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July 20, 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.
HB 5931 was proposed this week and would amend the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code and 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.
Rulemaking
The July 20 edition of the
Illinois Register did not contain any rulemakings by the Illinois Department of Revenue or the Department of Commerce and Economic Opportunity.
Court cases
Four states have sued the federal government challenging the $10,000 state and local tax cap.
State of New York, State of Connecticut, State of Maryland and State of New Jersey v. Mnuchin. Here is a link to a recent
Forbes article describing the lawsuit. A copy of the complaint is available from
State Tax Notes or Law 360 (subscription required for access to both).
Recently, the Illinois appellate court for the First Judicial District issued a decision in
Gateway-Walden, LLC v. Pappas. At issue in the case was the appropriate manner of value in property tax objection cases. The case was filed under Supreme Court Rule 23. As a result, it may not be cited as precedent by any party.
On July 13, the plaintiff Gateway-Walden filed a motion to publish the Rule 23 order (give it precedential value). In its motion, Gateway-Walden argues that at issue in the appeal and decided by the Court's order was the appropriate manner of valuation in property tax objection cases, including the use of a discounted cash flow analysis. The motion asserts that this is an issue the Illinois courts have never previously ruled upon and the proper appellate method of review for such valuations.
Tax Tribunal
No new decisions were issued by the Tribunal this week. None of the new case recently filed with the Tax Tribunal raise issues of importance.
Publications
David Ruskin of Tax Institute member law firm Horwood Marcus & Berk was quoted in an article in
Bloomberg Daily Tax regarding new judge assignment rules in the Circuit Court of Cook County in False Claims Act cases. According to an order recently issued by the presiding judge of the law division, henceforth new cases will be assigned to judges randomly. Previously, False Claims Act cases had been assigned to one of two judges. Mr. Ruskin discusses the possible effects of this change.
Illinois Chamber Tax Institute accounting firm member BDO is holding a webinar on the new Illinois Unclaimed Property Law. The webinar has an outstanding line up of presenters featuring Joe Car and Nick Boegel of BDO, Jordan Goodman of Horwood Marcus & Berk, and Alan Mayer of the Illinois Treasurer's office. Here is the
link for registration.
My latest column has been published in the Illinois CPA Society's
Insight discusses the numbers behind the graduated income tax discussions.
The following studies are from groups that are generally not friendly to the business community. I find it instructive to review their studies because I find the studies are used as the basis for legislation at the state level.
The Institute on Tax and Economic Policies issued a report on their view of the impact of federal tax cuts in the
Bush, Obama and Trump years.
Be sure to send me links to your publications and seminars and I'll include them in the newsletter.
Miscellaneous
Former Illinois Department of Revenue Director Brian Hamer has joined the staff of the Multistate Tax Commission as Counsel.
The Illinois Department of Revenue advises that they will be updating their website later this summer. It is indicated that the new website will be mobile-friendly.
Illinois Chamber Cyber Security Conference - July 24 - Chicago
Cybersecurity is an issue that affects everyone. The Illinois Chamber of Commerce, in collaboration with the U.S. Chamber of Commerce, is hosting its third annual Cyber Security Conference to bring together public and private entities to discuss policy and best practice in cybersecurity to help businesses be prepared for the future.
Collaboration and communication between government entities and the private sector is essential to success combating cyber threats. Featured speakers include NIST, Merit Labs, Baker McKenzie, the U.S. Security Service and more. For more information, visit the conference website.
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