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April 6, 2018
State and Local Tax this week
Illinois General Assembly
It was another quiet week in Springfield.
The House and Senate were not in session.
The House returns to Springfield on April 9. The Senate returns to Springfield on April 10.
Next week is a "deadline" week according to the House and Senate calendars. Unless the deadline for a particular bill is extended, all bills must be out of committee in the chamber of origin by Friday April 13.
As noted last week, the House Revenue committee and its various subcommittees are scheduled to hold a hearing on April 11. Here is a link to the list of bills currently posted for committee consideration. We don't yet know which of the many bills posted for the committee hearing will actually be called and considered.
The Senate Revenue committee is also scheduled to meet on April 11. Here is a link to the bills posted for committee consideration. At this point, it is unclear as to which bills will actually be considered by the committee. So far this year, the committee has considered a limited number of bills and generally only legislation that is "agreed" legislation.
The Senate Judiciary committee scheduled a hearing for April 10. On the agenda for the Senate Judiciary committee hearing is
SB 2901, the Chamber Tax Institute proposal to roll back certain anti-business provisions included in the Revised Uniform Unclaimed Property Act enacted as a portion of SB 9. We don't know as of yet whether the bill will be considered by the committee next Tuesday. If it is called for a vote I will, of course, testify in support of the bill.
Please note that above I posted the link the portion of the General Assembly website that allows members of the public to file electronic witness slips in support or opposition to proposed legislation. It is not necessary to appear in person at a hearing in order to file a witness slip. You can file a witness slip and express your support or opposition to a bill without testifying by either filing a "record of appearance only" or filing written testimony.
SB 2901 r
estores the business-to-business exemption from prior law. The legislation m
oves the general abandonment period back to 5 years from 3 years. The bill m
odifies the statute of limitations to make it consistent with the model RUUPA, instead of the unlimited statute of limitations for businesses that file reports in the new law - 5 years if a report is filed and 10 years if no report is filed.
SB 2901 e
liminates the authority of the Treasurer to hire third party contingent fee auditors. It does not, as erroneously alleged by the Treasurer eliminate the ability of the Treasurer to hire auditors, it only precludes the Treasurer from compensating auditors on a contingent fee basis.
The Chamber Tax Institute proposal modifies the ability of the Treasurer to base liability of holders on "estimates."
Finally, and importantly, SB 2901 will also e
liminate the retroactive application of the new Act.
One of the more outrageous provisions of the revised act is that it applies the enhanced scope of the Act retroactively. For example, the Act eliminates the business-to-business exemption. Because of the retroactive nature of the Act, businesses will be required this May to report business-to-business transactions retroactively for at least a 5 year period prior to the adoption of the Act.
The April 6 edition of the
Illinois Register
contains a number of new rulemakings by the Illinois Department of Revenue and one rulemaking by the Department of Commerce and Economic Opportunity.
The Department of Revenue is amending rules for the Service Occupation Tax (Part 140), the Use Tax (Part 150), the Vehicle Use Tax (Part 151), and the Service Use Tax (Part 160), to delete obsolete provisions. A quick review of the rulemakings did not disclose any substantive changes.
The Department of Commerce and Economic Opportunity is amending the rules for the Angel Investment Credit Program (14 Ill. Adm. Code 531) to implement P.A. 100-328 and "to clarify application and compliance provisions."
Please let me know if you have any comments or concerns about these rulemakings.
Publications
Chicago Tax Club Presentation
On Monday April 2, I spoke at the Chicago Tax Club spring conference in Oak Brook. I've linked a copy of my PowerPoint. In the PowerPoint, I discuss the state budget, the impact of federal tax reform on the budget and various legislative proposals, both good and bad.
I'm always happy to provide a similar "Report from Springfield" to your organization. Just let me know if you are interested
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Tax Tribunal
No new decisions were issued by the Tribunal this week. A number of new cases were filed with the Tribunal this week but none of the new cases raise novel issues.
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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