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August 14, 2020
State and Local Tax
This Week
Illinois General Assembly
The General Assembly is adjourned until the fall veto session.
IRS
IRS issued final regulations on Treatment of Payments to Charitable Entities in Return for Consideration. The final regulations include an update to the regulations under IRC Section 170 "to reflect past guidance and case law regarding the application of the quid pro quo principle under Section 170 to a donor who receives or expects to receive benefits from a third party.
Illinois Department of Revenue
If you have an interest is seeing how the personal property tax replacement income tax is distributed to local government units, and the huge number of Illinois governmental units that obtain some of their funding from the replacement tax, the Department issued its Fiscal Year 2021 Estimate for Replacement Taxes
Rulemaking
The August 14 edition of the Illinois Register did not contain any proposed or adopted rulemakings by the Illinois Department of Revenue.
The Department of Commerce and Economic Opportunity had a proposed permanent rulemaking and an emergency rulemaking, but it is not tax-related. The rulemakings amend the local tourism and convention bureau program.
Court cases
There was one property tax decision issued by the appellate court this week.
Jorgensen v. Berrios is an appeal from a suit filed by the plaintiffs against Cook County, the Cook County Assessor and the Cook County Treasurer. The plaintiffs agllege that they are entitled to a property tax freeze under the Historic Residence Assessment Freeze Law.
The plaintiffs filed a suit for declaratory judgment, mandamus, and for an injunction. The defendants filed a motion to dismiss, claiming that the trial court did not have jurisdiction to consider the case and that the plaintiffs' complaint failed to state a cause of action for any of their claims. The trial court found that it lacked jurisdiction to consider the matter and the taxpayers' failed to exhaust their administrative remedies and granted the defendants' motion to dismiss. The appellate court affirmed the dismissal.
The decision sets forth a discussion of the Historic Residence Assessment Freeze Law, the procedures for claiming the freeze and why, as a matter of law the motion dismiss was proper.
Tax Tribunal
No new decisions were issued by the Tribunal this week.
One case may be of interest:
Texas Capitalization Resource Group Inc. v. Department of Revenue is a protest of an assessment of the Aircraft Use Tax. The case is illustrative of the large amount of tax that can be at issue in an aircraft use tax. The case is also a reminder of how closely the Department looks at transactions in this area. In this instance, the aircraft at issue was registered with the FAA using an Illinois address. As a result of information sharing agreements between the FAA and the Illinois Department of Revenue, it is guaranteed that any aircraft registered with an Illinois address will be scrutinized by the Illinois Department of Revenue.
Publications
Illinois Chamber of Commerce Annual Meeting
Please see the attached flier for our annual meeting on September 24. We are doing a virtual meeting this year. I would like to give special recognition to Tax Institute accounting firm member FGMK who is a Bronze level sponsor.
We have a great speaker lineup - Tim Crane, President of Wintrust Financial Corporation, Tom Ricketts, Chair of the (soon to be 2020 World Champions) Chicago Cubs, and Charles Evans, the President and CEO of the Federal Reserve Bank of Chicago.
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