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November 21, 2018
State and Local Tax this week
Illinois General Assembly
The General Assembly returns to Springfield for the fall veto session on November 27 through 29.
The House Revenue committee is scheduled to meet next Wednesday morning. The following bills have been posted for committee consideration:
HB 156 -
There was a House motion to concur with a Senate amendment to the bill. After the bill passed the House last spring, the Senate gutted the original bill and amended it to amend the Enterprise Zone Act provisions dealing with zone qualifications to authorize the former Zion nuclear power plant to qualify as an enterprise zone.
HB 4560 - As amended by the Senate, the bill modifies the Special County Retailers' Occupation Tax for Public Safety, Public Facilities or Transportation to extend the scope of the tax to include use by counties for mental health or substance abuse purposes. In order to impose this tax, it must be approved by the county board and approved by a voter referendum. The bill was passed by the Senate unanimously on Thursday of the first week of the veto session.
HB 5936- This bill extends certain downstate TIFs
HB 5975 - The legislation proposes to overturn a referendum for the Berwyn South School District that increased the limiting rate under the Property Tax Extension Limitation Law.
SB 2744 - This bill as it passed the Senate a
mends the Property Tax Code and makes changes concerning qualifications for township and multi-township assessors and supervisors of assessments. Provides that a complete list of assessments made by the Department of Revenue shall be posted on the Department of Revenue's official website and the State's official newspaper. Provides that tentative and final equalization factors shall be published on the Department of Revenue's official website. Provides that the effective date of a pollution control facility certificate is the date of recommendation by the Illinois Environmental Protection Agency to the Illinois Pollution Control Board for the certificate or the date of the construction of the facility, whichever is later. Provides that a qualifying water treatment facility shall be certified by the Department of Revenue (rather than the Department of Natural Resources).
SB 3242 - This bill amends the Property Tax Code. Makes structural changes concerning homestead exemptions by creating separate divisions for homestead exemptions in counties with 3,000,000 or more inhabitants and counties with fewer than 3,000,000 inhabitants. Effective January 1, 2019.
SB 3430 - This legislation Amends the Property Tax Code. In provisions concerning tax objections based on budget or appropriation ordinances, provides that no objection to any property tax levied by any municipality or county (rather than by any municipality) shall be sustained by any court under certain conditions. Removes forest preserve districts having a population of 3,000,000 or more from the definition of "municipality" in those provisions. Effective immediately.
The Senate Revenue committee is scheduled to meet next Tuesday afternoon. The following bills are scheduled for consideration by the committee:
HB 1193 - this bill is a downstate TIF extension bill.
House Executive committee -
SB 514
If and only if Senate Bill 2641, as amended by House Amendment No. 3 and House Amendment No. 4, becomes law, amends the Use Tax Act, the Retailers' Occupation Tax Act, the Automobile Renting Occupation and Use Tax Act, the Counties Code, the Illinois Municipal Code, the Illinois Vehicle Code, the Automated Traffic Control Systems in Highway Construction or Maintenance Zones Act, and the Renter's Financial Responsibility and Protection Act. In the Use Tax Act, provides that the purchase of a vehicle that will be used in a personal car facilitation transaction is not exempt from specific sales and use taxes. In the Retailers' Occupation Tax Act, provides that the sale of a vehicle that will be used in a personal car facilitation transaction is not exempt from specific sales and use taxes. In the Automobile Renting Occupation and Use Tax Act, changes the definition for "rentor".
Publications
Rulemaking
The Illinois Register will not be published on Friday this week because of the Thanksgiving holiday. The Illinois Register will be published twice next week - Monday November 26 and Friday November 30.
Court cases and Admin. Hearing Decisions
In this case, the owners of the North Riverside Mall entered into agreements with two auto dealers to store new, but unsold motor vehicles in its parking garage. The mall owners didn't charge and collect the county parking tax from the dealers.The Cook County Department of Revenue issued an assessment for county parking tax to the mall owner.
The mall owners advanced a number of arguments as to why it should not be subject to the parking tax. The administrative law judge rejected the arguments put forth by the mall owners and upheld the assessment.
The City of East Peoria brought an administrative review action to challenge the decision of the Property Tax Appeal Board ("PTAB") rejecting East Peoria's appraisal evidence, defaultingEast Peoria, denying East Peoria's motion to vacate and its request for a hearing and objection lower Par-A-Dice's property tax assessment. The court reversed PTAB's determination that East Peoria was not a party, and vacated PTAB's decision and remanded the case back to PTAB.
Par-A-Dice filed a proceeding with PTAB seeking a lower property tax assessment. East Peoria sought to intervene in the proceeding. PTAB gave East Peoria a deadline to submit an appraisal challenging the position taken by Par-A-Dice East Peoria missed the deadline. PTAB defaulted East Peoria and made its determination based on evidence in the record - apparently without a hearing.
PTAB declined to vacate the default in response to East Peoria's motion.
PTAB declined to accept the late-filed appraisal despite the arguments of East Peoria to the contrary.
The court found that PTAB's denial of the Par-A-Dice motions to vacate the default and a hearing were erroneous and remanded the case back to PTAB.
Tax Tribunal
No new decisions were issued this week by the Tribunal. One
new case filed with the Tribunal may be of interest.
Sazerac Company Inc. v. Illinois Department of Revenue. This is an income tax case and deals with whether one of the members of the unitary business group should have its gross receipts excluded from the numerator of the sales factor because its activities were limited to mere solicitation within the meaning of P.L. 86-272. Sazerac is represented by Fred Marcus, David Machemer and Samantha Breslow of Chamber Tax Institute member law firm Horwood Marcus & Berk.
Yosef and Chana Meystel v. Department of Revenue is a protest of an income tax claim denial. It appears that the protest was filed by an accounting firm on behalf of the taxpayers, which, of course, is a violation of the rules on representation at the Tax Tribunal.
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