The House and Senate returned to Springfield January 8 through mid-day January 13 for the lame duck session.

The new General Assembly was sworn in on Wednesday. The House is scheduled to return to Springfield on February 2. The Senate is scheduled to return to Springfield on January 26.

As you have seen in the press, Representative Welch is the new Speaker of the House. Speaker Welch's biography is here. As of today, Speaker Welch has not named his leadership team.

The House new House of Representatives was in session on January 14. The session was ceremonial.

Last Friday, I alerted you that SB 1199 was amended to turn it into a shell bill. SB 1199 was amended in the House on Monday evening to include the Governor's proposal to decouple from net operating losses in the federal CARES Act. This was a classic attempt to jam something through at the last minute with a minimal amount of scrutiny and debate. I am happy to say that in this instance that attempt failed. For those of you who don't deal with the legislative process, you might find the chronology interesting.

On or about the same time SB 1199 was amended to include the substantive language, on a partisan vote, the House also voted to suspend the usual 6 day posting requirement for scheduling of committee hearings so the bill could be posted to the House Revenue committee and the committee could schedule a Monday night hearing with a couple of hours of notice.

Along with the decoupling proposal, HB 1199 was amended to include other tax provisions amending the data center sales tax exemption and to modify sales tax provisions affecting marketplace platforms and Illinois bricks and mortar sellers selling goods through marketplace platforms in an attempt to gain support for the bill, despite the decoupling language.

We strongly opposed decoupling from the federal CARES Act provisions on net operating losses. We shared the following Fact Sheet over the weekend when we became aware the Department was planning to attempt to pass decoupling language before we knew which bill would be amended to include the language and before we had seen any actual language. We also signed onto a fact sheet circulated along with a number of other business groups.

SB 1199 as amended passed out of the House Revenue committee to the floor on a partisan vote at a bit after midnight on Tuesday morning. The amended bill was debated and voted upon in the House at around 1:30 am. The bill failed to pass. The bill only received 50 votes. A number of Democrats either did not vote at all on the bill or voted against the bill. There has already been talk about another attempt to pass decoupling during the spring session.

SB 1980 - passed both Houses during the lame duck session. Included in this legislation is an amendment of the Property Tax Code provisions dealing with the indemnity fund for Cook County.

HB 570 passed both Houses after being amended for the purpose of two TIF extensions.

SB 1379 - The Cook County Assessor's so-called data modernization bill, did not pass the General Assembly. The bill was posted for the House Revenue committee over the weekend but it was never called at the hearings of the Revenue committee and did not ever move forward. Given public comments by the Assessor it is likely this legislation will be reintroduced in the new General Assembly

The flood of new legislation has begun. As I have done in the past, I will list every tax-related bill that is introduced. 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.

HB 22 - Halpin - Amends the Public Officer Prohibited Activities Act. Provides that no officer, employee, or agent of a unit of local government may attempt to withhold disclosure to the public of information relating to tax incentives and other financial incentives by using a non-disclosure agreement. Defines "tax incentive". Effective immediately.

HB 34 - Walker - Amends the Illinois Enterprise Zone Act. In a Section concerning eligibility for an Enterprise Zone based on the local labor market area, provides that the Department of Commerce and Economic Opportunity may consider information released in the most recent American Community Survey (currently, the federal decennial census only). Provides that the Department of Commerce and Economic Opportunity may award partial points if the applicant demonstrates specific job creation and investment below specified thresholds. Contains provisions concerning provisional certification and provisional decertification. Provides that, for Enterprise Zones that are scheduled to expire on or after January 1, 2024, an application process shall begin 5 years prior to the year in which the Zone expires. Provides that the Department of Commerce and Economic Opportunity may consider written comments or any other information regarding a pending Enterprise Zone application submitted after the deadline and received prior to the decision on all pending applications. Makes changes concerning the total number of Enterprise Zones that may be certified.

HB 36 - Stuart - Amends the Illinois Vehicle Code. Reduces the trailer flat weight tax for maximum loads of 3,000 pounds and less from $118 to $18. Effective immediately.

HB 47 - Mason - Amends the Limited Liability Company Act. Reduces fees payable to the Secretary of State and the Illinois Supreme Court by 50%. Applies to registration fees, copy fees, expedited service fees, and attorney certificate of registration fees.

HB 95 - Halpin - Creates the Company-Specific Subsidy Interstate Compact. Enters into the compact, which may be entered into by any state and the District of Columbia, in which each member state agrees to not offer company-specific subsidies for companies currently located in or considering locating in the member state, including, but not limited to, for corporate headquarters, manufacturing facilities, office space, or other real estate developments. Excludes existing company-specific subsidies (until terms change, are renewed, or are reenacted) and workforce development grants. Creates the Interstate Company-Specific Subsidy Board upon the second member state entering into the compact. Provides for withdrawal of a member state with 6-months' written notice. Defines terms.

HB 130 - Ford - Amends the Property Tax Code. In a Section granting a homestead exemption to veterans with disabilities, provides that property that is used as a qualified residence by a veteran who was a member of the United States Armed Forces during World War II is exempt from taxation regardless of the veteran's level of disability. Provides that a veteran who qualifies as a result of his or her service in World War II need not reapply for the exemption. Effective immediately.

HB 134 - Meyers-Martin - Amends the Property Tax Code. Provides that a notice of judgment and sale shall be sent by first class mail in addition to registered or certified mail. Provides that the fee collected from the tax purchaser to cover the costs of registered or certified mailing and advertising shall be $30 (currently, $10) and shall be paid to the county collector prior to the issuance of any certificate of purchase. Effective immediately.

HB 137 - Meyers-Martin - Amends the Property Tax Code. Provides that the Senior Citizens Assessment Freeze Homestead Exemption also applies to persons with a disability. Amends the State Mandates Act to make conforming changes. Effective immediately.

HB 138 - Meyers-Martin - Amends the Illinois Income Tax Act. Creates an income tax credit in the amount of $250 for taxpayers who (i) adopt an animal from a no kill animal shelter and (ii) retain ownership of the animal for a period of 6 consecutive months during the taxable year. Effective immediately.

HB 143 - Meyers-Martin - Amends the Senior Citizens Real Estate Tax Deferral Act. Provides that the income limitation under the Act is $65,000 beginning tax year 2021 (currently, $55,000). Provides that, beginning with the 2021 tax year, the total amount of any such deferral shall not exceed $12,000 per taxpayer in each tax year and the interest shall accrue at the rate of 2% (currently, 6%). Effective immediately.

HB 145 - Morgan - Creates the Phase Out Corporate Giveaways Interstate Compact. Enters into the compact, which may be entered into by any state and the District of Columbia, in which each member state agrees not to offer or provide any company-specific tax incentive or company-specific grant to any entity for a corporate headquarters, manufacturing facility, office space, or other real estate development located in any other member state as an inducement for the corporate headquarters, manufacturing facility, office space, or other real estate development to relocate to the offering member state. Defines terms. Excludes: (1) workforce development grants that train employees; (2) company-specific tax incentives or company-specific grants from local governments; and (3) specified company-specific tax incentives or company-specific grants related to companies already within the member state. Creates the Phase Out Corporate Giveaways Board and provides for membership and meeting requirements. Provides for withdrawal of a member state with a 6-month written notice to each member state's chief executive officer. Contains construction and severability provisions.

HB 154 - Hernandez - 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 July 1, 2020, breast pumps, breast pump collection and storage supplies, and breast pump kits are exempt from the taxes imposed under those Acts. Effective immediately.

llinois Department of Revenue

The Department issued Informational Bulletin FY 2021-02-A "Additional Retailers' Occupation Tax Guidance for Marketplace Facilitators as set forth by the Leveling the Playing Field for Illinois Retail Act."

The January 15 edition of the Illinois Register does not have any proposed rules by the Illinois Department of Revenue or the Department of Commerce and Economic Opportunity. The Illinois Register does not contain any adopted rules by the Illinois Department Commerce and Economic Opportunity. T

Today's Illinois Register contains one adopted rulemaking by the Illinois Department of Revenue - the Leveling the Playing Field for Illinois Retail Act rules.

No new tax-related cases this week.

No new decisions were issued by the Tribunal this week.

One of the new cases may be of interest. Valid USA Inc. v. Illinois Department of Revenue is a protest of a Notice of Tax Liability issued by the Illinois Department of Revenue. At issue is whether machinery used to produce credit, debit, gift and identification cards qualifies for the manufacturing machinery and equipment exemption. The tax period at issue in the case is January 1, 2016 through June 30, 2017. Although not stated in the petition, it appears that the Department may have contended that the machinery was used in graphic arts production, not manufacturing, because the period time at issue coincides with a period during which the graphic arts machinery and equipment exemption was not in effect and before graphic arts machinery and equipment was included in the definition of manufacturing machinery and equipment. Valid is represented by David Hughes and Dakota Newton of Tax Institute member law firm Horwood Marcus & Berk.