This Illinois State Association of Counties (ISACo) weekly
News and Views
newsletter includes a link to an ISACo Policy Brief about the "Cannabis Regulation and Tax Act," reports on the enactment into law of the first capital infrastructure bill in almost a decade, provides an update about a congressional hearing concerning the State and Local Tax (SALT) deduction cap, urges counties to prepare for the 2020 census by forming Complete Count Committees, offers information about how to join a National Association of Counties (NACo) policy steering committee, provides a link to register for NACo's 84th Annual Conference and invites counties to join ISACo.
ISACo's comprehensive
Bills of Interest to Counties Approved by the General Assembly
report is
available via this link
.
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Cannabis Regulation and Tax Act Signed into Law
On Tuesday, June 25, Governor J.B. Pritzker signed the "Cannabis Regulation and Tax Act" into law as Public Act 101-0027 (available via this link). Cannabis usage will become legal in Illinois on January 1, 2020.
ISACo has prepared a Policy Brief (
available via this link
) explaining the major provisions within the new law with an emphasis on issues of importance to counties.
Additional Resources:
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Capital Infrastructure Legislation/Gaming Expansion Signed into Law
Governor J.B. Pritzker signed the capital infrastructure package into law on Friday, June 28, 2019. The $45.6 billion package for horizontal and vertical construction projects is the first Illinois capital infrastructure plan in nine years.
Summaries of the bills are below:
Bonding Authority
House Bill 142 (P.A. 101-0030 -
available via this link
) would create the Rebuild Illinois Capital Financing Program of 2019. This is the bonding piece of the capital plan. It also includes $1.2 billion to partially offset the state's backlog of unpaid bills to vendors.
Vertical Infrastructure/Gaming Expansion
Senate Bill 690 (P.A. 101-0031 -
available via this link
) includes revenue for vertical infrastructure. It includes authorization for six more casinos (Chicago, Waukegan, southern Cook County, Rockford, Danville and near Marion), legalized sports betting, higher taxes on video gaming and an expansion of video gaming, a tax hike on cigarettes and vaping and a new tax on parking garages. The revenue generated will fund projects such as universities, state buildings, prisons, etc.
Additional Sales Tax Revenue for Local Governments
Senate Bill 690 also includes a provision intended to generate additional sales tax revenue for the state and local governments. The provision, put forward by the Illinois Retail Merchants Association (IRMA) with the support and partnership of ISACo, is known as the “Leveling the Playing Field for Illinois Retail Law." Some of the provisions for the "Leveling the Playing Field for Illinois Retail Law" are also found within Senate Bill 689.
This provision allowing for online sales tax collections from out-of-state retailers will generate additional revenues for the state and local governments from the Use Tax beginning on January 1, 2020. Raising additional revenues for the state and local governments by requiring collection of locally-imposed Retail Occupation Taxes (ROT) will begin on July 1, 2020.
IRMA estimates that the "Leveling the Playing Field for Illinois Retail Law" could generate $460 million in additional annual sales tax revenue. The state could raise $368 million annually and local governments could receive $92 million annually.
Locally-imposed sales taxes would generate additional revenue for local government on top of these estimated amounts.
Transportation Infrastructure
Senate Bill 1939 (P.A. 101-0032 -
available via this link
) would provide investments in Illinois' roads, bridges and transit. This includes money for local projects. Among other provisions, the bill increases the Motor Fuel Tax (MFT) to 38 cents per gallon (currently 19 cents). This provision would become effective on July 1, 2019, and would increase the MFT by the Consumer Price Index (CPI-U) beginning each subsequent July 1.
The bill also includes an increase to local MFT taxing authority for DuPage, Kane and McHenry counties and adds Lake and Will counties to those counties permitted to impose a local MFT. These counties would be permitted to impose an MFT tax not to exceed 8 cents per gallon.
Capital Appropriations
Additional Resource:
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Local Officials Testify Against SALT Deduction Cap
Last week ISACo reported on an upcoming hearing of the United States Congress House Ways and Means Subcommittee on Select Revenue Measures concerning how the State and Local Tax (SALT) deduction cap is affecting local governments and other parties.
The hearing occurred on Tuesday, June 25, 2019. The National Association of Counties (NACo) participated in the hearing and testified against the existing deduction cap. A story about the hearing, along with a video, is
available via this link.
A transcript of the testimony delivered on behalf of NACo is
available via this link.
Background on SALT Deduction
The SALT deduction allows taxpayers to deduct state and local taxes paid from their federally taxable income, protecting individuals and families from double taxation and preserving the decision-making authority of states and local governments. The deduction was capped at $10,000 as part of the "Tax Cuts and Jobs Act of 2017."
By capping SALT deductions, Congress shifted the intergovernmental balance of taxation and limited state and local control of tax systems. Eliminating the $10,000 cap on SALT deductions would improve counties’ ability to deliver essential public services, such as emergency response, public health services and infrastructure development.
Additional Resource:
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Counties Urged to Prepare for Accurate Census Count
Illinois counties intending to facilitate an accurate count of their populations during the 2020 census are encouraged to establish a Complete Count Committee.
Complete Count Committees consist of appointed members tasked with organizing the county's decennial census effort. Committees would create a plan and oversee the execution of the plan in order to educate residents on the importance of participating in the census.
Making sure every Illinoisan is counted is critical because congressional representation along with some federal, state and local funding is tied to population.
ISACo obtained an ordinance approved by the Cook County Board of Commissioners to create a Complete Count Committee for Cook County. While this ordinance
(available via this link as a Word document)
was drafted specifically for Cook County, the language can be modified and customized by other counties seeking to establish a Complete Count Committee.
Grant Money Available
The State Fiscal Year (SFY) 2020 budget includes $29 million for grants to assist community organizations and local governments with census counts. The grants will be administered by the Illinois Department of Human Services (IDHS). ISACo will make information about the grant application process available as information emerges.
Additional Resource:
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General Assembly Seat Changes
Democratic State Representative Robert Martwick (pictured) was appointed to fill the vacancy in the 10th State Senate District following the decision by State Senator John Mulroe (D-Chicago) to accept an appointment as a Cook County judge.
Rosemont's Republican Mayor Brad Stephens is expected to be appointed to fill the seat of retired House member Michael McCauliffe (R-Chicago) in the 20th House District.
The seat held by Representative Martwick in the 19th House District will be filled as well.
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Join a NACo Policy Steering Committee
Are you interested in shaping federal policy toward counties by participating on a National Association of Counties (NACo) Policy Steering Committee?
Illinois county officials and staff wishing to serve on a NACo Policy Steering Committee can apply through ISACo. Additional information about Policy Steering Committees, as well as other NACo committees, is
available via this link
.
Please contact ISACo Executive Director Joe McCoy at jmccoy@isacoil.org if you have interest in serving on a NACo Policy Steering Committee.
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Time to Register for NACo's Annual Conference!
NACo's 84th Annual Conference is right around the corner! This year's conference is being hosted in Clark County, Nevada from July 12-15.
The Annual Conference and Exposition is the largest meeting of county elected and appointed officials from across the country. Participants from counties of all sizes come together to shape NACo's federal policy agenda, share proven practices and strengthen knowledge networks to help improve residents’ lives and the efficiency of county government.
You can register to attend the conference
via this link
. ISACo hopes to see you there!
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The Key to ISACo's Success is YOU!
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Is your county a member of ISACo? If not, why not?
ISACo is a statewide association whose mission is to empower county officials to provide excellent service to their residents.
ISACo member counties are comprised of forward-thinking public servants who recognize that the challenges confronting county governments require new and innovative ideas, collaborative solutions and collective advocacy at the state and federal levels of government.
Members of the association will benefit from education and training opportunities, peer-to-peer networking, shared resources and robust representation before policymakers at various levels of government. ISACo creates and connects county officials to these opportunities and successfully equips them to make counties ideal places to live, work and play.
If your county is interested in discussing membership in ISACo, please contact Executive Director Joe McCoy at (217) 679-3368 or jmccoy@isacoil.org. Thank you for your consideration.
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News and Views
is a service provided by ISACo for county officials and staff. Please feel welcome to share with interested parties. You can contact ISACo Executive Director Joe McCoy at jmccoy@isacoil.org or (217) 679-3368 if we can be of service. Thank you for your support of ISACo.
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