This election cycle, Illinoisans have been presented with the option of amending the state constitution to allow for a graduated income tax. As proposed, the amendment represents a disappointing repeat of Illinois fiscal history. The enacted rate structure is far from best economic practice, the significant shift in the state’s tax code is not part of a comprehensive plan and the proceeds will provide very little assistance, if any, to struggling local governments and pension funds. Accordingly…
UPDATE: On September 21, the Cook County Health (CCH) Board approved by a vote of eight to three an amended FY2021 proposed budget with $40 million of additional County funding, instead of the $53 million in the September 11 version. That amounts to $10 million more than the $30 million increase originally approved by County Board President Toni Preckwinkle’s office, but it is less than the $23 million addition in the CCH Board’s September 11 budget proposal. President Preckwinkle’s office…
Starting July 1, 2020, many Illinois cannabis consumers will see an increase in the taxes they pay on recreational cannabis as the Cannabis Retailers’ Occupation Tax that is allowed to be imposed by counties and municipalities goes into effect. This local option sales tax will be in addition to state excise, general sales and privilege taxes and existing local sales taxes on general merchandise. The state legislation legalizing recreational cannabis, as amended by subsequent trailer bills,[1]…
Revenue estimates presented at the April 29, 2020 meeting of the Cook County Independent Revenue Forecast Commission show the first details on how severe an impact COVID-19 is having on some Cook County tax revenues since Illinois’ stay-at-home order went into effect on March 21. The estimates presented for the month of April 2020 show significant losses in tax revenue related to closures of bars, restaurants and retail, event cancellations and limited travel. The County has estimated that the…
Like most states that levy income taxes, Illinois has followed the federal government in extending the deadline for filing and paying income taxes due for 2019 by three months. The extension—from April 15 to July 15—is intended to provide relief to individuals and businesses hit by the economic fallout from the COVID-19 pandemic, but it is also expected to further strain Illinois’ ability to pay its bills. The Illinois Comptroller’s Office has estimated that more than $1 billion in State…
This blog post presents information about the different types of individual income taxes imposed by state governments in the United States. In 2020 forty-one states levied individual income taxes. States currently use flat rate or graduated rate models for their individual income tax rate structures. Three states use a variation of the graduated income tax structure, employing “recapture” rates that combine both graduated and flat rate features. Every state has numerous exemptions, deductions…
As Illinois voters head to the polls for next week’s Presidential primary, this blog post looks at another major choice that will be on the general election ballot in November: whether to replace the State’s flat-rate income tax with a graduated rate structure. The post reviews the proposed new tax rates and examines who will pay more under the new plan and how much revenue it is expected to raise. Illinois has had a flat rate—currently 4.95% for individuals—since the income tax was instituted…
Illinois Governor JB Pritzker’s second budget proposal avoids many of the pitfalls of his initial budget recommendation. The proposed budget for the fiscal year that begins on July 1, 2020 makes the full pension contribution required by State law and does not depend on one-time revenues that will not be available in future years. Instead, the FY2021 budget relies on revenue that will only be available upon approval of a constitutional amendment in November 2020. If voters reject the shift…
Click here to read the issue brief. SUMMARY This annual report lists and describes selected consumer taxes within the City of Chicago. For ease of use by non-specialists, the taxes in this report are grouped under the following categories: sales taxes, tobacco and nicotine-related taxes, beverage-related taxes, utility-related taxes, accommodations-related taxes, transportation-related taxes and other taxes. It is important to note for tax professionals that the groupings are not related to…
Click here to read the report.
