Illinois 2025-2026 Regular Session

Illinois Senate Bill SJRCA0004

Introduced
2/5/25  

Caption

CONAMEND-INCOME TAX RATES

Summary

SJRCA0004 is a proposed Illinois constitutional amendment that would revise Article IX, Section 3, which governs state income taxation. The measure would remove the current constitutional requirement that any state income tax be imposed at a non-graduated rate, and instead authorize the General Assembly to set by law the rate or rates of any tax on or measured by income. In practical terms, this would open the door to a graduated income tax structure, rather than the current flat-rate framework. The proposal also retains a constitutional limit on the relationship between corporate and individual income tax rates. Under the amendment, the highest corporate income tax rate could not exceed the highest individual income tax rate by more than an 8-to-5 ratio. The resolution would be submitted to voters for approval or rejection at a general election occurring at least six months after adoption, and would take effect only if approved by the electorate.

Impact

If adopted, the amendment would change the Illinois Constitution’s restrictions on income taxation and give the legislature broader authority to enact multiple income tax rates, including graduated rates. It would alter the current rule that there may be only one state income tax on individuals and one on corporations, while preserving a constitutional cap on how much higher corporate rates may be than individual rates. The change would affect the General Assembly’s taxing power, future tax legislation, and taxpayers subject to state income tax, especially higher-income individuals and corporations.

Sentiment

Based on the bill text and available context, the measure appears to be presented as a structural tax-policy change rather than a narrow technical fix. No committee transcript or recorded votes are available in the provided materials, so there is no documented floor or committee debate to gauge support or opposition. The bill’s framing suggests it is intended to create flexibility for the legislature in designing income tax rates, which typically draws interest from both tax reform supporters and opponents concerned about rate increases or constitutional changes.

Contention

The main point of contention is the removal of the constitutional non-graduated-rate requirement, which would allow a graduated income tax and potentially higher rates on some taxpayers. Supporters would likely view this as giving lawmakers more flexibility and potentially making the tax system more progressive, while opponents may argue it could lead to higher taxes, reduced predictability, or greater burdens on individuals and businesses. Another likely issue is the corporate-to-individual rate ratio, which preserves a limit but still permits differential treatment between corporate and individual taxpayers.

Companion Bills

No companion bills found.

Previously Filed As

IL HJRCA0016

CONAMEND-INCOME TAX RATES

IL HJRCA0026

CONAMEND-INCOME TAX

IL HJRCA0021

CONAMEND-REVENUE

IL HJRCA0006

CONAMEND-EMINENT DOMAIN

IL HJRCA0004

CONAMEND-RECALL OFFICIALS

IL SB3658

INCOME TAX RATES-CREDITS

IL SJRCA0002

CONAMEND-BUDGET FIRST

IL HJRCA0015

CONAMEND-BALANCED BUDGET

IL HJRCA0010

CONAMEND-GA COMPENSATION

IL SJRCA0007

CONAMEND-VOTING QUALIFICATION

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