103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4455

 

Introduced 1/16/2024, by Rep. Anthony DeLuca

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/901

    Amends the Illinois Income Tax Act. Increases the amount transferred from the General Revenue Fund to the Local Government Distributive Fund. Effective immediately.


LRB103 32768 HLH 62571 b

 

 

A BILL FOR

 

HB4455LRB103 32768 HLH 62571 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    Sec. 901. Collection authority.
8    (a) In general. The Department shall collect the taxes
9imposed by this Act. The Department shall collect certified
10past due child support amounts under Section 2505-650 of the
11Department of Revenue Law of the Civil Administrative Code of
12Illinois. Except as provided in subsections (b), (c), (e),
13(f), (g), and (h) of this Section, money collected pursuant to
14subsections (a) and (b) of Section 201 of this Act shall be
15paid into the General Revenue Fund in the State treasury;
16money collected pursuant to subsections (c) and (d) of Section
17201 of this Act shall be paid into the Personal Property Tax
18Replacement Fund, a special fund in the State Treasury; and
19money collected under Section 2505-650 of the Department of
20Revenue Law of the Civil Administrative Code of Illinois shall
21be paid into the Child Support Enforcement Trust Fund, a
22special fund outside the State Treasury, or to the State
23Disbursement Unit established under Section 10-26 of the

 

 

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1Illinois Public Aid Code, as directed by the Department of
2Healthcare and Family Services.
3    (b) Local Government Distributive Fund.
4        (1) Beginning August 1, 2017 and continuing through
5    July 31, 2022, the Treasurer shall transfer each month
6    from the General Revenue Fund to the Local Government
7    Distributive Fund an amount equal to the sum of: (i) 6.06%
8    (10% of the ratio of the 3% individual income tax rate
9    prior to 2011 to the 4.95% individual income tax rate
10    after July 1, 2017) of the net revenue realized from the
11    tax imposed by subsections (a) and (b) of Section 201 of
12    this Act upon individuals, trusts, and estates during the
13    preceding month; (ii) 6.85% (10% of the ratio of the 4.8%
14    corporate income tax rate prior to 2011 to the 7%
15    corporate income tax rate after July 1, 2017) of the net
16    revenue realized from the tax imposed by subsections (a)
17    and (b) of Section 201 of this Act upon corporations
18    during the preceding month; and (iii) beginning February
19    1, 2022, 6.06% of the net revenue realized from the tax
20    imposed by subsection (p) of Section 201 of this Act upon
21    electing pass-through entities.
22        (2) Beginning August 1, 2022 and continuing through
23    July 31, 2023, the Treasurer shall transfer each month
24    from the General Revenue Fund to the Local Government
25    Distributive Fund an amount equal to the sum of: (i) 6.16%
26    of the net revenue realized from the tax imposed by

 

 

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1    subsections (a) and (b) of Section 201 of this Act upon
2    individuals, trusts, and estates during the preceding
3    month; (ii) 6.85% of the net revenue realized from the tax
4    imposed by subsections (a) and (b) of Section 201 of this
5    Act upon corporations during the preceding month; and
6    (iii) 6.16% of the net revenue realized from the tax
7    imposed by subsection (p) of Section 201 of this Act upon
8    electing pass-through entities.
9        (3) Beginning August 1, 2023 and continuing through
10    July 31, 2024, the Treasurer shall transfer each month
11    from the General Revenue Fund to the Local Government
12    Distributive Fund an amount equal to the sum of: (i) 6.47%
13    of the net revenue realized from the tax imposed by
14    subsections (a) and (b) of Section 201 of this Act upon
15    individuals, trusts, and estates during the preceding
16    month; (ii) 6.85% of the net revenue realized from the tax
17    imposed by subsections (a) and (b) of Section 201 of this
18    Act upon corporations during the preceding month; and
19    (iii) 6.47% of the net revenue realized from the tax
20    imposed by subsection (p) of Section 201 of this Act upon
21    electing pass-through entities.
22        (4) Beginning August 1, 2024 and continuing through
23    July 31, 2025, the Treasurer shall transfer each month
24    from the General Revenue Fund to the Local Government
25    Distributive Fund an amount equal to the sum of: (i) 7% of
26    the net revenue realized from the tax imposed by

 

 

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1    subsections (a) and (b) of Section 201 of this Act upon
2    individuals, trusts, and estates during the preceding
3    month; (ii) 7% of the net revenue realized from the tax
4    imposed by subsections (a) and (b) of Section 201 of this
5    Act upon corporations during the preceding month; and
6    (iii) 7% of the net revenue realized from the tax imposed
7    by subsection (p) of Section 201 of this Act upon electing
8    pass-through entities.
9        (5) Beginning August 1, 2025 and continuing through
10    July 31, 2026, the Treasurer shall transfer each month
11    from the General Revenue Fund to the Local Government
12    Distributive Fund an amount equal to the sum of: (i) 7.5%
13    of the net revenue realized from the tax imposed by
14    subsections (a) and (b) of Section 201 of this Act upon
15    individuals, trusts, and estates during the preceding
16    month; (ii) 7.5% of the net revenue realized from the tax
17    imposed by subsections (a) and (b) of Section 201 of this
18    Act upon corporations during the preceding month; and
19    (iii) 7.5% of the net revenue realized from the tax
20    imposed by subsection (p) of Section 201 of this Act upon
21    electing pass-through entities.
22        (6) Beginning August 1, 2026 and continuing through
23    July 31, 2027, the Treasurer shall transfer each month
24    from the General Revenue Fund to the Local Government
25    Distributive Fund an amount equal to the sum of: (i) 8% of
26    the net revenue realized from the tax imposed by

 

 

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1    subsections (a) and (b) of Section 201 of this Act upon
2    individuals, trusts, and estates during the preceding
3    month; (ii) 8% of the net revenue realized from the tax
4    imposed by subsections (a) and (b) of Section 201 of this
5    Act upon corporations during the preceding month; and
6    (iii) 8% of the net revenue realized from the tax imposed
7    by subsection (p) of Section 201 of this Act upon electing
8    pass-through entities.
9        (7) Beginning August 1, 2027 and continuing through
10    July 31, 2028, the Treasurer shall transfer each month
11    from the General Revenue Fund to the Local Government
12    Distributive Fund an amount equal to the sum of: (i) 8.5%
13    of the net revenue realized from the tax imposed by
14    subsections (a) and (b) of Section 201 of this Act upon
15    individuals, trusts, and estates during the preceding
16    month; (ii) 8.5% of the net revenue realized from the tax
17    imposed by subsections (a) and (b) of Section 201 of this
18    Act upon corporations during the preceding month; and
19    (iii) 8.5% of the net revenue realized from the tax
20    imposed by subsection (p) of Section 201 of this Act upon
21    electing pass-through entities.
22        (8) Beginning August 1, 2028 and continuing through
23    July 31, 2029, the Treasurer shall transfer each month
24    from the General Revenue Fund to the Local Government
25    Distributive Fund an amount equal to the sum of: (i) 9% of
26    the net revenue realized from the tax imposed by

 

 

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1    subsections (a) and (b) of Section 201 of this Act upon
2    individuals, trusts, and estates during the preceding
3    month; (ii) 9% of the net revenue realized from the tax
4    imposed by subsections (a) and (b) of Section 201 of this
5    Act upon corporations during the preceding month; and
6    (iii) 9% of the net revenue realized from the tax imposed
7    by subsection (p) of Section 201 of this Act upon electing
8    pass-through entities.
9        (9) Beginning August 1, 2029 and continuing through
10    July 31, 2030, the Treasurer shall transfer each month
11    from the General Revenue Fund to the Local Government
12    Distributive Fund an amount equal to the sum of: (i) 9.5%
13    of the net revenue realized from the tax imposed by
14    subsections (a) and (b) of Section 201 of this Act upon
15    individuals, trusts, and estates during the preceding
16    month; (ii) 9.5% of the net revenue realized from the tax
17    imposed by subsections (a) and (b) of Section 201 of this
18    Act upon corporations during the preceding month; and
19    (iii) 9.5% of the net revenue realized from the tax
20    imposed by subsection (p) of Section 201 of this Act upon
21    electing pass-through entities.
22        (10) On and after August 1, 2030, the Treasurer shall
23    transfer each month from the General Revenue Fund to the
24    Local Government Distributive Fund an amount equal to the
25    sum of: (i) 10% of the net revenue realized from the tax
26    imposed by subsections (a) and (b) of Section 201 of this

 

 

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1    Act upon individuals, trusts, and estates during the
2    preceding month; (ii) 10% of the net revenue realized from
3    the tax imposed by subsections (a) and (b) of Section 201
4    of this Act upon corporations during the preceding month;
5    and (iii) 10% of the net revenue realized from the tax
6    imposed by subsection (p) of Section 201 of this Act upon
7    electing pass-through entities.
8    Net revenue realized for a month shall be defined as the
9revenue from the tax imposed by subsections (a) and (b) of
10Section 201 of this Act which is deposited into the General
11Revenue Fund, the Education Assistance Fund, the Income Tax
12Surcharge Local Government Distributive Fund, the Fund for the
13Advancement of Education, and the Commitment to Human Services
14Fund during 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
17tax imposed by subsections (a) and (b) of Section 201 of this
18Act.
19    Notwithstanding any provision of law to the contrary,
20beginning on July 6, 2017 (the effective date of Public Act
21100-23), those amounts required under this subsection (b) to
22be transferred by the Treasurer into the Local Government
23Distributive Fund from the General Revenue Fund shall be
24directly deposited into the Local Government Distributive Fund
25as the revenue is realized from the tax imposed by subsections
26(a) and (b) of Section 201 of this Act.

 

 

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1    (c) Deposits Into Income Tax Refund Fund.
2        (1) Beginning on January 1, 1989 and thereafter, the
3    Department shall deposit a percentage of the amounts
4    collected pursuant to subsections (a) and (b)(1), (2), and
5    (3) of Section 201 of this Act into a fund in the State
6    treasury known as the Income Tax Refund Fund. Beginning
7    with State fiscal year 1990 and for each fiscal year
8    thereafter, the percentage deposited into the Income Tax
9    Refund Fund during a fiscal year shall be the Annual
10    Percentage. For fiscal year 2011, the Annual Percentage
11    shall be 8.75%. For fiscal year 2012, the Annual
12    Percentage shall be 8.75%. For fiscal year 2013, the
13    Annual Percentage shall be 9.75%. For fiscal year 2014,
14    the Annual Percentage shall be 9.5%. For fiscal year 2015,
15    the Annual Percentage shall be 10%. For fiscal year 2018,
16    the Annual Percentage shall be 9.8%. For fiscal year 2019,
17    the Annual Percentage shall be 9.7%. For fiscal year 2020,
18    the Annual Percentage shall be 9.5%. For fiscal year 2021,
19    the Annual Percentage shall be 9%. For fiscal year 2022,
20    the Annual Percentage shall be 9.25%. For fiscal year
21    2023, the Annual Percentage shall be 9.25%. For fiscal
22    year 2024, the Annual Percentage shall be 9.15%. For all
23    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
4    the 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
8    pursuant to subsections (a) and (b)(1), (2), and (3) of
9    Section 201 of this Act during the preceding fiscal year;
10    except that in State fiscal year 2002, the Annual
11    Percentage shall in no event exceed 7.6%. The Director of
12    Revenue shall certify the Annual Percentage to the
13    Comptroller on the last business day of the fiscal year
14    immediately preceding the fiscal year for which it is to
15    be effective.
16        (2) Beginning on January 1, 1989 and thereafter, the
17    Department shall deposit a percentage of the amounts
18    collected pursuant to subsections (a) and (b)(6), (7), and
19    (8), (c) and (d) of Section 201 of this Act into a fund in
20    the State treasury known as the Income Tax Refund Fund.
21    Beginning with State fiscal year 1990 and for each fiscal
22    year thereafter, the percentage deposited into the Income
23    Tax Refund Fund during a fiscal year shall be the Annual
24    Percentage. For fiscal year 2011, the Annual Percentage
25    shall be 17.5%. For fiscal year 2012, the Annual
26    Percentage shall be 17.5%. For fiscal year 2013, the

 

 

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1    Annual Percentage shall be 14%. For fiscal year 2014, the
2    Annual Percentage shall be 13.4%. For fiscal year 2015,
3    the Annual Percentage shall be 14%. For fiscal year 2018,
4    the Annual Percentage shall be 17.5%. For fiscal year
5    2019, the Annual Percentage shall be 15.5%. For fiscal
6    year 2020, the Annual Percentage shall be 14.25%. For
7    fiscal year 2021, the Annual Percentage shall be 14%. For
8    fiscal year 2022, the Annual Percentage shall be 15%. For
9    fiscal year 2023, the Annual Percentage shall be 14.5%.
10    For fiscal year 2024, the Annual Percentage shall be 14%.
11    For all other fiscal years, the Annual Percentage shall be
12    calculated as a fraction, the numerator of which shall be
13    the amount of refunds approved for payment by the
14    Department during the preceding fiscal year as a result of
15    overpayment of tax liability under subsections (a) and
16    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
17    Act plus the amount of such refunds remaining approved but
18    unpaid at the end of the preceding fiscal year, and the
19    denominator of which shall be the amounts which will be
20    collected pursuant to subsections (a) and (b)(6), (7), and
21    (8), (c) and (d) of Section 201 of this Act during the
22    preceding fiscal year; except that in State fiscal year
23    2002, the Annual Percentage shall in no event exceed 23%.
24    The Director of Revenue shall certify the Annual
25    Percentage to the Comptroller on the last business day of
26    the fiscal year immediately preceding the fiscal year for

 

 

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1    which it is to be effective.
2        (3) The Comptroller shall order transferred and the
3    Treasurer shall transfer from the Tobacco Settlement
4    Recovery Fund to the Income Tax Refund Fund (i)
5    $35,000,000 in January, 2001, (ii) $35,000,000 in January,
6    2002, and (iii) $35,000,000 in January, 2003.
7    (d) Expenditures from Income Tax Refund Fund.
8        (1) Beginning January 1, 1989, money in the Income Tax
9    Refund Fund shall be expended exclusively for the purpose
10    of paying refunds resulting from overpayment of tax
11    liability under Section 201 of this Act and for making
12    transfers pursuant to this subsection (d), except that in
13    State fiscal years 2022 and 2023, moneys in the Income Tax
14    Refund Fund shall also be used to pay one-time rebate
15    payments as provided under Sections 208.5 and 212.1.
16        (2) The Director shall order payment of refunds
17    resulting from overpayment of tax liability under Section
18    201 of this Act from the Income Tax Refund Fund only to the
19    extent that amounts collected pursuant to Section 201 of
20    this Act and transfers pursuant to this subsection (d) and
21    item (3) of subsection (c) have been deposited and
22    retained in the Fund.
23        (3) As soon as possible after the end of each fiscal
24    year, the Director shall order transferred and the State
25    Treasurer and State Comptroller shall transfer from the
26    Income Tax Refund Fund to the Personal Property Tax

 

 

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

 

 

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1    excluding for fiscal years 2000, 2001, and 2002 amounts
2    attributable to transfers under item (3) of subsection (c)
3    less refunds resulting from the earned income tax credit,
4    and excluding for fiscal year 2022 amounts attributable to
5    transfers from the General Revenue Fund authorized by
6    Public Act 102-700.
7        (5) This Act shall constitute an irrevocable and
8    continuing appropriation from the Income Tax Refund Fund
9    for the purposes of (i) paying refunds upon the order of
10    the Director in accordance with the provisions of this
11    Section and (ii) paying one-time rebate payments under
12    Sections 208.5 and 212.1.
13    (e) Deposits into the Education Assistance Fund and the
14Income Tax Surcharge Local Government Distributive Fund. On
15July 1, 1991, and thereafter, of the amounts collected
16pursuant to subsections (a) and (b) of Section 201 of this Act,
17minus deposits into the Income Tax Refund Fund, the Department
18shall deposit 7.3% into the Education Assistance Fund in the
19State Treasury. Beginning July 1, 1991, and continuing through
20January 31, 1993, of the amounts collected pursuant to
21subsections (a) and (b) of Section 201 of the Illinois Income
22Tax Act, minus deposits into the Income Tax Refund Fund, the
23Department shall deposit 3.0% into the Income Tax Surcharge
24Local Government Distributive Fund in the State Treasury.
25Beginning February 1, 1993 and continuing through June 30,
261993, of the amounts collected pursuant to subsections (a) and

 

 

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1(b) of Section 201 of the Illinois Income Tax Act, minus
2deposits into the Income Tax Refund Fund, the Department shall
3deposit 4.4% into the Income Tax Surcharge Local Government
4Distributive Fund in the State Treasury. Beginning July 1,
51993, and continuing through June 30, 1994, of the amounts
6collected under subsections (a) and (b) of Section 201 of this
7Act, minus deposits into the Income Tax Refund Fund, the
8Department shall deposit 1.475% into the Income Tax Surcharge
9Local Government Distributive Fund in the State Treasury.
10    (f) Deposits into the Fund for the Advancement of
11Education. Beginning February 1, 2015, the Department shall
12deposit the following portions of the revenue realized from
13the tax imposed upon individuals, trusts, and estates by
14subsections (a) and (b) of Section 201 of this Act, minus
15deposits into the Income Tax Refund Fund, into the Fund for the
16Advancement of Education:
17        (1) beginning February 1, 2015, and prior to February
18    1, 2025, 1/30; and
19        (2) beginning February 1, 2025, 1/26.
20    If the rate of tax imposed by subsection (a) and (b) of
21Section 201 is reduced pursuant to Section 201.5 of this Act,
22the Department shall not make the deposits required by this
23subsection (f) on or after the effective date of the
24reduction.
25    (g) Deposits into the Commitment to Human Services Fund.
26Beginning February 1, 2015, the Department shall deposit the

 

 

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1following portions of the revenue realized from the tax
2imposed upon individuals, trusts, and estates by subsections
3(a) and (b) of Section 201 of this Act, minus deposits into the
4Income Tax Refund Fund, into the Commitment to Human Services
5Fund:
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
13reduction.
14    (h) Deposits into the Tax Compliance and Administration
15Fund. Beginning on the first day of the first calendar month to
16occur on or after August 26, 2014 (the effective date of Public
17Act 98-1098), each month the Department shall pay into the Tax
18Compliance and Administration Fund, to be used, subject to
19appropriation, to fund additional auditors and compliance
20personnel at the Department, an amount equal to 1/12 of 5% of
21the cash receipts collected during the preceding fiscal year
22by the Audit Bureau of the Department from the tax imposed by
23subsections (a), (b), (c), and (d) of Section 201 of this Act,
24net of deposits into the Income Tax Refund Fund made from those
25cash receipts.
26(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;

 

 

HB4455- 16 -LRB103 32768 HLH 62571 b

1102-658, eff. 8-27-21; 102-699, eff. 4-19-22; 102-700, eff.
24-19-22; 102-813, eff. 5-13-22; 103-8, eff. 6-7-23; 103-154,
3eff. 6-30-23.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.