Illinois legislative speed read: Senate fleshes out budget

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The Illinois Senate convened executive hearings this week in the hopes of forging consensus over the bargain package to end the state’s budget impasse, though no votes were taken by the chamber.

The Senate Revenue Committee held a subject matter hearing on SB 9, which received an amendment with a potential additional amendment being introduced later this week Under Senate Amendment No. 1, the new provisions include:

  • Removal of the soda tax and is replaced by the Business Opportunity Tax Act. This tax is a tax imposed on businesses based on the number of Illinois employees of the business.
  • Raises corporate income tax rate to 7% and personal income tax rate to 4.99%.
  • Establishes the following service taxes; storage services, amusements, repair and maintenance services, landscaping services, and laundry and dry-cleaning services.
  • Establish a tax on cable television services and direct broadcast satellite services.
  • Decouples from the Domestic Production Activities Deduction.
  • Eliminates the unitary business noncombination rule.
  • Makes the research and development credit permanent.
  • Redefines manufacturing to include graphic arts production and includes items formerly included in the manufacturers purchase credit in the manufacturing machinery and equipment exemption.
  • Provides that False Claims Act cases may not be brought with respect to any taxes imposed, collected, or administered by the State of Illinois.
  • Repeals the Adult Entertainment Tax effective January 1, 2018.
  • Modifies pollution control facilities valuation under the Property Tax Code.

The Senate Executive Committee held a subject matter hearing on a number of bills in the package, including SB 12, the workers’ compensation proposal. Illinois Chamber and several of other business groups and insurance associations all opposed the bill for various reasons.

HOUSE

The House activity was primarily focused on the passage of the House Rules, which are passed at the beginning of every General Assembly. At this point, no committee assignments have been announced nor committee hearings scheduled.