ISBA Statehouse Review for the week of May 21, 2015
ISBA Director of Legislative Affairs Jim Covington reviews legislation in Springfield of interest to ISBA members. This week he covers Service tax white paper, Property fraud alert system (House Bill 3672), The Parentage Act (House Bill 1531), Lifetime revocation issue (House Bill 1446) and Court security fee (Senate Bill 804). More information on each bill is available below the video.
Service tax white paper. The Taxpayers Federation of Illinois and the Center for Tax and Budget Accountability issued an issue brief on a service tax for Illinois at a press conference in Springfield yesterday. It recommends that the majority of professional services should be excluded from the Illinois sales tax base. Attorneys were not included in this proposed tax base. From the brief:
Finally, the majority of professional services should also remain out of the Illinois sales tax base. Currently, most states do not tax professional services. Of the 45 states with a general sales tax, only six have sales taxes that apply to any professional service industry. Illinois simply should not go from being a national tax outlier by having too narrow of a base, to being an outlier for having too broad of a base. There are other, administrative issues unique to taxing professional services that make doing so more complicated and cumbersome than other services, such as determining which local jurisdiction taxes apply, or whether the service is taxable in Illinois at all. These issues are very difficult. The focus ultimately should be on getting tax policy right. (See page 9.)
It may be found at the link below.
Property fraud alert system. House Bill 3672 (Greg Harris, D-Chicago; Cunningham, D-Chicago) amends the Counties Code. Provides that in a county that has a property fraud alert system, a county recorder may create a registration form to register a property owner on the county’s property fraud alert system. A real estate professional may file the registration form with the recorder on behalf of a property owner. Provides that real estate professionals must register with the county recorder before filing the registration forms on behalf of property owners. Provides that a property owner may list three other people to receive a property fraud alert on his or her registration form. Passed the House and awaiting a vote in the full Senate.
The Parentage Act. House Bill 1531 (Kelly Burke, D-Evergreen Park; Mulroe, D-Chicago) is a rewrite of the Illinois Parentage Act modeled after the uniform act from the Uniform Law Commission. It has passed both chambers.
Lifetime revocation issue. House Bill 1446 (Nekritz, D-Buffalo Grove; Mulroe, D-Chicago) amends the current Illinois law that now prohibits a person from ever legally driving again after four DUI convictions. House Bill 1446 retains this prohibition, but it permits the person to ask the Secretary of State for a RDP (restricted driving permit) after a five-year period. If granted, the driver would be required to permanently use a BAIID device to drive for certain limited purposes and designated times, such as to work or for child-care responsibilities. But the person will never be eligible for full reinstatement of driving privileges in Illinois. Passed the House and Senate Criminal Law Committee and is awaiting a vote in the full Senate.
Court security fee. Senate Bill 804 (Haine, D-Alton; Moffitt, R-Galesburg) allows a court security fee to exceed $25 for every party in a civil suit if it is set according to an acceptable cost study under the Counties Code. This fee is also added to a plea of guilty or conviction for defendants in traffic, ordinance, and criminal cases. Passed both chambers.