Full Text of SB2873 95th General Assembly
SB2873 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB2873
Introduced 2/15/2008, by Sen. Michael Noland SYNOPSIS AS INTRODUCED: |
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35 ILCS 5/601 |
from Ch. 120, par. 6-601 |
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Amends the Illinois Income Tax Act. Makes changes to the calculation of the credit for income tax that is paid by a resident to another state on income that is also subject to the Illinois Income tax. Effective immediately.
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A BILL FOR
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SB2873 |
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LRB095 18330 BDD 44414 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Income Tax Act is amended by | 5 |
| changing Section 601 as follows:
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| (35 ILCS 5/601) (from Ch. 120, par. 6-601)
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| Sec. 601. Payment on Due Date of Return.
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| (a) In general. Every taxpayer required to file a return | 9 |
| under
this Act shall, without assessment, notice or demand, pay | 10 |
| any tax due
thereon to the Department, at the place fixed for | 11 |
| filing, on or before
the date fixed for filing such return | 12 |
| (determined without regard to any
extension of time for filing | 13 |
| the return) pursuant to regulations
prescribed by the | 14 |
| Department.
If, however, the due date for payment of a | 15 |
| taxpayer's federal income tax
liability for a tax year (as | 16 |
| provided in the Internal Revenue Code or by
Treasury | 17 |
| regulation, or as extended by the Internal Revenue Service) is | 18 |
| later
than the date fixed for filing the taxpayer's Illinois | 19 |
| income tax return for
that tax year, the Department may, by | 20 |
| rule, prescribe a due date for payment
that is not later than | 21 |
| the due date for payment of the taxpayer's federal
income tax | 22 |
| liability. For purposes of the Illinois Administrative | 23 |
| Procedure
Act, the adoption of rules to prescribe a later due |
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SB2873 |
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LRB095 18330 BDD 44414 b |
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| date for payment shall be
deemed an emergency and necessary for | 2 |
| the public interest, safety, and
welfare.
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| (b) Amount payable. In making payment as provided in this
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| section there shall remain payable only the balance of such tax
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| remaining due after giving effect to the following:
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| (1) Withheld tax. Any amount withheld during any | 7 |
| calendar year
pursuant to Article 7 from compensation paid | 8 |
| to a taxpayer shall be
deemed to have been paid on account | 9 |
| of any tax imposed by subsections 201(a)
and (b) of this | 10 |
| Act on
such taxpayer for his taxable year beginning in such | 11 |
| calendar year. If
more than one taxable year begins in a | 12 |
| calendar year, such amount shall
be deemed to have been | 13 |
| paid on account of such tax for the last taxable
year so | 14 |
| beginning.
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| (2) Estimated and tentative tax payments. Any amount of | 16 |
| estimated tax
paid by a taxpayer pursuant to Article 8 for | 17 |
| a taxable year shall be deemed to
have been paid on account | 18 |
| of the tax imposed by this Act for such
taxable year.
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| (3) Foreign tax. The aggregate amount of tax which is | 20 |
| imposed
upon or measured by income and which is paid by a | 21 |
| resident for a taxable
year to another state or states on | 22 |
| income which is also subject to the tax
imposed by | 23 |
| subsections 201(a) and (b) of this Act shall be credited | 24 |
| against
the tax imposed by subsections 201(a) and (b) | 25 |
| otherwise due under
this Act for such taxable year. For | 26 |
| taxable years ending prior to December 31, 2008, the The |
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| aggregate credit provided under this
paragraph shall not | 2 |
| exceed that amount which bears the same ratio to the tax
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| imposed by subsections 201(a) and (b) otherwise due under | 4 |
| this Act as the
amount of the taxpayer's base income | 5 |
| subject to tax both by such other state or
states and by | 6 |
| this State bears to his total base income subject to tax by | 7 |
| this
State for the taxable year. For taxable years ending | 8 |
| on or after December 31, 2008, the credit provided under | 9 |
| this paragraph for tax paid to another state shall not | 10 |
| exceed that amount that bears the same ratio to the tax | 11 |
| imposed by subsections 201(a) and (b) otherwise due under | 12 |
| this Act as the amount of the taxpayer's base income that | 13 |
| would be allocated or apportioned to that state if that | 14 |
| state has adopted the provisions in Article 3 of this Act | 15 |
| bears to his total base income subject to tax by this State | 16 |
| for the taxable year. The credit provided by this paragraph | 17 |
| shall
not be allowed if any creditable tax was deducted in | 18 |
| determining base income
for the taxable year. Any person | 19 |
| claiming such credit shall attach a
statement in support | 20 |
| thereof and shall notify the Director of any refund
or | 21 |
| reductions in the amount of tax claimed as a credit | 22 |
| hereunder all in
such manner and at such time as the | 23 |
| Department shall by regulations prescribe.
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| (4) Accumulation and capital gain distributions. If | 25 |
| the net
income of a taxpayer includes amounts included in | 26 |
| his base income by
reason of Section 668 or 669 of the |
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| Internal Revenue Code (relating to
accumulation and | 2 |
| capital gain distributions by a trust, respectively),
the | 3 |
| tax imposed on such taxpayer by this Act shall be credited | 4 |
| with his
pro rata portion of the taxes imposed by this Act | 5 |
| on such trust for
preceding taxable years which would not | 6 |
| have been payable for such
preceding years if the trust had | 7 |
| in fact made distributions to its
beneficiaries at the | 8 |
| times and in the amounts specified in Sections 666
and 669 | 9 |
| of the Internal Revenue Code. The credit provided by this
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| paragraph shall not reduce the tax otherwise due from the | 11 |
| taxpayer to an
amount less than that which would be due if | 12 |
| the amounts included by
reason of Sections 668 and 669 of | 13 |
| the Internal Revenue Code were
excluded from his base | 14 |
| income.
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| (c) Cross reference. For application against tax due of
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| overpayments of tax for a prior year, see Section 909.
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| (Source: P.A. 94-247, eff. 1-1-06.)
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| Section 99. Effective date. This Act takes effect upon | 19 |
| becoming law.
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