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| [ Senate Amendment 003 ] |
91_HB3939sam002
SRS91HB3939NCcbam02
1 AMENDMENT TO HOUSE BILL 3939
2 AMENDMENT NO. . Amend House Bill 3939 by replacing
3 the title with the following:
4 "AN ACT to amend the Illinois Income Tax Act by changing
5 Section 901 and adding Section 212."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Illinois Income Tax Act is amended by
9 changing Section 901 and adding Section 212 as follows:
10 (35 ILCS 5/212 new)
11 Sec. 212. Earned income tax credit.
12 (a) With respect to the federal earned income tax credit
13 allowed for the taxable year under Section 32 of the federal
14 Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
15 is entitled to a credit against the tax imposed by
16 subsections (a) and (b) of Section 201 in an amount equal to
17 5% of the federal tax credit for each taxable year beginning
18 on or after January 1, 2000 and ending on or before December
19 31, 2002.
20 For a non-resident or part-year resident, the amount of
21 the credit under this Section shall be in proportion to the
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1 amount of income attributable to this State.
2 (b) In no event shall a credit under this Section reduce
3 the taxpayer's liability to less than zero.
4 (c) This Section is repealed on June 1, 2003.
5 (35 ILCS 5/901) (from Ch. 120, par. 9-901)
6 Sec. 901. Collection Authority.
7 (a) In general.
8 The Department shall collect the taxes imposed by this
9 Act. The Department shall collect certified past due child
10 support amounts under Section 2505-650 of the Department of
11 Revenue Law (20 ILCS 2505/2505-650). Except as provided in
12 subsections (c) and (e) of this Section, money collected
13 pursuant to subsections (a) and (b) of Section 201 of this
14 Act shall be paid into the General Revenue Fund in the State
15 treasury; money collected pursuant to subsections (c) and (d)
16 of Section 201 of this Act shall be paid into the Personal
17 Property Tax Replacement Fund, a special fund in the State
18 Treasury; and money collected under Section 2505-650 of the
19 Department of Revenue Law (20 ILCS 2505/2505-650) shall be
20 paid to the State Disbursement Unit established under Section
21 10-26 of the Illinois Public Aid Code.
22 (b) Local Governmental Distributive Fund.
23 Beginning August 1, 1969, and continuing through June 30,
24 1994, the Treasurer shall transfer each month from the
25 General Revenue Fund to a special fund in the State treasury,
26 to be known as the "Local Government Distributive Fund", an
27 amount equal to 1/12 of the net revenue realized from the tax
28 imposed by subsections (a) and (b) of Section 201 of this Act
29 during the preceding month. Beginning July 1, 1994, and
30 continuing through June 30, 1995, the Treasurer shall
31 transfer each month from the General Revenue Fund to the
32 Local Government Distributive Fund an amount equal to 1/11 of
33 the net revenue realized from the tax imposed by subsections
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1 (a) and (b) of Section 201 of this Act during the preceding
2 month. Beginning July 1, 1995, the Treasurer shall transfer
3 each month from the General Revenue Fund to the Local
4 Government Distributive Fund an amount equal to 1/10 of the
5 net revenue realized from the tax imposed by subsections (a)
6 and (b) of Section 201 of the Illinois Income Tax Act during
7 the preceding month. Net revenue realized for a month shall
8 be defined as the revenue from the tax imposed by subsections
9 (a) and (b) of Section 201 of this Act which is deposited in
10 the General Revenue Fund, the Educational Assistance Fund and
11 the Income Tax Surcharge Local Government Distributive Fund
12 during the month minus the amount paid out of the General
13 Revenue Fund in State warrants during that same month as
14 refunds to taxpayers for overpayment of liability under the
15 tax imposed by subsections (a) and (b) of Section 201 of this
16 Act.
17 (c) Deposits Into Income Tax Refund Fund.
18 (1) Beginning on January 1, 1989 and thereafter,
19 the Department shall deposit a percentage of the amounts
20 collected pursuant to subsections (a) and (b)(1), (2),
21 and (3), of Section 201 of this Act into a fund in the
22 State treasury known as the Income Tax Refund Fund. The
23 Department shall deposit 6% of such amounts during the
24 period beginning January 1, 1989 and ending on June 30,
25 1989. Beginning with State fiscal year 1990 and for each
26 fiscal year thereafter, the percentage deposited into the
27 Income Tax Refund Fund during a fiscal year shall be the
28 Annual Percentage. For fiscal years 1999 through 2001,
29 the Annual Percentage shall be 7.1%. For all other
30 fiscal years, the Annual Percentage shall be calculated
31 as a fraction, the numerator of which shall be the amount
32 of refunds approved for payment by the Department during
33 the preceding fiscal year as a result of overpayment of
34 tax liability under subsections (a) and (b)(1), (2), and
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1 (3) of Section 201 of this Act plus the amount of such
2 refunds remaining approved but unpaid at the end of the
3 preceding fiscal year, the denominator of which shall be
4 the amounts which will be collected pursuant to
5 subsections (a) and (b)(1), (2), and (3) of Section 201
6 of this Act during the preceding fiscal year. The
7 Director of Revenue shall certify the Annual Percentage
8 to the Comptroller on the last business day of the fiscal
9 year immediately preceding the fiscal year for which it
10 is to be effective.
11 (2) Beginning on January 1, 1989 and thereafter,
12 the Department shall deposit a percentage of the amounts
13 collected pursuant to subsections (a) and (b)(6), (7),
14 and (8), (c) and (d) of Section 201 of this Act into a
15 fund in the State treasury known as the Income Tax Refund
16 Fund. The Department shall deposit 18% of such amounts
17 during the period beginning January 1, 1989 and ending on
18 June 30, 1989. Beginning with State fiscal year 1990 and
19 for each fiscal year thereafter, the percentage deposited
20 into the Income Tax Refund Fund during a fiscal year
21 shall be the Annual Percentage. For fiscal years 1999,
22 2000, and 2001, the Annual Percentage shall be 19%. For
23 all other fiscal years, the Annual Percentage shall be
24 calculated as a fraction, the numerator of which shall be
25 the amount of refunds approved for payment by the
26 Department during the preceding fiscal year as a result
27 of overpayment of tax liability under subsections (a) and
28 (b)(6), (7), and (8), (c) and (d) of Section 201 of this
29 Act plus the amount of such refunds remaining approved
30 but unpaid at the end of the preceding fiscal year, the
31 denominator of which shall be the amounts which will be
32 collected pursuant to subsections (a) and (b)(6), (7),
33 and (8), (c) and (d) of Section 201 of this Act during
34 the preceding fiscal year. The Director of Revenue shall
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1 certify the Annual Percentage to the Comptroller on the
2 last business day of the fiscal year immediately
3 preceding the fiscal year for which it is to be
4 effective.
5 (3) The Comptroller shall order transferred and the
6 Treasurer shall transfer from the Tobacco Settlement
7 Recovery Fund to the Income Tax Refund Fund (i)
8 $35,000,000 in June, 2000, (ii) $35,000,000 in June,
9 2001, and (iii) $35,000,000 in June, 2002.
10 (d) Expenditures from Income Tax Refund Fund.
11 (1) Beginning January 1, 1989, money in the Income
12 Tax Refund Fund shall be expended exclusively for the
13 purpose of paying refunds resulting from overpayment of
14 tax liability under Section 201 of this Act and for
15 making transfers pursuant to this subsection (d).
16 (2) The Director shall order payment of refunds
17 resulting from overpayment of tax liability under Section
18 201 of this Act from the Income Tax Refund Fund only to
19 the extent that amounts collected pursuant to Section 201
20 of this Act and transfers pursuant to this subsection (d)
21 and item (3) of subsection (c) have been deposited and
22 retained in the Fund.
23 (3) As soon as possible after the end of each
24 fiscal year, the Director shall order transferred and the
25 State Treasurer and State Comptroller shall transfer from
26 the Income Tax Refund Fund to the Personal Property Tax
27 Replacement Fund an amount, certified by the Director to
28 the Comptroller, equal to the excess of the amount
29 collected pursuant to subsections (c) and (d) of Section
30 201 of this Act deposited into the Income Tax Refund Fund
31 during the fiscal year over the amount of refunds
32 resulting from overpayment of tax liability under
33 subsections (c) and (d) of Section 201 of this Act paid
34 from the Income Tax Refund Fund during the fiscal year.
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1 (4) As soon as possible after the end of each
2 fiscal year, the Director shall order transferred and the
3 State Treasurer and State Comptroller shall transfer from
4 the Personal Property Tax Replacement Fund to the Income
5 Tax Refund Fund an amount, certified by the Director to
6 the Comptroller, equal to the excess of the amount of
7 refunds resulting from overpayment of tax liability under
8 subsections (c) and (d) of Section 201 of this Act paid
9 from the Income Tax Refund Fund during the fiscal year
10 over the amount collected pursuant to subsections (c) and
11 (d) of Section 201 of this Act deposited into the Income
12 Tax Refund Fund during the fiscal year.
13 (4.5) As soon as possible after the end of fiscal
14 year 1999 and of each fiscal year thereafter, the
15 Director shall order transferred and the State Treasurer
16 and State Comptroller shall transfer from the Income Tax
17 Refund Fund to the General Revenue Fund any surplus
18 remaining in the Income Tax Refund Fund as of the end of
19 such fiscal year; excluding for fiscal years 2000, 2001,
20 and 2002 amounts attributable to transfers under item (3)
21 of subsection (c) less refunds resulting from the earned
22 income tax credit.
23 (5) This Act shall constitute an irrevocable and
24 continuing appropriation from the Income Tax Refund Fund
25 for the purpose of paying refunds upon the order of the
26 Director in accordance with the provisions of this
27 Section.
28 (e) Deposits into the Education Assistance Fund and the
29 Income Tax Surcharge Local Government Distributive Fund.
30 On July 1, 1991, and thereafter, of the amounts collected
31 pursuant to subsections (a) and (b) of Section 201 of this
32 Act, minus deposits into the Income Tax Refund Fund, the
33 Department shall deposit 7.3% into the Education Assistance
34 Fund in the State Treasury. Beginning July 1, 1991, and
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1 continuing through January 31, 1993, of the amounts collected
2 pursuant to subsections (a) and (b) of Section 201 of the
3 Illinois Income Tax Act, minus deposits into the Income Tax
4 Refund Fund, the Department shall deposit 3.0% into the
5 Income Tax Surcharge Local Government Distributive Fund in
6 the State Treasury. Beginning February 1, 1993 and
7 continuing through June 30, 1993, of the amounts collected
8 pursuant to subsections (a) and (b) of Section 201 of the
9 Illinois Income Tax Act, minus deposits into the Income Tax
10 Refund Fund, the Department shall deposit 4.4% into the
11 Income Tax Surcharge Local Government Distributive Fund in
12 the State Treasury. Beginning July 1, 1993, and continuing
13 through June 30, 1994, of the amounts collected under
14 subsections (a) and (b) of Section 201 of this Act, minus
15 deposits into the Income Tax Refund Fund, the Department
16 shall deposit 1.475% into the Income Tax Surcharge Local
17 Government Distributive Fund in the State Treasury.
18 (Source: P.A. 90-613, eff. 7-9-98; 90-655, eff. 7-30-98;
19 91-212, eff. 7-20-99; 91-239, eff. 1-1-00; revised 9-28-99.)
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.".