SB3643 103RD GENERAL ASSEMBLY

LRB103 37929 AWJ 68061 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3643

Introduced 2/9/2024, by Sen. Willie Preston

SYNOPSIS AS INTRODUCED:

230 ILCS 40/60
230 ILCS 40/75
30 ILCS 105/5.1015 new

Amends the Video Gaming Act. Provides that the tax collected under the Act from terminal income generated in municipalities with a population greater than or equal to 2,000,000 shall be deposited into the Capital Projects Fund and into the Local Government with Greater than 2,000,000 Residents Video Gaming Distributive Fund (rather than deposited into the Capital Projects Fund and into the Local Government Video Gaming Distributive Fund). Makes conforming changes. Amends the State Finance Act to create the Local Government with Greater than 2,000,000 Residents Video Gaming Distributive Fund. Effective immediately.

A BILL FOR

AN ACT concerning gaming.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Video Gaming Act is amended by changing Sections 60 and 75 as follows:

(230 ILCS 40/60)

Sec. 60. Imposition and distribution of tax.

(a) A tax of 30% is imposed on net terminal income and shall be collected by the Board.

(a-5) Of the tax collected under this subsection (a) from terminal income generated in municipalities with a population less than 2,000,000 and counties, five-sixths shall be deposited into the Capital Projects Fund and one-sixth shall be deposited into the Local Government Video Gaming Distributive Fund.

(a-10) Of the tax collected under subsection (a) from terminal income generated in municipalities with a population greater than or equal to 2,000,000, eleven-fifteenths shall be deposited into the Capital Projects Fund and four-fifteenths shall be deposited into the Local Government with Greater than 2,000,000 Residents Video Gaming Distributive Fund.

(b) Beginning on July 1, 2019, an additional tax of 3% is imposed on net terminal income and shall be collected by the Board.

Beginning on July 1, 2020, an additional tax of 1% is imposed on net terminal income and shall be collected by the Board.

The tax collected under this subsection (b) shall be deposited into the Capital Projects Fund.

(c) Revenues generated from the play of video gaming terminals shall be deposited by the terminal operator, who is responsible for tax payments, in a specially created, separate bank account maintained by the video gaming terminal operator to allow for electronic fund transfers of moneys for tax payment.

(d) Each licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, and licensed veterans establishment shall maintain an adequate video gaming fund, with the amount to be determined by the Board.

(e) The State's percentage of net terminal income shall be reported and remitted to the Board within 15 days after the 15th day of each month and within 15 days after the end of each month by the video terminal operator. A video terminal operator who falsely reports or fails to report the amount due required by this Section is guilty of a Class 4 felony and is subject to termination of his or her license by the Board. Each video terminal operator shall keep a record of net terminal income in such form as the Board may require. All payments not remitted when due shall be paid together with a penalty assessment on the unpaid balance at a rate of 1.5% per month.

(Source: P.A. 101-31, eff. 6-28-19.)

(230 ILCS 40/75)

Sec. 75. Revenue sharing; Local Government Video Gaming Distributive Fund.

(a) As soon as may be after the first day of each month, the Department of Revenue shall allocate among those municipalities with a population less than 2,000,000 and counties of this State that have not prohibited video gaming pursuant to Section 27 or Section 70 the amount available in the Local Government Video Gaming Distributive Fund, a special fund in the State Treasury, as provided in Section 60. The Department shall then certify such allocations to the State Comptroller, who shall pay over to those eligible municipalities and counties the respective amounts allocated to them. The amount of such funds allocable to each such municipality and county shall be in proportion to the tax revenue generated from video gaming within the eligible municipality or county compared to the tax revenue generated from video gaming Statewide.

(a-5) As soon as may be after the first day of each month, the Department of Revenue shall allocate among those municipalities of this State with a population greater than or equal to 2,000,000 that have not prohibited video gaming pursuant to Section 27 or 70 the amount available in the Local Government with Greater than 2,000,000 Residents Video Gaming Distributive Fund, a special fund that is created in the State treasury, as provided in Section 60. The Department shall then certify such allocations to the State Comptroller, who shall pay over to those eligible municipalities the respective amount allocated.

(b) The amounts allocated and paid to a municipality or county of this State pursuant to the provisions of this Section may be used for any general corporate purpose authorized for that municipality or county.

(c) Upon determination by the Department that an amount has been paid pursuant to this Section in excess of the amount to which the county or municipality receiving such payment was entitled, the county or municipality shall, upon demand by the Department, repay such amount. If such repayment is not made within a reasonable time, the Department shall withhold from future payments an amount equal to such overpayment. The Department shall redistribute the amount of such payment to the county or municipality entitled thereto.

(Source: P.A. 96-34, eff. 7-13-09.)

Section 10. The State Finance Act is amended by adding Section 5.1015 as follows:

(30 ILCS 105/5.1015 new)

Sec. 5.1015. The Local Government with Greater than 2,000,000 Residents Video Gaming Distributive Fund.

Section 99. Effective date. This Act takes effect upon becoming law.