|
January 12, 2018
State and Local Tax this week
Illinois General Assembly
The House is scheduled to return to Springfield on January 23 and the Senate is scheduled to return to Springfield on January 30.
New Legislation:
HB 4219 - Bourne -
Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that no tax shall be imposed under the Act for persons dying on or after the effective date of the amendatory Act or for transfers made on or after the effective date of the amendatory Act.
Amends the Illinois Enterprise Zone Act. Provides that, in calendar year 2018, the Department of Commerce and Economic Opportunity may certify an additional 25 Enterprise Zones. Provides that, for Enterprise Zones scheduled to expire after January 1, 2023, the application process shall begin 5 years prior to the year in which the Zone expires. Provides that the Department of Commerce and Economic Opportunity may award partial points during the application process if the applicant demonstrates job creation and investment levels below the threshold set forth in the statute. Provides that the Department of Commerce and Economic Opportunity may adjust the scoring for applicants that are located entirely within a county with a population of less than 300,000 if the Department finds that the designation will help to alleviate the effects of poverty and unemployment within the proposed Enterprise Zone. Provides for provisional certification of substantially complete Enterprise Zone applications.
Amends the State Finance Act. Creates the State Aviation Program Fund, the Local Government Aviation Trust Fund, and the Aviation Fuel Sales Tax Refund Fund. Provides that moneys in the State Aviation Program Fund and the Local Government Aviation Trust Fund shall be used by the Department of Transportation for the purposes of administering a State Aviation Program. Provides that the State Aviation Program shall include grants to units of local government for airport-related purposes. Provides that moneys in the Aviation Fuel Sales Tax Refund Fund shall be used by the Department of Revenue to pay refunds. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act to provide that the local share of moneys received from the tax paid on aviation fuel shall be deposited into those Funds. Amends the Motor Fuel Tax Law. Provides that aviation fuel sold or used on or after June 23, 2018 shall be deposited into the State Aviation Program Fund. Amends the Innovation Development and Economy Act, the Counties Code, the Illinois Municipal Code, the Civic Center Code, the Flood Prevention District Act, the Metro-East Park and Recreation District Act, the Local Mass Transit District Act, the Regional Transportation Authority Act, and the Water Commission Act of 1985. Prohibits certain local retailers' occupation taxes on aviation fuel unless the unit of local government has an airport-related purpose. Provides that the proceeds from those taxes on aviation fuel shall be deposited into the Local Government Aviation Trust Fund. Amends the Illinois Municipal Code. Contains provisions concerning a Residential Sound Insulation Program.
Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to the contributions made by the taxpayer to the Illinois Excellence Fund during the taxable year. Amends the State Finance Act. Creates the Illinois Excellence Fund. Provides that moneys in the Fund shall be used for exclusively public purposes, as specified under Section 170 of the Internal Revenue Code relating to charitable contributions and gifts. Amends the Counties Code. Provides that the county board may establish a fund in the county treasury for the purpose of accepting contributions for exclusively public purposes, as specified under Section 170 of the Internal Revenue Code relating to charitable contributions and gifts and may provide for a credit against the taxpayer's property tax liability in an amount equal to the amount of the contribution.
Amends the Property Tax Code. Provides that a transfer between spouses does not disqualify wooded acreage from the provisions for the assessment of untransferred wooded acreage.
Amends the Property Tax Code. Provides that, for taxable year 2018 and thereafter, the maximum income limitation under the senior citizens assessment freeze homestead exemption is $75,000 (currently, $65,000).
SB 2306 - Murphy -
Amends the Property Tax Code. Provides that the homestead exemption for veterans with disabilities shall be prorated if the person qualifying for the exemption does not occupy the qualified residence as of January 1 of the taxable year.
SJRCA0018 - Murphy -
Proposes to amend the Revenue Article of the Illinois Constitution. Provides for an additional tax on individuals in an amount equal to 3% of income greater than $1,000,000 for the taxable year. Provides that 75% of the revenue collected from the tax shall be distributed to school districts solely to provide for kindergarten through grade 12 education, and 25% of the revenue collected from the tax shall be distributed to public institutions of higher education.
Court cases
At issue in the appeal is whether a law firm serving both as client and attorney may recover statutory attorney fees under the Act. The appellate court ruled that the law firm may not recover attorney fees in such a situation.
My Pillow, Inc. is represented by Tax Institute member law firm McDermott Will and Emery.
The goal of the Chamber's amicus program is to provide a consistent, strong voice for the business community in cases before the Supreme and appellate courts via amicus briefs on key business issues. The program's primary focus is on tort related cases, but we will take up other types of cases when appropriate.
While the Chamber's full Board of Directors retains ultimate governance for all Chamber activities, this program is overseen by a special Governing Committee (GC) made up of Chamber members and supporters of the program, including representation from CJRG. The GC is responsible for reviewing the work of the attorney committee (described below), prioritizing cases for briefs, reviewing briefs and generally supporting the success of the program. The Chair of the committee is Doug Darch of Baker & McKenzie.
A committee of respected defense attorneys review cases on appeal to the Supreme Court and makes recommendations to the GC as to which cases should be considered for amicus. Recommendations from the attorney committee are supplemented by recommendations from the Governing Committee and other Chamber members.
The January 12 edition of the Illinois Register did not contain any rulemakings by the Illinois Department of Revenue or the Department of Commerce and Economic Opportunity. The January 12 edition of the Illinois Register contains the regulatory agenda of the Illinois Department of Revenue for the first six months of this year.
Tax Tribunal
No new decisions were issued by the Tribunal this week. None new petitions filed with the Tribunal raise any unique issues.
Save the Dates - Tax Institute Quarterly Meeting Dates for 2018
First Quarter meeting of the Tax Institute has been scheduled for March 12 from 2:00 - 4:00 p.m. at the office of True Partners Consulting LLC - Featured speaker: IDOR Director Connie Beard
The remaining quarterly meetings have been tentatively scheduled for the following dates: June 12, September 19 and November 13. We plan to hold the meetings in Chicago from 2:00 - 4:00 pm.
Let me know if you would like to host any of the other meetings.
Don't forget that one of the benefits of membership in the Tax Institute is that attendance at Tax Institute quarterly meetings will qualify for Illinois CPE (certified public accountants) and CLE (attorneys). This year for the first time, we will offer one hour of ethics training credit. Tax Institute member law firm Horwood Marcus & Berk has volunteered to present ethics training at our June 12 meeting.
|
