97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB2932

 

Introduced 2/23/2011, by Rep. Susana A. Mendoza

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 405/7  from Ch. 120, par. 405A-7
35 ILCS 405/14  from Ch. 120, par. 405A-14

    Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that once an application for a refund is properly filed, the State shall make a refund of no less than half of the amount owed within 12 months after receipt of the application and shall make full payment within 24 months after receipt of the application. Provides that, if payment of a refund is not issued to the payee within a 60-day period following receipt of the application, an interest penalty of 0.5% of any amount unpaid shall be added for each month until final payment is made. Effective immediately.


LRB097 09027 HLH 49161 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2932LRB097 09027 HLH 49161 b

1    AN ACT concerning revenue.
 
2    WHEREAS, Under the Illinois Estate and Generation-Skipping
3Transfer Tax Act (the Act), certain taxes are due to this State
4with respect to every taxable transfer involving transferred
5property having a tax situs within this State; and
6    WHEREAS, There is also a mechanism under the Act for a
7qualified person or entity to become entitled to a refund of
8tax or interest paid on such taxes; and
9    WHEREAS, A qualified person or entity entitled to a refund
10under this Act is treated disparately from any other payee of
11the State, insofar as there is no mandate for prompt repayment
12of this obligation and no interest accrues on this obligation;
13and
14    WHEREAS, The General Assembly finds that this bill owed by
15the State to the payee shall be treated identically to any
16other State obligation for payment; therefore
 
17    Be it enacted by the People of the State of Illinois,
18represented in the General Assembly:
 
19    Section 5. The Illinois Estate and Generation-Skipping
20Transfer Tax Act is amended by changing Sections 7 and 14 as
21follows:
 
22    (35 ILCS 405/7)  (from Ch. 120, par. 405A-7)

 

 

HB2932- 2 -LRB097 09027 HLH 49161 b

1    Sec. 7. Supplemental returns; refunds.
2    (a) Supplemental returns. If the State tax credit is
3increased after the filing of the Illinois transfer tax return,
4the person or persons required to file the Illinois transfer
5tax return and pay the Illinois transfer tax shall file a
6supplemental Illinois transfer tax return. The supplemental
7return shall be filed and the additional tax shall be paid in
8the same place and manner as provided in Section 6 of this Act.
9The due date for the supplemental return and for the payment of
10the additional tax reported in the supplemental return shall be
11no later than 3 months after the earliest of:
12        (1) the date an amended federal return is filed;
13        (2) the date an increase in the federal transfer tax is
14    paid or accepted in writing;
15        (3) the date the Internal Revenue Service issues a
16    request for evidence of payment of the State tax credit; or
17        (4) the date that any increase to the taxable estate is
18    discovered;
19provided that if the federal transfer tax may be deferred or
20paid in installments, then part or all of the additional
21Illinois transfer tax may be deferred or paid in installments
22under rules consistent with subsection (b) of Section 6 of this
23Act.
24    (b) Refunds. If the state tax credit is reduced after the
25filing of the Illinois transfer tax return, the person who paid
26the Illinois transfer tax (or the person upon whom the burden

 

 

HB2932- 3 -LRB097 09027 HLH 49161 b

1of payment fell) shall file an amended Illinois transfer tax
2return and shall be entitled to a refund of tax or interest
3paid on the Illinois transfer tax. No interest shall be paid on
4any amount refunded under this subsection.
5(Source: P.A. 93-30, eff. 6-20-03.)
 
6    (35 ILCS 405/14)  (from Ch. 120, par. 405A-14)
7    Sec. 14. Statute of limitations; claims for refund.
8    (a) In case it appears that the amount paid with respect to
9any taxable transfer is more than the amount due under this
10Act, then the State Treasurer shall refund the excess to the
11person entitled to the refund, provided that no amount shall be
12refunded unless application for the refund is filed with the
13State Treasurer no later than one year after the last date
14allowable under the Internal Revenue Code for filing a claim
15for refund of any part of the related federal transfer tax or,
16if later, within one year after the date of final determination
17of the related federal transfer tax.
18    (b) Once an application for refund is properly filed with
19the State Treasurer as provided in subsection (a), the State
20shall make a refund of no less than half of the amount
21originally owed within 12 months after receipt of the properly
22filed application and shall make full payment within 24 months
23after receipt of the properly filed application. This
24subsection applies to all unpaid refunds, including refunds
25that are outstanding and unpaid at the time this amendatory Act

 

 

HB2932- 4 -LRB097 09027 HLH 49161 b

1of the 97th General Assembly becomes law.
2    (c) Should the Treasurer have an insufficient
3appropriation to make a full refund in accordance with
4subsection (b), the Comptroller shall order transferred and the
5Treasurer shall transfer sufficient funds from the proceeds
6derived under this Act to the Estate Tax Refund appropriation
7line within the Treasurer's office in order to allow the
8Treasurer to comply with subsection (b).
9    (d) If payment of a refund pursuant to a properly filed
10application for refund is not issued to the payee within a
1160-day period following receipt of the application, an interest
12penalty of 0.5% of any amount unpaid shall be added for each
13month or fraction thereof after the end of this 60-day period
14until final payment is made. If full payment is not issued to
15the payee within the 24-month period under subsection (b), an
16interest penalty of 1.0% of any amount unpaid shall be added
17for each month or fraction thereof after the end of the
1824-month period until final payment is made.
19(Source: P.A. 86-737.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.