97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3230

 

Introduced 2/24/2011, by Rep. Sidney H. Mathias

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/901  from Ch. 120, par. 9-901

    Amends the Illinois Income Tax Act. Provides that the State Treasurer shall transfer each month from the General Revenue Fund to the Local Government Distributive Fund an amount equal to 1/10 of the net revenue realized under Act during the preceding month. Removes language pertaining to the amount of transfers from the General Revenue Fund to the Local Government Distributive Fund beginning February 1, 2015. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 901 as follows:
 
6    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
7    Sec. 901. Collection Authority.
8    (a) In general.
9    The Department shall collect the taxes imposed by this Act.
10The Department shall collect certified past due child support
11amounts under Section 2505-650 of the Department of Revenue Law
12(20 ILCS 2505/2505-650). Except as provided in subsections (c),
13(e), (f), and (g) of this Section, money collected pursuant to
14subsections (a) and (b) of Section 201 of this Act shall be
15paid into the General Revenue Fund in the State treasury; money
16collected pursuant to subsections (c) and (d) of Section 201 of
17this Act shall be paid into the Personal Property Tax
18Replacement Fund, a special fund in the State Treasury; and
19money collected under Section 2505-650 of the Department of
20Revenue Law (20 ILCS 2505/2505-650) shall be paid into the
21Child Support Enforcement Trust Fund, a special fund outside
22the State Treasury, or to the State Disbursement Unit
23established under Section 10-26 of the Illinois Public Aid

 

 

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1Code, as directed by the Department of Healthcare and Family
2Services.
3    (b) Local Government Distributive Fund.
4    Beginning August 1, 1969, and continuing through June 30,
51994, the Treasurer shall transfer each month from the General
6Revenue Fund to a special fund in the State treasury, to be
7known as the "Local Government Distributive Fund", an amount
8equal to 1/12 of the net revenue realized from the tax imposed
9by subsections (a) and (b) of Section 201 of this Act during
10the preceding month. Beginning July 1, 1994, and continuing
11through June 30, 1995, the Treasurer shall transfer each month
12from the General Revenue Fund to the Local Government
13Distributive Fund an amount equal to 1/11 of the net revenue
14realized from the tax imposed by subsections (a) and (b) of
15Section 201 of this Act during the preceding month. Beginning
16July 1, 1995 and continuing through January 31, 2011, the
17Treasurer shall transfer each month from the General Revenue
18Fund to the Local Government Distributive Fund an amount equal
19to the net of (i) 1/10 of the net revenue realized from the tax
20imposed by subsections (a) and (b) of Section 201 of the
21Illinois Income Tax Act during the preceding month (ii) minus,
22beginning July 1, 2003 and ending June 30, 2004, $6,666,666,
23and beginning July 1, 2004, zero. Beginning February 1, 2011,
24and continuing through January 31, 2015 the effective date of
25this amendatory Act of the 97th General Assembly, the Treasurer
26shall transfer each month from the General Revenue Fund to the

 

 

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1Local Government Distributive Fund an amount equal to the sum
2of (i) 6% (10% of the ratio of the 3% individual income tax
3rate prior to 2011 to the 5% individual income tax rate after
42010) of the net revenue realized from the tax imposed by
5subsections (a) and (b) of Section 201 of this Act upon
6individuals, trusts, and estates during the preceding month and
7(ii) 6.86% (10% of the ratio of the 4.8% corporate income tax
8rate prior to 2011 to the 7% corporate income tax rate after
92010) of the net revenue realized from the tax imposed by
10subsections (a) and (b) of Section 201 of this Act upon
11corporations during the preceding month. Beginning upon the
12effective date of this amendatory Act of the 97th General
13Assembly, the Treasurer shall transfer each month from the
14General Revenue Fund to the Local Government Distributive Fund
15an amount equal to 1/10 of the net revenue realized from the
16tax imposed by subsections (a) and (b) of Section 201 of this
17Act during the preceding month. Beginning February 1, 2015 and
18continuing through January 31, 2025, the Treasurer shall
19transfer each month from the General Revenue Fund to the Local
20Government Distributive Fund an amount equal to the sum of (i)
218% (10% of the ratio of the 3% individual income tax rate prior
22to 2011 to the 3.75% individual income tax rate after 2014) of
23the net revenue realized from the tax imposed by subsections
24(a) and (b) of Section 201 of this Act upon individuals,
25trusts, and estates during the preceding month and (ii) 9.14%
26(10% of the ratio of the 4.8% corporate income tax rate prior

 

 

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1to 2011 to the 5.25% corporate income tax rate after 2014) of
2the net revenue realized from the tax imposed by subsections
3(a) and (b) of Section 201 of this Act upon corporations during
4the preceding month. Beginning February 1, 2025, the Treasurer
5shall transfer each month from the General Revenue Fund to the
6Local Government Distributive Fund an amount equal to the sum
7of (i) 9.23% (10% of the ratio of the 3% individual income tax
8rate prior to 2011 to the 3.25% individual income tax rate
9after 2024) of the net revenue realized from the tax imposed by
10subsections (a) and (b) of Section 201 of this Act upon
11individuals, trusts, and estates during the preceding month and
12(ii) 10% of the net revenue realized from the tax imposed by
13subsections (a) and (b) of Section 201 of this Act upon
14corporations during the preceding month. Net revenue realized
15for a month shall be defined as the revenue from the tax
16imposed by subsections (a) and (b) of Section 201 of this Act
17which is deposited in the General Revenue Fund, the Education
18Assistance Fund, the Income Tax Surcharge Local Government
19Distributive Fund, the Fund for the Advancement of Education,
20and the Commitment to Human Services Fund during the month
21minus the amount paid out of the General Revenue Fund in State
22warrants during that same month as refunds to taxpayers for
23overpayment of liability under the tax imposed by subsections
24(a) and (b) of Section 201 of this Act.
25    (c) Deposits Into Income Tax Refund Fund.
26        (1) Beginning on January 1, 1989 and thereafter, the

 

 

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1    Department shall deposit a percentage of the amounts
2    collected pursuant to subsections (a) and (b)(1), (2), and
3    (3), of Section 201 of this Act into a fund in the State
4    treasury known as the Income Tax Refund Fund. The
5    Department shall deposit 6% of such amounts during the
6    period beginning January 1, 1989 and ending on June 30,
7    1989. Beginning with State fiscal year 1990 and for each
8    fiscal year thereafter, the percentage deposited into the
9    Income Tax Refund Fund during a fiscal year shall be the
10    Annual Percentage. For fiscal years 1999 through 2001, the
11    Annual Percentage shall be 7.1%. For fiscal year 2003, the
12    Annual Percentage shall be 8%. For fiscal year 2004, the
13    Annual Percentage shall be 11.7%. Upon the effective date
14    of this amendatory Act of the 93rd General Assembly, the
15    Annual Percentage shall be 10% for fiscal year 2005. For
16    fiscal year 2006, the Annual Percentage shall be 9.75%. For
17    fiscal year 2007, the Annual Percentage shall be 9.75%. For
18    fiscal year 2008, the Annual Percentage shall be 7.75%. For
19    fiscal year 2009, the Annual Percentage shall be 9.75%. For
20    fiscal year 2010, the Annual Percentage shall be 9.75%. For
21    fiscal year 2011, the Annual Percentage shall be 8.75%. For
22    all other fiscal years, the Annual Percentage shall be
23    calculated as a fraction, the numerator of which shall be
24    the amount of refunds approved for payment by the
25    Department during the preceding fiscal year as a result of
26    overpayment of tax liability under subsections (a) and

 

 

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1    (b)(1), (2), and (3) of Section 201 of this Act plus the
2    amount of such refunds remaining approved but unpaid at the
3    end of the preceding fiscal year, minus the amounts
4    transferred into the Income Tax Refund Fund from the
5    Tobacco Settlement Recovery Fund, and the denominator of
6    which shall be the amounts which will be collected pursuant
7    to subsections (a) and (b)(1), (2), and (3) of Section 201
8    of this Act during the preceding fiscal year; except that
9    in State fiscal year 2002, the Annual Percentage shall in
10    no event exceed 7.6%. The Director of Revenue shall certify
11    the Annual Percentage to the Comptroller on the last
12    business day of the fiscal year immediately preceding the
13    fiscal year for which it is to be effective.
14        (2) Beginning on January 1, 1989 and thereafter, the
15    Department shall deposit a percentage of the amounts
16    collected pursuant to subsections (a) and (b)(6), (7), and
17    (8), (c) and (d) of Section 201 of this Act into a fund in
18    the State treasury known as the Income Tax Refund Fund. The
19    Department shall deposit 18% of such amounts during the
20    period beginning January 1, 1989 and ending on June 30,
21    1989. Beginning with State fiscal year 1990 and for each
22    fiscal year thereafter, the percentage deposited into the
23    Income Tax Refund Fund during a fiscal year shall be the
24    Annual Percentage. For fiscal years 1999, 2000, and 2001,
25    the Annual Percentage shall be 19%. For fiscal year 2003,
26    the Annual Percentage shall be 27%. For fiscal year 2004,

 

 

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1    the Annual Percentage shall be 32%. Upon the effective date
2    of this amendatory Act of the 93rd General Assembly, the
3    Annual Percentage shall be 24% for fiscal year 2005. For
4    fiscal year 2006, the Annual Percentage shall be 20%. For
5    fiscal year 2007, the Annual Percentage shall be 17.5%. For
6    fiscal year 2008, the Annual Percentage shall be 15.5%. For
7    fiscal year 2009, the Annual Percentage shall be 17.5%. For
8    fiscal year 2010, the Annual Percentage shall be 17.5%. For
9    fiscal year 2011, the Annual Percentage shall be 17.5%. For
10    all other fiscal years, the Annual Percentage shall be
11    calculated as a fraction, the numerator of which shall be
12    the amount of refunds approved for payment by the
13    Department during the preceding fiscal year as a result of
14    overpayment of tax liability under subsections (a) and
15    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
16    Act plus the amount of such refunds remaining approved but
17    unpaid at the end of the preceding fiscal year, and the
18    denominator of which shall be the amounts which will be
19    collected pursuant to subsections (a) and (b)(6), (7), and
20    (8), (c) and (d) of Section 201 of this Act during the
21    preceding fiscal year; except that in State fiscal year
22    2002, the Annual Percentage shall in no event exceed 23%.
23    The Director of Revenue shall certify the Annual Percentage
24    to the Comptroller on the last business day of the fiscal
25    year immediately preceding the fiscal year for which it is
26    to be effective.

 

 

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1        (3) The Comptroller shall order transferred and the
2    Treasurer shall transfer from the Tobacco Settlement
3    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
4    in January, 2001, (ii) $35,000,000 in January, 2002, and
5    (iii) $35,000,000 in January, 2003.
6    (d) Expenditures from Income Tax Refund Fund.
7        (1) Beginning January 1, 1989, money in the Income Tax
8    Refund Fund shall be expended exclusively for the purpose
9    of paying refunds resulting from overpayment of tax
10    liability under Section 201 of this Act, for paying rebates
11    under Section 208.1 in the event that the amounts in the
12    Homeowners' Tax Relief Fund are insufficient for that
13    purpose, and for making transfers pursuant to this
14    subsection (d).
15        (2) The Director shall order payment of refunds
16    resulting from overpayment of tax liability under Section
17    201 of this Act from the Income Tax Refund Fund only to the
18    extent that amounts collected pursuant to Section 201 of
19    this Act and transfers pursuant to this subsection (d) and
20    item (3) of subsection (c) have been deposited and retained
21    in the Fund.
22        (3) As soon as possible after the end of each fiscal
23    year, the Director shall order transferred and the State
24    Treasurer and State Comptroller shall transfer from the
25    Income Tax Refund Fund to the Personal Property Tax
26    Replacement Fund an amount, certified by the Director to

 

 

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1    the Comptroller, equal to the excess of the amount
2    collected pursuant to subsections (c) and (d) of Section
3    201 of this Act deposited into the Income Tax Refund Fund
4    during the fiscal year over the amount of refunds resulting
5    from overpayment of tax liability under subsections (c) and
6    (d) of Section 201 of this Act paid from the Income Tax
7    Refund Fund during the fiscal year.
8        (4) As soon as possible after the end of each fiscal
9    year, the Director shall order transferred and the State
10    Treasurer and State Comptroller shall transfer from the
11    Personal Property Tax Replacement Fund to the Income Tax
12    Refund Fund an amount, certified by the Director to the
13    Comptroller, equal to the excess of the amount of refunds
14    resulting from overpayment of tax liability under
15    subsections (c) and (d) of Section 201 of this Act paid
16    from the Income Tax Refund Fund during the fiscal year over
17    the amount collected pursuant to subsections (c) and (d) of
18    Section 201 of this Act deposited into the Income Tax
19    Refund Fund during the fiscal year.
20        (4.5) As soon as possible after the end of fiscal year
21    1999 and of each fiscal year thereafter, the Director shall
22    order transferred and the State Treasurer and State
23    Comptroller shall transfer from the Income Tax Refund Fund
24    to the General Revenue Fund any surplus remaining in the
25    Income Tax Refund Fund as of the end of such fiscal year;
26    excluding for fiscal years 2000, 2001, and 2002 amounts

 

 

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1    attributable to transfers under item (3) of subsection (c)
2    less refunds resulting from the earned income tax credit.
3        (5) This Act shall constitute an irrevocable and
4    continuing appropriation from the Income Tax Refund Fund
5    for the purpose of paying refunds upon the order of the
6    Director in accordance with the provisions of this Section.
7    (e) Deposits into the Education Assistance Fund and the
8Income Tax Surcharge Local Government Distributive Fund.
9    On July 1, 1991, and thereafter, of the amounts collected
10pursuant to subsections (a) and (b) of Section 201 of this Act,
11minus deposits into the Income Tax Refund Fund, the Department
12shall deposit 7.3% into the Education Assistance Fund in the
13State Treasury. Beginning July 1, 1991, and continuing through
14January 31, 1993, of the amounts collected pursuant to
15subsections (a) and (b) of Section 201 of the Illinois Income
16Tax Act, minus deposits into the Income Tax Refund Fund, the
17Department shall deposit 3.0% into the Income Tax Surcharge
18Local Government Distributive Fund in the State Treasury.
19Beginning February 1, 1993 and continuing through June 30,
201993, of the amounts collected pursuant to subsections (a) and
21(b) of Section 201 of the Illinois Income Tax Act, minus
22deposits into the Income Tax Refund Fund, the Department shall
23deposit 4.4% into the Income Tax Surcharge Local Government
24Distributive Fund in the State Treasury. Beginning July 1,
251993, and continuing through June 30, 1994, of the amounts
26collected under subsections (a) and (b) of Section 201 of this

 

 

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1Act, minus deposits into the Income Tax Refund Fund, the
2Department shall deposit 1.475% into the Income Tax Surcharge
3Local Government Distributive Fund in the State Treasury.
4    (f) Deposits into the Fund for the Advancement of
5Education. Beginning February 1, 2015, the Department shall
6deposit the following portions of the revenue realized from the
7tax imposed upon individuals, trusts, and estates by
8subsections (a) and (b) of Section 201 of this Act during the
9preceding month, minus deposits into the Income Tax Refund
10Fund, into the Fund for the Advancement of Education:
11        (1) beginning February 1, 2015, and prior to February
12    1, 2025, 1/30; and
13        (2) beginning February 1, 2025, 1/26.
14    If the rate of tax imposed by subsection (a) and (b) of
15Section 201 is reduced pursuant to Section 201.5 of this Act,
16the Department shall not make the deposits required by this
17subsection (f) on or after the effective date of the reduction.
18    (g) Deposits into the Commitment to Human Services Fund.
19Beginning February 1, 2015, the Department shall deposit the
20following portions of the revenue realized from the tax imposed
21upon individuals, trusts, and estates by subsections (a) and
22(b) of Section 201 of this Act during the preceding month,
23minus deposits into the Income Tax Refund Fund, into the
24Commitment to Human Services Fund:
25        (1) beginning February 1, 2015, and prior to February
26    1, 2025, 1/30; and

 

 

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1        (2) beginning February 1, 2025, 1/26.
2    If the rate of tax imposed by subsection (a) and (b) of
3Section 201 is reduced pursuant to Section 201.5 of this Act,
4the Department shall not make the deposits required by this
5subsection (g) on or after the effective date of the reduction.
6(Source: P.A. 95-707, eff. 1-11-08; 95-744, eff. 7-18-08;
796-45, eff. 7-15-09; 96-328, eff. 8-11-09; 96-959, eff. 7-1-10;
896-1496, eff. 1-13-11.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.