Senate Bill 690 makes up the “vertical” portion of the capital bill, infrastructures such as schools and hospitals. Whereas Senate Bill 1939 consists of the “horizontal” elements (roads, bridges, and transit).
Senate Bill 690
Leveling the Playing Field for Illinois Retail
After the Wayfair v South Dakota decision, Illinois can now require that remote retailers (Amazon, Ebay, Facebook, etc) collect State and local Retailers’ Occupation Tax (ROT) rather than use tax. The Illinois Retail Merchants Association states (more information here) that Illinois would raise $460 million annually, with $368 million to the state and $92 million to localities by formula, plus any additional ROT where applicable. IRMA states that local governments win with an increase in their tax share, and they get all of any locally-imposed ROT. Finally, there is no change in this matter for Illinois retailers or anyone with a warehouse or distribution center in Illinois. [pg1-7, 126-129, 155]
Parking Excise Tax
Beginning on January 1, 2020, a tax is imposed on the privilege of using in this State a parking space in a parking area or garage for the use of parking one or more motor vehicles, recreational vehicles, or other self-propelled vehicles, at the rate of 6% for a parking space paid for on an hourly, daily, or weekly basis; and 9% when on a monthly or annual basis. [pg7-20]
Data Center Investments
Two new tax benefits apply to data centers that make a capital investment of $250 million over a 5-year period, create 20 new jobs, and is either carbon neutral or green building certified. If the data center is in an economically disadvantaged area, there is a data center construction employment tax credit equal to 20% of the wages paid to construction contractor employees. Additionally, there is a sales/use tax exemption for property used in the construction or operation of a certified data center. [pg37-44, 81, 97, 113, 150]
As of July 1, 2019, taxes on cigarettes will increase to $1 per pack and Illinois imposed a floor tax. Electronic cigarettes are now subject to a 15% tax on the wholesale price. [pg170-196]
Sports Wagering and More
Although the IEDA was not engaged in the gambling components of any legislation, we wanted to point it out in this bill. A new income tax surcharge was created on income from the sale or exchange of gaming-related assets equal to the federal income tax on that sale. You can find more on pages 227 – 816.
Senate Bill 1939
Motor Fuel Tax
Illinois hasn’t passed an infrastructure bill in a decade. However, this weekend a bipartisan effort in the Senate (12 of 19 Republicans and 36 of 40 Democrats) voted to increase the tax on fuel and increase vehicle registration and title fees to gather money for $45 billion statewide construction program. Also, as a concession to Republicans, the state will begin shifting 80% of its gasoline sales tax to the Illinois Road Fund.
SB1939 increases the motor fuel tax by 19¢ to 38¢ a gallon for regular fuel and 26¢ a gallon for diesel. Also, municipalities in Cook County may impose up to a 3¢ per gallon tax. DuPage, Kane, McHenry, Lake, and Will can now impose up to 8¢ a gallon (from 4¢). Finally, the annual vehicle registration fee from $101 per year to $151 beginning with the 2021 registration year, and the commercial distribution fee is being eliminated July 1, 2020.