100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB1104

 

Introduced , by Rep. Michael J. Madigan

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 115/12  from Ch. 85, par. 616

    Amends the State Revenue Sharing Act. Makes a technical change in a Section concerning the Personal Property Tax Replacement Fund.


LRB100 02268 MLM 12273 b

 

 

A BILL FOR

 

HB1104LRB100 02268 MLM 12273 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Revenue Sharing Act is amended by
5changing Section 12 as follows:
 
6    (30 ILCS 115/12)  (from Ch. 85, par. 616)
7    Sec. 12. Personal Property Tax Replacement Fund. There is
8hereby created the the Personal Property Tax Replacement Fund,
9a special fund in the State Treasury into which shall be paid
10all revenue realized:
11    (a) all amounts realized from the additional personal
12property tax replacement income tax imposed by subsections (c)
13and (d) of Section 201 of the Illinois Income Tax Act, except
14for those amounts deposited into the Income Tax Refund Fund
15pursuant to subsection (c) of Section 901 of the Illinois
16Income Tax Act; and
17    (b) all amounts realized from the additional personal
18property replacement invested capital taxes imposed by Section
192a.1 of the Messages Tax Act, Section 2a.1 of the Gas Revenue
20Tax Act, Section 2a.1 of the Public Utilities Revenue Act, and
21Section 3 of the Water Company Invested Capital Tax Act, and
22amounts payable to the Department of Revenue under the
23Telecommunications Infrastructure Maintenance Fee Act.

 

 

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1    As soon as may be after the end of each month, the
2Department of Revenue shall certify to the Treasurer and the
3Comptroller the amount of all refunds paid out of the General
4Revenue Fund through the preceding month on account of
5overpayment of liability on taxes paid into the Personal
6Property Tax Replacement Fund. Upon receipt of such
7certification, the Treasurer and the Comptroller shall
8transfer the amount so certified from the Personal Property Tax
9Replacement Fund into the General Revenue Fund.
10    The payments of revenue into the Personal Property Tax
11Replacement Fund shall be used exclusively for distribution to
12taxing districts, regional offices and officials, and local
13officials as provided in this Section and in the School Code,
14payment of the ordinary and contingent expenses of the Property
15Tax Appeal Board, payment of the expenses of the Department of
16Revenue incurred in administering the collection and
17distribution of monies paid into the Personal Property Tax
18Replacement Fund and transfers due to refunds to taxpayers for
19overpayment of liability for taxes paid into the Personal
20Property Tax Replacement Fund.
21    In addition, moneys in the Personal Property Tax
22Replacement Fund may be used to pay any of the following: (i)
23salary, stipends, and additional compensation as provided by
24law for chief election clerks, county clerks, and county
25recorders; (ii) costs associated with regional offices of
26education and educational service centers; (iii)

 

 

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1reimbursements payable by the State Board of Elections under
2Section 4-25, 5-35, 6-71, 13-10, 13-10a, or 13-11 of the
3Election Code; (iv) expenses of the Illinois Educational Labor
4Relations Board; and (v) salary, personal services, and
5additional compensation as provided by law for court reporters
6under the Court Reporters Act.
7    As soon as may be after the effective date of this
8amendatory Act of 1980, the Department of Revenue shall certify
9to the Treasurer the amount of net replacement revenue paid
10into the General Revenue Fund prior to that effective date from
11the additional tax imposed by Section 2a.1 of the Messages Tax
12Act; Section 2a.1 of the Gas Revenue Tax Act; Section 2a.1 of
13the Public Utilities Revenue Act; Section 3 of the Water
14Company Invested Capital Tax Act; amounts collected by the
15Department of Revenue under the Telecommunications
16Infrastructure Maintenance Fee Act; and the additional
17personal property tax replacement income tax imposed by the
18Illinois Income Tax Act, as amended by Public Act 81-1st
19Special Session-1. Net replacement revenue shall be defined as
20the total amount paid into and remaining in the General Revenue
21Fund as a result of those Acts minus the amount outstanding and
22obligated from the General Revenue Fund in state vouchers or
23warrants prior to the effective date of this amendatory Act of
241980 as refunds to taxpayers for overpayment of liability under
25those Acts.
26    All interest earned by monies accumulated in the Personal

 

 

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1Property Tax Replacement Fund shall be deposited in such Fund.
2All amounts allocated pursuant to this Section are appropriated
3on a continuing basis.
4    Prior to December 31, 1980, as soon as may be after the end
5of each quarter beginning with the quarter ending December 31,
61979, and on and after December 31, 1980, as soon as may be
7after January 1, March 1, April 1, May 1, July 1, August 1,
8October 1 and December 1 of each year, the Department of
9Revenue shall allocate to each taxing district as defined in
10Section 1-150 of the Property Tax Code, in accordance with the
11provisions of paragraph (2) of this Section the portion of the
12funds held in the Personal Property Tax Replacement Fund which
13is required to be distributed, as provided in paragraph (1),
14for each quarter. Provided, however, under no circumstances
15shall any taxing district during each of the first two years of
16distribution of the taxes imposed by this amendatory Act of
171979 be entitled to an annual allocation which is less than the
18funds such taxing district collected from the 1978 personal
19property tax. Provided further that under no circumstances
20shall any taxing district during the third year of distribution
21of the taxes imposed by this amendatory Act of 1979 receive
22less than 60% of the funds such taxing district collected from
23the 1978 personal property tax. In the event that the total of
24the allocations made as above provided for all taxing
25districts, during either of such 3 years, exceeds the amount
26available for distribution the allocation of each taxing

 

 

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1district shall be proportionately reduced. Except as provided
2in Section 13 of this Act, the Department shall then certify,
3pursuant to appropriation, such allocations to the State
4Comptroller who shall pay over to the several taxing districts
5the respective amounts allocated to them.
6    Any township which receives an allocation based in whole or
7in part upon personal property taxes which it levied pursuant
8to Section 6-507 or 6-512 of the Illinois Highway Code and
9which was previously required to be paid over to a municipality
10shall immediately pay over to that municipality a proportionate
11share of the personal property replacement funds which such
12township receives.
13    Any municipality or township, other than a municipality
14with a population in excess of 500,000, which receives an
15allocation based in whole or in part on personal property taxes
16which it levied pursuant to Sections 3-1, 3-4 and 3-6 of the
17Illinois Local Library Act and which was previously required to
18be paid over to a public library shall immediately pay over to
19that library a proportionate share of the personal property tax
20replacement funds which such municipality or township
21receives; provided that if such a public library has converted
22to a library organized under The Illinois Public Library
23District Act, regardless of whether such conversion has
24occurred on, after or before January 1, 1988, such
25proportionate share shall be immediately paid over to the
26library district which maintains and operates the library.

 

 

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1However, any library that has converted prior to January 1,
21988, and which hitherto has not received the personal property
3tax replacement funds, shall receive such funds commencing on
4January 1, 1988.
5    Any township which receives an allocation based in whole or
6in part on personal property taxes which it levied pursuant to
7Section 1c of the Public Graveyards Act and which taxes were
8previously required to be paid over to or used for such public
9cemetery or cemeteries shall immediately pay over to or use for
10such public cemetery or cemeteries a proportionate share of the
11personal property tax replacement funds which the township
12receives.
13    Any taxing district which receives an allocation based in
14whole or in part upon personal property taxes which it levied
15for another governmental body or school district in Cook County
16in 1976 or for another governmental body or school district in
17the remainder of the State in 1977 shall immediately pay over
18to that governmental body or school district the amount of
19personal property replacement funds which such governmental
20body or school district would receive directly under the
21provisions of paragraph (2) of this Section, had it levied its
22own taxes.
23        (1) The portion of the Personal Property Tax
24    Replacement Fund required to be distributed as of the time
25    allocation is required to be made shall be the amount
26    available in such Fund as of the time allocation is

 

 

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1    required to be made.
2        The amount available for distribution shall be the
3    total amount in the fund at such time minus the necessary
4    administrative and other authorized expenses as limited by
5    the appropriation and the amount determined by: (a) $2.8
6    million for fiscal year 1981; (b) for fiscal year 1982,
7    .54% of the funds distributed from the fund during the
8    preceding fiscal year; (c) for fiscal year 1983 through
9    fiscal year 1988, .54% of the funds distributed from the
10    fund during the preceding fiscal year less .02% of such
11    fund for fiscal year 1983 and less .02% of such funds for
12    each fiscal year thereafter; (d) for fiscal year 1989
13    through fiscal year 2011 no more than 105% of the actual
14    administrative expenses of the prior fiscal year; (e) for
15    fiscal year 2012 and beyond, a sufficient amount to pay (i)
16    stipends, additional compensation, salary reimbursements,
17    and other amounts directed to be paid out of this Fund for
18    local officials as authorized or required by statute and
19    (ii) no more than 105% of the actual administrative
20    expenses of the prior fiscal year, including payment of the
21    ordinary and contingent expenses of the Property Tax Appeal
22    Board and payment of the expenses of the Department of
23    Revenue incurred in administering the collection and
24    distribution of moneys paid into the Fund; or (f) for
25    fiscal years 2012 and 2013 only, a sufficient amount to pay
26    stipends, additional compensation, salary reimbursements,

 

 

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1    and other amounts directed to be paid out of this Fund for
2    regional offices and officials as authorized or required by
3    statute. Such portion of the fund shall be determined after
4    the transfer into the General Revenue Fund due to refunds,
5    if any, paid from the General Revenue Fund during the
6    preceding quarter. If at any time, for any reason, there is
7    insufficient amount in the Personal Property Tax
8    Replacement Fund for payments for regional offices and
9    officials or local officials or payment of costs of
10    administration or for transfers due to refunds at the end
11    of any particular month, the amount of such insufficiency
12    shall be carried over for the purposes of payments for
13    regional offices and officials, local officials, transfers
14    into the General Revenue Fund, and costs of administration
15    to the following month or months. Net replacement revenue
16    held, and defined above, shall be transferred by the
17    Treasurer and Comptroller to the Personal Property Tax
18    Replacement Fund within 10 days of such certification.
19        (2) Each quarterly allocation shall first be
20    apportioned in the following manner: 51.65% for taxing
21    districts in Cook County and 48.35% for taxing districts in
22    the remainder of the State.
23    The Personal Property Replacement Ratio of each taxing
24district outside Cook County shall be the ratio which the Tax
25Base of that taxing district bears to the Downstate Tax Base.
26The Tax Base of each taxing district outside of Cook County is

 

 

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1the personal property tax collections for that taxing district
2for the 1977 tax year. The Downstate Tax Base is the personal
3property tax collections for all taxing districts in the State
4outside of Cook County for the 1977 tax year. The Department of
5Revenue shall have authority to review for accuracy and
6completeness the personal property tax collections for each
7taxing district outside Cook County for the 1977 tax year.
8    The Personal Property Replacement Ratio of each Cook County
9taxing district shall be the ratio which the Tax Base of that
10taxing district bears to the Cook County Tax Base. The Tax Base
11of each Cook County taxing district is the personal property
12tax collections for that taxing district for the 1976 tax year.
13The Cook County Tax Base is the personal property tax
14collections for all taxing districts in Cook County for the
151976 tax year. The Department of Revenue shall have authority
16to review for accuracy and completeness the personal property
17tax collections for each taxing district within Cook County for
18the 1976 tax year.
19    For all purposes of this Section 12, amounts paid to a
20taxing district for such tax years as may be applicable by a
21foreign corporation under the provisions of Section 7-202 of
22the Public Utilities Act, as amended, shall be deemed to be
23personal property taxes collected by such taxing district for
24such tax years as may be applicable. The Director shall
25determine from the Illinois Commerce Commission, for any tax
26year as may be applicable, the amounts so paid by any such

 

 

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1foreign corporation to any and all taxing districts. The
2Illinois Commerce Commission shall furnish such information to
3the Director. For all purposes of this Section 12, the Director
4shall deem such amounts to be collected personal property taxes
5of each such taxing district for the applicable tax year or
6years.
7    Taxing districts located both in Cook County and in one or
8more other counties shall receive both a Cook County allocation
9and a Downstate allocation determined in the same way as all
10other taxing districts.
11    If any taxing district in existence on July 1, 1979 ceases
12to exist, or discontinues its operations, its Tax Base shall
13thereafter be deemed to be zero. If the powers, duties and
14obligations of the discontinued taxing district are assumed by
15another taxing district, the Tax Base of the discontinued
16taxing district shall be added to the Tax Base of the taxing
17district assuming such powers, duties and obligations.
18    If two or more taxing districts in existence on July 1,
191979, or a successor or successors thereto shall consolidate
20into one taxing district, the Tax Base of such consolidated
21taxing district shall be the sum of the Tax Bases of each of
22the taxing districts which have consolidated.
23    If a single taxing district in existence on July 1, 1979,
24or a successor or successors thereto shall be divided into two
25or more separate taxing districts, the tax base of the taxing
26district so divided shall be allocated to each of the resulting

 

 

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1taxing districts in proportion to the then current equalized
2assessed value of each resulting taxing district.
3    If a portion of the territory of a taxing district is
4disconnected and annexed to another taxing district of the same
5type, the Tax Base of the taxing district from which
6disconnection was made shall be reduced in proportion to the
7then current equalized assessed value of the disconnected
8territory as compared with the then current equalized assessed
9value within the entire territory of the taxing district prior
10to disconnection, and the amount of such reduction shall be
11added to the Tax Base of the taxing district to which
12annexation is made.
13    If a community college district is created after July 1,
141979, beginning on the effective date of this amendatory Act of
151995, its Tax Base shall be 3.5% of the sum of the personal
16property tax collected for the 1977 tax year within the
17territorial jurisdiction of the district.
18    The amounts allocated and paid to taxing districts pursuant
19to the provisions of this amendatory Act of 1979 shall be
20deemed to be substitute revenues for the revenues derived from
21taxes imposed on personal property pursuant to the provisions
22of the "Revenue Act of 1939" or "An Act for the assessment and
23taxation of private car line companies", approved July 22,
241943, as amended, or Section 414 of the Illinois Insurance
25Code, prior to the abolition of such taxes and shall be used
26for the same purposes as the revenues derived from ad valorem

 

 

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1taxes on real estate.
2    Monies received by any taxing districts from the Personal
3Property Tax Replacement Fund shall be first applied toward
4payment of the proportionate amount of debt service which was
5previously levied and collected from extensions against
6personal property on bonds outstanding as of December 31, 1978
7and next applied toward payment of the proportionate share of
8the pension or retirement obligations of the taxing district
9which were previously levied and collected from extensions
10against personal property. For each such outstanding bond
11issue, the County Clerk shall determine the percentage of the
12debt service which was collected from extensions against real
13estate in the taxing district for 1978 taxes payable in 1979,
14as related to the total amount of such levies and collections
15from extensions against both real and personal property. For
161979 and subsequent years' taxes, the County Clerk shall levy
17and extend taxes against the real estate of each taxing
18district which will yield the said percentage or percentages of
19the debt service on such outstanding bonds. The balance of the
20amount necessary to fully pay such debt service shall
21constitute a first and prior lien upon the monies received by
22each such taxing district through the Personal Property Tax
23Replacement Fund and shall be first applied or set aside for
24such purpose. In counties having fewer than 3,000,000
25inhabitants, the amendments to this paragraph as made by this
26amendatory Act of 1980 shall be first applicable to 1980 taxes

 

 

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1to be collected in 1981.
2(Source: P.A. 97-72, eff. 7-1-11; 97-619, eff. 11-14-11;
397-732, eff. 6-30-12; 98-24, eff. 6-19-13; 98-674, eff.
46-30-14.)