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91_HB2755
LRB9104295PTpkA
1 AN ACT concerning income taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Income Tax Act is amended by
5 changing Sections 208, 302, and 701 as follows:
6 (35 ILCS 5/208) (from Ch. 120, par. 2-208)
7 Sec. 208. Tax credit for residential real property taxes.
8 Beginning with tax years ending on or after December 31,
9 1991, every individual taxpayer, including a taxpayer with
10 income tax liability in another State, shall be entitled to a
11 tax credit equal to 5% of real property taxes paid by such
12 taxpayer during the taxable year on the principal residence
13 of the taxpayer. In the case of multi-unit or multi-use
14 structures and farm dwellings, the taxes on the taxpayer's
15 principal residence shall be that portion of the total taxes
16 which is attributable to such principal residence.
17 Notwithstanding any other provision of law, for taxable
18 years 1998 and 1999 the Department must refund to each
19 qualified taxpayer, who had income tax liability in Indiana
20 in taxable years 1998 and 1999, the full amount of the credit
21 that the taxpayer is entitled to receive under this Section
22 if that taxpayer did not request or receive the full amount
23 of the credit.
24 (Source: P.A. 87-17.)
25 (35 ILCS 5/302) (from Ch. 120, par. 3-302)
26 Sec. 302. Compensation paid to nonresidents.
27 (a) In general. All items of compensation paid in this
28 State (as determined under Section 304(a)(2)(B)) to an
29 individual who is a nonresident at the time of such payment
30 and all items of deduction directly allocable thereto, shall
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1 be allocated to this State.
2 (b) Reciprocal exemption. The Director must, if
3 possible, may enter into an agreement with the taxing
4 authorities of any state which imposes a tax on or measured
5 by income to provide that compensation paid in such state to
6 residents of this State shall be exempt from such tax; in
7 such case, any compensation paid in this State to residents
8 of such state shall not be allocated to this State. All
9 reciprocal agreements shall be subject to the requirements of
10 Section 39b53 of the Civil Administrative Code of Illinois.
11 (c) Cross references.
12 (1) For allocation of amounts received by
13 nonresidents from certain employee trusts, see Section
14 301(b)(2).
15 (2) For allocation of compensation by residents,
16 see Section 301(a).
17 (Source: P.A. 90-491, eff. 1-1-98.)
18 (35 ILCS 5/701) (from Ch. 120, par. 7-701)
19 Sec. 701. Requirement and Amount of Withholding.
20 (a) In General.
21 Every employer maintaining an office or transacting
22 business within this State and required under the provisions
23 of the Internal Revenue Code to withhold a tax on:
24 (1) compensation paid in this State (as determined
25 under Section 304 (a) (2) (B) to an individual; or
26 (2) payments described in subsection (b) shall
27 deduct and withhold from such compensation for each
28 payroll period (as defined in Section 3401 of the
29 Internal Revenue Code) an amount equal to the amount by
30 which such individual's compensation exceeds the
31 proportionate part of this withholding exemption
32 (computed as provided in Section 702) attributable to the
33 payroll period for which such compensation is payable
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1 multiplied by a percentage equal to the percentage tax
2 rate for individuals provided in subsection (b) of
3 Section 201.
4 (b) Payment to Residents.
5 Any payment (including compensation) to a resident by a
6 payor maintaining an office or transacting business within
7 this State and on which withholding of tax is required under
8 the provisions of the Internal Revenue Code shall be deemed
9 to be compensation paid in this State by an employer to an
10 employee for the purposes of Article 7 and Section 601 (b)
11 (1) to the extent such payment is included in the recipient's
12 base income and not subjected to withholding by another
13 state.
14 (c) Special Definitions.
15 Withholding shall be considered required under the
16 provisions of the Internal Revenue Code to the extent the
17 Internal Revenue Code either requires withholding or allows
18 for voluntary withholding the payor and recipient have
19 entered into such a voluntary withholding agreement. For the
20 purposes of Article 7 and Section 1002 (c) the term
21 "employer" includes any payor who is required to withhold tax
22 pursuant to this Section.
23 (d) Reciprocal Exemption. The Director must, if
24 possible, may enter into an agreement with the taxing
25 authorities of any state which imposes a tax on or measured
26 by income to provide that compensation paid in such state to
27 residents of this State shall be exempt from withholding of
28 such tax; in such case, any compensation paid in this State
29 to residents of such state shall be exempt from withholding.
30 All reciprocal agreements shall be subject to the
31 requirements of Section 39b53 of the Civil Administrative
32 Code of Illinois.
33 (e) Notwithstanding subsection (a) (2) of this Section,
34 no withholding is required on payments for which withholding
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1 is required under Section 3405 or 3406 of the Internal
2 Revenue Code of 1954.
3 (Source: P.A. 90-491, eff. 1-1-98.)
4 (20 ILCS 2505/39b53 rep.)
5 Section 10. The Civil Administrative Code of Illinois is
6 amended by repealing Section 39b53.
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.