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February 7, 2020
State and Local Tax
This Week
Illinois General Assembly
The House and Senate was scheduled to be in session this week Tuesday through Thursday. Both the House and the Senate cancelled the Thursday session.
The House and Senate voted to override the Governor's veto of HB 3902. This legislation amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act and provides that the exemption for materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft applies through December 31, 2024. The legislation provides that no claim for credit or refund is allowed for taxes paid as a result of the disallowance of the exemption on or after January 1, 2015 and prior to the effective date of the amendatory Act.
The House and the Senate are not in session next week and are scheduled to return to Springfield on February 18.
The House Revenue committee met on February 5. A number of items were posted for committee consideration, but no substantive action on legislation was taken by the committee. The Chairman assigned bills to subcommittees. The Chairman then announced that the committee would not vote on legislation until the last week of March. He advised that in the interim, there will be subcommittee action and subject matter hearings on legislation.
The Senate Revenue committee was also scheduled to meet on February 5. The hearing was cancelled.
New legislation
HB 4427 - Carroll & Batnick -
Amends the Illinois Municipal Code. Provides that a municipality reporting Tax Increment Financing information shall additionally report to the Comptroller: (1) the number of jobs, aspirational or otherwise, if any, projected to be created for each redevelopment project area at the time of approval of the redevelopment agreement; (2) the number of jobs, if any, created as a result of the development under the same guidelines and assumptions as was used for the projections used at the time of approval of the redevelopment agreement to date for that reporting period; (3) the amount of increment projected to be created at the time of approval of the redevelopment agreement for each redevelopment project area; (4) the amount of increment created as a result of the development to date for that reporting period using the same assumptions as was used for the projections used at the time of approval of the redevelopment agreement; and (5) the stated rate of return identified by the developer to the municipality for each redevelopment project area, if any. In provisions requiring a municipality to report an analysis prepared by financial advisor or underwriter, provides that the advisor or underwriter shall be chosen by the municipality and that analysis shall additionally include actual debt service.
HB 4440 - Carroll - Amends the Retailers' Occupation Tax Act. Provides that a teacher who is employed by an educational institution that is exempt from the tax under the Act is presumed to be making an exempt purchase if he or she (i) purchases materials and supplies, (ii) possesses a copy of the educational institution's exemption number, and (iii) presents identification at the time of the sale.
HB 4445 - Delgado - Amends the Property Tax Code. Provides that, on and after January 1, 2021, deeds representing real estate transfers of residential property from a parent to a child are exempt from the real estate transfer tax if the child's household income for the taxable year in which the transfer occurs is less than $50,000 and the property has been the child's principal place of residence for at least 10 consecutive years immediately prior to the date of the transfer. Effective immediately.
HB 4449 - Windhorst - Amends the Property Tax Code. Provides that the homestead exemption for veterans with disabilities carries over to the benefit of the veteran's surviving spouse if the veteran resided outside of the State but otherwise qualified for the exemption at the time of his or her death and the surviving spouse relocates to Illinois after the death of the veteran. Effective immediately.
HB 4472 - Burke - Amends the Cook County Forest Preserve Article of the Illinois Pension Code. In a provision concerning the property tax levy for providing revenue for the Fund, provides that the forest preserve district may use other lawfully available funds in lieu of all or part of the levy.
HB 4473 - Skillicorn - Amends the Illinois Income Tax Act. Reduces by 25% the amount transferred from the General Revenue Fund to the Local Government Distributive Fund. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces by 20% the amounts deposited into the Local Government Tax Fund, the County and Mass Transit District Fund, and the State and Local Sales Tax Reform Fund each month. Provides that the reductions under the amendatory Act begin January 1, 2021. Effective immediately.
HB 4480 - Mazzochi - Amends the Property Tax Code. In provisions concerning exemptions related to hospitals and health care services, provides that ambulance transport is considered a service that addresses the health care needs of low-income or underserved individuals. Effective immediately.
HB 4487 - Evans - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that all blood sugar testing materials are subject to the 1% reduced rate of tax (currently, urine testing materials for human use only). Effective immediately.
HB 4492 - West - Amends the Illinois Income Tax Act. Creates a credit against withholding tax payments for employers with 250 or fewer full-time equivalent employees in an amount equal to a percentage of the compensation paid to qualified employees who received a raise from the employer.
HB 4495 - Ugaste - Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that for redevelopment project areas created on and after the effective date of the amendatory Act, "blighted areas" must have a household median income of 100% or less of the area median income, as defined by the U.S. Department of Housing and Urban Development, in addition to the other requirements for "blighted areas". Effective immediately.
HB 4498 - Ugaste - Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that the estimated dates of completion of the redevelopment project and retirement of obligations issued to finance redevelopment project costs is the 15th calendar year (rather than the 23rd calendar year) after the year in which the ordinance approving the redevelopment project area was adopted for ordinances adopted on or after the effective date of the amendatory Act. Effective immediately.
HB 4517 - Mayfield - Amends the Property Tax Code. Provides that the aggregate tax rate extended against taxable real property by any taxing district may not exceed 105% of the aggregate tax rate extended by the taxing district in the previous levy year unless the increase is approved by referendum. Sets forth provisions concerning new taxing districts and taxing districts with an aggregate tax rate of zero in the previous levy year. Preempts home rule powers.
HB 4538 - Grant - Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a taxing district shall reduce its aggregate extension base for the purpose of lowering its limiting rate for future years upon referendum approval initiated by the submission of a petition by the voters of the district. Effective immediately.
HB 4542 - Welch - Amends the Illinois Income Tax Act. Provides that, beginning on July 1, 2020, the Treasurer shall transfer each month from the General Revenue Fund to the Local Government Distributive Fund an amount equal to 10% of the net revenue realized from the income tax imposed upon individuals, trusts, estates, and corporations during the preceding month. Effective immediately.
HB 4544 - Harris - Amends the Illinois Income Tax Act. Provides that the term "unitary business group" does not include members who were not created or organized in the United States or under the laws of the United States or of any State. Effective immediately.
HB 4550 - Robinson - Amends the Property Tax Code. In provisions requiring the court to declare a sale in error in the case of an error by the assessor, chief county assessment officer, board of review, board of appeals, or other county official, provides that the error must be material to the tax sale at issue and may not include an error in the description of the physical characteristics or location of any property displayed on the website of any county assessing official. Provides that, if the legal or beneficial owner of the property requests bankruptcy relief, a sale in error shall be granted only if the property is subject to an automatic stay pursuant to the bankruptcy petition, and the petition is active as of the date on which the petition for sale in error is filed. Effective immediately.
HB 4573 - Zalewski - Amends the Revised Uniform Unclaimed Property Act. Provides that virtual currency is presumed abandoned if it is unclaimed by the apparent owner 5 years after the last indication of interest in the property. Provides that a provision regarding when a tax-deferred retirement account is presumed abandoned also applies to a tax-exempt retirement account. Provides that property held in a pension account or retirement account that qualifies for tax deferral or tax exemption may be presumed abandoned if, among other criteria, it is unclaimed by the apparent owner 3 years after the date the apparent owner becomes 72 (rather than 70.5) years of age. Provides that a business association that has no reportable property shall report to the State Treasurer if the business association has: (1) annual sales of more than $1,000,000; (2) securities that are publicly traded; (3) a net worth of more than $10,000,000; or (4) more than 100 employees. Provides that the State Treasurer does not need to notify the Department of Revenue of the names or social security numbers of apparent owners of abandoned property under certain circumstances. Provides for the identification of apparent owners of abandoned property using databases of the Secretary of State and the State Board of Elections. Provides for the delivery of reportable virtual currency to the State Treasurer. Makes other changes.
HB 4576 - Mazzochi -
Amends the Property Tax Code. Provides that, in the case of property that is occupied as a residence by a person who: (1) is 55 years of age or older during the taxable year; (2) is liable for paying real estate taxes on the property; and (3) is an owner of record of the property or has a legal or equitable interest in the property, property taxes shall be paid on a monthly basis. Effective immediately.
HB 4577 - Walsh - Amends the Property Tax Code. Provides that the notice of application for judgment and sale may be mailed by first-class mail (currently, registered or certified mail). Provides that the envelope containing the notice shall be clearly marked "Notice of Judgment and Sale of Unpaid Property Taxes". Removes a requirement that the county collector must present proof of the mailing to the court along with the application for judgement.
HB 4600 - Mayfield - Amends the Property Tax Code. Provides that there shall be printed on each tax bill, or on a separate slip mailed with a tax bill, each taxing district affected by revenues received by a tax increment financing district. Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Revises the definition of "blighted area": (1) to require that a reasonable person would conclude that each factor of a blighted area is present to a meaningful extent so that a municipality may reasonably find that the factor is clearly present, is reasonably distributed throughout the improved or vacant part of the redevelopment project area, and that public intervention is necessary to address the factor; and (2) to provide that a "blighted area" does not include any area within another redevelopment project area. Provides that a municipality must reevaluate whether a redevelopment project area designated as a blighted area is still a blighted area every 10th calendar year after the year in which the ordinance approving the redevelopment project area was adopted, redesignating the redevelopment project area as a blighted area if it meets the requirements or discontinuing the redevelopment project area if it does not meet the requirements. Limits where municipalities may jointly undertake plans or utilize revenues in contiguous redevelopment projects areas.
HB 4604 - LaPointe - Amends the Illinois Income Tax Act. Provides that the credit for student-assistance contributions sunsets on December 31, 2030 (currently, December 30, 2020). Provides that, for taxable years ending on or after December 31, 2020, the maximum student-assistance credit is $1,000 per contributing employee per taxable year (currently, $500). Effective immediately.
HB 4621 - Halpin - Amends the Property Tax Code. Provides that provisions concerning delinquencies by lessees of property owned by a taxing district apply in counties with fewer than 3,000,000 inhabitants (currently, more than 800,000 but fewer than 1,000,000 inhabitants). Provides that those provisions apply if the taxes remain unpaid in whole or in part 60 days after the final installment due date (currently, the second installment due date). Effective January 1, 2021.
HB 4629 - Harper - Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who (i) are engaged in business as a healthy food retailer and (ii) during the taxable year, first locate a healthy food retail establishment in an area designated by the Department of Agriculture as a food desert. Effective immediately.
HB 4634 - LaPointe - Amends the Property Tax Code. Provides that the notice of judgment and sale shall also be sent by first class mail (currently, registered or certified mail only). Provides that, if any notice is returned as undeliverable and includes an updated mailing address, the county collector shall mail a second notice to the new address. Provides that the collector shall collect $30 (currently, $10) from each tax purchaser prior to the issuance of any certificate of purchase to cover the costs of mailing. Effective January 1, 2021.
HB 4637 - Meyers-Martin - Amends the Property Tax Code. Provides that a notice of judgment and sale shall be sent by first class mail in addition to registered or certified mail. Provides that the fee collected from the tax purchaser to cover the costs of registered or certified mailing and advertising shall be $30 (currently, $10) and shall be paid to the county collector prior to the issuance of any certificate of purchase. Effective immediately.
HB 4652 - Mazzochi - Amends the Property Tax Code. Provides that taxing districts, other than certain school districts, shall annually certify their levy on or before the third (currently, last) Tuesday in December. Effective immediately.
HB 4654 - Mazzochi - Amends the Property Tax Code. Provides that, if a board of review or the Property Tax Appeal Board reduces the assessment of a condominium unit, then the owner of a neighboring unit in the same condominium development may, upon a timely petition, request the same reduction, so long as the neighboring unit has no discernible benefits or amenities that the condominium unit that received the initial reduction does not. Effective immediately
HB 4660 - Sosnowski -
Amends the Property Tax Code. Provides that the effective date of a pollution control facility certificate shall be the date of recommendation by the Illinois Environmental Protection Agency to the Pollution Control Board for the certificate or the date of the construction of the facility, whichever is later (currently, the date of application or the date of the construction of the facility, whichever is later). Effective immediately.
HB 4669 - Burke -
Amends the Retailers' Occupation Tax Act. Provides that the term "prepaid telephone calling arrangements" includes only telephone or telecommunications services obtained through the purchase of a prepaid phone, calling card, or other item of tangible personal property. Effective immediately.
HB 4670 - McCombie -
This bill is an Illinois Chamber of Commerce Tax Institute initiative.
Amends the Illinois Income Tax Act. Increases the research and development credit by providing that the increase in research and development activities shall be based on an increase over 50% of the average of the qualifying expenditures for each year in the base period (instead of 100% of the average of the qualifying expenditures for each year in the base period). Provides that the research and development credit applies on a permanent basis. Effective immediately.
HB 4680 - Sosnowski -
Creates the Local Government Business Anti-Poaching Act. Provides that no municipality or county shall offer any incentive after the effective date of the Act to a business or corporation to move its headquarters located in Illinois, or any part of its business located in Illinois, farther than 10 miles away from the current location at the time of the offering of the incentive. Defines "incentive". Limits home rule powers. Effective immediately.
HB 4702 - Wehrli -
Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a taxing district's aggregate extension base shall be adjusted whenever an assessment decrease due to the issuance of a certificate of error, a court order, or a final administrative decision of the Property Tax Appeal Board results in a refund from the taxing district of a portion of the property tax revenue distributed to the taxing district. Effective immediately.
HB 4711 - Sosnowski -
Amends the Property Tax Code. In provisions concerning the homestead exemption for veterans with disabilities, provides that, if the veteran has a service connected disability of 10% or more but less than 30%, as certified by the United States Department of Veterans Affairs, then the annual exemption is $1,500 (currently, there is no exemption if the veteran has a service connected disability of less than 30%). Effective immediately.
SB 2750 - Martinez - Amends the Property Tax Code. In provisions concerning redemption, provides that the amount of the penalty applied to taxes, special assessments, interest, and costs that have been paid by the tax certificate holder after the date those taxes or special assessments became delinquent shall be 3% (currently, 12%). Effective immediately.
SB 2772 - McConchie - Amends the Property Tax Code. In a Section concerning a reduced extension for a school district's educational purposes, provides that the Section applies if the school district's final percent of adequacy (currently, adequacy target) exceeds 110%. Provides that the referendum petition for the reduction shall be submitted to and certified by the school board's secretary (currently, the applicable election authority). Effective immediately.
SB 2774 - Fowler - Amends the Property Tax Code. Removes provisions providing that taxpayers who are granted a homestead exemption for veterans with disabilities must reapply on an annual basis. Effective January 1, 2021.
HB 2800 - Bertino-Tarrant - Amends the Illinois Income Tax Act. Provides that the credit for student-assistance contributions sunsets on December 31, 2030 (currently, December 30, 2020). Provides that, for taxable years ending on or after December 31, 2020, the maximum student-assistance credit is $1,000 per contributing employee per taxable year (currently, $500). Effective immediately.
SB 2906 - McConchie & Fowler - This bill is an Illinois Chamber of Commerce Tax Institute initiative. Amends the Uniform Penalty and Interest Act. Provides that the penalty for failure to pay the tax shown due or required to be shown due on a return shall be 15% (instead of 20%) of any amount that is paid after the date the Department of Revenue has initiated an audit or investigation of the taxpayer. Provides that the penalty shall be abated if the taxpayer paid to the Department at least 95% of the total tax liability (including any additional liability resulting from the audit or investigation) prior to the initiation of the audit or investigation. Effective January 1, 2021.
SB 2910 - Martwick -
Amends the Property Tax Code. Creates a homestead exemption in the amount of a reduction of $5,000 from the equalized assessed value of property of police officers and firefighters with duty-related disabilities. Effective immediately.
SB 2925 - Schimpf - Amends the Illinois Income Tax Act. Provides that an apprentice who is hired by the taxpayer through the United States Department of Defense SkillBridge internship program is considered a qualifying apprentice for the purpose of the apprenticeship education expense credit. Provides that, in the case of an employee participating in the SkillBridge program, the credit shall be equal to $3,500 per qualifying apprentice. Effective immediately.
SB 2938 - Gillespie - Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Adds two factors to the determination of a "blighted area" for improved, industrial, commercial, and residential buildings or improvements: (i) if the redevelopment project area has had an annual average unemployment rate of at least 120% of the State's annual average unemployment rate; and (ii) if the redevelopment project area has a poverty rate of at least 20%, 50% or more of children in the redevelopment project area participate in the federal free lunch program, or 20% or more households in the redevelopment project area receive food stamps. Removes or modifies various factors from the definitions of "blighted area" and "conservation area" for improved and vacant areas. Provides that a new redevelopment project shall have a completion date no later than December 31st of the 10th year after the ordinance was adopted (rather than the 23rd year) and may be extended to 15 years (rather than 35 years). Provides that the joint review board and municipality shall approve surplus funds and extensions of redevelopment project area completion dates. Provides that surplus funds shall be distributed annually within 90 days (rather than 180 days) after the close of a municipality's fiscal year. Provides that a new or modified redevelopment project area that overlaps with any existing redevelopment project area shall not be approved. Effective July 1, 2020.
SB 2945 - Fowler - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Exempts sales of feed, including hay, for livestock, horses, and poultry from taxation under the Acts. Effective immediately.
SB 2962 - Stewart - Amends the Community Mental Health Act. Provides that upon receipt of all the annual moneys collected from the tax levied under the Act, each governmental unit that levies that tax shall immediately deposit 20% of those moneys into a special fund directly controlled by the county sheriff to be used for mental health services within the county jail.
SB 2990 - Stewart - Amends the Illinois Income Tax Act. Creates the Lincoln-Douglas Historic Tax Credit. Provides that a taxpayer is entitled to a credit of up to 25% of the qualified expenditures incurred by the taxpayer for a qualified rehabilitation of a historic structure located in a Lincoln-Douglas debate community. Effective immediately.
SB 3009 - Aquino - Amends the Illinois Income Tax Act. Provides that each qualified teacher is entitled to an income tax credit in an aggregate amount equal to 50% of the tuition costs incurred by that teacher at a public university in the State. Provides that each qualified teacher may take no more than 20% of his or her aggregate credit amount in any taxable year. Provides that the term "qualified teacher" means an individual who (i) graduated from a public university in the State, (ii) is employed as a teacher in this State during the taxable year, and (iii) has been employed as a teacher in the State for at least 5 consecutive years as of the first day of the taxable year. Effective immediately.
SB 3013 - Gillespie - Amends the Property Tax Code. Provides for property tax incentives for newly constructed or rehabilitated rental property if the owner of the residential real property commits that, for a period of 20 years, at least 20% of the multifamily building's units will have rents that are at or below maximum rents and are occupied by households with household incomes at or below maximum income limits. Provides that the chief county assessment officer of a county with 3,000,000 or more inhabitants shall establish such a program, and the chief county assessment officer of a county with less than 3,000,000 inhabitants shall establish such a program upon passage of an ordinance by a majority vote of the county board. Sets forth application requirements and the amount of the reduction. Amends the Affordable Housing Planning and Appeal Act. Provides that to enforce compliance with the Act's affordable housing plan requirements and to encourage local governments to submit their affordable housing plans to the Illinois Housing Development Authority (Authority) in a timely manner, the Authority shall notify any local government and may notify the Office of the Attorney General that the local government is in violation of State law if the Authority finds that the affordable housing plan submitted is not in substantial compliance with the Act or that the local government failed to submit an affordable housing plan. Grants the Attorney General enforcement authority under the Act, including notifying the State Comptroller and the State Treasurer of the noncompliance of any local government. Contains provisions concerning appeals to the State Housing Appeals Board. Limits home rule powers. Effective immediately.
SB 3014 - Gillespie - Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that the Act does not apply to the overcollection of any tax by a person, to the extent such overcollected tax is remitted to a government entity or agency. Provides that a tax is remitted to a governmental entity or agency when it is paid or transferred to the government entity or agency, or taken as a credit, allowance, or offset on a tax return or other tax form (including any amount of commission or discount taken by or allowed to a tax collector or taxpayer).
SB 3017 - Martwick - Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that if a county clerk determines that any lot, block, tract, or parcel of real property within a redevelopment project area is not taxable or has an initial equalized assessed value of $0, then the fair market value of the lot, block, tract, or parcel shall be instead determined by a written MAI-certified appraisal or by a written certified appraisal of a State-certified or State-licensed real estate appraiser. Provides that this reappraisal shall be the initial equalized assessed value of the lot, block, tract, or parcel and shall be added to the total initial equalized assessed value of the taxable real property within the redevelopment project area. Limits the provisions to tax increment allocation financing ordinances adopted after the effective date of the amendatory Act.
SB 3018 - Martwick - Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that if (1) three or more improved lots, blocks, tracts, or parcels of real property within a single redevelopment project area are purchased by a developer or a developer's parent company or wholly-owned subsidiary, or any combination thereof, within the 3 years prior to the date that the ordinance providing for the tax increment allocation was adopted by the municipality, and (2) an improvement on any of the lots, blocks, tracts, or parcels of real property is demolished or otherwise rendered uninhabitable, then the initial equalized assessed value for the lot, block, tract or parcel of real property shall be the equalized assessed value of the lot, block, tract, or parcel of real property on the date it was purchased by the developer, the developer's parent company, or the developer's wholly-owned subsidiary or purchased by any combination thereof. Limits the provisions to ordinances adopted after the effective date of the amendatory Act.
SB 3022 - Hunter -
Amends the Property Tax Code. Provides that the owner of a certificate of purchase must file with the county clerk the names and addresses of the owners of the property and those persons entitled to service of notice at their last known addresses. Provides that the clerk shall mail notice within 30 days from the date of the filing of addresses with the clerk.
SB 3044 - Rose - Amends the Property Tax Code. Provides that, if a veteran with a surviving spouse was in the process of review to receive the homestead exemption for veterans with disabilities, but the veteran died before the exemption was approved, then the application process shall continue and any subsequent approval granted to the veteran shall carry over to the spouse as long as the spouse meets the requirements for carry over. Effective immediately.
SB 3045 - Rose - Amends the Pyrotechnic Use Act. Provides that the provision prohibiting the sale and use of fireworks does not apply to D.O.T. Class C common fireworks. Provides that D.O.T. Class C common fireworks may only be purchased by individuals over the age of 18. Provides that fireworks may only be discharged by individuals over the age of 18. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2021, each month the Department of Revenue shall pay into the Fire Prevention Fund 50% of the net revenue realized for the preceding month from the tax imposed on the selling price of D.O.T. Class C common fireworks. Effective immediately, except that provisions amending the Pyrotechnic Use Act take effect on January 1, 2021.
SB 3100 - Martwick - Amends the Property Tax Code. Creates a homestead exemption of $1,000 for homestead property on which a stormwater retention basin has been constructed during the taxable year. Effective immediately.
SB 3123
- McConchie -
This bill is an initiative of the Illinois Chamber of Commerce Tax Institute.
Amends the Tobacco Products Tax Act of 1995. Provides that, beginning on January 1, 2021, the tax per cigar or other rolled tobacco product shall not exceed $0.50 per cigar or roll. Provides that distributors are allowed a discount in the amount of 2% of the distributor's tax liability, but not to exceed $2,000 per return.
SB 3143 - Feigenholtz - Amends the Property Tax Code. Provides that, in counties with less than 3,000,000 inhabitants, the assessment list may be posted on the chief county assessment officer's website.
SB 3153 - Crowe - Amends the Revised Uniform Unclaimed Property Act. This bill appears identical to HB 4573 described above.
New amendments
SB 2272 - Amends the Parking Excise Tax Act. The amendment m
akes changes to the introduced bill to provide that the tax imposed by the Act does not apply to a parking area or garage owned or operated by a unit of local government (in the introduced bill, a city, village, county, township, or incorporated town).
SB 2481 - The original bill amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, beginning 30 days after the effective date of the amendatory Act, the term "selling price" no longer includes the value of traded-in motor vehicles.
The amendment makes changes to the introduced bill and removes provisions from the introduced bill providing that the tax rate under the Illinois Vehicle Code for motorcycles, motor driven cycles, and mopeds shall be the same as for all other motor vehicles. The amendment also provides that the changes in the introduced bill apply 120 days (in the introduced bill, 30 days) after the effective date.
Rulemaking
The February 7 edition of the
Illinois Register did not contain any new or adopted rulemakings by the Department of Commerce and Economic Opportunity or the Illinois Department of Revenue..
Court cases
The circuit court of Champaign County issued a 145 page decision in The Carle Foundation v. Illinois Department of Revenue.The court found that Carle Foundation is entitled to property tax exemptions for the parcels in question for tax years 2005-2011. The case is too large for me to download for a link to the newsletter. Please let me know if you would like a copy of the decision and I can email it to you.
The U.S. Court of Appeals recently issued a decision in A.F. Moore & Associates, Inc., et al. v. Maria Pappas, Cook County Treasurer. A group of taxpayers filed suit in federal court asserting that the Cook County Assessor violated the Equal Protection Clause by assessing their properties at the rates mandated by local ordinance while cutting a break to other owners of similarly situated property. At issue was whether the Tax Injunction Ac bars the taxpayers' suit in federal court. The district court held that the Tax Injunction Act barred their federal suit. The court of appeals concluded that "this is the rare case in which taxpayers lack an adequate state-court remedy. The Tax Injunction Act therefore does not bar the taxpayers' federal suit, so we reverse the district court's dismissal."
The taxpayers in this case are represented by Mark Davis of Illinois Chamber Tax Institute law firm O'Keefe Lyons & Hynes, LLC.
Tax Tribunal
No new decisions were issued this week.
None of the new cases filed with the Tribunal raise unique tax issues.
Save the Date
The next Tax Institute meeting has been scheduled for March 16 at the Illinois Chamber offices, 300 S. Wacker Drive, 8th Floor, Chicago, Illinois.
Our featured guest speaker is Roger Koss the newly appointed Audit Bureau Manager. Roger is a 30+ year veteran of the Illinois Department of Revenue Audit Bureau. Roger will discuss his vision for the Audit Bureau under his direction and has promised to answer our questions.
Publications
The Illinois General Assembly's Commission on Government Forecasting and Accountability has issued the Monthly Briefing for the Month Ended: January 2020
I had an article on the Cook County Parking Tax published in the February 3 edition of State Tax Notes. The article can be accessed by subscribers. According to my publication agreement with State Tax Notes, I am unable to provide a copy of the article in this newsletter.
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