HB2869 103RD GENERAL ASSEMBLY

LRB103 25091 HLH 51426 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2869

Introduced 2/16/2023, by Rep. Dan Ugaste

SYNOPSIS AS INTRODUCED:

35 ILCS 5/208.5
5 ILCS 100/5-45.35 new

Amends the Illinois Income Tax Act. Provides that the Department of Revenue shall establish a 60-day reapplication period during calendar year 2023 to allow qualified taxpayers to file an original or amended return for tax year 2021 for the purpose of receiving the 2021 residential real estate tax rebate. Provides that a qualified taxpayer is a person who (i) was 65 years of age or older during calendar year 2022, (ii) would have been eligible for the rebate if he or she had filed the appropriate individual income tax return for tax year 2021, and (iii) did not receive a rebate. Amends the Illinois Administrative Procedure Act to allow emergency rulemaking. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

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

Section 5. The Illinois Income Tax Act is amended by changing Section 208.5 as follows:

(35 ILCS 5/208.5)

(Section scheduled to be repealed on January 1, 2024)

Sec. 208.5. Residential real estate tax rebate.

(a) The Department shall pay a one-time rebate to every individual taxpayer who files with the Department, on or before October 17, 2022 or during the reapplication period established under subsection (h-5), an Illinois income tax return for tax year 2021 and who qualifies, in that tax year, under rules adopted by the Department, for the income tax credit provided under Section 208 of this Act. The amount of the one-time rebate provided under this Section shall be the lesser of: (1) the amount of the credit provided under Section 208 for tax year 2021, including any amounts that would otherwise reduce a taxpayer's liability to less than zero, or (2) $300 per principal residence. The Department shall develop a process to claim a rebate for taxpayers who otherwise would be eligible for the rebate under this Section but who did not have an obligation to file a 2021 Illinois income tax return because their exemption allowance exceeded their Illinois base income.

(b) On the effective date of this amendatory Act of the 102nd General Assembly, or as soon thereafter as practical, but no later than June 30, 2022, the State Comptroller shall direct and the State Treasurer shall transfer the sum of $470,000,000 from the General Revenue Fund to the Income Tax Refund Fund.

(c) On July 1, 2022, or as soon thereafter as practical, the State Comptroller shall direct and the State Treasurer shall transfer the sum of $50,000,000 from the General Revenue Fund to the Income Tax Refund Fund.

(d) In addition to any other transfers that may be provided for by law, beginning on the effective date of this amendatory Act of the 102nd General Assembly and until June 30, 2023, the Director may certify additional transfer amounts needed beyond the amounts specified in subsections (b) and (c). The State Comptroller shall direct and the State Treasurer shall transfer the amounts certified by the Director from the General Revenue Fund to the Income Tax Refund Fund.

(e) The one-time rebate payments provided under this Section shall be paid from the Income Tax Refund Fund.

(f) Beginning on July 5, 2022, the Department shall certify to the Comptroller the names of the taxpayers who are eligible for a one-time rebate under this Section, the amounts of those rebates, and any other information that the Comptroller requires to direct the payment of the rebates provided under this Section to taxpayers.

(g) The amount of a rebate under this Section shall not be included in the taxpayer's income or resources for the purposes of determining eligibility or benefit level in any means-tested benefit program administered by a governmental entity unless required by federal law.

(h) Notwithstanding any other law to the contrary, the rebates shall not be subject to offset by the Comptroller against any liability owed either to the State or to any unit of local government.

(h-5) The Department shall, by rule, establish a 60-day reapplication period during calendar year 2023 to allow qualified taxpayers to file an original or amended return for tax year 2021 for the purpose of receiving a rebate under this Section. The Department shall publish notice of the reapplication period in a newspaper of general circulation in the State and shall post the notice on the Department's website. In addition, the Department on Aging shall distribute notices of the reapplication period to senior citizen activity centers in the various geographic regions of the State. As used in this subsection (h-5), "qualified taxpayer" means a person who (i) was 65 years of age or older during calendar year 2022, (ii) would have been eligible for the rebate under this Section if he or she had filed the appropriate individual income tax return under this Act for tax year 2021, and (iii) did not receive a rebate under this Section.

(i) This Section is repealed on January 1, 2025 January 1, 2024.

(Source: P.A. 102-700, eff. 4-19-22.)

Section 10. The Illinois Administrative Procedure Act is amended by adding Section 5-45.35 as follows:

(5 ILCS 100/5-45.35 new)

Sec. 5-45.35. Emergency rulemaking. To provide for the expeditious and timely implementation of this amendatory Act of the 103rd General Assembly, emergency rules implementing this amendatory Act of the 103rd General Assembly may be adopted in accordance with Section 5-45 by the Department of Revenue. The adoption of emergency rules authorized by Section 5-45 and this Section is deemed to be necessary for the public interest, safety, and welfare.

This Section is repealed one year after the effective date of this amendatory Act of the 103rd General Assembly.

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