April 12, 2019
State and Local Tax
Illinois General Assembly
The House and Senate were in session this week Tuesday through Friday. Today
is the third reading deadline in both the House and Senate for bills originating in each chamber.
The House and Senate will be on Easter break for the seeks of April 15 and April 22.
Legislation of Interest
- (Harmon) - On a partisan vote, the Senate Executive committee voted on Wednesday to move the constitutional amendment authorizing a graduated income tax for a Senate floor vote. The proponents plan to call the amendment for a vote in the Senate today. The amendment must be approved by 3/5 of the members of the Senate. It is extremely likely that the amendment will be approved by the required 3/5 majority.
The constitutional amendment was amended on Wednesday. As amended, this it would amend the Revenue Article of the Illinois Constitution to remove a provision that provides that a tax on income shall be measured at a non-graduated rate. The amendment provides that the General Assembly shall provide by law for the rate or rates of any tax on or measured by income imposed by the State. It provides that the highest rate imposed on corporations may not exceed the highest rate imposed on individuals by more than a ratio of 8 to 5.
The amendment does not limit the authorization for graduated rates only to individuals. Under the amendment, a graduated rate could be imposed corporations, trusts and estates.
The amendment removes the current prohibition against having multiple income taxes. While it retains the 8 to 5 ratio, a ratio between the highest corporate rate and the highest individual rate provides little protection against imposes the highest rates in the country on corporations.
If, as expected, the Constitutional amendment is passed by the Senate today, it then moves to the House. If the amendment passes the House it will appear on the ballot in the November 2020 general election.
- (Harris) and SB 1115 (Steans) - world-wide apportionment, modified waters edge legislation. The house bill has been returned to the rules committee and the senate bill has been returned to assignments. The House Progressive Caucus held a press conference on Thursday and highlighted HB 2085 as one of their supported initiatives. Although the sponsor, Representative Harris, was not present at the press conference the press conference illustrates that interest remains in this legislation. We will fight any attempts to include this legislation in an end-of-session budget implementation bill.
Senate Revenue committee
The Senate Revenue committee held a hearing on Wednesday afternoon. Here is a link to the bills that were considered by the committee.
Amendment 1 to
, our data center bill, passed out of the committee on the agreed bill list.
House Revenue committee
The House Revenue committee met twice this week.
The committee first met on Wednesday. Here is a
to the bills considered by the committee.
The committee met again on Thursday and considered amendment 2 to
Amends the Illinois Municipal Code. Provides that, in addition to any other tax that may be imposed, if a municipality adopts a responsible bid ordinance that is approved by the Department of Transportation, then the municipality may also impose a tax on motor fuel at a rate not to exceed $0.03 per gallon. Effective January 1, 2020. Amendment 2 modifies the responsible bid provisions added by amendment 1.
Updates on Chamber Tax Institute legislation
SB 1349 - (Weaver) - Amends the Uniform Penalty and Interest Act - The bill bill is in the House and is sponsored by Representative Walker. The bill was assigned to the House Revenue committee this week.
- (Sims) - As noted above, an amendment to the bill passed out of the Senate Revenue committee on Wednesday. As amended, the bill moves certification of the data center exemptions to the Department of Commerce and Economic Opportunity from the Department of Revenue. (This change was made at the request of the Department of Revenue.) The amendment also added a provision requiring project labor agreements. The legislation was amended to require project labor agreements on new construction and to add an income tax credit equal to a percentage of the wages of employees of construction contractors used to construct new data centers in areas of poverty or high unemployment.
Bills that passed the House this week
- (Halbrook) -
Amends the Property Tax Code. Provides a county with less than 3,000,000 inhabitants may, upon referendum approval, change the manner in which it selects its county assessor or county supervisor of assessments from an elected position to an appointed position or from an appointed position to an elected position.
HB 250 - (Walsh) - Amends the Property Tax Code and the Mobile Home Local Services Tax Enforcement Act. Provides that a county with fewer than 3,000,000 inhabitants may, by joint agreement, combine its tax sale with the tax sale of one or more other contiguous counties. Provides that a joint tax sale shall be held at a location in one of the participating counties.
HB 3096 - (Hernandez) - Reinserts the provisions of the introduced bill with the following change. Provides that, as an alternative to certain other procedures, a taxing district may increase its aggregate extension if the taxing district obtains referendum approval as provided in the amendatory Act (in the introduced bill, notwithstanding those other procedures, the taxing district shall follow the provisions of the amendatory Act when seeking referendum approval to increase its aggregate extension). Removes the effective date.
HB 3590 - (Yingling) - This is a Department of Revenue initiative. This bill amends the Illinois Income Tax Act and in a Section concerning withholding of tax from payments from pari-mutuel wagering and riverboat gambling winnings, provides that withholding is required only if withholding is required with respect to those payments under the provisions of the Internal Revenue Code
Bills that passed the Senate this week
- (Bush) -
reates the Illinois Energy Transition Zone Act. Provides for the certification by the Department of Commerce and Economic Opportunity of municipal ordinances designating an area as an Energy Transition Zone. Provides that green energy enterprises located in Energy Transition Zones shall be eligible to apply for certain tax incentives.
SB 68 - (Morrison) - Amends the Illinois Income Tax Act. Provides for a credit against withholding taxes in an amount equal to 25% of the wages or salary paid by a private employer to an Illinois employee while the employee is on organ donation leave if the employer grants all of its employees the option of taking a paid leave of absence of at least 30 days for the purpose of serving as an organ donor or bone marrow donor.
SB 71 - (Manar) - Amends the Illinois Income Tax Act. Provides a tax credit to each taxpayer who owns qualified real property located in a county in Illinois that was declared a State disaster area by the Governor due to tornadoes in 2018. Effective immediately.
SB 119 - (Castro) - Replaces everything after the enacting clause. Amends the Illinois Income Tax Act. Provides that a person required to file a federal Form 1099-K identifying a reportable payment transaction to a payee with an Illinois address shall also report to the Department of Revenue and to any payee with an Illinois address any information required by Section 6050W of the Internal Revenue Code with respect to third-party network transactions. Provides that the de minimis requirement for third-party network transactions shall be $1,000 and more than 3 transactions per reporting period. Provides that the Department of Revenue shall not share information gathered from Third Party Settlement Organizations with other federal, State, or local government entities. Provides that the amendatory Act applies for reporting periods beginning on or after January 1, 2020. Provides that failure to provide information shall result in a penalty under the Uniform Penalty and Interest Act. Effective immediately.
SB 685 - (Harmon) - Replaces everything after the enacting clause. Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that, on and after January 1, 2020, a referendum to increase the district's aggregate extension for up to 4 consecutive levy years may be submitted to the voters. Effective immediately.
SB 1346 - (Ellman) - Amends the Property Tax Code to provide with respect to the Senior Citizens Assessment Freeze Homestead Exemption provides that beginning in taxable year 2020 the reduction for Medicare premiums shall be made only upon prof of payment of Medicare premiums by the taxpayer.
SB 1530 - (Harmon) - Amends the Illinois Enterprise Zone Act. Provides that the Department of Commerce and Economic Opportunity is authorized to receive and approve applications for the designation of "High Impact Businesses" in Illinois if the business intends to, among other other potential intentions, establish a new utility-scale solar facility at a designated location in Illinois. Changes references of "Wind Energy Business" to "Renewable Energy Business". Defines "new utility-scale solar facility". Makes conforming changes.
SB 1548 - (Rezin) - Amends the Illinois Income Tax Act. Provides a tax credit to each taxpayer who owns qualified real property located in a county in Illinois that was declared a State disaster area by the Governor. Effective immediately.
SB 1755 - (McConchie) - Amends the Retailers' Occupation Tax to provide that "sale at retail" does not include the selling of food at retail to students, teachers, or staff, and not to the general public, during a school designated breakfast or lunch period, on the premises of a public or non-public school serving some or all of grades kindergarten through 12 that has an active identification number issued by the Department of Revenue.
SB 2097 - (Stadelman) - Amends the Property Tax Code. Provides that a taxing district may abate taxes on residential property that qualifies for an abatement under any program adopted by the governing authority of the taxing district for the purpose of revitalizing or stabilizing neighborhoods.
Amendments to tax legislation this week
- (Harmon) -
Replaces everything after the enacting clause. Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that, on and after January 1, 2020, a referendum to increase the district's aggregate extension for up to 4 consecutive levy years may be submitted to the voters. Effective immediately.
HB 3084 - (Lilly) - Replaces everything after the enacting clause. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Requires the Department of Commerce and Economic Opportunity to complete an assessment of its current practices related to marketing programs administered by the Department of Commerce and Economic Opportunity. Provides that, if the Department of Commerce and Economic Opportunity, in consultation with the General Assembly, concludes that a Citizens Services Coordinator is needed to assist Illinois residents in obtaining services and programs offered by the Department, then the Department may, subject to appropriation, hire an individual to serve as a Citizens Services Coordinator.
HB 3596 - (Yingling) - amendment 2 - Replaces everything after the enacting clause. Amends the Property Tax Code. Provides that, in a county with a population of more than 500,000 that does not have an elected county board chairman or executive and has an appointed supervisor of assessments, the office of supervisor of assessments shall be an elected position beginning with the general election held in 2020 and shall take office January 1, 2021. Amends the Counties Code. Provides that the chairperson of the county board may appoint, with the advice and consent of the county board, an outside attorney to serve as counsel to the county board and a countywide elected official may select an outside attorney to serve as his or her legal counsel. Provides that a chairman of a county board who is chosen by the board may be removed, for cause or without cause, upon a motion adopted by an affirmative vote of four-fifths of the board and the vice-chairman will assume the duties of the chairman until a new chairman is elected at the next regularly scheduled county board meeting. Provides that a county executive does not need the advice and consent of a county board for appointments made by the county executive after the approval of an annual budget within the fiscal year of the approved annual budget. In counties with a population of at least 700,000 but less than 1,000,000, allows the county board to authorize the chairperson to appoint a Public Defender. Requires the county board to notify newly elected countywide officials elected in or after November 2016 of the option for an auditor to conduct a transitional audit at the county's expense (limiting home rule powers). Creates the Non-Home Rule County Boards Division. Adds various provisions concerning county chairperson and county board powers and duties, including: chairperson employees; reduction of the chairperson's powers; elimination of advisory or ad hoc committees or commissions; creation of standing committees; setting meeting agendas; appointing county administrators; obtaining nepotism information from specified vendors; reduction of or diversion of moneys from a county fund; appointment of an inspector general to investigate waste, fraud, abuse, and other financial misconduct; and employment decisions in countywide elected officials' offices. Amends the Downstate Forest Preserve District Act. Provides for the removal a chairman of a county board, for cause or without cause, who is chosen by the board. Effective immediately.
did not contain any new or adopted rulemakings by the Illinois Department of Revenue or the Illinois Department of Commerce and Economic Opportunity.
No new court cases this week.
No new decisions were posted this week.
None of the new cases filed this week raise unique issues.