Legislation that would allow Illinois taxpayers to deduct more of their state and local taxes on their federal income returns is working its way through the State Senate after it cruised through the Illinois House of Representatives April 18.

The State and Local Tax Deduction Act was one of several issues state Sen. Julie Morrison (D-Deerfield) discussed with constituents during a town hall Saturday at the Highland Park Public Library.

Morrison also talked about the state budget, gun control, independently drawn legislative districts, raising the age for tobacco purchases to 21 and medical treatment of sexual assault victims, among other topics.

When the Internal Revenue Code was amended Dec. 22 limiting state and local tax deductions to $10,000, it meant Illinois residents who pay more than $10,000 in state income tax and local property tax could no longer deduct the entire amount, according to Morrison.

“We have so many people in my district who rely on the state and local tax deduction,” said Morrison, who is the chief senate sponsor of the bill.

Less than three weeks after the federal tax overhaul became law, state Rep. Jonathan Carroll (D-Northbrook) introduced his SALT Deduction Act Jan. 11. He said the law would create an Illinois Education Excellence Fund.

When people pay their state and local taxes, Carroll said the money will go into the fund. They will then get a tax credit they can use as a charitable donation restoring the full deduction they have had in the past. Similar action is under consideration in other states.

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