98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3750

 

Introduced , by Rep. Anthony DeLuca

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 115/1  from Ch. 85, par. 611
35 ILCS 5/901  from Ch. 120, par. 9-901

    Amends the Illinois Income Tax Act. Provides that, beginning on February 1, 2015, the Treasurer shall transfer each month from the General Revenue Fund to the Local Government Distributive Fund an amount equal to 10% of the net revenue realized from the tax imposed under the Act during the preceding month (instead of: (i) beginning on February 1, 2015 and through January 31, 2025, an amount equal to the sum of 8% of the net revenue realized from the tax imposed upon individuals, trusts, and estates, and 9.14% of the net revenue realized from the tax imposed on corporations; and (ii) beginning on February 1, 2025, an amount equal to the sum of 9.23% of the net revenue realized from the tax imposed upon individuals, trusts, and estates, and 10% of the net revenue realized from the tax imposed on corporations).


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3750LRB098 14363 HLH 49000 b

1    AN ACT concerning revenue.
 
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 1 as follows:
 
6    (30 ILCS 115/1)  (from Ch. 85, par. 611)
7    Sec. 1. Local Government Distributive Fund. Through June
830, 1994, as soon as may be after the first day of each month
9the Department of Revenue shall certify to the Treasurer the
10amount required to be transferred from the General Revenue Fund
11to the Local Government Distributive Fund under subsection (b)
12of Section 901 of the Illinois Income Tax Act. an amount equal
13to 1/12 of the net revenue realized from the tax imposed by
14subsections (a) and (b) of Section 201 of the Illinois Income
15Tax Act during the preceding month. Beginning July 1, 1994, and
16continuing through June 30, 1995, as soon as may be after the
17first day of each month, the Department of Revenue shall
18certify to the Treasurer an amount equal to 1/11 of the net
19revenue realized from the tax imposed by subsections (a) and
20(b) of Section 201 of the Illinois Income Tax Act during the
21preceding month. Beginning July 1, 1995, as soon as may be
22after the first day of each month, the Department of Revenue
23shall certify to the Treasurer an amount equal to 1/10 of the

 

 

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1net revenue realized from the tax imposed by subsections (a)
2and (b) of Section 201 of the Illinois Income Tax Act during
3the preceding month. Net revenue realized for a month shall be
4defined as the revenue from the tax imposed by subsections (a)
5and (b) of Section 201 of the Illinois Income Tax Act which is
6deposited in the General Revenue Fund, the Education Assistance
7Fund and the Income Tax Surcharge Local Government Distributive
8Fund during the month minus the amount paid out of the General
9Revenue Fund in State warrants during that same month as
10refunds to taxpayers for overpayment of liability under the tax
11imposed by subsections (a) and (b) of Section 201 of the
12Illinois Income Tax Act. Upon receipt of such certification,
13the Treasurer shall transfer from the General Revenue Fund to a
14special fund in the State treasury, to be known as the "Local
15Government Distributive Fund", the amount shown on such
16certification.
17    All amounts paid into the Local Government Distributive
18Fund in accordance with this Section and allocated pursuant to
19this Act are appropriated on a continuing basis.
20(Source: P.A. 88-89.)
 
21    Section 10. The Illinois Income Tax Act is amended by
22changing Section 901 as follows:
 
23    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
24    Sec. 901. Collection Authority.

 

 

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1    (a) In general.
2    The Department shall collect the taxes imposed by this Act.
3The Department shall collect certified past due child support
4amounts under Section 2505-650 of the Department of Revenue Law
5(20 ILCS 2505/2505-650). Except as provided in subsections (c),
6(e), (f), and (g) of this Section, money collected pursuant to
7subsections (a) and (b) of Section 201 of this Act shall be
8paid into the General Revenue Fund in the State treasury; money
9collected pursuant to subsections (c) and (d) of Section 201 of
10this Act shall be paid into the Personal Property Tax
11Replacement Fund, a special fund in the State Treasury; and
12money collected under Section 2505-650 of the Department of
13Revenue Law (20 ILCS 2505/2505-650) shall be paid into the
14Child Support Enforcement Trust Fund, a special fund outside
15the State Treasury, or to the State Disbursement Unit
16established under Section 10-26 of the Illinois Public Aid
17Code, as directed by the Department of Healthcare and Family
18Services.
19    (b) Local Government Distributive Fund.
20    Beginning August 1, 1969, and continuing through June 30,
211994, the Treasurer shall transfer each month from the General
22Revenue Fund to a special fund in the State treasury, to be
23known as the "Local Government Distributive Fund", an amount
24equal to 1/12 of the net revenue realized from the tax imposed
25by subsections (a) and (b) of Section 201 of this Act during
26the preceding month. Beginning July 1, 1994, and continuing

 

 

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1through June 30, 1995, the Treasurer shall transfer each month
2from the General Revenue Fund to the Local Government
3Distributive Fund an amount equal to 1/11 of the net revenue
4realized from the tax imposed by subsections (a) and (b) of
5Section 201 of this Act during the preceding month. Beginning
6July 1, 1995 and continuing through January 31, 2011, the
7Treasurer shall transfer each month from the General Revenue
8Fund to the Local Government Distributive Fund an amount equal
9to the net of (i) 1/10 of the net revenue realized from the tax
10imposed by subsections (a) and (b) of Section 201 of the
11Illinois Income Tax Act during the preceding month (ii) minus,
12beginning July 1, 2003 and ending June 30, 2004, $6,666,666,
13and beginning July 1, 2004, zero. Beginning February 1, 2011,
14and continuing through January 31, 2015, the Treasurer shall
15transfer each month from the General Revenue Fund to the Local
16Government Distributive Fund an amount equal to the sum of (i)
176% (10% of the ratio of the 3% individual income tax rate prior
18to 2011 to the 5% individual income tax rate after 2010) of the
19net revenue realized from the tax imposed by subsections (a)
20and (b) of Section 201 of this Act upon individuals, trusts,
21and estates during the preceding month and (ii) 6.86% (10% of
22the ratio of the 4.8% corporate income tax rate prior to 2011
23to the 7% corporate income tax rate after 2010) of the net
24revenue realized from the tax imposed by subsections (a) and
25(b) of Section 201 of this Act upon corporations during the
26preceding month. Beginning February 1, 2015 and continuing

 

 

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1through January 31, 2025, the Treasurer shall transfer each
2month from the General Revenue Fund to the Local Government
3Distributive Fund an amount equal to the sum of (i) 8% (10% of
4the ratio of the 3% individual income tax rate prior to 2011 to
5the 3.75% individual income tax rate after 2014) of the net
6revenue realized from the tax imposed by subsections (a) and
7(b) of Section 201 of this Act upon individuals, trusts, and
8estates during the preceding month and (ii) 9.14% (10% of the
9ratio of the 4.8% corporate income tax rate prior to 2011 to
10the 5.25% corporate income tax rate after 2014) of the net
11revenue realized from the tax imposed by subsections (a) and
12(b) of Section 201 of this Act upon corporations during the
13preceding month. Beginning February 1, 2025, the Treasurer
14shall transfer each month from the General Revenue Fund to the
15Local Government Distributive Fund an amount equal to the sum
16of (i) 9.23% (10% of the ratio of the 3% individual income tax
17rate prior to 2011 to the 3.25% individual income tax rate
18after 2024) of the net revenue realized from the tax imposed by
19subsections (a) and (b) of Section 201 of this Act upon
20individuals, trusts, and estates during the preceding month and
21(ii) 10% of the net revenue realized from the tax imposed by
22subsections (a) and (b) of Section 201 of this Act upon
23corporations during the preceding month. Net revenue realized
24for a month shall be defined as the revenue from the tax
25imposed by subsections (a) and (b) of Section 201 of this Act
26which is deposited into in the General Revenue Fund, the

 

 

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1Education Assistance Fund, the Income Tax Surcharge Local
2Government Distributive Fund, the Fund for the Advancement of
3Education, and the Commitment to Human Services Fund during the
4month minus the amount paid out of the General Revenue Fund in
5State warrants during that same month as refunds to taxpayers
6for overpayment of liability under the tax imposed by
7subsections (a) and (b) of Section 201 of this Act.
8    (c) Deposits Into Income Tax Refund Fund.
9        (1) Beginning on January 1, 1989 and thereafter, the
10    Department shall deposit a percentage of the amounts
11    collected pursuant to subsections (a) and (b)(1), (2), and
12    (3), of Section 201 of this Act into a fund in the State
13    treasury known as the Income Tax Refund Fund. The
14    Department shall deposit 6% of such amounts during the
15    period beginning January 1, 1989 and ending on June 30,
16    1989. Beginning with State fiscal year 1990 and for each
17    fiscal year thereafter, the percentage deposited into the
18    Income Tax Refund Fund during a fiscal year shall be the
19    Annual Percentage. For fiscal years 1999 through 2001, the
20    Annual Percentage shall be 7.1%. For fiscal year 2003, the
21    Annual Percentage shall be 8%. For fiscal year 2004, the
22    Annual Percentage shall be 11.7%. Upon the effective date
23    of this amendatory Act of the 93rd General Assembly, the
24    Annual Percentage shall be 10% for fiscal year 2005. For
25    fiscal year 2006, the Annual Percentage shall be 9.75%. For
26    fiscal year 2007, the Annual Percentage shall be 9.75%. For

 

 

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1    fiscal year 2008, the Annual Percentage shall be 7.75%. For
2    fiscal year 2009, the Annual Percentage shall be 9.75%. For
3    fiscal year 2010, the Annual Percentage shall be 9.75%. For
4    fiscal year 2011, the Annual Percentage shall be 8.75%. For
5    fiscal year 2012, the Annual Percentage shall be 8.75%. For
6    fiscal year 2013, the Annual Percentage shall be 9.75%. For
7    fiscal year 2014, the Annual Percentage shall be 9.5%. For
8    all other fiscal years, the Annual Percentage shall be
9    calculated as a fraction, the numerator of which shall be
10    the amount of refunds approved for payment by the
11    Department during the preceding fiscal year as a result of
12    overpayment of tax liability under subsections (a) and
13    (b)(1), (2), and (3) of Section 201 of this Act plus the
14    amount of such refunds remaining approved but unpaid at the
15    end of the preceding fiscal year, minus the amounts
16    transferred into the Income Tax Refund Fund from the
17    Tobacco Settlement Recovery Fund, and the denominator of
18    which shall be the amounts which will be collected pursuant
19    to subsections (a) and (b)(1), (2), and (3) of Section 201
20    of this Act during the preceding fiscal year; except that
21    in State fiscal year 2002, the Annual Percentage shall in
22    no event exceed 7.6%. The Director of Revenue shall certify
23    the Annual Percentage to the Comptroller on the last
24    business day of the fiscal year immediately preceding the
25    fiscal year for which it is to be effective.
26        (2) Beginning on January 1, 1989 and thereafter, the

 

 

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1    Department shall deposit a percentage of the amounts
2    collected pursuant to subsections (a) and (b)(6), (7), and
3    (8), (c) and (d) of Section 201 of this Act into a fund in
4    the State treasury known as the Income Tax Refund Fund. The
5    Department shall deposit 18% of such amounts during the
6    period beginning January 1, 1989 and ending on June 30,
7    1989. Beginning with State fiscal year 1990 and for each
8    fiscal year thereafter, the percentage deposited into the
9    Income Tax Refund Fund during a fiscal year shall be the
10    Annual Percentage. For fiscal years 1999, 2000, and 2001,
11    the Annual Percentage shall be 19%. For fiscal year 2003,
12    the Annual Percentage shall be 27%. For fiscal year 2004,
13    the Annual Percentage shall be 32%. Upon the effective date
14    of this amendatory Act of the 93rd General Assembly, the
15    Annual Percentage shall be 24% for fiscal year 2005. For
16    fiscal year 2006, the Annual Percentage shall be 20%. For
17    fiscal year 2007, the Annual Percentage shall be 17.5%. For
18    fiscal year 2008, the Annual Percentage shall be 15.5%. For
19    fiscal year 2009, the Annual Percentage shall be 17.5%. For
20    fiscal year 2010, the Annual Percentage shall be 17.5%. For
21    fiscal year 2011, the Annual Percentage shall be 17.5%. For
22    fiscal year 2012, the Annual Percentage shall be 17.5%. For
23    fiscal year 2013, the Annual Percentage shall be 14%. For
24    fiscal year 2014, the Annual Percentage shall be 13.4%. For
25    all other fiscal years, the Annual Percentage shall be
26    calculated as a fraction, the numerator of which shall be

 

 

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1    the amount of refunds approved for payment by the
2    Department during the preceding fiscal year as a result of
3    overpayment of tax liability under subsections (a) and
4    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
5    Act plus the amount of such refunds remaining approved but
6    unpaid at the end of the preceding fiscal year, and the
7    denominator of which shall be the amounts which will be
8    collected pursuant to subsections (a) and (b)(6), (7), and
9    (8), (c) and (d) of Section 201 of this Act during the
10    preceding fiscal year; except that in State fiscal year
11    2002, the Annual Percentage shall in no event exceed 23%.
12    The Director of Revenue shall certify the Annual Percentage
13    to the Comptroller on the last business day of the fiscal
14    year immediately preceding the fiscal year for which it is
15    to be effective.
16        (3) The Comptroller shall order transferred and the
17    Treasurer shall transfer from the Tobacco Settlement
18    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
19    in January, 2001, (ii) $35,000,000 in January, 2002, and
20    (iii) $35,000,000 in January, 2003.
21    (d) Expenditures from Income Tax Refund Fund.
22        (1) Beginning January 1, 1989, money in the Income Tax
23    Refund Fund shall be expended exclusively for the purpose
24    of paying refunds resulting from overpayment of tax
25    liability under Section 201 of this Act, for paying rebates
26    under Section 208.1 in the event that the amounts in the

 

 

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1    Homeowners' Tax Relief Fund are insufficient for that
2    purpose, and for making transfers pursuant to this
3    subsection (d).
4        (2) The Director shall order payment of refunds
5    resulting from overpayment of tax liability under Section
6    201 of this Act from the Income Tax Refund Fund only to the
7    extent that amounts collected pursuant to Section 201 of
8    this Act and transfers pursuant to this subsection (d) and
9    item (3) of subsection (c) have been deposited and retained
10    in the Fund.
11        (3) As soon as possible after the end of each fiscal
12    year, the Director shall order transferred and the State
13    Treasurer and State Comptroller shall transfer from the
14    Income Tax Refund Fund to the Personal Property Tax
15    Replacement Fund an amount, certified by the Director to
16    the Comptroller, equal to the excess of the amount
17    collected pursuant to subsections (c) and (d) of Section
18    201 of this Act deposited into the Income Tax Refund Fund
19    during the fiscal year over the amount of refunds resulting
20    from overpayment of tax liability under subsections (c) and
21    (d) of Section 201 of this Act paid from the Income Tax
22    Refund Fund during the fiscal year.
23        (4) As soon as possible after the end of each fiscal
24    year, the Director shall order transferred and the State
25    Treasurer and State Comptroller shall transfer from the
26    Personal Property Tax Replacement Fund to the Income Tax

 

 

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1    Refund Fund an amount, certified by the Director to the
2    Comptroller, equal to the excess of the amount of refunds
3    resulting from overpayment of tax liability under
4    subsections (c) and (d) of Section 201 of this Act paid
5    from the Income Tax Refund Fund during the fiscal year over
6    the amount collected pursuant to subsections (c) and (d) of
7    Section 201 of this Act deposited into the Income Tax
8    Refund Fund during the fiscal year.
9        (4.5) As soon as possible after the end of fiscal year
10    1999 and of each fiscal year thereafter, the Director shall
11    order transferred and the State Treasurer and State
12    Comptroller shall transfer from the Income Tax Refund Fund
13    to the General Revenue Fund any surplus remaining in the
14    Income Tax Refund Fund as of the end of such fiscal year;
15    excluding for fiscal years 2000, 2001, and 2002 amounts
16    attributable to transfers under item (3) of subsection (c)
17    less refunds resulting from the earned income tax credit.
18        (5) This Act shall constitute an irrevocable and
19    continuing appropriation from the Income Tax Refund Fund
20    for the purpose of paying refunds upon the order of the
21    Director in accordance with the provisions of this Section.
22    (e) Deposits into the Education Assistance Fund and the
23Income Tax Surcharge Local Government Distributive Fund.
24    On July 1, 1991, and thereafter, of the amounts collected
25pursuant to subsections (a) and (b) of Section 201 of this Act,
26minus deposits into the Income Tax Refund Fund, the Department

 

 

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1shall deposit 7.3% into the Education Assistance Fund in the
2State Treasury. Beginning July 1, 1991, and continuing through
3January 31, 1993, of the amounts collected pursuant to
4subsections (a) and (b) of Section 201 of the Illinois Income
5Tax Act, minus deposits into the Income Tax Refund Fund, the
6Department shall deposit 3.0% into the Income Tax Surcharge
7Local Government Distributive Fund in the State Treasury.
8Beginning February 1, 1993 and continuing through June 30,
91993, of the amounts collected pursuant to subsections (a) and
10(b) of Section 201 of the Illinois Income Tax Act, minus
11deposits into the Income Tax Refund Fund, the Department shall
12deposit 4.4% into the Income Tax Surcharge Local Government
13Distributive Fund in the State Treasury. Beginning July 1,
141993, and continuing through June 30, 1994, of the amounts
15collected under subsections (a) and (b) of Section 201 of this
16Act, minus deposits into the Income Tax Refund Fund, the
17Department shall deposit 1.475% into the Income Tax Surcharge
18Local Government Distributive Fund in the State Treasury.
19    (f) Deposits into the Fund for the Advancement of
20Education. Beginning February 1, 2015, the Department shall
21deposit the following portions of the revenue realized from the
22tax imposed upon individuals, trusts, and estates by
23subsections (a) and (b) of Section 201 of this Act during the
24preceding month, minus deposits into the Income Tax Refund
25Fund, into the Fund for the Advancement of Education:
26        (1) beginning February 1, 2015, and prior to February

 

 

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1    1, 2025, 1/30; and
2        (2) beginning February 1, 2025, 1/26.
3    If the rate of tax imposed by subsection (a) and (b) of
4Section 201 is reduced pursuant to Section 201.5 of this Act,
5the Department shall not make the deposits required by this
6subsection (f) on or after the effective date of the reduction.
7    (g) Deposits into the Commitment to Human Services Fund.
8Beginning February 1, 2015, the Department shall deposit the
9following portions of the revenue realized from the tax imposed
10upon individuals, trusts, and estates by subsections (a) and
11(b) of Section 201 of this Act during the preceding month,
12minus deposits into the Income Tax Refund Fund, into the
13Commitment to Human Services Fund:
14        (1) beginning February 1, 2015, and prior to February
15    1, 2025, 1/30; and
16        (2) beginning February 1, 2025, 1/26.
17    If the rate of tax imposed by subsection (a) and (b) of
18Section 201 is reduced pursuant to Section 201.5 of this Act,
19the Department shall not make the deposits required by this
20subsection (g) on or after the effective date of the reduction.
21(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24,
22eff. 6-19-13.)