House Sponsors: KUBIK-BRUNSVOLD-LYONS,EILEEN-LINDNER-DURKIN AND BIGGINS. Senate Sponsors: PETERSON-KLEMM-SEVERNS-RADOGNO-LINK Short description: 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 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 0 END OF INQUIRY Full Text Bill Status