[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Senate Amendment 002 ] |
| [ Senate Amendment 003 ] |
91_HB3939enr HB3939 Enrolled LRB9112053SMdv 1 AN ACT to amend the Illinois Income Tax Act by changing 2 Section 901 and adding Section 212. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Income Tax Act is amended by 6 changing Section 901 and adding Section 212 as follows: 7 (35 ILCS 5/212 new) 8 Sec. 212. Earned income tax credit. 9 (a) With respect to the federal earned income tax credit 10 allowed for the taxable year under Section 32 of the federal 11 Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer 12 is entitled to a credit against the tax imposed by 13 subsections (a) and (b) of Section 201 in an amount equal to 14 5% of the federal tax credit for each taxable year beginning 15 on or after January 1, 2000 and ending on or before December 16 31, 2002. 17 For a non-resident or part-year resident, the amount of 18 the credit under this Section shall be in proportion to the 19 amount of income attributable to this State. 20 (b) In no event shall a credit under this Section reduce 21 the taxpayer's liability to less than zero. 22 (c) This Section is repealed on June 1, 2003. 23 (35 ILCS 5/901) (from Ch. 120, par. 9-901) 24 Sec. 901. Collection Authority. 25 (a) In general. 26 The Department shall collect the taxes imposed by this 27 Act. The Department shall collect certified past due child 28 support amounts under Section 2505-650 of the Department of 29 Revenue Law (20 ILCS 2505/2505-650). Except as provided in 30 subsections (c) and (e) of this Section, money collected HB3939 Enrolled -2- LRB9112053SMdv 1 pursuant to subsections (a) and (b) of Section 201 of this 2 Act shall be paid into the General Revenue Fund in the State 3 treasury; money collected pursuant to subsections (c) and (d) 4 of Section 201 of this Act shall be paid into the Personal 5 Property Tax Replacement Fund, a special fund in the State 6 Treasury; and money collected under Section 2505-650 of the 7 Department of Revenue Law (20 ILCS 2505/2505-650) shall be 8 paid to the State Disbursement Unit established under Section 9 10-26 of the Illinois Public Aid Code. 10 (b) Local Governmental Distributive Fund. 11 Beginning August 1, 1969, and continuing through June 30, 12 1994, the Treasurer shall transfer each month from the 13 General Revenue Fund to a special fund in the State treasury, 14 to be known as the "Local Government Distributive Fund", an 15 amount equal to 1/12 of the net revenue realized from the tax 16 imposed by subsections (a) and (b) of Section 201 of this Act 17 during the preceding month. Beginning July 1, 1994, and 18 continuing through June 30, 1995, the Treasurer shall 19 transfer each month from the General Revenue Fund to the 20 Local Government Distributive Fund an amount equal to 1/11 of 21 the net revenue realized from the tax imposed by subsections 22 (a) and (b) of Section 201 of this Act during the preceding 23 month. Beginning July 1, 1995, the Treasurer shall transfer 24 each month from the General Revenue Fund to the Local 25 Government Distributive Fund an amount equal to 1/10 of the 26 net revenue realized from the tax imposed by subsections (a) 27 and (b) of Section 201 of the Illinois Income Tax Act during 28 the preceding month. Net revenue realized for a month shall 29 be defined as the revenue from the tax imposed by subsections 30 (a) and (b) of Section 201 of this Act which is deposited in 31 the General Revenue Fund, the Educational Assistance Fund and 32 the Income Tax Surcharge Local Government Distributive Fund 33 during the month minus the amount paid out of the General 34 Revenue Fund in State warrants during that same month as HB3939 Enrolled -3- LRB9112053SMdv 1 refunds to taxpayers for overpayment of liability under the 2 tax imposed by subsections (a) and (b) of Section 201 of this 3 Act. 4 (c) Deposits Into Income Tax Refund Fund. 5 (1) Beginning on January 1, 1989 and thereafter, 6 the Department shall deposit a percentage of the amounts 7 collected pursuant to subsections (a) and (b)(1), (2), 8 and (3), of Section 201 of this Act into a fund in the 9 State treasury known as the Income Tax Refund Fund. The 10 Department shall deposit 6% of such amounts during the 11 period beginning January 1, 1989 and ending on June 30, 12 1989. Beginning with State fiscal year 1990 and for each 13 fiscal year thereafter, the percentage deposited into the 14 Income Tax Refund Fund during a fiscal year shall be the 15 Annual Percentage. For fiscal years 1999 through 2001, 16 the Annual Percentage shall be 7.1%. For all other 17 fiscal years, the Annual Percentage shall be calculated 18 as a fraction, the numerator of which shall be the amount 19 of refunds approved for payment by the Department during 20 the preceding fiscal year as a result of overpayment of 21 tax liability under subsections (a) and (b)(1), (2), and 22 (3) of Section 201 of this Act plus the amount of such 23 refunds remaining approved but unpaid at the end of the 24 preceding fiscal year, the denominator of which shall be 25 the amounts which will be collected pursuant to 26 subsections (a) and (b)(1), (2), and (3) of Section 201 27 of this Act during the preceding fiscal year. The 28 Director of Revenue shall certify the Annual Percentage 29 to the Comptroller on the last business day of the fiscal 30 year immediately preceding the fiscal year for which it 31 is to be effective. 32 (2) Beginning on January 1, 1989 and thereafter, 33 the Department shall deposit a percentage of the amounts 34 collected pursuant to subsections (a) and (b)(6), (7), HB3939 Enrolled -4- LRB9112053SMdv 1 and (8), (c) and (d) of Section 201 of this Act into a 2 fund in the State treasury known as the Income Tax Refund 3 Fund. The Department shall deposit 18% of such amounts 4 during the period beginning January 1, 1989 and ending on 5 June 30, 1989. Beginning with State fiscal year 1990 and 6 for each fiscal year thereafter, the percentage deposited 7 into the Income Tax Refund Fund during a fiscal year 8 shall be the Annual Percentage. For fiscal years 1999, 9 2000, and 2001, the Annual Percentage shall be 19%. 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 14 of 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 17 but unpaid at the end of the preceding fiscal year, the 18 denominator of which shall be the amounts which will be 19 collected pursuant to subsections (a) and (b)(6), (7), 20 and (8), (c) and (d) of Section 201 of this Act during 21 the preceding fiscal year. The Director of Revenue shall 22 certify the Annual Percentage to the Comptroller on the 23 last business day of the fiscal year immediately 24 preceding the fiscal year for which it is to be 25 effective. 26 (3) The Comptroller shall order transferred and the 27 Treasurer shall transfer from the Tobacco Settlement 28 Recovery Fund to the Income Tax Refund Fund (i) 29 $35,000,000 in January, 2001, (ii) $35,000,000 in 30 January, 2002, and (iii) $35,000,000 in January, 2003. 31 (d) Expenditures from Income Tax Refund Fund. 32 (1) Beginning January 1, 1989, money in the Income 33 Tax Refund Fund shall be expended exclusively for the 34 purpose of paying refunds resulting from overpayment of HB3939 Enrolled -5- LRB9112053SMdv 1 tax liability under Section 201 of this Act and for 2 making transfers pursuant to this subsection (d). 3 (2) The Director shall order payment of refunds 4 resulting from overpayment of tax liability under Section 5 201 of this Act from the Income Tax Refund Fund only to 6 the extent that amounts collected pursuant to Section 201 7 of this Act and transfers pursuant to this subsection (d) 8 and item (3) of subsection (c) have been deposited and 9 retained in the Fund. 10 (3) As soon as possible after the end of each 11 fiscal year, the Director shall order transferred and the 12 State Treasurer and State Comptroller shall transfer from 13 the Income Tax Refund Fund to the Personal Property Tax 14 Replacement Fund an amount, certified by the Director to 15 the Comptroller, equal to the excess of the amount 16 collected pursuant to subsections (c) and (d) of Section 17 201 of this Act deposited into the Income Tax Refund Fund 18 during the fiscal year over 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. 22 (4) As soon as possible after the end of each 23 fiscal year, the Director shall order transferred and the 24 State Treasurer and State Comptroller shall transfer from 25 the Personal Property Tax Replacement Fund to the Income 26 Tax Refund Fund an amount, certified by the Director to 27 the Comptroller, equal to the excess of the amount of 28 refunds resulting from overpayment of tax liability under 29 subsections (c) and (d) of Section 201 of this Act paid 30 from the Income Tax Refund Fund during the fiscal year 31 over the amount collected pursuant to subsections (c) and 32 (d) of Section 201 of this Act deposited into the Income 33 Tax Refund Fund during the fiscal year. 34 (4.5) As soon as possible after the end of fiscal HB3939 Enrolled -6- LRB9112053SMdv 1 year 1999 and of each fiscal year thereafter, the 2 Director shall order transferred and the State Treasurer 3 and State Comptroller shall transfer from the Income Tax 4 Refund Fund to the General Revenue Fund any surplus 5 remaining in the Income Tax Refund Fund as of the end of 6 such fiscal year; excluding for fiscal years 2000, 2001, 7 and 2002 amounts attributable to transfers under item (3) 8 of subsection (c) less refunds resulting from the earned 9 income tax credit. 10 (5) This Act shall constitute an irrevocable and 11 continuing appropriation from the Income Tax Refund Fund 12 for the purpose of paying refunds upon the order of the 13 Director in accordance with the provisions of this 14 Section. 15 (e) Deposits into the Education Assistance Fund and the 16 Income Tax Surcharge Local Government Distributive Fund. 17 On July 1, 1991, and thereafter, of the amounts collected 18 pursuant to subsections (a) and (b) of Section 201 of this 19 Act, minus deposits into the Income Tax Refund Fund, the 20 Department shall deposit 7.3% into the Education Assistance 21 Fund in the State Treasury. Beginning July 1, 1991, and 22 continuing through January 31, 1993, of the amounts collected 23 pursuant to subsections (a) and (b) of Section 201 of the 24 Illinois Income Tax Act, minus deposits into the Income Tax 25 Refund Fund, the Department shall deposit 3.0% into the 26 Income Tax Surcharge Local Government Distributive Fund in 27 the State Treasury. Beginning February 1, 1993 and 28 continuing through June 30, 1993, of the amounts collected 29 pursuant to subsections (a) and (b) of Section 201 of the 30 Illinois Income Tax Act, minus deposits into the Income Tax 31 Refund Fund, the Department shall deposit 4.4% into the 32 Income Tax Surcharge Local Government Distributive Fund in 33 the State Treasury. Beginning July 1, 1993, and continuing 34 through June 30, 1994, of the amounts collected under HB3939 Enrolled -7- LRB9112053SMdv 1 subsections (a) and (b) of Section 201 of this Act, minus 2 deposits into the Income Tax Refund Fund, the Department 3 shall deposit 1.475% into the Income Tax Surcharge Local 4 Government Distributive Fund in the State Treasury. 5 (Source: P.A. 90-613, eff. 7-9-98; 90-655, eff. 7-30-98; 6 91-212, eff. 7-20-99; 91-239, eff. 1-1-00; revised 9-28-99.) 7 Section 99. Effective date. This Act takes effect upon 8 becoming law.