Sen. Thomas Cullerton

Filed: 5/28/2014

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 961

2    AMENDMENT NO. ______. Amend House Bill 961 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1(a) and (b) of Section 201 of the Illinois Income Tax Act
2during the preceding month. Beginning July 1, 1995, as soon as
3may be after the first day of each month, the Department of
4Revenue shall certify to the Treasurer an amount equal to the
5amounts calculated pursuant to subsection (b) of Section 901 of
6the Illinois Income Tax Act based on 1/10 of the net revenue
7realized from the tax imposed by subsections (a) and (b) of
8Section 201 of the Illinois Income Tax Act during the preceding
9month. Net revenue realized for a month shall be defined as the
10revenue from the tax imposed by subsections (a) and (b) of
11Section 201 of the Illinois Income Tax Act which is deposited
12in the General Revenue Fund, the Education Assistance Fund and
13the Income Tax Surcharge Local Government Distributive Fund
14during 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 tax
17imposed by subsections (a) and (b) of Section 201 of the
18Illinois Income Tax Act. Upon receipt of such certification,
19the Treasurer shall transfer from the General Revenue Fund to a
20special fund in the State treasury, to be known as the "Local
21Government Distributive Fund", the amount shown on such
22certification.
23    Beginning on the effective date of this amendatory Act of
24the 98th General Assembly, the Treasurer shall perform the
25transfers required by this Section no later than 60 days after
26he or she receives the certification from the Department of

 

 

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1Revenue.
2    All amounts paid into the Local Government Distributive
3Fund in accordance with this Section and allocated pursuant to
4this Act are appropriated on a continuing basis.
5(Source: P.A. 88-89.)
 
6    Section 10. The Illinois Income Tax Act is amended by
7changing Section 901 as follows:
 
8    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
9    Sec. 901. Collection Authority.
10    (a) In general.
11    The Department shall collect the taxes imposed by this Act.
12The Department shall collect certified past due child support
13amounts under Section 2505-650 of the Department of Revenue Law
14(20 ILCS 2505/2505-650). Except as provided in subsections (c),
15(e), (f), and (g) of this Section, money collected pursuant to
16subsections (a) and (b) of Section 201 of this Act shall be
17paid into the General Revenue Fund in the State treasury; money
18collected pursuant to subsections (c) and (d) of Section 201 of
19this Act shall be paid into the Personal Property Tax
20Replacement Fund, a special fund in the State Treasury; and
21money collected under Section 2505-650 of the Department of
22Revenue Law (20 ILCS 2505/2505-650) shall be paid into the
23Child Support Enforcement Trust Fund, a special fund outside
24the State Treasury, or to the State Disbursement Unit

 

 

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1established under Section 10-26 of the Illinois Public Aid
2Code, as directed by the Department of Healthcare and Family
3Services.
4    (b) Local Government Distributive Fund.
5    Beginning August 1, 1969, and continuing through June 30,
61994, the Treasurer shall transfer each month from the General
7Revenue Fund to a special fund in the State treasury, to be
8known as the "Local Government Distributive Fund", an amount
9equal to 1/12 of the net revenue realized from the tax imposed
10by subsections (a) and (b) of Section 201 of this Act during
11the preceding month. Beginning July 1, 1994, and continuing
12through June 30, 1995, the Treasurer shall transfer each month
13from the General Revenue Fund to the Local Government
14Distributive Fund an amount equal to 1/11 of the net revenue
15realized from the tax imposed by subsections (a) and (b) of
16Section 201 of this Act during the preceding month. Beginning
17July 1, 1995 and continuing through January 31, 2011, the
18Treasurer shall transfer each month from the General Revenue
19Fund to the Local Government Distributive Fund an amount equal
20to the net of (i) 1/10 of the net revenue realized from the tax
21imposed by subsections (a) and (b) of Section 201 of the
22Illinois Income Tax Act during the preceding month (ii) minus,
23beginning July 1, 2003 and ending June 30, 2004, $6,666,666,
24and beginning July 1, 2004, zero. Beginning February 1, 2011,
25and continuing through January 31, 2015, the Treasurer shall
26transfer each month from the General Revenue Fund to the Local

 

 

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1Government Distributive Fund an amount equal to the sum of (i)
26% (10% of the ratio of the 3% individual income tax rate prior
3to 2011 to the 5% individual income tax rate after 2010) of the
4net revenue realized from the tax imposed by subsections (a)
5and (b) of Section 201 of this Act upon individuals, trusts,
6and estates during the preceding month and (ii) 6.86% (10% of
7the ratio of the 4.8% corporate income tax rate prior to 2011
8to the 7% corporate income tax rate after 2010) of the net
9revenue realized from the tax imposed by subsections (a) and
10(b) of Section 201 of this Act upon corporations during the
11preceding month. Beginning February 1, 2015 and continuing
12through January 31, 2025, the Treasurer shall transfer each
13month from the General Revenue Fund to the Local Government
14Distributive Fund an amount equal to the sum of (i) 8% (10% of
15the ratio of the 3% individual income tax rate prior to 2011 to
16the 3.75% individual income tax rate after 2014) of the net
17revenue realized from the tax imposed by subsections (a) and
18(b) of Section 201 of this Act upon individuals, trusts, and
19estates during the preceding month and (ii) 9.14% (10% of the
20ratio of the 4.8% corporate income tax rate prior to 2011 to
21the 5.25% corporate income tax rate after 2014) of the net
22revenue realized from the tax imposed by subsections (a) and
23(b) of Section 201 of this Act upon corporations during the
24preceding month. Beginning February 1, 2025, the Treasurer
25shall transfer each month from the General Revenue Fund to the
26Local Government Distributive Fund an amount equal to the sum

 

 

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1of (i) 9.23% (10% of the ratio of the 3% individual income tax
2rate prior to 2011 to the 3.25% individual income tax rate
3after 2024) of the net revenue realized from the tax imposed by
4subsections (a) and (b) of Section 201 of this Act upon
5individuals, trusts, and estates during the preceding month and
6(ii) 10% of the net revenue realized from the tax imposed by
7subsections (a) and (b) of Section 201 of this Act upon
8corporations during the preceding month. Net revenue realized
9for a month shall be defined as the revenue from the tax
10imposed by subsections (a) and (b) of Section 201 of this Act
11which is deposited in the General Revenue Fund, the Education
12Assistance Fund, the Income Tax Surcharge Local Government
13Distributive Fund, the Fund for the Advancement of Education,
14and the Commitment to Human Services Fund during the month
15minus the amount paid out of the General Revenue Fund in State
16warrants during that same month as refunds to taxpayers for
17overpayment of liability under the tax imposed by subsections
18(a) and (b) of Section 201 of this Act.
19    Beginning on the effective date of this amendatory Act of
20the 98th General Assembly, the Treasurer shall perform the
21transfers required by this subsection (b) no later than 60 days
22after he or she receives the certification from the Department
23as provided in Section 1 of the State Revenue Sharing 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. The
4    Department shall deposit 6% of such amounts during the
5    period beginning January 1, 1989 and ending on June 30,
6    1989. Beginning with State fiscal year 1990 and for each
7    fiscal year thereafter, the percentage deposited into the
8    Income Tax Refund Fund during a fiscal year shall be the
9    Annual Percentage. For fiscal years 1999 through 2001, the
10    Annual Percentage shall be 7.1%. For fiscal year 2003, the
11    Annual Percentage shall be 8%. For fiscal year 2004, the
12    Annual Percentage shall be 11.7%. Upon the effective date
13    of this amendatory Act of the 93rd General Assembly, the
14    Annual Percentage shall be 10% for fiscal year 2005. For
15    fiscal year 2006, the Annual Percentage shall be 9.75%. For
16    fiscal year 2007, the Annual Percentage shall be 9.75%. For
17    fiscal year 2008, the Annual Percentage shall be 7.75%. For
18    fiscal year 2009, the Annual Percentage shall be 9.75%. For
19    fiscal year 2010, the Annual Percentage shall be 9.75%. For
20    fiscal year 2011, the Annual Percentage shall be 8.75%. For
21    fiscal year 2012, the Annual Percentage shall be 8.75%. For
22    fiscal year 2013, the Annual Percentage shall be 9.75%. For
23    fiscal year 2014, the Annual Percentage shall be 9.5%. For
24    all other fiscal years, the Annual Percentage shall be
25    calculated as a fraction, the numerator of which shall be
26    the amount of refunds approved for payment by the

 

 

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1    Department during the preceding fiscal year as a result of
2    overpayment of tax liability under subsections (a) and
3    (b)(1), (2), and (3) of Section 201 of this Act plus the
4    amount of such refunds remaining approved but unpaid at the
5    end of the preceding fiscal year, minus the amounts
6    transferred into the Income Tax Refund Fund from the
7    Tobacco Settlement Recovery Fund, and the denominator of
8    which shall be the amounts which will be collected pursuant
9    to subsections (a) and (b)(1), (2), and (3) of Section 201
10    of this Act during the preceding fiscal year; except that
11    in State fiscal year 2002, the Annual Percentage shall in
12    no event exceed 7.6%. The Director of Revenue shall certify
13    the Annual Percentage to the Comptroller on the last
14    business day of the fiscal year immediately preceding the
15    fiscal year for which it is to 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. The
21    Department shall deposit 18% of such amounts during the
22    period beginning January 1, 1989 and ending on June 30,
23    1989. Beginning with State fiscal year 1990 and for each
24    fiscal year thereafter, the percentage deposited into the
25    Income Tax Refund Fund during a fiscal year shall be the
26    Annual Percentage. For fiscal years 1999, 2000, and 2001,

 

 

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1    the Annual Percentage shall be 19%. For fiscal year 2003,
2    the Annual Percentage shall be 27%. For fiscal year 2004,
3    the Annual Percentage shall be 32%. Upon the effective date
4    of this amendatory Act of the 93rd General Assembly, the
5    Annual Percentage shall be 24% for fiscal year 2005. For
6    fiscal year 2006, the Annual Percentage shall be 20%. For
7    fiscal year 2007, the Annual Percentage shall be 17.5%. For
8    fiscal year 2008, the Annual Percentage shall be 15.5%. For
9    fiscal year 2009, the Annual Percentage shall be 17.5%. For
10    fiscal year 2010, the Annual Percentage shall be 17.5%. For
11    fiscal year 2011, the Annual Percentage shall be 17.5%. For
12    fiscal year 2012, the Annual Percentage shall be 17.5%. For
13    fiscal year 2013, the Annual Percentage shall be 14%. For
14    fiscal year 2014, the Annual Percentage shall be 13.4%. For
15    all other fiscal years, the Annual Percentage shall be
16    calculated as a fraction, the numerator of which shall be
17    the amount of refunds approved for payment by the
18    Department during the preceding fiscal year as a result of
19    overpayment of tax liability under subsections (a) and
20    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
21    Act plus the amount of such refunds remaining approved but
22    unpaid at the end of the preceding fiscal year, and the
23    denominator of which shall be the amounts which will be
24    collected pursuant to subsections (a) and (b)(6), (7), and
25    (8), (c) and (d) of Section 201 of this Act during the
26    preceding fiscal year; except that in State fiscal year

 

 

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1    2002, the Annual Percentage shall in no event exceed 23%.
2    The Director of Revenue shall certify the Annual Percentage
3    to the Comptroller on the last business day of the fiscal
4    year immediately preceding the fiscal year for which it is
5    to be effective.
6        (3) The Comptroller shall order transferred and the
7    Treasurer shall transfer from the Tobacco Settlement
8    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
9    in January, 2001, (ii) $35,000,000 in January, 2002, and
10    (iii) $35,000,000 in January, 2003.
11    (d) Expenditures from Income Tax Refund Fund.
12        (1) Beginning January 1, 1989, money in the Income Tax
13    Refund Fund shall be expended exclusively for the purpose
14    of paying refunds resulting from overpayment of tax
15    liability under Section 201 of this Act, for paying rebates
16    under Section 208.1 in the event that the amounts in the
17    Homeowners' Tax Relief Fund are insufficient for that
18    purpose, and for making transfers pursuant to this
19    subsection (d).
20        (2) The Director shall order payment of refunds
21    resulting from overpayment of tax liability under Section
22    201 of this Act from the Income Tax Refund Fund only to the
23    extent that amounts collected pursuant to Section 201 of
24    this Act and transfers pursuant to this subsection (d) and
25    item (3) of subsection (c) have been deposited and retained
26    in the Fund.

 

 

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

 

 

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1    order transferred and the State Treasurer and State
2    Comptroller shall transfer from the Income Tax Refund Fund
3    to the General Revenue Fund any surplus remaining in the
4    Income Tax Refund Fund as of the end of such fiscal year;
5    excluding for fiscal years 2000, 2001, and 2002 amounts
6    attributable to transfers under item (3) of subsection (c)
7    less refunds resulting from the earned income tax credit.
8        (5) This Act shall constitute an irrevocable and
9    continuing appropriation from the Income Tax Refund Fund
10    for the purpose of paying refunds upon the order of the
11    Director in accordance with the provisions of this Section.
12    (e) Deposits into the Education Assistance Fund and the
13Income Tax Surcharge Local Government Distributive Fund.
14    On July 1, 1991, and thereafter, of the amounts collected
15pursuant to subsections (a) and (b) of Section 201 of this Act,
16minus deposits into the Income Tax Refund Fund, the Department
17shall deposit 7.3% into the Education Assistance Fund in the
18State Treasury. Beginning July 1, 1991, and continuing through
19January 31, 1993, of the amounts collected pursuant to
20subsections (a) and (b) of Section 201 of the Illinois Income
21Tax Act, minus deposits into the Income Tax Refund Fund, the
22Department shall deposit 3.0% into the Income Tax Surcharge
23Local Government Distributive Fund in the State Treasury.
24Beginning February 1, 1993 and continuing through June 30,
251993, of the amounts collected pursuant to subsections (a) and
26(b) of Section 201 of the Illinois Income Tax Act, minus

 

 

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

 

 

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1(b) of Section 201 of this Act during the preceding month,
2minus deposits into the Income Tax Refund Fund, into the
3Commitment to Human Services Fund:
4        (1) beginning February 1, 2015, and prior to February
5    1, 2025, 1/30; and
6        (2) beginning February 1, 2025, 1/26.
7    If the rate of tax imposed by subsection (a) and (b) of
8Section 201 is reduced pursuant to Section 201.5 of this Act,
9the Department shall not make the deposits required by this
10subsection (g) on or after the effective date of the reduction.
11(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24,
12eff. 6-19-13.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.".