Illinois State and Local Tax Updates June 2019

Illinois phases out its franchise tax

June 26, 2019

Illinois state law now provides that the franchise tax will be phased out as follows: on or after January 1, 2020, and prior to January 1, 2021, the first $30 in liability is exempt; on or after January 1, 2021, and prior to January 1, 2022, the first $1,000 in liability is exempt; on or after January 1, 2022, and prior to January 1, 2023, the first $10,000 in liability is exempt; and on or after January 1, 2023, and prior to January 1, 2024, the first $100,000 in liability is exempt. The law doesn’t require the payment of any franchise tax that would otherwise have been due on or after January 1, 2024.


Illinois Department of Revenue announces new online portal: MyLocalTax

June 26, 2019

Illinois extends its tax delinquency amnesty program. Effective June 5, 2019, the state’s Tax Delinquency Act has been extended so that the amnesty program will run between October 1, 2019, and November 15, 2019. All taxpayers owing any type of tax after June 30, 2011, and prior to July 1, 2018, will be able to make a payment under the amnesty program, free of applicable interest and penalties. Failure to pay all taxes due to Illinois will invalidate any amnesty granted.


Illinois Department of Revenue announces new online portal: MyLocalTax

June 19, 2019

The Illinois Department of Revenue has announced a new online portal, MyLocalTax. This online tool provides a centralized location for local government officials to access information from the department. The MyLocalTax portal provides monthly access to financial tax allocation information, streamlines the local business tax data verification process, and allows for electronic communication between the agency and locality.

For additional details: https://bit.ly/2KrAF0G

 


Illinois announce final 2018 equalization factor for Cook County

June 19, 2019

The Illinois Department of Revenue has announced the final 2018 equalization factor of 2.9109 for Cook County. It’s required by law to calculate the factor, also known as the multiplier, to achieve uniform property assessment throughout the state. The 2017 final equalization factor was 2.9627. The department determines the final equalization factor for each county by comparing the selling price of individual properties, during a three-year period, with the assessed value placed on those properties by the county assessor and adjusted by the board of review. The three-year average level of assessments (weighted by class) for Cook County property is 11.45%. For more, see https://bit.ly/31aLpqa.

 


Illinois gas tax to double

June 12, 2019

Beginning July 1, 2019, the Illinois gas tax will double. As part of a $45 billion infrastructure bill, the state gas tax will increase to $0.38 per gallon from $0.19 per gallon. The increase will make it the second-highest gas tax in the country, according to 2018 data from the Tax Foundation. The tax will be annually adjusted for inflation.

 


Graduated income tax rate system a possibility for Illinois

June 12, 2019

Governor J. B. Pritzker has signed legislation to implement a graduated income tax rate system — but only if voters approve a state constitutional amendment prior to January 1, 2021. It would remove provisions that a tax on income must be measured at a nongraduated rate, and that at any one time there may not be more than one such tax imposed by the state for state purposes on individuals and one such tax on corporations. The corporate tax rate, beginning January 1, 2021, would increase to 7.99% of a taxpayer’s net income for the taxable year. The highest corporate rate could not exceed the highest rate imposed on individuals by more than an 8:5 ratio. Before January 1, 2021, the rate is 7%.

 


MyTax Illinois: the most efficient method to file returns and supporting schedules

June 5, 2019

The Illinois Department of Revenue reminds taxpayers that using the free online account management program, MyTax Illinois, is the most efficient method to file returns and supporting schedules. The program can also be used to make payments, register a new business, manage tax accounts and view correspondence from the department. If not using MyTax Illinois, taxpayers are encouraged to file electronically through the modernized e-file system (MeF) to result in a faster processing time and quick refund.

Visit MyTaxIllinois here: http://bit.ly/2Z6ZROe

 


Illinois proposes constitutional amendment to provide a graduated income tax

June 5, 2019

If approved by Illinois citizens, the amendment will provide by law for the rate of any tax on, or measured by, income imposed by the state; and, in any such tax imposed on corporations, the highest rate cannot exceed the highest rate imposed on individuals by more than a ratio of 8 to 5. The proposed amendment removes the provisions that provide that a tax on income must be measured at a nongraduated rate, and that at any one time there may be no more than one such tax imposed by the state for state purposes on individuals and one such tax so imposed on corporations.

 

© 2019

Scroll Up