The House and Senate cancelled the session days scheduled for this week.

The House and Senate also cancelled the session days scheduled for next week.

As I noted in last week's newsletter, both chambers will be holding committee hearings via Zoom. The House cancelled virtually of the hearings scheduled for this week including the House Revenue committee scheduled to meet on Thursday January 13. As of this morning, no hearings for the House or Senate Revenue committees have been scheduled.

The deadline for submitting bill drafting requests for Senate introduction was last Friday. Today is the deadline for bill drafting requests for House introduction.

New tax-related legislation was introduced since my last newsletter:

HB 4391 - Walsh - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the credit for coal and aggregate exploration, mining, off-highway hauling, processing, maintenance, and reclamation equipment sunsets on July 1, 2028 (currently July 1, 2023). Effective immediately.

HB 4410 - Robinson - Creates the Real Estate Valuation Task Force Act. Establishes the Real Estate Valuation Task Force. Provides for membership of the Task Force. Provides for Task Force meetings and the selection of a Task Force chair and other officers. Provides that members shall serve without compensation. Provides for administrative and other support of the Task Force. Provides for duties of the Task Force. Provides Task Force reporting requirements. Provides for termination of the Task Force. Repeals the Act on January 1, 2029. Staats comment: This legislation isn't directly related to valuations for property tax purposes, but I wanted to flag this for the property tax lawyers among the membership, as well lenders.

HB 4411 - Robinson - Amends the Property Tax Code. Provides that the Property Tax Appeal Board shall establish and maintain a statewide database containing information related to homestead exemptions granted for property in the State. Provides that the database shall be publicly accessible and searchable by county, property address, property index number, taxpayer name, and type of homestead exemption applied to the property. Requires each chief county assessment officer to cooperate with the Property Tax Appeal Board for the purpose of providing current information for inclusion in the database. Requires the chief county assessment officer to check the statewide database to verify that the homeowner is not receiving an additional homestead exemption that would disqualify him or her from receiving an exemption for the subject property.

HB 4416 - Miller - Amends the Illinois Income Tax Act. Provides that no tax shall be imposed on the net income earned or received by any individual who is 65 years of age or older during the taxable year. Effective immediately.

HB 4417 - Miller - Amends the Property Tax Code. Provides that, for tax years beginning on or after January 1, 2022, no taxing district shall extend or levy a tax against any property in any amount greater than $2 per $100 of equalized assessed valuation. Effective immediately.

HB 4424 - Zalewski - Amends the Illinois Municipal Code. Provides that all municipalities (currently, only municipalities in a county with a population of over 3,000,000 inhabitants) may impose a motor fuel tax. Effective immediately.

HB 4428 - Zalewski - Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who are employed as law enforcement officers in an amount equal to 100% of the unreimbursed expenses paid by the taxpayer during the taxable year for: (1) professional certifications required for the performance of the taxpayer's duties as a law enforcement officer; (2) equipment used by the taxpayer in the performance of his or her duties as a law enforcement officer; and (3) mental health training. Effective immediately.

HB 4446 - Sosnowski - Amends the Property Tax Code. In provisions concerning the homestead exemption for veterans with disabilities, provides that, if the veteran has a service connected disability of 10% or more but less than 30%, as certified by the United States Department of Veterans Affairs, then the annual exemption is $1,500 (currently, there is no exemption if the veteran has a service connected disability of less than 30%). Effective immediately.

HB 4460 - Zalewski - Amends the Telecommunications Excise Tax Act. Provides that a person who divulges certain confidential information is guilty of a Class B misdemeanor with a fine not to exceed $7,500 (currently, a Class B misdemeanor only). This bill is an Illinois Department of Revenue initiative.

HB 4492 - McCombie - Amends the Illinois Income Tax Act. Increases the research and development credit by providing that the increase in research and development activities shall be based on an increase over 50% of the average of the qualifying expenditures for each year in the base period (instead of 100% of the average of the qualifying expenditures for each year in the base period). Provides that the research and development credit applies on a permanent basis. Effective immediately. This bill is an Illinois Chamber Tax Institute initiative.

HB 4495 - Zalewski - Amends the Property Tax Code. In provisions concerning a reduction in assessed value for affordable rental housing construction or rehabilitation, provides that, for the purpose of an initial application and only until the building is put in service, an owner may provide proof of either a deed restriction or participation in a government program that includes legally enforceable affordability requirements comparable to the requirements set forth in those provisions, and the chief county assessment officer shall furnish a letter of intent to the applicant. Makes changes to the definition of "assessed value for the residential real property in the base year". Effective immediately.

SB 3048 - Joyce - Amends the River Edge Redevelopment Zone Act. Provides that the Department of Commerce and Economic Opportunity may certify one additional pilot River Edge Redevelopment Zone in the City of Kankakee. Effective immediately.

SB 3065 - Joyce - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the credit for coal and aggregate exploration, mining, off-highway hauling, processing, maintenance, and reclamation equipment sunsets on July 1, 2028 (currently July 1, 2023). Effective immediately.

SB 3069 - Murphy - Amends the Property Tax Code. Provides that condominium associations and homeowner associations may also file appeals with the Property Tax Appeal Board. Effective immediately.

SB 3090 - Villivalam - Amends 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). Effective immediately. I suspect this may be an initiative of the Department of Revenue.

SB 3091 - Villivalam - Amends the Motor Fuel Tax Law. Provides that each person who acts (currently, knowingly acts) as a distributor of motor fuel or a supplier of special fuel, or a receiver of fuel without having a license so to do, or who fails or refuses (currently, knowingly fails or refuses) to file a return with the Department of Revenue or make payment to the Department of Revenue shall pay a penalty of $500 for the first occurrence and $1,000 for the second and each subsequent occurrence (currently, the person is guilty of a Class 3 felony). Provides that any person who acts as a motor carrier without having a valid motor fuel use tax license or a valid single trip permit shall pay a penalty of $500 for the first occurrence and $1,000 for the second and each subsequent occurrence (currently, the person is guilty of a Class A misdemeanor for a first offense and a Class 4 felony for each subsequent offense). Provides that a person who fails to file certain quarterly returns shall pay a penalty of $500 for the first occurrence and $1,000 for the second and each subsequent occurrence (currently, the person is guilty of a Class 4 felony for a first offense and a Class 3 felony for each subsequent offense). I suspect this is an initiative of the Department of Revenue.

SB 3097 - Hunter - Amends the Property Tax Code. Provides that, after filing a petition to obtain a tax deed, the owner of a certificate of purchase must file with the clerk of the circuit court (currently, the county clerk) the names and addresses of persons who are entitled to service of notice. Effective January 1, 2022.

SB 3106 - Murphy - Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that parcels are considered to be contiguous if they touch or join one another in a reasonably substantial sense. Provides that parcels are also considered to be contiguous if they meet the criteria for annexation under specified provisions of the Illinois Municipal Code. Provides the changes and declarative of existing law and are retroactive with regard to pending actions, except to any rights of a party subject to a final judgment entered pursuant to the September 23, 2021 opinion of the Illinois Supreme Court in Board of Education of Richland School District 88A v. City of Crest Hill, 2021 IL 126444. Effective immediately.

SB 3135 - Tracy - Amends the Illinois Income Tax Act. Provides that each individual who serves as a volunteer firefighter, a volunteer EMS provider, or a volunteer emergency worker during the taxable year is entitled to a credit in an amount equal to $500. Effective immediately.

SB 3174 - Feigenholtz - 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. I suspect this is an initiative of the Treasurer.

SB 3189 - Bush - 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. I suspect that this an Illinois Department of Revenue initiative.

The Department issued a new Information Bulletin this week:

FY 2022-15 - "What's New for Illinois Income Taxes"

The January 14 edition of the Illinois Register did not contain any new or adopted rulemakings by the Illinois Department of Revenue or the Department of Commerce and Economic Opportunity.

Today's Illinois Register contains the Department of Revenue Fourth Quarter Index of letter rulings and the Department's annual index of letter rulings.

Today's Illinois Register also contains the Department of Revenue's Regulatory Agenda for the first half of 2022. Please remember that this agenda is aspirational. The Department is not required to propose any of the listed rulemakings, nor is the Department limited by the rulemakings listed on the regulatory agenda.

No new tax-related cases this week.

No new decisions have been posted by the Tribunal this week.

Only one new case was filed this week as of this morning. The case is a pro se petition challenging a personal liability penalty..

The Illinois General Assembly's bipartisan Commission on Government Forecasting and Accountability issued its "Monthly Briefing for the Month Ended: December 2021" According to the report, state tax revenues continue to be strong and above projections.