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March 23, 2018
State and Local Tax this week
Illinois General Assembly
The House and Senate were not in session this week.
The House returns to Springfield on 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.
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.
The House Revenue committee is scheduled to hold a hearing on April 11. The various subcommittees of the House Revenue committee are also scheduled to meet on April 11. The Revenue committee has a full agenda. I've added a link to the items posted for hearing.
The Senate Revenue committee has not yet set a time for its next hearing.
Rulemaking
The March 23 edition of the
Illinois Register
contains a new rulemaking by the Illinois Department of Revenue. The Department's rulemaking amends various sections of the Retailers' Occupation Tax rules, Part 130. The rulemaking appears to be a "clean up" rulemaking designed to eliminate provisions that explain repealed or modified provisions of the Retailers' Occupation Tax Act. A quick review of the lengthy rulemaking did not disclose any "substantive" changes to the rules.
The Illinois Register does not contain any rulemaking by the Illinois Department of Commerce an
d Economic Opportunity.
IL Chamber files amicus brief with IL Supreme Court
As you are likely aware, I staff the Illinois Chamber of Commerce amicus committee in addition to heading up the Tax Institute.
The goal of the Chamber's amicus program is to provide a consistent, strong voice for the business community in cases before the Supreme and appellate courts via amicus briefs on key business issues. The program's primary focus is on tort related cases, but we take up other types of cases when appropriate.
This week, we filed a motion to be allowed to file an amicus brief, along with the brief, with the Illinois Supreme Court on behalf of My Pillow, Inc. in
Schad, Diamond & Shedden, P.C. v. My Pillow, Inc.
The matter before the Supreme Court is whether a relator-lawyer who represents himself, or is represented by members of his law firm, as the relator prosecuting a lawsuit under the Illinois False Claims Act should be allowed to receive attorney's fees under the Act. The appellate court determined that allowing such a relator-lawyer to be awarded legal fees is against public policy.
If the Supreme Court upholds the decision of the appellate court, Illinois False Claims Act cases will become less lucrative for the relator who has filed the overwhelming majority of the tax-related Illinois False Claims Act cases.
Tax Institute member law firm McDermott Will & Emery represents My Pillow. I have a copy of the brief filed by Cate Battin on behalf of My Pillow, but it was too large to upload to link it here. I will be happy to share a copy with anyone interested.
The Illinois Chamber of Commerce is represented in the amicus brief by David Ruskin and David Hughes of Tax Institute member law firm Horwood Marcus and Berk. I have linked copy of our
amicus brief.
We are very appreciative of the fine work done David Ruskin and David Hughes on the amicus brief.
Tax Tribunal
No new decisions were issued by the Tribunal this week. A number of new cases were filed with the Tribunal this week.
P.A. 100-0009 amended the Motor Fuel Tax Law to expand the tax to include compressed natural gas. Prior to the adoption of the public act in July 2017 the Department asserted via regulation that compressed natural gas was subject to the motor fuel tax.
Ozinga contends that the Department of Revenue lacked authority to adopt a rule purporting to tax compressed natural gas under the Motor Fuel Tax Law. Pursuant to Section 55 of the Illinois Administrative Procedure Act, Ozinga also seeks reasonable expenses and attorney's fees from the Department of Revenue because the Department's rule directly conflicts with Section 2 of the Motor Fuel Tax Law.
Ozinga is represented by David Huges and David Machemer of Illinois Chamber of Commerce Tax Institute member law firm Horwood Marcus & Berk Chartered.
Another case of interest is a challenge to another questionable Illinois residency assertion by the Illinois Department of Revenue. Michael Rothman and Jennifer Rothman v. Illinois Department of Revenue is a protest of notices of deficiency issued by the Department asserting that the Rothmans owe Illinois income tax on 100% of their income from all sources. According to the petition filed with the Tribunal, for the tax years at issue, the Rothmans paid tax on 60% of their total income. The Rothmans assert that they are Florida residents.
The Rothmans are represented by Mike Wynne of Tax Institute member law firm Jones Day.
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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