Illinois taxpayers to pay blended rate for 2017 income
SPRINGFIELD, Ill. (AP) — Illinois taxpayers will be paying an in-between rate on 2017 income as a result of the state’s tax increase.
The Illinois Department of Revenue has calculated that the “blended” rate will be 4.35 percent for individual returns that are due in April, the State Journal-Register reported. The basic tax rate increased in July from 3.75 percent to 4.95 percent.
Department spokesman Terry Horstman said the rate is based on the number of days under the 3.75 percent and the days under the 4.95 percent rate.
Horstman said the state tax forms will use the blended rate to make it easier for taxpayers. He said the rate on returns applies to income earned from January through December.
The new rates combined with sales tax and other changes are expected to raise a little more than $5.1 billion for fiscal 2018.
“As of right now, things are going according to plan,” said Jim Muschinske, revenue manager for the commission.
Revenue from personal income withholdings increased by $1.4 billion from July through November, excluding refunds, while corporate receipts were up $218 million.
Muschinske said higher corperate tax revenue also resulted from an accounting change at the department.
“The bulk of it has been the tax increase, though there’s always going to be a little bit of delay,” said Muschinski.
Information from: The State Journal-Register, http://www.sj-r.com