Full Text of HB5077 97th General Assembly
HB5077 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB5077 Introduced 2/7/2012, by Rep. Sidney H. Mathias SYNOPSIS AS INTRODUCED: |
| 35 ILCS 5/901 | from Ch. 120, par. 9-901 |
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Amends the Illinois Income Tax Act. Provides that the State Treasurer shall transfer each month from the General Revenue Fund to the Local Government Distributive Fund an amount equal to 1/10 of the net revenue realized under Act during
the preceding month. Removes language pertaining to the amount of transfers from the General Revenue Fund to the Local Government Distributive Fund beginning February 1, 2015. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by | 5 | | changing Section 901 as follows: | 6 | | (35 ILCS 5/901) (from Ch. 120, par. 9-901) | 7 | | Sec. 901. Collection Authority. | 8 | | (a) In general. | 9 | | The Department shall collect the taxes imposed by this Act. | 10 | | The Department
shall collect certified past due child support | 11 | | amounts under Section 2505-650
of the Department of Revenue Law | 12 | | (20 ILCS 2505/2505-650). Except as
provided in subsections (c), | 13 | | (e), (f), and (g) of this Section, money collected
pursuant to | 14 | | subsections (a) and (b) of Section 201 of this Act shall be
| 15 | | paid into the General Revenue Fund in the State treasury; money
| 16 | | collected pursuant to subsections (c) and (d) of Section 201 of | 17 | | this Act
shall be paid into the Personal Property Tax | 18 | | Replacement Fund, a special
fund in the State Treasury; and | 19 | | money collected under Section 2505-650 of the
Department of | 20 | | Revenue Law (20 ILCS 2505/2505-650) shall be paid
into the
| 21 | | Child Support Enforcement Trust Fund, a special fund outside | 22 | | the State
Treasury, or
to the State
Disbursement Unit | 23 | | established under Section 10-26 of the Illinois Public Aid
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| 1 | | Code, as directed by the Department of Healthcare and Family | 2 | | Services. | 3 | | (b) Local Government Distributive Fund. | 4 | | Beginning August 1, 1969, and continuing through June 30, | 5 | | 1994, the Treasurer
shall transfer each month from the General | 6 | | Revenue Fund to a special fund in
the State treasury, to be | 7 | | known as the "Local Government Distributive Fund", an
amount | 8 | | equal to 1/12 of the net revenue realized from the tax imposed | 9 | | by
subsections (a) and (b) of Section 201 of this Act during | 10 | | the preceding month.
Beginning July 1, 1994, and continuing | 11 | | through June 30, 1995, the Treasurer
shall transfer each month | 12 | | from the General Revenue Fund to the Local Government
| 13 | | Distributive Fund an amount equal to 1/11 of the net revenue | 14 | | realized from the
tax imposed by subsections (a) and (b) of | 15 | | Section 201 of this Act during the
preceding month. Beginning | 16 | | July 1, 1995 and continuing through January 31, 2011, the | 17 | | Treasurer shall transfer each
month from the General Revenue | 18 | | Fund to the Local Government Distributive Fund
an amount equal | 19 | | to the net of (i) 1/10 of the net revenue realized from the
tax | 20 | | imposed by
subsections (a) and (b) of Section 201 of the | 21 | | Illinois Income Tax Act during
the preceding month
(ii) minus, | 22 | | beginning July 1, 2003 and ending June 30, 2004, $6,666,666, | 23 | | and
beginning July 1,
2004,
zero. Beginning February 1, 2011, | 24 | | and continuing through the effective date of this amendatory | 25 | | Act of the 97th General Assembly January 31, 2015 , the | 26 | | Treasurer shall transfer each month from the General Revenue |
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| 1 | | Fund to the Local Government Distributive Fund an amount equal | 2 | | to the sum of (i) 6% (10% of the ratio of the 3% individual | 3 | | income tax rate prior to 2011 to the 5% individual income tax | 4 | | rate after 2010) of the net revenue realized from the tax | 5 | | imposed by subsections (a) and (b) of Section 201 of this Act | 6 | | upon individuals, trusts, and estates during the preceding | 7 | | month and (ii) 6.86% (10% of the ratio of the 4.8% corporate | 8 | | income tax rate prior to 2011 to the 7% corporate income tax | 9 | | rate after 2010) of the net revenue realized from the tax | 10 | | imposed by subsections (a) and (b) of Section 201 of this Act | 11 | | upon corporations during the preceding month. Beginning upon | 12 | | the effective date of this amendatory Act of the 97th General | 13 | | Assembly, the Treasurer shall transfer each month from the | 14 | | General Revenue Fund to the Local Government Distributive Fund | 15 | | an amount equal to 1/10 of the net revenue realized from the | 16 | | tax imposed by subsections (a) and (b) of Section 201 of this | 17 | | Act during the preceding month. Beginning February 1, 2015 and | 18 | | continuing through January 31, 2025, the Treasurer shall | 19 | | transfer each month from the General Revenue Fund to the Local | 20 | | Government Distributive Fund an amount equal to the sum of (i) | 21 | | 8% (10% of the ratio of the 3% individual income tax rate prior | 22 | | to 2011 to the 3.75% individual income tax rate after 2014) of | 23 | | the net revenue realized from the tax imposed by subsections | 24 | | (a) and (b) of Section 201 of this Act upon individuals, | 25 | | trusts, and estates during the preceding month and (ii) 9.14% | 26 | | (10% of the ratio of the 4.8% corporate income tax rate prior |
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| 1 | | to 2011 to the 5.25% corporate income tax rate after 2014) of | 2 | | the net revenue realized from the tax imposed by subsections | 3 | | (a) and (b) of Section 201 of this Act upon corporations during | 4 | | the preceding month. Beginning February 1, 2025, the Treasurer | 5 | | shall transfer each month from the General Revenue Fund to the | 6 | | Local Government Distributive Fund an amount equal to the sum | 7 | | of (i) 9.23% (10% of the ratio of the 3% individual income tax | 8 | | rate prior to 2011 to the 3.25% individual income tax rate | 9 | | after 2024) of the net revenue realized from the tax imposed by | 10 | | subsections (a) and (b) of Section 201 of this Act upon | 11 | | individuals, trusts, and estates during the preceding month and | 12 | | (ii) 10% of the net revenue realized from the tax imposed by | 13 | | subsections (a) and (b) of Section 201 of this Act upon | 14 | | corporations during the preceding month. Net revenue realized | 15 | | for a month shall be defined as the
revenue from the tax | 16 | | imposed by subsections (a) and (b) of Section 201 of this
Act | 17 | | which is deposited in the General Revenue Fund, the Education | 18 | | Assistance
Fund, the Income Tax Surcharge Local Government | 19 | | Distributive Fund, the Fund for the Advancement of Education, | 20 | | and the Commitment to Human Services Fund during the
month | 21 | | minus the amount paid out of the General Revenue Fund in State | 22 | | warrants
during that same month as refunds to taxpayers for | 23 | | overpayment of liability
under the tax imposed by subsections | 24 | | (a) and (b) of Section 201 of this Act. | 25 | | (c) Deposits Into Income Tax Refund Fund. | 26 | | (1) 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)(1), (2), and | 3 | | (3), of Section 201 of this Act into a fund in the State
| 4 | | treasury known as the Income Tax Refund Fund. The | 5 | | Department shall deposit 6%
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 through
2001, the | 11 | | Annual Percentage shall be 7.1%.
For fiscal year 2003, the | 12 | | Annual Percentage shall be 8%.
For fiscal year 2004, the | 13 | | Annual Percentage shall be 11.7%. Upon the effective date | 14 | | of this amendatory Act of the 93rd General Assembly, the | 15 | | Annual Percentage shall be 10% for fiscal year 2005. For | 16 | | fiscal year 2006, the Annual Percentage shall be 9.75%. For | 17 | | fiscal
year 2007, the Annual Percentage shall be 9.75%. For | 18 | | fiscal year 2008, the Annual Percentage shall be 7.75%. For | 19 | | fiscal year 2009, the Annual Percentage shall be 9.75%. For | 20 | | fiscal year 2010, the Annual Percentage shall be 9.75%. For | 21 | | fiscal year 2011, the Annual Percentage shall be 8.75%. For | 22 | | fiscal year 2012, the Annual Percentage shall be 8.75%. For | 23 | | all other
fiscal years, the
Annual Percentage shall be | 24 | | calculated as a fraction, the numerator of which
shall be | 25 | | the amount of refunds approved for payment by the | 26 | | Department during
the preceding fiscal year as a result of |
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| 1 | | overpayment of tax liability under
subsections (a) and | 2 | | (b)(1), (2), and (3) of Section 201 of this Act plus the
| 3 | | amount of such refunds remaining approved but unpaid at the | 4 | | end of the
preceding fiscal year, minus the amounts | 5 | | transferred into the Income Tax
Refund Fund from the | 6 | | Tobacco Settlement Recovery Fund, and
the denominator of | 7 | | which shall be the amounts which will be collected pursuant
| 8 | | to subsections (a) and (b)(1), (2), and (3) of Section 201 | 9 | | of this Act during
the preceding fiscal year; except that | 10 | | in State fiscal year 2002, the Annual
Percentage shall in | 11 | | no event exceed 7.6%. The Director of Revenue shall
certify | 12 | | the Annual Percentage to the Comptroller on the last | 13 | | business day of
the fiscal year immediately preceding the | 14 | | fiscal year for which it is to be
effective. | 15 | | (2) Beginning on January 1, 1989 and thereafter, the | 16 | | Department shall
deposit a percentage of the amounts | 17 | | collected pursuant to subsections (a)
and (b)(6), (7), and | 18 | | (8), (c) and (d) of Section 201
of this Act into a fund in | 19 | | the State treasury known as the Income Tax
Refund Fund. The | 20 | | Department shall deposit 18% of such amounts during the
| 21 | | period beginning January 1, 1989 and ending on June 30, | 22 | | 1989. Beginning
with State fiscal year 1990 and for each | 23 | | fiscal year thereafter, the
percentage deposited into the | 24 | | Income Tax Refund Fund during a fiscal year
shall be the | 25 | | Annual Percentage. For fiscal years 1999, 2000, and 2001, | 26 | | the
Annual Percentage shall be 19%.
For fiscal year 2003, |
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| 1 | | the Annual Percentage shall be 27%. For fiscal year
2004, | 2 | | the Annual Percentage shall be 32%.
Upon the effective date | 3 | | of this amendatory Act of the 93rd General Assembly, the | 4 | | Annual Percentage shall be 24% for fiscal year 2005.
For | 5 | | fiscal year 2006, the Annual Percentage shall be 20%. For | 6 | | fiscal
year 2007, the Annual Percentage shall be 17.5%. For | 7 | | fiscal year 2008, the Annual Percentage shall be 15.5%. For | 8 | | fiscal year 2009, the Annual Percentage shall be 17.5%. For | 9 | | fiscal year 2010, the Annual Percentage shall be 17.5%. For | 10 | | fiscal year 2011, the Annual Percentage shall be 17.5%. For | 11 | | fiscal year 2012, the Annual Percentage shall be 17.5%. For | 12 | | all other fiscal years, the Annual
Percentage shall be | 13 | | calculated
as a fraction, the numerator of which shall be | 14 | | the amount of refunds
approved for payment by the | 15 | | Department during the preceding fiscal year as
a result of | 16 | | overpayment of tax liability under subsections (a) and | 17 | | (b)(6),
(7), and (8), (c) and (d) of Section 201 of this | 18 | | Act plus the
amount of such refunds remaining approved but | 19 | | unpaid at the end of the
preceding fiscal year, and the | 20 | | denominator of
which shall be the amounts which will be | 21 | | collected pursuant to subsections (a)
and (b)(6), (7), and | 22 | | (8), (c) and (d) of Section 201 of this Act during the
| 23 | | preceding fiscal year; except that in State fiscal year | 24 | | 2002, the Annual
Percentage shall in no event exceed 23%. | 25 | | The Director of Revenue shall
certify the Annual Percentage | 26 | | to the Comptroller on the last business day of
the fiscal |
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| 1 | | year immediately preceding the fiscal year for which it is | 2 | | to be
effective. | 3 | | (3) The Comptroller shall order transferred and the | 4 | | Treasurer shall
transfer from the Tobacco Settlement | 5 | | Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | 6 | | in January, 2001, (ii) $35,000,000 in January, 2002, and
| 7 | | (iii) $35,000,000 in January, 2003. | 8 | | (d) Expenditures from Income Tax Refund Fund. | 9 | | (1) Beginning January 1, 1989, money in the Income Tax | 10 | | Refund Fund
shall be expended exclusively for the purpose | 11 | | of paying refunds resulting
from overpayment of tax | 12 | | liability under Section 201 of this Act, for paying
rebates | 13 | | under Section 208.1 in the event that the amounts in the | 14 | | Homeowners'
Tax Relief Fund are insufficient for that | 15 | | purpose,
and for
making transfers pursuant to this | 16 | | subsection (d). | 17 | | (2) The Director shall order payment of refunds | 18 | | resulting from
overpayment of tax liability under Section | 19 | | 201 of this Act from the
Income Tax Refund Fund only to the | 20 | | extent that amounts collected pursuant
to Section 201 of | 21 | | this Act and transfers pursuant to this subsection (d)
and | 22 | | item (3) of subsection (c) have been deposited and retained | 23 | | in the
Fund. | 24 | | (3) As soon as possible after the end of each fiscal | 25 | | year, the Director
shall
order transferred and the State | 26 | | Treasurer and State Comptroller shall
transfer from the |
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| 1 | | Income Tax Refund Fund to the Personal Property Tax
| 2 | | Replacement Fund an amount, certified by the Director to | 3 | | the Comptroller,
equal to the excess of the amount | 4 | | collected pursuant to subsections (c) and
(d) of Section | 5 | | 201 of this Act deposited into the Income Tax Refund Fund
| 6 | | during the fiscal year over the amount of refunds resulting | 7 | | from
overpayment of tax liability under subsections (c) and | 8 | | (d) of Section 201
of this Act paid from the Income Tax | 9 | | Refund Fund during the fiscal year. | 10 | | (4) As soon as possible after the end of each fiscal | 11 | | year, the Director shall
order transferred and the State | 12 | | Treasurer and State Comptroller shall
transfer from the | 13 | | Personal Property Tax Replacement Fund to the Income Tax
| 14 | | Refund Fund an amount, certified by the Director to the | 15 | | Comptroller, equal
to the excess of the amount of refunds | 16 | | resulting from overpayment of tax
liability under | 17 | | subsections (c) and (d) of Section 201 of this Act paid
| 18 | | from the Income Tax Refund Fund during the fiscal year over | 19 | | the amount
collected pursuant to subsections (c) and (d) of | 20 | | Section 201 of this Act
deposited into the Income Tax | 21 | | Refund Fund during the fiscal year. | 22 | | (4.5) As soon as possible after the end of fiscal year | 23 | | 1999 and of each
fiscal year
thereafter, the Director shall | 24 | | order transferred and the State Treasurer and
State | 25 | | Comptroller shall transfer from the Income Tax Refund Fund | 26 | | to the General
Revenue Fund any surplus remaining in the |
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| 1 | | Income Tax Refund Fund as of the end
of such fiscal year; | 2 | | excluding for fiscal years 2000, 2001, and 2002
amounts | 3 | | attributable to transfers under item (3) of subsection (c) | 4 | | less refunds
resulting from the earned income tax credit. | 5 | | (5) This Act shall constitute an irrevocable and | 6 | | continuing
appropriation from the Income Tax Refund Fund | 7 | | for the purpose of paying
refunds upon the order of the | 8 | | Director in accordance with the provisions of
this Section. | 9 | | (e) Deposits into the Education Assistance Fund and the | 10 | | Income Tax
Surcharge Local Government Distributive Fund. | 11 | | On July 1, 1991, and thereafter, of the amounts collected | 12 | | pursuant to
subsections (a) and (b) of Section 201 of this Act, | 13 | | minus deposits into the
Income Tax Refund Fund, the Department | 14 | | shall deposit 7.3% into the
Education Assistance Fund in the | 15 | | State Treasury. Beginning July 1, 1991,
and continuing through | 16 | | January 31, 1993, of the amounts collected pursuant to
| 17 | | subsections (a) and (b) of Section 201 of the Illinois Income | 18 | | Tax Act, minus
deposits into the Income Tax Refund Fund, the | 19 | | Department shall deposit 3.0%
into the Income Tax Surcharge | 20 | | Local Government Distributive Fund in the State
Treasury. | 21 | | Beginning February 1, 1993 and continuing through June 30, | 22 | | 1993, of
the amounts collected pursuant to subsections (a) and | 23 | | (b) of Section 201 of the
Illinois Income Tax Act, minus | 24 | | deposits into the Income Tax Refund Fund, the
Department shall | 25 | | deposit 4.4% into the Income Tax Surcharge Local Government
| 26 | | Distributive Fund in the State Treasury. Beginning July 1, |
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| 1 | | 1993, and
continuing through June 30, 1994, of the amounts | 2 | | collected under subsections
(a) and (b) of Section 201 of this | 3 | | Act, minus deposits into the Income Tax
Refund Fund, the | 4 | | Department shall deposit 1.475% into the Income Tax Surcharge
| 5 | | Local Government Distributive Fund in the State Treasury. | 6 | | (f) Deposits into the Fund for the Advancement of | 7 | | Education. Beginning February 1, 2015, the Department shall | 8 | | deposit the following portions of the revenue realized from the | 9 | | tax imposed upon individuals, trusts, and estates by | 10 | | subsections (a) and (b) of Section 201 of this Act during the | 11 | | preceding month, minus deposits into the Income Tax Refund | 12 | | Fund, into the Fund for the Advancement of Education: | 13 | | (1) beginning February 1, 2015, and prior to February | 14 | | 1, 2025, 1/30; and | 15 | | (2) beginning February 1, 2025, 1/26. | 16 | | If the rate of tax imposed by subsection (a) and (b) of | 17 | | Section 201 is reduced pursuant to Section 201.5 of this Act, | 18 | | the Department shall not make the deposits required by this | 19 | | subsection (f) on or after the effective date of the reduction. | 20 | | (g) Deposits into the Commitment to Human Services Fund. | 21 | | Beginning February 1, 2015, the Department shall deposit the | 22 | | following portions of the revenue realized from the tax imposed | 23 | | upon individuals, trusts, and estates by subsections (a) and | 24 | | (b) of Section 201 of this Act during the preceding month, | 25 | | minus deposits into the Income Tax Refund Fund, into the | 26 | | Commitment to Human Services Fund: |
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| 1 | | (1) beginning February 1, 2015, and prior to February | 2 | | 1, 2025, 1/30; and | 3 | | (2) beginning February 1, 2025, 1/26. | 4 | | If the rate of tax imposed by subsection (a) and (b) of | 5 | | Section 201 is reduced pursuant to Section 201.5 of this Act, | 6 | | the Department shall not make the deposits required by this | 7 | | subsection (g) on or after the effective date of the reduction. | 8 | | (Source: P.A. 96-45, eff. 7-15-09; 96-328, eff. 8-11-09; | 9 | | 96-959, eff. 7-1-10; 96-1496, eff. 1-13-11; 97-72, eff. | 10 | | 7-1-11.)
| 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law.
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