LEGISLATION PUTTING BUSINESSES TAX DATA IN JEOPARDY FAILS

Date: May 13, 2016

Legislation allowing local government units to give a businesses’ confidential tax information to a for-profit third- party company failed in the Illinois Senate this week, but the sponsor could call it again.

Using a parliamentary procedure called “postponed consideration,” the sponsor could call it for a vote one more time if he chooses. SB 2933 was two votes shy of the 30 needed to pass.

SB 2933 seeks to require the Illinois Department of Revenue to disclose sales tax information of businesses located within municipalities directly to independent third-parties hired by such municipalities. This would include third-parties hired on a contingency-fee basis to challenge tax allocation decisions made by Illinois Department of Revenue

Currently, home rule units of government and municipalities that impose their own sales tax, receive the following information from Revenue: business name, business address, the amount sales tax distributed to the municipality from sales at that business as part of the municipality’s 1% share of the 6.25% state sales tax; the amount of sales tax distributed to the municipality from sales at that business as the result of any locally imposed sales tax administered by the Department; and a listing of all registered businesses located within the municipality listed by account ID number and address. 

This information is protected by strict confidentiality requirements imposed by the department. This is necessary because tax information is highly sensitive. 

NFIB is part of a coalition opposing SB 2933.

Related Content: Small Business News | Illinois

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