Illinois House Bill HB3401

Illinois 2023-2024 Regular Session

• Introduced: 2/17/23
• Refer: 2/28/23
• Refer: 2/17/23
• Refer: 3/10/23

Caption

IDOR-DATA SHARING

Summary

House Bill 3401, introduced by Rep. Abdelnasser Rashid, seeks to amend the Illinois Income Tax Act to facilitate the sharing of taxpayer income information between the Department of Revenue and local county assessment officials. Starting from tax years ending on or after December 31, 2024, this legislation will allow the Department to include a provision in standard individual income tax returns that authorizes such data sharing. The aim is to enhance the verification process of taxpayer income information utilized for local taxation and assessment purposes. Under this new provision, by April 1, 2025, the chief county assessment officer in each county will be required to interface with the Department's tax system. This step is intended to create a more streamlined process for local governments in assessing properties and ensuring accurate property tax calculations based on the taxpayer's reported income, which is critical for equitable tax practices. The potential impact of HB3401 on state laws includes a shift towards improved collaboration between state and local tax officials, thereby enhancing the efficiency of income verification processes. Many supporters believe that this initiative could reduce fraudulent claims and ensure that property taxes reflect actual income levels, assisting in more accurate revenue collection for local authorities. However, the bill raises concerns regarding taxpayer privacy. Critics argue that the sharing of sensitive income data could compromise the confidentiality of taxpayers, fearing that it may lead to misuse of information. Advocates for privacy rights stress the need for stringent safeguards to protect taxpayer information in the face of this increased data sharing. Ultimately, the balancing act between effective tax administration and protecting citizen privacy will be a point of contention as the bill progresses through the legislative process.