Over the weekend, the House met both Saturday and Sunday. The Senate recessed on Friday and will gavel back in today at Noon. Last evening, the House passed SB-9 HA 3(omnibus tax package) and SB-6 HA 3 & 4 (state government spending). SB-9 HA 3 raises the income tax rate for individuals to 4.95% and corporations to 7%. Unlike other proposals, these are permanent rates and do not have an expiration date such as at the senate version, and the House Republican Proposal. The effective date of the tax increases is July 1, 2017. The state government spending proposal provides for $36,054 billion in spending for State Government Operations. This is less than the Governor requested and will require state agencies to trim operating expenses.
Discussions in the House are ongoing regarding the non-budget items.
If you are keeping score, here is a link to the Democratic proposals.
So, negotiations on the non-budgetary items continue in the House and amongst the leaders. The Senate will convene today and will need to concur with the House Amendments (which become the operative bill) to SB 6 & 9. Since the Senate was not in session this weekend, the Senate will need to regroup to ensure that there is the requisite number of votes (super majority) to pass both pieces of the amended legislation. The Senate Democrats have enough democratic members for a super majority but it is uncertain if enough democratic members will be present to get the two bills over the finish line to be presented to the Governor.
And, there is the Governor. Last evening, his office announced that without the non-budgetary reforms, he would veto the tax increase and the spending bill that the House passed, provided SB 6 & 9 are concurred with by the Senate and presented to the Governor for action.
We shall see how today goes.
Warm, humid and sunny here
MARTY GREEN, ESQ
Vice President Government Relations, Illinois CPA Society?
524 South Second Street, Suite 504
Springfield, Illinois 62701
Phone: 217.789. 7914| Fax: 217.789.7924
| Web site: www.icpas.org