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October 26, 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.
New legislation of interest filed this week:
HB 5982 - McSweeney - Amends the Illinois Administrative Procedure Act. Provides that an agency that proposes a new rule or amendment to a rule shall, before or during the first notice period, provide an opportunity for private sector entities to participate in the rulemaking process by utilizing specified techniques, as well as providing those private sector entities with the opportunity to submit their own estimates on the cost of compliance with the proposed rule or amendment. Requires an agency to include those estimates in both a final regulatory flexibility analysis and an analysis of the economic and budgetary effects of the proposed rulemaking. Provides that prior to the filing for publication in the Illinois Register of any proposed rule or amendment, each agency shall estimate the compliance and implementation costs for private parties for that proposed rule or amendment. Extends the maximum length of the second notice period from 90 days to 135 days. Provides that a rule estimated either by an agency or during the second notice period to generate compliance and implementation costs of $10,000,000 or more over a 2-year period shall be deemed objectionable and automatically prohibited, and the Joint Committee on Administrative Rules shall issue a statement to that effect in accordance with specified provisions. Provides that the proposed rule or amendment shall remain prohibited until otherwise authorized by legislation passed by both houses of the General Assembly and signed by the Governor. Provides that any adopted emergency rule estimated to generate compliance and implementation costs of $10,000,000 or more over the term of the emergency rule shall be automatically suspended until otherwise authorized by legislation passed by both houses of the General Assembly and signed by the Governor. Requires the Commission on Government Forecasting and Accountability to publish an annual inflation index to measure the rise in costs stemming from the implementation of rules and amendments to rules. Provides that the Joint Committee has the power to request the Auditor General to perform an independent estimate to assess the cost of a proposed rule or amendment, or the cost of an emergency rule. Provides further requirements concerning the prohibition of proposed rules or amendments. Makes conforming changes.
Rulemaking
The October 26 edition of the Illinois Register
did not contain any new rulemakings by
the Illinois Department of Commerce and Economic Opportunity. The Department of Revenue.
The Department of Revenue adopted one new income tax rulemaking. The Department adopted new Section 100.9715 which adds rules on the definition of "transportation company" for purposes of the apportionment formula.
Tax Tribunal
No new decisions were issued this week by the Tribunal.
Two new cases filed with the Tribunal this week may be of interest.
Symphony Transport v. Illinois Department of Revenue - This petition should be required reading for the administration of the Illinois Department of Revenue. It is an IFTA case where the taxpayer and the taxpayer's representative spent at least 3 years attempting to navigate the bureaucratic maze that sometimes is the Department.
Among other things the situation was made worse by a 3 year delay of a petition filed with the Board of Appeals.
From the petition, it appears that the taxpayer self-assessed Use tax on the cost price of theboxes. After paying the tax, it determined that certain of the boxes had been used previously out-of-state. The taxpayer filed a claim for refund seeking a reduction in tax because the tax on the previously used set top boxes should have been based upon the depreciated value of the boxes at the time the boxes were brought to Illinois.
The taxpayer is represented by Illinois Chamber of Commerce member law firm Sidley Austin.
Publications
I recently provided an Illinois update to the Chicago Bar Association State and Local Tax Committee. I've linked a copy of my
PowerPoint.
I've also linked a copy of my most recent column in the Illinois CPA Society magazine
Insight.
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