98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3873

 

Introduced , by Rep. Michael J. Madigan

 

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

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


LRB098 15432 JWD 50462 b

 

 

A BILL FOR

 

HB3873LRB098 15432 JWD 50462 b

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

 

 

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

 

 

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1reimbursements payable by the State Board of Elections under
2Section 4-25, 5-35, 6-71, 13-10, 13-10a, or 13-11 of the
3Election Code; and (iv) expenses of the Illinois Educational
4Labor Relations Board.
5    As soon as may be after the effective date of this
6amendatory Act of 1980, the Department of Revenue shall certify
7to the Treasurer the amount of net replacement revenue paid
8into the General Revenue Fund prior to that effective date from
9the additional tax imposed by Section 2a.1 of the Messages Tax
10Act; Section 2a.1 of the Gas Revenue Tax Act; Section 2a.1 of
11the Public Utilities Revenue Act; Section 3 of the Water
12Company Invested Capital Tax Act; amounts collected by the
13Department of Revenue under the Telecommunications
14Infrastructure Maintenance Fee Act; and the additional
15personal property tax replacement income tax imposed by the
16Illinois Income Tax Act, as amended by Public Act 81-1st
17Special Session-1. Net replacement revenue shall be defined as
18the total amount paid into and remaining in the General Revenue
19Fund as a result of those Acts minus the amount outstanding and
20obligated from the General Revenue Fund in state vouchers or
21warrants prior to the effective date of this amendatory Act of
221980 as refunds to taxpayers for overpayment of liability under
23those Acts.
24    All interest earned by monies accumulated in the Personal
25Property Tax Replacement Fund shall be deposited in such Fund.
26All amounts allocated pursuant to this Section are appropriated

 

 

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1on a continuing basis.
2    Prior to December 31, 1980, as soon as may be after the end
3of each quarter beginning with the quarter ending December 31,
41979, and on and after December 31, 1980, as soon as may be
5after January 1, March 1, April 1, May 1, July 1, August 1,
6October 1 and December 1 of each year, the Department of
7Revenue shall allocate to each taxing district as defined in
8Section 1-150 of the Property Tax Code, in accordance with the
9provisions of paragraph (2) of this Section the portion of the
10funds held in the Personal Property Tax Replacement Fund which
11is required to be distributed, as provided in paragraph (1),
12for each quarter. Provided, however, under no circumstances
13shall any taxing district during each of the first two years of
14distribution of the taxes imposed by this amendatory Act of
151979 be entitled to an annual allocation which is less than the
16funds such taxing district collected from the 1978 personal
17property tax. Provided further that under no circumstances
18shall any taxing district during the third year of distribution
19of the taxes imposed by this amendatory Act of 1979 receive
20less than 60% of the funds such taxing district collected from
21the 1978 personal property tax. In the event that the total of
22the allocations made as above provided for all taxing
23districts, during either of such 3 years, exceeds the amount
24available for distribution the allocation of each taxing
25district shall be proportionately reduced. Except as provided
26in Section 13 of this Act, the Department shall then certify,

 

 

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1pursuant to appropriation, such allocations to the State
2Comptroller who shall pay over to the several taxing districts
3the respective amounts allocated to them.
4    Any township which receives an allocation based in whole or
5in part upon personal property taxes which it levied pursuant
6to Section 6-507 or 6-512 of the Illinois Highway Code and
7which was previously required to be paid over to a municipality
8shall immediately pay over to that municipality a proportionate
9share of the personal property replacement funds which such
10township receives.
11    Any municipality or township, other than a municipality
12with a population in excess of 500,000, which receives an
13allocation based in whole or in part on personal property taxes
14which it levied pursuant to Sections 3-1, 3-4 and 3-6 of the
15Illinois Local Library Act and which was previously required to
16be paid over to a public library shall immediately pay over to
17that library a proportionate share of the personal property tax
18replacement funds which such municipality or township
19receives; provided that if such a public library has converted
20to a library organized under The Illinois Public Library
21District Act, regardless of whether such conversion has
22occurred on, after or before January 1, 1988, such
23proportionate share shall be immediately paid over to the
24library district which maintains and operates the library.
25However, any library that has converted prior to January 1,
261988, and which hitherto has not received the personal property

 

 

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1tax replacement funds, shall receive such funds commencing on
2January 1, 1988.
3    Any township which receives an allocation based in whole or
4in part on personal property taxes which it levied pursuant to
5Section 1c of the Public Graveyards Act and which taxes were
6previously required to be paid over to or used for such public
7cemetery or cemeteries shall immediately pay over to or use for
8such public cemetery or cemeteries a proportionate share of the
9personal property tax replacement funds which the township
10receives.
11    Any taxing district which receives an allocation based in
12whole or in part upon personal property taxes which it levied
13for another governmental body or school district in Cook County
14in 1976 or for another governmental body or school district in
15the remainder of the State in 1977 shall immediately pay over
16to that governmental body or school district the amount of
17personal property replacement funds which such governmental
18body or school district would receive directly under the
19provisions of paragraph (2) of this Section, had it levied its
20own taxes.
21        (1) The portion of the Personal Property Tax
22    Replacement Fund required to be distributed as of the time
23    allocation is required to be made shall be the amount
24    available in such Fund as of the time allocation is
25    required to be made.
26        The amount available for distribution shall be the

 

 

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

 

 

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1    statute. Such portion of the fund shall be determined after
2    the transfer into the General Revenue Fund due to refunds,
3    if any, paid from the General Revenue Fund during the
4    preceding quarter. If at any time, for any reason, there is
5    insufficient amount in the Personal Property Tax
6    Replacement Fund for payments for regional offices and
7    officials or local officials or payment of costs of
8    administration or for transfers due to refunds at the end
9    of any particular month, the amount of such insufficiency
10    shall be carried over for the purposes of payments for
11    regional offices and officials, local officials, transfers
12    into the General Revenue Fund, and costs of administration
13    to the following month or months. Net replacement revenue
14    held, and defined above, shall be transferred by the
15    Treasurer and Comptroller to the Personal Property Tax
16    Replacement Fund within 10 days of such certification.
17        (2) Each quarterly allocation shall first be
18    apportioned in the following manner: 51.65% for taxing
19    districts in Cook County and 48.35% for taxing districts in
20    the remainder of the State.
21    The Personal Property Replacement Ratio of each taxing
22district outside Cook County shall be the ratio which the Tax
23Base of that taxing district bears to the Downstate Tax Base.
24The Tax Base of each taxing district outside of Cook County is
25the personal property tax collections for that taxing district
26for the 1977 tax year. The Downstate Tax Base is the personal

 

 

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1property tax collections for all taxing districts in the State
2outside of Cook County for the 1977 tax year. The Department of
3Revenue shall have authority to review for accuracy and
4completeness the personal property tax collections for each
5taxing district outside Cook County for the 1977 tax year.
6    The Personal Property Replacement Ratio of each Cook County
7taxing district shall be the ratio which the Tax Base of that
8taxing district bears to the Cook County Tax Base. The Tax Base
9of each Cook County taxing district is the personal property
10tax collections for that taxing district for the 1976 tax year.
11The Cook County Tax Base is the personal property tax
12collections for all taxing districts in Cook County for the
131976 tax year. The Department of Revenue shall have authority
14to review for accuracy and completeness the personal property
15tax collections for each taxing district within Cook County for
16the 1976 tax year.
17    For all purposes of this Section 12, amounts paid to a
18taxing district for such tax years as may be applicable by a
19foreign corporation under the provisions of Section 7-202 of
20the Public Utilities Act, as amended, shall be deemed to be
21personal property taxes collected by such taxing district for
22such tax years as may be applicable. The Director shall
23determine from the Illinois Commerce Commission, for any tax
24year as may be applicable, the amounts so paid by any such
25foreign corporation to any and all taxing districts. The
26Illinois Commerce Commission shall furnish such information to

 

 

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1the Director. For all purposes of this Section 12, the Director
2shall deem such amounts to be collected personal property taxes
3of each such taxing district for the applicable tax year or
4years.
5    Taxing districts located both in Cook County and in one or
6more other counties shall receive both a Cook County allocation
7and a Downstate allocation determined in the same way as all
8other taxing districts.
9    If any taxing district in existence on July 1, 1979 ceases
10to exist, or discontinues its operations, its Tax Base shall
11thereafter be deemed to be zero. If the powers, duties and
12obligations of the discontinued taxing district are assumed by
13another taxing district, the Tax Base of the discontinued
14taxing district shall be added to the Tax Base of the taxing
15district assuming such powers, duties and obligations.
16    If two or more taxing districts in existence on July 1,
171979, or a successor or successors thereto shall consolidate
18into one taxing district, the Tax Base of such consolidated
19taxing district shall be the sum of the Tax Bases of each of
20the taxing districts which have consolidated.
21    If a single taxing district in existence on July 1, 1979,
22or a successor or successors thereto shall be divided into two
23or more separate taxing districts, the tax base of the taxing
24district so divided shall be allocated to each of the resulting
25taxing districts in proportion to the then current equalized
26assessed value of each resulting taxing district.

 

 

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1    If a portion of the territory of a taxing district is
2disconnected and annexed to another taxing district of the same
3type, the Tax Base of the taxing district from which
4disconnection was made shall be reduced in proportion to the
5then current equalized assessed value of the disconnected
6territory as compared with the then current equalized assessed
7value within the entire territory of the taxing district prior
8to disconnection, and the amount of such reduction shall be
9added to the Tax Base of the taxing district to which
10annexation is made.
11    If a community college district is created after July 1,
121979, beginning on the effective date of this amendatory Act of
131995, its Tax Base shall be 3.5% of the sum of the personal
14property tax collected for the 1977 tax year within the
15territorial jurisdiction of the district.
16    The amounts allocated and paid to taxing districts pursuant
17to the provisions of this amendatory Act of 1979 shall be
18deemed to be substitute revenues for the revenues derived from
19taxes imposed on personal property pursuant to the provisions
20of the "Revenue Act of 1939" or "An Act for the assessment and
21taxation of private car line companies", approved July 22,
221943, as amended, or Section 414 of the Illinois Insurance
23Code, prior to the abolition of such taxes and shall be used
24for the same purposes as the revenues derived from ad valorem
25taxes on real estate.
26    Monies received by any taxing districts from the Personal

 

 

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1Property Tax Replacement Fund shall be first applied toward
2payment of the proportionate amount of debt service which was
3previously levied and collected from extensions against
4personal property on bonds outstanding as of December 31, 1978
5and next applied toward payment of the proportionate share of
6the pension or retirement obligations of the taxing district
7which were previously levied and collected from extensions
8against personal property. For each such outstanding bond
9issue, the County Clerk shall determine the percentage of the
10debt service which was collected from extensions against real
11estate in the taxing district for 1978 taxes payable in 1979,
12as related to the total amount of such levies and collections
13from extensions against both real and personal property. For
141979 and subsequent years' taxes, the County Clerk shall levy
15and extend taxes against the real estate of each taxing
16district which will yield the said percentage or percentages of
17the debt service on such outstanding bonds. The balance of the
18amount necessary to fully pay such debt service shall
19constitute a first and prior lien upon the monies received by
20each such taxing district through the Personal Property Tax
21Replacement Fund and shall be first applied or set aside for
22such purpose. In counties having fewer than 3,000,000
23inhabitants, the amendments to this paragraph as made by this
24amendatory Act of 1980 shall be first applicable to 1980 taxes
25to be collected in 1981.
26(Source: P.A. 97-72, eff. 7-1-11; 97-619, eff. 11-14-11;

 

 

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197-732, eff. 6-30-12; 98-24, eff. 6-19-13.)