House Sponsors: CURRIE-MOFFITT-SCHOENBERG. Senate Sponsors: PETERSON-CLAYBORNE-BOWLES-LINK-FITZGERALD Short description: INC TX-STANDARD EXEMPTION Synopsis of Bill as introduced: Amends the Illinois Income Tax Act. Provides that for taxable years ending on or after December 31, 1995, dividends and certain other amounts included under the Internal Revenue Code shall not be included in the numerator or denominator of the sales factor (now for taxable years ending on or after December 31, 1995 and excluding taxable years ending after December 31, 1997). Effective immediately. FISCAL NOTE, AMENDED (Dpt. Revenue) HB2363 does not impose a fiscal impact or have direct fiscal impact on the State. HOUSE AMENDMENT NO. 1. Adds reference to: 35 ILCS 5/301 from Ch. 120, par. 3-301 35 ILCS 5/704 from Ch. 120, par. 7-704 35 ILCS 105/19 from Ch. 120, par. 439.19 35 ILCS 115/19 from Ch. 120, par. 439.119 55 ILCS 5/5-1006.5 65 ILCS 5/8-11-6 from Ch. 24, par. 8-11-6 35 ILCS 110/19 rep. Further amends the Illinois Income Tax Act. Provides that in the case of a trust, unspecified items of income or deductions taken into account in computing base income and not otherwise allocated shall not be allocated to the State if the taxpayer had commercial domicile in the State when the item was paid, incurred, or accrued (now shall be allocated to the State). For purposes of withholding tax from a person engaged in domestic service employment, provides that the employer may (now shall) file an annual return and pay the taxes on or before the 15th day of the fourth month following the close of the employer's taxable year. Provides that the return may be filed with the employer's individual income tax return. Amends the Use Tax Act to make a cross reference to the Retailers' Occupation Tax Act. Amends the Service Occupation Tax Act to provide that if the Department of Revenue and taxpayer have agreed to an extension of time to issue a notice of tax liability, the claim may be filed at any time prior to the expiration of the period agreed upon. Amends the Special County Retailers' Occupation Tax for Public Safety in the Counties Code to make cross references to the Retailers' Occupation Tax Act. Amends the Home Rule Municipal Use Tax Act in the Illinois Municipal Code to provide that certain provisions of the Retailers' Occupation Tax Act that don't apply to this Act shall now apply. Repeals superfluous language in the Service Use Tax Act. HOUSE AMENDMENT NO. 2. Adds reference to: 35 ILCS 200/14-15 Amends the Property Tax Code if and only if the provisions of Senate Bill 51 of the 90th General Assembly become law. Allows the county treasurer to mark the tax books to reflect the issuance of a homestead certificate of error issued to and including 3 years after the date on which the annual judgment and order of sale for that tax year was first entered (now 3 years after the first day of January of the year after the year for which the homestead exemption should have been allowed). Effective immediately. HOUSE AMENDMENT NO. 3. Adds reference to: 65 ILCS 5/8-11-17 from Ch. 24, par. 8-11-17 Provides that a municipality that reduces telecommunications taxes with respect to persons age 65 or older shall rebate taxes directly. HOUSE AMENDMENT NO. 4. Adds reference to: 35 ILCS 200/9-195 Amends the Property Tax Code. Provides that no taxable interest in exempt property is created if exempt property is leased or otherwise transferred, directly or indirectly, to another whose property is not exempt, and immediately thereafter an agreement is entered into that directly or indirectly transfers the right to use, control, or possess that property back to the exempt owner and that, if title has been transferred, provides an option for a subsequent reverter of title to the exempt owner. Provides that this is declaratory of existing law. STATE MANDATES FISCAL NOTE, H-AM 2 HB 2363 fails to create a State mandate. SENATE AMENDMENT NO. 1. Deletes reference to: 35 ILCS 5/301 35 ILCS 5/704 35 ILCS 105/19 35 ILCS 110/19 rep. 35 ILCS 115/19 35 ILCS 200/9-195 35 ILCS 200/14-15 55 ILCS 5/5-1006.5 65 ILCS 5/8-11-6 65 ILCS 5/8-11-17 Adds reference to: 35 ILCS 5/204 from Ch. 120, par. 2-204 35 ILCS 5/502 from Ch. 120, par. 5-502 35 ILCS 5/702 from Ch. 120, par. 7-702 35 ILCS 5/703 from Ch. 120, par. 7-703 35 ILCS 5/804 35 ILCS 5/901 from Ch. 120, par. 9-901 35 ILCS 5/1501 Deletes everything. Amends the Illinois Income Tax Act. Increases the basic amount of the standard exemption for individuals and the additional amount for dependents from $1,000 to $1,300 in 1998, $1,650 in 1999, and $2,000 in 2000 and thereafter. Makes conforming changes with respect to disallowance of the basic amount to persons who are claimed as a dependent on another's tax return, nonresident returns, withholding exemptions, and information statements. Makes changes with respect to the annual percentage of deposits into the Income Tax Refund Fund and provides for transfer of surpluses in that Fund to the General Revenue Fund. Exempts the changes to the standard exemptions from the sunset provisions. Provides that for tax years ending on or after December 31, 1998, persons other than residents who derive business income from this State and one or more other states shall compute their apportionment factor by weighting their property, payroll, and sales factors as provided by certain calculations. 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. Effective immediately. Last action on Bill: PUBLIC ACT.............................. 90-0613 Last action date: 98-07-09 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 4 SENATE - 1 END OF INQUIRY Full Text Bill Status