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22 (c) This Section is repealed on June 1, 2003.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