103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB0180

 

Introduced 1/31/2023, by Sen. Laura M. Murphy

 

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 05489 HLH 50508 b

 

 

A BILL FOR

 

SB0180LRB103 05489 HLH 50508 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    June 30, 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 July 1, 2023 and continuing through June
10    30, 2024, the Treasurer shall transfer each month from the
11    General Revenue Fund to the Local Government Distributive
12    Fund an amount equal to the sum of: (i) 8.5% of the net
13    revenue realized from the tax imposed by subsections (a)
14    and (b) of Section 201 of this Act upon individuals,
15    trusts, and estates during the preceding month; (ii)
16    9.355% of the net revenue realized from the tax imposed by
17    subsections (a) and (b) of Section 201 of this Act upon
18    corporations during the preceding month; and (iii) 8.5% of
19    the net revenue realized from the tax imposed by
20    subsection (p) of Section 201 of this Act upon electing
21    pass-through entities.
22        (4) Beginning July 1, 2024 and continuing through June
23    30, 2025, the Treasurer shall transfer each month from the
24    General Revenue Fund to the Local Government Distributive
25    Fund an amount equal to the sum of: (i) 9% of the net
26    revenue realized from the tax imposed by subsections (a)

 

 

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1    and (b) of Section 201 of this Act upon individuals,
2    trusts, and estates during the preceding month; (ii) 9.57%
3    of the net revenue realized from the tax imposed by
4    subsections (a) and (b) of Section 201 of this Act upon
5    corporations during the preceding month; and (iii) 9% of
6    the net revenue realized from the tax imposed by
7    subsection (p) of Section 201 of this Act upon electing
8    pass-through entities.
9        (5) Beginning July 1, 2025 and continuing through June
10    30, 2026, the Treasurer shall transfer each month from the
11    General Revenue Fund to the Local Government Distributive
12    Fund an amount equal to the sum of: (i) 9.5% of the net
13    revenue realized from the tax imposed by subsections (a)
14    and (b) of Section 201 of this Act upon individuals,
15    trusts, and estates during the preceding month; (ii)
16    9.785% of the net revenue realized from the tax imposed by
17    subsections (a) and (b) of Section 201 of this Act upon
18    corporations during the preceding month; and (iii) 9.5% of
19    the net revenue realized from the tax imposed by
20    subsection (p) of Section 201 of this Act upon electing
21    pass-through entities.
22        (6) Beginning on July 1, 2026, the Treasurer shall
23    transfer each month from the General Revenue Fund to the
24    Local Government Distributive Fund an amount equal to: (i)
25    10% of the net revenue realized from the tax imposed on
26    individuals, trusts, estates, and corporations by

 

 

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1    subsections (a) and (b) of Section 201 of this Act during
2    the preceding month; and (ii) 10% of the net revenue
3    realized from the tax imposed by subsection (p) of Section
4    201 of this Act upon electing pass-through entities.
5    Net revenue realized for a month shall be defined as the
6revenue from the tax imposed by subsections (a) and (b) of
7Section 201 of this Act which is deposited in the General
8Revenue Fund, the Education Assistance Fund, the Income Tax
9Surcharge Local Government Distributive Fund, the Fund for the
10Advancement of Education, and the Commitment to Human Services
11Fund during the month minus the amount paid out of the General
12Revenue Fund in State warrants during that same month as
13refunds to taxpayers for overpayment of liability under the
14tax imposed by subsections (a) and (b) of Section 201 of this
15Act.
16    Notwithstanding any provision of law to the contrary,
17beginning on July 6, 2017 (the effective date of Public Act
18100-23), those amounts required under this subsection (b) to
19be transferred by the Treasurer into the Local Government
20Distributive Fund from the General Revenue Fund shall be
21directly deposited into the Local Government Distributive Fund
22as the revenue is realized from the tax imposed by subsections
23(a) and (b) of Section 201 of this Act.
24    (c) Deposits Into Income Tax Refund Fund.
25        (1) Beginning on January 1, 1989 and thereafter, the
26    Department shall deposit a percentage of the amounts

 

 

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1    collected pursuant to subsections (a) and (b)(1), (2), and
2    (3) of Section 201 of this Act into a fund in the State
3    treasury known as the Income Tax Refund Fund. Beginning
4    with State fiscal year 1990 and for each fiscal year
5    thereafter, the percentage deposited into the Income Tax
6    Refund Fund during a fiscal year shall be the Annual
7    Percentage. For fiscal year 2011, the Annual Percentage
8    shall be 8.75%. For fiscal year 2012, the Annual
9    Percentage shall be 8.75%. For fiscal year 2013, the
10    Annual Percentage shall be 9.75%. For fiscal year 2014,
11    the Annual Percentage shall be 9.5%. For fiscal year 2015,
12    the Annual Percentage shall be 10%. For fiscal year 2018,
13    the Annual Percentage shall be 9.8%. For fiscal year 2019,
14    the Annual Percentage shall be 9.7%. For fiscal year 2020,
15    the Annual Percentage shall be 9.5%. For fiscal year 2021,
16    the Annual Percentage shall be 9%. For fiscal year 2022,
17    the Annual Percentage shall be 9.25%. For fiscal year
18    2023, the Annual Percentage shall be 9.25%. For all other
19    fiscal years, the Annual Percentage shall be calculated as
20    a fraction, the numerator of which shall be the amount of
21    refunds approved for payment by the Department during the
22    preceding fiscal year as a result of overpayment of tax
23    liability under subsections (a) and (b)(1), (2), and (3)
24    of Section 201 of this Act plus the amount of such refunds
25    remaining approved but unpaid at the end of the preceding
26    fiscal year, minus the amounts transferred into the Income

 

 

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

 

 

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1    year 2020, the Annual Percentage shall be 14.25%. For
2    fiscal year 2021, the Annual Percentage shall be 14%. For
3    fiscal year 2022, the Annual Percentage shall be 15%. For
4    fiscal year 2023, the Annual Percentage shall be 14.5%.
5    For all other fiscal years, the Annual Percentage shall be
6    calculated as a fraction, the numerator of which shall be
7    the amount of refunds approved for payment by the
8    Department during the preceding fiscal year as a result of
9    overpayment of tax liability under subsections (a) and
10    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
11    Act plus the amount of such refunds remaining approved but
12    unpaid at the end of the preceding fiscal year, and the
13    denominator of which shall be the amounts which will be
14    collected pursuant to subsections (a) and (b)(6), (7), and
15    (8), (c) and (d) of Section 201 of this Act during the
16    preceding fiscal year; except that in State fiscal year
17    2002, the Annual Percentage shall in no event exceed 23%.
18    The Director of Revenue shall certify the Annual
19    Percentage to the Comptroller on the last business day of
20    the fiscal year immediately preceding the fiscal year for
21    which it is to be effective.
22        (3) The Comptroller shall order transferred and the
23    Treasurer shall transfer from the Tobacco Settlement
24    Recovery Fund to the Income Tax Refund Fund (i)
25    $35,000,000 in January, 2001, (ii) $35,000,000 in January,
26    2002, and (iii) $35,000,000 in January, 2003.

 

 

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

 

 

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1    subsections (c) and (d) of Section 201 of this Act paid
2    from the Income Tax Refund Fund during the fiscal year.
3        (4) As soon as possible after the end of each fiscal
4    year, the Director shall order transferred and the State
5    Treasurer and State Comptroller shall transfer from the
6    Personal Property Tax Replacement Fund to the Income Tax
7    Refund Fund an amount, certified by the Director to the
8    Comptroller, equal to the excess of the amount of refunds
9    resulting from overpayment of tax liability under
10    subsections (c) and (d) of Section 201 of this Act paid
11    from the Income Tax Refund Fund during the fiscal year
12    over the amount collected pursuant to subsections (c) and
13    (d) of Section 201 of this Act deposited into the Income
14    Tax Refund Fund during the fiscal year.
15        (4.5) As soon as possible after the end of fiscal year
16    1999 and of each fiscal year thereafter, the Director
17    shall order transferred and the State Treasurer and State
18    Comptroller shall transfer from the Income Tax Refund Fund
19    to the General Revenue Fund any surplus remaining in the
20    Income Tax Refund Fund as of the end of such fiscal year;
21    excluding for fiscal years 2000, 2001, and 2002 amounts
22    attributable to transfers under item (3) of subsection (c)
23    less refunds resulting from the earned income tax credit,
24    and excluding for fiscal year 2022 amounts attributable to
25    transfers from the General Revenue Fund authorized by
26    Public Act 102-700 this amendatory Act of the 102nd

 

 

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1    General Assembly.
2        (5) This Act shall constitute an irrevocable and
3    continuing appropriation from the Income Tax Refund Fund
4    for the purposes of (i) paying refunds upon the order of
5    the Director in accordance with the provisions of this
6    Section and (ii) paying one-time rebate payments under
7    Sections 208.5 and 212.1.
8    (e) Deposits into the Education Assistance Fund and the
9Income Tax Surcharge Local Government Distributive Fund. On
10July 1, 1991, and thereafter, of the amounts collected
11pursuant to subsections (a) and (b) of Section 201 of this Act,
12minus deposits into the Income Tax Refund Fund, the Department
13shall deposit 7.3% into the Education Assistance Fund in the
14State Treasury. Beginning July 1, 1991, and continuing through
15January 31, 1993, of the amounts collected pursuant to
16subsections (a) and (b) of Section 201 of the Illinois Income
17Tax Act, minus deposits into the Income Tax Refund Fund, the
18Department shall deposit 3.0% into the Income Tax Surcharge
19Local Government Distributive Fund in the State Treasury.
20Beginning February 1, 1993 and continuing through June 30,
211993, of the amounts collected pursuant to subsections (a) and
22(b) of Section 201 of the Illinois Income Tax Act, minus
23deposits into the Income Tax Refund Fund, the Department shall
24deposit 4.4% into the Income Tax Surcharge Local Government
25Distributive Fund in the State Treasury. Beginning July 1,
261993, and continuing through June 30, 1994, of the amounts

 

 

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

 

 

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1        (1) beginning February 1, 2015, and prior to February
2    1, 2025, 1/30; and
3        (2) beginning February 1, 2025, 1/26.
4    If the rate of tax imposed by subsection (a) and (b) of
5Section 201 is reduced pursuant to Section 201.5 of this Act,
6the Department shall not make the deposits required by this
7subsection (g) on or after the effective date of the
8reduction.
9    (h) Deposits into the Tax Compliance and Administration
10Fund. Beginning on the first day of the first calendar month to
11occur on or after August 26, 2014 (the effective date of Public
12Act 98-1098), each month the Department shall pay into the Tax
13Compliance and Administration Fund, to be used, subject to
14appropriation, to fund additional auditors and compliance
15personnel at the Department, an amount equal to 1/12 of 5% of
16the cash receipts collected during the preceding fiscal year
17by the Audit Bureau of the Department from the tax imposed by
18subsections (a), (b), (c), and (d) of Section 201 of this Act,
19net of deposits into the Income Tax Refund Fund made from those
20cash receipts.
21(Source: P.A. 101-8, see Section 99 for effective date;
22101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-636, eff.
236-10-20; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658,
24eff. 8-27-21; 102-699, eff. 4-19-22; 102-700, eff. 4-19-22;
25102-813, eff. 5-13-22; revised 8-2-22.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.