October 2, 2009—Issue 26

Proposed Franchise Tax Rulemaking Withdrawn

As previously reported, on September 4, the Secretary of State’s Office filed a rulemaking to do three things:  (1) implement a $25 fee per name for a search request of the name of a corporation’s registered agent, president, or secretary; (2) formally adopt franchise tax sourcing rules; and (3) address the paid-in capital ruling in E & E Hauling Inc. v. Ryan, 306 Ill.App.3d 131 (1st Dist. 1999).  The 45 day period to submit comments regarding the proposed rulemaking was scheduled to close on October 19.  However, after hearing from various interested parties, including TFI, the Secretary of State’s Office has decided to withdraw the rulemaking.

HB 4622—Income Tax Amnesty

Rep. Bob Pritchard has filed HB 4622, which would create a temporary income tax amnesty program to fund Monetary Award Program (“MAP”) grants for higher education.  Under the bill, the amnesty program would be for the period of January 1, 2010, through February 15, 2010.  If taxes due after June 20, 2002, and prior to January 1, 2010, are paid during the aforementioned period, the Department of Revenue would be required to abate and not collect any applicable interest or penalties.

Recently Proposed Rulemaking

The Department of Revenue has filed a rulemaking allowing partnerships and S corporations to claim credits against income tax for partners or shareholders who choose to join in a composite return.  The proposed rulemaking can be found at 33 Ill. Reg. 12,662-12,674 (September 18, 2009) and also accessed at electronic pages 33-45 in the following link:  click here.

COGFA Monthly Briefing

The Commission on Government Forecasting and Accountability (“COGFA”) has released its Monthly Briefing for September.  COGFA reports that base revenues were down $340 million for the first quarter of Fiscal Year 2010.  The Monthly Briefing may be accessed at the following link:  click here.

Recently Released Tax Foundation Information

The Tax Foundation recently has released the following documents:

• 2010 State Business Tax Climate Index:  click here  (Illinois’ rank dropped from number 23 for Fiscal Year 2009 to number 30 for FY 2010).

• New Census Data on Property Taxes on Homeowners:  click here  (Illinois ranks number 7 in median real estate taxes paid in 2008).

And Finally . . .

Veto Session is October 14-16 and October 28-30.  After Veto Session, the Senate is next scheduled to convene at noon on Tuesday, January 12, 2010.