HR0451 99TH GENERAL ASSEMBLY

HR0451 LRB099 12214 GRL 35117 r

HOUSE RESOLUTION

WHEREAS, In today's world, interstate travel has become both easier and more frequent, allowing for a more mobile workforce; and

WHEREAS, Many people are employed in industries that call for frequent travel, causing a more complex and arduous tax system; and

WHEREAS, In response to a multistate survey, 60% of employers indicated that complying with the State income tax withholding and reporting requirements for employees working in multiple states is currently a major issue or a growing concern; and

WHEREAS, It is very difficult to create a system by which an employer can physically identify when and where employees are traveling, in order to determine how much income tax to withhold and report for each state; and

WHEREAS, Only 44% of employers who responded to the survey currently have any mechanism in place to track and tax their employees based on location; and

WHEREAS, The federal government has introduced legislation that would create a federal threshold for nonresident filing for temporary employee work assignments in nonresident states in order to address the complexity of nonresident taxation; and

WHEREAS, The income of Illinois residents who work temporarily out-of-state is frequently taxed by Illinois and the other states in which they work, causing a double taxation of the portion of income earned out-of-state; and

WHEREAS, The State of Illinois only has reciprocal agreements with Iowa, Kentucky, Michigan, and Wisconsin; and

WHEREAS, Discussions have taken place among several groups in order to find a solution to this double taxation; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-NINTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge the Illinois Department of Revenue, the Illinois Chamber of Commerce, the Taxpayers' Federation of Illinois, the Illinois Manufacturers' Association, and the Illinois Retail Merchants Association to collaborate as a group during the summer and fall of 2015 to produce a solution to the current problem of double taxation of Illinois residents; and be it further

RESOLVED, That suitable copies of this resolution be delivered to the Illinois Department of Revenue, the Illinois Chamber of Commerce, the Taxpayers' Federation of Illinois, the Illinois Manufacturers' Association, and the Illinois Retail Merchants Association.