Illinois General Assembly

The House returned to Springfield February 13 through the 15th.

 

The House and Senate are both in session next week Tuesday through Thursday. 

 

The House Revenue committee met on February 14. The committee did not vote on any legislation. Chairman Zalewski indicated that the next meeting of the Revenue committee will consist of a presentation by the bi-partisan General Assembly Commission on Government Forecasting and Accountability ("COGFA")  As you know, COGFA authors the monthly revenue reports that I link the newsletters.  COGFA will give a presentation on projected state revenues at the next committee hearing.

The House Revenue committee has not yet scheduled a hearing for next week.  

The Senate Revenue committee has scheduled a hearing for February 20.  A number of items have been posted.  At this point, we do not know what bills may be called.

I met with the Senator Steans, the sponsor of  SB 1115, the "waters-edge" election bill.  I explained our strong opposition to this proposal.  I explained why the bill is bad tax policy, is technically flawed in that, among other things the drafters didn't understand the existence of the add back provisions that have been in the Illinois Income Tax Act for more than 10 years, and the revenue projections of the proponents are based invalid and inaccurate projections.  I had the same conversation last week with the House sponsor, Representative Greg Harris.

I also spoke on the weekly COST legislative call to alert the COST membership to SB 1115 and the identical House bill, HB 2085.  We will continue to work with COST as we educate members of the General Assembly about the flawed assumptions underlying these proposals and adverse impact the legislation would have on many of our members.  I'm finalizing a one page summary/fact sheet that we will issue jointly with COST and any other interested organizations.  I will provide you with a copy of that document after it is finalized early next week.

New legislation and proposed constitutional amendments

The flood of new legislation introduced by members of the 101st General Assembly continues. The bill filing deadline is today.  As of this morning, 2992  bills have been introduced in the House and 1500 bills have been introduced in the Senate. A number of tax-related bills have been introduced this week:

SB 1232 - (Steans) -  Amends the Small Business Job Creation Tax Credit Act. Provides that the Act applies for a second set of incentive periods beginning on July 1, 2019 and ending on June 30, 2026. Provides that certain provisions concerning employees who had participated as worker-trainees in the Put Illinois to Work Program during 2010 do not apply to the second set of incentive periods. Provides that the term "basic wage" means not less than $15 per hour (currently, $10). Effective immediately.

SB 1240 - (Link) - Creates the Checkout Bag Tax Act. Imposes a tax of $0.07 on each checkout bag used by a customer at a retail establishment in the State. Provides that the term "checkout bag" means a single use plastic, paper, or compostable bag provided by a retail establishment at the checkout, cash register, point of sale, or other point of departure to a customer for the purpose of transporting goods out of the retail establishment. Sets forth certain exceptions. Provides that the proceeds from the tax shall be distributed as follows: (1) the retailer shall retain $0.02 per bag; (2) the wholesaler shall retain $0.02 per bag; and (3) $0.03 per bag shall be deposited into the Checkout Bag Tax Fund. Amends the State Finance Act to create the Checkout Bag Tax Fund. Provides that moneys in the Fund shall be remitted to counties and municipal joint action agencies. Amends the Counties Code and the Illinois Municipal Code to preempt certain actions by counties and municipalities concerning auxiliary containers or checkout bags.

SB 1296 - (Bush) - Amends the Property Assessed Clean Energy Act. Makes changes adding residential property to the scope of the Act. Modifies the requirements of a report needed to establish a PACE area and requirements before entering into an assessment contract. For program administrators and contracts that finance residential properties of 4 or fewer units: provides for contractor oversight and training for residential properties inside PACE areas; prohibits specified soliciting, advertising, and direct or indirect cash payments or other things of value to property owners; requires a local unit of government and third-party program administrators to develop a disclosure form for homeowners and a right to cancel within 3 business days assessment contracts; and requires an oral confirmation call to property owners with specified minimum requirements for the call. Effective immediately.

SB 1346 - (Ellman) -  Amends the Property Tax Code. With respect to the Senior Citizens Assessment Freeze Homestead Exemption, provides that, beginning in assessment year 2019, the taxpayer's household income shall be reduced by any amounts paid as Medicare premiums. Effective immediately.

SB 1348 - (Weaver) - A mends the Property Tax Code. Provides that the abatement for property located in an area of urban decay also applies to newly remodeled single-family or duplex residential dwelling units (currently, only newly constructed single-family or duplex dwelling units).

SB 1349 - (Weaver) - This bill is an Illinois Chamber of Commerce Tax Institute initiative.   Amends the Uniform Penalty and Interest Act. Provides that the penalty for failure to pay the tax shown due or required to be shown due on a return shall be 15% (instead of 20%) of any amount that is paid after the date the Department of Revenue has initiated an audit or investigation of the taxpayer. Provides that the penalty shall be abated if the taxpayer paid to the Department at least 95% of the total tax liability (including any additional liability resulting from the audit or investigation) prior to the initiation of the audit or investigation. Effective January 1, 2020.

SB 1350 - (Weaver) - This bill is an Illinois Chamber of Commerce Tax Institute initiative.  A mends the Illinois Income Tax Act. Increases the research and development credit by providing that the increase in research and development activities shall be based on an increase over 50% of the average of the qualifying expenditures for each year in the base period (instead of 100% of the average of the qualifying expenditures for each year in the base period). Provides that the research and development credit applies on a permanent basis. Effective immediately.

SB 1362 - (Tom Cullerton) - This bill is an Illinois Chamber of Commerce Tax Institute initiative.  Amends the Tobacco Products Tax Act of 1995. Provides that a retailer who is considered a "retailer maintaining a place of business in this State" under the Use Tax Act is considered a distributor under the Tobacco Products Tax Act of 1995. Provides that, beginning January 1, 2020, the tax per cigar or other rolled tobacco product sold or otherwise disposed of shall not exceed $0.50 per cigar or roll. Effective January 1, 2020.

SB 1379 - (Hutchinson-Harmon) - This bill is an initiative of the Cook County Assessor and is identical to HB 2217.   Amends the Property Tax Code. Provides that, in counties with 3,000,000 or more inhabitants, taxpayers of income producing property shall submit income and expense data related to the property annually to the chief county assessment officer. Provides that, in counties with fewer than 3,000,000 inhabitants, the county board may provide by resolution that taxpayers of income producing property shall submit income and expense data annually to the chief county assessment officer. Provides that, when determining the value of property for assessment purposes, the assessor may consider all relevant information pertaining to the fair cash value of the property, including, but not limited to, income and expense data, sales data, property characteristics data, construction cost data, appraisals, and other valuation information. Effective immediately.

SB 1388 - (Weaver) -  Amends the Illinois Income Tax Act. Creates a credit in an amount equal to the investment made by the taxpayer during the taxable year in a Qualified Opportunity Fund. Provides that no such credit may be taken for any taxable year that begins prior to January 1, 2020. Provides that excess credits may be carried forward or back. Provides that the aggregate amount of the Qualified Opportunity Fund tax credit shall be limited to $100,000,000 per calendar year. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

SB 1390 - (McGuire) - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the manufacturing and assembling machinery and equipment exemption includes production related tangible personal property. Provides that a Manufacturer's Purchase Credit may not be taken on or after July 1, 2019. Effective immediately.

SB 1432 - (Murphy) - Amends the Illinois Income Tax Act. Provides that a taxpayer who may claim a qualifying student as a dependent is allowed a credit of up to $2,000 for qualified tuition and fee expenses paid by the taxpayer. Provides that the term qualifying student means a person who (i) is a resident of the State, (ii) is under the age of 24 at the close of the school year for which a credit is sought, and (iii) during the school year for which a credit is sought, is a full-time student enrolled in a program at a qualifying college or university.

SB 1456 - (Hutchinson) - Amends the Property Tax Code. Provides that certain leasehold property that is used for an airport, for parking, or for waste disposal or processing and is used for a non-exempt purpose is subject to taxation as a leasehold for the period of time during which it is used for that non-exempt purpose. Provides that the use of a portion of that property for a non-exempt purpose shall have no effect on (i) the exemption of the remaining portion of the property that continues to be used for an exempt purpose or (ii) the future exemption of that same portion of the property if it ceases to be used for a non-exempt purpose and returned to use for an exempt purpose.

SB 1461 - (McConchie) - Amends the Property Tax Code. In a Section concerning a reduced extension for a school district's educational purposes, provides that the Section applies if the school district's final percent of adequacy (currently, adequacy target) exceeds 110%. Provides that the referendum petition for the reduction shall be submitted to and certified by the school board's secretary (currently, the applicable election authority). Effective immediately.

SB 1471 - (Tracy) - Amends the Illinois Income Tax Act. Provides that each eligible student is entitled to a refundable income tax credit in an amount equal to $500. Provides that, if the eligible student may be claimed as a dependent on another taxpayer's return, then the taxpayer claiming the eligible student may claim the credit; however, only one taxpayer may claim the credit for any particular student. Effective immediately.

SB 1484 - (Lightford) - Amends the Illinois Income Tax Act. Creates a child tax credit in an amount equal to 10% of the federal tax credit allowed under Section 24 of the federal Internal Revenue Code. Effective immediately.

HB 2138  - (Wheeler) -  Amends the Code of Civil Procedure. Provides that a unit of local government may not seek damages in connection with a temporary restraining order or preliminary injunction based upon a constitutional challenge to a tax. Provides that if a petition is filed in violation of the new provisions, the court shall award the respondent reasonable attorney's fees and costs incurred in connection with the petition. Effective immediately.

HB 2300 - (Morgan) -  Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the manufacturing and assembling machinery and equipment exemption includes production related tangible personal property. Provides that a Manufacturer's Purchase Credit may not be taken on or after July 1, 2019. Effective immediately.

HB 2310 - (Mazzochi) -  Amends the Property Tax Code. Provides that, if an individual or entity (i) has been found by any court, administrative agency, assessor, deputy, or inspector general to have knowingly made fraudulent or material misrepresentations in connection with securing a reduced assessed value for any property and (ii) has a legal interest in any other property subject to the jurisdiction of any other county or township assessor within the State, then the board of review having jurisdiction over that property may initiate and conduct an investigation, and may summon any assessor, deputy, or other person to appear before it, so as to determine the accuracy of the assessed value of that property or the accuracy of the representations previously made by the person or entity regarding the assessment or valuation of that property.

HB 2320 - (Yingling) -  Amends the Property Tax Code. Provides that, for the 2019 and 2020 levy years, the Property Tax Extension Limitation Law applies to all non-home rule taxing districts. Provides that, for the 2019 and 2020 levy year, the extension limitation under the Property Tax Extension Limitation Law is 0% or the rate of increase approved by the voters. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

HB 2331 - (Mayfield) -  Amends the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act. Imposes a 3.75% surcharge on firearms and firearm component parts. Amends the State Finance Act. Creates the Youthbuild Assistance Fund. Provides that the 3.75% surcharge shall be deposited into the Fund. Sets forth the purposes for which moneys in the Fund may be used. Effective immediately.

HB 2332 - (Stuart) - Amends the Illinois Income Tax Act. Provides that the credit for wages paid to qualified veterans also extends to wages paid to a qualified veteran's spouse. Provides that active duty member of the United States Armed Forces are also considered "qualified veterans". Effective immediately.

HB 2404 - (Spain) - 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. Effective immediately.

HB 2413 - (Hurley) - Amends the Property Tax Code. In a Section concerning the Senior Citizens Homestead Exemption, provides that the assessor and the county recorder of deeds shall establish a policy and practice for the regular exchange of information for the purpose of alerting the assessor whenever a transfer of ownership of any property receiving a Senior Citizens Homestead Exemption has occurred. Provides that, if such a transfer occurs, the assessor shall mail a notice to the new owner of the property (i) informing the new owner that the exemption will remain in place through the year of the transfer, after which it will be cancelled, and (ii) providing information pertaining to the rules for reapplying for the exemption if the homeowner qualifies. Effective immediately.

HB 2426 - (Skillicorn) - Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that new redevelopment project areas may not be established under the Act until 2 years after the effective date of the amendatory Act. Repeals the provisions 2 years after the effective date of the amendatory Act. Effective immediately.

HB 2427 - (Skillilcorn) - Amends the Property Tax Code. Provides that each tax bill shall contain a list of each tax increment financing (TIF) district in which the property is located and the dollar amount of tax due that is allocable to the TIF district. Effective immediately.

HB 2428 - (Skillicorn) - Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that if (i) the total equalized assessed value of all taxable property in the taxing district for the current levy year is less than the total equalized assessed value of all taxable property in the taxing district for the previous levy year, or (ii) the median equalized assessed value of all taxable property in the taxing district for the current levy year and the 2 levy years immediately preceding the current levy year is less than the median equalized assessed value of all taxable property in the taxing district for the 3 levy years immediately preceding that 3-year period, then the extension limitation is (a) 0% or (b) the rate of increase approved by voters (instead of the lesser of 5% or the percentage increase in the Consumer Price Index during the 12-month calendar year preceding the levy year or the rate of increase approved by the voters). Effective immediately.

HB 2430 - (Costa Howard) - Amends the Property Tax Code. Provides that, for taxable years 2019 and thereafter, the maximum reduction for the senior citizens homestead exemption is $8,000 in all counties (currently, $8,000 in counties with 3,000,000 or more inhabitants and $5,000 in all other counties). Effective immediately.

HB 2456 - (Jones) - Amends the Illinois Income Tax Act. Provides that each taxpayer who (i) was a resident of another State, (ii) first became a resident of Illinois in a taxable year beginning on or after January 1, 2019, (iii) is employed as a police officer or firefighter in Illinois during the taxable year, (iv) agrees to reside in Illinois for a period of at least 10 consecutive years, and (v) applies to the Department of Revenue for a new resident income tax credit is entitled to an income tax credit in the amount of $15,000 per year. Provides for recapture if the taxpayer fails to reside in the State for a period of at least 10 consecutive years after being approved for a credit by the Department. Provides that the credit is exempt from the Act's automatic sunset. Effective immediately.

HB 2484 - (Severin) - Amends the Property Tax Code. Provides that for providing to the Department of Revenue the Director of Natural Resources and shall be assessed by the Department of Revenue (rather than by proof of a valid facility number issued by the Illinois Environmental Protection Agency). Deletes language regarding the approval procedure for a qualifying water treatment facility, except for language regarding the effective date of certificates. Makes a technical correction concerning a reference to the Department of Natural Resources.

HB 2498 - (Greenwood) - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces the rate of tax on diapers and baby wipes to 1% (currently, 6.25%), changing the distribution of the proceeds from the tax imposed on diapers and baby wipes.

HB 2526 - (Demmer) - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that adult diapers sold as incontinence products are taxed at the rate of 1% (currently, 6.25%).

HB 2542 - (Harper) - Amends the Illinois Income Tax Act. In a Section concerning the credit for wages paid to ex-felons, provides that, if the taxpayer is a business located in a census tract with a high rate of unemployment and violent crime, then (i) the amount of the credit shall be 10% (currently, 5%) of qualified wages paid by the taxpayer during the taxable year to the qualified ex-offender and (ii) the total credit allowed to that taxpayer with respect to each qualified ex-offender may not exceed $3,000 (currently, $1,500) for all taxable years. Provides that, in the case of those taxpayers, the requirement that the ex-felon must be hired by the taxpayer within 3 years after being released from an Illinois adult correctional center does not apply. Effective immediately.

HB 2543 - (Harper) - Amends the State Finance Act to create the Trauma Response Fund as a special fund in the State treasury. Amends the School Code. Requires school boards to develop a trauma response protocol that shall be implemented in response to a traumatic event at a school, including, but not limited to, a shooting at the school. Sets forth various requirements for the protocol, including response by hospitals, trauma intervention services, and community engagement. Provides that all moneys in the Trauma Response Fund shall be paid as grants to school districts to implement the trauma response protocol. Amends the University of Illinois Hospital Act and Hospital Licensing Act to make conforming changes. Amends the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act. Imposes a 1% surcharge on firearm ammunition, which shall be deposited into the Trauma Response Fund. Effective immediately.

HB 2566 - (Stava-Murray) - Amends the Illinois Income Tax Act. Provides that in addition to any tax that may be imposed under Section 201, income from passive investments is subject to an annual surcharge of 0.5%, where the total dollar value of passive investments producing the income equals $2,000,000 or more. Provides that all revenue realized from these provisions shall be deposited into the Common School Fund. Defines "passive activity income".

HB 2568 - (Stava-Murray) - Creates the Corporate Buyback Tax Act. Imposes a tax on the buyback of shares of a publicly held corporation at the rate of 0.25% of the purchase price paid by a corporation for the purchase of its own securities. Applies to publicly held corporations having 100 or more employees. Effective immediately.

HB 2573 - (Zalewski) - This bill is an Illinois Chamber of Commerce Tax Institute initiative. Amends the Revised Uniform Unclaimed Property Act. Provides that property due or owed by a business association resulting from a transaction occurring in the normal and ordinary course of business is exempt from the Act. Provides that an action or proceeding may not be maintained by the administrator more than 10 years after the holder filed a non-fraudulent report with the administrator (rather than after the holder specifically identified the property in a report filed with the administrator or gave express notice to the administrator of a dispute regarding the property). Deletes language regarding the tolling of the period of limitation. Provides instead that the parties may agree to extend the period of limitation. Provides that the administrator may not commence an action, proceeding, or examination with respect to a duty of a holder more than 10 years after the duty arose. Provides that if a person subject to examination does not retain the records, the administrator may use specific estimation techniques to determine the amount of unclaimed property and shall incorporate a net method of extrapolation (rather than determine the value of property due using a reasonable method of estimation based on all information available to the administrator). Deletes language providing that a payment made based on estimation is a penalty for failure to maintain the records and does not relieve a person from an obligation to report and deliver property to a State in which the holder is domiciled. Provides that a holder may request a hearing to contest the use or validity of the estimation technique. Provides that the examination is final upon the failure of the holder to request a hearing. Provides that if a hearing is held, the State Treasurer shall issue an order approving or disapproving the use or validity of the estimation techniques. Deletes language providing that if the administrator contracts with a person, the contract may provide for compensation of the person based on a contingent fee. Deletes language providing that an initial report filed for property that was not required to be reported before the Act took effect must include all items of property that would have been presumed abandoned during the 5-year period preceding the effective date as if the Act had been in effect during that period.

HB 2574 - (Zalewski) - Amends the Illinois Income Tax Act. Provides that any person required to file a federal Form 1099 with respect to a nonresident who performed services within the State during the taxable year shall file a copy of that form with the Department of Revenue. Provides that a third-party settlement organization that is required to file an information return under certain provisions of the Internal Revenue Code shall, within 30 days of the date the filing is due to the Internal Revenue Service, file a duplicate return with the Department of Revenue. Provides that third-party network transactions are subject to the $600 de minimis reporting requirements set forth in the Internal Revenue Code, rather than the de minimis reporting requirements otherwise applicable to third-party settlement organizations under the Internal Revenue Code.

HB 2578 - (Zalewski) - Amends the Property Tax Code. Removes a sunset provision concerning increases in a property's overall valuation that are directly attributable to the investment, improvement, replacement, or expansion of railroad operating property through State or federal government programs necessary for high speed passenger rail transportation (currently, those provisions sunset on December 31, 2019). Effective immediately.

HB 2579 - (Zalewski) - Amends the Illinois Income Tax Act. Creates a deduction for amounts included in the taxpayer's adjusted gross income for certain fringe benefits. Effective immediately.

HB 2581 - (Zalewski) - Amends the Property Tax Code. Provides that, in counties with 3,000,000 or more inhabitants, a taxpayer who has been granted a senior citizens homestead exemption need not reapply for the exemption. Provides that the county assessor shall establish procedures with the county recorder of deeds or the county clerk, as applicable, to determine whether a person who has been granted a senior citizens homestead exemption has conveyed ownership of the property or is deceased. Provides that, if the person has conveyed ownership of the property or is deceased, then the county assessor shall mail notice to the new owner of the property stating that (i) the exemption will be removed from the property and (ii) the new property owner may reapply for the exemption if the property becomes qualified.

HB 2597 - (Durkin) - Amends the Property Tax Code. Repeals the Code on July 1, 2020.

HB 2612 - (Miller) - Amends the Illinois Income Tax Act. Creates a credit in an amount equal to the cost of obtaining an Illinois gun dealer license. Provides that the credit may not exceed $1,500. Effective immediately.

HB 2630 - (Skillicorn) - Amends the Property Tax Code. Provides that, beginning with the 2019 levy year, the Property Tax Extension Limitation Law applies to all taxing districts, including home rule units. Provides that, beginning with the 2019 levy year and until the first levy year to occur after a revenue neutral school funding formula is enacted, the extension limitation under the Property Tax Extension Limitation Law is 0% or the rate of increase approved by the voters. Preempts home rule. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

HB 2645 - (Kifowit) - Amends the Illinois Income Tax Act. Provides that each taxpayer that makes a donation during the taxable year to a startup of an adult day program for adults with intellectual and developmental disabilities is entitled to an income tax credit in an amount equal to the amount of the donation. Effective immediately.

HB 2655 - (Greenwood) - Amends the Property Tax Code. Provides that a taxing district may abate a portion of its taxes on property upon which affordable housing has been or will be constructed in a development mixed with commercial property. The value of the abatement under this paragraph (12) may not exceed $500,000.

HB 2664 - (Robinson) - Amends the Revised Uniform Unclaimed Property Act. Provides that the Act does not apply to any annuity, pension, or benefit funds held in a fiduciary capacity by a retirement system. Provides that property assumed abandoned in an annuity, pension, or benefit fund held in a fiduciary capacity by a retirement system shall be reported by the retirement system to the administrator. Provides that no retirement system shall pay or deliver any annuity, pension, or benefit funds held in a fiduciary capacity to the administrator. Provides, with exceptions, that the provisions are retroactive to January 1, 2018.

HB 2677 - (Zalewski) - Amends the Revised Uniform Unclaimed Property Act. Makes changes concerning the time and circumstances under which financial organization deposits are presumed abandoned. Makes changes in provisions governing extending the reporting date of certain reported renewable time deposits. Deletes language requiring a holder to inform the administrator to provide a telephone number to contact the administrator to inquire about or claim property. Provides that the administrator does not need to notify the Department of Revenue of the names or social security numbers of apparent owners of abandoned property if he or she reasonably believes that the Department of Revenue will be unable to provide information that would provide sufficient evidence to establish that the person in the Department of Revenue's records is the apparent owner of unclaimed property in the custody of the administrator. Provides that the State Treasurer may, at reasonable times and upon reasonable notice: (1) examine the records of specified types of financial organizations under certain conditions; (2) issue an administrative subpoena requiring the financial organization to make records available for examination; and (3) bring an action seeking judicial enforcement of the subpoena. Provides that records obtained in examinations of State-regulated financial organizations are subject to the same provisions concerning use and confidentiality as records obtained in examinations of other persons. Makes other changes. Effective immediately.

HB 2682 - (Zalewski) - 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 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 Local Government Aviation Trust Fund shall be used by 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 moneys received from the tax paid on aviation fuel shall be deposited into those Funds. Amends the Motor Fuel Tax Law to provide that certain money received by the Department of Revenue for aviation fuel sold or used on or after December 1 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. Amends the Illinois Municipal Code. Requires municipalities that have implemented a Residential Sound Insulation Program to perform an in-home air quality test at a residence located in the municipality if certain conditions are met. Effective immediately.

HB 2706 - Amends the Property Tax Code. Provides for a homestead exemption for homestead properties located within 1,000 feet of an industrial park or a business park if (i) the development related to that industrial park or business park commenced after the owner first resided at that location and (ii) the property is principal place of residence of the owner. Provides that the amount of the exemption shall be a reduction of $5,000 from the equalized assessed value of the property.

HB 2725 - (Demmer) - Amends the Property Tax Code. Provides that the assessor or chief county assessment officer shall automatically apply the general homestead exemption to any qualified property that was approved for and received a general homestead exemption in the immediately preceding year.

HB 2726 - (Demmer) - Creates the Taxpayer Advocate and Empowerment Act. Creates the Office of Taxpayer Advocate as an independent agency. Provides that the Taxpayer Advocate shall be appointed by a joint resolution of the Senate and the House of Representatives. Provides that the Taxpayer Advocate shall serve for an 8-year term. Sets forth the duties and salary of the Taxpayer Advocate. Provides for 2 Deputy Taxpayer Advocates and employees of the Office of Taxpayer Advocate. Effective January 1, 2020.

HB 2735 - (Tarver) - Amends the Small Business Job Creation Tax Credit Act. Renews the program for incentive periods beginning on or after July 1, 2018 and ending on or before June 30, 2025. Removes language concerning the Put Illinois to Work Program for the second series of incentive periods. Provides that the term "full-time employee" means an individual who is employed for a basic wage for at least 35 hours each week (currently, employed for a basic wage for at least 35 hours each week or renders any other standard of service generally accepted by industry custom or practice as full-time employment). Provides that a net increase in the number of full-time Illinois employees shall be treated as continuous if a different new employee is hired as a replacement within 8 weeks after the position becomes vacant (currently, a reasonable time). Effective immediately.

HB 2753 - (Morrison) - Amends the Illinois Income Tax Act. Increases the maximum amount of the education expense credit to $1,500 (currently, $500). Adds athletic fees, driver's education fees, and fees and costs associated with certain out-of-school activities to the list of qualified education expenses. Effective immediately.

HB 2758 - (Morrison) - Amends the Property Tax Code. Beginning in taxable year 2019, increases the maximum income limitation under the Senior Citizens Assessment Freeze Homestead Exemption from $65,000 to $75,000 for applicants who have occupied the residence for 5 years or more. Indexes the maximum income limitation to the Consumer Price Index. Effective immediately.

HB 2773 - (Meyers-Martin) - Amends the Hotel Operators' Occupation Tax Act, the Counties Code, the Illinois Municipal Code, the Metropolitan Pier and Exposition Authority Act, the Illinois Sports Facilities Authority Act, and the Downstate Illinois Sports Facilities Authority Act. Provides that no tax is imposed under the Acts on the renting, leasing, or letting of hotel rooms to the American Red Cross for the provision or coordination of disaster relief services. Effective immediately.

HB 2774 - (Meyers-Martin) - Amends the Illinois Income Tax Act. Creates an income tax credit in the amount of $250 for taxpayers who (i) adopt an animal from a no kill animal shelter and (ii) retain ownership of the animal for a period of 6 consecutive months during the taxable year. Effective immediately.

HB 2775 - (Meyers-Martin) - Amends the Property Tax Code. Provides that the Senior Citizens Assessment Freeze Homestead Exemption also applies to persons with a disability. Amends the State Mandates Act to make conforming changes. Effective immediately.

HB 2780 - (Chesney) - Amends the Counties Code. Provides that a county board that imposes a non-home rule hotel tax may, by ordinance, impose up to a 1% additional hotel tax in the county, except not in municipalities that already impose a hotel tax. Prohibits taxes from being imposed on gross rental receipts of permanent residents of a hotel, motel, or resort. Provides that the additional hotel tax shall be used by the county for the costs associated with providing infrastructure, police protection, and emergency services in support of tourism and conventions within the county. Effective immediately.

HB 2791 - (Yednock) - Amends the Illinois Income Tax Act. Creates a deduction for the full amount of union dues paid by the taxpayer during the taxable year if the taxpayer was not allowed a federal deduction under the Internal Revenue Code. Provides that, if any amount of union dues representing federal miscellaneous itemized deductions was allowed as a federal deduction, then the amount allowed as an Illinois deduction shall be a percentage of the union dues disallowed under the Internal Revenue Code. Provides that the deduction is exempt from the Act's automatic sunset provision. Effective immediately.

HB 2804 - (Welch) - Amends the Illinois Municipal Code. Provides that a municipality may, by ordinance, impose a tax on motor fuel in one cent per gallon increments, but not to exceed $0.05 per gallon total (currently, a municipality of over 100,000 inhabitants may impose such a tax, but only upon referendum approval and only at the rate of one cent per gallon). Effective immediately.

HB 2807 - (Edly-Allen) - Amends the Property Tax Code. Provides that the maximum reduction under the senior citizens homestead exemption is $8,000 in all counties (currently, $8,000 in counties with 3,000,000 or more inhabitants and $5,000 in all other counties). Provides that, for taxable years 2019 and thereafter, the maximum reduction under the general homestead exemption is $10,000 in counties with 3,000,000 or more inhabitants and $8,000 in all other counties (currently, $10,000 in counties with 3,000,000 or more inhabitants and $6,000 in all other counties). Effective immediately.

HB 2808 - (Edly-Allen) - Amends the Illinois Income Tax Act. Provides that the credit for instructional materials and supplies may not exceed $500 (currently, $250). Effective immediately.

HB 2834 - (Skillicorn) - Amends the Illinois Income Tax Act. Creates a deduction in an amount equal to the amount received by the taxpayer in gratuities during the taxable year. Provides that the deduction is exempt from the Act's automatic sunset provision. Effective immediately.

HB 2835 - (Skillicorn)  - Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that, if a taxing district's actual aggregate extension for any levy year is less than its maximum aggregate extension under that Law for that levy year, then, in any of the next 5 levy years, the district may provide that its maximum aggregate extension and limiting rate for any levy year occurring on or after the date the ordinance or resolution is passed shall be calculated as though the taxing district had used its entire maximum aggregate extension for the levy year in which its actual extension was reduced, subject to a public hearing. Effective immediately.

HB 2843 - (Spain) - Amends the Home Rule Municipal Use Tax Act in the Illinois Municipal Code. Provides that all home rule municipalities imposing a home rule municipal use tax (rather than only home rule municipalities with 2,000,000 or more inhabitants) may impose an additional use tax at a rate that is an increment of 1/4% not to exceed 1% and based on the selling price of the tangible personal property. Provides that the Department of Revenue may collect a 2% monthly administrative fee from the amount to be remitted back to a municipality with under 2,000,000 inhabitants. Effective July 1, 2019.

HB 2853 - (Zalewski) - Amends the Revised Uniform Unclaimed Property Act. Makes changes concerning the time and circumstances under which financial organization deposits are presumed abandoned. Provides that compensation held on a payroll card is reportable one year after the date of the last indication of interest in the property by the apparent owner, except if the payroll card becomes a demand deposit, then 3 years after the date of the last indication of interest in the property by the apparent owner. Provides that the administrator does not need to notify the Department of Revenue of the names or social security numbers of apparent owners of abandoned property if he or she reasonably believes that the Department of Revenue will be unable to provide information that would provide sufficient evidence to establish that the person in the Department of Revenue's records is the apparent owner of unclaimed property in the custody of the administrator. Provides that the State Treasurer shall examine a financial organization in compliance with the visitation standards established in the National Bank Act or the Federal Credit Union Act, if applicable. Provides that records obtained in examinations of State-regulated financial organizations are subject to the same provisions concerning use and confidentiality as records obtained in examinations of other persons. Makes other changes. Effective immediately.

HB 2864 - (Evans) - mends the Motor Fuel Tax Law. Creates the per-mile road usage charge pilot program. Provides that the registered owner of a motor vehicle that is approved to participate in the program shall, in lieu of the taxes imposed under the Motor Fuel Tax Law, pay a per-mile road usage charge for metered use by the subject vehicle of the highways in this State. Provides that the per-mile road usage charge is $0.021 per mile. Effective immediately.

HB 2866 - (Scherer) - Amends the Property Tax Code. Provides for a homestead exemption in the amount of $5,000 for property that is owned and occupied as the principal residence of an active duty member of the military. Effective immediately.

HB 2867 - (Scherer) - 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.

HB 2869 - (West) - Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2020, the earned income tax credit shall be 36% (currently, 18%) of the federal tax credit.

HB 2873 - (Moylan) - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, during the week of Veterans Day each year, food for human consumption that is to be consumed off the premises where it is sold as well as prescription and nonprescription medications and certain medical appliances are exempt from the tax imposed under the Acts if the item is purchased by a veteran. Provides that the tax imposed on other merchandise is imposed at the rate of 5% during the same period if the item is purchased by a veteran. Effective immediately.

HB 2879 - (Moylan) - Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to the amount paid by the taxpayer during the taxable year for the purpose of purchasing acoustical materials, other materials, labor, and professional services to soundproof a residential home located at an eligible address against aircraft noise generated by an airport governed by the provisions of the Permanent Noise Monitoring Act. Provides that the credit may not reduce the taxpayer's liability to less than zero; however, the credit may be carried forward. Provides that the credit is exempt from the Act's automatic sunset provisions. Effective immediately.

HB 2880 - (Guzzardi) - Creates the Prescription Drug Price Increase Tax Act. Imposes a tax on each establishment that makes the first sale of a covered outpatient drug within the State. Provides that the term "first sale" means an initial sale of a covered outpatient drug from a manufacturer to a wholesaler or from a wholesaler to a pharmacy. Provides that the tax shall be charged against and paid by the establishment making the first sale and shall not be added as a separate charge or line item or otherwise passed down on any invoice to the customer. Provides that the proceeds shall be deposited into the Prescription Drug Fairness Fund and used by the Department of Healthcare and Family Services. Amends the State Finance Act to create the Prescription Drug Fairness Fund.

HB 2900 - (DeLuca) - Amends the Illinois Income Tax Act if and only if Senate Bill 1 of the 101st General Assembly becomes law. Provides that a withholding tax credit for full-time equivalent employees created in Senate Bill 1 applies for reporting periods that begin on or after January 1, 2020 (in the bill, reporting periods that begin on or after January 1, 2020 and end on or before December 31, 2027). Provides that the maximum credit is determined by the Metropolitan and Nonmetropolitan area of the State that is the base of operations of the employee, as those areas are determined as of May 2017. Makes changes concerning the amount of the credit based on the Metropolitan and Nonmetropolitan area of the State. Effective immediately.

HB 2918 - (Welch) - Amends the Hotel Operators' Occupation Tax Act. Provides that an additional tax shall be imposed at the rate of 1% of 94% of the gross rental receipts from the renting, leasing, or letting of hotel rooms. Provides that the proceeds from the additional tax shall be deposited into the Illinois Experience Fund. Provides that moneys in the Illinois Experience Fund shall be used to create, enhance, and promote artistic and cultural events and expositions in the State. Amends the State Finance Act to create the Fund. Effective immediately.

HB 2920 - (Slaughter) - Amends the Illinois Income Tax Act. Creates an income tax credit and a credit against insurance premium taxes for business entities for the cost of providing certain commuter benefits to employees. Provides that the credit shall be equal to 50% of the cost of providing the eligible commuter benefits, but not to exceed $100 per individual employee per month.

HB 2943 - (Davis) - Amends the Motor Fuel Tax Law. Provides that on and after July 1, 2019, the costs of the Environmental Protection Agency for the administration of the Vehicle Emissions Inspection Law of 2005 are to be paid from the Motor Fuel Tax Fund. Effective immediately.

HB 2947 - (Zalewski) - Amends the Retailers' Occupation Tax Act. Provides that, subject to certain restrictions, if the Department of Revenue may disclose confidential financial information to a municipality or county, then the Department of Revenue may also disclose that financial information to an independent third party who is authorized in writing by that municipality or county to receive the information. Effective immediately.

HB 2950 - (Welter) - Amends the Property Tax Code. Makes the following changes with respect to the homestead exemption for veterans with disabilities: (1) provides that the exemption shall be prorated if the property is first used as a qualified residence by a veteran with a disability after January 1 of a taxable year; and (2) makes changes to the definition of "surviving spouse" to include the surviving spouse of a veteran who did not obtain an exemption before death, but who applied for a service-connected disability certification from the United States Department of Veterans Affairs or the United States Department of Defense no earlier than January 1, 2007 and would have qualified for the exemption under this Section in the current taxable year if he or she had survived. Effective immediately.

HB 2951 - (Welter) - Amends the Property Tax Code. Provides that the Senior Citizens Assessment Freeze Homestead Exemption also applies to persons who are quadriplegic; defines "person who is quadriplegic". Amends the State Mandates Act to make conforming changes. Effective immediately.

HB 2959 - (Buckner) - Amends the Illinois Income Tax Act. Creates an income tax credit for each taxpayer (i) whose federal adjusted gross income is less than 185% of the federal poverty level and (ii) who is the custodian of a child who attends a high quality early childhood education program during the taxable year. Provides that the term "high quality early childhood education program" means a program that is rated in the Gold Circle of Quality or the Silver Circle of Quality under the ExceleRate Illinois rating system. Creates an income tax credit for a business that (i) provides an early childhood program that is rated in the Gold Circle of Quality or the Silver Circle of Quality under the ExceleRate Illinois rating system and (ii) enrolls a student for at least 6 months during the taxable year who (A) is eligible for the child care assistance program, (B) receives foster care services, or (C) both (A) and (B). Creates an income tax credit for employees of a licensed day care center, day care home, or group day care home who obtain certain certifications. Effective immediately.

HB 2964 - (Smith) - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that a portion of the net revenue realized from the tax imposed on motor vehicles shall be deposited into the Road Fund. Effective immediately.

HB 2973 - (Walker) - Amends the Illinois Income Tax Act. Provides that a taxpayer who (i) has an associate's degree, a bachelor's degree, or a graduate degree from an institution of higher education accredited by the U.S. Department of Education, (ii) has annual student loan repayment expenses, and (iii) is employed full-time in the State, or has an offer of full-time employment in the State, in one or more of the specified science and technology fields is eligible for an income tax credit equal to the taxpayer's student loan repayment expenses for the taxable year, but not to exceed a maximum credit limit. Effective immediately.

HB 2974 - (Moeller) - Amends the Illinois Income Tax Act. Provides that a taxpayer who is a family caregiver is eligible to receive a nonrefundable income tax credit in an amount equal to 100% of the eligible expenditures incurred by the taxpayer during the taxable year related to the care of an eligible family member, but not exceed $1,500 for the same eligible family member. Provides that the term "eligible family member" means a person who: (1) is at least 18 years of age during a taxable year; (2) requires assistance with at least one activity of daily living; (3) is a resident of the State; and (4) is related to the family caregiver. Effective immediately.

Rulemaking