Subject Index Taxation

Illinois requirements for the Form 700 estate tax returns needed for qualified terminable interest property (QTIP) have been updated. Estates claiming a QTIP election must report the total value of property on the estate tax return and produce a detailed schedule of all property and assets subject to the QTIP election.

The Illinois General Assembly amended the Property Tax Code. If a county assessor revises a property tax assessment and that revision is not made on complaint of the property owner, the county assessor shall continue to accept appeals from the taxpayer for a period of not less than 30 business days (formerly 35 business days).

The Illinois General Assembly amended the Department of Revenue Law of the Civil Administrative Code of Illinois. The department may now refuse to issue, reissue, or renew a certificate of registration, permit, or license if an owner, partner, or corporate officer named on the application has failed to file a tax return required under the “tax or fee Act” (sic) requiring the certificate, permit, or license.

The Department of Revenue adopted amendments to the Part titled Income Tax. The Illinois earned income tax credit has been increased to 20 percent of the federal earned income tax credit for each taxable year beginning on or after Jan. 1, 2023.

The Department of Revenue adopted amendments to the Public Utilities Revenue Act. Persons who distribute electricity to consumers are subject to the tax on electricity distribution when they own, lease, or control the facilities used to distribute the electricity.

On July 14, 2023, the Second District of the Illinois Appellate Court held that a voluntary withdrawal of a property tax assessment appeal to the Property Tax Appeal Board (PTAB) renders the claim a legal nullity, and so subsequently filing a tax objection complaint with the circuit court is allowed.

The Property Tax Appeal Board amended the Part titled Practice and Procedure for Appeals Before the Property Tax Appeal Board. The amendment implements an electronic filing portal (EFP), which allows attorneys and unrepresented appellants to file appeals and supporting evidence electronically with the board.

On Dec. 30, 2022, the First District of the Illinois Appellate Court held that a party strictly complied with the statutory notice requirements under the Illinois Property Tax Code.

The Department of Revenue adopted an amendment to the Part titled Retailers’ Occupation Tax. When an employer gives away personal property to an employee, the employer must pay use tax at the rate that would have been imposed at the time the employer acquired the property from the supplier.

The Property Tax Appeal Board adopted an amendment to Practice and Procedure allowing for hearing appeals by video.

On Oct. 21, 2021, the Illinois Supreme Court held that where a tax classification directly bears on a fundamental right, the government must substantially relate the tax classification to the object of the legislation.

The Illinois Department of Revenue adopted amendments to section 100.3120 of the Administrative Code clarifying how income amounts subject to Illinois income tax will be determined for individuals working in other states or whose base of operations is outside of Illinois.

The Illinois General Assembly adopted an amendment to the Property Tax Code, adding to several sections of the Code and creating a new one.

The Illinois General Assembly amended the Property Tax Code to amend application procedures for the senior citizens homestead exemption.

The Department of Revenue adopted amendments to the Part titled Income Tax, combining two separately proposed rulemakings. The amendments update various exemptions and credits to reflect recent various public acts.

Plaintiffs filed suit challenging the constitutionality of Chicago’s amusement tax. In 2015, the city comptroller issued Ruling 5, indicating the existing 9 percent amusement tax on charges paid for the privilege to enter, witness, view, or participate in certain activities in Chicago would also be applied to amusements delivered electronically to a patron in the city.

The Department of Revenue adopted three separately proposed rulemakings to provide guidance on how to correctly determine taxable income in Illinois (86 Ill. Adm. Code 100 (effective Sept. 24, 2018)).

The Property Tax Code is amended to prohibit property tax collectors from publishing delinquent or forfeited property taxes for any property under section 10-35 or for any property that is exempt from taxation under the Property Tax Code.

A new amendment to the Tax Code regarding the Use Tax (86 Ill. Adm. Code 150 (effective July, 27, 2018)) has been adopted by the Department of Revenue.

Amendments were adopted to the Income Tax regulations (86 Ill. Adm. Code 100) (eff. Mar. 21, 2018) implementing Public Act 100-303 and requiring all employers and payroll providers who withhold Illinois income tax for employees to file their W-2 forms and returns for employee withholding taxes either electronically or using the same magnetic media used for their federal income tax filings.

The Department of Revenue adopted an amendment to the Income Tax regulations (86 Ill. Adm. Code 100) (eff. Feb. 28, 2018) creating the Invest in Kids Credit and implementing Public Act 100-465.

The Department of Revenue ("DOR") has adopted amendments to the Retailers' Occupation Tax Act that combine three separately proposed rulemakings and implement various Public Acts.

The Department of Revenue adopted amendments to the Retailers' Occupation Tax Act (86 Ill. Adm. Code 130 (eff. Jan. 1, 2018)) excluding intangible personal property from the scope of the Retailers' Occupation Tax.

The Department of Revenue adopted amendments that codify the amount of the standard personal exemption for taxpayers, the amount of additional exemptions for the blind and elderly, and a cost-of-living adjustment to the standard exemption in future years (86 IAC 100; 41 Ill. Reg. 6436 (eff. Nov. 11, 2017)).