90th General Assembly
Summary of HB2363
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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      
        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


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