SB0002 97TH GENERAL ASSEMBLY

LRB097 05711 HLH 45775 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB0002

Introduced 1/13/2011, by Sen. William Delgado

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.786 new
30 ILCS 105/6z-85 new
35 ILCS 5/208	from Ch. 120, par. 2-208
35 ILCS 5/517 new

Amends the State Finance Act. Creates the Property Tax Rebate Trust Fund. Provides that moneys in the Fund shall be used to pay rebates to taxpayers who file an individual income tax return for a taxable year beginning in the previous calendar year and are responsible for paying real property taxes on a principal residence located in the State. Provides that $64,583,333 shall be transferred from the General Revenue Fund into the Property Tax Rebate Trust Fund each month. Amends the Illinois Income Tax Act. Provides that the credit for residential real property taxes sunsets on December 31, 2010. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

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 State Finance Act is amended by adding Sections 5.786 and 6z-85 as follows:

(30 ILCS 105/5.786 new)

Sec. 5.786. The Property Tax Rebate Trust Fund.

(30 ILCS 105/6z-85 new)

Sec. 6z-85. The Property Tax Rebate Trust Fund; uses.

(a) The Property Tax Rebate Trust Fund is hereby created as a special fund in the State treasury. Moneys in the Fund shall be used to pay rebates as provided in this Section. Beginning in 2012, as soon as practical after July 15 of each year, the Department of Revenue shall pay a rebate to each taxpayer who files, no later than April 15 of that year, an individual income tax return in the State for a taxable year beginning in the previous calendar year and was responsible for paying real property taxes on his or her principal residence located in the State during the taxable year. Persons filing a joint return shall be treated as one taxpayer, and only one rebate may be issued per residence each year. The amount of the property tax rebate shall be equal to the balance of the Property Tax Rebate Trust Fund as of July 1 of the calendar year divided by the number of eligible taxpayers, rounded to the next lowest dollar amount. The Department of Revenue shall certify the name of each taxpayer who is eligible for a rebate under this Section. The State Comptroller shall mail the rebate warrants to these taxpayers as soon as practical after receipt of the certification from the Department of Revenue. The Comptroller shall include a notice with the rebate warrant advising the taxpayer that the rebate is being provided as a result of the Taxpayer Accountability and Budget Stabilization Act passed by the General Assembly and signed into law by the Governor.

(b) Any rebate payment that is returned or otherwise is not cashed shall be redeposited into the Fund.

(c) Beginning on July 1, 2011, the State Comptroller shall order transferred and the State Treasurer shall transfer $64,583,333 from the General Revenue Fund into the Property Tax Rebate Trust Fund each month.

Section 10. The Illinois Income Tax Act is amended by changing Section 208 and by adding Section 517 as follows:

(35 ILCS 5/208) (from Ch. 120, par. 2-208)

Sec. 208. Tax credit for residential real property taxes. For Beginning with tax years ending on or after December 31, 1991 and ending on or before December 31, 2010, every individual taxpayer shall be entitled to a tax credit equal to 5% of real property taxes paid by such taxpayer during the taxable year on the principal residence of the taxpayer. In the case of multi-unit or multi-use structures and farm dwellings, the taxes on the taxpayer's principal residence shall be that portion of the total taxes which is attributable to such principal residence.

(Source: P.A. 87-17.)

(35 ILCS 5/517 new)

Sec. 517. Property tax rebate information. For taxable years beginning on or after January 1, 2011, for the purposes of making distributions from the Property Tax Rebate Trust Fund, the Department shall print on its standard individual income tax form a provision allowing the taxpayer to indicate whether (i) he or she was responsible for paying real property taxes on his or her principal residence located in the State during the taxable year and (ii) he or she is the only person claiming a rebate for that residence. The Department shall develop a schedule to be attached to the individual income tax form for the purpose of verifying the taxpayer's property tax liability.

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