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* Lots of stories have been written about the proposed ADM tax break, but others are floating around as well…
Another business incentive is being sought on behalf of the company that emerges from the soon-to-be-completed merger of OfficeMax Inc. and Office Depot Inc., if it chooses Illinois as it headquarters rather than Florida.
Zurich North America insurance wants a payroll tax break in exchange for relocating its Schaumburg offices to another location in Schaumburg. The company would retain 1,000 jobs, create at least 250 more and make capital investments of at least $128 million.
Univar, a chemical distribution company based in Redmond, Wash., is seeking incentives worth $5 million to move its headquarters to Downers Grove. Univar would keep 100 jobs at its two current Illinois locations and add at least 69 jobs.
Fred Crespo, a Hoffman Estates Democrat, is pushing incentives legislation for High Voltage Software, a video-game maker in his district. The bill would give the company tax credits it says it needs to compete with mainly Canadian competitors.
* But it’s possible that action will be deferred until pension reform is taken up…
Big decisions that Illinois lawmakers pushed back to this week’s veto session might just be pushed back again.
Sen. John Sullivan heard early this week that there’s a chance the Legislature will be called back into session after Thanksgiving so that some complex issues can be worked out during the next few weeks.
“I think that could be what happens with ADM and pension reform,” the Rushville Democrat said.
* Meanwhile, the car dealers are pushing a new bill on auto leasing…
If you were to lease a car today, chances are you’d be charged for tax on the full value of the vehicle, just like if you were buying it.
But it’s the leasing company that actually pays taxes, and — due to how the system’s set up in Illinois — it’s likely they only pay a fraction of what they’ve collected to the state.
Proposed legislation, backed by auto dealers, would change it so customers only pay tax on their monthly payments, not the full cost of the car.
The Illinois Department of Revenue supports the change. Spokeswoman Sue Hofer says Illinois won’t lose any tax revenue. “This way we know the person who drives that car off the lot isn’t going to end up paying more sales tax to the person he or she bought it from than that person pays to the state of Illinois,” Hofer says.
Dealers are saying that Illinois is way behind other states in car leasing and that this change could save people $60 a month on a car worth $32,000.
I have no way of immediately verifying that claim, however. The bill is here.
* Related…
* Activists Pushing For Graduated Income Tax
posted by Rich Miller
Tuesday, Nov 5, 13 @ 11:15 am
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Let’s just set the corporate tax rate for big companies to zero, and stop wasting all our time and energy on this nonsense. CEOs and CFOs who don’t regularly threaten the state will be losing their jobs, pretty soon.
The truth is that our tax system already unfairly helps big companies, and hurts small ones (who provide the most employment and growth), and this only makes it nauseatingly obvious.
Business and industry lobbyists who support these breaks are selling out most of their members, and the economic health of the state as well.
Comment by walkinfool Tuesday, Nov 5, 13 @ 11:36 am
=== seeking incentives worth $5 million to move its headquarters to Downers Grove… add at least 69 jobs ===
A bargain rate of only $72,463.77 per new job.
=== Activists Pushing For Graduated Income Tax ===
We need to pay for all those new jobs somehow.
Never mind the idea of investing that money in Illinois and becoming more competitive in attracting businesses on the merits of this great state.
We’ll just continue “bidding” for jobs and hoping we come out on top of the auction instead.
Comment by Formerly Known As... Tuesday, Nov 5, 13 @ 11:50 am
The tax on a leased car being 100% of the autos purchase price reduces the number of cars leased.
This reform is long overdue, and will result in more leasing happening in Illinois.
Comment by Tom Joad Tuesday, Nov 5, 13 @ 11:50 am
I agree with walk in fool. Eliminate the 7% income tax on regular 1120 corporations.
Put 1120 corporations and S corps on a level playing field.
Keep the 1.5% replacement tax for all corps … just to keep reporting honest.
This will be a great incentive for business to locate in Illinois. The businesses really do not worry about State of Illinois long term debt.
The tax loss/gain will be nominal in the initial years. A very big positive for business formation and jobs. A real shot in the arm for the local economy.
Leaders always claim they want jobs.
Are the leaders willing to lead?
Comment by gg Tuesday, Nov 5, 13 @ 12:00 pm
Having bought a new car recently and considered leasing - the leasing change is standard practice outside of Illinois and long overdue. The only behavior it will incentivize is people leasing to buy (right now if they do tihs they would be paying full tax on the price of the car twice rather than once), rather than buying outright. Manufacturers often provide incentives to dealers on lease to buy programs that benefit the dealer and buyer, this will make those lease to buy programs more appealing.
Comment by Anon Tuesday, Nov 5, 13 @ 12:08 pm
“The tax loss/gain will be nominal in the initial years.”
Have some numbers to back that up?
Comment by Dee Lay Tuesday, Nov 5, 13 @ 12:10 pm
General Funds revenues totaled $34.072 billion in fiscal year 2012. The largest source of revenue to the General Funds was the personal income tax with receipts of $15.512 billion accounting for 45.5% of the total. Sales taxes were the second largest source of revenue with $7.226 billion or 21.2% of the total. Other major sources included federal revenues of $3.682 billion (10.8%), corporate income taxes of $2.461 billion (7.2%), gaming sources of $1.056 billion (3.1%), and public utility taxes of $995 million (2.9%). All other sources of revenue, including cigarette, liquor, insurance, inheritance, and other miscellaneous sources totaled $3.140 billion for fiscal year 2012 and accounted for 9.3%.
Comment by gg Tuesday, Nov 5, 13 @ 12:15 pm
The other side of the ledger …
Health and Social Services expenditures, which include spending for medical assistance, children and family services, the operation of mental health and developmentally disabled facilities and other related services, totaled $13.333 billion in fiscal year 2012 accounting for 38.8% of total General Funds expenditures. Education encompassed the second largest portion (35.2%) of the General Funds budget with fiscal year 2012 spending of $12.092 billion including $9.248 billion for elementary and secondary education and $2.844 billion for higher education. Transfers out of $5.164 billion from the General Funds primarily supported local governments, debt service payments on bonds issued, and repayment of borrowing. Spending for Public Protection and Justice of $1.985 billion included funding for the operation of prisons, courts, and law enforcement. Other areas of spending included General Government ($1.661 billion) as well as $201 million for such things as employment and economic development, environmental assistance, refunds, and transportation related items.
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Comment by gg Tuesday, Nov 5, 13 @ 12:22 pm
@gg:
I have no idea what the point of your last two posts is. Those numbers don’t answer the question that was asked.
Comment by Demoralized Tuesday, Nov 5, 13 @ 1:23 pm
I know that Missouri doesn’t charge the full sales tax hit for a lease and IL’s treatment is unfair. Buyers would pay 100% sales tax, but receive a sales tax credit when trading in a car.
Under the current system, leasing a car is less attractive in IL. This is good for both the consumer and the retailers.
Comment by Allen Skillicorn Tuesday, Nov 5, 13 @ 3:14 pm
$2.461 billion is nominal?
Comment by DuPage Tuesday, Nov 5, 13 @ 3:51 pm
Unless i get a tax break , i am moving. i realy mean it this time
Comment by ejhickey Tuesday, Nov 5, 13 @ 7:16 pm
If they are going to tweak the tax laws, they should add a coal severance tax like other coal producing states. The revenue could go to state pension funds. http://www.pjstar.com/opinions/forum/x1343097968/In-the-Spotlight-Illinois-in-dire-need-of-coal-severance-tax
Comment by DuPage Tuesday, Nov 5, 13 @ 7:55 pm