97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB0472

 

Introduced 01/31/11, by Rep. Michael J. Madigan

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 115/12  from Ch. 85, par. 616

    Amends the State Revenue Sharing Act. Makes a technical change in a Section concerning the Personal Property Tax Replacement Fund.


LRB097 03299 PJG 43336 b

 

 

A BILL FOR

 

HB0472LRB097 03299 PJG 43336 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Revenue Sharing Act is amended by
5changing Section 12 as follows:
 
6    (30 ILCS 115/12)  (from Ch. 85, par. 616)
7    Sec. 12. Personal Property Tax Replacement Fund. There is
8hereby created the the Personal Property Tax Replacement Fund,
9a special fund in the State Treasury into which shall be paid
10all revenue realized:
11    (a) all amounts realized from the additional personal
12property tax replacement income tax imposed by subsections (c)
13and (d) of Section 201 of the Illinois Income Tax Act, except
14for those amounts deposited into the Income Tax Refund Fund
15pursuant to subsection (c) of Section 901 of the Illinois
16Income Tax Act; and
17    (b) all amounts realized from the additional personal
18property replacement invested capital taxes imposed by Section
192a.1 of the Messages Tax Act, Section 2a.1 of the Gas Revenue
20Tax Act, Section 2a.1 of the Public Utilities Revenue Act, and
21Section 3 of the Water Company Invested Capital Tax Act, and
22amounts payable to the Department of Revenue under the
23Telecommunications Infrastructure Maintenance Fee Act.

 

 

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1    As soon as may be after the end of each month, the
2Department of Revenue shall certify to the Treasurer and the
3Comptroller the amount of all refunds paid out of the General
4Revenue Fund through the preceding month on account of
5overpayment of liability on taxes paid into the Personal
6Property Tax Replacement Fund. Upon receipt of such
7certification, the Treasurer and the Comptroller shall
8transfer the amount so certified from the Personal Property Tax
9Replacement Fund into the General Revenue Fund.
10    The payments of revenue into the Personal Property Tax
11Replacement Fund shall be used exclusively for distribution to
12taxing districts as provided in this Section, payment of the
13ordinary and contingent expenses of the Property Tax Appeal
14Board, payment of the expenses of the Department of Revenue
15incurred in administering the collection and distribution of
16monies paid into the Personal Property Tax Replacement Fund and
17transfers due to refunds to taxpayers for overpayment of
18liability for taxes paid into the Personal Property Tax
19Replacement Fund.
20    As soon as may be after the effective date of this
21amendatory Act of 1980, the Department of Revenue shall certify
22to the Treasurer the amount of net replacement revenue paid
23into the General Revenue Fund prior to that effective date from
24the additional tax imposed by Section 2a.1 of the Messages Tax
25Act; Section 2a.1 of the Gas Revenue Tax Act; Section 2a.1 of
26the Public Utilities Revenue Act; Section 3 of the Water

 

 

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1Company Invested Capital Tax Act; amounts collected by the
2Department of Revenue under the Telecommunications
3Infrastructure Maintenance Fee Act; and the additional
4personal property tax replacement income tax imposed by the
5Illinois Income Tax Act, as amended by Public Act 81-1st
6Special Session-1. Net replacement revenue shall be defined as
7the total amount paid into and remaining in the General Revenue
8Fund as a result of those Acts minus the amount outstanding and
9obligated from the General Revenue Fund in state vouchers or
10warrants prior to the effective date of this amendatory Act of
111980 as refunds to taxpayers for overpayment of liability under
12those Acts.
13    All interest earned by monies accumulated in the Personal
14Property Tax Replacement Fund shall be deposited in such Fund.
15All amounts allocated pursuant to this Section are appropriated
16on a continuing basis.
17    Prior to December 31, 1980, as soon as may be after the end
18of each quarter beginning with the quarter ending December 31,
191979, and on and after December 31, 1980, as soon as may be
20after January 1, March 1, April 1, May 1, July 1, August 1,
21October 1 and December 1 of each year, the Department of
22Revenue shall allocate to each taxing district as defined in
23Section 1-150 of the Property Tax Code, in accordance with the
24provisions of paragraph (2) of this Section the portion of the
25funds held in the Personal Property Tax Replacement Fund which
26is required to be distributed, as provided in paragraph (1),

 

 

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1for each quarter. Provided, however, under no circumstances
2shall any taxing district during each of the first two years of
3distribution of the taxes imposed by this amendatory Act of
41979 be entitled to an annual allocation which is less than the
5funds such taxing district collected from the 1978 personal
6property tax. Provided further that under no circumstances
7shall any taxing district during the third year of distribution
8of the taxes imposed by this amendatory Act of 1979 receive
9less than 60% of the funds such taxing district collected from
10the 1978 personal property tax. In the event that the total of
11the allocations made as above provided for all taxing
12districts, during either of such 3 years, exceeds the amount
13available for distribution the allocation of each taxing
14district shall be proportionately reduced. Except as provided
15in Section 13 of this Act, the Department shall then certify,
16pursuant to appropriation, such allocations to the State
17Comptroller who shall pay over to the several taxing districts
18the respective amounts allocated to them.
19    Any township which receives an allocation based in whole or
20in part upon personal property taxes which it levied pursuant
21to Section 6-507 or 6-512 of the Illinois Highway Code and
22which was previously required to be paid over to a municipality
23shall immediately pay over to that municipality a proportionate
24share of the personal property replacement funds which such
25township receives.
26    Any municipality or township, other than a municipality

 

 

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1with a population in excess of 500,000, which receives an
2allocation based in whole or in part on personal property taxes
3which it levied pursuant to Sections 3-1, 3-4 and 3-6 of the
4Illinois Local Library Act and which was previously required to
5be paid over to a public library shall immediately pay over to
6that library a proportionate share of the personal property tax
7replacement funds which such municipality or township
8receives; provided that if such a public library has converted
9to a library organized under The Illinois Public Library
10District Act, regardless of whether such conversion has
11occurred on, after or before January 1, 1988, such
12proportionate share shall be immediately paid over to the
13library district which maintains and operates the library.
14However, any library that has converted prior to January 1,
151988, and which hitherto has not received the personal property
16tax replacement funds, shall receive such funds commencing on
17January 1, 1988.
18    Any township which receives an allocation based in whole or
19in part on personal property taxes which it levied pursuant to
20Section 1c of the Public Graveyards Act and which taxes were
21previously required to be paid over to or used for such public
22cemetery or cemeteries shall immediately pay over to or use for
23such public cemetery or cemeteries a proportionate share of the
24personal property tax replacement funds which the township
25receives.
26    Any taxing district which receives an allocation based in

 

 

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1whole or in part upon personal property taxes which it levied
2for another governmental body or school district in Cook County
3in 1976 or for another governmental body or school district in
4the remainder of the State in 1977 shall immediately pay over
5to that governmental body or school district the amount of
6personal property replacement funds which such governmental
7body or school district would receive directly under the
8provisions of paragraph (2) of this Section, had it levied its
9own taxes.
10        (1) The portion of the Personal Property Tax
11    Replacement Fund required to be distributed as of the time
12    allocation is required to be made shall be the amount
13    available in such Fund as of the time allocation is
14    required to be made.
15        The amount available for distribution shall be the
16    total amount in the fund at such time minus the necessary
17    administrative expenses as limited by the appropriation
18    and the amount determined by: (a) $2.8 million for fiscal
19    year 1981; (b) for fiscal year 1982, .54% of the funds
20    distributed from the fund during the preceding fiscal year;
21    (c) for fiscal year 1983 through fiscal year 1988, .54% of
22    the funds distributed from the fund during the preceding
23    fiscal year less .02% of such fund for fiscal year 1983 and
24    less .02% of such funds for each fiscal year thereafter, or
25    (d) for fiscal year 1989 and beyond no more than 105% of
26    the actual administrative expenses of the prior fiscal

 

 

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1    year. Such portion of the fund shall be determined after
2    the transfer into the General Revenue Fund due to refunds,
3    if any, paid from the General Revenue Fund during the
4    preceding quarter. If at any time, for any reason, there is
5    insufficient amount in the Personal Property Tax
6    Replacement Fund for payment of costs of administration or
7    for transfers due to refunds at the end of any particular
8    month, the amount of such insufficiency shall be carried
9    over for the purposes of transfers into the General Revenue
10    Fund and for purposes of costs of administration to the
11    following month or months. Net replacement revenue held,
12    and defined above, shall be transferred by the Treasurer
13    and Comptroller to the Personal Property Tax Replacement
14    Fund within 10 days of such certification.
15        (2) Each quarterly allocation shall first be
16    apportioned in the following manner: 51.65% for taxing
17    districts in Cook County and 48.35% for taxing districts in
18    the remainder of the State.
19    The Personal Property Replacement Ratio of each taxing
20district outside Cook County shall be the ratio which the Tax
21Base of that taxing district bears to the Downstate Tax Base.
22The Tax Base of each taxing district outside of Cook County is
23the personal property tax collections for that taxing district
24for the 1977 tax year. The Downstate Tax Base is the personal
25property tax collections for all taxing districts in the State
26outside of Cook County for the 1977 tax year. The Department of

 

 

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1Revenue shall have authority to review for accuracy and
2completeness the personal property tax collections for each
3taxing district outside Cook County for the 1977 tax year.
4    The Personal Property Replacement Ratio of each Cook County
5taxing district shall be the ratio which the Tax Base of that
6taxing district bears to the Cook County Tax Base. The Tax Base
7of each Cook County taxing district is the personal property
8tax collections for that taxing district for the 1976 tax year.
9The Cook County Tax Base is the personal property tax
10collections for all taxing districts in Cook County for the
111976 tax year. The Department of Revenue shall have authority
12to review for accuracy and completeness the personal property
13tax collections for each taxing district within Cook County for
14the 1976 tax year.
15    For all purposes of this Section 12, amounts paid to a
16taxing district for such tax years as may be applicable by a
17foreign corporation under the provisions of Section 7-202 of
18the Public Utilities Act, as amended, shall be deemed to be
19personal property taxes collected by such taxing district for
20such tax years as may be applicable. The Director shall
21determine from the Illinois Commerce Commission, for any tax
22year as may be applicable, the amounts so paid by any such
23foreign corporation to any and all taxing districts. The
24Illinois Commerce Commission shall furnish such information to
25the Director. For all purposes of this Section 12, the Director
26shall deem such amounts to be collected personal property taxes

 

 

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1of each such taxing district for the applicable tax year or
2years.
3    Taxing districts located both in Cook County and in one or
4more other counties shall receive both a Cook County allocation
5and a Downstate allocation determined in the same way as all
6other taxing districts.
7    If any taxing district in existence on July 1, 1979 ceases
8to exist, or discontinues its operations, its Tax Base shall
9thereafter be deemed to be zero. If the powers, duties and
10obligations of the discontinued taxing district are assumed by
11another taxing district, the Tax Base of the discontinued
12taxing district shall be added to the Tax Base of the taxing
13district assuming such powers, duties and obligations.
14    If two or more taxing districts in existence on July 1,
151979, or a successor or successors thereto shall consolidate
16into one taxing district, the Tax Base of such consolidated
17taxing district shall be the sum of the Tax Bases of each of
18the taxing districts which have consolidated.
19    If a single taxing district in existence on July 1, 1979,
20or a successor or successors thereto shall be divided into two
21or more separate taxing districts, the tax base of the taxing
22district so divided shall be allocated to each of the resulting
23taxing districts in proportion to the then current equalized
24assessed value of each resulting taxing district.
25    If a portion of the territory of a taxing district is
26disconnected and annexed to another taxing district of the same

 

 

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1type, the Tax Base of the taxing district from which
2disconnection was made shall be reduced in proportion to the
3then current equalized assessed value of the disconnected
4territory as compared with the then current equalized assessed
5value within the entire territory of the taxing district prior
6to disconnection, and the amount of such reduction shall be
7added to the Tax Base of the taxing district to which
8annexation is made.
9    If a community college district is created after July 1,
101979, beginning on the effective date of this amendatory Act of
111995, its Tax Base shall be 3.5% of the sum of the personal
12property tax collected for the 1977 tax year within the
13territorial jurisdiction of the district.
14    The amounts allocated and paid to taxing districts pursuant
15to the provisions of this amendatory Act of 1979 shall be
16deemed to be substitute revenues for the revenues derived from
17taxes imposed on personal property pursuant to the provisions
18of the "Revenue Act of 1939" or "An Act for the assessment and
19taxation of private car line companies", approved July 22,
201943, as amended, or Section 414 of the Illinois Insurance
21Code, prior to the abolition of such taxes and shall be used
22for the same purposes as the revenues derived from ad valorem
23taxes on real estate.
24    Monies received by any taxing districts from the Personal
25Property Tax Replacement Fund shall be first applied toward
26payment of the proportionate amount of debt service which was

 

 

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1previously levied and collected from extensions against
2personal property on bonds outstanding as of December 31, 1978
3and next applied toward payment of the proportionate share of
4the pension or retirement obligations of the taxing district
5which were previously levied and collected from extensions
6against personal property. For each such outstanding bond
7issue, the County Clerk shall determine the percentage of the
8debt service which was collected from extensions against real
9estate in the taxing district for 1978 taxes payable in 1979,
10as related to the total amount of such levies and collections
11from extensions against both real and personal property. For
121979 and subsequent years' taxes, the County Clerk shall levy
13and extend taxes against the real estate of each taxing
14district which will yield the said percentage or percentages of
15the debt service on such outstanding bonds. The balance of the
16amount necessary to fully pay such debt service shall
17constitute a first and prior lien upon the monies received by
18each such taxing district through the Personal Property Tax
19Replacement Fund and shall be first applied or set aside for
20such purpose. In counties having fewer than 3,000,000
21inhabitants, the amendments to this paragraph as made by this
22amendatory Act of 1980 shall be first applicable to 1980 taxes
23to be collected in 1981.
24(Source: P.A. 96-45, eff. 7-15-09.)