Illinois General Assembly - Full Text of SB3010
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Full Text of SB3010  102nd General Assembly

SB3010 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3010

 

Introduced 1/5/2022, by Sen. Laura M. Murphy

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 115/2  from Ch. 85, par. 612
35 ILCS 5/901

    Amends the Illinois Income Tax Act. Provides that an amount equal to the sum of (i) 8% of the net revenue realized from the tax imposed upon individuals, trusts, estates, and electing pass-through entities and (ii) 9.11% of the net revenue realized from the tax imposed upon corporations shall be deposited into the Local Government Distributive Fund (currently, an amount equal to the sum of (i) 6.06% of the net revenue realized from the tax imposed upon individuals, trusts, and estates and (ii) 6.85% of the net revenue realized from the tax imposed upon corporations shall be deposited into the Local Government Distributive Fund). Amends the State Revenue Sharing Act to provide that amounts paid into the Local Government Distributive Fund are appropriated on a continuing basis. Effective July 1, 2022.


LRB102 23199 HLH 32361 b

 

 

A BILL FOR

 

SB3010LRB102 23199 HLH 32361 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 2 as follows:
 
6    (30 ILCS 115/2)  (from Ch. 85, par. 612)
7    Sec. 2. Allocation and Disbursement.
8    (a) As soon as may be after the first day of each month,
9the Department of Revenue shall allocate among the several
10municipalities and counties of this State the amount available
11in the Local Government Distributive Fund and in the Income
12Tax Surcharge Local Government Distributive Fund, determined
13as provided in Sections 1 and 1a above. Except as provided in
14Sections 13 and 13.1 of this Act, the Department shall then
15certify such allocations to the State Comptroller, who shall
16pay over to the several municipalities and counties the
17respective amounts allocated to them. The amount of such Funds
18allocable to each such municipality and county shall be in
19proportion to the number of individual residents of such
20municipality or county to the total population of the State,
21determined in each case on the basis of the latest census of
22the State, municipality or county conducted by the Federal
23government and certified by the Secretary of State and for

 

 

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1annexations to municipalities, the latest Federal, State or
2municipal census of the annexed area which has been certified
3by the Department of Revenue. Allocations to the City of
4Chicago under this Section are subject to Section 6 of the
5Hotel Operators' Occupation Tax Act. For the purpose of this
6Section, the number of individual residents of a county shall
7be reduced by the number of individuals residing therein in
8municipalities, but the number of individual residents of the
9State, county and municipality shall reflect the latest census
10of any of them. The amounts transferred into the Local
11Government Distributive Fund pursuant to Section 9 of the Use
12Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the
13Service Occupation Tax Act, and Section 3 of the Retailers'
14Occupation Tax Act, each as now or hereafter amended, pursuant
15to the amendments of such Sections by Public Act 85-1135,
16shall be distributed as provided in said Sections.
17    (b) It is the intent of the General Assembly that
18allocations made under this Section shall be made in a fair and
19equitable manner. Accordingly, the clerk of any municipality
20to which territory has been annexed, or from which territory
21has been disconnected, shall notify the Department of Revenue
22in writing of that annexation or disconnection and shall (1)
23state the number of residents within the territory that was
24annexed or disconnected, based on the last census conducted by
25the federal, State, or municipal government and certified by
26the Illinois Secretary of State, and (2) furnish therewith a

 

 

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1certified copy of the plat of annexation or, in the case of
2disconnection, the ordinance, final judgment, or resolution of
3disconnection together with an accurate depiction of the
4territory disconnected. The county in which the annexed or
5disconnected territory is located shall verify that the number
6of residents stated on the written notice that is to be sent to
7the Department of Revenue is true and accurate. The verified
8statement of the county shall accompany the written notice.
9However, if the county does not respond to the municipality's
10request for verification within 30 days, this verification
11requirement shall be waived. The written notice shall be
12provided to the Department of Revenue (1) within 30 days after
13the effective date of this amendatory Act of the 96th General
14Assembly for disconnections occurring after January 1, 2007
15and before the effective date of this amendatory Act of the
1696th General Assembly or (2) within 30 days after the
17annexation or disconnection for annexations or disconnections
18occurring on or after the effective date of this amendatory
19Act of the 96th General Assembly. For purposes of this
20Section, a disconnection or annexation through court order is
21deemed to be effective 30 days after the entry of a final
22judgment order, unless stayed pending appeal. Thereafter, the
23monthly allocation made to the municipality and to any other
24municipality or county affected by the annexation or
25disconnection shall be adjusted in accordance with this
26Section to reflect the change in residency of the residents of

 

 

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1the territory that was annexed or disconnected. The adjustment
2shall be made no later than 30 days after the Department of
3Revenue's receipt of the written notice of annexation or
4disconnection described in this Section.
5    (c) All amounts paid into the Local Government
6Distributive Fund in accordance with this Section and
7allocated pursuant to this Act are appropriated on a
8continuing basis.
9(Source: P.A. 96-1040, eff. 7-14-10.)
 
10    Section 10. The Illinois Income Tax Act is amended by
11changing Section 901 as follows:
 
12    (35 ILCS 5/901)
13    Sec. 901. Collection authority.
14    (a) In general. The Department shall collect the taxes
15imposed by this Act. The Department shall collect certified
16past due child support amounts under Section 2505-650 of the
17Department of Revenue Law of the Civil Administrative Code of
18Illinois. Except as provided in subsections (b), (c), (e),
19(f), (g), and (h) of this Section, money collected pursuant to
20subsections (a) and (b) of Section 201 of this Act shall be
21paid into the General Revenue Fund in the State treasury;
22money collected pursuant to subsections (c) and (d) of Section
23201 of this Act shall be paid into the Personal Property Tax
24Replacement Fund, a special fund in the State Treasury; and

 

 

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1money collected under Section 2505-650 of the Department of
2Revenue Law of the Civil Administrative Code of Illinois shall
3be paid into the Child Support Enforcement Trust Fund, a
4special fund outside the State Treasury, or to the State
5Disbursement Unit established under Section 10-26 of the
6Illinois Public Aid Code, as directed by the Department of
7Healthcare and Family Services.
8    (b) Local Government Distributive Fund. Beginning August
91, 2017 and continuing through June 30, 2022, the Treasurer
10shall transfer each month from the General Revenue Fund to the
11Local Government Distributive Fund an amount equal to the sum
12of: (i) 6.06% (10% of the ratio of the 3% individual income tax
13rate prior to 2011 to the 4.95% individual income tax rate
14after July 1, 2017) of the net revenue realized from the tax
15imposed by subsections (a) and (b) of Section 201 of this Act
16upon individuals, trusts, and estates during the preceding
17month; (ii) 6.85% (10% of the ratio of the 4.8% corporate
18income tax rate prior to 2011 to the 7% corporate income tax
19rate after July 1, 2017) of the net revenue realized from the
20tax imposed by subsections (a) and (b) of Section 201 of this
21Act upon corporations during the preceding month; and (iii)
22beginning February 1, 2022 and continuing through June 30,
232022, 6.06% of the net revenue realized from the tax imposed by
24subsection (p) of Section 201 of this Act upon electing
25pass-through entities. Beginning July 1, 2022, an amount equal
26to the sum of: (i) 8% (13.3% of the ratio of the 3% individual

 

 

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1income tax rate prior to 2011 to the 4.95% individual income
2tax rate after July 1, 2017) of the net revenue realized from
3the tax imposed by subsections (a) and (b) of Section 201 of
4this Act upon individuals, trusts, and estates; (ii) 9.11%
5(13.3% of the ratio of the 4.8% corporate income tax rate prior
6to 2011 to the 7% corporate income tax rate after July 1, 2017)
7of the net revenue realized from the tax imposed by
8subsections (a) and (b) of Section 201 of this Act upon
9corporations; and (iii) 8% of the net revenue realized from
10the tax imposed by subsection (p) of Section 201 of this Act
11upon electing pass-through entities shall be deposited into
12the Local Government Distributive Fund. Net revenue realized
13for a month shall be defined as the revenue from the tax
14imposed by subsections (a) and (b) of Section 201 of this Act
15which is deposited in the General Revenue Fund, the Education
16Assistance Fund, the Income Tax Surcharge Local Government
17Distributive Fund, the Fund for the Advancement of Education,
18and the Commitment to Human Services Fund during the month
19minus the amount paid out of the General Revenue Fund in State
20warrants during that same month as refunds to taxpayers for
21overpayment of liability under the tax imposed by subsections
22(a) and (b) of Section 201 of this Act.
23    Notwithstanding any provision of law to the contrary,
24beginning on July 6, 2017 (the effective date of Public Act
25100-23), those amounts required under this subsection (b) to
26be transferred by the Treasurer into the Local Government

 

 

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1Distributive Fund from the General Revenue Fund shall be
2directly deposited into the Local Government Distributive Fund
3as the revenue is realized from the tax imposed by subsections
4(a) and (b) of Section 201 of this Act.
5    (c) Deposits Into Income Tax Refund Fund.
6        (1) Beginning on January 1, 1989 and thereafter, the
7    Department shall deposit a percentage of the amounts
8    collected pursuant to subsections (a) and (b)(1), (2), and
9    (3) of Section 201 of this Act into a fund in the State
10    treasury known as the Income Tax Refund Fund. Beginning
11    with State fiscal year 1990 and for each fiscal year
12    thereafter, the percentage deposited into the Income Tax
13    Refund Fund during a fiscal year shall be the Annual
14    Percentage. For fiscal year 2011, the Annual Percentage
15    shall be 8.75%. For fiscal year 2012, the Annual
16    Percentage shall be 8.75%. For fiscal year 2013, the
17    Annual Percentage shall be 9.75%. For fiscal year 2014,
18    the Annual Percentage shall be 9.5%. For fiscal year 2015,
19    the Annual Percentage shall be 10%. For fiscal year 2018,
20    the Annual Percentage shall be 9.8%. For fiscal year 2019,
21    the Annual Percentage shall be 9.7%. For fiscal year 2020,
22    the Annual Percentage shall be 9.5%. For fiscal year 2021,
23    the Annual Percentage shall be 9%. For fiscal year 2022,
24    the Annual Percentage shall be 9.25%. For all other fiscal
25    years, the Annual Percentage shall be calculated as a
26    fraction, the numerator of which shall be the amount of

 

 

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1    refunds approved for payment by the Department during the
2    preceding fiscal year as a result of overpayment of tax
3    liability under subsections (a) and (b)(1), (2), and (3)
4    of Section 201 of this Act plus the amount of such refunds
5    remaining approved but unpaid at the end of the preceding
6    fiscal year, minus the amounts transferred into the Income
7    Tax Refund Fund from the Tobacco Settlement Recovery Fund,
8    and the denominator of which shall be the amounts which
9    will be collected pursuant to subsections (a) and (b)(1),
10    (2), and (3) of Section 201 of this Act during the
11    preceding fiscal year; except that in State fiscal year
12    2002, the Annual Percentage shall in no event exceed 7.6%.
13    The Director of Revenue shall certify the Annual
14    Percentage to the Comptroller on the last business day of
15    the fiscal year immediately preceding the fiscal year for
16    which it is to be effective.
17        (2) 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)(6), (7), and
20    (8), (c) and (d) of Section 201 of this Act into a fund in
21    the State treasury known as the Income Tax Refund Fund.
22    Beginning with State fiscal year 1990 and for each fiscal
23    year thereafter, the percentage deposited into the Income
24    Tax Refund Fund during a fiscal year shall be the Annual
25    Percentage. For fiscal year 2011, the Annual Percentage
26    shall be 17.5%. For fiscal year 2012, the Annual

 

 

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1    Percentage shall be 17.5%. For fiscal year 2013, the
2    Annual Percentage shall be 14%. For fiscal year 2014, the
3    Annual Percentage shall be 13.4%. For fiscal year 2015,
4    the Annual Percentage shall be 14%. For fiscal year 2018,
5    the Annual Percentage shall be 17.5%. For fiscal year
6    2019, the Annual Percentage shall be 15.5%. For fiscal
7    year 2020, the Annual Percentage shall be 14.25%. For
8    fiscal year 2021, the Annual Percentage shall be 14%. For
9    fiscal year 2022, the Annual Percentage shall be 15%. For
10    all other fiscal years, the Annual Percentage shall be
11    calculated as a fraction, the numerator of which shall be
12    the amount of refunds approved for payment by the
13    Department during the preceding fiscal year as a result of
14    overpayment of tax liability under subsections (a) and
15    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
16    Act plus the amount of such refunds remaining approved but
17    unpaid at the end of the preceding fiscal year, and the
18    denominator of which shall be the amounts which will be
19    collected pursuant to subsections (a) and (b)(6), (7), and
20    (8), (c) and (d) of Section 201 of this Act during the
21    preceding fiscal year; except that in State fiscal year
22    2002, the Annual Percentage shall in no event exceed 23%.
23    The Director of Revenue shall certify the Annual
24    Percentage to the Comptroller on the last business day of
25    the fiscal year immediately preceding the fiscal year for
26    which it is to be effective.

 

 

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1        (3) The Comptroller shall order transferred and the
2    Treasurer shall transfer from the Tobacco Settlement
3    Recovery Fund to the Income Tax Refund Fund (i)
4    $35,000,000 in January, 2001, (ii) $35,000,000 in January,
5    2002, and (iii) $35,000,000 in January, 2003.
6    (d) Expenditures from Income Tax Refund Fund.
7        (1) Beginning January 1, 1989, money in the Income Tax
8    Refund Fund shall be expended exclusively for the purpose
9    of paying refunds resulting from overpayment of tax
10    liability under Section 201 of this Act and for making
11    transfers pursuant to this 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
18    retained 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
2    resulting from overpayment of tax liability under
3    subsections (c) and (d) of Section 201 of this Act paid
4    from the Income Tax 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
14    over the amount collected pursuant to subsections (c) and
15    (d) of Section 201 of this Act deposited into the Income
16    Tax 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
19    shall 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
4    Section.
5    (e) Deposits into the Education Assistance Fund and the
6Income Tax Surcharge Local Government Distributive Fund. On
7July 1, 1991, and thereafter, of the amounts collected
8pursuant to subsections (a) and (b) of Section 201 of this Act,
9minus deposits into the Income Tax Refund Fund, the Department
10shall deposit 7.3% into the Education Assistance Fund in the
11State Treasury. Beginning July 1, 1991, and continuing through
12January 31, 1993, of the amounts collected pursuant to
13subsections (a) and (b) of Section 201 of the Illinois Income
14Tax Act, minus deposits into the Income Tax Refund Fund, the
15Department shall deposit 3.0% into the Income Tax Surcharge
16Local Government Distributive Fund in the State Treasury.
17Beginning February 1, 1993 and continuing through June 30,
181993, of the amounts collected pursuant to subsections (a) and
19(b) of Section 201 of the Illinois Income Tax Act, minus
20deposits into the Income Tax Refund Fund, the Department shall
21deposit 4.4% into the Income Tax Surcharge Local Government
22Distributive Fund in the State Treasury. Beginning July 1,
231993, and continuing through June 30, 1994, of the amounts
24collected under subsections (a) and (b) of Section 201 of this
25Act, minus deposits into the Income Tax Refund Fund, the
26Department shall deposit 1.475% into the Income Tax Surcharge

 

 

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

 

 

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1    If the rate of tax imposed by subsection (a) and (b) of
2Section 201 is reduced pursuant to Section 201.5 of this Act,
3the Department shall not make the deposits required by this
4subsection (g) on or after the effective date of the
5reduction.
6    (h) Deposits into the Tax Compliance and Administration
7Fund. Beginning on the first day of the first calendar month to
8occur on or after August 26, 2014 (the effective date of Public
9Act 98-1098), each month the Department shall pay into the Tax
10Compliance and Administration Fund, to be used, subject to
11appropriation, to fund additional auditors and compliance
12personnel at the Department, an amount equal to 1/12 of 5% of
13the cash receipts collected during the preceding fiscal year
14by the Audit Bureau of the Department from the tax imposed by
15subsections (a), (b), (c), and (d) of Section 201 of this Act,
16net of deposits into the Income Tax Refund Fund made from those
17cash receipts.
18(Source: P.A. 101-8, see Section 99 for effective date;
19101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-636, eff.
206-10-20; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658,
21eff. 8-27-21; revised 10-19-21.)
 
22    Section 99. Effective date. This Act takes effect July 1,
232022.