PETERSON-SEVERNS-LINK-PARKER-WELCH, VIVERITO, JACOBS, CLAYBORNE, BOWLES AND FARLEY. (KUBIK-KLINGLER-ERWIN) 35 ILCS 5/304 from Ch. 120, par. 3-304 Amends the Illinois Income Tax Act. Provides that if a person other than a resident derives business income from this State and others, the business income shall be apportioned to this State by multiplying the income by the sales factor (now by multiplying the income by a fraction, the numerator of which is the sum of the property factor, the payroll factor, and 200% of the sales factor and the denominator of which is 4 reduced by the number of factors other than the sales factor which have a denominator of zero and by an additional 2 if the sales factor has a denominator of zero). Deletes provisions in the definition of sales factor stating that sales are in this State if the property is shipped from this State and the purchaser is the government or is otherwise exempt from taxation. Deletes provision stating that sales are not in this State if the seller and purchaser would be members of the same unitary business group but for the fact that one of them is a person with 80% or more of total business activity outside of the United States and the property is purchased for resale. Provides that the provision excluding dividends and Subpart F income from the sales factor shall apply to taxable years ending on or after December 31, 1995 (now taxable years ending on or after December 31, 1995 and excluding taxable years ending after December 31, 1997). Effective immediately. FISCAL NOTE (Dept. of Revenue) Adoption of a single apportionment formula based on sales would lower revenue collections of Ill. corporate income tax receipts by an estimated minimum $30 million, annually. Personal Proper- ty Replacement Income Tax fund receipts will proportionately decline an additional minimum of $16 million, annually. The potential cost associated with SB 592 may be considerably high- er if those companies outside of Ill. that are adversely affected by the formula change successfully appeal to the Di- rector claiming "income distortion" and retain the current formula. SENATE AMENDMENT NO. 1. Adds reference to: 35 ILCS 5/804 from Ch. 120, par. 8-804 35 ILCS 5/1501 from Ch. 120, par. 15-1501 Deletes everything. Amends the Illinois Income Tax Act. Provides that for tax years ending on or after December 31, 1997, persons other than residents who derive business income from this State and one or more other states shall apportion their business income using a single factor sales formula. Provides that this sales factor shall be a fraction, the numerator of which is the total sales of the person in this State during the taxable year, and the denominator of which is the total sales of the person everywhere during the taxable year. Excludes certain amounts from the sales factor for taxable years ending on or after December 31, 1995. Provides that no penalty shall be imposed for failure to pay the estimated tax due before the effective date of this amendatory Act if the underpayments are solely attributable to the change in the apportionment of income. In the definition of "unitary business group", provides that if the members' accounting periods differ, the common parent's accounting period, or if there is no common parent, the accounting period of the member that is expected to have, on a recurring basis, the greatest Illinois income tax liability must be used to determine which apportionment method to use. Provides that the provisions of this amendatory Act apply to tax years ending on or after December 31, 1997. Effective immediately. SENATE AMENDMENT NO. 2. Adds an introductory clause. 97-02-06 S FIRST READING 97-02-06 S REFERRED TO SENATE RULES COMMITTEE RULES 97-02-07 S ADDED AS A CHIEF CO-SPONSOR SEVERNS 97-02-19 S ASSIGNED TO COMMITTEE REVENUE 97-02-27 S FISCAL NOTE REQUESTED PETERSON 97-02-27 S FISCAL NOTE FILED 97-02-28 S POSTPONED 97-03-06 S AMENDMENT NO. 01-REVENUE S 97-03-06 S ADOPTED 97-03-06 S DO PASS AS AMENDED 010-000-000 SREV 97-03-06 S PLACED ON CALENDAR ORDER OF 2ND READING 97-03-11 97-03-06 S ADDED AS A CO-SPONSOR VIVERITO 97-03-11 S FILED WITH SECRETARY 97-03-11 S AMENDMENT NO. 02-PETERSON 97-03-11 S AMENDMENT REFERRED TO SRUL 97-03-12 S SECOND READING 97-03-12 S PLACED ON CALENDAR ORDER OF 3RD READING 97-03-13 97-03-12 S AMENDMENT NO. 02-PETERSON 97-03-12 S BE APPROVED FOR CONSIDERATION SRUL 97-03-12 S ADDED AS A CHIEF CO-SPONSOR LINK 97-03-12 S ADDED AS A CHIEF CO-SPONSOR PARKER 97-03-13 S ADDED AS A CHIEF CO-SPONSOR WELCH 97-03-13 S ADDED AS A CO-SPONSOR JACOBS 97-03-13 S RECALLED TO SECOND READING 97-03-13 S AMENDMENT NO. 02-PETERSON 97-03-13 S ADOPTED 97-03-13 S PLACED ON CALENDAR ORDER OF 3RD READING 97-03-14 97-03-17 S ADDED AS A CO-SPONSOR HALVORSON 97-03-17 S ADDED AS A CO-SPONSOR CLAYBORNE 97-03-17 S ADDED AS A CO-SPONSOR BOWLES 97-03-17 S THIRD READING - PASSED 055-000-000 97-03-18 H ARRIVE IN HOUSE 97-03-18 H PLACED CALENDAR ORDER OF FIRST READING 97-03-18 H HOUSE SPONSOR KUBIK 97-03-18 H FIRST READING 97-03-18 H REFERRED TO HOUSE RULES COMMITTEE RULES 97-03-21 H ASSIGNED TO COMMITTEE REVENUE 97-04-15 H ADDED AS A JOINT SPONSOR KLINGLER 97-05-08 H ADDED AS A JOINT SPONSOR ERWIN 97-05-08 H RE-REFERRED TO RULES COMM/RULE 19(A) RULES HRUL 97-05-09 S ADDED AS A CO-SPONSOR HAWKINSON 97-05-09 S ADDED AS A CO-SPONSOR SHADID 99-01-12 S SESSION SINE DIE END OF INQUIRY Full Text Bill Summary