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90_SB1545
35 ILCS 5/204 from Ch. 120, par. 2-204
Amends the Illinois Income Tax Act. Grants taxpayers,
beginning with taxable years beginning on or after January 1,
1998, an additional basic amount standard exemption, and an
additional amount for dependents of (i) $1,500 if their
adjusted gross income is less than $25,000, (ii) $1,000 if
their adjusted gross income is at least $25,000 but less than
$50,000, and (iii) $500 if their adjusted gross income is at
least $50,000 but less than $75,000. Provides that beginning
January 1, 2000, the standard exemption basic amount and
additional basic amount for individuals, and the basic amount
and additional amount for additonal exemptions, shall be
subject to annual adjustments equal to the percentage of
increase in the previous calendar year in the Consumer Price
Index for All Urban Consumers for all items published by the
Untied States Department of Labor or a successor index
adopted by the Department of Revenue by rule. Exempts these
changes from the sunset provisions of the Act. Effective
immediately.
SDS/bill0063/dgm
SDS/bill0063/dgm
1 AN ACT to amend the Illinois Income Tax Act by changing
2 Section 204.
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 204 as follows:
7 (35 ILCS 5/204) (from Ch. 120, par. 2-204)
8 Sec. 204. Standard Exemption.
9 (a) Allowance of exemption. In computing net income
10 under this Act, there shall be allowed as an exemption the
11 sum of the amounts determined under subsections (b), (c) and
12 (d), multiplied by a fraction the numerator of which is the
13 amount of the taxpayer's base income allocable to this State
14 for the taxable year and the denominator of which is the
15 taxpayer's total base income for the taxable year.
16 (b) Basic amount. For the purpose of subsection (a) of
17 this Section, except as provided by subsection (a) of Section
18 205 and in this subsection, each taxpayer shall be allowed a
19 basic amount of $1000. Beginning with taxable years beginning
20 on or after January 1, 1998, for the purpose of subsection
21 (a) of this Section, except as provided by subsection (a) of
22 Section 205 and in this subsection, (i) each taxpayer with an
23 adjusted gross income of less than $25,000 shall be allowed
24 an additional basic amount of $1,500; (ii) each taxpayer with
25 an adjusted gross income of at least $25,000 but less than
26 $50,000 shall be allowed an additional basic amount of
27 $1,000; and (iii) each taxpayer with an adjusted gross income
28 of at least $50,000 but less than $75,000 shall be allowed an
29 additional basic amount of $500. For taxable years ending on
30 or after December 31, 1992, a taxpayer whose Illinois base
31 income exceeds $1,000 and who is claimed as a dependent on
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1 another person's tax return under the Internal Revenue Code
2 of 1986 shall not be allowed any basic amount under this
3 subsection.
4 (c) Additional amount for individuals. In the case of an
5 individual taxpayer, there shall be allowed for the purpose
6 of subsection (a), in addition to the basic amount provided
7 by subsection (b), an additional exemption in the amount of
8 $1000 for each exemption in excess of one allowable to such
9 individual taxpayer for the taxable year under Section 151 of
10 the Internal Revenue Code. Beginning with taxable years
11 beginning on or after January 1, 1998, in addition to the
12 basic amount provided by subsection (b) and the additional
13 amount provided in this subsection, (i) each taxpayer with
14 an adjusted gross income of less than $25,000 shall be
15 allowed an additional amount of $1,500; (ii) each taxpayer
16 with an adjusted gross income of at least $25,000 but less
17 than $50,000 shall be allowed an additional amount of $1,000;
18 and (iii) each taxpayer with an adjusted gross income of at
19 least $50,000 but less than $75,000 shall be allowed an
20 additional amount of $500 for each exemption in excess of
21 one allowable to that individual taxpayer for the taxable
22 year under Section 151 of the Internal Revenue Code.
23 (d) Additional exemptions for an individual taxpayer and
24 his or her spouse. In the case of an individual taxpayer and
25 his or her spouse, he or she shall each be allowed additional
26 exemptions as follows:
27 (1) Additional exemption for taxpayer or spouse 65
28 years of age or older.
29 (A) For taxpayer. An additional exemption of
30 $1,000 for the taxpayer if he or she has attained
31 the age of 65 before the end of the taxable year.
32 (B) For spouse when a joint return is not
33 filed. An additional exemption of $1,000 for the
34 spouse of the taxpayer if a joint return is not made
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1 by the taxpayer and his spouse, and if the spouse
2 has attained the age of 65 before the end of such
3 taxable year, and, for the calendar year in which
4 the taxable year of the taxpayer begins, has no
5 gross income and is not the dependent of another
6 taxpayer.
7 (2) Additional exemption for blindness of taxpayer
8 or spouse.
9 (A) For taxpayer. An additional exemption of
10 $1,000 for the taxpayer if he or she is blind at the
11 end of the taxable year.
12 (B) For spouse when a joint return is not
13 filed. An additional exemption of $1,000 for the
14 spouse of the taxpayer if a separate return is made
15 by the taxpayer, and if the spouse is blind and, for
16 the calendar year in which the taxable year of the
17 taxpayer begins, has no gross income and is not the
18 dependent of another taxpayer. For purposes of this
19 paragraph, the determination of whether the spouse
20 is blind shall be made as of the end of the taxable
21 year of the taxpayer; except that if the spouse dies
22 during such taxable year such determination shall be
23 made as of the time of such death.
24 (C) Blindness defined. For purposes of this
25 subsection, an individual is blind only if his or
26 her central visual acuity does not exceed 20/200 in
27 the better eye with correcting lenses, or if his or
28 her visual acuity is greater than 20/200 but is
29 accompanied by a limitation in the fields of vision
30 such that the widest diameter of the visual fields
31 subtends an angle no greater than 20 degrees.
32 (d-1) Beginning January 1, 2000 and thereafter, the
33 basic amount and additional basic amount for individual
34 taxpayers in subsection (b), and the basic amount and
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1 additional amount for individuals in subsection (c) shall be
2 subject to annual adjustments equal to the percentage of
3 increase in the previous calendar year in the Consumer Price
4 Index for All Urban Consumers for all items published by the
5 United States Department of Labor or a successor index
6 adopted by the Department of Revenue by rule.
7 (e) Cross reference. See Article 3 for the manner of
8 determining base income allocable to this State.
9 (f) The changes made by this amendatory Act of 1998 are
10 exempt from the provisions of Section 250.
11 (Source: P.A. 86-146; 87-880; 87-1246.)
12 Section 99. Effective date. This Act takes effect upon
13 becoming law.