Executive Director
Tax Institute

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All Key Chamber Legislation

Upcoming Events

November 12:
Illinois General Assembly returns to Springfield for the second week of the fall veto session.

November 18:
Tax Institute Quarterly meeting 2:00 - 4:00 at the Chamber offices at 300 S. Wacker.  Featured speakers are Justin Heather and Brad Tietz of the DCEO to discuss the new data center exemption and economic development issues and Cate Battin of McDermott Will & Emery to give a Chicago and Cook County update.  RSVP to
November 8, 2019
State and Local Tax  
This Week 

Illinois General Assembly
The second, and final, week of the veto session is scheduled to begin on November 12.

We continue to watch a number of issues.  

The Cook County Assessor's legislation,  SB 1379, which would require owners and many tenants of "income producing property" to submit financial data to the Asssessor remains in the Rules committee in House.  The Illinois Chamber of Commerce is strongly opposed to this legislation.

No language has surfaced to deal with the problems associated with the sales and use tax legislation enacted during the spring session as portions of  SB 689 (P.A. 101-0009) and  SB 690 (P.A. 101-0031)

I still expect the Illinois Department of Revenue to propose language next week to address technical concerns related to administration of the sales tax changes in SB 690 and to delay the effective date of the portion of the changes in SB 690.  I don't anticipate that the Department's changes will address the constitutional infirmities associated with the changes contained in SB 690.

There still may also be amendatory language proposed by the Retail Merchants Association to modify the changes from the spring session.

Last Friday, I reported that House committee amendment 1 to  SB 1608an initiative of the  Department of Commerce and Economic Opportunity, was filed to amend the Data Center legislation.  Earlier this week, the amendment was "unfiled."  I was advised by DCEO representatives that the amendment was filed by staff in error and the intent is to include data center language in a broader "technical fix" bill next week.

From my review of bills that are positioned to be a vehicle for the data center and other technical changes I am keeping an eye on SB 119.  This bill passed the Senate during the spring session, and contains language that was included in another bill that passed the General Assembly in the spring.  SB 119 was passed out of the House Revenue committee without amendment on a partisan roll call during the first week of the veto session and is currently on second reading in the House.  SB 119 could be used as a vehicle for a floor amendment in the House and then passed back to the Senate for concurrence next week.

The Senate Revenue  committee is scheduled to meet on Wednesday.   The committee has two bills scheduled for consideration:

HB 961 - Amends the Property Tax Code and provides that, in a county with 3,000,000 or more inhabitants, for taxable years 2019 through 2023 (currently, 2020 through 2024), a taxpayer who has been granted a senior citizens homestead exemption need not reapply. Effective immediately.

HB 3902 - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the exemption for materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft applies through December 31, 2024 (in the introduced bill, the exemption applies permanently). Provides that no claim for credit or refund is allowed for taxes paid as a result of the disallowance of the exemption on or after January 1, 2015 and prior to the effective date of the amendatory Act. Effective immediately.

In a press report earlier this week, a local television station reporter from Champaign alleged that this legislation would result in a tax revenue loss of $50,000,000.  After the press report surfaced, the Governor stated his intention to veto the legislation if it reaches his desk.  I'm not sure where the reporter came up with the $50,000.000 figure but the number seems wildly overstated.  In order for the legislation to result in a $50,000,000 hit to state revenues, if my math is correct, there would have to be $800,000,000 in exempted aircraft parts. ($50.000,000 divided by the state tax rate of 6.25% or $50,000,000/.0625)  (Note that this legislation would not apply to planes flown by commercial airlines which are tax-exempt under the rolling stock exemption.) 

The House Revenue committee is scheduled to meet on Tuesday. 
SB 1043 - House amendment 2 r eplaces everything after the enacting clause. Reinserts the provisions of the engrossed bill as amended by House Amendment No. 1. Further amends the Property Tax Code to provide that a taxing district may order the county clerk to abate any portion of its taxes when its initial levy request has subsequently been found to be in excess of the funds required for that year. Provides that any such abatement shall be included in the district's aggregate extension base for purposes of the Property Tax Extension Limitation Law. Effective immediately.


SB 1043 - see above

New legislation

SB 3957 - Amends the Illinois Governmental Ethics Act. Provides that no legislator may accept or participate in any way in any representation case that involves property tax appeals. 

SB 2298 - Amends the Illinois Municipal Code. Provides that the municipal motor fuel tax shall be imposed as a retailers' or service occupation tax. Prescribes conditions for reimbursement. Provides that any tax imposed, and all civil penalties that may be assessed as an incident thereof, shall be administered, collected, and enforced by the Department of Revenue in the same manner as the tax imposed under the Retailers' Occupation Tax Act.

Property Tax Reform Task Force

The subcommittee on Assessments and Exemption is scheduled to met last Friday.  The agenda has been posted.

The November 8 edition of the Illinois Register did not contain any proposed or adopted rulemakings by the Illinois Department of Revenue or the Illinois Department of Commerce and Economic Opportunity.

Court cases
No new cases this week.

Tax Tribunal 
No new decisions were posted this week.  

One new case may be of interest.   Mastercard v. Department of Revenue is an income tax case that is a protest of a notice of deficiency.  Mastercard challenges the Department regulation, 100.3200 that establishes the "throwout rule."  Mastercard among its other arguments, contends that the regulation improperly modifies Illinois law.

The Illinois General Assembly's Commission on Government Forecasting and Accountability has issued the Monthly Briefing for the Month Ended: October 2019

The Illinois Department of Revenue has issued a  Compliance Alert entitled "Food Vendors Neglecting to Collect Illinois Sales Tax on Sales of Ready-Made Meals for School Lunch Programs

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