Bill > HB5215

This bill, titled the "Extremely High Wealth Mark-to-Market Tax Act," mandates that resident taxpayers in Illinois with net assets of $1,000,000,000 or more must treat their assets as if they were sold at fair market value on December 31st of each taxable year, recognizing any gains or losses for tax purposes. This "mark-to-market" approach, meaning the current market value is used for tax calculations, applies to all assets owned by the taxpayer, including those held by their spouse, minor children, or certain trusts and estates, and even gifts made within the last five years. The bill specifies how to calculate the "basis" (the value of an asset for tax purposes) and defines "net assets" as total assets minus liabilities. For taxable years beginning on or after December 31, 2026, the amount of taxable gain is capped at 25% of the net assets exceeding $1,000,000,000, with provisions for a phase-in period and credits for taxes paid in other states. The bill also includes administrative details for the Department of Revenue to implement these changes and amends the Illinois Income Tax Act to conform to these new provisions, with the law taking effect immediately upon becoming law.

https://www.ilga.gov/Legislation/BillStatus?DocNum=5215&GAID=18&DocTypeID=HB&SessionID=114&GA=104