(20 ILCS 2505/2505-575) (was 20 ILCS 2505/39b53)
Sec. 2505-575.
Income tax reciprocal agreements.
(a) Reciprocal agreement cost study. The Department shall
study
the use and cost effectiveness of all reciprocal agreements entered into under
the authority of Sections 302 and 701 of the Illinois Income Tax Act. The
Department shall report to the General Assembly as to the fiscal impact on
Illinois income tax collections of each of the reciprocal agreements by January
1, 1999 and every 5 years thereafter. The Department has the
authority to require that employers provide all information necessary to
complete the study on income tax withholding returns filed with the Department
under Section 704 of the Illinois Income Tax Act. The Department has
the
authority to require that employees provide all information necessary to
complete the study on individual income tax returns filed under Section 502 of
the Illinois Income Tax Act.
(b) Revocation of reciprocal agreements. Upon receipt of the cost study or
at any time thereafter, the General Assembly may adopt a joint resolution by an
affirmative vote of a majority of each house directing the Director of Revenue
to revoke any reciprocal agreement with any other state that results in a loss
of revenue to the State of Illinois. Any joint resolution shall specify the
date upon which the reciprocal agreement is to be revoked. That
date shall be
no sooner than the beginning of the next subsequent calendar year that is at
least 6 months after the adoption of the joint resolution.
(c) Authority to enter into compensation agreements. Before any revocation
by joint resolution adopted by the General Assembly under subsection (b), the
Director of Revenue has the authority to enter into a
compensation or
rebating agreement with any reciprocal state. Any compensation agreement shall
provide that the reciprocal state shall provide a rebate to the State of
Illinois to
compensate for the loss of revenue. The Director has the
authority to enter into agreements with reciprocal states to contract with any
third party mutually agreed to by the Director and the reciprocal state to
establish a rebate or compensation amount.
(Source: P.A. 90-491, eff. 1-1-98;
91-239, eff. 1-1-00.)
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