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90_HB0537
SEE INDEX
Amends the Illinois Income Tax Act to increase the
individual income tax rate, beginning January 1, 1997, to
3.15% and the corporate rate to 5.04%. Increases the rates
incrementally until January 1, 2000, when the rates shall be
3.55% and 5.68%, respectively. Provides for a tax credit of
10% of property taxes paid on a residence or 5% of rent
constituting real property taxes paid on rented property.
Provides for supplemental returns, additional withholding,
and increased estimated payments to reflect the additional
tax liability imposed beginning January 1, 1997. Provides
that a portion of the tax collected attributable to the
portion of the tax rate in excess of 3% for individuals or
4.8% for corporations shall be deposited into the School
Property Tax Relief Fund. Amends the State Finance Act to
create that Fund. The Fund shall be used to assist funding
school districts. Amends the Property Tax Code to direct the
county clerk of each county to reduce the amount of the levy
for education based on the amount received from the School
Property Tax Relief Fund. Amends the School Code to require
each school district to prepare a Public District Fall
Enrollment Housing Report and to require the State Board of
Education to compute a figure representing the "statewide
dollar-per-student-enrolled" to be used in calculating the
reduction in real estate taxes. Provides for disbursement
from the School Property Tax Relief Fund. Amends the State
Revenue Sharing Act to include amounts deposited into the
School Property Tax Relief Fund as net revenue realized for
purposes of the Local Government Distributive Fund. Amends
the State Mandates Act to exempt this amendatory Act from any
reimbursement requirement. Effective immediately.
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1 AN ACT in relation to taxation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Finance Act is amended by adding
5 Sections 5.449 and 6z-42 as follows:
6 (30 ILCS 105/5.449 new)
7 Sec. 5.449. The School Property Tax Relief Fund.
8 (30 ILCS 105/6z-42 new)
9 Sec. 6z-42. School Property Tax Relief Fund; uses. All
10 moneys deposited into the School Property Tax Relief Fund, a
11 special fund in the State Treasury which is hereby created,
12 shall be appropriated to provide for a reduction in the
13 amount of taxes on real property extended under Division 3 of
14 Article 18 of Title 6 of the Property Tax Code for
15 educational purposes as specified in Sections 17-11 and
16 34-54.1 of the School Code and for no other purpose.
17 Distributions from the School Property Tax Relief Fund shall
18 be made under Section 18-19.5 of the School Code.
19 Section 10. The State Revenue Sharing Act is amended by
20 changing Section 1 as follows:
21 (30 ILCS 115/1) (from Ch. 85, par. 611)
22 Sec. 1. Local Government Distributive Fund. Through June
23 30, 1994, as soon as may be after the first day of each month
24 the Department of Revenue shall certify to the Treasurer an
25 amount equal to 1/12 of the net revenue realized from the tax
26 imposed by subsections (a) and (b) of Section 201 of the
27 Illinois Income Tax Act during the preceding month.
28 Beginning July 1, 1994, and continuing through June 30, 1995,
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1 as soon as may be after the first day of each month, the
2 Department of Revenue shall certify to the Treasurer an
3 amount equal to 1/11 of the net revenue realized from the tax
4 imposed by subsections (a) and (b) of Section 201 of the
5 Illinois Income Tax Act during the preceding month. Beginning
6 July 1, 1995, as soon as may be after the first day of each
7 month, the Department of Revenue shall certify to the
8 Treasurer an amount equal to 1/10 of the net revenue realized
9 from the tax imposed by subsections (a) and (b) of Section
10 201 of the Illinois Income Tax Act during the preceding
11 month. Net revenue realized for a month shall be defined as
12 the revenue from the tax imposed by subsections (a) and (b)
13 of Section 201 of the Illinois Income Tax Act which is
14 deposited in the General Revenue Fund, the Education
15 Assistance Fund, and the Income Tax Surcharge Local
16 Government Distributive Fund, and the School Property Tax
17 Relief Fund during the month minus the amount paid out of the
18 General Revenue Fund in State warrants during that same month
19 as refunds to taxpayers for overpayment of liability under
20 the tax imposed by subsections (a) and (b) of Section 201 of
21 the Illinois Income Tax Act. Upon receipt of such
22 certification, the Treasurer shall transfer from the General
23 Revenue Fund to a special fund in the State treasury, to be
24 known as the "Local Government Distributive Fund", the amount
25 shown on such certification.
26 All amounts paid into the Local Government Distributive
27 Fund in accordance with this Section and allocated pursuant
28 to this Act are appropriated on a continuing basis.
29 (Source: P.A. 88-89.)
30 Section 15. The State Mandates Act is amended by adding
31 Section 8.21 as follows:
32 (30 ILCS 805/8.21 new)
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1 Sec. 8.21. Exemption from reimbursement. Notwithstanding
2 Sections 6 and 8 of this Act, no reimbursement by the State
3 is required for the implementation of any mandate created by
4 this amendatory Act of 1997.
5 Section 20. The Illinois Income Tax Act is amended by
6 changing Sections 201, 208, 502, 701, 710, 803, and 901 and
7 adding Section 202.5 as follows:
8 (35 ILCS 5/201) (from Ch. 120, par. 2-201)
9 Sec. 201. Tax Imposed.
10 (a) In general. A tax measured by net income is hereby
11 imposed on every individual, corporation, trust and estate
12 for each taxable year ending after July 31, 1969 on the
13 privilege of earning or receiving income in or as a resident
14 of this State. Such tax shall be in addition to all other
15 occupation or privilege taxes imposed by this State or by any
16 municipal corporation or political subdivision thereof.
17 (b) Rates. The tax imposed by subsection (a) of this
18 Section shall be determined as follows:
19 (1) In the case of an individual, trust or estate,
20 for taxable years ending prior to July 1, 1989, an amount
21 equal to 2 1/2% of the taxpayer's net income for the
22 taxable year.
23 (2) In the case of an individual, trust or estate,
24 for taxable years beginning prior to July 1, 1989 and
25 ending after June 30, 1989, an amount equal to the sum of
26 (i) 2 1/2% of the taxpayer's net income for the period
27 prior to July 1, 1989, as calculated under Section 202.3,
28 and (ii) 3% of the taxpayer's net income for the period
29 after June 30, 1989, as calculated under Section 202.3.
30 (3) In the case of an individual, trust or estate,
31 for taxable years beginning after June 30, 1989 and
32 ending before January 1, 1997, an amount equal to 3% of
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1 the taxpayer's net income for the taxable year.
2 (3.5) In the case of an individual, trust, or
3 estate, (i) for taxable years beginning before January 1,
4 1997 and ending after December 31, 1996, an amount equal
5 to the sum of 3% of the taxpayer's net income for the
6 period before January 1, 1997, as calculated under
7 Section 202.5, and 3.15% of the taxpayer's net income for
8 the period after December 31, 1996 as calculated under
9 Section 202.5; (ii) for taxable years beginning before
10 January 1, 1998, and ending after December 31, 1997, an
11 amount equal to the sum of 3.15% of the taxpayer's net
12 income for the period before January 1, 1998, as
13 calculated under Section 202.5, and 3.30% of the
14 taxpayer's net income for the period after December 31,
15 1997, as calculated under Section 202.5; (iii) for
16 taxable years beginning before January 1, 1999, and
17 ending after December 31, 1998, an amount equal to the
18 sum of 3.30% of the taxpayer's net income for the period
19 before January 1, 1999, as calculated under Section 202.5
20 and 3.40% of the taxpayer's net income for the period
21 after December 31, 1998 as calculated under Section
22 202.5; and (iv) for taxable years beginning before
23 January 1, 2000, and ending after December 31, 1999, an
24 amount equal to the sum of 3.40% of the taxpayer's net
25 income for the period before January 1, 2000, as
26 calculated under Section 202.5, and 3.55% of the
27 taxpayer's net income for the period after December 31,
28 1999 as calculated under Section 202.5.
29 (3.6) In the case of an individual, trust, or
30 estate, for taxable years beginning after December 31,
31 1999, an amount equal to 3.55% of the taxpayers net
32 income for the taxable year.
33 (4) (Blank).
34 (5) (Blank).
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1 (6) In the case of a corporation, for taxable years
2 ending prior to July 1, 1989, an amount equal to 4% of
3 the taxpayer's net income for the taxable year.
4 (7) In the case of a corporation, for taxable years
5 beginning prior to July 1, 1989 and ending after June 30,
6 1989, an amount equal to the sum of (i) 4% of the
7 taxpayer's net income for the period prior to July 1,
8 1989, as calculated under Section 202.3, and (ii) 4.8% of
9 the taxpayer's net income for the period after June 30,
10 1989, as calculated under Section 202.3.
11 (8) In the case of a corporation, for taxable years
12 beginning after June 30, 1989, and ending before January
13 1, 1997, an amount equal to 4.8% of the taxpayer's net
14 income for the taxable year.
15 (9) In the case of a corporation, (i) for taxable
16 years beginning before January 1, 1997 and ending after
17 December 31, 1996, an amount equal to the sum of 4.8% of
18 the taxpayer's net income for the period before January
19 1, 1997, as calculated under Section 202.5, and 5.04% of
20 the taxpayer's net income for the period after December
21 31, 1996, as calculated under Section 202.5; (ii) for
22 taxable years beginning before January 1, 1998, and
23 ending after December 31, 1997, an amount equal to the
24 sum of 5.04% of the taxpayer's net income for the period
25 before January 1, 1998, as calculated under Section
26 202.5, and 5.28% of the taxpayer's net income for the
27 period after December 31, 1997, as calculated under
28 Section 202.5; (iii) for taxable years beginning before
29 January 1, 1999, and ending after December 31, 1998, an
30 amount equal to the sum of 5.28% of the taxpayer's net
31 income for the period before January 1, 1999, as
32 calculated under Section 202.5, and 5.44% of the
33 taxpayer's net income for the period after December 31,
34 1998, as calculated under Section 202.5; and (iv) for
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1 taxable years beginning before January 1, 2000, and
2 ending after December 31, 1999, an amount equal to the
3 sum of 5.44% of the taxpayer's net income for the period
4 before January 1, 2000, as calculated under Section
5 202.5, and 5.68% of the taxpayer's net income for the
6 period after December 31, 1999, as calculated under
7 Section 202.5.
8 (10) In the case of a corporation, for taxable
9 years beginning after December 31, 1999, an amount equal
10 to 5.68% of the taxpayer's net income for the taxable
11 year.
12 (c) Beginning on July 1, 1979 and thereafter, in
13 addition to such income tax, there is also hereby imposed the
14 Personal Property Tax Replacement Income Tax measured by net
15 income on every corporation (including Subchapter S
16 corporations), partnership and trust, for each taxable year
17 ending after June 30, 1979. Such taxes are imposed on the
18 privilege of earning or receiving income in or as a resident
19 of this State. The Personal Property Tax Replacement Income
20 Tax shall be in addition to the income tax imposed by
21 subsections (a) and (b) of this Section and in addition to
22 all other occupation or privilege taxes imposed by this State
23 or by any municipal corporation or political subdivision
24 thereof.
25 (d) Additional Personal Property Tax Replacement Income
26 Tax Rates. The personal property tax replacement income tax
27 imposed by this subsection and subsection (c) of this Section
28 in the case of a corporation, other than a Subchapter S
29 corporation, shall be an additional amount equal to 2.85% of
30 such taxpayer's net income for the taxable year, except that
31 beginning on January 1, 1981, and thereafter, the rate of
32 2.85% specified in this subsection shall be reduced to 2.5%,
33 and in the case of a partnership, trust or a Subchapter S
34 corporation shall be an additional amount equal to 1.5% of
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1 such taxpayer's net income for the taxable year.
2 (e) Investment credit. A taxpayer shall be allowed a
3 credit against the Personal Property Tax Replacement Income
4 Tax for investment in qualified property.
5 (1) A taxpayer shall be allowed a credit equal to
6 .5% of the basis of qualified property placed in service
7 during the taxable year, provided such property is placed
8 in service on or after July 1, 1984. There shall be
9 allowed an additional credit equal to .5% of the basis of
10 qualified property placed in service during the taxable
11 year, provided such property is placed in service on or
12 after July 1, 1986, and the taxpayer's base employment
13 within Illinois has increased by 1% or more over the
14 preceding year as determined by the taxpayer's employment
15 records filed with the Illinois Department of Employment
16 Security. Taxpayers who are new to Illinois shall be
17 deemed to have met the 1% growth in base employment for
18 the first year in which they file employment records with
19 the Illinois Department of Employment Security. The
20 provisions added to this Section by Public Act 85-1200
21 (and restored by Public Act 87-895) shall be construed as
22 declaratory of existing law and not as a new enactment.
23 If, in any year, the increase in base employment within
24 Illinois over the preceding year is less than 1%, the
25 additional credit shall be limited to that percentage
26 times a fraction, the numerator of which is .5% and the
27 denominator of which is 1%, but shall not exceed .5%.
28 The investment credit shall not be allowed to the extent
29 that it would reduce a taxpayer's liability in any tax
30 year below zero, nor may any credit for qualified
31 property be allowed for any year other than the year in
32 which the property was placed in service in Illinois. For
33 tax years ending on or after December 31, 1987, and on or
34 before December 31, 1988, the credit shall be allowed for
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1 the tax year in which the property is placed in service,
2 or, if the amount of the credit exceeds the tax liability
3 for that year, whether it exceeds the original liability
4 or the liability as later amended, such excess may be
5 carried forward and applied to the tax liability of the 5
6 taxable years following the excess credit years if the
7 taxpayer (i) makes investments which cause the creation
8 of a minimum of 2,000 full-time equivalent jobs in
9 Illinois, (ii) is located in an enterprise zone
10 established pursuant to the Illinois Enterprise Zone Act
11 and (iii) is certified by the Department of Commerce and
12 Community Affairs as complying with the requirements
13 specified in clause (i) and (ii) by July 1, 1986. The
14 Department of Commerce and Community Affairs shall notify
15 the Department of Revenue of all such certifications
16 immediately. For tax years ending after December 31,
17 1988, the credit shall be allowed for the tax year in
18 which the property is placed in service, or, if the
19 amount of the credit exceeds the tax liability for that
20 year, whether it exceeds the original liability or the
21 liability as later amended, such excess may be carried
22 forward and applied to the tax liability of the 5 taxable
23 years following the excess credit years. The credit shall
24 be applied to the earliest year for which there is a
25 liability. If there is credit from more than one tax year
26 that is available to offset a liability, earlier credit
27 shall be applied first.
28 (2) The term "qualified property" means property
29 which:
30 (A) is tangible, whether new or used,
31 including buildings and structural components of
32 buildings and signs that are real property, but not
33 including land or improvements to real property that
34 are not a structural component of a building such as
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1 landscaping, sewer lines, local access roads,
2 fencing, parking lots, and other appurtenances;
3 (B) is depreciable pursuant to Section 167 of
4 the Internal Revenue Code, except that "3-year
5 property" as defined in Section 168(c)(2)(A) of that
6 Code is not eligible for the credit provided by this
7 subsection (e);
8 (C) is acquired by purchase as defined in
9 Section 179(d) of the Internal Revenue Code;
10 (D) is used in Illinois by a taxpayer who is
11 primarily engaged in manufacturing, or in mining
12 coal or fluorite, or in retailing; and
13 (E) has not previously been used in Illinois
14 in such a manner and by such a person as would
15 qualify for the credit provided by this subsection
16 (e) or subsection (f).
17 (3) For purposes of this subsection (e),
18 "manufacturing" means the material staging and production
19 of tangible personal property by procedures commonly
20 regarded as manufacturing, processing, fabrication, or
21 assembling which changes some existing material into new
22 shapes, new qualities, or new combinations. For purposes
23 of this subsection (e) the term "mining" shall have the
24 same meaning as the term "mining" in Section 613(c) of
25 the Internal Revenue Code. For purposes of this
26 subsection (e), the term "retailing" means the sale of
27 tangible personal property or services rendered in
28 conjunction with the sale of tangible consumer goods or
29 commodities.
30 (4) The basis of qualified property shall be the
31 basis used to compute the depreciation deduction for
32 federal income tax purposes.
33 (5) If the basis of the property for federal income
34 tax depreciation purposes is increased after it has been
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1 placed in service in Illinois by the taxpayer, the amount
2 of such increase shall be deemed property placed in
3 service on the date of such increase in basis.
4 (6) The term "placed in service" shall have the
5 same meaning as under Section 46 of the Internal Revenue
6 Code.
7 (7) If during any taxable year, any property ceases
8 to be qualified property in the hands of the taxpayer
9 within 48 months after being placed in service, or the
10 situs of any qualified property is moved outside Illinois
11 within 48 months after being placed in service, the
12 Personal Property Tax Replacement Income Tax for such
13 taxable year shall be increased. Such increase shall be
14 determined by (i) recomputing the investment credit which
15 would have been allowed for the year in which credit for
16 such property was originally allowed by eliminating such
17 property from such computation and, (ii) subtracting such
18 recomputed credit from the amount of credit previously
19 allowed. For the purposes of this paragraph (7), a
20 reduction of the basis of qualified property resulting
21 from a redetermination of the purchase price shall be
22 deemed a disposition of qualified property to the extent
23 of such reduction.
24 (8) Unless the investment credit is extended by
25 law, the basis of qualified property shall not include
26 costs incurred after December 31, 2003, except for costs
27 incurred pursuant to a binding contract entered into on
28 or before December 31, 2003.
29 (f) Investment credit; Enterprise Zone.
30 (1) A taxpayer shall be allowed a credit against
31 the tax imposed by subsections (a) and (b) of this
32 Section for investment in qualified property which is
33 placed in service in an Enterprise Zone created pursuant
34 to the Illinois Enterprise Zone Act. For partners and for
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1 shareholders of Subchapter S corporations, there shall be
2 allowed a credit under this subsection (f) to be
3 determined in accordance with the determination of income
4 and distributive share of income under Sections 702 and
5 704 and Subchapter S of the Internal Revenue Code. The
6 credit shall be .5% of the basis for such property. The
7 credit shall be available only in the taxable year in
8 which the property is placed in service in the Enterprise
9 Zone and shall not be allowed to the extent that it would
10 reduce a taxpayer's liability for the tax imposed by
11 subsections (a) and (b) of this Section to below zero.
12 For tax years ending on or after December 31, 1985, the
13 credit shall be allowed for the tax year in which the
14 property is placed in service, or, if the amount of the
15 credit exceeds the tax liability for that year, whether
16 it exceeds the original liability or the liability as
17 later amended, such excess may be carried forward and
18 applied to the tax liability of the 5 taxable years
19 following the excess credit year. The credit shall be
20 applied to the earliest year for which there is a
21 liability. If there is credit from more than one tax year
22 that is available to offset a liability, the credit
23 accruing first in time shall be applied first.
24 (2) The term qualified property means property
25 which:
26 (A) is tangible, whether new or used,
27 including buildings and structural components of
28 buildings;
29 (B) is depreciable pursuant to Section 167 of
30 the Internal Revenue Code, except that "3-year
31 property" as defined in Section 168(c)(2)(A) of that
32 Code is not eligible for the credit provided by this
33 subsection (f);
34 (C) is acquired by purchase as defined in
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1 Section 179(d) of the Internal Revenue Code;
2 (D) is used in the Enterprise Zone by the
3 taxpayer; and
4 (E) has not been previously used in Illinois
5 in such a manner and by such a person as would
6 qualify for the credit provided by this subsection
7 (f) or subsection (e).
8 (3) The basis of qualified property shall be the
9 basis used to compute the depreciation deduction for
10 federal income tax purposes.
11 (4) If the basis of the property for federal income
12 tax depreciation purposes is increased after it has been
13 placed in service in the Enterprise Zone by the taxpayer,
14 the amount of such increase shall be deemed property
15 placed in service on the date of such increase in basis.
16 (5) The term "placed in service" shall have the
17 same meaning as under Section 46 of the Internal Revenue
18 Code.
19 (6) If during any taxable year, any property ceases
20 to be qualified property in the hands of the taxpayer
21 within 48 months after being placed in service, or the
22 situs of any qualified property is moved outside the
23 Enterprise Zone within 48 months after being placed in
24 service, the tax imposed under subsections (a) and (b) of
25 this Section for such taxable year shall be increased.
26 Such increase shall be determined by (i) recomputing the
27 investment credit which would have been allowed for the
28 year in which credit for such property was originally
29 allowed by eliminating such property from such
30 computation, and (ii) subtracting such recomputed credit
31 from the amount of credit previously allowed. For the
32 purposes of this paragraph (6), a reduction of the basis
33 of qualified property resulting from a redetermination of
34 the purchase price shall be deemed a disposition of
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1 qualified property to the extent of such reduction.
2 (g) Jobs Tax Credit; Enterprise Zone and Foreign
3 Trade Zone or Sub-Zone.
4 (1) A taxpayer conducting a trade or business in an
5 enterprise zone or a High Impact Business designated by
6 the Department of Commerce and Community Affairs
7 conducting a trade or business in a federally designated
8 Foreign Trade Zone or Sub-Zone shall be allowed a credit
9 against the tax imposed by subsections (a) and (b) of
10 this Section in the amount of $500 per eligible employee
11 hired to work in the zone during the taxable year.
12 (2) To qualify for the credit:
13 (A) the taxpayer must hire 5 or more eligible
14 employees to work in an enterprise zone or federally
15 designated Foreign Trade Zone or Sub-Zone during the
16 taxable year;
17 (B) the taxpayer's total employment within the
18 enterprise zone or federally designated Foreign
19 Trade Zone or Sub-Zone must increase by 5 or more
20 full-time employees beyond the total employed in
21 that zone at the end of the previous tax year for
22 which a jobs tax credit under this Section was
23 taken, or beyond the total employed by the taxpayer
24 as of December 31, 1985, whichever is later; and
25 (C) the eligible employees must be employed
26 180 consecutive days in order to be deemed hired for
27 purposes of this subsection.
28 (3) An "eligible employee" means an employee who
29 is:
30 (A) Certified by the Department of Commerce
31 and Community Affairs as "eligible for services"
32 pursuant to regulations promulgated in accordance
33 with Title II of the Job Training Partnership Act,
34 Training Services for the Disadvantaged or Title III
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1 of the Job Training Partnership Act, Employment and
2 Training Assistance for Dislocated Workers Program.
3 (B) Hired after the enterprise zone or
4 federally designated Foreign Trade Zone or Sub-Zone
5 was designated or the trade or business was located
6 in that zone, whichever is later.
7 (C) Employed in the enterprise zone or Foreign
8 Trade Zone or Sub-Zone. An employee is employed in
9 an enterprise zone or federally designated Foreign
10 Trade Zone or Sub-Zone if his services are rendered
11 there or it is the base of operations for the
12 services performed.
13 (D) A full-time employee working 30 or more
14 hours per week.
15 (4) For tax years ending on or after December 31,
16 1985 and prior to December 31, 1988, the credit shall be
17 allowed for the tax year in which the eligible employees
18 are hired. For tax years ending on or after December 31,
19 1988, the credit shall be allowed for the tax year
20 immediately following the tax year in which the eligible
21 employees are hired. If the amount of the credit exceeds
22 the tax liability for that year, whether it exceeds the
23 original liability or the liability as later amended,
24 such excess may be carried forward and applied to the tax
25 liability of the 5 taxable years following the excess
26 credit year. The credit shall be applied to the earliest
27 year for which there is a liability. If there is credit
28 from more than one tax year that is available to offset a
29 liability, earlier credit shall be applied first.
30 (5) The Department of Revenue shall promulgate such
31 rules and regulations as may be deemed necessary to carry
32 out the purposes of this subsection (g).
33 (6) The credit shall be available for eligible
34 employees hired on or after January 1, 1986.
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1 (h) Investment credit; High Impact Business.
2 (1) Subject to subsection (b) of Section 5.5 of the
3 Illinois Enterprise Zone Act, a taxpayer shall be allowed
4 a credit against the tax imposed by subsections (a) and
5 (b) of this Section for investment in qualified property
6 which is placed in service by a Department of Commerce
7 and Community Affairs designated High Impact Business.
8 The credit shall be .5% of the basis for such property.
9 The credit shall not be available until the minimum
10 investments in qualified property set forth in Section
11 5.5 of the Illinois Enterprise Zone Act have been
12 satisfied and shall not be allowed to the extent that it
13 would reduce a taxpayer's liability for the tax imposed
14 by subsections (a) and (b) of this Section to below zero.
15 The credit applicable to such minimum investments shall
16 be taken in the taxable year in which such minimum
17 investments have been completed. The credit for
18 additional investments beyond the minimum investment by a
19 designated high impact business shall be available only
20 in the taxable year in which the property is placed in
21 service and shall not be allowed to the extent that it
22 would reduce a taxpayer's liability for the tax imposed
23 by subsections (a) and (b) of this Section to below zero.
24 For tax years ending on or after December 31, 1987, the
25 credit shall be allowed for the tax year in which the
26 property is placed in service, or, if the amount of the
27 credit exceeds the tax liability for that year, whether
28 it exceeds the original liability or the liability as
29 later amended, such excess may be carried forward and
30 applied to the tax liability of the 5 taxable years
31 following the excess credit year. The credit shall be
32 applied to the earliest year for which there is a
33 liability. If there is credit from more than one tax
34 year that is available to offset a liability, the credit
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1 accruing first in time shall be applied first.
2 Changes made in this subdivision (h)(1) by Public
3 Act 88-670 restore changes made by Public Act 85-1182 and
4 reflect existing law.
5 (2) The term qualified property means property
6 which:
7 (A) is tangible, whether new or used,
8 including buildings and structural components of
9 buildings;
10 (B) is depreciable pursuant to Section 167 of
11 the Internal Revenue Code, except that "3-year
12 property" as defined in Section 168(c)(2)(A) of that
13 Code is not eligible for the credit provided by this
14 subsection (h);
15 (C) is acquired by purchase as defined in
16 Section 179(d) of the Internal Revenue Code; and
17 (D) is not eligible for the Enterprise Zone
18 Investment Credit provided by subsection (f) of this
19 Section.
20 (3) The basis of qualified property shall be the
21 basis used to compute the depreciation deduction for
22 federal income tax purposes.
23 (4) If the basis of the property for federal income
24 tax depreciation purposes is increased after it has been
25 placed in service in a federally designated Foreign Trade
26 Zone or Sub-Zone located in Illinois by the taxpayer, the
27 amount of such increase shall be deemed property placed
28 in service on the date of such increase in basis.
29 (5) The term "placed in service" shall have the
30 same meaning as under Section 46 of the Internal Revenue
31 Code.
32 (6) If during any taxable year ending on or before
33 December 31, 1996, any property ceases to be qualified
34 property in the hands of the taxpayer within 48 months
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1 after being placed in service, or the situs of any
2 qualified property is moved outside Illinois within 48
3 months after being placed in service, the tax imposed
4 under subsections (a) and (b) of this Section for such
5 taxable year shall be increased. Such increase shall be
6 determined by (i) recomputing the investment credit which
7 would have been allowed for the year in which credit for
8 such property was originally allowed by eliminating such
9 property from such computation, and (ii) subtracting such
10 recomputed credit from the amount of credit previously
11 allowed. For the purposes of this paragraph (6), a
12 reduction of the basis of qualified property resulting
13 from a redetermination of the purchase price shall be
14 deemed a disposition of qualified property to the extent
15 of such reduction.
16 (7) Beginning with tax years ending after December
17 31, 1996, if a taxpayer qualifies for the credit under
18 this subsection (h) and thereby is granted a tax
19 abatement and the taxpayer relocates its entire facility
20 in violation of the explicit terms and length of the
21 contract under Section 18-183 of the Property Tax Code,
22 the tax imposed under subsections (a) and (b) of this
23 Section shall be increased for the taxable year in which
24 the taxpayer relocated its facility by an amount equal to
25 the amount of credit received by the taxpayer under this
26 subsection (h).
27 (i) A credit shall be allowed against the tax imposed by
28 subsections (a) and (b) of this Section for the tax imposed
29 by subsections (c) and (d) of this Section. This credit
30 shall be computed by multiplying the tax imposed by
31 subsections (c) and (d) of this Section by a fraction, the
32 numerator of which is base income allocable to Illinois and
33 the denominator of which is Illinois base income, and further
34 multiplying the product by the tax rate imposed by
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1 subsections (a) and (b) of this Section.
2 Any credit earned on or after December 31, 1986 under
3 this subsection which is unused in the year the credit is
4 computed because it exceeds the tax liability imposed by
5 subsections (a) and (b) for that year (whether it exceeds the
6 original liability or the liability as later amended) may be
7 carried forward and applied to the tax liability imposed by
8 subsections (a) and (b) of the 5 taxable years following the
9 excess credit year. This credit shall be applied first to
10 the earliest year for which there is a liability. If there
11 is a credit under this subsection from more than one tax year
12 that is available to offset a liability the earliest credit
13 arising under this subsection shall be applied first.
14 If, during any taxable year ending on or after December
15 31, 1986, the tax imposed by subsections (c) and (d) of this
16 Section for which a taxpayer has claimed a credit under this
17 subsection (i) is reduced, the amount of credit for such tax
18 shall also be reduced. Such reduction shall be determined by
19 recomputing the credit to take into account the reduced tax
20 imposed by subsection (c) and (d). If any portion of the
21 reduced amount of credit has been carried to a different
22 taxable year, an amended return shall be filed for such
23 taxable year to reduce the amount of credit claimed.
24 (j) Training expense credit. Beginning with tax years
25 ending on or after December 31, 1986, a taxpayer shall be
26 allowed a credit against the tax imposed by subsection (a)
27 and (b) under this Section for all amounts paid or accrued,
28 on behalf of all persons employed by the taxpayer in Illinois
29 or Illinois residents employed outside of Illinois by a
30 taxpayer, for educational or vocational training in
31 semi-technical or technical fields or semi-skilled or skilled
32 fields, which were deducted from gross income in the
33 computation of taxable income. The credit against the tax
34 imposed by subsections (a) and (b) shall be 1.6% of such
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1 training expenses. For partners and for shareholders of
2 subchapter S corporations, there shall be allowed a credit
3 under this subsection (j) to be determined in accordance with
4 the determination of income and distributive share of income
5 under Sections 702 and 704 and subchapter S of the Internal
6 Revenue Code.
7 Any credit allowed under this subsection which is unused
8 in the year the credit is earned may be carried forward to
9 each of the 5 taxable years following the year for which the
10 credit is first computed until it is used. This credit shall
11 be applied first to the earliest year for which there is a
12 liability. If there is a credit under this subsection from
13 more than one tax year that is available to offset a
14 liability the earliest credit arising under this subsection
15 shall be applied first.
16 (k) Research and development credit.
17 Beginning with tax years ending after July 1, 1990, a
18 taxpayer shall be allowed a credit against the tax imposed by
19 subsections (a) and (b) of this Section for increasing
20 research activities in this State. The credit allowed
21 against the tax imposed by subsections (a) and (b) shall be
22 equal to 6 1/2% of the qualifying expenditures for increasing
23 research activities in this State.
24 For purposes of this subsection, "qualifying
25 expenditures" means the qualifying expenditures as defined
26 for the federal credit for increasing research activities
27 which would be allowable under Section 41 of the Internal
28 Revenue Code and which are conducted in this State,
29 "qualifying expenditures for increasing research activities
30 in this State" means the excess of qualifying expenditures
31 for the taxable year in which incurred over qualifying
32 expenditures for the base period, "qualifying expenditures
33 for the base period" means the average of the qualifying
34 expenditures for each year in the base period, and "base
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1 period" means the 3 taxable years immediately preceding the
2 taxable year for which the determination is being made.
3 Any credit in excess of the tax liability for the taxable
4 year may be carried forward. A taxpayer may elect to have the
5 unused credit shown on its final completed return carried
6 over as a credit against the tax liability for the following
7 5 taxable years or until it has been fully used, whichever
8 occurs first.
9 If an unused credit is carried forward to a given year
10 from 2 or more earlier years, that credit arising in the
11 earliest year will be applied first against the tax liability
12 for the given year. If a tax liability for the given year
13 still remains, the credit from the next earliest year will
14 then be applied, and so on, until all credits have been used
15 or no tax liability for the given year remains. Any
16 remaining unused credit or credits then will be carried
17 forward to the next following year in which a tax liability
18 is incurred, except that no credit can be carried forward to
19 a year which is more than 5 years after the year in which the
20 expense for which the credit is given was incurred.
21 Unless extended by law, the credit shall not include
22 costs incurred after December 31, 1999, except for costs
23 incurred pursuant to a binding contract entered into on or
24 before December 31, 1999.
25 (Source: P.A. 88-45; 88-89; 88-141; 88-547, eff. 6-30-94;
26 88-670, eff. 12-2-94; 89-235, eff. 8-4-95; 89-519, eff.
27 7-18-96; 89-591, eff. 8-1-96.)
28 (35 ILCS 5/202.5 new)
29 Sec. 202.5. Net income attributable to the period before
30 January 1, 1997, 1998, 1999, and 2000, as the case may be,
31 and net income attributable to the period after December 31,
32 1996, 1997, 1998, and 1999, as the case may be.
33 (a) In general. With respect to the taxable year of a
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1 taxpayer beginning before January 1, 1997, 1998, 1999, or
2 2000, as the case may be, and ending after December 31, 1996,
3 1997, 1998, or 1999, as the case may be, net income for the
4 period before January 1, 1997, 1998, 1999, or 2000, as the
5 case may be, is the amount that bears the same ratio to the
6 taxpayer's net income for the entire taxable year as the
7 number of days in the year before January 1, 1997, 1998,
8 1999, or 2000, as the case may be, bears to the total number
9 of days in that year, and the net income for the period after
10 December 31, 1996, 1997, 1998, or 1999, as the case may be,
11 is the amount that bears the same ratio to the taxpayer's net
12 income for the entire taxable year as the number of days in
13 the year after December 31, 1996, 1997, 1998, or 1999, as the
14 case may be, bears to the total number of days in the year,
15 as the case may be.
16 (b) Election to attribute income and deduction items
17 specifically to the respective portions of a taxable year
18 before January 1, 1997, 1998, 1999, or 2000, as the case may
19 be, and after December 31, 1996, 1997, 1998, or 1999, as the
20 case may be. In the case of a taxpayer with a taxable year
21 beginning before January 1, 1997, 1998, 1999, or 2000, as the
22 case may be, and ending after December 31, 1996, 1997, 1998,
23 or 1999, as the case may be, the taxpayer may elect, in lieu
24 of the procedure established in subsection (a) of this
25 Section, to determine net income on a specific accounting
26 basis for the 2 portions of his taxable year:
27 (i) from the beginning of the taxable year through
28 December 31, 1996, 1997, 1998, or 1999, as the case may
29 be, and
30 (ii) from January 1, 1997, 1998, 1999, or 2000, as
31 the case may be, through the end of the taxable year.
32 If the taxpayer elects specific accounting under this
33 subsection, there shall be taken into account in computing
34 base income for each of the 2 portions of the taxable year
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1 only those items earned, received, paid, incurred, or accrued
2 in each respective period. The standard exemption provided
3 by Section 204 shall be divided between the respective
4 periods in amounts that bear the same ratio to the total
5 exemption allowable under Section 204 (determined without
6 regard to this Section) as the total number of days in each
7 respective period bears to the total number of days in the
8 taxable year. The election provided by this subsection shall
9 be made in the manner and at the time the Department may by
10 forms or rules prescribe, but shall be made not later than
11 the due date (including any extensions thereof) for the
12 filing of the return for the taxable year, and shall be
13 irrevocable.
14 (Source: P.A. 86-18; 87-17.)
15 (35 ILCS 5/208) (from Ch. 120, par. 2-208)
16 Sec. 208. Tax credit for residential real property taxes.
17 For Beginning with tax years ending on or after December 31,
18 1991, but before December 31, 1997, every individual taxpayer
19 shall be entitled to a tax credit equal to 5% of real
20 property taxes paid by such taxpayer during the taxable year
21 on the principal residence of the taxpayer. In the case of
22 multi-unit or multi-use structures and farm dwellings, the
23 taxes on the taxpayer's principal residence shall be that
24 portion of the total taxes which is attributable to such
25 principal residence.
26 Beginning with tax years ending on or after December 31,
27 1997, every individual taxpayer is entitled to a tax credit
28 for real property taxes paid upon the principal place of
29 residence of the individual taxpayer in the manner and in the
30 amount as follows:
31 (1) In the case of property owned by the taxpayer
32 and used as the taxpayer's principal residence, the
33 taxpayer is entitled to a tax credit equal to 10% of the
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1 first $3,000 of of real property taxes paid by the
2 taxpayer during the taxable year on that property. In the
3 case of multi-unit or multi-use structures and farm
4 dwellings, the taxes on the taxpayer's principal
5 residence shall be that portion of the total taxes that
6 is attributable to the principal residence.
7 (2) In the case of property rented by the taxpayer
8 and used as the taxpayer's principal residence, the
9 taxpayer is entitled to a tax credit, not to exceed $200,
10 equal to 5% of rent constituting real property taxes paid
11 by the taxpayer during the taxable year on the principal
12 residence of the taxpayer. "Rent constituting real
13 property taxes paid by the taxpayer" means 17% of the
14 contract rent paid by the taxpayer under a lease for the
15 taxpayer's principal residence, established under the
16 procedures and forms that the Director of the Department
17 of Revenue shall from time to time adopt and enforce. In
18 the case of multi-unit or multi-use structures and farm
19 dwellings, the taxes on the taxpayer's principal
20 residence shall be that portion of the total taxes that
21 is attributable to the principal residence.
22 This Section is exempt from the provisions of Section
23 250.
24 (Source: P.A. 87-17.)
25 (35 ILCS 5/502) (from Ch. 120, par. 5-502)
26 Sec. 502. Returns and notices.
27 (a) In general. A return with respect to the taxes
28 imposed by this Act shall be made by every person for any
29 taxable year:
30 (1) For which such person is liable for a tax
31 imposed by this Act, or
32 (2) In the case of a resident or in the case of a
33 corporation which is qualified to do business in this
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1 State, for which such person is required to make a
2 federal income tax return, regardless of whether such
3 person is liable for a tax imposed by this Act, unless
4 such person has an Illinois base income of $1,000 or less
5 and is either claimed as a dependent on another person's
6 tax return under the Internal Revenue Code of 1986, or is
7 claimed as a dependent on another person's tax return
8 under this Act.
9 (b) Fiduciaries and receivers.
10 (1) Decedents. If an individual is deceased, any
11 return or notice required of such individual under this
12 Act shall be made by his executor, administrator, or
13 other person charged with the property of such decedent.
14 (2) Individuals under a disability. If an
15 individual is unable to make a return or notice required
16 under this Act, the return or notice required of such
17 individual shall be made by his duly authorized agent,
18 guardian, fiduciary or other person charged with the care
19 of the person or property of such individual.
20 (3) Estates and trusts. Returns or notices required
21 of an estate or a trust shall be made by the fiduciary
22 thereof.
23 (4) Receivers, trustees and assignees for
24 corporations. In a case where a receiver, trustee in
25 bankruptcy, or assignee, by order of a court of competent
26 jurisdiction, by operation of law, or otherwise, has
27 possession of or holds title to all or substantially all
28 the property or business of a corporation, whether or not
29 such property or business is being operated, such
30 receiver, trustee, or assignee shall make the returns and
31 notices required of such corporation in the same manner
32 and form as corporations are required to make such
33 returns and notices.
34 (c) Joint returns by husband and wife.
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1 (1) Except as provided in paragraph (3), if a
2 husband and wife file a joint federal income tax return
3 for a taxable year they shall file a joint return under
4 this Act for such taxable year and their liabilities
5 shall be joint and several, but if the federal income tax
6 liability of either spouse is determined on a separate
7 federal income tax return, they shall file separate
8 returns under this Act.
9 (2) If neither spouse is required to file a federal
10 income tax return and either or both are required to file
11 a return under this Act, they may elect to file separate
12 or joint returns and pursuant to such election their
13 liabilities shall be separate or joint and several.
14 (3) If either husband or wife is a resident and the
15 other is a nonresident, they shall file separate returns
16 in this State on such forms as may be required by the
17 Department in which event their tax liabilities shall be
18 separate; but they may elect to determine their joint net
19 income and file a joint return as if both were residents
20 and in such case, their liabilities shall be joint and
21 several.
22 (4) However, an innocent spouse shall be relieved
23 of liability for tax (including interest and penalties)
24 for any taxable year for which a joint return has been
25 made, upon submission of proof that the Internal Revenue
26 Service has made a determination under Section 6013(e) of
27 the Internal Revenue Code, for the same taxable year,
28 which determination relieved the spouse from liability
29 for federal income taxes. If there is no federal income
30 tax liability at issue for the same taxable year, the
31 Department shall rely on the provisions of Section
32 6013(e) to determine whether the person requesting
33 innocent spouse abatement of tax, penalty, and interest
34 is entitled to that relief.
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1 (d) Partnerships. Every partnership having any base
2 income allocable to this State in accordance with section
3 305(c) shall retain information concerning all items of
4 income, gain, loss and deduction; the names and addresses of
5 all of the partners, or names and addresses of members of a
6 limited liability company, or other persons who would be
7 entitled to share in the base income of the partnership if
8 distributed; the amount of the distributive share of each;
9 and such other pertinent information as the Department may by
10 forms or regulations prescribe. The partnership shall make
11 that information available to the Department when requested
12 by the Department.
13 (e) For taxable years ending on or after December 31,
14 1985, and before December 31, 1993, taxpayers that are
15 corporations (other than Subchapter S corporations) having
16 the same taxable year and that are members of the same
17 unitary business group may elect to be treated as one
18 taxpayer for purposes of any original return, amended return
19 which includes the same taxpayers of the unitary group which
20 joined in the election to file the original return,
21 extension, claim for refund, assessment, collection and
22 payment and determination of the group's tax liability under
23 this Act. This subsection (e) does not permit the election to
24 be made for some, but not all, of the purposes enumerated
25 above. For taxable years ending on or after December 31,
26 1987, corporate members (other than Subchapter S
27 corporations) of the same unitary business group making this
28 subsection (e) election are not required to have the same
29 taxable year.
30 For taxable years ending on or after December 31, 1993,
31 taxpayers that are corporations (other than Subchapter S
32 corporations) and that are members of the same unitary
33 business group shall be treated as one taxpayer for purposes
34 of any original return, amended return which includes the
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1 same taxpayers of the unitary group which joined in filing
2 the original return, extension, claim for refund, assessment,
3 collection and payment and determination of the group's tax
4 liability under this Act.
5 (f) The Department may promulgate regulations to permit
6 nonresident individual partners of the same partnership,
7 nonresident Subchapter S corporation shareholders of the same
8 Subchapter S corporation, and nonresident individuals
9 transacting an insurance business in Illinois under a Lloyds
10 plan of operation, and nonresident individual members of the
11 same limited liability company that is treated as a
12 partnership under Section 1501 (a)(16) of this Act, to file
13 composite individual income tax returns reflecting the
14 composite income of such individuals allocable to Illinois
15 and to make composite individual income tax payments. The
16 Department may by regulation also permit such composite
17 returns to include the income tax owed by Illinois residents
18 attributable to their income from partnerships, Subchapter S
19 corporations, insurance businesses organized under a Lloyds
20 plan of operation, or limited liability companies that are
21 treated as partnership under Section 1501 (a)(16) of this
22 Act, in which case such Illinois residents will be permitted
23 to claim credits on their individual returns for their shares
24 of the composite tax payments. This subsection (f) applies
25 to taxable years ending on or after December 31, 1987.
26 (g) The Department may adopt rules to authorize the
27 electronic filing of any return required to be filed under
28 this Section.
29 (h) Supplemental returns for taxable years ending during
30 1997. If a taxpayer files a return for a taxable year ending
31 during 1997 and if that return does not reflect the
32 additional liability resulting from the increased rates that
33 are effective under subsection (b) of Section 201 between
34 January 1, 1997, and December 31, 1997, then the taxpayer
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1 must file a supplemental return assessing the additional
2 liability within the time period specified in rules
3 promulgated by the Department.
4 (Source: P.A. 87-879; 87-1246; 88-195; 88-480; 88-669, eff.
5 11-29-94; 88-670, eff. 12-2-94.)
6 (35 ILCS 5/701) (from Ch. 120, par. 7-701)
7 Sec. 701. Requirement and Amount of Withholding.
8 (a) In General.
9 Every employer maintaining an office or transacting
10 business within this State and required under the provisions
11 of the Internal Revenue Code to withhold a tax on:
12 (1) compensation paid in this State (as determined
13 under Section 304 (a) (2) (B) to an individual; or
14 (2) payments described in subsection (b) shall
15 deduct and withhold from such compensation for each
16 payroll period (as defined in Section 3401 of the
17 Internal Revenue Code) an amount equal to the amount by
18 which such individual's compensation exceeds the
19 proportionate part of this withholding exemption
20 (computed as provided in Section 702) attributable to the
21 payroll period for which such compensation is payable
22 multiplied by a percentage equal to the percentage tax
23 rate for individuals provided in subsection (b) of
24 Section 201.
25 In addition to any other amounts required to be withheld
26 under this Section, every such employer shall withhold from
27 such compensation for each such payroll period ending after
28 June 30, 1997, and on or before December 31, 1997, an amount
29 equal to .15% of the amount by which the individual's
30 compensation exceeds the proportionate part of his or her
31 withholding exemption (computed as provided in Section 702)
32 attributable to the payroll period for which the compensation
33 is payable.
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1 (b) Payment to Residents.
2 Any payment (including compensation) to a resident by a
3 payor maintaining an office or transacting business within
4 this State and on which withholding of tax is required under
5 the provisions of the Internal Revenue Code shall be deemed
6 to be compensation paid in this State by an employer to an
7 employee for the purposes of Article 7 and Section 601 (b)
8 (1) to the extent such payment is included in the recipient's
9 base income and not subjected to withholding by another
10 state.
11 (c) Special Definitions.
12 Withholding shall be considered required under the
13 provisions of the Internal Revenue Code to the extent the
14 Internal Revenue Code either requires withholding or allows
15 for voluntary withholding the payor and recipient have
16 entered into such a voluntary withholding agreement. For the
17 purposes of Article 7 and Section 1002 (c) the term
18 "employer" includes any payor who is required to withhold tax
19 pursuant to this Section.
20 (d) Reciprocal Exemption.
21 The Director may enter into an agreement with the taxing
22 authorities of any state which imposes a tax on or measured
23 by income to provide that compensation paid in such state to
24 residents of this State shall be exempt from withholding of
25 such tax; in such case, any compensation paid in this State
26 to residents of such state shall be exempt from withholding.
27 (e) Notwithstanding subsection (a) (2) of this Section,
28 no withholding is required on payments for which withholding
29 is required under Section 3405 or 3406 of the Internal
30 Revenue Code of 1954.
31 (Source: P.A. 85-731; 86-1475.)
32 (35 ILCS 5/710) (from Ch. 120, par. 7-710)
33 Sec. 710. Withholding from lottery winnings.
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1 (a) In General. Any person making a payment to a
2 resident or nonresident of winnings under the Illinois
3 Lottery Law and not required to withhold Illinois income tax
4 from such payment under Subsection (b) of Section 701 of this
5 Act because those winnings are not subject to Federal income
6 tax withholding, must withhold Illinois income tax from such
7 payment at a rate equal to the percentage tax rate for
8 individuals provided in subsection (b) of Section 201,
9 provided that withholding is not required if such payment of
10 winnings is less than $1,000.
11 In addition to any other amounts required to be withheld
12 under this Section, every such person shall withhold from any
13 payment made after June 30, 1997, and on or before December
14 31, 1997, an amount equal to .15% of the amount of the
15 payment.
16 (b) Credit for taxes withheld. Any amount withheld
17 under Subsection (a) shall be a credit against the Illinois
18 income tax liability of the person to whom the payment of
19 winnings was made for the taxable year in which that person
20 incurred an Illinois income tax liability with respect to
21 those winnings.
22 (Source: P.A. 85-731.)
23 (35 ILCS 5/803) (from Ch. 120, par. 8-803)
24 Sec. 803. Payment of Estimated Tax.
25 (a) Every taxpayer other than an estate, trust,
26 partnership, Subchapter S corporation or farmer is required
27 to pay estimated tax for the taxable year, in such amount and
28 with such forms as the Department shall prescribe, if the
29 amount payable as estimated tax can reasonably be expected to
30 be more than $250 or $400 for corporations.
31 (b) Estimated tax defined. The term "estimated tax"
32 means the excess of:
33 (1) The amount which the taxpayer estimates to be his
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1 tax under this Act for the taxable year, over
2 (2) The amount which he estimates to be the sum of any
3 amounts to be withheld on account of or credited against such
4 tax.
5 (c) Joint payment. If they are eligible to do so for
6 federal tax purposes, a husband and wife may pay estimated
7 tax as if they were one taxpayer, in which case the liability
8 with respect to the estimated tax shall be joint and several.
9 If a joint payment is made but the husband and wife elect to
10 determine their taxes under this Act separately, the
11 estimated tax for such year may be treated as the estimated
12 tax of either husband or wife, or may be divided between
13 them, as they may elect.
14 (d) There shall be paid 4 equal installments of
15 estimated tax for each taxable year, payable as follows:
16 Required Installment: Due Date:
17 1st April 15
18 2nd June 15
19 3rd September 15
20 4th Individuals: January 15 of the
21 following taxable year
22 Corporations: December 15
23 (e) Farmers. An individual, having gross income from
24 farming for the taxable year which is at least 2/3 of his
25 total estimated gross income for such year.
26 (f) Application to short taxable years. The application
27 of this section to taxable years of less than 12 months shall
28 be in accordance with regulations prescribed by the
29 Department.
30 (g) Fiscal years. In the application of this section to
31 the case of a taxable year beginning on any date other than
32 January 1, there shall be substituted, for the months
33 specified in subsections (d) and (e), the months which
34 correspond thereto.
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1 (h) Installments paid in advance. Any installment of
2 estimated tax may be paid before the date prescribed for its
3 payment.
4 (i) Amended declarations. After June 30, 1997, the
5 taxpayer shall recompute and pay with his or her next
6 installment the estimated tax based upon the tax attributable
7 to the increase in the tax rates provided in this amendatory
8 Act of 1997.
9 The changes in this Section made by this amendatory Act
10 of 1985 shall apply to taxable years ending on or after
11 January 1, 1986.
12 (Source: P.A. 86-678.)
13 (35 ILCS 5/901) (from Ch. 120, par. 9-901)
14 Sec. 901. Collection Authority.
15 (a) In general.
16 The Department shall collect the taxes imposed by this
17 Act. The Department shall collect certified past due child
18 support amounts under Section 39b52 of the Civil
19 Administrative Code of Illinois. Except as provided in
20 subsections (c) and (e) of this Section, money collected
21 pursuant to subsections (a) and (b) of Section 201 of this
22 Act shall be paid into the General Revenue Fund in the State
23 treasury; money collected pursuant to subsections (c) and (d)
24 of Section 201 of this Act shall be paid into the Personal
25 Property Tax Replacement Fund, a special fund in the State
26 Treasury; and money collected under Section 39b52 of the
27 Civil Administrative Code of Illinois shall be paid into the
28 Child Support Enforcement Trust Fund, a special fund outside
29 the State Treasury.
30 (b) Local Governmental Distributive Fund.
31 Beginning August 1, 1969, and continuing through June 30,
32 1994, the Treasurer shall transfer each month from the
33 General Revenue Fund to a special fund in the State treasury,
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1 to be known as the "Local Government Distributive Fund", an
2 amount equal to 1/12 of the net revenue realized from the tax
3 imposed by subsections (a) and (b) of Section 201 of this Act
4 during the preceding month. Beginning July 1, 1994, and
5 continuing through June 30, 1995, the Treasurer shall
6 transfer each month from the General Revenue Fund to the
7 Local Government Distributive Fund an amount equal to 1/11 of
8 the net revenue realized from the tax imposed by subsections
9 (a) and (b) of Section 201 of this Act during the preceding
10 month. Beginning July 1, 1995, the Treasurer shall transfer
11 each month from the General Revenue Fund to the Local
12 Government Distributive Fund an amount equal to 1/10 of the
13 net revenue realized from the tax imposed by subsections (a)
14 and (b) of Section 201 of the Illinois Income Tax Act during
15 the preceding month. Net revenue realized for a month shall
16 be defined as the revenue from the tax imposed by subsections
17 (a) and (b) of Section 201 of this Act which is deposited in
18 the General Revenue Fund, the Educational Assistance Fund,
19 and the Income Tax Surcharge Local Government Distributive
20 Fund, and the School Property Tax Relief Fund during the
21 month minus the amount paid out of the General Revenue Fund
22 in State warrants during that same month as refunds to
23 taxpayers for overpayment of liability under the tax imposed
24 by subsections (a) and (b) of Section 201 of this Act.
25 (c) Deposits Into Income Tax Refund Fund.
26 (1) Beginning on January 1, 1989 and thereafter,
27 the Department shall deposit a percentage of the amounts
28 collected pursuant to subsections (a) and (b)(1), (2),
29 and (3), of Section 201 of this Act into a fund in the
30 State treasury known as the Income Tax Refund Fund. The
31 Department shall deposit 6% of such amounts during the
32 period beginning January 1, 1989 and ending on June 30,
33 1989. Beginning with State fiscal year 1990 and for each
34 fiscal year thereafter, the percentage deposited into the
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1 Income Tax Refund Fund during a fiscal year shall be the
2 Annual Percentage. The Annual Percentage shall be
3 calculated as a fraction, the numerator of which shall be
4 the amount of refunds approved for payment by the
5 Department during the preceding fiscal year as a result
6 of overpayment of tax liability under subsections (a) and
7 (b)(1), (2), and (3) of Section 201 of this Act plus the
8 amount of such refunds remaining approved but unpaid at
9 the end of the preceding fiscal year minus any surplus
10 which remains on deposit in the Income Tax Refund Fund at
11 the end of the preceding year, the denominator of which
12 shall be the amounts which will be collected pursuant to
13 subsections (a) and (b)(1), (2), and (3) of Section 201
14 of this Act during the preceding fiscal year. The
15 Director of Revenue shall certify the Annual Percentage
16 to the Comptroller on the last business day of the fiscal
17 year immediately preceding the fiscal year for which is
18 it to be effective.
19 (2) Beginning on January 1, 1989 and thereafter,
20 the Department shall deposit a percentage of the amounts
21 collected pursuant to subsections (a) and (b)(6), (7),
22 and (8), (c) and (d) of Section 201 of this Act into a
23 fund in the State treasury known as the Income Tax Refund
24 Fund. The Department shall deposit 18% of such amounts
25 during the period beginning January 1, 1989 and ending on
26 June 30, 1989. Beginning with State fiscal year 1990 and
27 for each fiscal year thereafter, the percentage deposited
28 into the Income Tax Refund Fund during a fiscal year
29 shall be the Annual Percentage. The Annual Percentage
30 shall be calculated as a fraction, the numerator of which
31 shall be the amount of refunds approved for payment by
32 the Department during the preceding fiscal year as a
33 result of overpayment of tax liability under subsections
34 (a) and (b)(6), (7), and (8), (c) and (d) of Section 201
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1 of this Act plus the amount of such refunds remaining
2 approved but unpaid at the end of the preceding fiscal
3 year, the denominator of which shall be the amounts which
4 will be collected pursuant to subsections (a) and (b)(6),
5 (7), and (8), (c) and (d) of Section 201 of this Act
6 during the preceding fiscal year. The Director of
7 Revenue shall certify the Annual Percentage to the
8 Comptroller on the last business day of the fiscal year
9 immediately preceding the fiscal year for which it is to
10 be effective.
11 (d) Expenditures from Income Tax Refund Fund.
12 (1) Beginning January 1, 1989, money in the Income
13 Tax Refund Fund shall be expended exclusively for the
14 purpose of paying refunds resulting from overpayment of
15 tax liability under Section 201 of this Act and for
16 making transfers pursuant to this subsection (d).
17 (2) The Director shall order payment of refunds
18 resulting from overpayment of tax liability under Section
19 201 of this Act from the Income Tax Refund Fund only to
20 the extent that amounts collected pursuant to Section 201
21 of this Act and transfers pursuant to this subsection (d)
22 have been deposited and retained in the Fund.
23 (3) On the last business day of each fiscal year,
24 the Director shall order transferred and the State
25 Treasurer and State Comptroller shall transfer from the
26 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) On the last business day of each fiscal year,
2 the Director shall order transferred and the State
3 Treasurer and State Comptroller shall transfer from the
4 Personal Property Tax Replacement Fund to the Income Tax
5 Refund Fund an amount, certified by the Director to the
6 Comptroller, equal to the excess of the amount of refunds
7 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 (5) This Act shall constitute an irrevocable and
14 continuing appropriation from the Income Tax Refund Fund
15 for the purpose of paying refunds upon the order of the
16 Director in accordance with the provisions of this
17 Section.
18 (e) Deposits into the Education Assistance Fund and the
19 Income Tax Surcharge Local Government Distributive Fund.
20 (f) Deposits into the School Property Tax Relief Fund.
21 Beginning January 1, 1997, and continuing through December
22 31, 1997, of the amounts attributable to the portion of the
23 tax rate in excess of 3% as to individuals, trusts, and
24 estates, and in excess of 4.8% as to corporations collected
25 under subsections (a) and (b) of Section 201 of this Act
26 minus deposits into the Income Tax Refund Fund, the
27 Department shall deposit 48.1% into the School Property Tax
28 Relief Fund in the State treasury. Beginning January 1, 1998,
29 and continuing through December 31, 1998, of the amounts
30 attributable to the portion of the tax rate in excess of 3%
31 as to individuals, trusts, and estates and in excess of 4.8%
32 as to corporations collected under subsections (a) and (b) of
33 Section 201 of this Act minus deposits into the Income Tax
34 Refund Fund, the Department shall deposit 74.2% into the
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1 School Property Tax Relief Fund in the State treasury.
2 Beginning January 1, 1999, and continuing through December
3 31, 1999, of the amounts attributable to the portion of the
4 tax rate in excess of 3% as to individuals, trusts, and
5 estates, and in excess of 4.8% as to corporations collected
6 under subsections (a) and (b) of Section 201 of this Act
7 minus deposits into the Income Tax Refund Fund, the
8 Department shall deposit 81% into the School Property Tax
9 Relief Fund in the State Treasury. Beginning January 1, 2000,
10 of the amounts attributable to the portion of the tax rate in
11 excess of 3% as to individuals, trusts, and estates, and in
12 excess of 4.8% as to corporations collected under subsections
13 (a) and (b) of Section 201 of this Act minus deposits into
14 the Income Tax Refund Fund, the Department shall deposit
15 86.3% into the School Property Tax Relief Fund in the State
16 treasury.
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
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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. 88-89; 89-6, eff. 12-31-95.)
6 Section 25. The Property Tax Code is amended by adding
7 Section 18-47 as follows:
8 (35 ILCS 200/18-47 new)
9 Sec. 18-47. Special calculation regarding school
10 districts.
11 In the calculation of that portion of a school district's
12 tax rate attributable to educational purposes and applicable
13 for the 1997 levy year and all subsequent years, including
14 the 1997 tax extension of a school district organized under
15 Article 34 of the School Code, the county clerk shall
16 determine an "initial educational rate" and a "final
17 educational rate" for every levy year. The "initial
18 educational rate" shall be calculated for the sole purpose of
19 being reported by the county clerk to the Department of
20 Revenue for purposes of calculating General State Aid, and
21 shall not be extended against any portion of equalized
22 assessed value in the district. The "final educational rate"
23 shall be the educational purposes component included in the
24 actual rate per cent to be extended for that levy year upon
25 the equalized assessed valuation of the district as
26 prescribed above, excluding the assessed valuation in the
27 percentage that has been agreed to by each taxing district on
28 any property or portion thereof upon which an abatement of
29 taxes was made under Section 18-170 of this Code.
30 The "initial educational rate" shall be calculated by the
31 county clerk as the amount levied for educational purposes by
32 the school district, provided that this amount does not
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1 exceed the maximum education tax authorized to be levied by
2 any statute of this State, divided by the district's
3 equalized assessed valuation as prescribed above, excluding
4 the assessed valuation in the percentage that has been agreed
5 to by each taxing district of any property or portion thereof
6 upon which an abatement of taxes was made under Section
7 18-170 of this Code.
8 The "final educational rate" shall be calculated by
9 reducing the amount levied for educational purposes by the
10 school district, provided this amount does not exceed the
11 maximum education tax authorized to be levied by any statute
12 of this State, by the "statewide dollar-per-student-enrolled"
13 figure reported to the county clerk for that particular levy
14 year by the State Board of Education under Section 2-3.120 of
15 the School Code multiplied by the "number of students
16 enrolled", that number having been reported under Section
17 17-11 or Section 34-54.1 of the School Code in the school
18 district, and dividing by the district's equalized assessed
19 valuation as prescribed above, excluding the assessed
20 valuation in the percentage that has been agreed to by each
21 taxing district of any property, or portion thereof, upon
22 which an abatement of taxes was made under Section 18-170 of
23 this Code. The county clerk shall annually report to the
24 State Board of Education the dollar amount that was deducted
25 from each educational fund levy.
26 Section 30. The School Code is amended by changing
27 Sections 17-11, and 34-54.1 and adding Sections 2-3.120,
28 2-3.121, and 18-19.5 as follows:
29 (105 ILCS 5/2-3.120 new)
30 Sec. 2-3.120. Statewide dollar-per-student-enrolled
31 report. On April 1 of each year, the State Board of Education
32 shall compute the "statewide dollar-per-student-enrolled".
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1 For purposes of this Section "statewide
2 dollar-per-student-enrolled" means the total moneys in the
3 School Property Tax Relief Fund as of December 31 of the
4 preceding calendar year divided by the total statewide number
5 of students enrolled as certified by the various school
6 districts pursuant to Section 2-3.121 of this Code. The
7 resulting figure shall serve as the amount the respective
8 county clerks shall multiply by the "number of students
9 enrolled" in the various school districts to achieve a
10 reduction in taxes on real property extended under Division 3
11 of Article 18 of Title 6 of the Property Tax Code and
12 Sections 17-11 and 34-54.1 of this Code. This figure shall be
13 reported by the State Board of Education to the respective
14 county clerks no later than April 15 of each year.
15 (105 ILCS 5/2-3.121 new)
16 Sec. 2-3.121. Public District Fall Enrollment Housing
17 Report. The State Board of Education shall require each
18 school district to submit to the State Board of Education by
19 November 1 of each year a certified report entitled the
20 "Public District Fall Enrollment Housing Report". The State
21 Board of Education shall prescribe a form for the report that
22 shall provide for the inclusion of (i) the identification of
23 the school district, (ii) the number of pupils enrolled as of
24 September 30 of the current school year, (iii) space for the
25 signature and certification of the report by the district
26 superintendent, and (iv) any additional information the State
27 Board of Education shall require.
28 (105 ILCS 5/17-11) (from Ch. 122, par. 17-11)
29 Sec. 17-11. Certificate of tax levy. The school board
30 of each district shall ascertain, as near as practicable,
31 annually, how much money must be raised by special tax for
32 transportation purposes if any and for educational and for
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1 operations and maintenance purposes for the next ensuing
2 year. In school districts with a population of less than
3 500,000, these amounts shall be certified and returned to
4 each county clerk on or before the last Tuesday in December,
5 annually. These amounts shall be accompanied by the most
6 recently certified "Public District Fall Enrollment Housing
7 Report" required under Section 2-3.121 of this Code. The
8 certificate shall be signed by the president and clerk or
9 secretary, and may be in the following form:
10 CERTIFICATE OF TAX LEVY
11 We hereby certify that we require the sum of
12 ......dollars, to be levied as a special tax for
13 transportation purposes and the sum of ...... dollars to be
14 levied as a special tax for educational purposes, and the sum
15 ...... dollars to be levied as a special tax for operations
16 and maintenance purposes, and the sum of ...... to be levied
17 as a special tax for a working cash fund, on the equalized
18 assessed value of the taxable property of our district, for
19 the year 19.....
20 Signed this ....... day of ..............., 19....
21 A ........... B ............., President
22 C ........... D............., Clerk (Secretary)
23 Dist. No. .........., ............ County
24 A failure by the school board to file the certificate
25 with the county clerk in the time required shall not vitiate
26 the assessment.
27 (Source: P.A. 86-13; 86-1334; 87-17.)
28 (105 ILCS 5/18-19.5 new)
29 Sec. 18-19.5. School Property Tax Relief Fund. Upon
30 receipt of the Educational Fund reduction amounts certified
31 by the respective county clerks to the State Board of
32 Education under Section 18-47 of the Property Tax Code, the
33 State Board of Education shall make disbursements in the
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1 certified amounts from the School Property Tax Relief Fund,
2 pursuant to appropriation, to the various school districts.
3 (105 ILCS 5/34-54.1) (from Ch. 122, par. 34-54.1)
4 Sec. 34-54.1. Tax levies and extensions. The annual tax
5 rates and the several tax levies authorized to be made shall
6 be: (i) for each fiscal year through and including the
7 1995-96 fiscal year, for a fiscal year commencing September
8 1 and ending August 31; (ii) for the 1996-97 fiscal year, for
9 a fiscal year commencing September 1 and ending June 30; and
10 (iii) for each subsequent fiscal year, for a fiscal year
11 commencing July 1 and ending June 30.
12 Notwithstanding any provision in this Article 34 to the
13 contrary, by the last Tuesday in December of each calendar
14 year, the board of education may levy upon all the taxable
15 property of the district or city, the annual taxes required
16 to provide the necessary revenue to defray expenditures,
17 charges and liabilities incurred by the board for the fiscal
18 year beginning in that calendar year. The levy may be based
19 upon the estimated equalized assessed valuation provided the
20 county clerk shall extend for collection only so much thereof
21 as is permitted by law. The total amount of the levy shall be
22 certified to the county clerk who shall extend for collection
23 only so much thereof as is required to provide the necessary
24 revenue to defray expenditures, charges and liabilities
25 incurred by the board as certified by the controller of the
26 board to the county clerk upon the value, as equalized or
27 assessed by the Department of Revenue for the calendar year
28 in which the levy was made. The total amount of the levy
29 certified to the county clerk shall be accompanied by the
30 most recently certified "Public District Fall Enrollment
31 Housing Report" required under Section 2-3.121 of this Code.
32 The county clerk shall thereafter in the succeeding calendar
33 year extend such remaining amount of the levy as is certified
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1 by the controller of the board to the county clerk upon the
2 value, as equalized or assessed by the Department of Revenue
3 for such calendar year. In each year the county clerk shall
4 extend taxes at a rate sufficient to produce the full amount
5 of the 2 partial levies attributable to that tax year.
6 Provided, however, and notwithstanding the provisions of any
7 other law to the contrary: (a) the extension of taxes levied
8 for fiscal years ending before 1996 for building purposes and
9 school supervised playground outside school hours and stadia,
10 social center and summer swimming pool purposes which the
11 county clerk shall make against the value of all taxable
12 property of the district or city, as equalized or assessed by
13 the Department of Revenue, shall be at the respective maximum
14 rates at which the board was authorized to levy taxes for
15 such purposes for the fiscal year which ends in 1995; and (b)
16 notwithstanding any other provision of this Code, in each
17 calendar year the taxes for educational purposes shall be
18 extended at a rate certified by the controller as referred to
19 in this Section, which rate shall not be in excess of the
20 maximum rate for the levy of taxes for educational purposes,
21 occurring in the fiscal year which begins in the calendar
22 year of the extension, (whether or not actually levied at
23 that rate) except for calendar year 1995 in which the rate
24 shall not be in excess of the maximum rate which would be
25 provided for the levy of taxes for educational purposes for
26 the fiscal year which begins in 1995 without regard to this
27 amendatory Act of 1995. In calendar year 1995, the county
28 clerk shall extend any special education purposes tax which
29 was levied as provided in Section 34-53.2 in full in the
30 calendar year following the year in which the levy of such a
31 tax was made.
32 (Source: P.A. 88-511; 89-15, eff. 5-30-95.)
33 Section 99. Effective date. This Act takes effect upon
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1 becoming law.
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1 INDEX
2 Statutes amended in order of appearance
3 30 ILCS 105/5.449 new
4 30 ILCS 105/6z-42 new
5 30 ILCS 115/1 from Ch. 85, par. 611
6 30 ILCS 805/8.21 new
7 35 ILCS 5/201 from Ch. 120, par. 2-201
8 35 ILCS 5/202.5 new
9 35 ILCS 5/208 from Ch. 120, par. 2-208
10 35 ILCS 5/502 from Ch. 120, par. 5-502
11 35 ILCS 5/701 from Ch. 120, par. 7-701
12 35 ILCS 5/710 from Ch. 120, par. 7-710
13 35 ILCS 5/803 from Ch. 120, par. 8-803
14 35 ILCS 5/901 from Ch. 120, par. 9-901
15 35 ILCS 200/18-47 new
16 105 ILCS 5/2-3.120 new
17 105 ILCS 5/2-3.121 new
18 105 ILCS 5/17-11 from Ch. 122, par. 17-11
19 105 ILCS 5/18-19.5 new
20 105 ILCS 5/34-54.1 from Ch. 122, par. 34-54.1