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Illinois Department of Revenue

Local Government

Local Government (LTAD) Newsletter - January 2024

January 2024

This newsletter is written to inform you of recent updates or news provided by the Local Tax Allocation Division.

For information:

Visit our website at:
tax.illinois.gov

Contact us at:
Local Tax Allocation Division 3-500
Illinois Department of Revenue
101 W. Jefferson Street
Springfield, IL 62702

Phone: 217 785-6518

Email: Rev.LocalTax@illinois.gov

Don’t Miss Out on Tax Dollars Due to Inaccurate Jurisdictional Boundaries!

On February 1, 2024, LTAD will make its local taxing jurisdiction boundaries available, which requires review for accuracy by local governments. These boundaries will be sent to local governments via a MyLocalTax (MLT) message, and will be available under the Resources heading on the LTAD webpage.

The boundary verification process under the Leveling the Playing Field for Illinois Retail (LPF) Act (35 ILCS 185/5-30), requires that IDOR make available the local taxing jurisdictions’ boundaries (determined by IDOR) for their verification. This process helps maintain accurate sales tax rates in IDOR’s tax rate database for the addresses located within a local governments’ jurisdiction. This ultimately benefits the local jurisdiction by identifying the correct rates for the addresses and ensuring proper allocation to local governments.

While more responses were received in 2023 than in 2022, many local governments did not take advantage of this opportunity. Don’t forget, local governments have the option of providing their boundary files to IDOR for overlay onto its maps to make any necessary corrections. Alternatively, IDOR can provide shape files to local governments which can then be used to determine if any boundary changes are needed.

Local governments may report corrections or request/provide a boundary file by emailing REV.GIS.Tech@illinois.gov. Changes must be reported by April 1, 2024. All changes will take effect on July 1, 2024. Any updates not reported by April 1, other than boundary changes made by local ordinances (e.g., annexations or disconnections) will not be made until July 1, 2025.

Senior Citizens Real Estate Tax Deferral Program (SCD)

Communications sent in December:

  • An email with updated forms and instructions for the SCD program was sent to each county on December 1, 2023. If you administer the SCD  program for your county and have not yet seen this email, please contact LTAD.
  • The PTAX-1035, Senior Citizens Real Estate Tax Deferral Annual Participant List was mailed to all counties with participants on December 8, 2023.
  • The PTAX-1135, Senior Citizens Real Estate Tax Deferral Program Statement was mailed to each participant with a balance due on December 15, 2023.

REMEMBER – Applications must be completed in their entirety. Applications that have information missing will be returned to the Collectors Office for corrective action.

Annual Recertification of Reciprocal Agreements

If you have an active MLT account, you will receive a reminder message roughly 30 days before your recertification date. Your recertification date is determined using the last time you either updated or recertified your agreement. For most accounts, this falls in January each year.

Recertification Reminders:

  • Recertify your agreement timely. If your MLT account certification lapses, all users with confidential MLT access will have their accounts locked until recertification has been completed. To recertify, send LTAD a letter on your local government’s letterhead using the LGT-36, Reciprocal Agreement on Exchange of Information Letter Template for Local Governments. This document does not require an original signature, so it can be submitted via email or MLT message.
    Note: The LGT-36 has been updated. Please use the current version found on the Forms and Agreements webpage.
  • If you have an existing agreement and are not adding new people to your authorized list, you do not need to complete the Attachment A or Attachment B. LTAD only needs the letter.
  • If you are adding new authorized individuals, you must submit an Attachment B for each new person.
  • If you have a confidential MLT account, those documents can be submitted via MLT by using the “Submit Reciprocal Agreement” task in your allocation account.
  • If you do not have an existing agreement or anyone with a confidential MLT account, we need original signatures on both the Attachments A and B. The documentation must be mailed to our office at the address below. Both the Attachments A and B can be found on the Forms and Agreements webpage.

Note: Newly elected officials or other new employees must register individually for a new account. Do not share existing logons. Register for a new MLT account by visiting MyLocalTax and choosing, “Don’t have a logon? Register here.”

Local governments are required to notify LTAD of any employee authorized on the reciprocal agreement or with MLT access who are no longer with the local government. This is required for account closure and removal from the agreement.

Analysis of Local Government Retailers’ Occupation (ROT) & Use Tax Receipts

IDOR’s Office of Fiscal and Economic Research has issued an Analysis of Local Government Retailers’ Occupation & Use Tax Receipts 2020-2023. This report discusses the impact that the COVID-19 pandemic, Leveling the Playing Field for Illinois Retail Act, and inflation have had on the tax receipts for local governments throughout the state. This report can be found under Tax Types Distributed to Local Governments on the LTAD webpage.

Tax Rate Changes

Rate changes for multiple tax types took effect January 1, 2024. The bulletins have been sent to impacted businesses and local governments. You can find copies of these bulletins in the Informational Bulletins section of IDOR’s website.

Important Dates

Date Description
February 15, 2024 LTAD will be presenting updates for local government officials at the Illinois Government Finance Officers Association Downstate Chapter Winter Conference in Bloomington.
March 20, 2024 Ordinance filing deadline for Simplified Municipal Telecommunication Tax rate changes effective July 1, 2024.
April 1, 2024 Ordinance filing deadline for tax rate changes that do not need voter approval (e.g., Business District, Cannabis, and Home Rule sales taxes, and Motor Fuel taxes) effective July 1, 2024.
May 1, 2024 Ordinance filing deadline for tax rate changes that need voter approval (i.e., County Public Safety, County School Facility, and Non-Home Rule sales taxes) effective July 1, 2024.

IDOR News & Updates

Sign up for IDOR News & Updates, IDOR’s email/SMS text subscription service, to receive the latest news and updates specific to municipalities, counties, and local taxing districts. Sign up by visiting our website at tax.illinois.gov. Our LTAD Newsletters will only be sent via a MyLocalTax message and through IDOR’s News & Updates.

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