State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Enrolled ][ House Amendment 001 ]
[ House Amendment 005 ][ Senate Amendment 001 ]

90_HB3811eng

      35 ILCS 200/12-55
          Amends the Property Tax Code.  Makes a  technical  change
      in  the Section concerning notice requirements for assessment
      increases in counties with 3,000,000 or more inhabitants.
                                                     LRB9010584KDgc
HB3811 Engrossed                               LRB9010584KDgc
 1        AN ACT concerning taxation.
 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:
 4        Section  3.   The  Illinois  Income Tax Act is amended by
 5    changing Section 203 as follows:
 6        (35 ILCS 5/203) (from Ch. 120, par. 2-203)
 7        Sec. 203.  Base income defined.
 8        (a)  Individuals.
 9             (1)  In general.  In the case of an individual, base
10        income means an amount equal to the  taxpayer's  adjusted
11        gross   income  for  the  taxable  year  as  modified  by
12        paragraph (2).
13             (2)  Modifications.   The  adjusted   gross   income
14        referred  to in paragraph (1) shall be modified by adding
15        thereto the sum of the following amounts:
16                  (A)  An amount equal to  all  amounts  paid  or
17             accrued  to  the  taxpayer  as interest or dividends
18             during the taxable year to the extent excluded  from
19             gross  income  in  the computation of adjusted gross
20             income, except stock dividends of  qualified  public
21             utilities   described   in  Section  305(e)  of  the
22             Internal Revenue Code;
23                  (B)  An amount  equal  to  the  amount  of  tax
24             imposed  by  this  Act  to  the extent deducted from
25             gross income in the computation  of  adjusted  gross
26             income for the taxable year;
27                  (C)  An  amount  equal  to  the amount received
28             during the taxable year as a recovery or  refund  of
29             real   property  taxes  paid  with  respect  to  the
30             taxpayer's principal residence under the Revenue Act
31             of 1939 and for which  a  deduction  was  previously
HB3811 Engrossed            -2-                LRB9010584KDgc
 1             taken  under  subparagraph (L) of this paragraph (2)
 2             prior to July 1, 1991, the retrospective application
 3             date of Article 4 of Public Act 87-17.  In the  case
 4             of  multi-unit  or  multi-use  structures  and  farm
 5             dwellings,  the  taxes  on  the taxpayer's principal
 6             residence shall be that portion of the  total  taxes
 7             for  the  entire  property  which is attributable to
 8             such principal residence;
 9                  (D)  An amount  equal  to  the  amount  of  the
10             capital  gain deduction allowable under the Internal
11             Revenue Code, to  the  extent  deducted  from  gross
12             income  in the computation of adjusted gross income;
13             and
14                  (D-5)  An amount, to the extent not included in
15             adjusted gross income, equal to the amount of  money
16             withdrawn by the taxpayer in the taxable year from a
17             medical care savings account and the interest earned
18             on  the  account in the taxable year of a withdrawal
19             pursuant to subsection (b)  of  Section  20  of  the
20             Medical Care Savings Account Act;
21        and  by  deducting  from the total so obtained the sum of
22        the following amounts:
23                  (E)  Any  amount  included  in  such  total  in
24             respect  of  any  compensation  (including  but  not
25             limited to any compensation paid  or  accrued  to  a
26             serviceman  while  a  prisoner  of war or missing in
27             action) paid to a resident by  reason  of  being  on
28             active duty in the Armed Forces of the United States
29             and  in  respect of any compensation paid or accrued
30             to a resident who as a governmental employee  was  a
31             prisoner of war or missing in action, and in respect
32             of  any  compensation  paid to a resident in 1971 or
33             thereafter for annual training performed pursuant to
34             Sections 502 and 503, Title 32, United  States  Code
HB3811 Engrossed            -3-                LRB9010584KDgc
 1             as a member of the Illinois National Guard;
 2                  (F)  An amount equal to all amounts included in
 3             such  total  pursuant  to the provisions of Sections
 4             402(a), 402(c), 403(a), 403(b), 406(a), 407(a),  and
 5             408  of  the  Internal  Revenue Code, or included in
 6             such total as distributions under the provisions  of
 7             any  retirement  or disability plan for employees of
 8             any  governmental  agency  or  unit,  or  retirement
 9             payments to retired  partners,  which  payments  are
10             excluded   in   computing  net  earnings  from  self
11             employment by Section 1402 of the  Internal  Revenue
12             Code and regulations adopted pursuant thereto;
13                  (G)  The valuation limitation amount;
14                  (H)  An  amount  equal to the amount of any tax
15             imposed by  this  Act  which  was  refunded  to  the
16             taxpayer  and included in such total for the taxable
17             year;
18                  (I)  An amount equal to all amounts included in
19             such total pursuant to the provisions of Section 111
20             of the Internal Revenue Code as a recovery of  items
21             previously  deducted  from  adjusted gross income in
22             the computation of taxable income;
23                  (J)  An  amount  equal   to   those   dividends
24             included   in  such  total  which  were  paid  by  a
25             corporation which conducts business operations in an
26             Enterprise Zone or zones created under the  Illinois
27             Enterprise  Zone Act, and conducts substantially all
28             of its operations in an Enterprise Zone or zones;
29                  (K)  An  amount  equal   to   those   dividends
30             included   in   such  total  that  were  paid  by  a
31             corporation that conducts business operations  in  a
32             federally  designated Foreign Trade Zone or Sub-Zone
33             and  that  is  designated  a  High  Impact  Business
34             located  in  Illinois;   provided   that   dividends
HB3811 Engrossed            -4-                LRB9010584KDgc
 1             eligible  for the deduction provided in subparagraph
 2             (J) of paragraph (2) of this subsection shall not be
 3             eligible  for  the  deduction  provided  under  this
 4             subparagraph (K);
 5                  (L)  For taxable years  ending  after  December
 6             31,  1983,  an  amount  equal to all social security
 7             benefits and railroad retirement  benefits  included
 8             in  such  total pursuant to Sections 72(r) and 86 of
 9             the Internal Revenue Code;
10                  (M)  With  the   exception   of   any   amounts
11             subtracted  under  subparagraph (N), an amount equal
12             to the sum of all amounts disallowed  as  deductions
13             by  Sections  171(a) (2), and 265(2) of the Internal
14             Revenue Code of 1954, as now or  hereafter  amended,
15             and  all  amounts  of expenses allocable to interest
16             and  disallowed as deductions by Section  265(1)  of
17             the  Internal  Revenue  Code  of  1954,  as  now  or
18             hereafter amended;
19                  (N)  An amount equal to all amounts included in
20             such  total  which  are exempt from taxation by this
21             State  either  by  reason   of   its   statutes   or
22             Constitution  or  by  reason  of  the  Constitution,
23             treaties  or statutes of the United States; provided
24             that, in the case of any statute of this State  that
25             exempts   income   derived   from   bonds  or  other
26             obligations from the tax imposed under this Act, the
27             amount exempted shall be the interest  net  of  bond
28             premium amortization;
29                  (O)  An  amount  equal to any contribution made
30             to a job training project  established  pursuant  to
31             the Tax Increment Allocation Redevelopment Act;
32                  (P)  An  amount  equal  to  the  amount  of the
33             deduction used to compute  the  federal  income  tax
34             credit  for  restoration of substantial amounts held
HB3811 Engrossed            -5-                LRB9010584KDgc
 1             under claim of right for the taxable  year  pursuant
 2             to  Section  1341  of  the  Internal Revenue Code of
 3             1986;
 4                  (Q)  An amount equal to any amounts included in
 5             such  total,  received  by  the   taxpayer   as   an
 6             acceleration  in  the  payment of life, endowment or
 7             annuity benefits in advance of the time  they  would
 8             otherwise  be payable as an indemnity for a terminal
 9             illness;
10                  (R)  An amount  equal  to  the  amount  of  any
11             federal  or  State  bonus  paid  to  veterans of the
12             Persian Gulf War;
13                  (S)  An  amount,  to  the  extent  included  in
14             adjusted gross income, equal  to  the  amount  of  a
15             contribution  made  in the taxable year on behalf of
16             the taxpayer  to  a  medical  care  savings  account
17             established  under  the Medical Care Savings Account
18             Act to the extent the contribution  is  accepted  by
19             the account administrator as provided in that Act;
20                  (T)  An  amount,  to  the  extent  included  in
21             adjusted  gross  income,  equal  to  the  amount  of
22             interest  earned  in  the  taxable year on a medical
23             care savings account established under  the  Medical
24             Care  Savings Account Act on behalf of the taxpayer,
25             other than interest added pursuant to item (D-5)  of
26             this paragraph (2);
27                  (U)  For one taxable year beginning on or after
28             January 1, 1994, an amount equal to the total amount
29             of  tax  imposed  and paid under subsections (a) and
30             (b) of Section 201 of  this  Act  on  grant  amounts
31             received  by  the  taxpayer  under  the Nursing Home
32             Grant Assistance Act during the  taxpayer's  taxable
33             years 1992 and 1993; and
34                  (V)  Beginning  with  tax  years  ending  on or
HB3811 Engrossed            -6-                LRB9010584KDgc
 1             after December 31, 1995 and ending  with  tax  years
 2             ending  on  or  before  December 31, 1999, an amount
 3             equal to the amount paid by  a  taxpayer  who  is  a
 4             self-employed  taxpayer, a partner of a partnership,
 5             or a shareholder in a Subchapter S  corporation  for
 6             health  insurance  or  long-term  care insurance for
 7             that  taxpayer  or   that   taxpayer's   spouse   or
 8             dependents,  to  the extent that the amount paid for
 9             that health insurance or  long-term  care  insurance
10             may  be  deducted  under Section 213 of the Internal
11             Revenue Code of 1986, has not been deducted  on  the
12             federal  income tax return of the taxpayer, and does
13             not exceed the taxable income attributable  to  that
14             taxpayer's   income,   self-employment   income,  or
15             Subchapter S  corporation  income;  except  that  no
16             deduction  shall  be  allowed under this item (V) if
17             the taxpayer  is  eligible  to  participate  in  any
18             health insurance or long-term care insurance plan of
19             an  employer  of  the  taxpayer  or  the  taxpayer's
20             spouse.   The  amount  of  the  health insurance and
21             long-term care insurance subtracted under this  item
22             (V)  shall be determined by multiplying total health
23             insurance and long-term care insurance premiums paid
24             by the taxpayer times a number that  represents  the
25             fractional  percentage  of eligible medical expenses
26             under Section 213 of the Internal  Revenue  Code  of
27             1986 not actually deducted on the taxpayer's federal
28             income tax return; and.
29                  (W)  For  taxable  years  beginning on or after
30             January  1,  1998,  all  amounts  included  in   the
31             taxpayer's  federal gross income in the taxable year
32             from amounts converted from a regular IRA to a  Roth
33             IRA. This paragraph is exempt from the provisions of
34             Section 250.
HB3811 Engrossed            -7-                LRB9010584KDgc
 1        (b)  Corporations.
 2             (1)  In general.  In the case of a corporation, base
 3        income  means  an  amount equal to the taxpayer's taxable
 4        income for the taxable year as modified by paragraph (2).
 5             (2)  Modifications.  The taxable income referred  to
 6        in  paragraph (1) shall be modified by adding thereto the
 7        sum of the following amounts:
 8                  (A)  An amount equal to  all  amounts  paid  or
 9             accrued   to   the  taxpayer  as  interest  and  all
10             distributions  received  from  regulated  investment
11             companies during the  taxable  year  to  the  extent
12             excluded  from  gross  income  in the computation of
13             taxable income;
14                  (B)  An amount  equal  to  the  amount  of  tax
15             imposed  by  this  Act  to  the extent deducted from
16             gross income in the computation  of  taxable  income
17             for the taxable year;
18                  (C)  In  the  case  of  a  regulated investment
19             company, an amount equal to the excess  of  (i)  the
20             net  long-term  capital  gain  for the taxable year,
21             over (ii) the amount of the capital  gain  dividends
22             designated   as  such  in  accordance  with  Section
23             852(b)(3)(C) of the Internal Revenue  Code  and  any
24             amount  designated under Section 852(b)(3)(D) of the
25             Internal Revenue Code, attributable to  the  taxable
26             year.
27        This  amendatory  Act  of 1995 is declarative of existing
28    law and is not a new enactment.
29                  (D)  The  amount  of  any  net  operating  loss
30             deduction taken in arriving at taxable income, other
31             than a net operating loss  carried  forward  from  a
32             taxable year ending prior to December 31, 1986; and
33                  (E)  For taxable years in which a net operating
34             loss  carryback  or carryforward from a taxable year
HB3811 Engrossed            -8-                LRB9010584KDgc
 1             ending prior to December 31, 1986 is an  element  of
 2             taxable income under paragraph (1) of subsection (e)
 3             or  subparagraph  (E) of paragraph (2) of subsection
 4             (e), the  amount  by  which  addition  modifications
 5             other  than  those provided by this subparagraph (E)
 6             exceeded subtraction modifications in  such  earlier
 7             taxable year, with the following limitations applied
 8             in the order that they are listed:
 9                       (i)  the addition modification relating to
10                  the  net operating loss carried back or forward
11                  to the  taxable  year  from  any  taxable  year
12                  ending  prior  to  December  31,  1986 shall be
13                  reduced by the amount of addition  modification
14                  under  this  subparagraph  (E) which related to
15                  that net operating loss  and  which  was  taken
16                  into  account in calculating the base income of
17                  an earlier taxable year, and
18                       (ii)  the addition  modification  relating
19                  to  the  net  operating  loss  carried  back or
20                  forward to the taxable year  from  any  taxable
21                  year  ending  prior  to December 31, 1986 shall
22                  not exceed the  amount  of  such  carryback  or
23                  carryforward;
24                  For  taxable  years  in  which  there  is a net
25             operating loss carryback or carryforward  from  more
26             than one other taxable year ending prior to December
27             31, 1986, the addition modification provided in this
28             subparagraph  (E)  shall  be  the sum of the amounts
29             computed   independently   under    the    preceding
30             provisions  of  this  subparagraph (E) for each such
31             taxable year,
32        and by deducting from the total so obtained  the  sum  of
33        the following amounts:
34                  (F)  An  amount  equal to the amount of any tax
HB3811 Engrossed            -9-                LRB9010584KDgc
 1             imposed by  this  Act  which  was  refunded  to  the
 2             taxpayer  and included in such total for the taxable
 3             year;
 4                  (G)  An amount equal to any amount included  in
 5             such  total under Section 78 of the Internal Revenue
 6             Code;
 7                  (H)  In the  case  of  a  regulated  investment
 8             company,  an  amount  equal  to the amount of exempt
 9             interest dividends as defined in subsection (b)  (5)
10             of Section 852 of the Internal Revenue Code, paid to
11             shareholders for the taxable year;
12                  (I)  With   the   exception   of   any  amounts
13             subtracted under subparagraph (J), an  amount  equal
14             to  the  sum of all amounts disallowed as deductions
15             by Sections 171(a) (2), and  265(a)(2)  and  amounts
16             disallowed  as interest expense by Section 291(a)(3)
17             of the Internal Revenue Code, as  now  or  hereafter
18             amended,  and  all  amounts of expenses allocable to
19             interest and disallowed  as  deductions  by  Section
20             265(a)(1)  of  the  Internal Revenue Code, as now or
21             hereafter amended;
22                  (J)  An amount equal to all amounts included in
23             such total which are exempt from  taxation  by  this
24             State   either   by   reason   of  its  statutes  or
25             Constitution  or  by  reason  of  the  Constitution,
26             treaties or statutes of the United States;  provided
27             that,  in the case of any statute of this State that
28             exempts  income  derived   from   bonds   or   other
29             obligations from the tax imposed under this Act, the
30             amount  exempted  shall  be the interest net of bond
31             premium amortization;
32                  (K)  An  amount  equal   to   those   dividends
33             included   in  such  total  which  were  paid  by  a
34             corporation which conducts business operations in an
HB3811 Engrossed            -10-               LRB9010584KDgc
 1             Enterprise Zone or zones created under the  Illinois
 2             Enterprise  Zone  Act and conducts substantially all
 3             of its operations in an Enterprise Zone or zones;
 4                  (L)  An  amount  equal   to   those   dividends
 5             included   in   such  total  that  were  paid  by  a
 6             corporation that conducts business operations  in  a
 7             federally  designated Foreign Trade Zone or Sub-Zone
 8             and  that  is  designated  a  High  Impact  Business
 9             located  in  Illinois;   provided   that   dividends
10             eligible  for the deduction provided in subparagraph
11             (K) of paragraph 2 of this subsection shall  not  be
12             eligible  for  the  deduction  provided  under  this
13             subparagraph (L);
14                  (M)  For  any  taxpayer  that  is  a  financial
15             organization within the meaning of Section 304(c) of
16             this  Act,  an  amount  included  in  such  total as
17             interest income from a loan or loans  made  by  such
18             taxpayer  to  a  borrower, to the extent that such a
19             loan is secured by property which  is  eligible  for
20             the  Enterprise Zone Investment Credit. To determine
21             the portion of a loan or loans that  is  secured  by
22             property  eligible  for  a Section 201(h) investment
23             credit to the borrower, the entire principal  amount
24             of  the  loan  or loans between the taxpayer and the
25             borrower should be divided into  the  basis  of  the
26             Section  201(h)  investment  credit  property  which
27             secures  the  loan  or loans, using for this purpose
28             the original basis of such property on the date that
29             it was placed in service  in  the  Enterprise  Zone.
30             The  subtraction  modification available to taxpayer
31             in any year under  this  subsection  shall  be  that
32             portion  of  the total interest paid by the borrower
33             with  respect  to  such  loan  attributable  to  the
34             eligible property as calculated under  the  previous
HB3811 Engrossed            -11-               LRB9010584KDgc
 1             sentence;
 2                  (M-1)  For  any  taxpayer  that  is a financial
 3             organization within the meaning of Section 304(c) of
 4             this Act,  an  amount  included  in  such  total  as
 5             interest  income  from  a loan or loans made by such
 6             taxpayer to a borrower, to the extent  that  such  a
 7             loan  is  secured  by property which is eligible for
 8             the High  Impact  Business  Investment  Credit.   To
 9             determine  the  portion  of  a loan or loans that is
10             secured by property eligible for  a  Section  201(i)
11             investment   credit  to  the  borrower,  the  entire
12             principal amount of the loan or  loans  between  the
13             taxpayer and the borrower should be divided into the
14             basis   of  the  Section  201(i)  investment  credit
15             property which secures the loan or loans, using  for
16             this  purpose the original basis of such property on
17             the  date  that  it  was  placed  in  service  in  a
18             federally designated Foreign Trade Zone or  Sub-Zone
19             located  in  Illinois.  No taxpayer that is eligible
20             for the deduction provided in  subparagraph  (M)  of
21             paragraph  (2)  of this subsection shall be eligible
22             for the deduction provided under  this  subparagraph
23             (M-1).   The  subtraction  modification available to
24             taxpayers in any year under this subsection shall be
25             that portion of  the  total  interest  paid  by  the
26             borrower  with  respect to such loan attributable to
27             the  eligible  property  as  calculated  under   the
28             previous sentence;
29                  (N)  Two times any contribution made during the
30             taxable  year  to  a designated zone organization to
31             the extent that the contribution (i) qualifies as  a
32             charitable  contribution  under  subsection  (c)  of
33             Section  170  of  the Internal Revenue Code and (ii)
34             must, by its terms, be used for a  project  approved
HB3811 Engrossed            -12-               LRB9010584KDgc
 1             by  the Department of Commerce and Community Affairs
 2             under Section 11 of  the  Illinois  Enterprise  Zone
 3             Act;
 4                  (O)  An  amount  equal  to: (i) 85% for taxable
 5             years ending on or before December 31, 1992,  or,  a
 6             percentage  equal  to the percentage allowable under
 7             Section 243(a)(1) of the Internal  Revenue  Code  of
 8             1986  for  taxable  years  ending after December 31,
 9             1992, of the amount by which dividends  included  in
10             taxable  income and received from a corporation that
11             is not created or organized under the  laws  of  the
12             United  States or any state or political subdivision
13             thereof, including, for taxable years ending  on  or
14             after  December  31,  1988,  dividends  received  or
15             deemed   received  or  paid  or  deemed  paid  under
16             Sections 951 through 964  of  the  Internal  Revenue
17             Code, exceed the amount of the modification provided
18             under  subparagraph  (G)  of  paragraph  (2) of this
19             subsection (b) which is related to  such  dividends;
20             plus  (ii)  100%  of  the amount by which dividends,
21             included in taxable income and received,  including,
22             for  taxable  years  ending on or after December 31,
23             1988, dividends received or deemed received or  paid
24             or deemed paid under Sections 951 through 964 of the
25             Internal  Revenue  Code,  from  any such corporation
26             specified in clause  (i)  that  would  but  for  the
27             provisions  of  Section 1504 (b) (3) of the Internal
28             Revenue  Code  be  treated  as  a  member   of   the
29             affiliated   group   which   includes  the  dividend
30             recipient, exceed the  amount  of  the  modification
31             provided  under subparagraph (G) of paragraph (2) of
32             this  subsection  (b)  which  is  related  to   such
33             dividends;
34                  (P)  An  amount  equal to any contribution made
HB3811 Engrossed            -13-               LRB9010584KDgc
 1             to a job training project  established  pursuant  to
 2             the Tax Increment Allocation Redevelopment Act; and
 3                  (Q)  An  amount  equal  to  the  amount  of the
 4             deduction used to compute  the  federal  income  tax
 5             credit  for  restoration of substantial amounts held
 6             under claim of right for the taxable  year  pursuant
 7             to  Section  1341  of  the  Internal Revenue Code of
 8             1986.
 9             (3)  Special rule.  For purposes  of  paragraph  (2)
10        (A),  "gross  income"  in  the  case  of a life insurance
11        company, for tax years ending on and after  December  31,
12        1994,  shall  mean  the  gross  investment income for the
13        taxable year.
14        (c)  Trusts and estates.
15             (1)  In general.  In the case of a trust or  estate,
16        base  income  means  an  amount  equal  to the taxpayer's
17        taxable income  for  the  taxable  year  as  modified  by
18        paragraph (2).
19             (2)  Modifications.   Subject  to  the provisions of
20        paragraph  (3),  the  taxable  income  referred   to   in
21        paragraph (1) shall be modified by adding thereto the sum
22        of the following amounts:
23                  (A)  An  amount  equal  to  all amounts paid or
24             accrued to the taxpayer  as  interest  or  dividends
25             during  the taxable year to the extent excluded from
26             gross income in the computation of taxable income;
27                  (B)  In the case of (i) an estate, $600; (ii) a
28             trust which,  under  its  governing  instrument,  is
29             required  to distribute all of its income currently,
30             $300; and (iii) any other trust, $100, but  in  each
31             such  case,  only  to  the  extent  such  amount was
32             deducted in the computation of taxable income;
33                  (C)  An amount  equal  to  the  amount  of  tax
34             imposed  by  this  Act  to  the extent deducted from
HB3811 Engrossed            -14-               LRB9010584KDgc
 1             gross income in the computation  of  taxable  income
 2             for the taxable year;
 3                  (D)  The  amount  of  any  net  operating  loss
 4             deduction taken in arriving at taxable income, other
 5             than  a  net  operating  loss carried forward from a
 6             taxable year ending prior to December 31, 1986;
 7                  (E)  For taxable years in which a net operating
 8             loss carryback or carryforward from a  taxable  year
 9             ending  prior  to December 31, 1986 is an element of
10             taxable income under paragraph (1) of subsection (e)
11             or subparagraph (E) of paragraph (2)  of  subsection
12             (e),  the  amount  by  which  addition modifications
13             other than those provided by this  subparagraph  (E)
14             exceeded  subtraction  modifications in such taxable
15             year, with the following limitations applied in  the
16             order that they are listed:
17                       (i)  the addition modification relating to
18                  the  net operating loss carried back or forward
19                  to the  taxable  year  from  any  taxable  year
20                  ending  prior  to  December  31,  1986 shall be
21                  reduced by the amount of addition  modification
22                  under  this  subparagraph  (E) which related to
23                  that net operating loss  and  which  was  taken
24                  into  account in calculating the base income of
25                  an earlier taxable year, and
26                       (ii)  the addition  modification  relating
27                  to  the  net  operating  loss  carried  back or
28                  forward to the taxable year  from  any  taxable
29                  year  ending  prior  to December 31, 1986 shall
30                  not exceed the  amount  of  such  carryback  or
31                  carryforward;
32                  For  taxable  years  in  which  there  is a net
33             operating loss carryback or carryforward  from  more
34             than one other taxable year ending prior to December
HB3811 Engrossed            -15-               LRB9010584KDgc
 1             31, 1986, the addition modification provided in this
 2             subparagraph  (E)  shall  be  the sum of the amounts
 3             computed   independently   under    the    preceding
 4             provisions  of  this  subparagraph (E) for each such
 5             taxable year;
 6                  (F)  For  taxable  years  ending  on  or  after
 7             January 1, 1989, an amount equal to the tax deducted
 8             pursuant to Section 164 of the Internal Revenue Code
 9             if the trust or estate is claiming the same tax  for
10             purposes  of  the  Illinois foreign tax credit under
11             Section 601 of this Act; and
12                  (G)  An amount  equal  to  the  amount  of  the
13             capital  gain deduction allowable under the Internal
14             Revenue Code, to  the  extent  deducted  from  gross
15             income in the computation of taxable income;
16        and  by  deducting  from the total so obtained the sum of
17        the following amounts:
18                  (H)  An amount equal to all amounts included in
19             such total pursuant to the  provisions  of  Sections
20             402(a),  402(c),  403(a), 403(b), 406(a), 407(a) and
21             408 of the Internal Revenue Code or included in such
22             total as distributions under the provisions  of  any
23             retirement  or  disability plan for employees of any
24             governmental agency or unit, or retirement  payments
25             to  retired partners, which payments are excluded in
26             computing  net  earnings  from  self  employment  by
27             Section  1402  of  the  Internal  Revenue  Code  and
28             regulations adopted pursuant thereto;
29                  (I)  The valuation limitation amount;
30                  (J)  An amount equal to the amount of  any  tax
31             imposed  by  this  Act  which  was  refunded  to the
32             taxpayer and included in such total for the  taxable
33             year;
34                  (K)  An amount equal to all amounts included in
HB3811 Engrossed            -16-               LRB9010584KDgc
 1             taxable  income  as  modified  by subparagraphs (A),
 2             (B), (C), (D), (E), (F) and  (G)  which  are  exempt
 3             from  taxation by this State either by reason of its
 4             statutes  or  Constitution  or  by  reason  of   the
 5             Constitution,  treaties  or  statutes  of the United
 6             States; provided that, in the case of any statute of
 7             this State that exempts income derived from bonds or
 8             other obligations from the tax  imposed  under  this
 9             Act,  the  amount exempted shall be the interest net
10             of bond premium amortization;
11                  (L)  With  the   exception   of   any   amounts
12             subtracted  under  subparagraph (K), an amount equal
13             to the sum of all amounts disallowed  as  deductions
14             by Sections 171(a) (2) and 265(a)(2) of the Internal
15             Revenue  Code,  as now or hereafter amended, and all
16             amounts  of  expenses  allocable  to  interest   and
17             disallowed  as  deductions  by Section 265(1) of the
18             Internal Revenue Code of 1954, as now  or  hereafter
19             amended;
20                  (M)  An   amount   equal   to  those  dividends
21             included  in  such  total  which  were  paid  by   a
22             corporation which conducts business operations in an
23             Enterprise  Zone or zones created under the Illinois
24             Enterprise Zone Act and conducts  substantially  all
25             of its operations in an Enterprise Zone or Zones;
26                  (N)  An  amount  equal to any contribution made
27             to a job training project  established  pursuant  to
28             the Tax Increment Allocation Redevelopment Act;
29                  (O)  An   amount   equal   to  those  dividends
30             included  in  such  total  that  were  paid   by   a
31             corporation  that  conducts business operations in a
32             federally designated Foreign Trade Zone or  Sub-Zone
33             and  that  is  designated  a  High  Impact  Business
34             located   in   Illinois;   provided  that  dividends
HB3811 Engrossed            -17-               LRB9010584KDgc
 1             eligible for the deduction provided in  subparagraph
 2             (M) of paragraph (2) of this subsection shall not be
 3             eligible  for  the  deduction  provided  under  this
 4             subparagraph (O); and
 5                  (P)  An  amount  equal  to  the  amount  of the
 6             deduction used to compute  the  federal  income  tax
 7             credit  for  restoration of substantial amounts held
 8             under claim of right for the taxable  year  pursuant
 9             to  Section  1341  of  the  Internal Revenue Code of
10             1986.
11             (3)  Limitation.  The  amount  of  any  modification
12        otherwise  required  under  this  subsection shall, under
13        regulations prescribed by the Department, be adjusted  by
14        any  amounts  included  therein which were properly paid,
15        credited, or required to be distributed,  or  permanently
16        set  aside  for charitable purposes pursuant  to Internal
17        Revenue Code Section 642(c) during the taxable year.
18        (d)  Partnerships.
19             (1)  In general. In the case of a partnership,  base
20        income  means  an  amount equal to the taxpayer's taxable
21        income for the taxable year as modified by paragraph (2).
22             (2)  Modifications. The taxable income  referred  to
23        in  paragraph (1) shall be modified by adding thereto the
24        sum of the following amounts:
25                  (A)  An amount equal to  all  amounts  paid  or
26             accrued  to  the  taxpayer  as interest or dividends
27             during the taxable year to the extent excluded  from
28             gross income in the computation of taxable income;
29                  (B)  An  amount  equal  to  the  amount  of tax
30             imposed by this Act  to  the  extent  deducted  from
31             gross income for the taxable year; and
32                  (C)  The  amount  of  deductions allowed to the
33             partnership pursuant  to  Section  707  (c)  of  the
34             Internal  Revenue  Code  in  calculating its taxable
HB3811 Engrossed            -18-               LRB9010584KDgc
 1             income;
 2                  (D)  An amount  equal  to  the  amount  of  the
 3             capital  gain deduction allowable under the Internal
 4             Revenue Code, to  the  extent  deducted  from  gross
 5             income in the computation of taxable income;
 6        and by deducting from the total so obtained the following
 7        amounts:
 8                  (E)  The valuation limitation amount;
 9                  (F)  An  amount  equal to the amount of any tax
10             imposed by  this  Act  which  was  refunded  to  the
11             taxpayer  and included in such total for the taxable
12             year;
13                  (G)  An amount equal to all amounts included in
14             taxable income as  modified  by  subparagraphs  (A),
15             (B),  (C)  and (D) which are exempt from taxation by
16             this State either  by  reason  of  its  statutes  or
17             Constitution  or  by  reason  of  the  Constitution,
18             treaties  or statutes of the United States; provided
19             that, in the case of any statute of this State  that
20             exempts   income   derived   from   bonds  or  other
21             obligations from the tax imposed under this Act, the
22             amount exempted shall be the interest  net  of  bond
23             premium amortization;
24                  (H)  Any   income   of  the  partnership  which
25             constitutes personal service income  as  defined  in
26             Section  1348  (b)  (1) of the Internal Revenue Code
27             (as in effect December 31,  1981)  or  a  reasonable
28             allowance  for  compensation  paid  or  accrued  for
29             services  rendered  by  partners to the partnership,
30             whichever is greater;
31                  (I)  An amount equal to all amounts  of  income
32             distributable  to  an entity subject to the Personal
33             Property  Tax  Replacement  Income  Tax  imposed  by
34             subsections (c) and (d) of Section 201 of  this  Act
HB3811 Engrossed            -19-               LRB9010584KDgc
 1             including  amounts  distributable  to  organizations
 2             exempt  from federal income tax by reason of Section
 3             501(a) of the Internal Revenue Code;
 4                  (J)  With  the   exception   of   any   amounts
 5             subtracted  under  subparagraph (G), an amount equal
 6             to the sum of all amounts disallowed  as  deductions
 7             by  Sections  171(a) (2), and 265(2) of the Internal
 8             Revenue Code of 1954, as now or  hereafter  amended,
 9             and  all  amounts  of expenses allocable to interest
10             and disallowed as deductions by  Section  265(1)  of
11             the  Internal  Revenue  Code,  as  now  or hereafter
12             amended;
13                  (K)  An  amount  equal   to   those   dividends
14             included   in  such  total  which  were  paid  by  a
15             corporation which conducts business operations in an
16             Enterprise Zone or zones created under the  Illinois
17             Enterprise  Zone  Act,  enacted  by the 82nd General
18             Assembly, and which does not conduct such operations
19             other than in an Enterprise Zone or Zones;
20                  (L)  An amount equal to any  contribution  made
21             to  a  job  training project established pursuant to
22             the   Real   Property   Tax   Increment   Allocation
23             Redevelopment Act;
24                  (M)  An  amount  equal   to   those   dividends
25             included   in   such  total  that  were  paid  by  a
26             corporation that conducts business operations  in  a
27             federally  designated Foreign Trade Zone or Sub-Zone
28             and  that  is  designated  a  High  Impact  Business
29             located  in  Illinois;   provided   that   dividends
30             eligible  for the deduction provided in subparagraph
31             (K) of paragraph (2) of this subsection shall not be
32             eligible  for  the  deduction  provided  under  this
33             subparagraph (M); and
34                  (N)  An amount  equal  to  the  amount  of  the
HB3811 Engrossed            -20-               LRB9010584KDgc
 1             deduction  used  to  compute  the federal income tax
 2             credit for restoration of substantial  amounts  held
 3             under  claim  of right for the taxable year pursuant
 4             to Section 1341 of  the  Internal  Revenue  Code  of
 5             1986.
 6        (e)  Gross income; adjusted gross income; taxable income.
 7             (1)  In  general.   Subject  to  the  provisions  of
 8        paragraph  (2)  and  subsection  (b) (3), for purposes of
 9        this Section  and  Section  803(e),  a  taxpayer's  gross
10        income,  adjusted gross income, or taxable income for the
11        taxable year shall  mean  the  amount  of  gross  income,
12        adjusted   gross   income   or  taxable  income  properly
13        reportable  for  federal  income  tax  purposes  for  the
14        taxable year under the provisions of the Internal Revenue
15        Code. Taxable income may be less than zero. However,  for
16        taxable  years  ending on or after December 31, 1986, net
17        operating loss carryforwards from  taxable  years  ending
18        prior  to  December  31,  1986, may not exceed the sum of
19        federal taxable income for the taxable  year  before  net
20        operating  loss  deduction,  plus  the excess of addition
21        modifications  over  subtraction  modifications  for  the
22        taxable year.  For taxable years ending prior to December
23        31, 1986, taxable income may never be an amount in excess
24        of the net operating loss for the taxable year as defined
25        in subsections (c) and (d) of Section 172 of the Internal
26        Revenue Code, provided that  when  taxable  income  of  a
27        corporation  (other  than  a  Subchapter  S corporation),
28        trust,  or  estate  is  less  than  zero   and   addition
29        modifications,  other than those provided by subparagraph
30        (E) of paragraph (2) of subsection (b)  for  corporations
31        or  subparagraph  (E)  of paragraph (2) of subsection (c)
32        for trusts and estates, exceed subtraction modifications,
33        an  addition  modification  must  be  made  under   those
34        subparagraphs  for  any  other  taxable year to which the
HB3811 Engrossed            -21-               LRB9010584KDgc
 1        taxable income less than zero  (net  operating  loss)  is
 2        applied under Section 172 of the Internal Revenue Code or
 3        under   subparagraph   (E)   of  paragraph  (2)  of  this
 4        subsection (e) applied in conjunction with Section 172 of
 5        the Internal Revenue Code.
 6             (2)  Special rule.  For purposes of paragraph (1) of
 7        this subsection, the taxable income  properly  reportable
 8        for federal income tax purposes shall mean:
 9                  (A)  Certain  life insurance companies.  In the
10             case of a life insurance company subject to the  tax
11             imposed by Section 801 of the Internal Revenue Code,
12             life  insurance  company  taxable  income,  plus the
13             amount of distribution  from  pre-1984  policyholder
14             surplus accounts as calculated under Section 815a of
15             the Internal Revenue Code;
16                  (B)  Certain other insurance companies.  In the
17             case  of  mutual  insurance companies subject to the
18             tax imposed by Section 831 of the  Internal  Revenue
19             Code, insurance company taxable income;
20                  (C)  Regulated  investment  companies.   In the
21             case of a regulated investment  company  subject  to
22             the  tax  imposed  by  Section  852  of the Internal
23             Revenue Code, investment company taxable income;
24                  (D)  Real estate  investment  trusts.   In  the
25             case  of  a  real estate investment trust subject to
26             the tax imposed  by  Section  857  of  the  Internal
27             Revenue  Code,  real estate investment trust taxable
28             income;
29                  (E)  Consolidated corporations.  In the case of
30             a corporation which is a  member  of  an  affiliated
31             group  of  corporations filing a consolidated income
32             tax return for the taxable year for  federal  income
33             tax  purposes,  taxable income determined as if such
34             corporation had filed a separate return for  federal
HB3811 Engrossed            -22-               LRB9010584KDgc
 1             income  tax  purposes  for the taxable year and each
 2             preceding taxable year for which it was a member  of
 3             an   affiliated   group.   For   purposes   of  this
 4             subparagraph, the taxpayer's separate taxable income
 5             shall be determined as if the election  provided  by
 6             Section  243(b) (2) of the Internal Revenue Code had
 7             been in effect for all such years;
 8                  (F)  Cooperatives.    In   the   case   of    a
 9             cooperative  corporation or association, the taxable
10             income of such organization determined in accordance
11             with the provisions of Section 1381 through 1388  of
12             the Internal Revenue Code;
13                  (G)  Subchapter  S  corporations.   In the case
14             of: (i) a Subchapter S corporation for  which  there
15             is  in effect an election for the taxable year under
16             Section 1362  of  the  Internal  Revenue  Code,  the
17             taxable  income  of  such  corporation determined in
18             accordance with  Section  1363(b)  of  the  Internal
19             Revenue  Code, except that taxable income shall take
20             into account  those  items  which  are  required  by
21             Section  1363(b)(1)  of the Internal Revenue Code to
22             be  separately  stated;  and  (ii)  a  Subchapter  S
23             corporation for which there is in effect  a  federal
24             election  to  opt  out  of  the  provisions  of  the
25             Subchapter  S  Revision Act of 1982 and have applied
26             instead the prior federal Subchapter S rules  as  in
27             effect  on  July 1, 1982, the taxable income of such
28             corporation  determined  in  accordance   with   the
29             federal  Subchapter  S rules as in effect on July 1,
30             1982; and
31                  (H)  Partnerships.    In   the   case   of    a
32             partnership, taxable income determined in accordance
33             with  Section  703  of  the  Internal  Revenue Code,
34             except that taxable income shall take  into  account
HB3811 Engrossed            -23-               LRB9010584KDgc
 1             those  items which are required by Section 703(a)(1)
 2             to be separately stated but  which  would  be  taken
 3             into  account  by  an  individual in calculating his
 4             taxable income.
 5        (f)  Valuation limitation amount.
 6             (1)  In general.  The  valuation  limitation  amount
 7        referred  to  in subsections (a) (2) (G), (c) (2) (I) and
 8        (d)(2) (E) is an amount equal to:
 9                  (A)  The  sum  of  the   pre-August   1,   1969
10             appreciation  amounts  (to  the extent consisting of
11             gain reportable under the provisions of Section 1245
12             or 1250  of  the  Internal  Revenue  Code)  for  all
13             property  in respect of which such gain was reported
14             for the taxable year; plus
15                  (B)  The  lesser  of  (i)  the   sum   of   the
16             pre-August  1,  1969  appreciation  amounts  (to the
17             extent consisting of capital gain) for all  property
18             in  respect  of  which  such  gain  was reported for
19             federal income tax purposes for the taxable year, or
20             (ii) the net capital  gain  for  the  taxable  year,
21             reduced  in  either  case by any amount of such gain
22             included in the amount determined  under  subsection
23             (a) (2) (F) or (c) (2) (H).
24             (2)  Pre-August 1, 1969 appreciation amount.
25                  (A)  If  the  fair  market  value  of  property
26             referred   to   in   paragraph   (1)   was   readily
27             ascertainable  on  August 1, 1969, the pre-August 1,
28             1969 appreciation amount for such  property  is  the
29             lesser  of  (i) the excess of such fair market value
30             over the taxpayer's basis (for determining gain) for
31             such property on that  date  (determined  under  the
32             Internal Revenue Code as in effect on that date), or
33             (ii)  the  total  gain  realized  and reportable for
34             federal income tax purposes in respect of the  sale,
HB3811 Engrossed            -24-               LRB9010584KDgc
 1             exchange or other disposition of such property.
 2                  (B)  If  the  fair  market  value  of  property
 3             referred   to  in  paragraph  (1)  was  not  readily
 4             ascertainable on August 1, 1969, the  pre-August  1,
 5             1969  appreciation  amount for such property is that
 6             amount which bears the same ratio to the total  gain
 7             reported  in  respect  of  the  property for federal
 8             income tax purposes for the  taxable  year,  as  the
 9             number  of  full calendar months in that part of the
10             taxpayer's holding period for  the  property  ending
11             July  31,  1969 bears to the number of full calendar
12             months in the taxpayer's entire holding  period  for
13             the property.
14                  (C)  The   Department   shall   prescribe  such
15             regulations as may be necessary  to  carry  out  the
16             purposes of this paragraph.
17        (g)  Double  deductions.   Unless  specifically  provided
18    otherwise, nothing in this Section shall permit the same item
19    to be deducted more than once.
20        (h)  Legislative intention.  Except as expressly provided
21    by   this   Section   there  shall  be  no  modifications  or
22    limitations on the amounts of income, gain, loss or deduction
23    taken into account  in  determining  gross  income,  adjusted
24    gross  income  or  taxable  income  for  federal  income  tax
25    purposes for the taxable year, or in the amount of such items
26    entering  into  the computation of base income and net income
27    under this Act for such taxable year, whether in  respect  of
28    property values as of August 1, 1969 or otherwise.
29    (Source:  P.A.  89-89,  eff.  6-30-95;  89-235,  eff. 8-4-95;
30    89-418, eff. 11-15-95; 89-460,  eff.  5-24-96;  89-626,  eff.
31    8-9-96; 90-491, eff. 1-1-98.)
32        Section  5.  The Property Tax Code is amended by changing
33    Section 16-190 and adding Section 16-191 as follows:
HB3811 Engrossed            -25-               LRB9010584KDgc
 1        (35 ILCS 200/16-190)
 2        Sec. 16-190.  Record  of  proceedings  and  orders.   The
 3    Property  Tax  Appeal  Board  shall  keep  a  record  of  its
 4    proceedings  and  orders  and  the  record  shall be a public
 5    record. In all cases where the contesting party is seeking  a
 6    change  of  $100,000  or  more  in  assessed  valuation,  the
 7    contesting  party must provide a court reporter at his or her
 8    own expense.   The  original  certified  transcript  of  such
 9    hearing  shall  be forwarded to the Springfield office of the
10    Property Tax Appeal  Board  and  shall  become  part  of  the
11    Board's  official  record  of  the proceeding on appeal. Each
12    year the Property Tax Appeal Board  shall  publish  a  volume
13    containing  a synopsis of representative cases decided by the
14    Board during that year. The publication shall be organized by
15    or cross-referenced by the issue presented before  the  Board
16    in  each  case  contained in the publication. The publication
17    shall be available  for  inspection  by  the  public  at  the
18    Property  Tax  Appeal  Board  offices  and  copies  shall  be
19    available  for  a  reasonable  cost,  except  as  provided in
20    Section 16-191.
21    (Source: P.A. 87-1189; 88-455.)
22        (35 ILCS 200/16-191 new)
23        Sec. 16-191.  Publications for  assessors.  The  Property
24    Tax  Appeal  Board  shall  provide  to  any assessor or chief
25    county assessment officer, free of  charge,  a  copy  of  the
26    volume  published  pursuant  to  Section 16-190 and any other
27    pamphlet,  publication,  brochure,   or   research   document
28    produced by the Property Tax Appeal Board, upon request, oral
29    or written.
30        Section  99.  Effective date.  This Act takes effect upon
31    becoming law.

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