This afternoon, the Senate passed SJRCA 0001 which amends the Illinois constitution to authorize a graduated income tax.  

The Senate also passed SB 687, SB 689, and SB 690. The proposed constitutional amendment and the legislation now move to the House.

SB 687 (Hutchinson) amends the Illinois Income Tax Act to establish a graduated income tax rate structure, effective for tax years beginning January 1, 2021.  I discussed this legislation and the reasons for the opposition of the Illinois Chamber in yesterday's Special Report.

The bill was amended today to remove the requirement contained in amendment 1 that would have  required taxpayers filing joint returns federally, to file joint returns for Illinois income tax purposes.

SB 689 , sponsored by Senate President Cullerton, amends the Illinois Estate and Generation-Skipping Transfer Tax Act to repeal the Illinois estate tax and the Generation Skipping Transfer Tax effective January 1, 2021.  The bill passed the Senate on a largely partisan vote.  

We did not take a position on this legislation because it was a portion of a package of bills tied to the graduated income tax legislation.

SB 690 sponsored by Senator Manar, as amended is a property tax freeze bill that would extend the Property Tax Extension Limitation law beginning with levy year 2022 to certain school districts and limit the increase in property taxes to amounts approved by voters by referendum. The bill passed the Senate on a partisan vote.

We did not take a position on this legislation because it was a portion of a package of bills tied to the graduated income tax legislation.