97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB4011

 

Introduced 1/18/2012, by Rep. Anthony DeLuca

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 115/1  from Ch. 85, par. 611
35 ILCS 5/901  from Ch. 120, par. 9-901

    Amends the State Revenue Sharing Act and the Illinois Income Tax Act. Provides that, from each income tax payment that the Department of Revenue receives, the Department must deposit certain amounts directly into the Local Government Distributive Fund (currently, the Department deposits the tax payment into the General Revenue Fund and the Treasurer then transfers a percentage of the net revenue to the Local Government Distributive Fund). Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4011LRB097 15664 HLH 60806 b

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 State Revenue Sharing Act is amended by
5changing Section 1 as follows:
 
6    (30 ILCS 115/1)  (from Ch. 85, par. 611)
7    Sec. 1. Local Government Distributive Fund.
8    (a) Through June 30, 1994, as soon as may be after the
9first day of each month the Department of Revenue shall certify
10to the Treasurer an amount equal to 1/12 of the net revenue
11realized from the tax imposed by subsections (a) and (b) of
12Section 201 of the Illinois Income Tax Act during the preceding
13month.
14    Beginning July 1, 1994, and continuing through June 30,
151995, as soon as may be after the first day of each month, the
16Department of Revenue shall certify to the Treasurer an amount
17equal to 1/11 of the net revenue realized from the tax imposed
18by subsections (a) and (b) of Section 201 of the Illinois
19Income Tax Act during the preceding month.
20    Beginning July 1, 1995 and continuing through December 31,
212012, as soon as may be after the first day of each month, the
22Department of Revenue shall certify to the Treasurer an amount
23equal to 1/10 of the net revenue realized from the tax imposed

 

 

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1by subsections (a) and (b) of Section 201 of the Illinois
2Income Tax Act during the preceding month.
3    For the purpose of this subsection (a), net Net revenue
4realized for a month shall be defined as the revenue from the
5tax imposed by subsections (a) and (b) of Section 201 of the
6Illinois Income Tax Act which is deposited in the General
7Revenue Fund, the Education Assistance Fund and the Income Tax
8Surcharge Local Government Distributive Fund during the month
9minus the amount paid out of the General Revenue Fund in State
10warrants during that same month as refunds to taxpayers for
11overpayment of liability under the tax imposed by subsections
12(a) and (b) of Section 201 of the Illinois Income Tax Act.
13    Upon receipt of a such certification under this subsection
14(a), the Treasurer shall transfer from the General Revenue Fund
15to a special fund in the State treasury, to be known as the
16"Local Government Distributive Fund", the amount shown on such
17certification.
18    (b) Beginning January 1, 2013, for all payments collected
19on or after December 1, 2012, the Department of Revenue shall,
20immediately upon receipt, deposit into the Local Government
21Distributive Fund the amounts required to be deposited into the
22Local Government Distributive Fund under subsection (b) of
23Section 901 of the Illinois Income Tax Act.
24    (c) All amounts paid into the Local Government Distributive
25Fund in accordance with this Section and allocated pursuant to
26this Act are appropriated on a continuing basis.

 

 

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1(Source: P.A. 88-89.)
 
2    Section 10. The Illinois Income Tax Act is amended by
3changing Section 901 as follows:
 
4    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
5    Sec. 901. Collection Authority.
6    (a) In general.
7    The Department shall collect the taxes imposed by this Act.
8The Department shall collect certified past due child support
9amounts under Section 2505-650 of the Department of Revenue Law
10(20 ILCS 2505/2505-650). Except as provided in subsections (c),
11(e), (f), and (g) of this Section, money collected pursuant to
12subsections (a) and (b) of Section 201 of this Act shall be
13paid into the General Revenue Fund in the State treasury; money
14collected pursuant to subsections (c) and (d) of Section 201 of
15this Act shall be paid into the Personal Property Tax
16Replacement Fund, a special fund in the State Treasury; and
17money collected under Section 2505-650 of the Department of
18Revenue Law (20 ILCS 2505/2505-650) shall be paid into the
19Child Support Enforcement Trust Fund, a special fund outside
20the State Treasury, or to the State Disbursement Unit
21established under Section 10-26 of the Illinois Public Aid
22Code, as directed by the Department of Healthcare and Family
23Services.
24    (b) Local Government Distributive Fund.

 

 

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1    Beginning August 1, 1969, and continuing through June 30,
21994, the Treasurer shall transfer each month from the General
3Revenue Fund to a special fund in the State treasury, to be
4known as the "Local Government Distributive Fund", an amount
5equal to 1/12 of the net revenue realized from the tax imposed
6by subsections (a) and (b) of Section 201 of this Act during
7the preceding month. Beginning July 1, 1994, and continuing
8through June 30, 1995, the Treasurer shall transfer each month
9from the General Revenue Fund to the Local Government
10Distributive Fund an amount equal to 1/11 of the net revenue
11realized from the tax imposed by subsections (a) and (b) of
12Section 201 of this Act during the preceding month. Beginning
13July 1, 1995 and continuing through January 31, 2011, the
14Treasurer shall transfer each month from the General Revenue
15Fund to the Local Government Distributive Fund an amount equal
16to the net of (i) 1/10 of the net revenue realized from the tax
17imposed by subsections (a) and (b) of Section 201 of the
18Illinois Income Tax Act during the preceding month (ii) minus,
19beginning July 1, 2003 and ending June 30, 2004, $6,666,666,
20and beginning July 1, 2004, zero. Beginning February 1, 2011,
21and continuing through December 31, 2012 January 31, 2015, the
22Treasurer shall transfer each month from the General Revenue
23Fund to the Local Government Distributive Fund an amount equal
24to the sum of (i) 6% (10% of the ratio of the 3% individual
25income tax rate prior to 2011 to the 5% individual income tax
26rate after 2010) of the net revenue realized from the tax

 

 

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1imposed by subsections (a) and (b) of Section 201 of this Act
2upon individuals, trusts, and estates during the preceding
3month and (ii) 6.86% (10% of the ratio of the 4.8% corporate
4income tax rate prior to 2011 to the 7% corporate income tax
5rate after 2010) of the net revenue realized from the tax
6imposed by subsections (a) and (b) of Section 201 of this Act
7upon corporations during the preceding month. Beginning
8January 1, 2013 and continuing through December 31, 2014, for
9all payments collected on or after December 1, 2012, the
10Department of Revenue shall, immediately upon receipt, deposit
11into the Local Government Distributive Fund, (i) 6% (10% of the
12ratio of the 3% individual income tax rate prior to 2011 to the
135% individual income tax rate after 2010) of the amount
14collected from the tax imposed by subsections (a) and (b) of
15Section 201 of this Act upon individuals, trusts, and estates,
16minus deposits into the Income Tax Refund Fund under subsection
17(c), and (ii) 6.86% (10% of the ratio of the 4.8% corporate
18income tax rate prior to 2011 to the 7% corporate income tax
19rate after 2010) of the amount collected from the tax imposed
20by subsections (a) and (b) of Section 201 of this Act upon
21corporations, minus deposits into the Income Tax Refund Fund
22under subsection (c). Beginning January 1, 2015 February 1,
232015 and continuing through December 31, 2025 January 31, 2025,
24the Treasurer shall, immediately upon receipt, deposit into
25transfer each month from the General Revenue Fund to the Local
26Government Distributive Fund an amount equal to the sum of (i)

 

 

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18% (10% of the ratio of the 3% individual income tax rate prior
2to 2011 to the 3.75% individual income tax rate after 2014) of
3the amount collected net revenue realized from the tax imposed
4by subsections (a) and (b) of Section 201 of this Act upon
5individuals, trusts, and estates, minus deposits into the
6Income Tax Refund Fund under subsection (c), during the
7preceding month and (ii) 9.14% (10% of the ratio of the 4.8%
8corporate income tax rate prior to 2011 to the 5.25% corporate
9income tax rate after 2014) of the amount collected net revenue
10realized from the tax imposed by subsections (a) and (b) of
11Section 201 of this Act upon corporations, minus deposits into
12the Income Tax Refund Fund under subsection (c) during the
13preceding month. Beginning January 1, 2025 February 1, 2025,
14the Treasurer shall, immediately upon receipt, deposit into
15transfer each month from the General Revenue Fund to the Local
16Government Distributive Fund an amount equal to the sum of (i)
179.23% (10% of the ratio of the 3% individual income tax rate
18prior to 2011 to the 3.25% individual income tax rate after
192024) of the amount collected net revenue realized from the tax
20imposed by subsections (a) and (b) of Section 201 of this Act
21upon individuals, trusts, and estates during the preceding
22month, minus deposits into the Income Tax Refund Fund under
23subsection (c), and (ii) 10% of the amount collected net
24revenue realized from the tax imposed by subsections (a) and
25(b) of Section 201 of this Act upon corporations, minus
26deposits into the Income Tax Refund Fund under subsection (c)

 

 

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1during the preceding month. Net revenue realized for a month
2shall be defined as the revenue from the tax imposed by
3subsections (a) and (b) of Section 201 of this Act which is
4deposited in the General Revenue Fund, the Education Assistance
5Fund, the Income Tax Surcharge Local Government Distributive
6Fund, the Fund for the Advancement of Education, and the
7Commitment to Human Services Fund during the month minus the
8amount paid out of the General Revenue Fund in State warrants
9during that same month as refunds to taxpayers for overpayment
10of liability under the tax imposed by subsections (a) and (b)
11of Section 201 of this Act.
12    (c) Deposits Into Income Tax Refund Fund.
13        (1) Beginning on January 1, 1989 and thereafter, the
14    Department shall deposit a percentage of the amounts
15    collected pursuant to subsections (a) and (b)(1), (2), and
16    (3), of Section 201 of this Act into a fund in the State
17    treasury known as the Income Tax Refund Fund. The
18    Department shall deposit 6% of such amounts during the
19    period beginning January 1, 1989 and ending on June 30,
20    1989. Beginning with State fiscal year 1990 and for each
21    fiscal year thereafter, the percentage deposited into the
22    Income Tax Refund Fund during a fiscal year shall be the
23    Annual Percentage. For fiscal years 1999 through 2001, the
24    Annual Percentage shall be 7.1%. For fiscal year 2003, the
25    Annual Percentage shall be 8%. For fiscal year 2004, the
26    Annual Percentage shall be 11.7%. Upon the effective date

 

 

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1    of this amendatory Act of the 93rd General Assembly, the
2    Annual Percentage shall be 10% for fiscal year 2005. For
3    fiscal year 2006, the Annual Percentage shall be 9.75%. For
4    fiscal year 2007, the Annual Percentage shall be 9.75%. For
5    fiscal year 2008, the Annual Percentage shall be 7.75%. For
6    fiscal year 2009, the Annual Percentage shall be 9.75%. For
7    fiscal year 2010, the Annual Percentage shall be 9.75%. For
8    fiscal year 2011, the Annual Percentage shall be 8.75%. For
9    fiscal year 2012, the Annual Percentage shall be 8.75%. 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)(1), (2), and (3) of Section 201 of this Act plus the
16    amount of such refunds remaining approved but unpaid at the
17    end of the preceding fiscal year, minus the amounts
18    transferred into the Income Tax Refund Fund from the
19    Tobacco Settlement Recovery Fund, and the denominator of
20    which shall be the amounts which will be collected pursuant
21    to subsections (a) and (b)(1), (2), and (3) of Section 201
22    of this Act during the preceding fiscal year; except that
23    in State fiscal year 2002, the Annual Percentage shall in
24    no event exceed 7.6%. The Director of Revenue shall certify
25    the Annual Percentage to the Comptroller on the last
26    business day of the fiscal year immediately preceding the

 

 

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1    fiscal year for which it is to be effective.
2        (2) Beginning on January 1, 1989 and thereafter, the
3    Department shall deposit a percentage of the amounts
4    collected pursuant to subsections (a) and (b)(6), (7), and
5    (8), (c) and (d) of Section 201 of this Act into a fund in
6    the State treasury known as the Income Tax Refund Fund. The
7    Department shall deposit 18% of such amounts during the
8    period beginning January 1, 1989 and ending on June 30,
9    1989. Beginning with State fiscal year 1990 and for each
10    fiscal year thereafter, the percentage deposited into the
11    Income Tax Refund Fund during a fiscal year shall be the
12    Annual Percentage. For fiscal years 1999, 2000, and 2001,
13    the Annual Percentage shall be 19%. For fiscal year 2003,
14    the Annual Percentage shall be 27%. For fiscal year 2004,
15    the Annual Percentage shall be 32%. Upon the effective date
16    of this amendatory Act of the 93rd General Assembly, the
17    Annual Percentage shall be 24% for fiscal year 2005. For
18    fiscal year 2006, the Annual Percentage shall be 20%. For
19    fiscal year 2007, the Annual Percentage shall be 17.5%. For
20    fiscal year 2008, the Annual Percentage shall be 15.5%. For
21    fiscal year 2009, the Annual Percentage shall be 17.5%. For
22    fiscal year 2010, the Annual Percentage shall be 17.5%. For
23    fiscal year 2011, the Annual Percentage shall be 17.5%. For
24    fiscal year 2012, the Annual Percentage shall be 17.5%. For
25    all other fiscal years, the Annual Percentage shall be
26    calculated as a fraction, the numerator of which shall be

 

 

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1    the amount of refunds approved for payment by the
2    Department during the preceding fiscal year as a result of
3    overpayment of tax liability under subsections (a) and
4    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
5    Act plus the amount of such refunds remaining approved but
6    unpaid at the end of the preceding fiscal year, and the
7    denominator of which shall be the amounts which will be
8    collected pursuant to subsections (a) and (b)(6), (7), and
9    (8), (c) and (d) of Section 201 of this Act during the
10    preceding fiscal year; except that in State fiscal year
11    2002, the Annual Percentage shall in no event exceed 23%.
12    The Director of Revenue shall certify the Annual Percentage
13    to the Comptroller on the last business day of the fiscal
14    year immediately preceding the fiscal year for which it is
15    to be effective.
16        (3) The Comptroller shall order transferred and the
17    Treasurer shall transfer from the Tobacco Settlement
18    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
19    in January, 2001, (ii) $35,000,000 in January, 2002, and
20    (iii) $35,000,000 in January, 2003.
21    (d) Expenditures from Income Tax Refund Fund.
22        (1) Beginning January 1, 1989, money in the Income Tax
23    Refund Fund shall be expended exclusively for the purpose
24    of paying refunds resulting from overpayment of tax
25    liability under Section 201 of this Act, for paying rebates
26    under Section 208.1 in the event that the amounts in the

 

 

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1    Homeowners' Tax Relief Fund are insufficient for that
2    purpose, and for making transfers pursuant to this
3    subsection (d).
4        (2) The Director shall order payment of refunds
5    resulting from overpayment of tax liability under Section
6    201 of this Act from the Income Tax Refund Fund only to the
7    extent that amounts collected pursuant to Section 201 of
8    this Act and transfers pursuant to this subsection (d) and
9    item (3) of subsection (c) have been deposited and retained
10    in the Fund.
11        (3) As soon as possible after the end of each fiscal
12    year, the Director shall order transferred and the State
13    Treasurer and State Comptroller shall transfer from the
14    Income Tax Refund Fund to the Personal Property Tax
15    Replacement Fund an amount, certified by the Director to
16    the Comptroller, equal to the excess of the amount
17    collected pursuant to subsections (c) and (d) of Section
18    201 of this Act deposited into the Income Tax Refund Fund
19    during the fiscal year over the amount of refunds resulting
20    from overpayment of tax liability under subsections (c) and
21    (d) of Section 201 of this Act paid from the Income Tax
22    Refund Fund during the fiscal year.
23        (4) As soon as possible after the end of each fiscal
24    year, the Director shall order transferred and the State
25    Treasurer and State Comptroller shall transfer from the
26    Personal Property Tax Replacement Fund to the Income Tax

 

 

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1    Refund Fund an amount, certified by the Director to the
2    Comptroller, equal to the excess of the amount of refunds
3    resulting from overpayment of tax liability under
4    subsections (c) and (d) of Section 201 of this Act paid
5    from the Income Tax Refund Fund during the fiscal year over
6    the amount collected pursuant to subsections (c) and (d) of
7    Section 201 of this Act deposited into the Income Tax
8    Refund Fund during the fiscal year.
9        (4.5) As soon as possible after the end of fiscal year
10    1999 and of each fiscal year thereafter, the Director shall
11    order transferred and the State Treasurer and State
12    Comptroller shall transfer from the Income Tax Refund Fund
13    to the General Revenue Fund any surplus remaining in the
14    Income Tax Refund Fund as of the end of such fiscal year;
15    excluding for fiscal years 2000, 2001, and 2002 amounts
16    attributable to transfers under item (3) of subsection (c)
17    less refunds resulting from the earned income tax credit.
18        (5) This Act shall constitute an irrevocable and
19    continuing appropriation from the Income Tax Refund Fund
20    for the purpose of paying refunds upon the order of the
21    Director in accordance with the provisions of this Section.
22    (e) Deposits into the Education Assistance Fund and the
23Income Tax Surcharge Local Government Distributive Fund.
24    On July 1, 1991, and thereafter, of the amounts collected
25pursuant to subsections (a) and (b) of Section 201 of this Act,
26minus deposits into the Income Tax Refund Fund, the Department

 

 

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1shall deposit 7.3% into the Education Assistance Fund in the
2State Treasury. Beginning July 1, 1991, and continuing through
3January 31, 1993, of the amounts collected pursuant to
4subsections (a) and (b) of Section 201 of the Illinois Income
5Tax Act, minus deposits into the Income Tax Refund Fund, the
6Department shall deposit 3.0% into the Income Tax Surcharge
7Local Government Distributive Fund in the State Treasury.
8Beginning February 1, 1993 and continuing through June 30,
91993, of the amounts collected pursuant to subsections (a) and
10(b) of Section 201 of the Illinois Income Tax Act, minus
11deposits into the Income Tax Refund Fund, the Department shall
12deposit 4.4% into the Income Tax Surcharge Local Government
13Distributive Fund in the State Treasury. Beginning July 1,
141993, and continuing through June 30, 1994, of the amounts
15collected under subsections (a) and (b) of Section 201 of this
16Act, minus deposits into the Income Tax Refund Fund, the
17Department shall deposit 1.475% into the Income Tax Surcharge
18Local Government Distributive Fund in the State Treasury.
19    (f) Deposits into the Fund for the Advancement of
20Education. Beginning February 1, 2015, the Department shall
21deposit the following portions of the revenue realized from the
22tax imposed upon individuals, trusts, and estates by
23subsections (a) and (b) of Section 201 of this Act during the
24preceding month, minus deposits into the Income Tax Refund
25Fund, into the Fund for the Advancement of Education:
26        (1) beginning February 1, 2015, and prior to February

 

 

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1    1, 2025, 1/30; and
2        (2) beginning February 1, 2025, 1/26.
3    If the rate of tax imposed by subsection (a) and (b) of
4Section 201 is reduced pursuant to Section 201.5 of this Act,
5the Department shall not make the deposits required by this
6subsection (f) on or after the effective date of the reduction.
7    (g) Deposits into the Commitment to Human Services Fund.
8Beginning February 1, 2015, the Department shall deposit the
9following portions of the revenue realized from the tax imposed
10upon individuals, trusts, and estates by subsections (a) and
11(b) of Section 201 of this Act during the preceding month,
12minus deposits into the Income Tax Refund Fund, into the
13Commitment to Human Services Fund:
14        (1) beginning February 1, 2015, and prior to February
15    1, 2025, 1/30; and
16        (2) beginning February 1, 2025, 1/26.
17    If the rate of tax imposed by subsection (a) and (b) of
18Section 201 is reduced pursuant to Section 201.5 of this Act,
19the Department shall not make the deposits required by this
20subsection (g) on or after the effective date of the reduction.
21(Source: P.A. 96-45, eff. 7-15-09; 96-328, eff. 8-11-09;
2296-959, eff. 7-1-10; 96-1496, eff. 1-13-11; 97-72, eff.
237-1-11.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.