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March 16, 2018
State and Local Tax this week
Illinois General Assembly
The Senate returned to Springfield on Tuesday and was in session through Wednesday
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The Senate was originally scheduled to be in session through Thursday, but cancelled the Thursday session day. No tax-related legislation was considered by the Senate this week.
SB 2604, the Tax Institute amendment to the Uniform Penalty and Interest Act, was moved to third notice in the Senate on March 13. This bill can be called for a vote by the full Senate when the Senate returns to Springfield.
The House was not in session this week.
The House does not return to Springfield until April 9. The Senate returns to Springfield on April 10. Both chambers are taking time off for the primary election on March 20 and Easter.
The Senate Revenue committee was scheduled to hold a hearing on March 14. However, the committee hearing was cancelled.
The Tax Institute legislative package continues to move forward. I have linked a summary of the legislative package, along with the current status of each bill.
Time frames will be tight when the General Assembly returns to Springfield on April 9 and April 10. The deadline for bills to be reported out of committee in the chamber of origin is April 13. We will be contacting and meeting with members of the General Assembly during the break over the next three weeks to work to have our proposals considered in committee when the General Assembly returns.
Rulemaking
The March 16 edition of the
Illinois Register
contains a number of new rulemakings by the Illinois Department of Revenue and an adopted rulemaking. The Illinois Register also contains an adopted rulemaking of the Illinois Department of Commerce and Economic Opportunity.
The proposed rules by the Department of Revenue amendment the various locally-imposed retailers' occupation taxes administered and collected by the Department. According to the Department's rulemaking descriptions:
"This rulemaking implements a legislative change to the manner in which conditional sales are sourced as reflected in PA 99-126. Previously, the rule stated that retailers making conditional sales are engaged in the business of selling at the location of the property at the time the parties enter into the conditional sales agreement. P.A. 99-126 states that retailers who sell tangible personal property to a nominal lessee or bailee pursuant to a lease with a dollar or other nominal option to purchase are engaged in the business of selling at the location where the property is first delivered to the lessee or bailee for its intended use. This rulemaking also makes other technical changes to the rule."
In addition to quoting the statutory language of P.A. 99-126, the Department adds the following language to the rule:
"The retailer must maintain books and records that document the physical location to which the property is first delivered to the lessee or bailee for its intended use. An executed contract between the retailer and lessee that clearly specifies the location of the property creates a rebuttable presumption that the location is where the property is first delivered to the lessee for its intended use. The Department may rebut this presumption with clear and convincing evidence that the location is not the location where the property is first delivered to the lessee for its intended use. Absent such a contract, the lessee must provide the retailer with a certification at the time of sale that declares the location where the product is first delivered for its intended use. The retailer must maintain this certification in its books and records and may presume this certification is valid. "
The Illinois Department also adopted a rulemakiing amending the Illinois Income Tax rules to Implement P.A. 100-465 which created the Invest in Kids income tax credit.
The Department of Commerce and Economic Opportunity adopted amendments to the Small Business Development Program. According to the Department, "The rules changes will make them consistent with recent amendments to the Small Business Development Act pursuant to the passage of HB 2698, namely revised funding thresholds for the Department's participation interest in loans to qualified Illinois businesses. These rules changes also update provisions in the Small Business Development Act related to businesses owned by women, minorities, veterans, and persons with disabilities and recognize standing policies and procedures with respect to the program."
Tax Tribunal
No new decisions were issued by the Tribunal this week. A handful of new cases were filed with the Tribunal this week. The new cases do not raise any novel issues.
2018 Women's Conference
On March 27, 2018 join the Illinois Chamber of Commerce at this conference. Join the Illinois Chamber of Commerce as we harness the experiences, leadership, and aspirations of women in business, politics, and the nonprofit world to explore what it takes to put more cracks in the glass ceiling. Hear from inspiring women and take away that energy to blaze your own path.
Chamber Day
Primary and gubernatorial politics are shaping the policy debate in Springfield and will have lasting implications for the business community. On April 11th, join us in our first ever Chamber Day - an advocacy effort to let lawmakers know we must be heard in any major policy decision affecting Illinois businesses. This new event will combine our local chamber summit and the Chamber's traditional lobby day to better show our strength in numbers.
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