101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3785

 

Introduced 2/14/2020, by Sen. Michael E. Hastings

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/901

    Amends the Illinois Income Tax Act. Provides that, from February 1, 2021 through January 31, 2022, the amount transferred from the General Revenue Fund to the Local Government Distributive Fund shall be: (i) 8.5% of the net revenue realized from the tax imposed on individuals, trusts, and estates, and (ii) 9.355% of the net revenue realized from the tax imposed on corporations. Provides that, from February 1, 2022 through January 31, 2023, the amount transferred from the General Revenue Fund to the Local Government Distributive Fund shall be: (i) 9% of the net revenue realized from the tax imposed on individuals, trusts, and estates, and (ii) 9.57% of the net revenue realized from the tax imposed on corporations. Provides that, from February 1, 2023 through January 31, 2024, the amount transferred from the General Revenue Fund to the Local Government Distributive Fund shall be: (i) 9.5% of the net revenue realized from the tax imposed on individuals, trusts, and estates, and (ii) 9.785% of the net revenue realized from the tax imposed on corporations. Provides that, beginning on February 1, 2024, the Treasurer shall transfer each month from the General Revenue Fund to the Local Government Distributive Fund an amount equal to 10% of the net revenue realized from the tax imposed on individuals, trusts, estates, and corporations during the preceding month. Effective immediately.


LRB101 16530 HLH 65914 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3785LRB101 16530 HLH 65914 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 901 as follows:
 
6    (35 ILCS 5/901)
7    (Text of Section before amendment by P.A. 101-8)
8    Sec. 901. Collection authority.
9    (a) In general. The Department shall collect the taxes
10imposed by this Act. The Department shall collect certified
11past due child support amounts under Section 2505-650 of the
12Department of Revenue Law of the Civil Administrative Code of
13Illinois. Except as provided in subsections (b), (c), (e), (f),
14(g), and (h) 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 of the Civil Administrative Code of Illinois shall
22be paid into the Child Support Enforcement Trust Fund, a
23special fund outside the State Treasury, or to the State

 

 

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1Disbursement Unit established under Section 10-26 of the
2Illinois Public Aid Code, as directed by the Department of
3Healthcare and Family Services.
4    (b) Local Government Distributive Fund. Beginning August
51, 2017 and continuing through January 31, 2021, the Treasurer
6shall transfer each month from the General Revenue Fund to the
7Local Government Distributive Fund an amount equal to the sum
8of (i) 6.06% (10% of the ratio of the 3% individual income tax
9rate prior to 2011 to the 4.95% individual income tax rate
10after July 1, 2017) of the net revenue realized from the tax
11imposed by subsections (a) and (b) of Section 201 of this Act
12upon individuals, trusts, and estates during the preceding
13month and (ii) 6.85% (10% of the ratio of the 4.8% corporate
14income tax rate prior to 2011 to the 7% corporate income tax
15rate after July 1, 2017) of the net revenue realized from the
16tax imposed by subsections (a) and (b) of Section 201 of this
17Act upon corporations during the preceding month. Beginning
18February 1, 2021 and continuing through January 31, 2022, the
19Treasurer shall transfer each month from the General Revenue
20Fund to the Local Government Distributive Fund an amount equal
21to the sum of (i) 8.5% of the net revenue realized from the tax
22imposed by subsections (a) and (b) of Section 201 of this Act
23upon individuals, trusts, and estates during the preceding
24month and (ii) 9.355% of the net revenue realized from the tax
25imposed by subsections (a) and (b) of Section 201 of this Act
26upon corporations during the preceding month. Beginning

 

 

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1February 1, 2022 and continuing through January 31, 2023, the
2Treasurer shall transfer each month from the General Revenue
3Fund to the Local Government Distributive Fund an amount equal
4to the sum of (i) 9% of the net revenue realized from the tax
5imposed by subsections (a) and (b) of Section 201 of this Act
6upon individuals, trusts, and estates during the preceding
7month and (ii) 9.57% of the net revenue realized from the tax
8imposed by subsections (a) and (b) of Section 201 of this Act
9upon corporations during the preceding month. Beginning
10February 1, 2023 and continuing through January 31, 2024, the
11Treasurer shall transfer each month from the General Revenue
12Fund to the Local Government Distributive Fund an amount equal
13to the sum of (i) 9.5% of the net revenue realized from the tax
14imposed by subsections (a) and (b) of Section 201 of this Act
15upon individuals, trusts, and estates during the preceding
16month and (ii) 9.785% of the net revenue realized from the tax
17imposed by subsections (a) and (b) of Section 201 of this Act
18upon corporations during the preceding month. Beginning on
19February 1, 2024, the Treasurer shall transfer each month from
20the General Revenue Fund to the Local Government Distributive
21Fund an amount equal to 10% of the net revenue realized from
22the tax imposed on individuals, trusts, estates, and
23corporations by subsections (a) and (b) of Section 201 of the
24Illinois Income Tax Act during the preceding month. Net revenue
25realized for a month shall be defined as the revenue from the
26tax imposed by subsections (a) and (b) of Section 201 of this

 

 

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1Act which is deposited in the General Revenue Fund, the
2Education Assistance Fund, the Income Tax Surcharge Local
3Government Distributive Fund, the Fund for the Advancement of
4Education, and the Commitment to Human Services Fund during the
5month minus the amount paid out of the General Revenue Fund in
6State warrants during that same month as refunds to taxpayers
7for overpayment of liability under the tax imposed by
8subsections (a) and (b) of Section 201 of this Act.
9    Notwithstanding any provision of law to the contrary,
10beginning on July 6, 2017 (the effective date of Public Act
11100-23), those amounts required under this subsection (b) to be
12transferred by the Treasurer into the Local Government
13Distributive Fund from the General Revenue Fund shall be
14directly deposited into the Local Government Distributive Fund
15as the revenue is realized from the tax imposed by subsections
16(a) and (b) of Section 201 of this Act.
17    For State fiscal year 2020 only, notwithstanding any
18provision of law to the contrary, the total amount of revenue
19and deposits under this Section attributable to revenues
20realized during State fiscal year 2020 shall be reduced by 5%.
21    (c) Deposits Into Income Tax Refund Fund.
22        (1) Beginning on January 1, 1989 and thereafter, the
23    Department shall deposit a percentage of the amounts
24    collected pursuant to subsections (a) and (b)(1), (2), and
25    (3) of Section 201 of this Act into a fund in the State
26    treasury known as the Income Tax Refund Fund. Beginning

 

 

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1    with State fiscal year 1990 and for each fiscal year
2    thereafter, the percentage deposited into the Income Tax
3    Refund Fund during a fiscal year shall be the Annual
4    Percentage. For fiscal year 2011, the Annual Percentage
5    shall be 8.75%. For fiscal year 2012, the Annual Percentage
6    shall be 8.75%. For fiscal year 2013, the Annual Percentage
7    shall be 9.75%. For fiscal year 2014, the Annual Percentage
8    shall be 9.5%. For fiscal year 2015, the Annual Percentage
9    shall be 10%. For fiscal year 2018, the Annual Percentage
10    shall be 9.8%. For fiscal year 2019, the Annual Percentage
11    shall be 9.7%. For fiscal year 2020, the Annual Percentage
12    shall be 9.5%. For all other fiscal years, the Annual
13    Percentage shall be calculated as a fraction, the numerator
14    of which shall be the amount of refunds approved for
15    payment by the Department during the preceding fiscal year
16    as a result of overpayment of tax liability under
17    subsections (a) and (b)(1), (2), and (3) of Section 201 of
18    this Act plus the amount of such refunds remaining approved
19    but unpaid at the end of the preceding fiscal year, minus
20    the amounts transferred into the Income Tax Refund Fund
21    from the Tobacco Settlement Recovery Fund, and the
22    denominator of which shall be the amounts which will be
23    collected pursuant to subsections (a) and (b)(1), (2), and
24    (3) of Section 201 of this Act during the preceding fiscal
25    year; except that in State fiscal year 2002, the Annual
26    Percentage shall in no event exceed 7.6%. The Director of

 

 

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1    Revenue shall certify the Annual Percentage to the
2    Comptroller on the last business day of the fiscal year
3    immediately preceding the fiscal year for which it is to be
4    effective.
5        (2) Beginning on January 1, 1989 and thereafter, the
6    Department shall deposit a percentage of the amounts
7    collected pursuant to subsections (a) and (b)(6), (7), and
8    (8), (c) and (d) of Section 201 of this Act into a fund in
9    the State treasury known as the Income Tax Refund Fund.
10    Beginning with State fiscal year 1990 and for each fiscal
11    year thereafter, the percentage deposited into the Income
12    Tax Refund Fund during a fiscal year shall be the Annual
13    Percentage. For fiscal year 2011, the Annual Percentage
14    shall be 17.5%. For fiscal year 2012, the Annual Percentage
15    shall be 17.5%. For fiscal year 2013, the Annual Percentage
16    shall be 14%. For fiscal year 2014, the Annual Percentage
17    shall be 13.4%. For fiscal year 2015, the Annual Percentage
18    shall be 14%. For fiscal year 2018, the Annual Percentage
19    shall be 17.5%. For fiscal year 2019, the Annual Percentage
20    shall be 15.5%. For fiscal year 2020, the Annual Percentage
21    shall be 14.25%. For all other fiscal years, the Annual
22    Percentage shall be calculated as a fraction, the numerator
23    of which shall be the amount of refunds approved for
24    payment by the Department during the preceding fiscal year
25    as a result of overpayment of tax liability under
26    subsections (a) and (b)(6), (7), and (8), (c) and (d) of

 

 

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

 

 

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

 

 

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1    Refund Fund during the fiscal 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 Tax Refund Fund
6    to the General Revenue Fund any surplus remaining in the
7    Income Tax Refund Fund as of the end of such fiscal year;
8    excluding for fiscal years 2000, 2001, and 2002 amounts
9    attributable to transfers under item (3) of subsection (c)
10    less refunds resulting from the earned income tax credit.
11        (5) This Act shall constitute an irrevocable and
12    continuing appropriation from the Income Tax Refund Fund
13    for the purpose of paying refunds upon the order of the
14    Director in accordance with the provisions of this Section.
15    (e) Deposits into the Education Assistance Fund and the
16Income Tax Surcharge Local Government Distributive Fund. On
17July 1, 1991, and thereafter, of the amounts collected pursuant
18to subsections (a) and (b) of Section 201 of this Act, minus
19deposits into the Income Tax Refund Fund, the Department shall
20deposit 7.3% into the Education Assistance Fund in the State
21Treasury. Beginning July 1, 1991, and continuing through
22January 31, 1993, of the amounts collected pursuant to
23subsections (a) and (b) of Section 201 of the Illinois Income
24Tax Act, minus deposits into the Income Tax Refund Fund, the
25Department shall deposit 3.0% into the Income Tax Surcharge
26Local Government Distributive Fund in the State Treasury.

 

 

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1Beginning February 1, 1993 and continuing through June 30,
21993, of the amounts collected pursuant to subsections (a) and
3(b) of Section 201 of the Illinois Income Tax Act, minus
4deposits into the Income Tax Refund Fund, the Department shall
5deposit 4.4% into the Income Tax Surcharge Local Government
6Distributive Fund in the State Treasury. Beginning July 1,
71993, and continuing through June 30, 1994, of the amounts
8collected under subsections (a) and (b) of Section 201 of this
9Act, minus deposits into the Income Tax Refund Fund, the
10Department shall deposit 1.475% into the Income Tax Surcharge
11Local Government Distributive Fund in the State Treasury.
12    (f) Deposits into the Fund for the Advancement of
13Education. Beginning February 1, 2015, the Department shall
14deposit the following portions of the revenue realized from the
15tax imposed upon individuals, trusts, and estates by
16subsections (a) and (b) of Section 201 of this Act, minus
17deposits into the Income Tax Refund Fund, into the Fund for the
18Advancement of Education:
19        (1) beginning February 1, 2015, and prior to February
20    1, 2025, 1/30; and
21        (2) beginning February 1, 2025, 1/26.
22    If the rate of tax imposed by subsection (a) and (b) of
23Section 201 is reduced pursuant to Section 201.5 of this Act,
24the Department shall not make the deposits required by this
25subsection (f) on or after the effective date of the reduction.
26    (g) Deposits into the Commitment to Human Services Fund.

 

 

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1Beginning February 1, 2015, the Department shall deposit the
2following portions of the revenue realized from the tax imposed
3upon individuals, trusts, and estates by subsections (a) and
4(b) of Section 201 of this Act, minus deposits into the Income
5Tax Refund Fund, into the Commitment to Human Services Fund:
6        (1) beginning February 1, 2015, and prior to February
7    1, 2025, 1/30; and
8        (2) beginning February 1, 2025, 1/26.
9    If the rate of tax imposed by subsection (a) and (b) of
10Section 201 is reduced pursuant to Section 201.5 of this Act,
11the Department shall not make the deposits required by this
12subsection (g) on or after the effective date of the reduction.
13    (h) Deposits into the Tax Compliance and Administration
14Fund. Beginning on the first day of the first calendar month to
15occur on or after August 26, 2014 (the effective date of Public
16Act 98-1098), each month the Department shall pay into the Tax
17Compliance and Administration Fund, to be used, subject to
18appropriation, to fund additional auditors and compliance
19personnel at the Department, an amount equal to 1/12 of 5% of
20the cash receipts collected during the preceding fiscal year by
21the Audit Bureau of the Department from the tax imposed by
22subsections (a), (b), (c), and (d) of Section 201 of this Act,
23net of deposits into the Income Tax Refund Fund made from those
24cash receipts.
25(Source: P.A. 100-22, eff. 7-6-17; 100-23, eff. 7-6-17;
26100-587, eff. 6-4-18; 100-621, eff. 7-20-18; 100-863, eff.

 

 

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18-14-18; 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81,
2eff. 7-12-19.)
 
3    (Text of Section after amendment by P.A. 101-8)
4    Sec. 901. Collection authority.
5    (a) In general. The Department shall collect the taxes
6imposed by this Act. The Department shall collect certified
7past due child support amounts under Section 2505-650 of the
8Department of Revenue Law of the Civil Administrative Code of
9Illinois. Except as provided in subsections (b), (c), (e), (f),
10(g), and (h) of this Section, money collected pursuant to
11subsections (a) and (b) of Section 201 of this Act shall be
12paid into the General Revenue Fund in the State treasury; money
13collected pursuant to subsections (c) and (d) of Section 201 of
14this Act shall be paid into the Personal Property Tax
15Replacement Fund, a special fund in the State Treasury; and
16money collected under Section 2505-650 of the Department of
17Revenue Law of the Civil Administrative Code of Illinois shall
18be paid into the Child Support Enforcement Trust Fund, a
19special fund outside the State Treasury, or to the State
20Disbursement Unit established under Section 10-26 of the
21Illinois Public Aid Code, as directed by the Department of
22Healthcare and Family Services.
23    (b) Local Government Distributive Fund. Beginning August
241, 2017 and continuing through January 31, 2021, the Treasurer
25shall transfer each month from the General Revenue Fund to the

 

 

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1Local Government Distributive Fund an amount equal to the sum
2of (i) 6.06% (10% of the ratio of the 3% individual income tax
3rate prior to 2011 to the 4.95% individual income tax rate
4after July 1, 2017) of the net revenue realized from the tax
5imposed by subsections (a) and (b) of Section 201 of this Act
6upon individuals, trusts, and estates during the preceding
7month and (ii) 6.85% (10% of the ratio of the 4.8% corporate
8income tax rate prior to 2011 to the 7% corporate income tax
9rate after July 1, 2017) of the net revenue realized from the
10tax imposed by subsections (a) and (b) of Section 201 of this
11Act upon corporations during the preceding month. Beginning
12February 1, 2021 and continuing through January 31, 2022, the
13Treasurer shall transfer each month from the General Revenue
14Fund to the Local Government Distributive Fund an amount equal
15to the sum of (i) 8.5% of the net revenue realized from the tax
16imposed by subsections (a) and (b) of Section 201 of this Act
17upon individuals, trusts, and estates during the preceding
18month and (ii) 9.355% of the net revenue realized from the tax
19imposed by subsections (a) and (b) of Section 201 of this Act
20upon corporations during the preceding month. Beginning
21February 1, 2022 and continuing through January 31, 2023, the
22Treasurer shall transfer each month from the General Revenue
23Fund to the Local Government Distributive Fund an amount equal
24to the sum of (i) 9% of the net revenue realized from the tax
25imposed by subsections (a) and (b) of Section 201 of this Act
26upon individuals, trusts, and estates during the preceding

 

 

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1month and (ii) 9.57% of the net revenue realized from the tax
2imposed by subsections (a) and (b) of Section 201 of this Act
3upon corporations during the preceding month. Beginning
4February 1, 2023 and continuing through January 31, 2024, the
5Treasurer shall transfer each month from the General Revenue
6Fund to the Local Government Distributive Fund an amount equal
7to the sum of (i) 9.5% of the net revenue realized from the tax
8imposed by subsections (a) and (b) of Section 201 of this Act
9upon individuals, trusts, and estates during the preceding
10month and (ii) 9.785% of the net revenue realized from the tax
11imposed by subsections (a) and (b) of Section 201 of this Act
12upon corporations during the preceding month. Beginning on
13February 1, 2024, the Treasurer shall transfer each month from
14the General Revenue Fund to the Local Government Distributive
15Fund an amount equal to 10% of the net revenue realized from
16the tax imposed on individuals, trusts, estates, and
17corporations by subsections (a) and (b) of Section 201 of the
18Illinois Income Tax Act during the preceding month. Beginning
19February 1, 2021, the Treasurer shall transfer each month from
20the General Revenue Fund to the Local Government Distributive
21Fund an amount equal to the sum of (i) 5.32% of the net revenue
22realized from the tax imposed by subsections (a) and (b) of
23Section 201 of this Act upon individuals, trusts, and estates
24during the preceding month and (ii) 6.16% of the net revenue
25realized from the tax imposed by subsections (a) and (b) of
26Section 201 of this Act upon corporations during the preceding

 

 

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1month. Net revenue realized for a month shall be defined as the
2revenue from the tax imposed by subsections (a) and (b) of
3Section 201 of this Act which is deposited in the General
4Revenue Fund, the Education Assistance Fund, the Income Tax
5Surcharge Local Government Distributive Fund, the Fund for the
6Advancement of Education, and the Commitment to Human Services
7Fund during the month minus the amount paid out of the General
8Revenue Fund in State warrants during that same month as
9refunds to taxpayers for overpayment of liability under the tax
10imposed by subsections (a) and (b) of Section 201 of this Act.
11    Notwithstanding any provision of law to the contrary,
12beginning on July 6, 2017 (the effective date of Public Act
13100-23), those amounts required under this subsection (b) to be
14transferred by the Treasurer into the Local Government
15Distributive Fund from the General Revenue Fund shall be
16directly deposited into the Local Government Distributive Fund
17as the revenue is realized from the tax imposed by subsections
18(a) and (b) of Section 201 of this Act.
19    For State fiscal year 2020 only, notwithstanding any
20provision of law to the contrary, the total amount of revenue
21and deposits under this Section attributable to revenues
22realized during State fiscal year 2020 shall be reduced by 5%.
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. Beginning
3    with State fiscal year 1990 and for each fiscal year
4    thereafter, the percentage deposited into the Income Tax
5    Refund Fund during a fiscal year shall be the Annual
6    Percentage. For fiscal year 2011, the Annual Percentage
7    shall be 8.75%. For fiscal year 2012, the Annual Percentage
8    shall be 8.75%. For fiscal year 2013, the Annual Percentage
9    shall be 9.75%. For fiscal year 2014, the Annual Percentage
10    shall be 9.5%. For fiscal year 2015, the Annual Percentage
11    shall be 10%. For fiscal year 2018, the Annual Percentage
12    shall be 9.8%. For fiscal year 2019, the Annual Percentage
13    shall be 9.7%. For fiscal year 2020, the Annual Percentage
14    shall be 9.5%. For all other fiscal years, the Annual
15    Percentage shall be calculated as a fraction, the numerator
16    of which shall be the amount of refunds approved for
17    payment by the Department during the preceding fiscal year
18    as a result of overpayment of tax liability under
19    subsections (a) and (b)(1), (2), and (3) of Section 201 of
20    this Act plus the amount of such refunds remaining approved
21    but unpaid at the end of the preceding fiscal year, minus
22    the amounts transferred into the Income Tax Refund Fund
23    from the Tobacco Settlement Recovery Fund, and the
24    denominator of which shall be the amounts which will be
25    collected pursuant to subsections (a) and (b)(1), (2), and
26    (3) of Section 201 of this Act during the preceding fiscal

 

 

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1    year; except that in State fiscal year 2002, the Annual
2    Percentage shall in no event exceed 7.6%. The Director of
3    Revenue shall certify the Annual Percentage to the
4    Comptroller on the last business day of the fiscal year
5    immediately preceding the fiscal year for which it is to be
6    effective.
7        (2) Beginning on January 1, 1989 and thereafter, the
8    Department shall deposit a percentage of the amounts
9    collected pursuant to subsections (a) and (b)(6), (7), and
10    (8), (c) and (d) of Section 201 of this Act into a fund in
11    the State treasury known as the Income Tax Refund Fund.
12    Beginning with State fiscal year 1990 and for each fiscal
13    year thereafter, the percentage deposited into the Income
14    Tax Refund Fund during a fiscal year shall be the Annual
15    Percentage. For fiscal year 2011, the Annual Percentage
16    shall be 17.5%. For fiscal year 2012, the Annual Percentage
17    shall be 17.5%. For fiscal year 2013, the Annual Percentage
18    shall be 14%. For fiscal year 2014, the Annual Percentage
19    shall be 13.4%. For fiscal year 2015, the Annual Percentage
20    shall be 14%. For fiscal year 2018, the Annual Percentage
21    shall be 17.5%. For fiscal year 2019, the Annual Percentage
22    shall be 15.5%. For fiscal year 2020, the Annual Percentage
23    shall be 14.25%. For all other fiscal years, the Annual
24    Percentage shall be calculated as a fraction, the numerator
25    of which shall be the amount of refunds approved for
26    payment by the Department during the preceding fiscal year

 

 

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

 

 

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

 

 

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

 

 

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1Department shall deposit 3.0% into the Income Tax Surcharge
2Local Government Distributive Fund in the State Treasury.
3Beginning February 1, 1993 and continuing through June 30,
41993, of the amounts collected pursuant to subsections (a) and
5(b) of Section 201 of the Illinois Income Tax Act, minus
6deposits into the Income Tax Refund Fund, the Department shall
7deposit 4.4% into the Income Tax Surcharge Local Government
8Distributive Fund in the State Treasury. Beginning July 1,
91993, and continuing through June 30, 1994, of the amounts
10collected under subsections (a) and (b) of Section 201 of this
11Act, minus deposits into the Income Tax Refund Fund, the
12Department shall deposit 1.475% into the Income Tax Surcharge
13Local Government Distributive Fund in the State Treasury.
14    (f) Deposits into the Fund for the Advancement of
15Education. Beginning February 1, 2015, the Department shall
16deposit the following portions of the revenue realized from the
17tax imposed upon individuals, trusts, and estates by
18subsections (a) and (b) of Section 201 of this Act, minus
19deposits into the Income Tax Refund Fund, into the Fund for the
20Advancement of Education:
21        (1) beginning February 1, 2015, and prior to February
22    1, 2025, 1/30; and
23        (2) beginning February 1, 2025, 1/26.
24    If the rate of tax imposed by subsection (a) and (b) of
25Section 201 is reduced pursuant to Section 201.5 of this Act,
26the Department shall not make the deposits required by this

 

 

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1subsection (f) on or after the effective date of the reduction.
2    (g) Deposits into the Commitment to Human Services Fund.
3Beginning February 1, 2015, the Department shall deposit the
4following portions of the revenue realized from the tax imposed
5upon individuals, trusts, and estates by subsections (a) and
6(b) of Section 201 of this Act, minus deposits into the Income
7Tax Refund Fund, into the Commitment to Human Services Fund:
8        (1) beginning February 1, 2015, and prior to February
9    1, 2025, 1/30; and
10        (2) beginning February 1, 2025, 1/26.
11    If the rate of tax imposed by subsection (a) and (b) of
12Section 201 is reduced pursuant to Section 201.5 of this Act,
13the Department shall not make the deposits required by this
14subsection (g) on or after the effective date of the reduction.
15    (h) Deposits into the Tax Compliance and Administration
16Fund. Beginning on the first day of the first calendar month to
17occur on or after August 26, 2014 (the effective date of Public
18Act 98-1098), each month the Department shall pay into the Tax
19Compliance and Administration Fund, to be used, subject to
20appropriation, to fund additional auditors and compliance
21personnel at the Department, an amount equal to 1/12 of 5% of
22the cash receipts collected during the preceding fiscal year by
23the Audit Bureau of the Department from the tax imposed by
24subsections (a), (b), (c), and (d) of Section 201 of this Act,
25net of deposits into the Income Tax Refund Fund made from those
26cash receipts.

 

 

SB3785- 23 -LRB101 16530 HLH 65914 b

1(Source: P.A. 100-22, eff. 7-6-17; 100-23, eff. 7-6-17;
2100-587, eff. 6-4-18; 100-621, eff. 7-20-18; 100-863, eff.
38-14-18; 100-1171, eff. 1-4-19; 101-8, see Section 99 for
4effective date; 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
5revised 10-1-19.)
 
6    Section 95. No acceleration or delay. Where this Act makes
7changes in a statute that is represented in this Act by text
8that is not yet or no longer in effect (for example, a Section
9represented by multiple versions), the use of that text does
10not accelerate or delay the taking effect of (i) the changes
11made by this Act or (ii) provisions derived from any other
12Public Act.
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.