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October 4, 2019
State and Local Tax
This Week
Illinois General Assembly
The House and Senate have adjourned until the fall veto session. The first week of the veto session is scheduled to begin on October 28. The second, and final, week of the veto session is scheduled to begin on November 12.
New legislation
HB 3902 - (Bristow) - Amends the Use Tax, the Retailers' Occupation Tax, the Service Occupation Tax and the Service Use Tax to retroactively reinstate the exemption for materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of an aircraft. This exemption, which was effective in 2010 was automatically sunsetted after 5 years. This legislation, if enacted would reinstate the exemption retroactively back to the date of the original sunset and exempt the exemption from the automatic sunset provisions - thus making the exemption permanent.
HB 3903 - (Edly-Allen) -
Creates the Electronic Cigarette Ban Act. Prohibits the sale or distribution by an establishment of any electronic cigarette except by pharmacies or drugstores to individuals with valid prescriptions. Defines "pharmacy" or "drugstore" and "prescription". Provides that the Department of Public Health shall enforce the Act and may adopt rules or guidelines for its implementation and enforcement. Amends the Tobacco Products Tax Act of 1995. Permits the Department of Revenue to suspend the license of any distributor that violates the Electronic Cigarette Ban Act.
Property Tax Reform Task Force
The Property Tax Relief Task Force subcommittees continued to hold hearings this week. Here is a
link to the Task Force webpage.
The subcommittee on school funding met on Tuesday. The subcommittee agenda and handouts for the meeting are posted online.
The subcommittee on Assessments and Exemption is scheduled to meet again this afternoon. The agenda has been posted.
The subcommittee on PTELL (Property Tax Extension Limitation Law) is scheduled to meet this morning. The agenda has been posted.
The subcommittee on school funding is scheduled to meet this morning. A copy of the agenda has been posted online. The agenda contains a link to attend the hearing online.
The subcommittee on consolidation was scheduled to meet on Thursday, but the hearing was cancelled.
Rulemaking
The October 4 edition of the Illinois Register did not contain any proposed or adopted rulemaking by the Illinois Department of Revenue.
The Illinois Register did not contain any proposed or adopted rulemakings by the Illinois Department of Commerce and Economic Opportunity.
Court cases
Labell v. City of Chicago - The City of Chicago's expansion of the amusement tax to streaming services was upheld by the appellate court.
The city of Chicago (City), imposes a nine percent amusement tax on charges paid for the privilege to enter, witness, view, or participate in certain activities within Chicago. In 2015, the City's comptroller issued Ruling 5, which provided guidance on the collection of the amusement tax as it pertained to amusements that are delivered electronically.
Ruling 5 stated that beginning July 1, 2015, charges paid for the privilege of watching electronically delivered television shows, movies, or videos would be subject to the amusement tax if the shows, movies, or videos are delivered to a patron in the City.
Ruling 5 also clarified that the amusement tax would cover the privilege of listening to electronically delivered music and participating in games, online or otherwise, when delivered to a customer in the City.
Plaintiffs contended the City's application of the amusement tax on streaming services exceeds the City's constitutional and statutory authority. The circuit court upheld the City's application of the tax and the appellate court upheld the circuit court.
Tax Tribunal
No new decisions were posted this week.
The one new case filed at the Tribunal this week does not raise any novel issues.
Publications
The Illinois General Assembly's bi-partisan Commission on Government Forecasting and Accountability has issued its Monthly Briefing for the Month Ended:
September 2019.
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