. Provides that the credit for student-assistance contributions sunsets on December 31, 2024 (currently, December 30, 2021.
SB 1138 (P.A. 102-0311) Amends the Home Equity Assurance Act. Provides that the governing commission of a home equity assurance program that levied at least $1,000,000 in property taxes in levy year 2019 or 2020 may not levy any property tax in levy year 2021. Repeals the provisions on January 1, 2025. Amends the Property Tax Code. Provides that, for levy year 2022, the aggregate extension base of a home equity assurance program that levied at least $1,000,000 in property taxes in levy year 2019 or 2020 under the Home Equity Assurance Act shall be the amount that the program's aggregate extension base for levy year 2021 would have been if the program had levied a property tax for levy year 2021. Effective immediately.
SB 1690 (P.A. 102-0330) - Amends the Economic Development for a Growing Economy Tax Credit Act. Repeals provisions concerning the Illinois Business Investment Committee. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code. Creates the Illinois Small Business Fund as a nonappropriated separate and apart trust fund in the State Treasury. Provides that the Department of Commerce and Economic Opportunity shall use moneys in the Fund to manage proceeds that result from investments that the Department has undertaken through economic development programs. Amends the State Finance Act to make a conforming change. Repeals the Illinois Small Business Incubator Article within the Build Illinois Act.
Rulemaking
The August 13 edition of the Illinois Register did not contain any proposed or adopted rulemakings by the Illinois Department of Revenue or adopted rulemakings by the Department of Commerce and Economic Opportunity.
The Department of Commerce and Economic Opportunity proposed 4 new rulemakings:
DCEO proposed amendments to the Enterprise Zone and High Impact Business Program rules to implement provisions of the Blue Collar Jobs Act authorized by P.A. 101-0009, Article 20 (20 ILCS 655/5.5). The proposed rules provide the Department with the ability to administer construction job tax credits under the Enterprise Zone and High Impact Business Programs, as provided for by the Act.
DCEO proposed amendments to the River Edge Redevelopment Zone Program to implement provisions of the Blue Collar Jobs Act authorized by P.A. 101-0009, Article 65 (65 ILCS 115). The proposed rules provide the Department with the ability to administer construction jobs tax credits under the River Edge Redevelopment Program, as provided for by the Act.
DCEO proposed amendments to the EDGE program rules to implement provisions of the Blue Collar Jobs Act authorized by P.A. 101-9, Article 35 (35 ILCS 10). The proposed rules provide the Department with the ability to administer construction jobs tax credits utilizing the New Construction EDGE agreement, as provided for by the Act.
Court cases
No new tax-related court cases were released this week..
Tax Tribunal
No new decisions have been posted by the Tribunal this week.
None of the new cases raise unique issues.
Publications
The Civic Federation has a recent blog post dealing with the State of Illinois FY2022 Budget.
Chamber Survey
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