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The Latest Regulatory & Legislative News for Illinois CPAs
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Capitol Dispatch
 
 
Marty Green's Legislative Update
 
 
JUNE RECAP: Transformational Legislation Springs Out of Springfield
 
The Illinois General Assembly adjourned the spring session on June 2 with a long list of transformational legislation passed. The General Assembly cleared 600 bills, with 334 House Bills and 265 Senate Bills passing both Chambers. Included was the passage of SJRCA-1, a ballot question for Illinois voters to amend the Illinois Constitution to move from a flat rate to a graduated rate; cannabis legalization; gaming expansion; legalized sports betting; a $40 billion state operating budget; and a $45 billion capital infrastructure program that includes horizontal road and bridge projects and vertical projects for education. Expanded gambling proceeds, along with a recalibrated tax rate for existing gaming facilities, will help pay for the vertical infrastructure projects. Fee increases in gasoline, vehicle registrations, license plates, and e-cigarettes will pay for the horizontal infrastructure projects.

Despite our concerns and opposition to many bills, the Illinois CPA Society had a pretty good spring session with the successful passage of SB 1806, Local Government Audits, and our negotiated language in SB 1829, Workplace Transparency Act. We were successful in stopping SB 1881, Local Government Recapture (sales tax payments by merchants), SB 1379, Cook County Assessor Data Reporting for Income Producing Property, and HB 2127, State Vendor-Contractor Monitoring Spyware. I am confident that these bills will resurface in the future, and it will be dejavu.

Either for good or for bad, the political gridlock under the Capitol Dome was pierced and the governor has had an impressive first session. The enormity of the topics covered by the expansive numbers of bills passed undoubtedly will impact your practices — and lives — in varying degrees. We have attempted to provide you with resources, like our Special Legislative Report on key legislation that was emailed to each ICPAS member, our post-session Virtual Town Hall Meeting, and our ICPAS Government Relations website. We will continue to keep you informed through Capitol Dispatch and special updates.
 
 
General Bills Tax Bills Public Acts GA Updates
 
 
 
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   TOP LEGISLATION     
 
 
 
FY 2020 State Operating Budget Passed
SB 262 appropriates and authorizes the expenditure of $40 billion for the FY 2020 state operating budget. SB 1814, the Budget Implementation Bill, changes various state laws to reconcile state agency operations reflecting appropriations provided by SB 262. Status: Public Act #101-0007 and Public Act #101-0010.
 
Governor Signs Cannabis Regulation and Tax Act
HB 1438 creates the Cannabis Regulation and Tax Act, making Illinois the 11th state to legalize the recreational use of cannabis. This extensive legislation provides for the comprehensive oversight of the cultivation, distribution, and consumption of recreational cannabis along with extensive tax implications. Local regulation of consumption and local zoning authority to prohibit or opt-out location of cannabis businesses is also authorized along with employer protections for drug-free workplaces. There are also social equity provisions for qualified applicants to access financial assistance and incentives for establishing cannabis-related businesses and decriminalization and expungement provisions. Status: Public Act 101-0027, effective Jan. 1, 2020.
 
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Abandoned Financial Property Rules Modified
The Illinois Treasurer's Office Unclaimed Property Division adopted 74 Ill. Adm. 760 (effective Mar. 25, 2019) implementing the Illinois General Assembly's passage of the Revised Uniform Disposition of Unclaimed Property Act. The Act and corresponding rules reduce the time needed to create a presumption of abandonment from five years to three years. The newly adopted rules also include specifics addressing what actions within an IRA or tax-deferred account would create a presumption of abandonment. New sanctions are included in the rules where a holder has neglected or ignored duties under the Act that range from $500-$1,000 per day in civil penalties.
 
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Charitable Organization Business Income Calculation Amended
SB 1257 amends the Illinois Income Tax Act and makes changes concerning the calculation for base income for an organization that is exempt from the federal income tax. Status: Awaiting governor.
 
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Income Tax Compensation Calculation for Traveling Employees
SB 1515 provides that, for purposes of being liable for income tax, compensation is paid in this state if some of the individual's service is performed within this state, the individual's service performed within this state is nonincidental to the individual's service performed without this state, and the individual's service is performed within this state for more than 30 working days during the tax year. Status: Awaiting governor.
 
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Non-Home Rule Sales Tax Extension Pending
HB 938 allows non-home rule municipalities to continue to use the proceeds of a non-home rule sales tax for expenditure municipal operations until July 1, 2030 versus current law which would eliminate expenditure authority on Dec. 31, 2020. Status: Awaiting governor.
 
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Illinois Income Tax on Gambling Winnings Amended
HB 3590 amends the Illinois Tax Act, providing that winnings from pari-mutuel wagering conducted at a wagering facility licensed under the Illinois Horse Racing Act of 1975, or from winnings from gambling games conducted on a riverboat licensed under the Riverboat Gambling Act, are taxable as income in Illinois for residents and nonresidents. Such winners must withhold Illinois income tax from their winnings, if withholding is required under the provisions of the Internal Revenue Code. Status: Awaiting governor.
 
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Private Sector Sexual Harassment and Discrimination Targeted
SB 75 HA-1 creates the Workplace Transparency Act, which comprehensively addresses sexual harassment and discrimination in the workplace. The legislation prohibits unconscionable employment terms and conditions and unilateral settlement or separation agreements. It also makes conforming changes in the Uniform Arbitration Act to require preemployment agreements that include arbitration to include consideration for the employee and an affirmative acknowledgement by the employee of statutory rights. Beginning July 1, 2020, each employer shall disclose civil rights violations to the Illinois Department of Human Rights. The Act also authorizes the IDHR to notify the IDFPR of civil rights violations for possible suspension, revocation, or non-renewal of professional/occupational licensure. Status: Pending governor. ICPAS Government Relations worked with the State Chamber of Commerce in negotiating final passage. ICPAS was neutral.
 
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Language Requirement for Notary Public Services
HB 2176 requires notaries public to provide a written acknowledgment regarding the scope of services, and specifically disavowal of non-legal services, in English and the language used in the advertisement for notary services. Requires the Office of the Secretary of State to translate an acknowledgment concerning notary services into Spanish and any other language deemed necessary to achieve specified requirements, and to make the translations available on the Secretary of State website. Status: Awaiting governor.
 
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New Whistle Blower Funds Created
HB 2936 creates the State Whistleblower Reward and Protection Fund, the Attorney General Whistleblower Reward and Protection Fund, and the State Police Whistleblower Reward and Protection Fund, along with allocations to each fund from actions or claims from the False Claims Act. A portion of the allocation will be used for Law Enforcement purposes, with the remainder used for payment of awards to Qui Tam plaintiffs. Status: Awaiting governor.
 
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kNOWLEDGEHUB
 
 
 
   KNOWLEDGEHUB    
 
 
KnowledgeHub Resource
 
 
 
Is Your Firm Ready for the Next Decade?
 
It is becoming abundantly clear that clients are more demanding, technology can inspire better ways of working, and core beliefs previously driving the profession should now be re-evaluated.

The Practice of Now 2019 Report includes the findings of independent research commissioned by Sage where 3,000 accountants were surveyed from across the globe.
 
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KnowledgeHub Resource
 
 
 
Your Guide to Accounts Payable Automation
 
The average AP workflow is full of manual, time-consuming, hands-on tasks. Imagine what your finance departments could accomplish with automated AP processes. Get the information you need to experience a smarter, faster way forward.
 
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   NOTABLE NEWS     
 
 
 
SALT Tax Credits and Charitable Contributions Regulations Finalized
The IRS issued final regulations (IR-2019-109) governing state legislation allowing for charitable contribution deductions for the payment of state and local taxes. The 2017 Tax Cuts and Jobs Act capped individual itemized deductions for state and local income taxes, property taxes, and sales taxes at $10,000. Generally, the final regulations require the taxpayer to reduce the federal charitable contribution deduction by the amount of any state or local tax credit that the taxpayer receives or expects to receive in return.
 
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Commission Reports on Illinois' Fiscal Year
The General Assembly's non-partisan Commission on Government Forecasting and Accountability has released its revised FY 2020 Revenue Estimate Report.
 
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   INSIGHT MAGAZINE     
 
 
 
INSIGHT MAGAZINE
 
Peer Review in 2019: What Every CPA Firm Should Know
 
Enhanced oversight is a valuable learning experience for your firm. Here is how to make the most of it.
 
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   eNEWS CENTRAL     
 
 
 
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WHAT'S TRENDING
Password Management Guide for CPAs
This free guide lists the top eight dos and don'ts every CPA should know about creating and managing strong, effective passwords.
 
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