Heyl Royster

Review of New Illinois Laws: Revenue

march 4, 2015

Income Tax. The November election ballots will ask an advisory question whether the Illinois Constitution should be amended to add a 3% tax on incomes over $1 million, with revenue allocated to school districts based on enrollment (H.B. 3816, Madigan-M. Davis-Walsh-Sims— Noland). P.A. 98-794

Sales Tax. To address the federal pre-emption problem found by the Illinois Supreme Court with the so-called "Amazon tax" (which sought to tax sales by out-of-state sellers to which buyers are referred by Illinois entities), it is extended to retailers that promote buying by methods such as promotional codes (added to website links). A retailer using such methods to sell to Illinois buyers will be presumed to have a location in Illinois for purposes of tax collection liability, but that retailers can try to rebut the presumption (S.B. 352, Hutchinson—Currie). P.A. 98-1089

Tax Nonpayment Sanctions. The Secretary of State will suspend or refuse to issue or renew a motor vehicle dealer, transporter, wrecker, or rebuilder license for income, Personal Property Tax Replacement, or employee income tax withholding violations (H.B. 5684, Currie—Harmon). P.A. 98-1080

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