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90_HB3811eng
35 ILCS 200/12-55
Amends the Property Tax Code. Makes a technical change
in the Section concerning notice requirements for assessment
increases in counties with 3,000,000 or more inhabitants.
LRB9010584KDgc
HB3811 Engrossed LRB9010584KDgc
1 AN ACT concerning taxation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 3. The Illinois Income Tax Act is amended by
5 changing Section 203 as follows:
6 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
7 Sec. 203. Base income defined.
8 (a) Individuals.
9 (1) In general. In the case of an individual, base
10 income means an amount equal to the taxpayer's adjusted
11 gross income for the taxable year as modified by
12 paragraph (2).
13 (2) Modifications. The adjusted gross income
14 referred to in paragraph (1) shall be modified by adding
15 thereto the sum of the following amounts:
16 (A) An amount equal to all amounts paid or
17 accrued to the taxpayer as interest or dividends
18 during the taxable year to the extent excluded from
19 gross income in the computation of adjusted gross
20 income, except stock dividends of qualified public
21 utilities described in Section 305(e) of the
22 Internal Revenue Code;
23 (B) An amount equal to the amount of tax
24 imposed by this Act to the extent deducted from
25 gross income in the computation of adjusted gross
26 income for the taxable year;
27 (C) An amount equal to the amount received
28 during the taxable year as a recovery or refund of
29 real property taxes paid with respect to the
30 taxpayer's principal residence under the Revenue Act
31 of 1939 and for which a deduction was previously
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1 taken under subparagraph (L) of this paragraph (2)
2 prior to July 1, 1991, the retrospective application
3 date of Article 4 of Public Act 87-17. In the case
4 of multi-unit or multi-use structures and farm
5 dwellings, the taxes on the taxpayer's principal
6 residence shall be that portion of the total taxes
7 for the entire property which is attributable to
8 such principal residence;
9 (D) An amount equal to the amount of the
10 capital gain deduction allowable under the Internal
11 Revenue Code, to the extent deducted from gross
12 income in the computation of adjusted gross income;
13 and
14 (D-5) An amount, to the extent not included in
15 adjusted gross income, equal to the amount of money
16 withdrawn by the taxpayer in the taxable year from a
17 medical care savings account and the interest earned
18 on the account in the taxable year of a withdrawal
19 pursuant to subsection (b) of Section 20 of the
20 Medical Care Savings Account Act;
21 and by deducting from the total so obtained the sum of
22 the following amounts:
23 (E) Any amount included in such total in
24 respect of any compensation (including but not
25 limited to any compensation paid or accrued to a
26 serviceman while a prisoner of war or missing in
27 action) paid to a resident by reason of being on
28 active duty in the Armed Forces of the United States
29 and in respect of any compensation paid or accrued
30 to a resident who as a governmental employee was a
31 prisoner of war or missing in action, and in respect
32 of any compensation paid to a resident in 1971 or
33 thereafter for annual training performed pursuant to
34 Sections 502 and 503, Title 32, United States Code
HB3811 Engrossed -3- LRB9010584KDgc
1 as a member of the Illinois National Guard;
2 (F) An amount equal to all amounts included in
3 such total pursuant to the provisions of Sections
4 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
5 408 of the Internal Revenue Code, or included in
6 such total as distributions under the provisions of
7 any retirement or disability plan for employees of
8 any governmental agency or unit, or retirement
9 payments to retired partners, which payments are
10 excluded in computing net earnings from self
11 employment by Section 1402 of the Internal Revenue
12 Code and regulations adopted pursuant thereto;
13 (G) The valuation limitation amount;
14 (H) An amount equal to the amount of any tax
15 imposed by this Act which was refunded to the
16 taxpayer and included in such total for the taxable
17 year;
18 (I) An amount equal to all amounts included in
19 such total pursuant to the provisions of Section 111
20 of the Internal Revenue Code as a recovery of items
21 previously deducted from adjusted gross income in
22 the computation of taxable income;
23 (J) An amount equal to those dividends
24 included in such total which were paid by a
25 corporation which conducts business operations in an
26 Enterprise Zone or zones created under the Illinois
27 Enterprise Zone Act, and conducts substantially all
28 of its operations in an Enterprise Zone or zones;
29 (K) An amount equal to those dividends
30 included in such total that were paid by a
31 corporation that conducts business operations in a
32 federally designated Foreign Trade Zone or Sub-Zone
33 and that is designated a High Impact Business
34 located in Illinois; provided that dividends
HB3811 Engrossed -4- LRB9010584KDgc
1 eligible for the deduction provided in subparagraph
2 (J) of paragraph (2) of this subsection shall not be
3 eligible for the deduction provided under this
4 subparagraph (K);
5 (L) For taxable years ending after December
6 31, 1983, an amount equal to all social security
7 benefits and railroad retirement benefits included
8 in such total pursuant to Sections 72(r) and 86 of
9 the Internal Revenue Code;
10 (M) With the exception of any amounts
11 subtracted under subparagraph (N), an amount equal
12 to the sum of all amounts disallowed as deductions
13 by Sections 171(a) (2), and 265(2) of the Internal
14 Revenue Code of 1954, as now or hereafter amended,
15 and all amounts of expenses allocable to interest
16 and disallowed as deductions by Section 265(1) of
17 the Internal Revenue Code of 1954, as now or
18 hereafter amended;
19 (N) An amount equal to all amounts included in
20 such total which are exempt from taxation by this
21 State either by reason of its statutes or
22 Constitution or by reason of the Constitution,
23 treaties or statutes of the United States; provided
24 that, in the case of any statute of this State that
25 exempts income derived from bonds or other
26 obligations from the tax imposed under this Act, the
27 amount exempted shall be the interest net of bond
28 premium amortization;
29 (O) An amount equal to any contribution made
30 to a job training project established pursuant to
31 the Tax Increment Allocation Redevelopment Act;
32 (P) An amount equal to the amount of the
33 deduction used to compute the federal income tax
34 credit for restoration of substantial amounts held
HB3811 Engrossed -5- LRB9010584KDgc
1 under claim of right for the taxable year pursuant
2 to Section 1341 of the Internal Revenue Code of
3 1986;
4 (Q) An amount equal to any amounts included in
5 such total, received by the taxpayer as an
6 acceleration in the payment of life, endowment or
7 annuity benefits in advance of the time they would
8 otherwise be payable as an indemnity for a terminal
9 illness;
10 (R) An amount equal to the amount of any
11 federal or State bonus paid to veterans of the
12 Persian Gulf War;
13 (S) An amount, to the extent included in
14 adjusted gross income, equal to the amount of a
15 contribution made in the taxable year on behalf of
16 the taxpayer to a medical care savings account
17 established under the Medical Care Savings Account
18 Act to the extent the contribution is accepted by
19 the account administrator as provided in that Act;
20 (T) An amount, to the extent included in
21 adjusted gross income, equal to the amount of
22 interest earned in the taxable year on a medical
23 care savings account established under the Medical
24 Care Savings Account Act on behalf of the taxpayer,
25 other than interest added pursuant to item (D-5) of
26 this paragraph (2);
27 (U) For one taxable year beginning on or after
28 January 1, 1994, an amount equal to the total amount
29 of tax imposed and paid under subsections (a) and
30 (b) of Section 201 of this Act on grant amounts
31 received by the taxpayer under the Nursing Home
32 Grant Assistance Act during the taxpayer's taxable
33 years 1992 and 1993; and
34 (V) Beginning with tax years ending on or
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1 after December 31, 1995 and ending with tax years
2 ending on or before December 31, 1999, an amount
3 equal to the amount paid by a taxpayer who is a
4 self-employed taxpayer, a partner of a partnership,
5 or a shareholder in a Subchapter S corporation for
6 health insurance or long-term care insurance for
7 that taxpayer or that taxpayer's spouse or
8 dependents, to the extent that the amount paid for
9 that health insurance or long-term care insurance
10 may be deducted under Section 213 of the Internal
11 Revenue Code of 1986, has not been deducted on the
12 federal income tax return of the taxpayer, and does
13 not exceed the taxable income attributable to that
14 taxpayer's income, self-employment income, or
15 Subchapter S corporation income; except that no
16 deduction shall be allowed under this item (V) if
17 the taxpayer is eligible to participate in any
18 health insurance or long-term care insurance plan of
19 an employer of the taxpayer or the taxpayer's
20 spouse. The amount of the health insurance and
21 long-term care insurance subtracted under this item
22 (V) shall be determined by multiplying total health
23 insurance and long-term care insurance premiums paid
24 by the taxpayer times a number that represents the
25 fractional percentage of eligible medical expenses
26 under Section 213 of the Internal Revenue Code of
27 1986 not actually deducted on the taxpayer's federal
28 income tax return; and.
29 (W) For taxable years beginning on or after
30 January 1, 1998, all amounts included in the
31 taxpayer's federal gross income in the taxable year
32 from amounts converted from a regular IRA to a Roth
33 IRA. This paragraph is exempt from the provisions of
34 Section 250.
HB3811 Engrossed -7- LRB9010584KDgc
1 (b) Corporations.
2 (1) In general. In the case of a corporation, base
3 income means an amount equal to the taxpayer's taxable
4 income for the taxable year as modified by paragraph (2).
5 (2) Modifications. The taxable income referred to
6 in paragraph (1) shall be modified by adding thereto the
7 sum of the following amounts:
8 (A) An amount equal to all amounts paid or
9 accrued to the taxpayer as interest and all
10 distributions received from regulated investment
11 companies during the taxable year to the extent
12 excluded from gross income in the computation of
13 taxable income;
14 (B) An amount equal to the amount of tax
15 imposed by this Act to the extent deducted from
16 gross income in the computation of taxable income
17 for the taxable year;
18 (C) In the case of a regulated investment
19 company, an amount equal to the excess of (i) the
20 net long-term capital gain for the taxable year,
21 over (ii) the amount of the capital gain dividends
22 designated as such in accordance with Section
23 852(b)(3)(C) of the Internal Revenue Code and any
24 amount designated under Section 852(b)(3)(D) of the
25 Internal Revenue Code, attributable to the taxable
26 year.
27 This amendatory Act of 1995 is declarative of existing
28 law and is not a new enactment.
29 (D) The amount of any net operating loss
30 deduction taken in arriving at taxable income, other
31 than a net operating loss carried forward from a
32 taxable year ending prior to December 31, 1986; and
33 (E) For taxable years in which a net operating
34 loss carryback or carryforward from a taxable year
HB3811 Engrossed -8- LRB9010584KDgc
1 ending prior to December 31, 1986 is an element of
2 taxable income under paragraph (1) of subsection (e)
3 or subparagraph (E) of paragraph (2) of subsection
4 (e), the amount by which addition modifications
5 other than those provided by this subparagraph (E)
6 exceeded subtraction modifications in such earlier
7 taxable year, with the following limitations applied
8 in the order that they are listed:
9 (i) the addition modification relating to
10 the net operating loss carried back or forward
11 to the taxable year from any taxable year
12 ending prior to December 31, 1986 shall be
13 reduced by the amount of addition modification
14 under this subparagraph (E) which related to
15 that net operating loss and which was taken
16 into account in calculating the base income of
17 an earlier taxable year, and
18 (ii) the addition modification relating
19 to the net operating loss carried back or
20 forward to the taxable year from any taxable
21 year ending prior to December 31, 1986 shall
22 not exceed the amount of such carryback or
23 carryforward;
24 For taxable years in which there is a net
25 operating loss carryback or carryforward from more
26 than one other taxable year ending prior to December
27 31, 1986, the addition modification provided in this
28 subparagraph (E) shall be the sum of the amounts
29 computed independently under the preceding
30 provisions of this subparagraph (E) for each such
31 taxable year,
32 and by deducting from the total so obtained the sum of
33 the following amounts:
34 (F) An amount equal to the amount of any tax
HB3811 Engrossed -9- LRB9010584KDgc
1 imposed by this Act which was refunded to the
2 taxpayer and included in such total for the taxable
3 year;
4 (G) An amount equal to any amount included in
5 such total under Section 78 of the Internal Revenue
6 Code;
7 (H) In the case of a regulated investment
8 company, an amount equal to the amount of exempt
9 interest dividends as defined in subsection (b) (5)
10 of Section 852 of the Internal Revenue Code, paid to
11 shareholders for the taxable year;
12 (I) With the exception of any amounts
13 subtracted under subparagraph (J), an amount equal
14 to the sum of all amounts disallowed as deductions
15 by Sections 171(a) (2), and 265(a)(2) and amounts
16 disallowed as interest expense by Section 291(a)(3)
17 of the Internal Revenue Code, as now or hereafter
18 amended, and all amounts of expenses allocable to
19 interest and disallowed as deductions by Section
20 265(a)(1) of the Internal Revenue Code, as now or
21 hereafter amended;
22 (J) An amount equal to all amounts included in
23 such total which are exempt from taxation by this
24 State either by reason of its statutes or
25 Constitution or by reason of the Constitution,
26 treaties or statutes of the United States; provided
27 that, in the case of any statute of this State that
28 exempts income derived from bonds or other
29 obligations from the tax imposed under this Act, the
30 amount exempted shall be the interest net of bond
31 premium amortization;
32 (K) An amount equal to those dividends
33 included in such total which were paid by a
34 corporation which conducts business operations in an
HB3811 Engrossed -10- LRB9010584KDgc
1 Enterprise Zone or zones created under the Illinois
2 Enterprise Zone Act and conducts substantially all
3 of its operations in an Enterprise Zone or zones;
4 (L) An amount equal to those dividends
5 included in such total that were paid by a
6 corporation that conducts business operations in a
7 federally designated Foreign Trade Zone or Sub-Zone
8 and that is designated a High Impact Business
9 located in Illinois; provided that dividends
10 eligible for the deduction provided in subparagraph
11 (K) of paragraph 2 of this subsection shall not be
12 eligible for the deduction provided under this
13 subparagraph (L);
14 (M) For any taxpayer that is a financial
15 organization within the meaning of Section 304(c) of
16 this Act, an amount included in such total as
17 interest income from a loan or loans made by such
18 taxpayer to a borrower, to the extent that such a
19 loan is secured by property which is eligible for
20 the Enterprise Zone Investment Credit. To determine
21 the portion of a loan or loans that is secured by
22 property eligible for a Section 201(h) investment
23 credit to the borrower, the entire principal amount
24 of the loan or loans between the taxpayer and the
25 borrower should be divided into the basis of the
26 Section 201(h) investment credit property which
27 secures the loan or loans, using for this purpose
28 the original basis of such property on the date that
29 it was placed in service in the Enterprise Zone.
30 The subtraction modification available to taxpayer
31 in any year under this subsection shall be that
32 portion of the total interest paid by the borrower
33 with respect to such loan attributable to the
34 eligible property as calculated under the previous
HB3811 Engrossed -11- LRB9010584KDgc
1 sentence;
2 (M-1) For any taxpayer that is a financial
3 organization within the meaning of Section 304(c) of
4 this Act, an amount included in such total as
5 interest income from a loan or loans made by such
6 taxpayer to a borrower, to the extent that such a
7 loan is secured by property which is eligible for
8 the High Impact Business Investment Credit. To
9 determine the portion of a loan or loans that is
10 secured by property eligible for a Section 201(i)
11 investment credit to the borrower, the entire
12 principal amount of the loan or loans between the
13 taxpayer and the borrower should be divided into the
14 basis of the Section 201(i) investment credit
15 property which secures the loan or loans, using for
16 this purpose the original basis of such property on
17 the date that it was placed in service in a
18 federally designated Foreign Trade Zone or Sub-Zone
19 located in Illinois. No taxpayer that is eligible
20 for the deduction provided in subparagraph (M) of
21 paragraph (2) of this subsection shall be eligible
22 for the deduction provided under this subparagraph
23 (M-1). The subtraction modification available to
24 taxpayers in any year under this subsection shall be
25 that portion of the total interest paid by the
26 borrower with respect to such loan attributable to
27 the eligible property as calculated under the
28 previous sentence;
29 (N) Two times any contribution made during the
30 taxable year to a designated zone organization to
31 the extent that the contribution (i) qualifies as a
32 charitable contribution under subsection (c) of
33 Section 170 of the Internal Revenue Code and (ii)
34 must, by its terms, be used for a project approved
HB3811 Engrossed -12- LRB9010584KDgc
1 by the Department of Commerce and Community Affairs
2 under Section 11 of the Illinois Enterprise Zone
3 Act;
4 (O) An amount equal to: (i) 85% for taxable
5 years ending on or before December 31, 1992, or, a
6 percentage equal to the percentage allowable under
7 Section 243(a)(1) of the Internal Revenue Code of
8 1986 for taxable years ending after December 31,
9 1992, of the amount by which dividends included in
10 taxable income and received from a corporation that
11 is not created or organized under the laws of the
12 United States or any state or political subdivision
13 thereof, including, for taxable years ending on or
14 after December 31, 1988, dividends received or
15 deemed received or paid or deemed paid under
16 Sections 951 through 964 of the Internal Revenue
17 Code, exceed the amount of the modification provided
18 under subparagraph (G) of paragraph (2) of this
19 subsection (b) which is related to such dividends;
20 plus (ii) 100% of the amount by which dividends,
21 included in taxable income and received, including,
22 for taxable years ending on or after December 31,
23 1988, dividends received or deemed received or paid
24 or deemed paid under Sections 951 through 964 of the
25 Internal Revenue Code, from any such corporation
26 specified in clause (i) that would but for the
27 provisions of Section 1504 (b) (3) of the Internal
28 Revenue Code be treated as a member of the
29 affiliated group which includes the dividend
30 recipient, exceed the amount of the modification
31 provided under subparagraph (G) of paragraph (2) of
32 this subsection (b) which is related to such
33 dividends;
34 (P) An amount equal to any contribution made
HB3811 Engrossed -13- LRB9010584KDgc
1 to a job training project established pursuant to
2 the Tax Increment Allocation Redevelopment Act; and
3 (Q) An amount equal to the amount of the
4 deduction used to compute the federal income tax
5 credit for restoration of substantial amounts held
6 under claim of right for the taxable year pursuant
7 to Section 1341 of the Internal Revenue Code of
8 1986.
9 (3) Special rule. For purposes of paragraph (2)
10 (A), "gross income" in the case of a life insurance
11 company, for tax years ending on and after December 31,
12 1994, shall mean the gross investment income for the
13 taxable year.
14 (c) Trusts and estates.
15 (1) In general. In the case of a trust or estate,
16 base income means an amount equal to the taxpayer's
17 taxable income for the taxable year as modified by
18 paragraph (2).
19 (2) Modifications. Subject to the provisions of
20 paragraph (3), the taxable income referred to in
21 paragraph (1) shall be modified by adding thereto the sum
22 of the following amounts:
23 (A) An amount equal to all amounts paid or
24 accrued to the taxpayer as interest or dividends
25 during the taxable year to the extent excluded from
26 gross income in the computation of taxable income;
27 (B) In the case of (i) an estate, $600; (ii) a
28 trust which, under its governing instrument, is
29 required to distribute all of its income currently,
30 $300; and (iii) any other trust, $100, but in each
31 such case, only to the extent such amount was
32 deducted in the computation of taxable income;
33 (C) An amount equal to the amount of tax
34 imposed by this Act to the extent deducted from
HB3811 Engrossed -14- LRB9010584KDgc
1 gross income in the computation of taxable income
2 for the taxable year;
3 (D) The amount of any net operating loss
4 deduction taken in arriving at taxable income, other
5 than a net operating loss carried forward from a
6 taxable year ending prior to December 31, 1986;
7 (E) For taxable years in which a net operating
8 loss carryback or carryforward from a taxable year
9 ending prior to December 31, 1986 is an element of
10 taxable income under paragraph (1) of subsection (e)
11 or subparagraph (E) of paragraph (2) of subsection
12 (e), the amount by which addition modifications
13 other than those provided by this subparagraph (E)
14 exceeded subtraction modifications in such taxable
15 year, with the following limitations applied in the
16 order that they are listed:
17 (i) the addition modification relating to
18 the net operating loss carried back or forward
19 to the taxable year from any taxable year
20 ending prior to December 31, 1986 shall be
21 reduced by the amount of addition modification
22 under this subparagraph (E) which related to
23 that net operating loss and which was taken
24 into account in calculating the base income of
25 an earlier taxable year, and
26 (ii) the addition modification relating
27 to the net operating loss carried back or
28 forward to the taxable year from any taxable
29 year ending prior to December 31, 1986 shall
30 not exceed the amount of such carryback or
31 carryforward;
32 For taxable years in which there is a net
33 operating loss carryback or carryforward from more
34 than one other taxable year ending prior to December
HB3811 Engrossed -15- LRB9010584KDgc
1 31, 1986, the addition modification provided in this
2 subparagraph (E) shall be the sum of the amounts
3 computed independently under the preceding
4 provisions of this subparagraph (E) for each such
5 taxable year;
6 (F) For taxable years ending on or after
7 January 1, 1989, an amount equal to the tax deducted
8 pursuant to Section 164 of the Internal Revenue Code
9 if the trust or estate is claiming the same tax for
10 purposes of the Illinois foreign tax credit under
11 Section 601 of this Act; and
12 (G) An amount equal to the amount of the
13 capital gain deduction allowable under the Internal
14 Revenue Code, to the extent deducted from gross
15 income in the computation of taxable income;
16 and by deducting from the total so obtained the sum of
17 the following amounts:
18 (H) An amount equal to all amounts included in
19 such total pursuant to the provisions of Sections
20 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and
21 408 of the Internal Revenue Code or included in such
22 total as distributions under the provisions of any
23 retirement or disability plan for employees of any
24 governmental agency or unit, or retirement payments
25 to retired partners, which payments are excluded in
26 computing net earnings from self employment by
27 Section 1402 of the Internal Revenue Code and
28 regulations adopted pursuant thereto;
29 (I) The valuation limitation amount;
30 (J) An amount equal to the amount of any tax
31 imposed by this Act which was refunded to the
32 taxpayer and included in such total for the taxable
33 year;
34 (K) An amount equal to all amounts included in
HB3811 Engrossed -16- LRB9010584KDgc
1 taxable income as modified by subparagraphs (A),
2 (B), (C), (D), (E), (F) and (G) which are exempt
3 from taxation by this State either by reason of its
4 statutes or Constitution or by reason of the
5 Constitution, treaties or statutes of the United
6 States; provided that, in the case of any statute of
7 this State that exempts income derived from bonds or
8 other obligations from the tax imposed under this
9 Act, the amount exempted shall be the interest net
10 of bond premium amortization;
11 (L) With the exception of any amounts
12 subtracted under subparagraph (K), an amount equal
13 to the sum of all amounts disallowed as deductions
14 by Sections 171(a) (2) and 265(a)(2) of the Internal
15 Revenue Code, as now or hereafter amended, and all
16 amounts of expenses allocable to interest and
17 disallowed as deductions by Section 265(1) of the
18 Internal Revenue Code of 1954, as now or hereafter
19 amended;
20 (M) An amount equal to those dividends
21 included in such total which were paid by a
22 corporation which conducts business operations in an
23 Enterprise Zone or zones created under the Illinois
24 Enterprise Zone Act and conducts substantially all
25 of its operations in an Enterprise Zone or Zones;
26 (N) An amount equal to any contribution made
27 to a job training project established pursuant to
28 the Tax Increment Allocation Redevelopment Act;
29 (O) An amount equal to those dividends
30 included in such total that were paid by a
31 corporation that conducts business operations in a
32 federally designated Foreign Trade Zone or Sub-Zone
33 and that is designated a High Impact Business
34 located in Illinois; provided that dividends
HB3811 Engrossed -17- LRB9010584KDgc
1 eligible for the deduction provided in subparagraph
2 (M) of paragraph (2) of this subsection shall not be
3 eligible for the deduction provided under this
4 subparagraph (O); and
5 (P) An amount equal to the amount of the
6 deduction used to compute the federal income tax
7 credit for restoration of substantial amounts held
8 under claim of right for the taxable year pursuant
9 to Section 1341 of the Internal Revenue Code of
10 1986.
11 (3) Limitation. The amount of any modification
12 otherwise required under this subsection shall, under
13 regulations prescribed by the Department, be adjusted by
14 any amounts included therein which were properly paid,
15 credited, or required to be distributed, or permanently
16 set aside for charitable purposes pursuant to Internal
17 Revenue Code Section 642(c) during the taxable year.
18 (d) Partnerships.
19 (1) In general. In the case of a partnership, base
20 income means an amount equal to the taxpayer's taxable
21 income for the taxable year as modified by paragraph (2).
22 (2) Modifications. The taxable income referred to
23 in paragraph (1) shall be modified by adding thereto the
24 sum of the following amounts:
25 (A) An amount equal to all amounts paid or
26 accrued to the taxpayer as interest or dividends
27 during the taxable year to the extent excluded from
28 gross income in the computation of taxable income;
29 (B) An amount equal to the amount of tax
30 imposed by this Act to the extent deducted from
31 gross income for the taxable year; and
32 (C) The amount of deductions allowed to the
33 partnership pursuant to Section 707 (c) of the
34 Internal Revenue Code in calculating its taxable
HB3811 Engrossed -18- LRB9010584KDgc
1 income;
2 (D) An amount equal to the amount of the
3 capital gain deduction allowable under the Internal
4 Revenue Code, to the extent deducted from gross
5 income in the computation of taxable income;
6 and by deducting from the total so obtained the following
7 amounts:
8 (E) The valuation limitation amount;
9 (F) An amount equal to the amount of any tax
10 imposed by this Act which was refunded to the
11 taxpayer and included in such total for the taxable
12 year;
13 (G) An amount equal to all amounts included in
14 taxable income as modified by subparagraphs (A),
15 (B), (C) and (D) which are exempt from taxation by
16 this State either by reason of its statutes or
17 Constitution or by reason of the Constitution,
18 treaties or statutes of the United States; provided
19 that, in the case of any statute of this State that
20 exempts income derived from bonds or other
21 obligations from the tax imposed under this Act, the
22 amount exempted shall be the interest net of bond
23 premium amortization;
24 (H) Any income of the partnership which
25 constitutes personal service income as defined in
26 Section 1348 (b) (1) of the Internal Revenue Code
27 (as in effect December 31, 1981) or a reasonable
28 allowance for compensation paid or accrued for
29 services rendered by partners to the partnership,
30 whichever is greater;
31 (I) An amount equal to all amounts of income
32 distributable to an entity subject to the Personal
33 Property Tax Replacement Income Tax imposed by
34 subsections (c) and (d) of Section 201 of this Act
HB3811 Engrossed -19- LRB9010584KDgc
1 including amounts distributable to organizations
2 exempt from federal income tax by reason of Section
3 501(a) of the Internal Revenue Code;
4 (J) With the exception of any amounts
5 subtracted under subparagraph (G), an amount equal
6 to the sum of all amounts disallowed as deductions
7 by Sections 171(a) (2), and 265(2) of the Internal
8 Revenue Code of 1954, as now or hereafter amended,
9 and all amounts of expenses allocable to interest
10 and disallowed as deductions by Section 265(1) of
11 the Internal Revenue Code, as now or hereafter
12 amended;
13 (K) An amount equal to those dividends
14 included in such total which were paid by a
15 corporation which conducts business operations in an
16 Enterprise Zone or zones created under the Illinois
17 Enterprise Zone Act, enacted by the 82nd General
18 Assembly, and which does not conduct such operations
19 other than in an Enterprise Zone or Zones;
20 (L) An amount equal to any contribution made
21 to a job training project established pursuant to
22 the Real Property Tax Increment Allocation
23 Redevelopment Act;
24 (M) An amount equal to those dividends
25 included in such total that were paid by a
26 corporation that conducts business operations in a
27 federally designated Foreign Trade Zone or Sub-Zone
28 and that is designated a High Impact Business
29 located in Illinois; provided that dividends
30 eligible for the deduction provided in subparagraph
31 (K) of paragraph (2) of this subsection shall not be
32 eligible for the deduction provided under this
33 subparagraph (M); and
34 (N) An amount equal to the amount of the
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1 deduction used to compute the federal income tax
2 credit for restoration of substantial amounts held
3 under claim of right for the taxable year pursuant
4 to Section 1341 of the Internal Revenue Code of
5 1986.
6 (e) Gross income; adjusted gross income; taxable income.
7 (1) In general. Subject to the provisions of
8 paragraph (2) and subsection (b) (3), for purposes of
9 this Section and Section 803(e), a taxpayer's gross
10 income, adjusted gross income, or taxable income for the
11 taxable year shall mean the amount of gross income,
12 adjusted gross income or taxable income properly
13 reportable for federal income tax purposes for the
14 taxable year under the provisions of the Internal Revenue
15 Code. Taxable income may be less than zero. However, for
16 taxable years ending on or after December 31, 1986, net
17 operating loss carryforwards from taxable years ending
18 prior to December 31, 1986, may not exceed the sum of
19 federal taxable income for the taxable year before net
20 operating loss deduction, plus the excess of addition
21 modifications over subtraction modifications for the
22 taxable year. For taxable years ending prior to December
23 31, 1986, taxable income may never be an amount in excess
24 of the net operating loss for the taxable year as defined
25 in subsections (c) and (d) of Section 172 of the Internal
26 Revenue Code, provided that when taxable income of a
27 corporation (other than a Subchapter S corporation),
28 trust, or estate is less than zero and addition
29 modifications, other than those provided by subparagraph
30 (E) of paragraph (2) of subsection (b) for corporations
31 or subparagraph (E) of paragraph (2) of subsection (c)
32 for trusts and estates, exceed subtraction modifications,
33 an addition modification must be made under those
34 subparagraphs for any other taxable year to which the
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1 taxable income less than zero (net operating loss) is
2 applied under Section 172 of the Internal Revenue Code or
3 under subparagraph (E) of paragraph (2) of this
4 subsection (e) applied in conjunction with Section 172 of
5 the Internal Revenue Code.
6 (2) Special rule. For purposes of paragraph (1) of
7 this subsection, the taxable income properly reportable
8 for federal income tax purposes shall mean:
9 (A) Certain life insurance companies. In the
10 case of a life insurance company subject to the tax
11 imposed by Section 801 of the Internal Revenue Code,
12 life insurance company taxable income, plus the
13 amount of distribution from pre-1984 policyholder
14 surplus accounts as calculated under Section 815a of
15 the Internal Revenue Code;
16 (B) Certain other insurance companies. In the
17 case of mutual insurance companies subject to the
18 tax imposed by Section 831 of the Internal Revenue
19 Code, insurance company taxable income;
20 (C) Regulated investment companies. In the
21 case of a regulated investment company subject to
22 the tax imposed by Section 852 of the Internal
23 Revenue Code, investment company taxable income;
24 (D) Real estate investment trusts. In the
25 case of a real estate investment trust subject to
26 the tax imposed by Section 857 of the Internal
27 Revenue Code, real estate investment trust taxable
28 income;
29 (E) Consolidated corporations. In the case of
30 a corporation which is a member of an affiliated
31 group of corporations filing a consolidated income
32 tax return for the taxable year for federal income
33 tax purposes, taxable income determined as if such
34 corporation had filed a separate return for federal
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1 income tax purposes for the taxable year and each
2 preceding taxable year for which it was a member of
3 an affiliated group. For purposes of this
4 subparagraph, the taxpayer's separate taxable income
5 shall be determined as if the election provided by
6 Section 243(b) (2) of the Internal Revenue Code had
7 been in effect for all such years;
8 (F) Cooperatives. In the case of a
9 cooperative corporation or association, the taxable
10 income of such organization determined in accordance
11 with the provisions of Section 1381 through 1388 of
12 the Internal Revenue Code;
13 (G) Subchapter S corporations. In the case
14 of: (i) a Subchapter S corporation for which there
15 is in effect an election for the taxable year under
16 Section 1362 of the Internal Revenue Code, the
17 taxable income of such corporation determined in
18 accordance with Section 1363(b) of the Internal
19 Revenue Code, except that taxable income shall take
20 into account those items which are required by
21 Section 1363(b)(1) of the Internal Revenue Code to
22 be separately stated; and (ii) a Subchapter S
23 corporation for which there is in effect a federal
24 election to opt out of the provisions of the
25 Subchapter S Revision Act of 1982 and have applied
26 instead the prior federal Subchapter S rules as in
27 effect on July 1, 1982, the taxable income of such
28 corporation determined in accordance with the
29 federal Subchapter S rules as in effect on July 1,
30 1982; and
31 (H) Partnerships. In the case of a
32 partnership, taxable income determined in accordance
33 with Section 703 of the Internal Revenue Code,
34 except that taxable income shall take into account
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1 those items which are required by Section 703(a)(1)
2 to be separately stated but which would be taken
3 into account by an individual in calculating his
4 taxable income.
5 (f) Valuation limitation amount.
6 (1) In general. The valuation limitation amount
7 referred to in subsections (a) (2) (G), (c) (2) (I) and
8 (d)(2) (E) is an amount equal to:
9 (A) The sum of the pre-August 1, 1969
10 appreciation amounts (to the extent consisting of
11 gain reportable under the provisions of Section 1245
12 or 1250 of the Internal Revenue Code) for all
13 property in respect of which such gain was reported
14 for the taxable year; plus
15 (B) The lesser of (i) the sum of the
16 pre-August 1, 1969 appreciation amounts (to the
17 extent consisting of capital gain) for all property
18 in respect of which such gain was reported for
19 federal income tax purposes for the taxable year, or
20 (ii) the net capital gain for the taxable year,
21 reduced in either case by any amount of such gain
22 included in the amount determined under subsection
23 (a) (2) (F) or (c) (2) (H).
24 (2) Pre-August 1, 1969 appreciation amount.
25 (A) If the fair market value of property
26 referred to in paragraph (1) was readily
27 ascertainable on August 1, 1969, the pre-August 1,
28 1969 appreciation amount for such property is the
29 lesser of (i) the excess of such fair market value
30 over the taxpayer's basis (for determining gain) for
31 such property on that date (determined under the
32 Internal Revenue Code as in effect on that date), or
33 (ii) the total gain realized and reportable for
34 federal income tax purposes in respect of the sale,
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1 exchange or other disposition of such property.
2 (B) If the fair market value of property
3 referred to in paragraph (1) was not readily
4 ascertainable on August 1, 1969, the pre-August 1,
5 1969 appreciation amount for such property is that
6 amount which bears the same ratio to the total gain
7 reported in respect of the property for federal
8 income tax purposes for the taxable year, as the
9 number of full calendar months in that part of the
10 taxpayer's holding period for the property ending
11 July 31, 1969 bears to the number of full calendar
12 months in the taxpayer's entire holding period for
13 the property.
14 (C) The Department shall prescribe such
15 regulations as may be necessary to carry out the
16 purposes of this paragraph.
17 (g) Double deductions. Unless specifically provided
18 otherwise, nothing in this Section shall permit the same item
19 to be deducted more than once.
20 (h) Legislative intention. Except as expressly provided
21 by this Section there shall be no modifications or
22 limitations on the amounts of income, gain, loss or deduction
23 taken into account in determining gross income, adjusted
24 gross income or taxable income for federal income tax
25 purposes for the taxable year, or in the amount of such items
26 entering into the computation of base income and net income
27 under this Act for such taxable year, whether in respect of
28 property values as of August 1, 1969 or otherwise.
29 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
30 89-418, eff. 11-15-95; 89-460, eff. 5-24-96; 89-626, eff.
31 8-9-96; 90-491, eff. 1-1-98.)
32 Section 5. The Property Tax Code is amended by changing
33 Section 16-190 and adding Section 16-191 as follows:
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1 (35 ILCS 200/16-190)
2 Sec. 16-190. Record of proceedings and orders. The
3 Property Tax Appeal Board shall keep a record of its
4 proceedings and orders and the record shall be a public
5 record. In all cases where the contesting party is seeking a
6 change of $100,000 or more in assessed valuation, the
7 contesting party must provide a court reporter at his or her
8 own expense. The original certified transcript of such
9 hearing shall be forwarded to the Springfield office of the
10 Property Tax Appeal Board and shall become part of the
11 Board's official record of the proceeding on appeal. Each
12 year the Property Tax Appeal Board shall publish a volume
13 containing a synopsis of representative cases decided by the
14 Board during that year. The publication shall be organized by
15 or cross-referenced by the issue presented before the Board
16 in each case contained in the publication. The publication
17 shall be available for inspection by the public at the
18 Property Tax Appeal Board offices and copies shall be
19 available for a reasonable cost, except as provided in
20 Section 16-191.
21 (Source: P.A. 87-1189; 88-455.)
22 (35 ILCS 200/16-191 new)
23 Sec. 16-191. Publications for assessors. The Property
24 Tax Appeal Board shall provide to any assessor or chief
25 county assessment officer, free of charge, a copy of the
26 volume published pursuant to Section 16-190 and any other
27 pamphlet, publication, brochure, or research document
28 produced by the Property Tax Appeal Board, upon request, oral
29 or written.
30 Section 99. Effective date. This Act takes effect upon
31 becoming law.