April 30, 2009—Issue 16

Following is information about some bills that may be of interest to TFI members.

SB 1975—REIT Bill

SB 1975, sponsored by Sen. Don Harmon & Rep. John Bradley, is the real estate investment trusts (“REIT”) bill proposed by TFI.  SB 1975 attempts to make definitional changes regarding what constitutes a captive REIT so as not to regard legitimate REITs, in this case certain REITs owned by partnerships and certain foreign entities, as captive REITS, which were the focus of the 2007 tax legislation.  On Thursday, April 30, SB 1975 passed the House Revenue and Finance Committee.  SB 1975 may be accessed at the following link:  click here.

SB 44—Cigarette Tax

SB 44, sponsored by Sen. Jeffrey Schoenberg & Rep. Karen Yarbrough, increases the State’s cigarette tax from 98 cents to $1.98 (an increase of 1 dollar) per pack over a two year period.  The bill directs that the revenue raised by the tax be used as follows:  (1) 0.57% to increase the number of enforcement officers at the Department of Revenue and (2) 99.43% to be placed in a newly created Healthcare Provider Relief Fund to pay Medicaid bills.  On Wednesday, April 29, SB 44 passed the House Human Services Committee on a vote of 04-03-00.  SB 44 may be accessed at the following link:  click here.

SB 2125—Cook County Property Tax Installments

SB 2125, sponsored by Sen. Lou Viverito & House Majority Leader Barbara Flynn Currie, is the product of a Property Tax Advisory Council convened by Mayor Daley last year.  Under SB 2125, beginning in 2010, the first installment of property tax bills in Cook County would be computed at 55% (increased from the current 50%) of the total of each tax bill for the preceding year.  The purpose of the bills is to reduce the pressure when actual tax numbers are calculated and reflected in the second bill.  On April 30, the bill passed the House Revenue and Finance Committee.  The bill is proposed by the City of Chicago and supported by TFI and the Illinois Property Tax Lawyers Association.  SB 2125 may be accessed at the following link:  click here.

SB 1739—Broadcast Sourcing

SB 1739, sponsored by Sen. Jeff Schoenberg, is a broadcast sourcing bill.  SB 1739 may be accessed at the following link: click here.

HB 4445—FY 2010 COLA Prohibition and GA Furlough Days

HB 4445, sponsored by Speaker Michael Madigan, prohibits cost-of-living-adjustments (“COLAs”) for State officials during FY 2010.  Among other things, it also mandates that legislators take unpaid furlough days during FY 2010.  The bill is scheduled to be heard in the House State Government Administration Committee on Wednesday, May 6.  HB 4445 may be accessed at the following link:  click here.

Recently Released Information

The Commission for Government Forecasting and Accountability (“COGFA”) has released the FY 2010 GAAP (Generally Accepted Accounting Principles) Report, which, using a modified accrual basis, shows an estimated FY 2010 ending balance deficit of approximately $14.672 billion.  The report may be accessed at the following link:  click here.