Executive Director
Tax Institute

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All Key Chamber Legislation

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May 24:  
House third reading deadline for Senate bills and Senate third reading deadline for House bills.

May 31:
Illinois General Assembly scheduled spring session adjournment date.
May 17, 2019
State and Local Tax  
This Week 

Illinois General Assembly
The House and the Senate returned to Springfield on May 14  and were in session through Friday May 17.  

The House and Senate are scheduled to be in session next week Monday through Friday. At this time, the House is scheduled to be in session next weekend and through the end of the month.  The Senate is scheduled to be off next Saturday and Sunday, returning to Springfield to be in session beginning on Memorial Day through the end of the month.

No tax legislation has passed the General Assembly this week as of this morning. None of the tax provisions associated with the Governor's budget proposal have yet surfaced.  Next week should be an eventful week. I will send out special updates as appropriate.

I am a part of a group of business organizations in discussions with the Cook County Assessor's office on SB 1379 - (Davis) - the Assessor's legislation to seek information from property owners with "income producing properties."  There were two meetings this week, and we hosted the second meeting at the Chamber's offices. Those discussions will continue next week.

I have heard from various sources that the Illinois Retail Merchants Association, in conjunction with the Municipal League, has floated proposed legislation that would tax marketplace sellers and is designed to somehow impose local taxes on all online sellers. I understand they are trying do something conceptually similar to HB 270, the flawed legislation introduced by Representative Murphy earlier this year to impose sales taxes on online sales and also tax all marketplace sellers.  

Apparently, the language has been floated to the Department, according to statements on the legislation by Acting General Counsel Brian Fliflet at last Friday afternoon's Illinois State Bar Association State and Local Tax Council meeting.

Now that the Department has the language, I hope that IRMA will share the language publicly.

From what I have heard of the proposal, it sounds like it may be of dubious constitutionality and is premised on a conclusion that the U.S. Supreme Court's Wayfair case allows the states to ignore the commerce clause when crafting sales tax legislation.  

I suspect the Department of Revenue will identify the flaws in the legislation and either assist in correcting the flaws to the extent they can be corrected or put a brake on the proposal. When the proposal surfaces, I will provide it to you for your review and comments.

House Revenue committee
The House Revenue committee met on Thursday.  Nothing of any consequence was considered by the committee.  Here is a  link to the legislation considered by the committee on Thursday.

The House Revenue committee is scheduled to meet twice next week - Monday afternoon and Wednesday morning.

SJRCA 0001, the Constitutional amendment authorizing the graduated income tax is posted for consideration in the House Revenue committee on Monday.. We continue to oppose the constitutional amendment in the House.

SB 687 - the legislation that sets forth a schedule of income tax rates for the tax years beginning January 2021 if the constitutional amendment is enacted is posted for the House Revenue committee meeting on Monday.  We continue to oppose SB 687 in the House.
As of this morning, only one bill is scheduled for consideration at the Wednesday morning meeting of the House Revenue committee.   SB 158, a property tax bill is posted for consideration.  Undoubtedly, there will be additional legislation considered by the committee on Wednesday. If anything of importance is posted for consideration, I will send out a special alert.

Senate Revenue committee
The Senate Revenue committee met on Wednesday Here is a link to the legislation considered by the committee.  Nothing of particular consequence was considered by the committee.  

The Senate Revenue committee will meet next week, but as of this morning the hearing has not been scheduled.

Tax-related amendments legislation this week
HB 2924 - (Sandoval) -  Adds provisions to the engrossed bill amending the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Creates the Office of Minority Economic Empowerment within the Department of Commerce and Economic Opportunity. Provides that the Office of Minority Economic Empowerment shall assist minority-owned businesses, women-owned businesses, veteran-owned businesses, and businesses owned by persons with disabilities through targeted programs, resources, and outreach and promotional activities. Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that taxpayers receiving a credit under the Act shall submit to the Department of Commerce and Economic Opportunity an annual report detailing the diversity of the taxpayer's own workforce, including full-time, part-time, contractors, and board membership.

SB 1059 - (Oberweiss) Replaces everything after the enacting clause. Amends the Property Tax Code. In provisions concerning property tax levies and extensions, increasing or decreasing rate limits of property taxes, and establishment of a special service area, changes provisions requiring notice by publication in newspapers to allow an option of publication on websites of taxing districts, municipalities, and counties. Provides that, beginning with the 2020 valuation year, publication of an individual listing of assessment in a newspaper is not required for each parcel which meets the requirements for an individual notification if a list is published on a county-controlled website.

The May 17 edition of the Illinois Register
was not published this morning by the time this newsletter was finished.  I'll cover any rulemaking in next week's newsletter.
Court cases
No new court cases this week.

Tax Tribunal 
No new decisions were posted this week.

There were three new income tax cases filed by Tax Institute member law firm Baker McKenzie that may be of interest:   Epic Insuarnce Company v. Illinois Department of RevenueCardinal Health 110, LLC and Affiliates v. Illinois Department of Revenue, and  Cardinal Health v. Illinois Department of Revenue

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