A South Dakota judge on Monday struck down a voter-approved constitutional amendment that legalized recreational marijuana after Gov. After that, income up to $100,000 is taxed at 4.9 percent. By JERRY NOWICKI Capitol News Illinois jnowicki@capitolnewsillinois.com One of the major questions Illinois voters will answer on Nov. 3 will be on the ballot statewide – whether to amend the state’s constitution to allow for a graduated rate income tax. Here's a look at the debate over the proposal, and The Better Government Association published a fact check to point out a claim regarding the proposed graduated tax amendment on the Nov. 3 ballot and a legal challenge to the amendment's language. Talking about taxes can get kind of confusing. The flat tax wording is crossed out. Corrected 9/20. Illinois voters will decide whether or not to pass a constitutional amendment that would change the state's income tax structure. Yet on November 3, Illinois voters finally drew a line, making it clear they want state leaders to focus on serious fiscal reforms. Illinois graduated income tax amendment runs into resistance in big bucks battle of billionaires Pritzker, Griffin. This is the text of the amendment removing the flat tax and implementing a graduated tax system in Illinois. “Illinoisans recognized the progressive tax for what it really was: just another tax hike to let Illinois politicians avoid structural reforms,” says Ted Dabrowski, president of Wirepoints,an independent, nonprofit company delivering original research and commentary about Illinois’ economy and government.. The graduated income tax is a step in the right direction. Voting YES on the Graduated Income Tax amendment will help fix Illinois’ budget, raising around $3 billion a year, protecting your retirement income, and making sure that taxes don’t go up for small businesses and older citizens. ZenBusiness is a business services platform that’s built to help clients start, run, and grow their businesses. Illinois bill aims to curb alternative energy scams by forcing transparency Those arguments approved by the General Assembly can be found here. The amendment would remove the portion of the Revenue Article of the Illinois Constitution that is sometimes referred to as the “flat tax,” that requires all taxes on income to be at the same rate. John Charles, the executive director for governmental & public affairs at SIU, said he doesn’t yet know how the budget will be affected but expects we could know as early as January what steps the legislature will take. A proposed income tax amendment was shot down by voters in Illinois Tuesday. If you need to change or amend an accepted Illinois State Income Tax Return for the current or previous Tax Year you need to complete Form IL-1040-X for the appropriate Tax Year. Illinois is nearly surrounded by flat tax states… Several pro-tax ads imply that Illinois’ flat tax makes the state an outlier, especially among its neighbors. your federal return has been adjusted either by the Internal Revenue Service (IRS) or on a 1040X, Amended U.S. The Tax Hike Amendment TEXT OF SENATE JOINT RESOLUTION CONSTITUTIONAL AMENDMENT NO. 1 RESOLVED, BY THE SENATE OF THE ONE HUNDRED FIRST GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE HOUSE OF REPRESENTATIVES CONCURRING HEREIN that there shall be submitted to the electors of the State for adoption or rejection at the general election next occurring at least 6 months … Under the proposed law, Illinoisans’ highest marginal rate would have reached 7.99 percent, a 60 percent increase compared to Illinois’ current flat rate of 4.95 percent. And all Illinois voters are seeing a constitutional amendment on their ballot asking them to approve of the so-called Illinois "fair tax" by repealing the state's constitutional requirement that the state income tax is a flat tax across income levels. The amendment itself doesn't increase the tax, it just allows the state to dot it. The amendment does not itself change tax rates. Illinois voters on Tuesday got their say on … The 55 percent who rejected a progressive income tax (the “Fair Tax”) also provided an answer for why they stay: It was Illinois politicians who ruined state finances, not them, and they are not willing to give up the fight to fix those finances. “Illinois voters sent a message that with an $8 billion deficit and two massive tax hikes in the last 10 years, we cannot trust Springfield politicians with another tax hike,” said Lissa Druss, spokeswoman for the Griffin-backed Coalition to Stop the Proposed Tax Hike Amendment. so I spoke to a professor to help break things down. The Illinois Constitution currently guarantees that every tax payer in Illinois pays a flat income tax of 4.95% regardless of income. Plus I believe Illinois has the second highest property taxes in the country, with my county Lake being the highest in the state, so hopefully this will lower it a bit but I doubt it. Paid for by Yes To a Financially Responsible Illinois Michigan has a flat tax like Illinois. They help you through the filing process to help you start your business sooner and with less costly mistakes. The original constitutional amendment introduced in the Illinois Senate: ... Because of this, the progressive tax amendment could mean not only state tax hikes, but local tax hikes as well. Illinois taxpayers charged $1.8M for misleading ‘fair tax’ amendment pamphlet. Technically, the amendment only asked voters whether to lift the Illinois Constitution's prohibition on a graduated-rate income tax; it does not itself impose a new tax structure. ILLINOIS — More than 3 million Illinois residents have already voted, but Tuesday is the big day: Election Day 2020. 13. This amendment would change the Illinois Constitution, replacing our flat rate income tax with a graduated rate structure. You can prepare a 2020 Illinois Tax Amendment on eFile.com, however you cannot submit it electronically. This November, Illinois voters will vote yes or no on an amendment to decide if the flat tax rate in Illinois will be changed. Contingent legislation enacted in 2019 In June 2019, Illinois enacted legislation that would have changed the current flat personal income tax rate to a graduated rate structure if voters approved the amendment to the Illinois Constitution at the November 2020 general election. Democrats argue the amendment will mean lower tax rates for 97 percent of Illinois. The amendment would remove the portion of the Revenue Article of the Illinois Constitution that is sometimes referred to as the "flat tax," that requires all taxes on income to be at the same rate. Under the proposed amendment, the tax rate drops to 4.75 percent for the first $10,000 of a taxpayer’s income. But the fact is the majority of Illinois’ neighbors have a flat or nearly-flat tax structure. Studies show Illinois’ population is decreasing because birth rates are low, immigration numbers have declined, people want to be closer to family and they are pursuing job offers. But Republicans say taxing higher income higher rates negatively impacts small businesses, many of which file as individuals, which would result in higher taxes. The group backed by Democratic Gov. The amendment was set to change Illinois’ flat income tax structure to a progressive one and raise a projected $3.1 billion. Form IL-1040-X is a Form used for the Tax Amendment. Kristi Noem’s administration challenged it. Individual Income Tax Return, you filed; the change affects your Illinois income, additions, subtractions, exemptions, or credits; and the change is final. The Fair Tax Amendment: Why the ‘Illinois Exodus’ could be a red herring. The Illinois budget will likely see serious cuts over the next few years after voters rejected the graduated income tax amendment on Nov. 3. J.B. 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