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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB1742
Introduced 2/14/2005, by Rep. Michael J. Madigan - Barbara Flynn Currie - Dan Reitz SYNOPSIS AS INTRODUCED:
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35 ILCS 5/302 |
from Ch. 120, par. 3-302 |
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Amends the Illinois Income Tax Act. Makes a technical change in a Section
concerning income allocation.
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A BILL FOR
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HB1742 |
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LRB094 03241 BDD 33242 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois, |
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| represented in the General Assembly:
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| Section 5. The Illinois Income Tax Act is amended by |
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| changing Section 302 as follows:
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| (35 ILCS 5/302) (from Ch. 120, par. 3-302)
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| Sec. 302. Compensation paid to nonresidents.
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| (a) In general. All items of compensation paid in this |
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| State (as
determined under Section 304(a)(2)(B)) to an |
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| individual who is a
nonresident at the
the time of such payment |
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| and all items of deduction directly
allocable thereto, shall be |
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| allocated to this State. |
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| (b) Reciprocal exemption. The Director may enter into an |
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| agreement with
the taxing authorities of any state which |
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| imposes a tax on or measured by
income to provide that |
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| compensation paid in such state to residents of this
State |
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| shall be exempt from such tax; in such case, any compensation |
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| paid in
this State to residents of such state shall not be |
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| allocated to this State.
All reciprocal agreements shall be |
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| subject to the requirements of Section
2505-575 of the |
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| Department of Revenue Law (20 ILCS
2505/2505-575).
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| (c) Cross references.
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| (1) For allocation of amounts received by
nonresidents |
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| from certain employee trusts, see Section 301(b)(2).
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| (2) For allocation of compensation by residents, see |
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| Section 301(a).
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| (Source: P.A. 90-491, eff. 1-1-98; 91-239, eff. 1-1-00.)
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