REVENUE-BULK SALES NOTICE
The immediate effect of SB1901, upon enactment, is the removal of the obligation for purchasers or transferees to file a notice of sale or transfer of business assets when real estate is the sole asset involved. This modification is aimed at simplifying compliance for businesses and could lead to more efficient transactions in the real estate market by reducing the paperwork and associated delays that can accompany the bulk sales process.
SB1901, introduced by Senator Chapin Rose, amends the Illinois Income Tax Act and the Retailers' Occupation Tax Act. The primary focus of this bill is to eliminate the bulk sales notice requirement when only real estate is sold or transferred as part of a business transaction. This legislative change is intended to streamline the selling process for real estate and reduce administrative burdens on businesses engaging in such transactions.
While the bill is positioned as a measure to facilitate business operations, it could lead to potential disputes regarding tax liabilities related to property sales, as the notice requirement serves as a safeguard for the state to collect unpaid taxes from sellers. By eliminating this requirement, there are concerns that the state’s ability to recover taxes owed from sellers could be affected, which has generated some debate among legislators regarding the balance between easing business operations and ensuring adequate tax revenue.