State of Illinois
91st General Assembly
Legislation

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91_HB0844

 
                                               LRB9103473PTpk

 1        AN  ACT  to amend the Illinois Income Tax Act by changing
 2    Section 302.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.   The  Illinois  Income Tax Act is amended by
 6    changing Section 302 as follows:

 7        (35 ILCS 5/302) (from Ch. 120, par. 3-302)
 8        Sec. 302. Compensation paid to nonresidents.
 9        (a)  In general. All items of compensation paid  in  this
10    State  (as  determined  under  Section  304(a)(2)(B))  to  an
11    individual  who  is a nonresident at the time of such payment
12    and all items of deduction directly allocable thereto,  shall
13    be allocated to this State.
14        (b)  Reciprocal exemption. The Director may enter into an
15    agreement with the taxing authorities of any state that which
16      imposes  a  tax  on  or  measured by income to provide that
17    compensation paid in such state to residents  of  this  State
18    shall be exempt from such tax; in such case, any compensation
19    paid  in  this  State to residents of such state shall not be
20    allocated to this State. All reciprocal agreements  shall  be
21    subject  to  the  requirements  of Section 39b53 of the Civil
22    Administrative Code of Illinois.
23        (c)  Cross references.
24             (1)  For   allocation   of   amounts   received   by
25        nonresidents from certain employee  trusts,  see  Section
26        301(b)(2).
27             (2)  For  allocation  of  compensation by residents,
28        see Section 301(a).
29    (Source: P.A. 90-491, eff. 1-1-98.)

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