093_HB2941

 
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 1        AN ACT concerning taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The State Revenue Sharing Act is amended by
 5    changing Section 12 as follows:

 6        (30 ILCS 115/12) (from Ch. 85, par. 616)
 7        Sec. 12.  Personal Property Tax Replacement  Fund.  There
 8    is hereby created the Personal Property Tax Replacement Fund,
 9    a special fund in the State Treasury into which shall be paid
10    all revenue realized:
11        (a)  all  amounts  realized  from the additional personal
12    property tax replacement income tax  imposed  by  subsections
13    (c)  and  (d)  of Section 201 of the Illinois Income Tax Act,
14    except for those amounts deposited into the Income Tax Refund
15    Fund pursuant  to  subsection  (c)  of  Section  901  of  the
16    Illinois Income Tax Act; and
17        (b)  all  amounts  realized  from the additional personal
18    property  replacement  invested  capital  taxes  imposed   by
19    Section 2a.1 of the Messages Tax Act, Section 2a.1 of the Gas
20    Revenue  Tax  Act,   Section  2a.1  of  the  Public Utilities
21    Revenue Act, and Section 3  of  the  Water  Company  Invested
22    Capital  Tax  Act,  and  amounts payable to the Department of
23    Revenue   under   the    Telecommunications    Infrastructure
24    Maintenance Fee Act.
25        As  soon  as  may  be  after  the  end of each month, the
26    Department of Revenue must shall certify to the Treasurer and
27    the Comptroller the amount of all refunds  paid  out  of  the
28    General  Revenue  Fund through the preceding month on account
29    of overpayment of liability on taxes paid into  the  Personal
30    Property   Tax   Replacement   Fund.  Upon  receipt  of  such
31    certification,  the  Treasurer  and  the  Comptroller   shall
 
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 1    transfer  the  amount so certified from the Personal Property
 2    Tax Replacement Fund into the General Revenue Fund.
 3        The payments of revenue into the  Personal  Property  Tax
 4    Replacement  Fund  shall be used exclusively for distribution
 5    to taxing districts as provided in this Section,  payment  of
 6    the  expenses  of  the  Department  of  Revenue  incurred  in
 7    administering  the collection and distribution of monies paid
 8    into the Personal Property Tax Replacement Fund and transfers
 9    due to refunds to taxpayers for overpayment of liability  for
10    taxes paid into the Personal Property Tax Replacement Fund.
11        As  soon  as  may  be  after  the  effective date of this
12    amendatory Act of  1980,  the  Department  of  Revenue  shall
13    certify  to  the  Treasurer  the  amount  of  net replacement
14    revenue paid into the General  Revenue  Fund  prior  to  that
15    effective  date  from  the  additional tax imposed by Section
16    2a.1 of the Messages Tax Act; Section 2a.1 of the Gas Revenue
17    Tax Act; Section 2a.1 of the Public  Utilities  Revenue  Act;
18    Section  3  of  the  Water  Company Invested Capital Tax Act;
19    amounts collected by the  Department  of  Revenue  under  the
20    Telecommunications  Infrastructure  Maintenance  Fee Act; and
21    the additional personal property tax replacement  income  tax
22    imposed  by the Illinois Income Tax Act, as amended by Public
23    Act 81-1st Special Session-1. Net replacement  revenue  shall
24    be defined as the total amount paid into and remaining in the
25    General  Revenue  Fund  as  a  result of those Acts minus the
26    amount outstanding and obligated  from  the  General  Revenue
27    Fund  in  state  vouchers  or warrants prior to the effective
28    date of this amendatory Act of 1980 as refunds  to  taxpayers
29    for overpayment of liability under those Acts.
30        All interest earned by monies accumulated in the Personal
31    Property  Tax  Replacement  Fund  shall  be deposited in such
32    Fund. All amounts allocated  pursuant  to  this  Section  are
33    appropriated on a continuing basis.
34        Prior  to  December 31, 1980, as soon as may be after the
 
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 1    end  of  each  quarter  beginning  with  the  quarter  ending
 2    December 31, 1979, and on and after  December  31,  1980,  as
 3    soon as may be after January 1, March 1, April 1, May 1, July
 4    1,  August  1,  October  1  and  December 1 of each year, the
 5    Department of Revenue shall allocate to each taxing  district
 6    as  defined  in  Section  1-150  of the Property Tax Code, in
 7    accordance with the  provisions  of  paragraph  (2)  of  this
 8    Section  the  portion  of  the  funds  held  in  the Personal
 9    Property  Tax  Replacement  Fund  which  is  required  to  be
10    distributed, as provided in paragraph (1), for each  quarter.
11    Provided,  however,  under  no circumstances shall any taxing
12    district during each of the first two years  of  distribution
13    of  the  taxes  imposed  by  this  amendatory  Act of 1979 be
14    entitled to an annual allocation which is less than the funds
15    such  taxing  district  collected  from  the  1978   personal
16    property  tax.  Provided  further that under no circumstances
17    shall  any  taxing  district  during  the   third   year   of
18    distribution  of  the taxes imposed by this amendatory Act of
19    1979 receive less than 60% of the funds such taxing  district
20    collected  from  the 1978 personal property tax. In the event
21    that the total of the allocations made as above provided  for
22    all  taxing districts, during either of such 3 years, exceeds
23    the amount available for distribution the allocation of  each
24    taxing  district  shall be proportionately reduced. Except as
25    provided in Section 13 of this Act, the Department shall then
26    certify, pursuant to appropriation, such allocations  to  the
27    State  Comptroller  who  shall pay over to the several taxing
28    districts the respective amounts allocated to them.
29        Any township which receives an allocation based in  whole
30    or  in  part  upon  personal  property  taxes which it levied
31    pursuant to Section 6-507 or 6-512 of  the  Illinois  Highway
32    Code  and  which was previously required to be paid over to a
33    municipality shall immediately pay over to that  municipality
34    a  proportionate  share  of the personal property replacement
 
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 1    funds which such township receives.
 2        Any municipality or township, other than  a  municipality
 3    with  a  population  in  excess of 500,000, which receives an
 4    allocation based in whole or in  part  on  personal  property
 5    taxes  which  it levied pursuant to Sections 3-1, 3-4 and 3-6
 6    of the Illinois Local Library Act and  which  was  previously
 7    required   to   be  paid  over  to  a  public  library  shall
 8    immediately pay over to that library a proportionate share of
 9    the  personal  property  tax  replacement  funds  which  such
10    municipality or township receives; provided that  if  such  a
11    public library has converted to a library organized under The
12    Illinois  Public  Library District Act, regardless of whether
13    such conversion has occurred on, after or before  January  1,
14    1988, such proportionate share shall be immediately paid over
15    to  the  library  district  which  maintains and operates the
16    library. However, any library that  has  converted  prior  to
17    January  1,  1988,  and  which  hitherto has not received the
18    personal property tax replacement funds, shall  receive  such
19    funds commencing on January 1, 1988.
20        Any  township which receives an allocation based in whole
21    or in  part  on  personal  property  taxes  which  it  levied
22    pursuant to Section 1c of the Public Graveyards Act and which
23    taxes were previously required to be paid over to or used for
24    such public cemetery or cemeteries shall immediately pay over
25    to   or   use  for  such  public  cemetery  or  cemeteries  a
26    proportionate share of the personal property tax  replacement
27    funds which the township receives.
28        Any taxing district which receives an allocation based in
29    whole or in part upon personal property taxes which it levied
30    for  another  governmental  body  or  school district in Cook
31    County in 1976 or for another  governmental  body  or  school
32    district  in  the  remainder  of  the  State  in  1977  shall
33    immediately  pay  over  to  that  governmental body or school
34    district the amount of personal  property  replacement  funds
 
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 1    which such governmental body or school district would receive
 2    directly  under  the  provisions  of  paragraph  (2)  of this
 3    Section, had it levied its own taxes.
 4             (1)  The  portion  of  the  Personal  Property   Tax
 5        Replacement  Fund  required  to  be distributed as of the
 6        time allocation is required  to  be  made  shall  be  the
 7        amount  available  in such Fund as of the time allocation
 8        is required to be made.
 9             The amount available for distribution shall  be  the
10        total amount in the fund at such time minus the necessary
11        administrative  expenses  as limited by the appropriation
12        and the amount  determined  by:   (a)  $2.8  million  for
13        fiscal  year  1981; (b) for fiscal year 1982, .54% of the
14        funds distributed from  the  fund  during  the  preceding
15        fiscal year; (c) for fiscal year 1983 through fiscal year
16        1988,  .54% of the funds distributed from the fund during
17        the preceding fiscal year less  .02%  of  such  fund  for
18        fiscal  year  1983  and  less .02% of such funds for each
19        fiscal year thereafter, or (d) for fiscal year  1989  and
20        beyond  no  more  than  105% of the actual administrative
21        expenses of the prior fiscal year. Such  portion  of  the
22        fund  shall  be  determined  after  the transfer into the
23        General Revenue Fund due to refunds, if  any,  paid  from
24        the General Revenue Fund during the preceding quarter. If
25        at any time, for any reason, there is insufficient amount
26        in the Personal Property Tax Replacement Fund for payment
27        of  costs  of  administration  or  for  transfers  due to
28        refunds at the end of any particular month, the amount of
29        such insufficiency shall be carried over for the purposes
30        of transfers  into  the  General  Revenue  Fund  and  for
31        purposes  of  costs  of  administration  to the following
32        month or  months.   Net  replacement  revenue  held,  and
33        defined  above, shall be transferred by the Treasurer and
34        Comptroller to the Personal Property Tax Replacement Fund
 
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 1        within 10 days of such certification.
 2             (2)  Each  quarterly  allocation  shall   first   be
 3        apportioned  in  the  following manner: 51.65% for taxing
 4        districts in Cook County and 48.35% for taxing  districts
 5        in the remainder of the State.
 6        The  Personal  Property  Replacement Ratio of each taxing
 7    district outside Cook County shall be the ratio which the Tax
 8    Base of that taxing district bears to the Downstate Tax Base.
 9    The Tax Base of each taxing district outside of  Cook  County
10    is  the  personal  property  tax  collections for that taxing
11    district for the 1977 tax year.  The Downstate  Tax  Base  is
12    the   personal   property  tax  collections  for  all  taxing
13    districts in the State outside of Cook County  for  the  1977
14    tax  year.  The Department of Revenue shall have authority to
15    review for accuracy and completeness  the  personal  property
16    tax  collections for each taxing district outside Cook County
17    for the 1977 tax year.
18        The Personal Property  Replacement  Ratio  of  each  Cook
19    County  taxing district shall be the ratio which the Tax Base
20    of that taxing district bears to the Cook  County  Tax  Base.
21    The  Tax  Base  of  each  Cook  County taxing district is the
22    personal property tax collections for  that  taxing  district
23    for  the  1976  tax  year.   The  Cook County Tax Base is the
24    personal property tax collections for all taxing districts in
25    Cook County for the 1976 tax year. The Department of  Revenue
26    shall  have authority to review for accuracy and completeness
27    the  personal  property  tax  collections  for  each   taxing
28    district within Cook County for the 1976 tax year.
29        For  all  purposes  of this Section 12, amounts paid to a
30    taxing district for such tax years as may be applicable by  a
31    foreign  corporation under the provisions of Section 7-202 of
32    the Public Utilities Act, as amended, shall be deemed  to  be
33    personal property taxes collected by such taxing district for
34    such  tax  years  as  may  be  applicable. The Director shall
 
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 1    determine from the Illinois Commerce Commission, for any  tax
 2    year  as  may  be applicable, the amounts so paid by any such
 3    foreign corporation to any  and  all  taxing  districts.  The
 4    Illinois  Commerce  Commission shall furnish such information
 5    to the Director. For all purposes of  this  Section  12,  the
 6    Director  shall  deem  such  amounts to be collected personal
 7    property  taxes  of  each  such  taxing  district   for   the
 8    applicable tax year or years.
 9        Taxing  districts  located both in Cook County and in one
10    or more other counties  shall  receive  both  a  Cook  County
11    allocation  and a Downstate allocation determined in the same
12    way as all other taxing districts.
13        If any taxing district  in  existence  on  July  1,  1979
14    ceases to exist, or discontinues its operations, its Tax Base
15    shall thereafter be deemed to be zero.  If the powers, duties
16    and  obligations  of  the  discontinued  taxing  district are
17    assumed by another taxing  district,  the  Tax  Base  of  the
18    discontinued  taxing  district shall be added to the Tax Base
19    of the taxing  district  assuming  such  powers,  duties  and
20    obligations.
21        If  two  or more taxing districts in existence on July 1,
22    1979, or a successor or successors thereto shall  consolidate
23    into  one  taxing district, the Tax Base of such consolidated
24    taxing district shall be the sum of the Tax Bases of each  of
25    the taxing districts which have consolidated.
26        If a single taxing district in existence on July 1, 1979,
27    or  a  successor  or successors thereto shall be divided into
28    two or more separate taxing districts, the tax  base  of  the
29    taxing  district so divided shall be allocated to each of the
30    resulting taxing districts in proportion to the then  current
31    equalized assessed value of each resulting taxing district.
32        If  a  portion  of  the territory of a taxing district is
33    disconnected and annexed to another taxing  district  of  the
34    same  type,  the  Tax  Base of the taxing district from which
 
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 1    disconnection was made shall be reduced in proportion to  the
 2    then  current  equalized  assessed  value of the disconnected
 3    territory  as  compared  with  the  then  current   equalized
 4    assessed  value  within  the  entire  territory of the taxing
 5    district prior to  disconnection,  and  the  amount  of  such
 6    reduction  shall  be  added  to  the  Tax  Base of the taxing
 7    district to which annexation is made.
 8        If a community college district is created after July  1,
 9    1979,  beginning on the effective date of this amendatory Act
10    of 1995, its Tax Base  shall  be  3.5%  of  the  sum  of  the
11    personal  property tax collected for the 1977 tax year within
12    the territorial jurisdiction of the district.
13        The  amounts  allocated  and  paid  to  taxing  districts
14    pursuant to the provisions of this  amendatory  Act  of  1979
15    shall  be  deemed  to be substitute revenues for the revenues
16    derived from taxes imposed on personal property  pursuant  to
17    the  provisions  of  the "Revenue Act of 1939" or "An Act for
18    the assessment and taxation of private car  line  companies",
19    approved  July  22,  1943,  as amended, or Section 414 of the
20    Illinois Insurance Code, prior to the abolition of such taxes
21    and shall be used for  the  same  purposes  as  the  revenues
22    derived from ad valorem taxes on real estate.
23        Monies received by any taxing districts from the Personal
24    Property  Tax  Replacement Fund shall be first applied toward
25    payment of the proportionate amount of debt service which was
26    previously  levied  and  collected  from  extensions  against
27    personal property on bonds outstanding  as  of  December  31,
28    1978  and  next  applied  toward payment of the proportionate
29    share of the pension or retirement obligations of the  taxing
30    district  which  were  previously  levied  and collected from
31    extensions  against  personal   property.   For   each   such
32    outstanding  bond issue, the County Clerk shall determine the
33    percentage of the  debt  service  which  was  collected  from
34    extensions  against  real  estate  in the taxing district for
 
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 1    1978 taxes payable in 1979, as related to the total amount of
 2    such levies and collections from extensions against both real
 3    and personal property.  For 1979 and subsequent years' taxes,
 4    the County Clerk shall levy and extend taxes against the real
 5    estate of each taxing district  which  will  yield  the  said
 6    percentage  or  percentages  of  the  debt  service  on  such
 7    outstanding  bonds.  The  balance  of the amount necessary to
 8    fully pay such debt service  shall  constitute  a  first  and
 9    prior  lien  upon  the  monies  received  by each such taxing
10    district through the Personal Property Tax  Replacement  Fund
11    and shall be first applied or set aside for such purpose.  In
12    counties   having   fewer  than  3,000,000  inhabitants,  the
13    amendments to this paragraph as made by this  amendatory  Act
14    of   1980  shall  be  first  applicable to  1980  taxes to be
15    collected in 1981.
16    (Source: P.A. 92-526, eff. 1-1-03.)