Illinois State Senate Votes to Raise Corporate and Individual Tax Rates
Earlier this week, the Illinois State Senate voted along party lines to approve SJRCA1, a measure that would place a constitutional amendment on the 2020 ballot to replace Illinois’ flat income tax with a progressive tax system. The Senate also approved three bills that would only go into effect if the constitutional amendment was approved by voters in 2020.
These bills included the following law changes:
- An increase in the combined C Corporation tax rate to 10.49% from the current rate of 9.50%
- Graduated tax rates ranging from 4.75% to 7.99%
- Top rates would apply to single individuals with taxable income over $750,000 and married couples filing jointly over $1 million
- An elimination of the Illinois estate tax
- A freeze to property tax rates for education purposes, which is contingent on the state adequately providing education funding
The constitutional amendment and three related bills will now move to the House for consideration.
Amanda Garnett is a principal in the financial institutions practice of CliftonLarsonAllen (CLA) from Peoria, Illinois. She currently leads the firm’s Midwest financial institution tax team and serves institutions ranging in size from $15 million to $3.5 billion in total assets. In addition to tax compliance, Amanda assists clients in the areas of tax consulting, mergers and acquisitions, and regulatory reporting. She also routinely teaches courses for banking associations across the country.
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