KUBIK-BRUNSVOLD-LYONS,EILEEN-LINDNER-DURKIN AND BIGGINS.
INC TX-BUSINESS INC-NON-RESDNT
Synopsis of Bill as introduced:
Amends the Illinois Income Tax Act. Provides that if a person
other than a resident derives business income from this State and
others, the business income shall be apportioned to this State by
multiplying the income by the sales factor (now by multiplying the
income by a fraction, the numerator of which is the sum of the
property factor, the payroll factor, and 200% of the sales factor and
the denominator of which is 4 reduced by the number of factors other
than the sales factor which have a denominator of zero and by an
additional 2 if the sales factor has a denominator of zero). Deletes
provisions in the definition of sales factor stating that sales are in
this State if the property is shipped from this State and the
purchaser is the government or is otherwise exempt from taxation.
Deletes provision stating that sales are not in this State if the
seller and purchaser would be members of the same unitary business
group but for the fact that one of them is a person with 80% or more
of total business activity outside of the United States and the
property is purchased for resale. Provides that the provision
excluding dividends and Subpart F income from the sales factor shall
apply to taxable years ending on or after December 31, 1995 (now
taxable years ending on or after December 31, 1995 and excluding
taxable years ending after December 31, 1997). Effective immediately.
HOUSE AMENDMENT NO. 1.
Adds reference to:
35 ILCS 5/804 from Ch. 120, par. 8-804
35 ILCS 5/1501 from Ch. 120, par. 15-1501
Deletes everything. Amends the Illinois Income Tax Act.
Provides that for tax years ending on or after December 31, 1997,
persons other than residents who derive business income from this
State and one or more other states shall apportion their business
income using a single factor sales formula. Provides that this sales
factor shall be a fraction, the numerator of which is the total sales
of the person in this State during the taxable year, and the
denominator of which is the total sales of the person everywhere
during the taxable year. Excludes certain amounts from the sales
factor for taxable years ending on or after December 31, 1995.
Provides that no penalty shall be imposed for failure to pay the
estimated tax due before the effective date of this amendatory Act if
the underpayments are solely attributable to the change in the
apportionment of income. In the definition of "unitary business
group", provides that if the members' accounting periods differ, the
common parent's accounting period, or if there is no common parent,
the accounting period of the member that is expected to have, on a
recurring basis, the greatest Illinois income tax liability must be
used to determine which apportionment method to use. Provides that
the provisions of this amendatory Act apply to tax years ending on or
after December 31, 1997. Effective immediately.
Last action on Bill: TOTAL VETO STANDS
Last action date: 97-10-30
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 0
END OF INQUIRY
Full Text Bill Status