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August 17, 2018
State and Local Tax this week
Illinois General Assembly
The General Assembly returns to Springfield for the fall veto session on November 13. The House and Senate are scheduled to be in session November 13 through 15 and November 27 through 29.
No new tax-related legislation was filed this week.
As noted last week, the House Revenue committee has scheduled two joint hearings with the Gaming Subcommittee of the House Executive committee to take testimony on House Comittee amendment 3 to SB 7. The hearings are scheduled for August 22 in Chicago and October 3 in Springfield.
The following tax-related legislation was signed by the Governor this week:
SB 1437 - (P.A. 100-0865)
Amends the Illinois Income Tax Act and extends the standard exemption to taxable years ending on or before December 31, 2023.
SB 2274 - (P.A. 100-0834) Amends the Property Tax Code and provides that a transfer between spouses does not disqualify wooded acreage from the provisions for the assessment of untransferred wooded acreage.
SB 2306 - (P.A. 100-0869) Amends the Property Tax Code and 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.
SB 2644 - (P.A. 100-0880) Amends the Illinois Administrative Procedure Act and provides that notice to parties in a contested case under the Act shall be served, among other forms of service, by email. At any time either before or after its issuance of a hearing notice, an agency may require any attorney representing a party to the hearing to provide one or more email addresses at which they shall (rather than consent to) accept service of documents in connection with the hearing.
SB 2667 - (P.A. 100-0838) Amends the Illinois Enterprise Zone Act. In a Section concerning qualifications for enterprise zones, provides that the applicant's plan for participation by minorities, women, and persons with disabilities is included in the list of qualifying factors. Effective immediately.
SB 3215 - (P.A. 100-0890) Amends the Property Tax Code. In provisions concerning sales in error, provides that, in cases where improvements upon the property sold have been substantially destroyed or rendered uninhabitable or otherwise unfit for occupancy, the court may order the holder of the certificate of purchase to assign the certificate to the county collector, upon request of the county collector. The enacted law also provides that, if a certificate has been assigned to the county collector by court order, then the period of redemption shall be extended for a period of time designated by the holder of the certificate, which may not exceed 36 months from the date of the assignment to the collector (in the introduced bill, extended for 36 months).
Rulemaking
The August 17 edition of the
Illinois Register did not contain any new rulemakings by the Illinois Department of Revenue or t
he Department of Commerce and Economic Opportunity.
The Department of Commerce and Economic Opportunity withdrew a proposed rulemaking published originally in the June 22, edition of the Illinois Register. You may recall that the proposed amendments filed by DCEO were controversial in a number of respects. The withdrawal notice filed by DCEO states as follows:
"Upon a further review conducted by the Department, it has been determined that several unintended consequences may occur as a result of these changes, in particular, as it relates to the provisions concerning a designated High Impact Business's failure to maintain eligibility. For instance, failure to notify the Department that a Company is not in good standing with the Illinois Secretary of State within 30 days after the occurrence of the event may prove problematic in that a delay in notice may occur within the Illinois Secretary of State's Office or the Office may mistakenly identify an incorrect organization in their determination of good standing. Such instances, while not common, have been known to occur. Additionally, failure to notify the Department that the business is the subject of an investigation by any State or federal regulatory, law enforcement, or legal authority would seemingly encompass a number of routine legal proceedings, of which companies with High Impact Business designations are often subject to. The Department will continue to review and assess the potential impact of the withdrawn rule changes and consider a submission of altered rules pertaining to this subject matter."
The Illinois Department of Revenue published a summary of sales tax and miscellaneous tax general information letters and private letter rulings issued during the second quarter of 2018. he Department issued only one private letter ruling during the second quarter. That private letter ruling ST 18-0005-PLR deals with the sourcing of sales for the purpose of determining applicable local taxes.
Publications
Mary Kay Martire of Tax Institute member law firm McDermott Will & Emery published an article entitled
Illinois Captive Insurance Regulatory and Tax Reform in which she and her colleagues at MWE provide an in-depth analysis of
SB 1737, a
captive insurance and self-procurement tax law is awaiting the governor's signature. As they note, this new business-friendly law may provide a substantially improved environment for Illinois-based companies looking for captive solutions.
The Illinois General Assembly's bi-partisan Commission on Government Forecasting and Accountability recently published State of Illinois Budget Summary for Fiscal Year 2019. If you have an inclination to do a deep dive into the state budget process and detailed FY 2019 budget data, this is the document to review.
Please send me links to your publications for inclusion in the newsletter. The Illinois Chamber also maintains the
Chamber Dispatch Blog on our website. This blog is is open to the general public. We are happy to receive short submissions from members for inclusion on the blog. We can also include short summaries with links to articles or publications. Contact me for additional details on how to participate.
Tax Tribunal
No new decisions were issued by the Tribunal this week. None of the new cases recently filed with the Tax Tribunal raise unique issues..
Tax Institute Third Quarter Meeting
The Tax Institute Third Quarter meeting is September 19 from 2:00 - 4:00 hosted by Grant Thornton. Mark Dyckman, Illinois Department of Revenue General Counsel will provide an update about the Department's current review of the audit/settlement process and will take questions and comments from the members. Gary Lindsey of AT&T will lead a discussion of ASC 740 implications of tax rate changes and discuss state legislation enacted in other states to address the impact of permanent rate changes on deferred taxes. A formal invitation will be sent next week, but in the interim you can RSVP to me at [email protected]
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