Rep. Michael J. Madigan

Filed: 5/19/2014

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 396

2    AMENDMENT NO. ______. Amend House Bill 396 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Property Tax Refund Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Department" means the Department of Revenue.
8    "Eligible homeowner" means an individual who was liable for
9property taxes that were paid on qualified property that is
10located in Illinois and is used as his or her principal place
11of residence and in which he or she had an ownership interest
12as of January 1 of the year in which the property taxes were
13paid.
14    "Qualified property" means property for which (i) the
15homeowner would have been allowed a credit under Section 208 of
16the Illinois Income Tax Act, as that Section existed on January

 

 

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11, 2014, and (ii) an eligible homeowner has filed a timely
2application for a refund under Section 10 of this Act.
 
3    Section 10. Property tax refunds.
4    (a) Beginning in 2014, the Department shall issue a
5property tax refund each year for each qualified property for
6which an eligible homeowner who was liable for property taxes
7that were paid with respect to that qualified property in the
8immediately preceding calendar year has filed a timely
9application for the property tax refund. The Department shall
10certify to the State Comptroller as soon as possible after July
111 of each year both (i) the names of each eligible homeowner
12who will receive a refund and (ii) the refund amount for each
13eligible homeowner. The State Comptroller shall process the
14property tax refunds within 60 business days after receipt of a
15properly executed voucher.
16    (b) The Department shall issue a refund equal to $500 for
17each qualified property, provided that only one refund shall be
18issued for each qualified property. If there is more than one
19eligible homeowner for a qualified property, the refund shall
20be paid to the eligible homeowner shown on the first
21application received by the Department. Any division or sharing
22of a refund among the eligible homeowners shall be a matter for
23agreement between the eligible homeowners. The Department
24shall not be responsible for dividing the refund among eligible
25homeowners.

 

 

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1    (c) On July 1, or as soon thereafter as practical, the
2Department shall certify to the Governor's Office of Management
3and Budget and to the State Comptroller the amount necessary to
4make payments pursuant to this Act. The State Comptroller shall
5order transferred and the State Treasurer shall transfer from
6the General Revenue Fund to the Income and Property Tax Refund
7Fund the amount necessary to fund such payments.
8    (d) Application for the refund shall be made in the form
9and manner prescribed by the Department and shall contain all
10information reasonably required by the Department for purposes
11of administering the refund.
12    For refunds with respect to property taxes that were paid
13in 2013, an Illinois income tax return claiming a credit under
14Section 208 of the Illinois Income Tax Act for a tax year
15ending in 2013 shall be treated as an application for the
16refund. For refunds with respect to property taxes that were
17paid in 2014 or in any subsequent year, the Department may
18allow or require the application to be made on an Illinois
19income tax return for the applicant's taxable year ending
20during the year in which the property taxes were paid, or it
21may require a separate application, or both. The Department may
22require applications to be filed electronically, except in the
23case of an individual who has no ready access to a means of
24electronic filing or in the case where the application is made
25on an income tax return that is not required to be filed
26electronically.

 

 

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1    No refund shall be allowed to an eligible homeowner with
2respect to property taxes that were paid in a year unless an
3application has been filed with the Department no later than
4June 30 of the second calendar year following the year in which
5the property taxes were paid, and, in the case of a
6timely-filed application that is incomplete or otherwise
7defective, any defect has been corrected no later than 30 days
8after the Department has issued a notice that the application
9is incomplete or defective or June 30 of that second following
10year, whichever is later.
11    (e) In lieu of a refund paid under subsection (a) of
12Section 10 of this Act, the Department may credit the amount of
13the refund against (i) any final tax liability of the applicant
14arising under any Act administered by the Department,
15regardless of whether other collection remedies are closed to
16the Department, or (ii) any liability of the applicant against
17which the Department may offset an overpayment of Illinois
18income tax of the applicant, and pay only the remaining balance
19to the applicant.
20    (f) If a refund is determined by the Department to have
21been issued in error, as soon as possible after the
22determination is made, the Department shall issue a demand for
23repayment of the erroneous refund, plus a penalty of 20% of the
24erroneous refund, provided that no penalty shall be imposed if
25the refund was issued as a result of an error of the Department
26that was not caused by the recipient of the refund or if the

 

 

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1recipient had reasonable cause for any error made in applying
2for the refund. If repayment is not made within 60 days of the
3date of issuance of the demand, the Department shall enforce
4repayment of the refund using all legal authority available to
5the Department to collect debt.
 
6    Section 15. Information from counties.
7    (a) Beginning in 2014, the Department may require each
8county to provide to the Department, upon request, each year
9the following information relating to the property tax bills
10issued in the preceding year; this information shall be
11provided by parcel number:
12        (1) county code;
13        (2) township name or code;
14        (3) property index number;
15        (4) name of the owner;
16        (5) the mailing address of the owner;
17        (6) the address of the parcel;
18        (7) all homestead exemptions applicable to the parcel;
19        (8) property use or type with description;
20        (9) assessed value (before equalization factor);
21        (10) equalized assessed value;
22        (11) tax bill amount; and
23        (12) such other information as the Department shall
24    require.
25    (b) The information required by the Department under

 

 

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1subsection (a) for property tax bills issued in 2013 shall be
2submitted no later than 30 days after written request by the
3Department. For property tax bills issued in 2014 or any
4subsequent year, that information shall be submitted no later
5than May 15 of the following year. The Department may grant
6requests for extensions of time to submit the information. The
7information shall be submitted in a computer readable format as
8directed by the Department. If any county fails to submit the
9required information by the due date under this subsection, the
10Department shall not certify to the State Comptroller the
11amount of the Local Government Distributive Fund allocated to
12that county under subsection (a) of Section 2 of the State
13Revenue Sharing Act during any month beginning after that due
14date until the information is submitted, and then, in the first
15month beginning after the information is submitted, the
16Department shall certify to the State Comptroller for payment
17to that county the amount allocated in that month plus the
18amounts that were allocated to that county in prior months but
19not certified to the State Comptroller as a result of this
20subsection.
21    (c) Notwithstanding Sections 6 and 8 of the State Mandates
22Act, no reimbursement by the State is required for the
23implementation of any mandate created by this Section.
 
24    Section 20. False statements in applications. Any person
25who files an application for a refund under this Act that

 

 

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1contains a materially false statement, or who willfully
2attempts in any other manner to receive a refund which that
3person knows he or she is not entitled to receive under this
4Act, shall be guilty of a Class 4 felony for the first offense
5and a Class 3 felony for each subsequent offense. A prosecution
6for any act in violation of this Section may be commenced at
7any time within 5 years of the commission of that act.
 
8    Section 25. Rulemaking. The Department is authorized to
9make, promulgate, and enforce such reasonable rules, and to
10prescribe such forms, relating to the administration and
11enforcement of the provisions of this Act as it may deem
12appropriate.
13    The circuit courts of Cook County and Sangamon County have
14the power to review all final administrative decisions of the
15Department in administering this Act. The provisions of the
16Administrative Review Law, and all amendments and
17modifications thereof, and the rules adopted pursuant thereto,
18shall apply to and govern all proceedings for the judicial
19review of final administrative decisions of the Department
20under this Act. The term "administrative decision" is defined
21as in Section 3-101 of the Code of Civil Procedure.
 
22    Section 80. The State Finance Act is amended by changing
23Sections 5.249 and 8.27a as follows:
 

 

 

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1    (30 ILCS 105/5.249)  (from Ch. 127, par. 141.249)
2    Sec. 5.249. The Income and Property Tax Refund Fund.
3(Source: P.A. 85-1440.)
 
4    (30 ILCS 105/8.27a)
5    Sec. 8.27a. TANF funds; earned income tax credit. Funds
6from the federal Temporary Assistance for Needy Families block
7grant under Title IV-A of the federal Social Security Act
8designated by the Illinois Department of Human Services as
9reimbursement for expenditures made by the Illinois Department
10of Revenue for the refundable portion of the earned income tax
11credit shall be deposited into the Income and Property Tax
12Refund Fund. Such deposits shall be made as needed on
13approximately the fifteenth calendar day of each month.
14(Source: P.A. 93-653, eff. 1-8-04.)
 
15    Section 85. The State Revenue Sharing Act is amended by
16changing Sections 1a and 12 as follows:
 
17    (30 ILCS 115/1a)  (from Ch. 85, par. 611a)
18    Sec. 1a. Income Tax Surcharge Local Government
19Distributive Fund. Beginning July 1, 1991, and continuing
20through January 31, 1993, of the amounts collected pursuant to
21subsections (a) and (b) of Section 201 of the Illinois Income
22Tax Act, minus deposits into the Income and Property Tax Refund
23Fund, the Department shall deposit 3.0% into the Income Tax

 

 

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1Surcharge Local Government Distributive Fund in the State
2Treasury. Beginning February 1, 1993 and continuing through
3June 30, 1993, of the amounts collected pursuant to subsections
4(a) and (b) of Section 201 of the Illinois Income Tax Act,
5minus deposits into the Income and Property Tax Refund Fund,
6the Department shall deposit 4.4% into the Income Tax Surcharge
7Local Government Distributive Fund in the State Treasury.
8Beginning July 1, 1993, and continuing through June 30, 1994,
9of the amounts collected under subsections (a) and (b) of
10Section 201 of the Illinois Income Tax Act, minus deposits into
11the Income Tax Refund Fund, the Department shall deposit 1.475%
12into the Income Tax Surcharge Local Government Distributive
13Fund in the State Treasury.
14(Source: P.A. 87-17; 87-860; 88-89.)
 
15    (30 ILCS 115/12)  (from Ch. 85, par. 616)
16    Sec. 12. Personal Property Tax Replacement Fund. There is
17hereby created the Personal Property Tax Replacement Fund, a
18special fund in the State Treasury into which shall be paid all
19revenue realized:
20    (a) all amounts realized from the additional personal
21property tax replacement income tax imposed by subsections (c)
22and (d) of Section 201 of the Illinois Income Tax Act, except
23for those amounts deposited into the Income and Property Tax
24Refund Fund pursuant to subsection (c) of Section 901 of the
25Illinois Income Tax Act; and

 

 

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1    (b) all amounts realized from the additional personal
2property replacement invested capital taxes imposed by Section
32a.1 of the Messages Tax Act, Section 2a.1 of the Gas Revenue
4Tax Act, Section 2a.1 of the Public Utilities Revenue Act, and
5Section 3 of the Water Company Invested Capital Tax Act, and
6amounts payable to the Department of Revenue under the
7Telecommunications Infrastructure Maintenance Fee Act.
8    As soon as may be after the end of each month, the
9Department of Revenue shall certify to the Treasurer and the
10Comptroller the amount of all refunds paid out of the General
11Revenue Fund through the preceding month on account of
12overpayment of liability on taxes paid into the Personal
13Property Tax Replacement Fund. Upon receipt of such
14certification, the Treasurer and the Comptroller shall
15transfer the amount so certified from the Personal Property Tax
16Replacement Fund into the General Revenue Fund.
17    The payments of revenue into the Personal Property Tax
18Replacement Fund shall be used exclusively for distribution to
19taxing districts, regional offices and officials, and local
20officials as provided in this Section and in the School Code,
21payment of the ordinary and contingent expenses of the Property
22Tax Appeal Board, payment of the expenses of the Department of
23Revenue incurred in administering the collection and
24distribution of monies paid into the Personal Property Tax
25Replacement Fund and transfers due to refunds to taxpayers for
26overpayment of liability for taxes paid into the Personal

 

 

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1Property Tax Replacement Fund.
2    In addition, moneys in the Personal Property Tax
3Replacement Fund may be used to pay any of the following: (i)
4salary, stipends, and additional compensation as provided by
5law for chief election clerks, county clerks, and county
6recorders; (ii) costs associated with regional offices of
7education and educational service centers; (iii)
8reimbursements payable by the State Board of Elections under
9Section 4-25, 5-35, 6-71, 13-10, 13-10a, or 13-11 of the
10Election Code; and (iv) expenses of the Illinois Educational
11Labor Relations Board.
12    As soon as may be after the effective date of this
13amendatory Act of 1980, the Department of Revenue shall certify
14to the Treasurer the amount of net replacement revenue paid
15into the General Revenue Fund prior to that effective date from
16the additional tax imposed by Section 2a.1 of the Messages Tax
17Act; Section 2a.1 of the Gas Revenue Tax Act; Section 2a.1 of
18the Public Utilities Revenue Act; Section 3 of the Water
19Company Invested Capital Tax Act; amounts collected by the
20Department of Revenue under the Telecommunications
21Infrastructure Maintenance Fee Act; and the additional
22personal property tax replacement income tax imposed by the
23Illinois Income Tax Act, as amended by Public Act 81-1st
24Special Session-1. Net replacement revenue shall be defined as
25the total amount paid into and remaining in the General Revenue
26Fund as a result of those Acts minus the amount outstanding and

 

 

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1obligated from the General Revenue Fund in state vouchers or
2warrants prior to the effective date of this amendatory Act of
31980 as refunds to taxpayers for overpayment of liability under
4those Acts.
5    All interest earned by monies accumulated in the Personal
6Property Tax Replacement Fund shall be deposited in such Fund.
7All amounts allocated pursuant to this Section are appropriated
8on a continuing basis.
9    Prior to December 31, 1980, as soon as may be after the end
10of each quarter beginning with the quarter ending December 31,
111979, and on and after December 31, 1980, as soon as may be
12after January 1, March 1, April 1, May 1, July 1, August 1,
13October 1 and December 1 of each year, the Department of
14Revenue shall allocate to each taxing district as defined in
15Section 1-150 of the Property Tax Code, in accordance with the
16provisions of paragraph (2) of this Section the portion of the
17funds held in the Personal Property Tax Replacement Fund which
18is required to be distributed, as provided in paragraph (1),
19for each quarter. Provided, however, under no circumstances
20shall any taxing district during each of the first two years of
21distribution of the taxes imposed by this amendatory Act of
221979 be entitled to an annual allocation which is less than the
23funds such taxing district collected from the 1978 personal
24property tax. Provided further that under no circumstances
25shall any taxing district during the third year of distribution
26of the taxes imposed by this amendatory Act of 1979 receive

 

 

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1less than 60% of the funds such taxing district collected from
2the 1978 personal property tax. In the event that the total of
3the allocations made as above provided for all taxing
4districts, during either of such 3 years, exceeds the amount
5available for distribution the allocation of each taxing
6district shall be proportionately reduced. Except as provided
7in Section 13 of this Act, the Department shall then certify,
8pursuant to appropriation, such allocations to the State
9Comptroller who shall pay over to the several taxing districts
10the respective amounts allocated to them.
11    Any township which receives an allocation based in whole or
12in part upon personal property taxes which it levied pursuant
13to Section 6-507 or 6-512 of the Illinois Highway Code and
14which was previously required to be paid over to a municipality
15shall immediately pay over to that municipality a proportionate
16share of the personal property replacement funds which such
17township receives.
18    Any municipality or township, other than a municipality
19with a population in excess of 500,000, which receives an
20allocation based in whole or in part on personal property taxes
21which it levied pursuant to Sections 3-1, 3-4 and 3-6 of the
22Illinois Local Library Act and which was previously required to
23be paid over to a public library shall immediately pay over to
24that library a proportionate share of the personal property tax
25replacement funds which such municipality or township
26receives; provided that if such a public library has converted

 

 

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1to a library organized under The Illinois Public Library
2District Act, regardless of whether such conversion has
3occurred on, after or before January 1, 1988, such
4proportionate share shall be immediately paid over to the
5library district which maintains and operates the library.
6However, any library that has converted prior to January 1,
71988, and which hitherto has not received the personal property
8tax replacement funds, shall receive such funds commencing on
9January 1, 1988.
10    Any township which receives an allocation based in whole or
11in part on personal property taxes which it levied pursuant to
12Section 1c of the Public Graveyards Act and which taxes were
13previously required to be paid over to or used for such public
14cemetery or cemeteries shall immediately pay over to or use for
15such public cemetery or cemeteries a proportionate share of the
16personal property tax replacement funds which the township
17receives.
18    Any taxing district which receives an allocation based in
19whole or in part upon personal property taxes which it levied
20for another governmental body or school district in Cook County
21in 1976 or for another governmental body or school district in
22the remainder of the State in 1977 shall immediately pay over
23to that governmental body or school district the amount of
24personal property replacement funds which such governmental
25body or school district would receive directly under the
26provisions of paragraph (2) of this Section, had it levied its

 

 

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

 

 

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1    Board and payment of the expenses of the Department of
2    Revenue incurred in administering the collection and
3    distribution of moneys paid into the Fund; or (f) for
4    fiscal years 2012 and 2013 only, a sufficient amount to pay
5    stipends, additional compensation, salary reimbursements,
6    and other amounts directed to be paid out of this Fund for
7    regional offices and officials as authorized or required by
8    statute. Such portion of the fund shall be determined after
9    the transfer into the General Revenue Fund due to refunds,
10    if any, paid from the General Revenue Fund during the
11    preceding quarter. If at any time, for any reason, there is
12    insufficient amount in the Personal Property Tax
13    Replacement Fund for payments for regional offices and
14    officials or local officials or payment of costs of
15    administration or for transfers due to refunds at the end
16    of any particular month, the amount of such insufficiency
17    shall be carried over for the purposes of payments for
18    regional offices and officials, local officials, transfers
19    into the General Revenue Fund, and costs of administration
20    to the following month or months. Net replacement revenue
21    held, and defined above, shall be transferred by the
22    Treasurer and Comptroller to the Personal Property Tax
23    Replacement Fund within 10 days of such certification.
24        (2) Each quarterly allocation shall first be
25    apportioned in the following manner: 51.65% for taxing
26    districts in Cook County and 48.35% for taxing districts in

 

 

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1    the remainder of the State.
2    The Personal Property Replacement Ratio of each taxing
3district outside Cook County shall be the ratio which the Tax
4Base of that taxing district bears to the Downstate Tax Base.
5The Tax Base of each taxing district outside of Cook County is
6the personal property tax collections for that taxing district
7for the 1977 tax year. The Downstate Tax Base is the personal
8property tax collections for all taxing districts in the State
9outside of Cook County for the 1977 tax year. The Department of
10Revenue shall have authority to review for accuracy and
11completeness the personal property tax collections for each
12taxing district outside Cook County for the 1977 tax year.
13    The Personal Property Replacement Ratio of each Cook County
14taxing district shall be the ratio which the Tax Base of that
15taxing district bears to the Cook County Tax Base. The Tax Base
16of each Cook County taxing district is the personal property
17tax collections for that taxing district for the 1976 tax year.
18The Cook County Tax Base is the personal property tax
19collections for all taxing districts in Cook County for the
201976 tax year. The Department of Revenue shall have authority
21to review for accuracy and completeness the personal property
22tax collections for each taxing district within Cook County for
23the 1976 tax year.
24    For all purposes of this Section 12, amounts paid to a
25taxing district for such tax years as may be applicable by a
26foreign corporation under the provisions of Section 7-202 of

 

 

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1the Public Utilities Act, as amended, shall be deemed to be
2personal property taxes collected by such taxing district for
3such tax years as may be applicable. The Director shall
4determine from the Illinois Commerce Commission, for any tax
5year as may be applicable, the amounts so paid by any such
6foreign corporation to any and all taxing districts. The
7Illinois Commerce Commission shall furnish such information to
8the Director. For all purposes of this Section 12, the Director
9shall deem such amounts to be collected personal property taxes
10of each such taxing district for the applicable tax year or
11years.
12    Taxing districts located both in Cook County and in one or
13more other counties shall receive both a Cook County allocation
14and a Downstate allocation determined in the same way as all
15other taxing districts.
16    If any taxing district in existence on July 1, 1979 ceases
17to exist, or discontinues its operations, its Tax Base shall
18thereafter be deemed to be zero. If the powers, duties and
19obligations of the discontinued taxing district are assumed by
20another taxing district, the Tax Base of the discontinued
21taxing district shall be added to the Tax Base of the taxing
22district assuming such powers, duties and obligations.
23    If two or more taxing districts in existence on July 1,
241979, or a successor or successors thereto shall consolidate
25into one taxing district, the Tax Base of such consolidated
26taxing district shall be the sum of the Tax Bases of each of

 

 

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1the taxing districts which have consolidated.
2    If a single taxing district in existence on July 1, 1979,
3or a successor or successors thereto shall be divided into two
4or more separate taxing districts, the tax base of the taxing
5district so divided shall be allocated to each of the resulting
6taxing districts in proportion to the then current equalized
7assessed value of each resulting taxing district.
8    If a portion of the territory of a taxing district is
9disconnected and annexed to another taxing district of the same
10type, the Tax Base of the taxing district from which
11disconnection was made shall be reduced in proportion to the
12then current equalized assessed value of the disconnected
13territory as compared with the then current equalized assessed
14value within the entire territory of the taxing district prior
15to disconnection, and the amount of such reduction shall be
16added to the Tax Base of the taxing district to which
17annexation is made.
18    If a community college district is created after July 1,
191979, beginning on the effective date of this amendatory Act of
201995, its Tax Base shall be 3.5% of the sum of the personal
21property tax collected for the 1977 tax year within the
22territorial jurisdiction of the district.
23    The amounts allocated and paid to taxing districts pursuant
24to the provisions of this amendatory Act of 1979 shall be
25deemed to be substitute revenues for the revenues derived from
26taxes imposed on personal property pursuant to the provisions

 

 

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1of the "Revenue Act of 1939" or "An Act for the assessment and
2taxation of private car line companies", approved July 22,
31943, as amended, or Section 414 of the Illinois Insurance
4Code, prior to the abolition of such taxes and shall be used
5for the same purposes as the revenues derived from ad valorem
6taxes on real estate.
7    Monies received by any taxing districts from the Personal
8Property Tax Replacement Fund shall be first applied toward
9payment of the proportionate amount of debt service which was
10previously levied and collected from extensions against
11personal property on bonds outstanding as of December 31, 1978
12and next applied toward payment of the proportionate share of
13the pension or retirement obligations of the taxing district
14which were previously levied and collected from extensions
15against personal property. For each such outstanding bond
16issue, the County Clerk shall determine the percentage of the
17debt service which was collected from extensions against real
18estate in the taxing district for 1978 taxes payable in 1979,
19as related to the total amount of such levies and collections
20from extensions against both real and personal property. For
211979 and subsequent years' taxes, the County Clerk shall levy
22and extend taxes against the real estate of each taxing
23district which will yield the said percentage or percentages of
24the debt service on such outstanding bonds. The balance of the
25amount necessary to fully pay such debt service shall
26constitute a first and prior lien upon the monies received by

 

 

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1each such taxing district through the Personal Property Tax
2Replacement Fund and shall be first applied or set aside for
3such purpose. In counties having fewer than 3,000,000
4inhabitants, the amendments to this paragraph as made by this
5amendatory Act of 1980 shall be first applicable to 1980 taxes
6to be collected in 1981.
7(Source: P.A. 97-72, eff. 7-1-11; 97-619, eff. 11-14-11;
897-732, eff. 6-30-12; 98-24, eff. 6-19-13.)
 
9    Section 90. The Illinois Income Tax Act is amended by
10changing Section 901 as follows:
 
11    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
12    Sec. 901. Collection Authority.
13    (a) In general.
14    The Department shall collect the taxes imposed by this Act.
15The Department shall collect certified past due child support
16amounts under Section 2505-650 of the Department of Revenue Law
17(20 ILCS 2505/2505-650). Except as provided in subsections (c),
18(e), (f), and (g) of this Section, money collected pursuant to
19subsections (a) and (b) of Section 201 of this Act shall be
20paid into the General Revenue Fund in the State treasury; money
21collected pursuant to subsections (c) and (d) of Section 201 of
22this Act shall be paid into the Personal Property Tax
23Replacement Fund, a special fund in the State Treasury; and
24money collected under Section 2505-650 of the Department of

 

 

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1Revenue Law (20 ILCS 2505/2505-650) shall be paid into the
2Child Support Enforcement Trust Fund, a special fund outside
3the State Treasury, or to the State Disbursement Unit
4established under Section 10-26 of the Illinois Public Aid
5Code, as directed by the Department of Healthcare and Family
6Services.
7    (b) Local Government Distributive Fund.
8    Beginning August 1, 1969, and continuing through June 30,
91994, the Treasurer shall transfer each month from the General
10Revenue Fund to a special fund in the State treasury, to be
11known as the "Local Government Distributive Fund", an amount
12equal to 1/12 of the net revenue realized from the tax imposed
13by subsections (a) and (b) of Section 201 of this Act during
14the preceding month. Beginning July 1, 1994, and continuing
15through June 30, 1995, the Treasurer shall transfer each month
16from the General Revenue Fund to the Local Government
17Distributive Fund an amount equal to 1/11 of the net revenue
18realized from the tax imposed by subsections (a) and (b) of
19Section 201 of this Act during the preceding month. Beginning
20July 1, 1995 and continuing through January 31, 2011, the
21Treasurer shall transfer each month from the General Revenue
22Fund to the Local Government Distributive Fund an amount equal
23to the net of (i) 1/10 of the net revenue realized from the tax
24imposed by subsections (a) and (b) of Section 201 of the
25Illinois Income Tax Act during the preceding month (ii) minus,
26beginning July 1, 2003 and ending June 30, 2004, $6,666,666,

 

 

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1and beginning July 1, 2004, zero. Beginning February 1, 2011,
2and continuing through January 31, 2015, the Treasurer shall
3transfer each month from the General Revenue Fund to the Local
4Government Distributive Fund an amount equal to the sum of (i)
56% (10% of the ratio of the 3% individual income tax rate prior
6to 2011 to the 5% individual income tax rate after 2010) of the
7net revenue realized from the tax imposed by subsections (a)
8and (b) of Section 201 of this Act upon individuals, trusts,
9and estates during the preceding month and (ii) 6.86% (10% of
10the ratio of the 4.8% corporate income tax rate prior to 2011
11to the 7% corporate income tax rate after 2010) of the net
12revenue realized from the tax imposed by subsections (a) and
13(b) of Section 201 of this Act upon corporations during the
14preceding month. Beginning February 1, 2015 and continuing
15through January 31, 2025, the Treasurer shall transfer each
16month from the General Revenue Fund to the Local Government
17Distributive Fund an amount equal to the sum of (i) 8% (10% of
18the ratio of the 3% individual income tax rate prior to 2011 to
19the 3.75% individual income tax rate after 2014) of the net
20revenue realized from the tax imposed by subsections (a) and
21(b) of Section 201 of this Act upon individuals, trusts, and
22estates during the preceding month and (ii) 9.14% (10% of the
23ratio of the 4.8% corporate income tax rate prior to 2011 to
24the 5.25% corporate income tax rate after 2014) of the net
25revenue realized from the tax imposed by subsections (a) and
26(b) of Section 201 of this Act upon corporations during the

 

 

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

 

 

09800HB0396ham001- 25 -LRB098 03215 HLH 59782 a

1    treasury known as the Income and Property Tax Refund Fund.
2    The Department shall deposit 6% of such amounts during the
3    period beginning January 1, 1989 and ending on June 30,
4    1989. Beginning with State fiscal year 1990 and for each
5    fiscal year thereafter, the percentage deposited into the
6    Income and Property Tax Refund Fund during a fiscal year
7    shall be the Annual Percentage. For fiscal years 1999
8    through 2001, the Annual Percentage shall be 7.1%. For
9    fiscal year 2003, the Annual Percentage shall be 8%. For
10    fiscal year 2004, the Annual Percentage shall be 11.7%.
11    Upon the effective date of this amendatory Act of the 93rd
12    General Assembly, the Annual Percentage shall be 10% for
13    fiscal year 2005. For fiscal year 2006, the Annual
14    Percentage shall be 9.75%. For fiscal year 2007, the Annual
15    Percentage shall be 9.75%. For fiscal year 2008, the Annual
16    Percentage shall be 7.75%. For fiscal year 2009, the Annual
17    Percentage shall be 9.75%. For fiscal year 2010, the Annual
18    Percentage shall be 9.75%. For fiscal year 2011, the Annual
19    Percentage shall be 8.75%. For fiscal year 2012, the Annual
20    Percentage shall be 8.75%. For fiscal year 2013, the Annual
21    Percentage shall be 9.75%. For fiscal year 2014, the Annual
22    Percentage shall be 9.5%. For all other fiscal years, the
23    Annual Percentage shall be calculated as a fraction, the
24    numerator of which shall be the amount of refunds approved
25    for payment by the Department during the preceding fiscal
26    year as a result of overpayment of tax liability under

 

 

09800HB0396ham001- 26 -LRB098 03215 HLH 59782 a

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

 

 

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1    shall be 19%. For fiscal year 2003, the Annual Percentage
2    shall be 27%. For fiscal year 2004, the Annual Percentage
3    shall be 32%. Upon the effective date of this amendatory
4    Act of the 93rd General Assembly, the Annual Percentage
5    shall be 24% for fiscal year 2005. For fiscal year 2006,
6    the Annual Percentage shall be 20%. For fiscal year 2007,
7    the Annual Percentage shall be 17.5%. For fiscal year 2008,
8    the Annual Percentage shall be 15.5%. For fiscal year 2009,
9    the Annual Percentage shall be 17.5%. For fiscal year 2010,
10    the Annual Percentage shall be 17.5%. For fiscal year 2011,
11    the Annual Percentage shall be 17.5%. For fiscal year 2012,
12    the Annual Percentage shall be 17.5%. For fiscal year 2013,
13    the Annual Percentage shall be 14%. For fiscal year 2014,
14    the Annual Percentage shall be 13.4%. For all other fiscal
15    years, the Annual Percentage shall be calculated as a
16    fraction, the numerator of which shall be the amount of
17    refunds approved for payment by the Department during the
18    preceding fiscal year as a result of overpayment of tax
19    liability under subsections (a) and (b)(6), (7), and (8),
20    (c) and (d) of Section 201 of this Act plus the amount of
21    such refunds remaining approved but unpaid at the end of
22    the preceding fiscal year, and the denominator of which
23    shall be the amounts which will be collected pursuant to
24    subsections (a) and (b)(6), (7), and (8), (c) and (d) of
25    Section 201 of this Act during the preceding fiscal year;
26    except that in State fiscal year 2002, the Annual

 

 

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1    Percentage shall in no event exceed 23%. The Director of
2    Revenue shall certify the Annual Percentage to the
3    Comptroller on the last business day of the fiscal year
4    immediately preceding the fiscal year for which it is to be
5    effective.
6        (3) The Comptroller shall order transferred and the
7    Treasurer shall transfer from the Tobacco Settlement
8    Recovery Fund to the Income and Property Tax Refund Fund
9    (i) $35,000,000 in January, 2001, (ii) $35,000,000 in
10    January, 2002, and (iii) $35,000,000 in January, 2003.
11    (d) Expenditures from Income and Property Tax Refund Fund.
12        (1) Beginning January 1, 1989, money in the Income Tax
13    Refund Fund shall be expended exclusively for the purpose
14    of paying refunds resulting from overpayment of tax
15    liability under Section 201 of this Act, for paying rebates
16    under Section 208.1 in the event that the amounts in the
17    Homeowners' Tax Relief Fund are insufficient for that
18    purpose, for paying refunds under the Property Tax Refund
19    Act, and for making transfers pursuant to this subsection
20    (d).
21        (2) The Director shall order payment of refunds
22    resulting from overpayment of tax liability under Section
23    201 of this Act from the Income and Property Tax Refund
24    Fund only to the extent that amounts collected pursuant to
25    Section 201 of this Act and transfers pursuant to this
26    subsection (d) and item (3) of subsection (c) have been

 

 

09800HB0396ham001- 29 -LRB098 03215 HLH 59782 a

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

 

 

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1    year.
2        (4.5) As soon as possible after the end of fiscal year
3    1999 and of each fiscal year thereafter, the Director shall
4    order transferred and the State Treasurer and State
5    Comptroller shall transfer from the Income and Property Tax
6    Refund Fund to the General Revenue Fund any surplus
7    remaining in the Income and Property Tax Refund Fund as of
8    the end of such fiscal year; excluding for fiscal years
9    2000, 2001, and 2002 amounts attributable to transfers
10    under item (3) of subsection (c) less refunds resulting
11    from the earned income tax credit.
12        (5) This Act shall constitute an irrevocable and
13    continuing appropriation from the Income and Property Tax
14    Refund Fund for the purpose of paying refunds upon the
15    order of the Director in accordance with the provisions of
16    this Section.
17    (e) Deposits into the Education Assistance Fund and the
18Income Tax Surcharge Local Government Distributive Fund.
19    On July 1, 1991, and thereafter, of the amounts collected
20pursuant to subsections (a) and (b) of Section 201 of this Act,
21minus deposits into the Income and Property Tax Refund Fund,
22the Department shall deposit 7.3% into the Education Assistance
23Fund in the State Treasury. Beginning July 1, 1991, and
24continuing through January 31, 1993, of the amounts collected
25pursuant to subsections (a) and (b) of Section 201 of the
26Illinois Income Tax Act, minus deposits into the Income and

 

 

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1Property Tax Refund Fund, the Department shall deposit 3.0%
2into the Income Tax Surcharge Local Government Distributive
3Fund in the State Treasury. Beginning February 1, 1993 and
4continuing through June 30, 1993, of the amounts collected
5pursuant to subsections (a) and (b) of Section 201 of the
6Illinois Income Tax Act, minus deposits into the Income and
7Property Tax Refund Fund, the Department shall deposit 4.4%
8into the Income Tax Surcharge Local Government Distributive
9Fund in the State Treasury. Beginning July 1, 1993, and
10continuing through June 30, 1994, of the amounts collected
11under subsections (a) and (b) of Section 201 of this Act, minus
12deposits into the Income and Property Tax Refund Fund, the
13Department shall deposit 1.475% into the Income Tax Surcharge
14Local Government Distributive Fund in the State Treasury.
15    (f) Deposits into the Fund for the Advancement of
16Education. Beginning February 1, 2015, the Department shall
17deposit the following portions of the revenue realized from the
18tax imposed upon individuals, trusts, and estates by
19subsections (a) and (b) of Section 201 of this Act during the
20preceding month, minus deposits into the Income Tax Refund
21Fund, into the Fund for the Advancement of Education:
22        (1) beginning February 1, 2015, and prior to February
23    1, 2025, 1/30; and
24        (2) beginning February 1, 2025, 1/26.
25    If the rate of tax imposed by subsection (a) and (b) of
26Section 201 is reduced pursuant to Section 201.5 of this Act,

 

 

09800HB0396ham001- 32 -LRB098 03215 HLH 59782 a

1the Department shall not make the deposits required by this
2subsection (f) on or after the effective date of the reduction.
3    (g) Deposits into the Commitment to Human Services Fund.
4Beginning February 1, 2015, the Department shall deposit the
5following portions of the revenue realized from the tax imposed
6upon individuals, trusts, and estates by subsections (a) and
7(b) of Section 201 of this Act during the preceding month,
8minus deposits into the Income and Property Tax Refund Fund,
9into the Commitment to Human Services Fund:
10        (1) beginning February 1, 2015, and prior to February
11    1, 2025, 1/30; and
12        (2) beginning February 1, 2025, 1/26.
13    If the rate of tax imposed by subsection (a) and (b) of
14Section 201 is reduced pursuant to Section 201.5 of this Act,
15the Department shall not make the deposits required by this
16subsection (g) on or after the effective date of the reduction.
17(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24,
18eff. 6-19-13.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.".