HB0961 EnrolledLRB098 06118 HLH 36159 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 State Revenue Sharing Act is amended by
5changing Section 1 as follows:
 
6    (30 ILCS 115/1)  (from Ch. 85, par. 611)
7    Sec. 1. Local Government Distributive Fund. Through June
830, 1994, as soon as may be after the first day of each month
9the Department of Revenue shall certify to the Treasurer an
10amount equal to 1/12 of the net revenue realized from the tax
11imposed by subsections (a) and (b) of Section 201 of the
12Illinois Income Tax Act during the preceding month. Beginning
13July 1, 1994, and continuing through June 30, 1995, as soon as
14may be after the first day of each month, the Department of
15Revenue shall certify to the Treasurer an amount equal to 1/11
16of the net revenue realized from the tax imposed by subsections
17(a) and (b) of Section 201 of the Illinois Income Tax Act
18during the preceding month. Beginning July 1, 1995, as soon as
19may be after the first day of each month, the Department of
20Revenue shall certify to the Treasurer an amount equal to the
21amounts calculated pursuant to subsection (b) of Section 901 of
22the Illinois Income Tax Act based on 1/10 of the net revenue
23realized from the tax imposed by subsections (a) and (b) of

 

 

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1Section 201 of the Illinois Income Tax Act during the preceding
2month. Net revenue realized for a month shall be defined as the
3revenue from the tax imposed by subsections (a) and (b) of
4Section 201 of the Illinois Income Tax Act which is deposited
5in the General Revenue Fund, the Education Assistance Fund and
6the Income Tax Surcharge Local Government Distributive Fund
7during 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 the
11Illinois Income Tax Act. Upon receipt of such certification,
12the Treasurer shall transfer from the General Revenue Fund to a
13special fund in the State treasury, to be known as the "Local
14Government Distributive Fund", the amount shown on such
15certification.
16    Beginning on the effective date of this amendatory Act of
17the 98th General Assembly, the Comptroller shall perform the
18transfers required by this Section no later than 60 days after
19he or she receives the certification from the Treasurer.
20    All amounts paid into the Local Government Distributive
21Fund in accordance with this Section and allocated pursuant to
22this Act are appropriated on a continuing basis.
23(Source: P.A. 88-89.)
 
24    Section 10. The Illinois Income Tax Act is amended by
25changing Section 901 as follows:
 

 

 

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1    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
2    Sec. 901. Collection Authority.
3    (a) In general.
4    The Department shall collect the taxes imposed by this Act.
5The Department shall collect certified past due child support
6amounts under Section 2505-650 of the Department of Revenue Law
7(20 ILCS 2505/2505-650). Except as provided in subsections (c),
8(e), (f), and (g) of this Section, money collected pursuant to
9subsections (a) and (b) of Section 201 of this Act shall be
10paid into the General Revenue Fund in the State treasury; money
11collected pursuant to subsections (c) and (d) of Section 201 of
12this Act shall be paid into the Personal Property Tax
13Replacement Fund, a special fund in the State Treasury; and
14money collected under Section 2505-650 of the Department of
15Revenue Law (20 ILCS 2505/2505-650) shall be paid into the
16Child Support Enforcement Trust Fund, a special fund outside
17the State Treasury, or to the State Disbursement Unit
18established under Section 10-26 of the Illinois Public Aid
19Code, as directed by the Department of Healthcare and Family
20Services.
21    (b) Local Government Distributive Fund.
22    Beginning August 1, 1969, and continuing through June 30,
231994, the Treasurer shall transfer each month from the General
24Revenue Fund to a special fund in the State treasury, to be
25known as the "Local Government Distributive Fund", an amount

 

 

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1equal to 1/12 of the net revenue realized from the tax imposed
2by subsections (a) and (b) of Section 201 of this Act during
3the preceding month. Beginning July 1, 1994, and continuing
4through June 30, 1995, the Treasurer shall transfer each month
5from the General Revenue Fund to the Local Government
6Distributive Fund an amount equal to 1/11 of the net revenue
7realized from the tax imposed by subsections (a) and (b) of
8Section 201 of this Act during the preceding month. Beginning
9July 1, 1995 and continuing through January 31, 2011, the
10Treasurer shall transfer each month from the General Revenue
11Fund to the Local Government Distributive Fund an amount equal
12to the net of (i) 1/10 of the net revenue realized from the tax
13imposed by subsections (a) and (b) of Section 201 of the
14Illinois Income Tax Act during the preceding month (ii) minus,
15beginning July 1, 2003 and ending June 30, 2004, $6,666,666,
16and beginning July 1, 2004, zero. Beginning February 1, 2011,
17and continuing through January 31, 2015, the Treasurer shall
18transfer each month from the General Revenue Fund to the Local
19Government Distributive Fund an amount equal to the sum of (i)
206% (10% of the ratio of the 3% individual income tax rate prior
21to 2011 to the 5% individual income tax rate after 2010) of the
22net revenue realized from the tax imposed by subsections (a)
23and (b) of Section 201 of this Act upon individuals, trusts,
24and estates during the preceding month and (ii) 6.86% (10% of
25the ratio of the 4.8% corporate income tax rate prior to 2011
26to the 7% corporate income tax rate after 2010) of the net

 

 

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1revenue realized from the tax imposed by subsections (a) and
2(b) of Section 201 of this Act upon corporations during the
3preceding month. Beginning February 1, 2015 and continuing
4through January 31, 2025, the Treasurer shall transfer each
5month from the General Revenue Fund to the Local Government
6Distributive Fund an amount equal to the sum of (i) 8% (10% of
7the ratio of the 3% individual income tax rate prior to 2011 to
8the 3.75% individual income tax rate after 2014) of the net
9revenue realized from the tax imposed by subsections (a) and
10(b) of Section 201 of this Act upon individuals, trusts, and
11estates during the preceding month and (ii) 9.14% (10% of the
12ratio of the 4.8% corporate income tax rate prior to 2011 to
13the 5.25% corporate income tax rate after 2014) of the net
14revenue realized from the tax imposed by subsections (a) and
15(b) of Section 201 of this Act upon corporations during the
16preceding month. Beginning February 1, 2025, the Treasurer
17shall transfer each month from the General Revenue Fund to the
18Local Government Distributive Fund an amount equal to the sum
19of (i) 9.23% (10% of the ratio of the 3% individual income tax
20rate prior to 2011 to the 3.25% individual income tax rate
21after 2024) of the net revenue realized from the tax imposed by
22subsections (a) and (b) of Section 201 of this Act upon
23individuals, trusts, and estates during the preceding month and
24(ii) 10% of the net revenue realized from the tax imposed by
25subsections (a) and (b) of Section 201 of this Act upon
26corporations during the preceding month. Net revenue realized

 

 

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1for a month shall be defined as the revenue from the tax
2imposed by subsections (a) and (b) of Section 201 of this Act
3which is deposited in the General Revenue Fund, the Education
4Assistance Fund, the Income Tax Surcharge Local Government
5Distributive Fund, the Fund for the Advancement of Education,
6and the Commitment to Human Services Fund during the month
7minus the amount paid out of the General Revenue Fund in State
8warrants during that same month as refunds to taxpayers for
9overpayment of liability under the tax imposed by subsections
10(a) and (b) of Section 201 of this Act.
11    Beginning on the effective date of this amendatory Act of
12the 98th General Assembly, the Comptroller shall perform the
13transfers required by this subsection (b) no later than 60 days
14after he or she receives the certification from the Treasurer
15as provided in Section 1 of the State Revenue Sharing Act.
16    (c) Deposits Into Income Tax Refund Fund.
17        (1) Beginning on January 1, 1989 and thereafter, the
18    Department shall deposit a percentage of the amounts
19    collected pursuant to subsections (a) and (b)(1), (2), and
20    (3), of Section 201 of this Act into a fund in the State
21    treasury known as the Income Tax Refund Fund. The
22    Department shall deposit 6% of such amounts during the
23    period beginning January 1, 1989 and ending on June 30,
24    1989. Beginning with State fiscal year 1990 and for each
25    fiscal year thereafter, the percentage deposited into the
26    Income Tax Refund Fund during a fiscal year shall be the

 

 

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1    Annual Percentage. For fiscal years 1999 through 2001, the
2    Annual Percentage shall be 7.1%. For fiscal year 2003, the
3    Annual Percentage shall be 8%. For fiscal year 2004, the
4    Annual Percentage shall be 11.7%. Upon the effective date
5    of this amendatory Act of the 93rd General Assembly, the
6    Annual Percentage shall be 10% for fiscal year 2005. For
7    fiscal year 2006, the Annual Percentage shall be 9.75%. For
8    fiscal year 2007, the Annual Percentage shall be 9.75%. For
9    fiscal year 2008, the Annual Percentage shall be 7.75%. For
10    fiscal year 2009, the Annual Percentage shall be 9.75%. For
11    fiscal year 2010, the Annual Percentage shall be 9.75%. For
12    fiscal year 2011, the Annual Percentage shall be 8.75%. For
13    fiscal year 2012, the Annual Percentage shall be 8.75%. For
14    fiscal year 2013, the Annual Percentage shall be 9.75%. For
15    fiscal year 2014, the Annual Percentage shall be 9.5%. For
16    all other fiscal years, the Annual Percentage shall be
17    calculated as a fraction, the numerator of which shall be
18    the amount of refunds approved for payment by the
19    Department during the preceding fiscal year as a result of
20    overpayment of tax liability under subsections (a) and
21    (b)(1), (2), and (3) of Section 201 of this Act plus the
22    amount of such refunds remaining approved but unpaid at the
23    end of the preceding fiscal year, minus the amounts
24    transferred into the Income Tax Refund Fund from the
25    Tobacco Settlement Recovery Fund, and the denominator of
26    which shall be the amounts which will be collected pursuant

 

 

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1    to subsections (a) and (b)(1), (2), and (3) of Section 201
2    of this Act during the preceding fiscal year; except that
3    in State fiscal year 2002, the Annual Percentage shall in
4    no event exceed 7.6%. The Director of Revenue shall certify
5    the Annual Percentage to the Comptroller on the last
6    business day of the fiscal year immediately preceding the
7    fiscal year for which it is to be effective.
8        (2) Beginning on January 1, 1989 and thereafter, the
9    Department shall deposit a percentage of the amounts
10    collected pursuant to subsections (a) and (b)(6), (7), and
11    (8), (c) and (d) of Section 201 of this Act into a fund in
12    the State treasury known as the Income Tax Refund Fund. The
13    Department shall deposit 18% of such amounts during the
14    period beginning January 1, 1989 and ending on June 30,
15    1989. Beginning with State fiscal year 1990 and for each
16    fiscal year thereafter, the percentage deposited into the
17    Income Tax Refund Fund during a fiscal year shall be the
18    Annual Percentage. For fiscal years 1999, 2000, and 2001,
19    the Annual Percentage shall be 19%. For fiscal year 2003,
20    the Annual Percentage shall be 27%. For fiscal year 2004,
21    the Annual Percentage shall be 32%. Upon the effective date
22    of this amendatory Act of the 93rd General Assembly, the
23    Annual Percentage shall be 24% for fiscal year 2005. For
24    fiscal year 2006, the Annual Percentage shall be 20%. For
25    fiscal year 2007, the Annual Percentage shall be 17.5%. For
26    fiscal year 2008, the Annual Percentage shall be 15.5%. For

 

 

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1    fiscal year 2009, the Annual Percentage shall be 17.5%. For
2    fiscal year 2010, the Annual Percentage shall be 17.5%. For
3    fiscal year 2011, the Annual Percentage shall be 17.5%. For
4    fiscal year 2012, the Annual Percentage shall be 17.5%. For
5    fiscal year 2013, the Annual Percentage shall be 14%. For
6    fiscal year 2014, the Annual Percentage shall be 13.4%. For
7    all other fiscal years, the Annual Percentage shall be
8    calculated as a fraction, the numerator of which shall be
9    the amount of refunds approved for payment by the
10    Department during the preceding fiscal year as a result of
11    overpayment of tax liability under subsections (a) and
12    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
13    Act plus the amount of such refunds remaining approved but
14    unpaid at the end of the preceding fiscal year, and the
15    denominator of which shall be the amounts which will be
16    collected pursuant to subsections (a) and (b)(6), (7), and
17    (8), (c) and (d) of Section 201 of this Act during the
18    preceding fiscal year; except that in State fiscal year
19    2002, the Annual Percentage shall in no event exceed 23%.
20    The Director of Revenue shall certify the Annual Percentage
21    to the Comptroller on the last business day of the fiscal
22    year immediately preceding the fiscal year for which it is
23    to be effective.
24        (3) The Comptroller shall order transferred and the
25    Treasurer shall transfer from the Tobacco Settlement
26    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000

 

 

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1    in January, 2001, (ii) $35,000,000 in January, 2002, and
2    (iii) $35,000,000 in January, 2003.
3    (d) Expenditures from Income Tax Refund Fund.
4        (1) Beginning January 1, 1989, money in the Income Tax
5    Refund Fund shall be expended exclusively for the purpose
6    of paying refunds resulting from overpayment of tax
7    liability under Section 201 of this Act, for paying rebates
8    under Section 208.1 in the event that the amounts in the
9    Homeowners' Tax Relief Fund are insufficient for that
10    purpose, and for making transfers pursuant to this
11    subsection (d).
12        (2) The Director shall order payment of refunds
13    resulting from overpayment of tax liability under Section
14    201 of this Act from the Income Tax Refund Fund only to the
15    extent that amounts collected pursuant to Section 201 of
16    this Act and transfers pursuant to this subsection (d) and
17    item (3) of subsection (c) have been deposited and retained
18    in the Fund.
19        (3) As soon as possible after the end of each fiscal
20    year, the Director shall order transferred and the State
21    Treasurer and State Comptroller shall transfer from the
22    Income Tax Refund Fund to the Personal Property Tax
23    Replacement Fund an amount, certified by the Director to
24    the Comptroller, equal to the excess of the amount
25    collected pursuant to subsections (c) and (d) of Section
26    201 of this Act deposited into the Income Tax Refund Fund

 

 

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

 

 

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1    continuing appropriation from the Income Tax Refund Fund
2    for the purpose of paying refunds upon the order of the
3    Director in accordance with the provisions of this Section.
4    (e) Deposits into the Education Assistance Fund and the
5Income Tax Surcharge Local Government Distributive Fund.
6    On July 1, 1991, and thereafter, of the amounts collected
7pursuant to subsections (a) and (b) of Section 201 of this Act,
8minus deposits into the Income Tax Refund Fund, the Department
9shall deposit 7.3% into the Education Assistance Fund in the
10State Treasury. Beginning July 1, 1991, and continuing through
11January 31, 1993, of the amounts collected pursuant to
12subsections (a) and (b) of Section 201 of the Illinois Income
13Tax Act, minus deposits into the Income Tax Refund Fund, the
14Department shall deposit 3.0% into the Income Tax Surcharge
15Local Government Distributive Fund in the State Treasury.
16Beginning February 1, 1993 and continuing through June 30,
171993, of the amounts collected pursuant to subsections (a) and
18(b) of Section 201 of the Illinois Income Tax Act, minus
19deposits into the Income Tax Refund Fund, the Department shall
20deposit 4.4% into the Income Tax Surcharge Local Government
21Distributive Fund in the State Treasury. Beginning July 1,
221993, and continuing through June 30, 1994, of the amounts
23collected under subsections (a) and (b) of Section 201 of this
24Act, minus deposits into the Income Tax Refund Fund, the
25Department shall deposit 1.475% into the Income Tax Surcharge
26Local Government Distributive Fund in the State Treasury.

 

 

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1    (f) Deposits into the Fund for the Advancement of
2Education. Beginning February 1, 2015, the Department shall
3deposit the following portions of the revenue realized from the
4tax imposed upon individuals, trusts, and estates by
5subsections (a) and (b) of Section 201 of this Act during the
6preceding month, minus deposits into the Income Tax Refund
7Fund, into the Fund for the Advancement of Education:
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 (f) on or after the effective date of the reduction.
15    (g) Deposits into the Commitment to Human Services Fund.
16Beginning February 1, 2015, the Department shall deposit the
17following portions of the revenue realized from the tax imposed
18upon individuals, trusts, and estates by subsections (a) and
19(b) of Section 201 of this Act during the preceding month,
20minus deposits into the Income Tax Refund Fund, into the
21Commitment to Human Services Fund:
22        (1) beginning February 1, 2015, and prior to February
23    1, 2025, 1/30; and
24        (2) beginning February 1, 2025, 1/26.
25    If the rate of tax imposed by subsection (a) and (b) of
26Section 201 is reduced pursuant to Section 201.5 of this Act,

 

 

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1the Department shall not make the deposits required by this
2subsection (g) on or after the effective date of the reduction.
3(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24,
4eff. 6-19-13.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.