Sen. Thomas Cullerton

Filed: 5/29/2014

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 961

2    AMENDMENT NO. ______. Amend House Bill 961 by replacing
3everything after the enacting clause with the following:
 
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. Through June
830, 1994, as soon as may be after the first day of each month
9the Department of Revenue shall certify to the Treasurer an
10amount equal to 1/12 of the net revenue realized from the tax
11imposed by subsections (a) and (b) of Section 201 of the
12Illinois Income Tax Act during the preceding month. Beginning
13July 1, 1994, and continuing through June 30, 1995, as soon as
14may be after the first day of each month, the Department of
15Revenue shall certify to the Treasurer an amount equal to 1/11
16of the net revenue realized from the tax imposed by subsections

 

 

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1(a) and (b) of Section 201 of the Illinois Income Tax Act
2during the preceding month. Beginning July 1, 1995, as soon as
3may be after the first day of each month, the Department of
4Revenue shall certify to the Treasurer an amount equal to the
5amounts calculated pursuant to subsection (b) of Section 901 of
6the Illinois Income Tax Act based on 1/10 of the net revenue
7realized from the tax imposed by subsections (a) and (b) of
8Section 201 of the Illinois Income Tax Act during the preceding
9month. Net revenue realized for a month shall be defined as the
10revenue from the tax imposed by subsections (a) and (b) of
11Section 201 of the Illinois Income Tax Act which is deposited
12in the General Revenue Fund, the Education Assistance Fund and
13the Income Tax Surcharge Local Government Distributive Fund
14during the month minus the amount paid out of the General
15Revenue Fund in State warrants during that same month as
16refunds to taxpayers for overpayment of liability under the tax
17imposed by subsections (a) and (b) of Section 201 of the
18Illinois Income Tax Act. Upon receipt of such certification,
19the Treasurer shall transfer from the General Revenue Fund to a
20special fund in the State treasury, to be known as the "Local
21Government Distributive Fund", the amount shown on such
22certification.
23    Beginning on the effective date of this amendatory Act of
24the 98th General Assembly, the Comptroller shall perform the
25transfers required by this Section no later than 60 days after
26he or she receives the certification from the Treasurer.

 

 

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1    All amounts paid into the Local Government Distributive
2Fund in accordance with this Section and allocated pursuant to
3this Act are appropriated on a continuing basis.
4(Source: P.A. 88-89.)
 
5    Section 10. The Illinois Income Tax Act is amended by
6changing Section 901 as follows:
 
7    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
8    Sec. 901. Collection Authority.
9    (a) In general.
10    The Department shall collect the taxes imposed by this Act.
11The Department shall collect certified past due child support
12amounts under Section 2505-650 of the Department of Revenue Law
13(20 ILCS 2505/2505-650). Except as provided in subsections (c),
14(e), (f), and (g) of this Section, money collected pursuant to
15subsections (a) and (b) of Section 201 of this Act shall be
16paid into the General Revenue Fund in the State treasury; money
17collected pursuant to subsections (c) and (d) of Section 201 of
18this Act shall be paid into the Personal Property Tax
19Replacement Fund, a special fund in the State Treasury; and
20money collected under Section 2505-650 of the Department of
21Revenue Law (20 ILCS 2505/2505-650) shall be paid into the
22Child Support Enforcement Trust Fund, a special fund outside
23the State Treasury, or to the State Disbursement Unit
24established 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 Treasurer shall
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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16% (10% of the ratio of the 3% individual income tax rate prior
2to 2011 to the 5% individual income tax rate after 2010) of the
3net revenue realized from the tax imposed by subsections (a)
4and (b) of Section 201 of this Act upon individuals, trusts,
5and estates during the preceding month and (ii) 6.86% (10% of
6the ratio of the 4.8% corporate income tax rate prior to 2011
7to the 7% corporate income tax rate after 2010) of the net
8revenue realized from the tax imposed by subsections (a) and
9(b) of Section 201 of this Act upon corporations during the
10preceding month. Beginning February 1, 2015 and continuing
11through January 31, 2025, the Treasurer shall transfer each
12month from the General Revenue Fund to the Local Government
13Distributive Fund an amount equal to the sum of (i) 8% (10% of
14the ratio of the 3% individual income tax rate prior to 2011 to
15the 3.75% individual income tax rate after 2014) of the net
16revenue realized from the tax imposed by subsections (a) and
17(b) of Section 201 of this Act upon individuals, trusts, and
18estates during the preceding month and (ii) 9.14% (10% of the
19ratio of the 4.8% corporate income tax rate prior to 2011 to
20the 5.25% corporate income tax rate after 2014) of the net
21revenue realized from the tax imposed by subsections (a) and
22(b) of Section 201 of this Act upon corporations during the
23preceding month. Beginning February 1, 2025, the Treasurer
24shall transfer each month from the General Revenue Fund to the
25Local Government Distributive Fund an amount equal to the sum
26of (i) 9.23% (10% of the ratio of the 3% individual income tax

 

 

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1rate prior to 2011 to the 3.25% individual income tax rate
2after 2024) of the net revenue realized from the tax imposed by
3subsections (a) and (b) of Section 201 of this Act upon
4individuals, trusts, and estates during the preceding month and
5(ii) 10% of the net revenue realized from the tax imposed by
6subsections (a) and (b) of Section 201 of this Act upon
7corporations during the preceding month. Net revenue realized
8for a month shall be defined as the revenue from the tax
9imposed by subsections (a) and (b) of Section 201 of this Act
10which is deposited in the General Revenue Fund, the Education
11Assistance Fund, the Income Tax Surcharge Local Government
12Distributive Fund, the Fund for the Advancement of Education,
13and the Commitment to Human Services Fund during the month
14minus the amount paid out of the General Revenue Fund in State
15warrants during that same month as refunds to taxpayers for
16overpayment of liability under the tax imposed by subsections
17(a) and (b) of Section 201 of this Act.
18    Beginning on the effective date of this amendatory Act of
19the 98th General Assembly, the Comptroller shall perform the
20transfers required by this subsection (b) no later than 60 days
21after he or she receives the certification from the Treasurer
22as provided in Section 1 of the State Revenue Sharing Act.
23    (c) Deposits Into Income Tax Refund Fund.
24        (1) Beginning on January 1, 1989 and thereafter, the
25    Department shall deposit a percentage of the amounts
26    collected pursuant to subsections (a) and (b)(1), (2), and

 

 

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1    (3), of Section 201 of this Act into a fund in the State
2    treasury known as the Income Tax Refund Fund. The
3    Department shall deposit 6% of such amounts during the
4    period beginning January 1, 1989 and ending on June 30,
5    1989. Beginning with State fiscal year 1990 and for each
6    fiscal year thereafter, the percentage deposited into the
7    Income Tax Refund Fund during a fiscal year shall be the
8    Annual Percentage. For fiscal years 1999 through 2001, the
9    Annual Percentage shall be 7.1%. For fiscal year 2003, the
10    Annual Percentage shall be 8%. For fiscal year 2004, the
11    Annual Percentage shall be 11.7%. Upon the effective date
12    of this amendatory Act of the 93rd General Assembly, the
13    Annual Percentage shall be 10% for fiscal year 2005. For
14    fiscal year 2006, the Annual Percentage shall be 9.75%. For
15    fiscal year 2007, the Annual Percentage shall be 9.75%. For
16    fiscal year 2008, the Annual Percentage shall be 7.75%. For
17    fiscal year 2009, the Annual Percentage shall be 9.75%. For
18    fiscal year 2010, the Annual Percentage shall be 9.75%. For
19    fiscal year 2011, the Annual Percentage shall be 8.75%. For
20    fiscal year 2012, the Annual Percentage shall be 8.75%. For
21    fiscal year 2013, the Annual Percentage shall be 9.75%. For
22    fiscal year 2014, the Annual Percentage shall be 9.5%. For
23    all other fiscal years, the Annual Percentage shall be
24    calculated as a fraction, the numerator of which shall be
25    the amount of refunds approved for payment by the
26    Department during the preceding fiscal year as a result of

 

 

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

 

 

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1    the Annual Percentage shall be 27%. For fiscal year 2004,
2    the Annual Percentage shall be 32%. Upon the effective date
3    of this amendatory Act of the 93rd General Assembly, the
4    Annual Percentage shall be 24% for fiscal year 2005. For
5    fiscal year 2006, the Annual Percentage shall be 20%. For
6    fiscal year 2007, the Annual Percentage shall be 17.5%. For
7    fiscal year 2008, the Annual Percentage shall be 15.5%. For
8    fiscal year 2009, the Annual Percentage shall be 17.5%. For
9    fiscal year 2010, the Annual Percentage shall be 17.5%. For
10    fiscal year 2011, the Annual Percentage shall be 17.5%. For
11    fiscal year 2012, the Annual Percentage shall be 17.5%. For
12    fiscal year 2013, the Annual Percentage shall be 14%. For
13    fiscal year 2014, the Annual Percentage shall be 13.4%. For
14    all other fiscal years, the Annual Percentage shall be
15    calculated as a fraction, the numerator of which shall be
16    the amount of refunds approved for payment by the
17    Department during the preceding fiscal year as a result of
18    overpayment of tax liability under subsections (a) and
19    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
20    Act plus the amount of such refunds remaining approved but
21    unpaid at the end of the preceding fiscal year, and the
22    denominator of which shall be the amounts which will be
23    collected pursuant to subsections (a) and (b)(6), (7), and
24    (8), (c) and (d) of Section 201 of this Act during the
25    preceding fiscal year; except that in State fiscal year
26    2002, the Annual Percentage shall in no event exceed 23%.

 

 

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

 

 

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

 

 

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1    Comptroller shall transfer from the Income Tax Refund Fund
2    to the General Revenue Fund any surplus remaining in the
3    Income Tax Refund Fund as of the end of such fiscal year;
4    excluding for fiscal years 2000, 2001, and 2002 amounts
5    attributable to transfers under item (3) of subsection (c)
6    less refunds resulting from the earned income tax credit.
7        (5) This Act shall constitute an irrevocable and
8    continuing appropriation from the Income Tax Refund Fund
9    for the purpose of paying refunds upon the order of the
10    Director in accordance with the provisions of this Section.
11    (e) Deposits into the Education Assistance Fund and the
12Income Tax Surcharge Local Government Distributive Fund.
13    On July 1, 1991, and thereafter, of the amounts collected
14pursuant to subsections (a) and (b) of Section 201 of this Act,
15minus deposits into the Income Tax Refund Fund, the Department
16shall deposit 7.3% into the Education Assistance Fund in the
17State Treasury. Beginning July 1, 1991, and continuing through
18January 31, 1993, of the amounts collected pursuant to
19subsections (a) and (b) of Section 201 of the Illinois Income
20Tax Act, minus deposits into the Income Tax Refund Fund, the
21Department shall deposit 3.0% into the Income Tax Surcharge
22Local Government Distributive Fund in the State Treasury.
23Beginning February 1, 1993 and continuing through June 30,
241993, of the amounts collected pursuant to subsections (a) and
25(b) of Section 201 of the Illinois Income Tax Act, minus
26deposits into the Income Tax Refund Fund, the Department shall

 

 

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1deposit 4.4% into the Income Tax Surcharge Local Government
2Distributive Fund in the State Treasury. Beginning July 1,
31993, and continuing through June 30, 1994, of the amounts
4collected under subsections (a) and (b) of Section 201 of this
5Act, minus deposits into the Income Tax Refund Fund, the
6Department shall deposit 1.475% into the Income Tax Surcharge
7Local Government Distributive Fund in the State Treasury.
8    (f) Deposits into the Fund for the Advancement of
9Education. Beginning February 1, 2015, the Department shall
10deposit the following portions of the revenue realized from the
11tax imposed upon individuals, trusts, and estates by
12subsections (a) and (b) of Section 201 of this Act during the
13preceding month, minus deposits into the Income Tax Refund
14Fund, into the Fund for the Advancement of Education:
15        (1) beginning February 1, 2015, and prior to February
16    1, 2025, 1/30; and
17        (2) beginning February 1, 2025, 1/26.
18    If the rate of tax imposed by subsection (a) and (b) of
19Section 201 is reduced pursuant to Section 201.5 of this Act,
20the Department shall not make the deposits required by this
21subsection (f) on or after the effective date of the reduction.
22    (g) Deposits into the Commitment to Human Services Fund.
23Beginning February 1, 2015, the Department shall deposit the
24following portions of the revenue realized from the tax imposed
25upon individuals, trusts, and estates by subsections (a) and
26(b) of Section 201 of this Act during the preceding month,

 

 

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1minus deposits into the Income Tax Refund Fund, into the
2Commitment to Human Services Fund:
3        (1) beginning February 1, 2015, and prior to February
4    1, 2025, 1/30; and
5        (2) beginning February 1, 2025, 1/26.
6    If the rate of tax imposed by subsection (a) and (b) of
7Section 201 is reduced pursuant to Section 201.5 of this Act,
8the Department shall not make the deposits required by this
9subsection (g) on or after the effective date of the reduction.
10(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24,
11eff. 6-19-13.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".