State and Local Tax 360˚

The Illinois General Assembly Commission on Government Forecasting and Accountability has released a REPORT discussing sales tax on services.

The report suggests, based on several factors, that Illinois should broaden its sales tax to apply to more services. Currently, Illinois taxes 17 services, while the average state taxes 56.

The Executive Summary states:

California's Commission on the 21st Century Economy is reaching the end of its discussion on proposals for revising California's taxing structure.

Ohio has issued an information release to remind taxpayers that the franchise tax phase-out was complete with the filing of the 2009 franchise tax report (based on the taxable year ending in 2008).

Most corporations are not subject to the franchise tax for tax years (report years) 2010 and thereafter. Corporations that are not subject to the 2010 franchise tax (based on the taxable year ending in 2009) are not subject to the minimum fee and have no report year 2010 franchise tax payment or filing obligation.

Governor M. Jodi Rell announced last week that she will neither sign nor veto the state budget given final approval by legislative Democrats last Tuesday morning, allowing the bill to become law without her signature according to the state Constitution. However, Governor Rell said she will exercise her line-item veto power to remove new earmarks and new “pork-barrel” spending items added to the bill.

This is a reminder that Amnesty began September 1st for the following states:

DELAWARE (September 1 through October 30, 2009)

LOUISIANA (September 1 through October 31, 2009)

MAINE (September 1 through November 30, 2009)