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* Hannah Meisel at the Daily Line…
Illinois brought in $3 billion more in state tax revenue in the 2019 fiscal year as compared with the previous year, according to a new report from the Illinois Department of Revenue. […]
The majority of that boost was due to revenue gains in Illinois’ individual and corporate income taxes — both of which were hiked a few days into the 2018 fiscal year to end the state’s two-year budget impasse in July 2017 — and sales tax collection.
Sales and use taxes were up $700 million in the 2019 fiscal year, according to IDOR’s annual report. In anticipation of a U.S. Supreme Court decision about the collection of online sales taxes in 2018, the General Assembly included language in its budget implementation bill for the 2019 fiscal year budget, and expected $150 million more in revenues. Another tweak affecting online sales taxes was approved by the General Assembly in May.
Revenues from the state’s individual income tax were up $1.6 billion in the 2019 fiscal year — a total of $21.9 billion last year, according to IDOR. At the same time, income tax revenues increased $1.1 billion from $4.7 billion in 2018.
The report is here.
* Related…
* Want to get around Illinois new vehicle trade-in tax in 2020? Buy a pickup
* Illinoisans pay more in cell phone taxes than residents anywhere else in U.S.
posted by Rich Miller
Monday, Jan 6, 20 @ 9:30 am
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….aaaannndddd it’s gone.
Comment by Steve Monday, Jan 6, 20 @ 9:39 am
I do wonder what projections for a passed progressive income tax will be, seeing these fresher numbers from the income tax of this last year.
My wonder is partly due to the upcoming media blitz that’s going to happen promoting that vote in November.
Comment by Oswego Willy Monday, Jan 6, 20 @ 9:42 am
Unfortunately it will all be absorbed by the pension funds which had below expectation returns last FY
Comment by Sue Monday, Jan 6, 20 @ 9:56 am
=== Unfortunately===
You must not be a fiscal conservative, paying off debt is a fiscally prudent thing to do.
Then again, phony “fiscal conservatives” are the ones running up debt for tax cuts, citing “new revenues” but drawing more debt, outpacing that new revenue.
=== Unfortunately===
Very telling. Thanks.
Comment by Oswego Willy Monday, Jan 6, 20 @ 10:00 am
I don’t understand break for pick up trucks. They are used more and more like cars. Could understand a break for those purchased by businesses for work required pick ups
Comment by DuPage Saint Monday, Jan 6, 20 @ 10:05 am
@Sue…
Hopefully, the GA and GO will do the responsible thing and put it toward pension funds, which had below expectation returns last FY.
Fixed it for you.
Comment by Nick Name Monday, Jan 6, 20 @ 10:09 am
With the rate of change in Income tax and business tax revenue over the past two FY’s one wonders what is the need for a progressive income tax ?
Comment by Donnie Elgin Monday, Jan 6, 20 @ 10:15 am
== With the rate of change in Income tax and business tax revenue over the past two FY’s one wonders what is the need for a progressive income tax?==
To give nonrich people a little break.
Comment by 17% Solution Monday, Jan 6, 20 @ 10:20 am
=== one wonders what is the need for a progressive income tax ?===
I save this in the back of my head.
Please don’t comment about debt, pensions, or “phony budgets” because all fiscal indicators say that Illinois needs more revenue to handle the debt load and budgetary needs and wants.
Illinois is not in a fiscal position to think “welp, we don’t need revenues to outpace our liabilities anymore, we’re good”
The real interesting thing going forward in the short term will be if this Administration does the right thing and pays down liabilities and continues to work towards a sounder fiscal footing.
Comment by Oswego Willy Monday, Jan 6, 20 @ 10:21 am
“Trade-in tax” is so misleading. For whatever reason, Illinois gives car buyers a break on their taxes to the extent they use a trade-in, instead of cash, to pay. Now that break is limited if your trade-in is valued over $10,000. Poor you. (and, as the article says correctly, the cap was written poorly so doesn’t apply if your new vehicle is a pick-up)
Comment by notsosure Monday, Jan 6, 20 @ 10:23 am
I drive vehicles until they fall apart. The trade in tax effects me as much as an increased tax on BMW’s would.
Comment by efudd Monday, Jan 6, 20 @ 10:31 am
For whatever reason?
The only states that DO NOT currently give a tax credit as of February 2019 are:
California
District of Columbia
Hawaii
Kentucky
Michigan
Montana
Virginia
http://www.realcartips.com/selling/010-states-that-allow-trade-in-tax-credit.shtml
I thought the primary reason for the unexpected windfall of state tax revenue was the roaring national economy produced by Republican administration’s tax and regulation policy.
Comment by Lucky Pierre Monday, Jan 6, 20 @ 10:34 am
==For whatever reason, Illinois gives car buyers a break on their taxes to the extent they use a trade-in==
Only 6 states don’t have a trade-in sales tax credit policy. Should Illinois be an outlier?
Comment by City Zen Monday, Jan 6, 20 @ 10:39 am
“State agencies are getting a warning from Illinois Gov. J.B. Pritzker’s budget office: Be prepared to make significant cuts next year.
A memo orders agencies to include a scenario in which 6.5 percent of current year funding would go away. They’re to find the savings through “operational efficiencies.”
Revenue going up matched to JB’s 6.5 percent cut. Now that is recipe for fiscal success.
Comment by Donnie Elgin Monday, Jan 6, 20 @ 10:40 am
Very good news. The revenue is vitally necessary. We’re talking about helping the most vulnerable, so many of whom were hurt badly because of the former governor’s budget sabotage. Now we need to take it to the next level and bring tax fairness and more revenue with the graduated income tax.
Looking at a jobs growth chart and graph for our state at Department of Numbers, it’s very clear that the two tax hikes, in 2011 and 2017, did not hurt job creation. The automatic income tax cut in 2015 did not cause an explosion in job growth. As we find ourselves in a new decade, it’s important to disregard propaganda about taxes and job growth. A great example is the 75 straight months of job growth during the former president’s term, before the Trump tax cuts.
Comment by Grandson of Man Monday, Jan 6, 20 @ 10:45 am
I will continue to disregard your propaganda Grandson
Read the population loss post and get back to us about Illinois heading in the right direction
Comment by Lucky Pierre Monday, Jan 6, 20 @ 11:00 am
Interesting that the Motor fuel tax increased .19 cents/gal in July, and yet motor fuel revenues went down for FY 19.
Comment by Donnie Elgin Monday, Jan 6, 20 @ 11:57 am
Donnie - Fiscal years end on June 30.
Comment by City Zen Monday, Jan 6, 20 @ 12:44 pm
- DuPage Saint - Monday, Jan 6, 20 @ 10:05 am:
I don’t understand break for pick up trucks. They are used more and more like cars. Could understand a break for those purchased by businesses for work required pick ups…
think about that for a moment, it was heavily lobbied for by Labor. we build a lot of trucks in illinois.
Comment by CCrider Monday, Jan 6, 20 @ 12:49 pm
==I will continue to disregard your propaganda==
Lol Says the propoganda king.
Comment by Demoralized Monday, Jan 6, 20 @ 1:06 pm
==I don’t understand break for pick up trucks.==
What’s the trade-in value of a F-150 Raptor?
Comment by City Zen Monday, Jan 6, 20 @ 2:53 pm
“I don’t understand break for pick up trucks.”
Farm lobbyists?
Comment by Bruce (no not him) Monday, Jan 6, 20 @ 3:14 pm
I hope with all this additional income the state is receiving it is not wasted.
Comment by ETown60120 Monday, Jan 6, 20 @ 3:38 pm
Thank goodness for the Trump economic freight train. Use the $3 billion to pay down pension debt. All of it. Then send a letter to 1600 Pennsylvania ave. With a big Thank You attached.
Comment by Blue Dog Dem Monday, Jan 6, 20 @ 6:53 pm
The most entertaining aspect of this comes when folks boast about the increase in net revenues that were the result in increases in tax rates and suggest that means the State Government has done a better job of administrating the taxes.
Comment by Candy Dogood Monday, Jan 6, 20 @ 7:12 pm