October 11, 2019
State and Local Tax
Illinois General Assembly
The House and Senate have adjourned until the fall veto session. The first week of the veto session is scheduled to begin on October 28. The second, and final, week of the veto session is scheduled to begin on November 12.
- (Skillicorn) -
Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that the term "selling price" does not include the value of or credit given for traded-in tangible personal property (currently, beginning on January 1, 2020, with respect to motor vehicles, "selling price" does include the trade-in value). Effective immediately.
HB 3913 - (Skillicorn) - Amends the Motor Vehicle Retail Installment Sales Act. Provides that the maximum amount of the documentary fee for processing documents and performing services related to closing of a sale is restored to $150 (currently, the fee was increased to $300 on January 1, 2020). Effective immediately.
Property Tax Reform Task Force
The Property Tax Relief Task Force subcommittees are winding down. Here is a
to the Task Force webpage.
The subcommittee on Assessments and Exemption is scheduled to meet again this afternoon. The agenda has been posted.
The subcommittee on TIFs was scheduled to meet on Thursday, but the meeting was cancelled.
The subcommittee on Social and Economic Disparities has scheduled hearings over each of the next three weeks in various locations. No agendas for these hearings have been posted.
The subcommittee on Government Consolidation is scheduled to meet next Thursday. The location of the hearing and the agenda have yet to be posted.
The October 11 edition of the Illinois Register contains one proposed rulemaking by the Illinois Department of Revenue. The Department's description of the rulemaking states as follows: "This rulemaking amends Section 100.2470 to reflect the tax exemption for interest from bonds issued under the New Harmony Bridge Authority Act and the New Harmony Bridge Interstate Compact Act, which were enacted in PA 100-981, and the amendment in PA 101-118 to Section 4.10 of the Family Practice Residency Act to allow the Department of Public Health to pay off student loans of certain "health care providers" rather than just those of certain "primary care physicians." Section 4.10 provides that payment of student loans under its provisions will not be taxable to the health care providers."
The Illinois Register did not contain any adopted rulemakings by the Illinois Department of Revenue.
The Illinois Register did not contain any proposed or adopted rulemakings by the Illinois Department of Commerce and Economic Opportunity.
The circuit court of Champaign County issued a summary judgment order in
OSF Heathcare System v. The Champaign County Board of Review
. At issue is whether it was proper for the Champaign County Treasurer to tax OSF for property that houses the Heart of Mary Medical Center. OSF filed suit alleging that the Treasurer lacks the statutory authority to levy the tax because the Illinois Department of Revenue ruled that OSF is entitled to a tax exemption.
OSF sought a property tax exemption, (likely under the hospital property tax exemption although the decision doesn't indicate that specifically). The Board of Review recommended denial of the exemption, but the Illinois Department of Revenue property tax exemption division granted the exemption. However, the Board did not change the non-exempt assessment in the assessment books and the Treasurer issued property tax bills for the parcels at issue. The Board declined to change the status in the assessment books because there is a pending challenge to the Department's exemption determination before the Department's administrative hearings division.
OSF filed this case in the circuit court of Champaign County to challenge the issuance of the tax bills. The court ruled that within 14 days of the date of entry of the order the Board of Review must correct the assessment in the assessment books to reflect the IDOR decision granting the exemption and within 14 days of the Board's correction the Treasurer is required to issue corrected tax bills.
The court made clear in its order it is not ruling on whether the IDOR ruled properly in granting the exemption - that matter will be addressed in the administrative hearing. The court ruling provides only that the Board of Review should have reflected the exemption in its assessment upon receipt of the administrative determination by the Illinois Department of Revenue.
Thanks to Brian Fliflet of the Illinois Department of Revenue for providing a copy of the ruling.
No new decisions were posted this week.
The new cases filed at the Tribunal this week does not raise any novel issues.
The Illinois Department of Revenue has published a list of
"Airport-related purpose locations certified by the Illinois Department of Transportation"
. This list is required by
(P.A. 101-0010) which provides that b
eginning December 1, 2019, implements federal requirements that a portion of the sales tax on aviation fuel must be used for "airport-related purposes." It should be noted that the legislation also r
equires the filing of a separate sales tax return to report and pay sales tax on aviation fuel. The legislation also m
odifies the distribution of the proceeds of sales tax on aviation fuel, but 5% of the state sales tax rate grandfathered and distribution of proceeds of the 5% is not changed.
The Illinois Department of Revenue has also published a list of the locations of sales tax rate changes effective January 1, 2020.
Chicago magazine contains an article arguing in favor of a city income tax for the city of Chicago.