General Assembly Approves Omnibus Revenue Package

5/26/2023

Prior to adjournment, the General Assembly sent the Governor an omnibus revenue bill that includes several changes to various tax policies and exemptions. The legislation surfaced as an amendment to SB 1963 (Sen. Gillespie/Rep. Tarver) on Friday, May 19. The bill includes the following provisions:

  • Addresses incentives for mid-range ethanol blends, gasohol, and majority blended ethanol fuel.
  • Adjusts an exemption for materials, parts, equipment, components, and furnishings for aircraft.
  • Broadens the exemption for farm machinery and equipment to include certain electrical power generation equipment.
  • Provides that, with respect to aviation fuel, amounts paid as taxes under those Acts are to be deemed assessed upon the date of receipt of payment.
  • Directs a change in the Hotel Operators’ Occupation Tax. Under the amendment, the tax does not apply to gross rental receipts received from an entity that is organized and operated exclusively by an organization chartered by the U.S. Congress for the purpose of providing disaster relief.
  • Alters the New Markets Development Program Act so as to boost the annual cap on investments and extend the sunset of the Act.
  • Changes the Illinois Municipal Code with regard to municipal tax review of public utilities.
  • Allows for changes to the River Edge Redevelopment Zone Act such that the City of Joliet and the City of Kankakee might be certified for pilots
  • Extends the sunset of the Historic Preservation Tax Credit Act, while also providing for additional credits.
  • Changes the Parking Excise Tax Act regarding booking intermediaries.
  • Adjusts the Illinois Income Tax Act insofar as defining “investment partnerships” and withholding policies for them.
  • Creates a credit for individuals who serve as volunteer emergency workers.
  • Alters the distribution of money collected under (i) the Cigarette Tax Act, (ii) the Cigarette Use Tax Act, and (iii) the tax imposed on little cigars under the Tobacco Products Tax Act of 1995.
  • Amends the Illinois Municipal Code with regard to the Non-Home Rule Municipal Use Tax Act and the Non-Home Rule Municipal Service Occupation Tax Act.
  • Imparts income tax credits to taxpayers who give to a permanent endowment fund (through a newly created “Illinois Gives Tax Credit Act”).

The Governor will next consider the legislation. ISACo did not take a position on the bill.