HB3391 93rd General Assembly

093_HB3391

 
                                     LRB093 09955 SJM 10178 b

 1        AN ACT concerning schools.

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

 4                             ARTICLE 15

 5        Section 15-5.  The State Finance Act is amended by adding
 6    Sections 5.595 and 6z-59 as follows:

 7        (30 ILCS 105/5.595 new)
 8        Sec. 5.595. The School District Property Tax Relief Fund.

 9        (30 ILCS 105/6z-59 new)
10        Sec. 6z-59.  School District Property  Tax  Relief  Fund.
11    The  School District Property Tax Relief Fund is created as a
12    special fund in the State treasury.  All interest  earned  on
13    moneys in the Fund shall be deposited into the Fund.
14        (a)  As used in this Section:
15        "Department" means the Illinois Department of Revenue.
16        "School  district  property  tax  relief grant" means the
17    money designated to be distributed to a school district  from
18    the  moneys  appropriated  by  the  General Assembly from the
19    School District Property Tax Relief Fund.
20        (b)  Between November 15 and 17 of each year beginning in
21    2003,  the  Department  must  certify  the  amount  of  money
22    available for school district property tax relief grants. The
23    amount available is equal to the amount appropriated  by  the
24    General  Assembly  or  the unencumbered amount in the Fund at
25    the time of certification, whichever is less.
26        (c)  Between November 15 and 17 of each year beginning in
27    2003, the Department must calculate  each  school  district's
28    grant amount.
29        The  amount  of  the grant for each school district for a
 
                            -2-      LRB093 09955 SJM 10178 b
 1    tax year is calculated as follows: (i) each  school  district
 2    must  certify  to the Department the rate of the tax extended
 3    for educational purposes for the 2001 tax  year  (payable  in
 4    2002)  for  the  school  district;  (ii)  the Department must
 5    determine the equalized assessed value (EAV) of  all  taxable
 6    property  in  the  school district for the tax year preceding
 7    the then current tax year; (iii) the rate determined in  item
 8    (i)  is  multiplied  by the EAV determined in item (ii); (iv)
 9    the amounts determined in item (iii) for all school districts
10    are added together to reach an aggregate total for all school
11    districts; and (v) the amount certified by the Department  as
12    available for distribution for that tax year is multiplied by
13    the  amount  determined in item (iii) and then the product is
14    divided by the amount determined in  item  (iv).  The  result
15    determined  in item (v) is the grant amount for the tax year.
16    For example:
17             (1)  Total grant amount certified by the  Department
18        for  the  tax  year  is  $5,000,000  to be distributed to
19        school districts A and B.
20             (2)  School district A:
21                  (A)  Tax rate for educational purposes for  the
22             2001 tax year was 1.50%.
23                  (B)  Equalized  assessed  value  of all taxable
24             property in school district A for the preceding  tax
25             year was $50,000,000.
26             (3)  School district B:
27                  (A)  Tax  rate for educational purposes for the
28             2001 tax year was 1.35%.
29                  (B)  Equalized assessed value  of  all  taxable
30             property  in school district B for the preceding tax
31             year was $75,000,000.
32    For school  district  A,  the  tax  rate  multiplied  by  the
33    preceding  tax year's equalized assessed value of all taxable
34    property is $750,000 (1.50% multiplied by  $50,000,000).  For
 
                            -3-      LRB093 09955 SJM 10178 b
 1    school  district  B, the tax rate multiplied by the preceding
 2    tax year's equalized assessed value of all  taxable  property
 3    is  $1,012,500  (1.35% multiplied by $75,000,000). The sum of
 4    these 2 amounts is $1,762,500. The grant for school  district
 5    A  is $5,000,000 (the total amount of grant moneys available)
 6    multiplied by $750,000 and then the  product  is  divided  by
 7    $1,762,500.  School  district  A's  grant  is $2,127,660. The
 8    grant for school district B is $5,000,000 (the  total  amount
 9    of  grant moneys available) multiplied by $1,012,500 and then
10    the product is divided by  $1,762,500.  School  district  B's
11    grant is $2,872,340.
12        The   Department   must  adopt  rules  to  determine  the
13    computation of the grant amount for a  school  district  that
14    has undergone school district reorganization under Article 7,
15    7A,  11A,  11B,  or  11D  of  the  School  Code (for example:
16    consolidation, conversion into a different type of  district,
17    or creation of a new district).
18        (d)  Between November 15 and 17 of each year beginning in
19    2003, the Department must certify to the county clerk of each
20    county the amount of the grant for each school district lying
21    wholly  or  partly  in  the  county  to be paid to the county
22    collector for distribution to the school district. The amount
23    of the grant for a school district that lies  partly  in  the
24    county shall be that amount which bears the same ratio to the
25    grant for the whole school district as the equalized assessed
26    value  of the taxable property in the school district for the
27    preceding tax year that lies  in  the  county  bears  to  the
28    equalized  assessed  value  of  all  taxable  property in the
29    school district for the preceding tax year.
30        (e)  Upon receipt of  a  notice  from  the  county  clerk
31    required  under  Section 18-178 of the Property Tax Code that
32    the extension for educational purposes  has  been  determined
33    and  abated  for  each  school  district  or part of a school
34    district in the county, the Department must  certify  to  the
 
                            -4-      LRB093 09955 SJM 10178 b
 1    Comptroller  the  amount  of the school district property tax
 2    relief  grant  to  be  paid  to  the  county  collector.  The
 3    Comptroller must  promptly  pay  the  grants  to  the  county
 4    collector.  Upon  receipt of the school district property tax
 5    relief grants, the county collector must pay  the  grants  to
 6    the respective school districts within 5 business days.

 7        Section 15-10.  The Illinois Income Tax Act is amended by
 8    changing  Sections  201,  804,  and 901 and by adding Section
 9    202.5 as follows:

10        (35 ILCS 5/201) (from Ch. 120, par. 2-201)
11        Sec. 201.  Tax Imposed.
12        (a)  In general.  A tax measured by net income is  hereby
13    imposed  on  every  individual, corporation, trust and estate
14    for each taxable year ending  after  July  31,  1969  on  the
15    privilege  of earning or receiving income in or as a resident
16    of this State. Such tax shall be in  addition  to  all  other
17    occupation or privilege taxes imposed by this State or by any
18    municipal corporation or political subdivision thereof.
19        (b)  Rates.   The  tax  imposed by subsection (a) of this
20    Section shall be determined as follows, except as adjusted by
21    subsection (d-1):
22             (1)  In the case of an individual, trust or  estate,
23        for taxable years ending prior to July 1, 1989, an amount
24        equal  to  2  1/2%  of  the taxpayer's net income for the
25        taxable year.
26             (2)  In the case of an individual, trust or  estate,
27        for  taxable  years  beginning  prior to July 1, 1989 and
28        ending after June 30, 1989, an amount equal to the sum of
29        (i) 2 1/2% of the taxpayer's net income  for  the  period
30        prior to July 1, 1989, as calculated under Section 202.3,
31        and  (ii)  3% of the taxpayer's net income for the period
32        after June 30, 1989, as calculated under Section 202.3.
 
                            -5-      LRB093 09955 SJM 10178 b
 1             (3)  In the case of an individual, trust or  estate,
 2        for  taxable  years  beginning  after  June  30, 1989 and
 3        ending prior to July 1, 2003, an amount equal  to  3%  of
 4        the taxpayer's net income for the taxable year.
 5             (4)  In the case of an individual, trust, or estate,
 6        for  taxable  years  beginning  prior to July 1, 2003 and
 7        ending after June 30, 2003, an amount equal to the sum of
 8        (i) 3% of the taxpayer's net income for the period  prior
 9        to  July  1, 2003, as calculated under Section 202.5, and
10        (ii) 4% of the taxpayer's net income for the period after
11        June 30, 2003, as calculated under Section 202.5 (Blank).
12             (5)  In the case of an individual, trust, or estate,
13        for taxable years  beginning  after  June  30,  2003,  an
14        amount  equal  to 4% of the taxpayer's net income for the
15        taxable year (Blank).
16             (6)  In the case of a corporation, for taxable years
17        ending prior to July 1, 1989, an amount equal  to  4%  of
18        the taxpayer's net income for the taxable year.
19             (7)  In the case of a corporation, for taxable years
20        beginning prior to July 1, 1989 and ending after June 30,
21        1989,  an  amount  equal  to  the  sum  of  (i) 4% of the
22        taxpayer's net income for the period  prior  to  July  1,
23        1989, as calculated under Section 202.3, and (ii) 4.8% of
24        the  taxpayer's  net income for the period after June 30,
25        1989, as calculated under Section 202.3.
26             (8)  In the case of a corporation, for taxable years
27        beginning after June 30, 1989 and ending prior to July 1,
28        2003, an amount equal  to  4.8%  of  the  taxpayer's  net
29        income for the taxable year.
30             (9)  In  the  case  a corporation, for taxable years
31        beginning prior to July 1, 2003 and ending after June 30,
32        2003, an amount equal to the  sum  of  (i)  4.8%  of  the
33        taxpayer's  net  income  for  the period prior to July 1,
34        2003, as calculated under Section 202.5, and (ii) 6.4% of
 
                            -6-      LRB093 09955 SJM 10178 b
 1        the taxpayer's net income for the period after  June  30,
 2        2003, as calculated under Section 202.5.
 3             (10)  In  the  case  of  a  corporation, for taxable
 4        years beginning after June 30, 2003, an amount  equal  to
 5        6.4% of the taxpayer's net income for the taxable year.
 6        (c)  Personal   Property   Tax  Replacement  Income  Tax.
 7    Beginning on July 1, 1979 and thereafter, in addition to such
 8    income  tax,  there  is  also  hereby  imposed  the  Personal
 9    Property Tax Replacement Income Tax measured by net income on
10    every  corporation  (including  Subchapter  S  corporations),
11    partnership and trust, for each  taxable  year  ending  after
12    June  30,  1979.   Such taxes are imposed on the privilege of
13    earning or receiving income in  or  as  a  resident  of  this
14    State.   The  Personal  Property  Tax  Replacement Income Tax
15    shall be in addition to the income tax imposed by subsections
16    (a) and (b) of this Section and  in  addition  to  all  other
17    occupation or privilege taxes imposed by this State or by any
18    municipal corporation or political subdivision thereof.
19        (d)  Additional  Personal Property Tax Replacement Income
20    Tax Rates.  The personal property tax replacement income  tax
21    imposed by this subsection and subsection (c) of this Section
22    in  the  case  of  a  corporation,  other than a Subchapter S
23    corporation and except as adjusted by subsection (d-1), shall
24    be an additional amount equal to 2.85% of such taxpayer's net
25    income for the taxable year, except that beginning on January
26    1, 1981, and thereafter, the rate of 2.85% specified in  this
27    subsection  shall  be  reduced  to 2.5%, and in the case of a
28    partnership, trust or a Subchapter S corporation shall be  an
29    additional amount equal to 1.5% of such taxpayer's net income
30    for the taxable year.
31        (d-1)  Rate  reduction  for certain foreign insurers.  In
32    the case of a foreign insurer, as defined by Section 35A-5 of
33    the Illinois  Insurance  Code,  whose  state  or  country  of
34    domicile   imposes   on  insurers  domiciled  in  Illinois  a
 
                            -7-      LRB093 09955 SJM 10178 b
 1    retaliatory tax (excluding any insurer  whose  premiums  from
 2    reinsurance  assumed  are  50% or more of its total insurance
 3    premiums as determined under paragraph (2) of subsection  (b)
 4    of   Section   304,   except   that   for  purposes  of  this
 5    determination  premiums  from  reinsurance  do  not   include
 6    premiums   from  inter-affiliate  reinsurance  arrangements),
 7    beginning with taxable years ending on or after December  31,
 8    1999,  the sum of the rates of tax imposed by subsections (b)
 9    and (d) shall be reduced (but not increased) to the  rate  at
10    which  the total amount of tax imposed under this Act, net of
11    all credits allowed under this Act, shall equal (i) the total
12    amount of tax that would be imposed on the foreign  insurer's
13    net income allocable to Illinois for the taxable year by such
14    foreign  insurer's  state  or country of domicile if that net
15    income were subject to all income taxes and taxes measured by
16    net income imposed by such foreign insurer's state or country
17    of domicile, net of all credits allowed or  (ii)  a  rate  of
18    zero  if no such tax is imposed on such income by the foreign
19    insurer's  state  of  domicile.  For  the  purposes  of  this
20    subsection  (d-1),  an  inter-affiliate  includes  a   mutual
21    insurer under common management.
22             (1)  For  the  purposes  of  subsection (d-1), in no
23        event shall the sum  of  the  rates  of  tax  imposed  by
24        subsections  (b)  and  (d)  be  reduced below the rate at
25        which the sum of:
26                  (A)  the total amount of tax  imposed  on  such
27             foreign  insurer  under this Act for a taxable year,
28             net of all credits allowed under this Act, plus
29                  (B)  the privilege tax imposed by  Section  409
30             of  the  Illinois Insurance Code, the fire insurance
31             company tax  imposed  by  Section  12  of  the  Fire
32             Investigation  Act,  and  the  fire department taxes
33             imposed  under  Section  11-10-1  of  the   Illinois
34             Municipal Code,
 
                            -8-      LRB093 09955 SJM 10178 b
 1        equals  1.25% of the net taxable premiums written for the
 2        taxable year, as described by subsection (1)  of  Section
 3        409  of  the Illinois Insurance Code. This paragraph will
 4        in no event increase the rates imposed under  subsections
 5        (b) and (d).
 6             (2)  Any  reduction  in  the rates of tax imposed by
 7        this subsection shall be applied first against the  rates
 8        imposed  by subsection (b) and only after the tax imposed
 9        by subsection (a) net of all credits allowed  under  this
10        Section  other  than  the credit allowed under subsection
11        (i) has been reduced to zero, against the  rates  imposed
12        by subsection (d).
13        This  subsection  (d-1)  is exempt from the provisions of
14    Section 250.
15        (e)  Investment credit.  A taxpayer shall  be  allowed  a
16    credit  against  the Personal Property Tax Replacement Income
17    Tax for investment in qualified property.
18             (1)  A taxpayer shall be allowed a credit  equal  to
19        .5%  of the basis of qualified property placed in service
20        during the taxable year, provided such property is placed
21        in service on or after July  1,  1984.   There  shall  be
22        allowed an additional credit equal to .5% of the basis of
23        qualified  property  placed in service during the taxable
24        year, provided such property is placed in service  on  or
25        after  July  1,  1986, and the taxpayer's base employment
26        within Illinois has increased by  1%  or  more  over  the
27        preceding year as determined by the taxpayer's employment
28        records  filed with the Illinois Department of Employment
29        Security.  Taxpayers who are new  to  Illinois  shall  be
30        deemed  to  have met the 1% growth in base employment for
31        the first year in which they file employment records with
32        the Illinois  Department  of  Employment  Security.   The
33        provisions  added  to  this Section by Public Act 85-1200
34        (and restored by Public Act 87-895) shall be construed as
 
                            -9-      LRB093 09955 SJM 10178 b
 1        declaratory of existing law and not as a  new  enactment.
 2        If,  in  any year, the increase in base employment within
 3        Illinois over the preceding year is  less  than  1%,  the
 4        additional  credit  shall  be  limited to that percentage
 5        times a fraction, the numerator of which is .5%  and  the
 6        denominator  of  which  is  1%, but shall not exceed .5%.
 7        The investment credit shall not be allowed to the  extent
 8        that  it  would  reduce a taxpayer's liability in any tax
 9        year  below  zero,  nor  may  any  credit  for  qualified
10        property be allowed for any year other than the  year  in
11        which the property was placed in service in Illinois. For
12        tax years ending on or after December 31, 1987, and on or
13        before December 31, 1988, the credit shall be allowed for
14        the  tax year in which the property is placed in service,
15        or, if the amount of the credit exceeds the tax liability
16        for that year, whether it exceeds the original  liability
17        or  the  liability  as  later amended, such excess may be
18        carried forward and applied to the tax liability of the 5
19        taxable years following the excess credit  years  if  the
20        taxpayer  (i)  makes investments which cause the creation
21        of a  minimum  of  2,000  full-time  equivalent  jobs  in
22        Illinois,   (ii)   is   located  in  an  enterprise  zone
23        established pursuant to the Illinois Enterprise Zone  Act
24        and  (iii) is certified by the Department of Commerce and
25        Community Affairs  as  complying  with  the  requirements
26        specified  in  clause  (i) and (ii) by July 1, 1986.  The
27        Department of Commerce and Community Affairs shall notify
28        the Department of  Revenue  of  all  such  certifications
29        immediately.  For  tax  years  ending  after December 31,
30        1988, the credit shall be allowed for  the  tax  year  in
31        which  the  property  is  placed  in  service, or, if the
32        amount of the credit exceeds the tax liability  for  that
33        year,  whether  it  exceeds the original liability or the
34        liability as later amended, such excess  may  be  carried
 
                            -10-     LRB093 09955 SJM 10178 b
 1        forward and applied to the tax liability of the 5 taxable
 2        years following the excess credit years. The credit shall
 3        be  applied  to  the  earliest  year for which there is a
 4        liability. If there is credit from more than one tax year
 5        that is available to offset a liability,  earlier  credit
 6        shall be applied first.
 7             (2)  The  term  "qualified  property" means property
 8        which:
 9                  (A)  is  tangible,   whether   new   or   used,
10             including  buildings  and  structural  components of
11             buildings and signs that are real property, but  not
12             including land or improvements to real property that
13             are not a structural component of a building such as
14             landscaping,   sewer   lines,  local  access  roads,
15             fencing, parking lots, and other appurtenances;
16                  (B)  is depreciable pursuant to Section 167  of
17             the  Internal  Revenue  Code,  except  that  "3-year
18             property" as defined in Section 168(c)(2)(A) of that
19             Code is not eligible for the credit provided by this
20             subsection (e);
21                  (C)  is  acquired  by  purchase  as  defined in
22             Section 179(d) of the Internal Revenue Code;
23                  (D)  is used in Illinois by a taxpayer  who  is
24             primarily  engaged  in  manufacturing,  or in mining
25             coal or fluorite, or in retailing; and
26                  (E)  has not previously been used  in  Illinois
27             in  such  a  manner  and  by  such a person as would
28             qualify for the credit provided by  this  subsection
29             (e) or subsection (f).
30             (3)  For    purposes   of   this   subsection   (e),
31        "manufacturing" means the material staging and production
32        of tangible  personal  property  by  procedures  commonly
33        regarded  as  manufacturing,  processing, fabrication, or
34        assembling which changes some existing material into  new
 
                            -11-     LRB093 09955 SJM 10178 b
 1        shapes, new qualities, or new combinations.  For purposes
 2        of  this  subsection (e) the term "mining" shall have the
 3        same meaning as the term "mining" in  Section  613(c)  of
 4        the   Internal   Revenue  Code.   For  purposes  of  this
 5        subsection (e), the term "retailing" means  the  sale  of
 6        tangible   personal  property  or  services  rendered  in
 7        conjunction with the sale of tangible consumer  goods  or
 8        commodities.
 9             (4)  The  basis  of  qualified property shall be the
10        basis used to  compute  the  depreciation  deduction  for
11        federal income tax purposes.
12             (5)  If the basis of the property for federal income
13        tax  depreciation purposes is increased after it has been
14        placed in service in Illinois by the taxpayer, the amount
15        of such increase  shall  be  deemed  property  placed  in
16        service on the date of such increase in basis.
17             (6)  The  term  "placed  in  service" shall have the
18        same meaning as under Section 46 of the Internal  Revenue
19        Code.
20             (7)  If during any taxable year, any property ceases
21        to  be  qualified  property  in the hands of the taxpayer
22        within 48 months after being placed in  service,  or  the
23        situs of any qualified property is moved outside Illinois
24        within  48  months  after  being  placed  in service, the
25        Personal Property Tax Replacement  Income  Tax  for  such
26        taxable  year shall be increased.  Such increase shall be
27        determined by (i) recomputing the investment credit which
28        would have been allowed for the year in which credit  for
29        such  property was originally allowed by eliminating such
30        property from such computation and, (ii) subtracting such
31        recomputed credit from the amount  of  credit  previously
32        allowed.  For  the  purposes  of  this  paragraph  (7), a
33        reduction of the basis of  qualified  property  resulting
34        from  a  redetermination  of  the purchase price shall be
 
                            -12-     LRB093 09955 SJM 10178 b
 1        deemed a disposition of qualified property to the  extent
 2        of such reduction.
 3             (8)  Unless  the  investment  credit  is extended by
 4        law, the basis of qualified property  shall  not  include
 5        costs  incurred after December 31, 2003, except for costs
 6        incurred pursuant to a binding contract entered  into  on
 7        or before December 31, 2003.
 8             (9)  Each  taxable  year  ending before December 31,
 9        2000, a partnership may elect  to  pass  through  to  its
10        partners the credits to which the partnership is entitled
11        under  this  subsection  (e)  for  the  taxable  year.  A
12        partner may use the credit allocated to him or her  under
13        this   paragraph   only   against   the  tax  imposed  in
14        subsections  (c)  and  (d)  of  this  Section.   If   the
15        partnership  makes  that election, those credits shall be
16        allocated  among  the  partners  in  the  partnership  in
17        accordance with the rules set forth in Section 704(b)  of
18        the  Internal  Revenue  Code,  and  the rules promulgated
19        under that Section,  and  the  allocated  amount  of  the
20        credits shall be allowed to the partners for that taxable
21        year.   The  partnership  shall make this election on its
22        Personal Property Tax Replacement Income Tax  return  for
23        that  taxable  year.  The  election  to  pass through the
24        credits shall be irrevocable.
25             For taxable years ending on or  after  December  31,
26        2000,  a  partner  that  qualifies  its partnership for a
27        subtraction under subparagraph (I) of  paragraph  (2)  of
28        subsection  (d)  of  Section  203  or  a shareholder that
29        qualifies a Subchapter S corporation  for  a  subtraction
30        under subparagraph (S) of paragraph (2) of subsection (b)
31        of  Section  203  shall  be  allowed  a credit under this
32        subsection (e) equal to its share of  the  credit  earned
33        under  this subsection (e) during the taxable year by the
34        partnership or Subchapter S  corporation,  determined  in
 
                            -13-     LRB093 09955 SJM 10178 b
 1        accordance   with   the   determination   of  income  and
 2        distributive share of income under Sections 702  and  704
 3        and  Subchapter  S  of  the  Internal Revenue Code.  This
 4        paragraph is exempt from the provisions of Section 250.
 5          (f)  Investment credit; Enterprise Zone.
 6             (1)  A taxpayer shall be allowed  a  credit  against
 7        the  tax  imposed  by  subsections  (a)  and  (b) of this
 8        Section for investment in  qualified  property  which  is
 9        placed  in service in an Enterprise Zone created pursuant
10        to the  Illinois  Enterprise  Zone  Act.   For  partners,
11        shareholders  of Subchapter S corporations, and owners of
12        limited liability companies, if the liability company  is
13        treated  as  a  partnership  for  purposes of federal and
14        State income taxation, there shall be  allowed  a  credit
15        under  this subsection (f) to be determined in accordance
16        with the determination of income and  distributive  share
17        of  income under Sections 702 and 704 and Subchapter S of
18        the Internal Revenue Code.  The credit shall  be  .5%  of
19        the  basis  for  such  property.   The  credit  shall  be
20        available  only in the taxable year in which the property
21        is placed in service in the Enterprise Zone and shall not
22        be  allowed  to  the  extent  that  it  would  reduce   a
23        taxpayer's  liability  for the tax imposed by subsections
24        (a) and (b) of this Section to below zero.  For tax years
25        ending on or after December 31, 1985, the credit shall be
26        allowed for the tax year in which the property is  placed
27        in  service,  or, if the amount of the credit exceeds the
28        tax liability for  that  year,  whether  it  exceeds  the
29        original  liability  or  the  liability as later amended,
30        such excess may be carried forward and applied to the tax
31        liability of the 5 taxable  years  following  the  excess
32        credit year.  The credit shall be applied to the earliest
33        year  for which there is a liability.  If there is credit
34        from more than one tax year that is available to offset a
 
                            -14-     LRB093 09955 SJM 10178 b
 1        liability, the credit accruing first  in  time  shall  be
 2        applied first.
 3             (2)  The  term  qualified  property  means  property
 4        which:
 5                  (A)  is   tangible,   whether   new   or  used,
 6             including buildings  and  structural  components  of
 7             buildings;
 8                  (B)  is  depreciable pursuant to Section 167 of
 9             the  Internal  Revenue  Code,  except  that  "3-year
10             property" as defined in Section 168(c)(2)(A) of that
11             Code is not eligible for the credit provided by this
12             subsection (f);
13                  (C)  is acquired  by  purchase  as  defined  in
14             Section 179(d) of the Internal Revenue Code;
15                  (D)  is  used  in  the  Enterprise  Zone by the
16             taxpayer; and
17                  (E)  has not been previously used  in  Illinois
18             in  such  a  manner  and  by  such a person as would
19             qualify for the credit provided by  this  subsection
20             (f) or subsection (e).
21             (3)  The  basis  of  qualified property shall be the
22        basis used to  compute  the  depreciation  deduction  for
23        federal income tax purposes.
24             (4)  If the basis of the property for federal income
25        tax  depreciation purposes is increased after it has been
26        placed in service in the Enterprise Zone by the taxpayer,
27        the amount of such  increase  shall  be  deemed  property
28        placed in service on the date of such increase in basis.
29             (5)  The  term  "placed  in  service" shall have the
30        same meaning as under Section 46 of the Internal  Revenue
31        Code.
32             (6)  If during any taxable year, any property ceases
33        to  be  qualified  property  in the hands of the taxpayer
34        within 48 months after being placed in  service,  or  the
 
                            -15-     LRB093 09955 SJM 10178 b
 1        situs  of  any  qualified  property  is moved outside the
 2        Enterprise Zone within 48 months after  being  placed  in
 3        service, the tax imposed under subsections (a) and (b) of
 4        this  Section  for  such taxable year shall be increased.
 5        Such increase shall be determined by (i) recomputing  the
 6        investment  credit  which would have been allowed for the
 7        year in which credit for  such  property  was  originally
 8        allowed   by   eliminating   such   property   from  such
 9        computation, and (ii) subtracting such recomputed  credit
10        from  the  amount  of credit previously allowed.  For the
11        purposes of this paragraph (6), a reduction of the  basis
12        of qualified property resulting from a redetermination of
13        the  purchase  price  shall  be  deemed  a disposition of
14        qualified property to the extent of such reduction.
15          (g)  Jobs Tax Credit; Enterprise Zone and Foreign Trade
16    Zone or Sub-Zone.
17             (1)  A taxpayer conducting a trade or business in an
18        enterprise zone or a High Impact Business  designated  by
19        the   Department   of   Commerce  and  Community  Affairs
20        conducting a trade or business in a federally  designated
21        Foreign  Trade Zone or Sub-Zone shall be allowed a credit
22        against the tax imposed by subsections  (a)  and  (b)  of
23        this  Section in the amount of $500 per eligible employee
24        hired to work in the zone during the taxable year.
25             (2)  To qualify for the credit:
26                  (A)  the taxpayer must hire 5 or more  eligible
27             employees to work in an enterprise zone or federally
28             designated Foreign Trade Zone or Sub-Zone during the
29             taxable year;
30                  (B)  the taxpayer's total employment within the
31             enterprise  zone  or  federally  designated  Foreign
32             Trade  Zone  or  Sub-Zone must increase by 5 or more
33             full-time employees beyond  the  total  employed  in
34             that  zone  at  the end of the previous tax year for
 
                            -16-     LRB093 09955 SJM 10178 b
 1             which a jobs  tax  credit  under  this  Section  was
 2             taken,  or beyond the total employed by the taxpayer
 3             as of December 31, 1985, whichever is later; and
 4                  (C)  the eligible employees  must  be  employed
 5             180 consecutive days in order to be deemed hired for
 6             purposes of this subsection.
 7             (3)  An  "eligible  employee"  means an employee who
 8        is:
 9                  (A)  Certified by the  Department  of  Commerce
10             and  Community  Affairs  as  "eligible for services"
11             pursuant to regulations  promulgated  in  accordance
12             with  Title  II of the Job Training Partnership Act,
13             Training Services for the Disadvantaged or Title III
14             of the Job Training Partnership Act, Employment  and
15             Training Assistance for Dislocated Workers Program.
16                  (B)  Hired   after   the   enterprise  zone  or
17             federally designated Foreign Trade Zone or  Sub-Zone
18             was  designated or the trade or business was located
19             in that zone, whichever is later.
20                  (C)  Employed in the enterprise zone or Foreign
21             Trade Zone or Sub-Zone. An employee is  employed  in
22             an  enterprise  zone or federally designated Foreign
23             Trade Zone or Sub-Zone if his services are  rendered
24             there  or  it  is  the  base  of  operations for the
25             services performed.
26                  (D)  A full-time employee working  30  or  more
27             hours per week.
28             (4)  For  tax  years ending on or after December 31,
29        1985 and prior to December 31, 1988, the credit shall  be
30        allowed  for the tax year in which the eligible employees
31        are hired.  For tax years ending on or after December 31,
32        1988, the credit  shall  be  allowed  for  the  tax  year
33        immediately  following the tax year in which the eligible
34        employees are hired.  If the amount of the credit exceeds
 
                            -17-     LRB093 09955 SJM 10178 b
 1        the tax liability for that year, whether it  exceeds  the
 2        original  liability  or  the  liability as later amended,
 3        such excess may be carried forward and applied to the tax
 4        liability of the 5 taxable  years  following  the  excess
 5        credit year.  The credit shall be applied to the earliest
 6        year  for  which there is a liability. If there is credit
 7        from more than one tax year that is available to offset a
 8        liability, earlier credit shall be applied first.
 9             (5)  The Department of Revenue shall promulgate such
10        rules and regulations as may be deemed necessary to carry
11        out the purposes of this subsection (g).
12             (6)  The credit  shall  be  available  for  eligible
13        employees hired on or after January 1, 1986.
14        (h)  Investment credit; High Impact Business.
15             (1)  Subject to subsections (b) and (b-5) of Section
16        5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
17        be   allowed   a   credit  against  the  tax  imposed  by
18        subsections (a) and (b) of this Section for investment in
19        qualified property  which  is  placed  in  service  by  a
20        Department  of  Commerce and Community Affairs designated
21        High Impact Business.  The credit shall  be  .5%  of  the
22        basis  for  such  property.   The  credit  shall  not  be
23        available  (i) until the minimum investments in qualified
24        property set forth in subdivision  (a)(3)(A)  of  Section
25        5.5  of  the  Illinois  Enterprise  Zone  Act  have  been
26        satisfied or (ii) until the time authorized in subsection
27        (b-5)  of  the  Illinois Enterprise Zone Act for entities
28        designated as High Impact Businesses  under  subdivisions
29        (a)(3)(B), (a)(3)(C), and (a)(3)(D) of Section 5.5 of the
30        Illinois Enterprise Zone Act, and shall not be allowed to
31        the  extent  that  it would reduce a taxpayer's liability
32        for the tax imposed by subsections (a) and  (b)  of  this
33        Section  to  below  zero.   The credit applicable to such
34        investments shall be taken in the taxable year  in  which
 
                            -18-     LRB093 09955 SJM 10178 b
 1        such  investments  have  been  completed.  The credit for
 2        additional investments beyond the minimum investment by a
 3        designated  high   impact   business   authorized   under
 4        subdivision  (a)(3)(A)  of  Section  5.5  of the Illinois
 5        Enterprise Zone  Act  shall  be  available  only  in  the
 6        taxable  year  in which the property is placed in service
 7        and shall not be allowed to  the  extent  that  it  would
 8        reduce  a  taxpayer's  liability  for  the tax imposed by
 9        subsections (a) and (b) of this Section  to  below  zero.
10        For  tax  years ending on or after December 31, 1987, the
11        credit shall be allowed for the tax  year  in  which  the
12        property  is  placed in service, or, if the amount of the
13        credit exceeds the tax liability for that  year,  whether
14        it  exceeds  the  original  liability or the liability as
15        later amended, such excess may  be  carried  forward  and
16        applied  to  the  tax  liability  of  the 5 taxable years
17        following the excess credit year.  The  credit  shall  be
18        applied  to  the  earliest  year  for  which  there  is a
19        liability.  If there is credit from  more  than  one  tax
20        year  that is available to offset a liability, the credit
21        accruing first in time shall be applied first.
22             Changes made in this subdivision  (h)(1)  by  Public
23        Act 88-670 restore changes made by Public Act 85-1182 and
24        reflect existing law.
25             (2)  The  term  qualified  property  means  property
26        which:
27                  (A)  is   tangible,   whether   new   or  used,
28             including buildings  and  structural  components  of
29             buildings;
30                  (B)  is  depreciable pursuant to Section 167 of
31             the  Internal  Revenue  Code,  except  that  "3-year
32             property" as defined in Section 168(c)(2)(A) of that
33             Code is not eligible for the credit provided by this
34             subsection (h);
 
                            -19-     LRB093 09955 SJM 10178 b
 1                  (C)  is acquired  by  purchase  as  defined  in
 2             Section 179(d) of the Internal Revenue Code; and
 3                  (D)  is  not  eligible  for the Enterprise Zone
 4             Investment Credit provided by subsection (f) of this
 5             Section.
 6             (3)  The basis of qualified property  shall  be  the
 7        basis  used  to  compute  the  depreciation deduction for
 8        federal income tax purposes.
 9             (4)  If the basis of the property for federal income
10        tax depreciation purposes is increased after it has  been
11        placed in service in a federally designated Foreign Trade
12        Zone or Sub-Zone located in Illinois by the taxpayer, the
13        amount  of  such increase shall be deemed property placed
14        in service on the date of such increase in basis.
15             (5)  The term "placed in  service"  shall  have  the
16        same  meaning as under Section 46 of the Internal Revenue
17        Code.
18             (6)  If during any taxable year ending on or  before
19        December  31,  1996,  any property ceases to be qualified
20        property in the hands of the taxpayer  within  48  months
21        after  being  placed  in  service,  or  the  situs of any
22        qualified property is moved outside  Illinois  within  48
23        months  after  being  placed  in service, the tax imposed
24        under subsections (a) and (b) of this  Section  for  such
25        taxable  year shall be increased.  Such increase shall be
26        determined by (i) recomputing the investment credit which
27        would have been allowed for the year in which credit  for
28        such  property was originally allowed by eliminating such
29        property from such computation, and (ii) subtracting such
30        recomputed credit from the amount  of  credit  previously
31        allowed.   For  the  purposes  of  this  paragraph (6), a
32        reduction of the basis of  qualified  property  resulting
33        from  a  redetermination  of  the purchase price shall be
34        deemed a disposition of qualified property to the  extent
 
                            -20-     LRB093 09955 SJM 10178 b
 1        of such reduction.
 2             (7)  Beginning  with tax years ending after December
 3        31, 1996, if a taxpayer qualifies for  the  credit  under
 4        this   subsection  (h)  and  thereby  is  granted  a  tax
 5        abatement and the taxpayer relocates its entire  facility
 6        in  violation  of  the  explicit  terms and length of the
 7        contract under Section 18-183 of the Property  Tax  Code,
 8        the  tax  imposed  under  subsections (a) and (b) of this
 9        Section shall be increased for the taxable year in  which
10        the taxpayer relocated its facility by an amount equal to
11        the  amount of credit received by the taxpayer under this
12        subsection (h).
13        (i)  Credit for Personal Property Tax Replacement  Income
14    Tax.    A  credit shall be allowed against the tax imposed by
15    subsections (a) and (b) of this Section for the  tax  imposed
16    by  subsections  (c)  and  (d)  of this Section.  This credit
17    shall  be  computed  by  multiplying  the  tax   imposed   by
18    subsections  (c)  and  (d) of this Section by a fraction, the
19    numerator of which is base income allocable to  Illinois  and
20    the denominator of which is Illinois base income, and further
21    multiplying   the   product   by  the  tax  rate  imposed  by
22    subsections (a) and (b) of this Section.
23        Any credit earned on or after  December  31,  1986  under
24    this  subsection  which  is  unused in the year the credit is
25    computed because it exceeds  the  tax  liability  imposed  by
26    subsections (a) and (b) for that year (whether it exceeds the
27    original  liability or the liability as later amended) may be
28    carried forward and applied to the tax liability  imposed  by
29    subsections  (a) and (b) of the 5 taxable years following the
30    excess credit year.  This credit shall be  applied  first  to
31    the  earliest  year for which there is a liability.  If there
32    is a credit under this subsection from more than one tax year
33    that is available to offset a liability the  earliest  credit
34    arising under this subsection shall be applied first.
 
                            -21-     LRB093 09955 SJM 10178 b
 1        If,  during  any taxable year ending on or after December
 2    31, 1986, the tax imposed by subsections (c) and (d) of  this
 3    Section  for which a taxpayer has claimed a credit under this
 4    subsection (i) is reduced, the amount of credit for such  tax
 5    shall also be reduced.  Such reduction shall be determined by
 6    recomputing  the  credit to take into account the reduced tax
 7    imposed by subsections (c) and (d).  If any  portion  of  the
 8    reduced  amount  of  credit  has  been carried to a different
 9    taxable year, an amended  return  shall  be  filed  for  such
10    taxable year to reduce the amount of credit claimed.
11        (j)  Training  expense  credit.  Beginning with tax years
12    ending on or after December 31, 1986,  a  taxpayer  shall  be
13    allowed  a  credit against the tax imposed by subsections (a)
14    and (b) under this Section for all amounts paid  or  accrued,
15    on behalf of all persons employed by the taxpayer in Illinois
16    or  Illinois  residents  employed  outside  of  Illinois by a
17    taxpayer,  for  educational   or   vocational   training   in
18    semi-technical or technical fields or semi-skilled or skilled
19    fields,   which  were  deducted  from  gross  income  in  the
20    computation of taxable income.  The credit  against  the  tax
21    imposed  by  subsections  (a)  and  (b) shall be 1.6% of such
22    training expenses.  For partners, shareholders of  subchapter
23    S corporations, and owners of limited liability companies, if
24    the  liability  company  is  treated  as  a  partnership  for
25    purposes of federal and State income taxation, there shall be
26    allowed  a  credit under this subsection (j) to be determined
27    in  accordance  with  the   determination   of   income   and
28    distributive  share  of income under Sections 702 and 704 and
29    subchapter S of the Internal Revenue Code.
30        Any credit allowed under this subsection which is  unused
31    in  the  year  the credit is earned may be carried forward to
32    each of the 5 taxable years following the year for which  the
33    credit is first computed until it is used.  This credit shall
34    be  applied  first  to the earliest year for which there is a
 
                            -22-     LRB093 09955 SJM 10178 b
 1    liability.  If there is a credit under this  subsection  from
 2    more  than  one  tax  year  that  is  available  to  offset a
 3    liability the earliest credit arising under  this  subsection
 4    shall be applied first.
 5        (k)  Research and development credit.
 6        Beginning  with  tax  years  ending after July 1, 1990, a
 7    taxpayer shall be allowed a credit against the tax imposed by
 8    subsections (a)  and  (b)  of  this  Section  for  increasing
 9    research  activities  in  this  State.   The  credit  allowed
10    against  the  tax imposed by subsections (a) and (b) shall be
11    equal to 6 1/2% of the qualifying expenditures for increasing
12    research   activities   in   this   State.    For   partners,
13    shareholders of subchapter  S  corporations,  and  owners  of
14    limited  liability  companies,  if  the  liability company is
15    treated as a partnership for purposes of  federal  and  State
16    income  taxation,  there shall be allowed a credit under this
17    subsection  to  be  determined   in   accordance   with   the
18    determination  of  income  and  distributive  share of income
19    under Sections 702 and 704 and subchapter S of  the  Internal
20    Revenue Code.
21        For    purposes    of    this   subsection,   "qualifying
22    expenditures" means the qualifying  expenditures  as  defined
23    for  the  federal  credit  for increasing research activities
24    which would be allowable under Section  41  of  the  Internal
25    Revenue   Code   and  which  are  conducted  in  this  State,
26    "qualifying expenditures for increasing  research  activities
27    in  this  State"  means the excess of qualifying expenditures
28    for the  taxable  year  in  which  incurred  over  qualifying
29    expenditures  for  the  base period, "qualifying expenditures
30    for the base period" means  the  average  of  the  qualifying
31    expenditures  for  each  year  in  the base period, and "base
32    period" means the 3 taxable years immediately  preceding  the
33    taxable year for which the determination is being made.
34        Any credit in excess of the tax liability for the taxable
 
                            -23-     LRB093 09955 SJM 10178 b
 1    year may be carried forward. A taxpayer may elect to have the
 2    unused  credit  shown  on  its final completed return carried
 3    over as a credit against the tax liability for the  following
 4    5  taxable  years  or until it has been fully used, whichever
 5    occurs first.
 6        If an unused credit is carried forward to  a  given  year
 7    from  2  or  more  earlier  years, that credit arising in the
 8    earliest year will be applied first against the tax liability
 9    for the given year.  If a tax liability for  the  given  year
10    still  remains,  the  credit from the next earliest year will
11    then be applied, and so on, until all credits have been  used
12    or  no  tax  liability  for  the  given  year  remains.   Any
13    remaining  unused  credit  or  credits  then  will be carried
14    forward to the next following year in which a  tax  liability
15    is  incurred, except that no credit can be carried forward to
16    a year which is more than 5 years after the year in which the
17    expense for which the credit is given was incurred.
18        Unless extended by law,  the  credit  shall  not  include
19    costs  incurred  after  December  31,  2004, except for costs
20    incurred pursuant to a binding contract entered  into  on  or
21    before December 31, 2004.
22        No  inference  shall be drawn from this amendatory Act of
23    the 91st General Assembly  in  construing  this  Section  for
24    taxable years beginning before January 1, 1999.
25        (l)  Environmental Remediation Tax Credit.
26             (i)  For  tax   years ending after December 31, 1997
27        and on or before December 31, 2001, a taxpayer  shall  be
28        allowed  a  credit against the tax imposed by subsections
29        (a) and (b) of this Section for certain amounts paid  for
30        unreimbursed  eligible remediation costs, as specified in
31        this  subsection.   For   purposes   of   this   Section,
32        "unreimbursed  eligible  remediation  costs"  means costs
33        approved by the Illinois Environmental Protection  Agency
34        ("Agency")  under  Section  58.14  of  the  Environmental
 
                            -24-     LRB093 09955 SJM 10178 b
 1        Protection Act that were paid in performing environmental
 2        remediation  at a site for which a No Further Remediation
 3        Letter was  issued  by  the  Agency  and  recorded  under
 4        Section  58.10  of the Environmental Protection Act.  The
 5        credit must be claimed for  the  taxable  year  in  which
 6        Agency  approval  of  the  eligible  remediation costs is
 7        granted.  The credit is not available to any taxpayer  if
 8        the  taxpayer  or any related party caused or contributed
 9        to, in any  material  respect,  a  release  of  regulated
10        substances  on, in, or under the site that was identified
11        and addressed by the remedial action pursuant to the Site
12        Remediation Program of the Environmental Protection  Act.
13        After  the  Pollution  Control  Board  rules  are adopted
14        pursuant to the Illinois Administrative Procedure Act for
15        the administration and enforcement of Section 58.9 of the
16        Environmental Protection Act, determinations as to credit
17        availability for purposes of this Section shall  be  made
18        consistent  with  those  rules.   For  purposes  of  this
19        Section,   "taxpayer"   includes   a   person  whose  tax
20        attributes the taxpayer has succeeded  to  under  Section
21        381  of  the  Internal  Revenue  Code and "related party"
22        includes the persons disallowed a deduction for losses by
23        paragraphs (b), (c), and (f)(1) of  Section  267  of  the
24        Internal  Revenue  Code  by  virtue  of  being  a related
25        taxpayer, as well as any of  its  partners.   The  credit
26        allowed  against  the  tax imposed by subsections (a) and
27        (b) shall be equal to 25% of  the  unreimbursed  eligible
28        remediation  costs in excess of $100,000 per site, except
29        that the $100,000 threshold shall not apply to  any  site
30        contained  in  an  enterprise  zone  as determined by the
31        Department of Commerce and Community Affairs.  The  total
32        credit  allowed  shall not exceed $40,000 per year with a
33        maximum total of $150,000 per  site.   For  partners  and
34        shareholders of subchapter S corporations, there shall be
 
                            -25-     LRB093 09955 SJM 10178 b
 1        allowed  a  credit under this subsection to be determined
 2        in  accordance  with  the  determination  of  income  and
 3        distributive share of income under Sections 702  and  704
 4        and subchapter S of the Internal Revenue Code.
 5             (ii)  A credit allowed under this subsection that is
 6        unused  in  the  year the credit is earned may be carried
 7        forward to each of the 5 taxable years following the year
 8        for which the credit is first earned until  it  is  used.
 9        The  term "unused credit" does not include any amounts of
10        unreimbursed eligible remediation costs in excess of  the
11        maximum  credit  per site authorized under paragraph (i).
12        This credit shall be applied first to the  earliest  year
13        for  which  there  is  a liability.  If there is a credit
14        under this subsection from more than one tax year that is
15        available to offset  a  liability,  the  earliest  credit
16        arising  under this subsection shall be applied first.  A
17        credit allowed under this subsection may  be  sold  to  a
18        buyer as part of a sale of all or part of the remediation
19        site  for which the credit was granted.  The purchaser of
20        a remediation site and the tax credit  shall  succeed  to
21        the  unused  credit and remaining carry-forward period of
22        the seller.  To perfect the transfer, the assignor  shall
23        record  the  transfer  in the chain of title for the site
24        and  provide  written  notice  to  the  Director  of  the
25        Illinois Department of Revenue of the  assignor's  intent
26        to  sell  the  remediation site and the amount of the tax
27        credit to be transferred as a portion of the sale.  In no
28        event may a credit be transferred to any taxpayer if  the
29        taxpayer  or  a related party would not be eligible under
30        the provisions of subsection (i).
31             (iii)  For purposes of this Section, the term "site"
32        shall have the same meaning as under Section 58.2 of  the
33        Environmental Protection Act.
34        (m)  Education  expense credit.  Beginning with tax years
 
                            -26-     LRB093 09955 SJM 10178 b
 1    ending after  December  31,  1999,  a  taxpayer  who  is  the
 2    custodian of one or more qualifying pupils shall be allowed a
 3    credit  against the tax imposed by subsections (a) and (b) of
 4    this Section for qualified  education  expenses  incurred  on
 5    behalf  of  the qualifying pupils.  The credit shall be equal
 6    to 25% of qualified education expenses, but in no  event  may
 7    the  total  credit  under this subsection claimed by a family
 8    that is the custodian of qualifying pupils exceed  $500.   In
 9    no  event  shall  a  credit  under this subsection reduce the
10    taxpayer's liability under this Act to less than zero.   This
11    subsection  is  exempt  from the provisions of Section 250 of
12    this Act.
13        For purposes of this subsection:
14        "Qualifying  pupils"  means  individuals  who   (i)   are
15    residents of the State of Illinois, (ii) are under the age of
16    21  at  the  close  of  the school year for which a credit is
17    sought, and (iii) during the school year for which  a  credit
18    is  sought  were  full-time pupils enrolled in a kindergarten
19    through twelfth grade education program  at  any  school,  as
20    defined in this subsection.
21        "Qualified  education  expense" means the amount incurred
22    on behalf of  a  qualifying  pupil  in  excess  of  $250  for
23    tuition,  book  fees, and lab fees at the school in which the
24    pupil is enrolled during the regular school year.
25        "School" means any  public  or  nonpublic  elementary  or
26    secondary school in Illinois that is in compliance with Title
27    VI  of  the  Civil Rights Act of 1964 and attendance at which
28    satisfies the requirements of  Section  26-1  of  the  School
29    Code,  except  that  nothing  shall be construed to require a
30    child to attend any particular public or nonpublic school  to
31    qualify for the credit under this Section.
32        "Custodian"  means, with respect to qualifying pupils, an
33    Illinois resident who is  a  parent,  the  parents,  a  legal
34    guardian, or the legal guardians of the qualifying pupils.
 
                            -27-     LRB093 09955 SJM 10178 b
 1    (Source:  P.A.  91-9,  eff.  1-1-00;  91-357,  eff.  7-29-99;
 2    91-643,  eff.  8-20-99;  91-644,  eff.  8-20-99; 91-860, eff.
 3    6-22-00; 91-913, eff. 1-1-01; 92-12, eff. 7-1-01; 92-16, eff.
 4    6-28-01; 92-651, eff. 7-11-02; 92-846, eff. 8-23-02.)

 5        (35 ILCS 5/202.5 new)
 6        Sec. 202.5.  Net income attributable to the period  prior
 7    to  July  1,  2003  and net income attributable to the period
 8    after June 30, 2003.
 9        (a)  In general. With respect to the taxable  year  of  a
10    taxpayer  beginning  prior  to  July 1, 2003 and ending after
11    June 30, 2003, net income for the period after June 30,  2003
12    shall  be  that  amount  which  bears  the  same ratio to the
13    taxpayer's net income for the  entire  taxable  year  as  the
14    number  of days in such year after June 30, 2003 bears to the
15    total number of days in such year, and the net income for the
16    period prior to July 1, 2003 shall be that amount which bears
17    the same ratio to the taxpayer's net income  for  the  entire
18    taxable year as the number of days in such year prior to July
19    1, 2003 bears to the total number of days in such year.
20        (b)  Election  to  attribute  income  and deduction items
21    specifically to the respective portions  of  a  taxable  year
22    prior to July 1, 2003 and after June 30, 2003. In the case of
23    a  taxpayer  with  a  taxable year beginning prior to July 1,
24    2003 and ending after June 30, 2003, the taxpayer may  elect,
25    in  lieu  of  the  procedure established in subsection (a) of
26    this  Section,  to  determine  net  income  on   a   specific
27    accounting  basis  for  the  2 portions of his or her taxable
28    year:
29             (i)  from the beginning of the taxable year  through
30        June 30, 2003; and
31             (ii)  from  July  1,  2003  through  the  end of the
32        taxable year.
33        If the taxpayer elects  specific  accounting  under  this
 
                            -28-     LRB093 09955 SJM 10178 b
 1    subsection,  there  shall  be taken into account in computing
 2    base income for each of the 2 portions of  the  taxable  year
 3    only those items earned, received, paid, incurred, or accrued
 4    in  each  such  period.  The  standard  exemption provided by
 5    Section 204 shall be divided between the  respective  periods
 6    in  amounts  that  bear the same ratio to the total exemption
 7    allowable under Section 204  (determined  without  regard  to
 8    this Section) as the total number of days in each such period
 9    bears  to  the  total number of days in the taxable year. The
10    election provided by this subsection shall be  made  in  such
11    manner  and  at  such  time as the Department may by forms or
12    regulations prescribe, but shall be made not later  than  the
13    due date (including any extensions thereof) for the filing of
14    the return for the taxable year, and shall be irrevocable.

15        (35 ILCS 5/804) (from Ch. 120, par. 8-804)
16        Sec. 804.  Failure to Pay Estimated Tax.
17        (a)  In general. In case of any underpayment of estimated
18    tax  by  a  taxpayer, except as provided in subsection (d) or
19    (e), the taxpayer shall be liable to a penalty in  an  amount
20    determined  at  the  rate  prescribed  by  Section 3-3 of the
21    Uniform Penalty and Interest  Act  upon  the  amount  of  the
22    underpayment  (determined  under  subsection  (b))  for  each
23    required installment.
24        (b)  Amount  of  underpayment. For purposes of subsection
25    (a), the amount of the underpayment shall be the excess of:
26             (1)  the amount of the installment  which  would  be
27        required to be paid under subsection (c), over
28             (2)  the  amount, if any, of the installment paid on
29        or before the last date prescribed for payment.
30        (c)  Amount of Required Installments.
31             (1)  Amount.
32                  (A)  In  General.   Except   as   provided   in
33             paragraph   (2),   the   amount   of   any  required
 
                            -29-     LRB093 09955 SJM 10178 b
 1             installment shall be  25%  of  the  required  annual
 2             payment.
 3                  (B)  Required  Annual Payment.  For purposes of
 4             subparagraph (A), the term "required annual payment"
 5             means the lesser of
 6                       (i)  90% of the tax shown  on  the  return
 7                  for the taxable year, or if no return is filed,
 8                  90% of the tax for such year, or
 9                       (ii)  100%  of the tax shown on the return
10                  of the taxpayer for the preceding taxable  year
11                  if  a  return  showing  a liability for tax was
12                  filed by the taxpayer for the preceding taxable
13                  year and such preceding year was a taxable year
14                  of 12 months.
15             (2)  Lower  Required  Installment  where  Annualized
16        Income Installment is Less Than Amount  Determined  Under
17        Paragraph (1).
18                  (A)  In  General.   In the case of any required
19             installment  if  a  taxpayer  establishes  that  the
20             annualized  income  installment  is  less  than  the
21             amount determined under paragraph (1),
22                       (i)  the   amount   of    such    required
23                  installment  shall  be  the  annualized  income
24                  installment, and
25                       (ii)  any    reduction   in   a   required
26                  installment resulting from the  application  of
27                  this   subparagraph   shall  be  recaptured  by
28                  increasing the  amount  of  the  next  required
29                  installment  determined  under paragraph (1) by
30                  the amount of such reduction, and by increasing
31                  subsequent required installments to the  extent
32                  that  the  reduction  has  not  previously been
33                  recaptured under this clause.
34                  (B)  Determination   of    Annualized    Income
 
                            -30-     LRB093 09955 SJM 10178 b
 1             Installment.    In   the   case   of   any  required
 2             installment, the annualized  income  installment  is
 3             the excess, if any, of
 4                       (i)  an  amount  equal  to  the applicable
 5                  percentage of the  tax  for  the  taxable  year
 6                  computed  by placing on an annualized basis the
 7                  net income  for  months  in  the  taxable  year
 8                  ending before the due date for the installment,
 9                  over
10                       (ii)  the  aggregate  amount  of any prior
11                  required installments for the taxable year.
12                  (C)  Applicable Percentage.
13             In the case of the following          The applicable
14             required installments:                percentage is:
15             1st ...............................            22.5%
16             2nd ...............................              45%
17             3rd ...............................            67.5%
18             4th ...............................              90%
19                  (D)  Annualized Net Income;  Individuals.   For
20             individuals,  net  income  shall  be  placed  on  an
21             annualized basis by:
22                       (i)  multiplying  by 12, or in the case of
23                  a taxable year of less than 12 months,  by  the
24                  number  of  months in the taxable year, the net
25                  income computed without regard to the  standard
26                  exemption  for  the  months in the taxable year
27                  ending  before   the   month   in   which   the
28                  installment is required to be paid;
29                       (ii)  dividing the resulting amount by the
30                  number  of  months  in  the taxable year ending
31                  before the month in which such installment date
32                  falls; and
33                       (iii)  deducting  from  such  amount   the
34                  standard  exemption  allowable  for the taxable
 
                            -31-     LRB093 09955 SJM 10178 b
 1                  year, such standard exemption being  determined
 2                  as  of  the last date prescribed for payment of
 3                  the installment.
 4                  (E)  Annualized Net Income; Corporations.   For
 5             corporations,  net  income  shall  be  placed  on an
 6             annualized basis by multiplying by  12  the  taxable
 7             income
 8                       (i)  for the first 3 months of the taxable
 9                  year,  in  the case of the installment required
10                  to be paid in the 4th month,
11                       (ii)  for the first 3 months  or  for  the
12                  first 5 months of the taxable year, in the case
13                  of  the  installment required to be paid in the
14                  6th month,
15                       (iii)  for the first 6 months or  for  the
16                  first 8 months of the taxable year, in the case
17                  of  the  installment required to be paid in the
18                  9th month, and
19                       (iv)  for the first 9 months  or  for  the
20                  first  11  months  of  the taxable year, in the
21                  case of the installment required to be paid  in
22                  the 12th month of the taxable year,
23             then  dividing the resulting amount by the number of
24             months in the taxable year (3, 5, 6, 8, 9, or 11  as
25             the case may be).
26        (d)  Exceptions.  Notwithstanding  the  provisions of the
27    preceding subsections, the penalty imposed by subsection  (a)
28    shall not be imposed if the taxpayer was not required to file
29    an Illinois income tax return for the preceding taxable year,
30    or  if the taxpayer has underpaid taxes solely because of the
31    increased rate in effect during the period from July 1,  2003
32    through  December  31,  2003,  or,  for  individuals,  if the
33    taxpayer had no tax liability for the preceding taxable  year
34    and  such  year  was a taxable year of 12 months. The penalty
 
                            -32-     LRB093 09955 SJM 10178 b
 1    imposed by subsection (a) shall also not be  imposed  on  any
 2    underpayments  of estimated tax due before the effective date
 3    of this amendatory Act of 1998 which underpayments are solely
 4    attributable to the change in apportionment  from  subsection
 5    (a) to subsection (h) of Section 304.  The provisions of this
 6    amendatory  Act of 1998 apply to tax years ending on or after
 7    December 31, 1998.
 8        (e)  The penalty imposed for  underpayment  of  estimated
 9    tax by subsection (a) of this Section shall not be imposed to
10    the  extent  that the Department or his designate determines,
11    pursuant to Section 3-8 of the Uniform Penalty  and  Interest
12    Act that the penalty should not be imposed.
13        (f)  Definition  of  tax. For purposes of subsections (b)
14    and (c), the term "tax" means the excess of the  tax  imposed
15    under  Article  2  of  this  Act,  over  the amounts credited
16    against such tax under Sections 601(b) (3) and (4).
17        (g)  Application of Section in case of  tax  withheld  on
18    compensation.    For purposes of applying this Section in the
19    case of an individual, tax withheld under Article 7  for  the
20    taxable  year shall be deemed a payment of estimated tax, and
21    an equal part of such amount shall be  deemed  paid  on  each
22    installment  date  for such taxable year, unless the taxpayer
23    establishes the dates on  which  all  amounts  were  actually
24    withheld,  in  which  case  the  amounts so withheld shall be
25    deemed payments of estimated tax on the dates on  which  such
26    amounts were actually withheld.
27        (g-5)  Amounts   withheld  under  the  State  Salary  and
28    Annuity Withholding  Act.   An  individual  who  has  amounts
29    withheld  under  paragraph  (10)  of  Section  4 of the State
30    Salary and Annuity Withholding Act may elect  to  have  those
31    amounts  treated  as  payments  of  estimated tax made on the
32    dates on which those amounts are actually withheld.
33        (i)  Short taxable year.  The application of this Section
34    to  taxable  years  of  less  than  12  months  shall  be  in
 
                            -33-     LRB093 09955 SJM 10178 b
 1    accordance with regulations prescribed by the Department.
 2        The changes in this Section made  by  Public  Act  84-127
 3    shall  apply  to  taxable years ending on or after January 1,
 4    1986.
 5    (Source: P.A. 90-448, eff. 8-16-97; 90-613, eff. 7-9-98.)

 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
10    Act.   The  Department shall collect certified past due child
11    support amounts under Section 2505-650 of the  Department  of
12    Revenue  Law  (20 ILCS 2505/2505-650).  Except as provided in
13    subsections (c) and (e)  of  this  Section,  money  collected
14    pursuant  to  subsections  (a) and (b) of Section 201 of this
15    Act shall be paid into the General Revenue Fund in the  State
16    treasury; money collected pursuant to subsections (c) and (d)
17    of  Section  201  of this Act shall be paid into the Personal
18    Property Tax Replacement Fund, a special fund  in  the  State
19    Treasury;  and  money collected under Section 2505-650 of the
20    Department of Revenue Law (20 ILCS  2505/2505-650)  shall  be
21    paid into the Child Support Enforcement Trust Fund, a special
22    fund outside the State Treasury, or to the State Disbursement
23    Unit  established  under Section 10-26 of the Illinois Public
24    Aid Code, as directed by the Department of Public Aid.
25        (b)  Local Governmental Distributive Fund.
26        Beginning August 1, 1969, and continuing through June 30,
27    1994, the  Treasurer  shall  transfer  each  month  from  the
28    General Revenue Fund to a special fund in the State treasury,
29    to  be  known as the "Local Government Distributive Fund", an
30    amount equal to 1/12 of the net revenue realized from the tax
31    imposed by subsections (a) and (b) of Section 201 of this Act
32    during the preceding  month.  Beginning  July  1,  1994,  and
33    continuing   through  June  30,  1995,  the  Treasurer  shall
 
                            -34-     LRB093 09955 SJM 10178 b
 1    transfer each month from the  General  Revenue  Fund  to  the
 2    Local Government Distributive Fund an amount equal to 1/11 of
 3    the  net revenue realized from the tax imposed by subsections
 4    (a) and (b) of Section 201 of this Act during  the  preceding
 5    month.   Beginning July 1, 1995, the Treasurer shall transfer
 6    each month  from  the  General  Revenue  Fund  to  the  Local
 7    Government  Distributive  Fund an amount equal to 1/10 of the
 8    net revenue realized from the tax imposed by subsections  (a)
 9    and  (b) of Section 201 of the Illinois Income Tax Act during
10    the preceding month. Net revenue realized for a  month  shall
11    be defined as the revenue from the tax imposed by subsections
12    (a)  and (b) of Section 201 of this Act which is deposited in
13    the General Revenue Fund, the Educational Assistance Fund and
14    the Income Tax Surcharge Local Government  Distributive  Fund
15    during  the  month (but not including revenue attributable to
16    the increase in tax rates imposed under this  amendatory  Act
17    of  the  93rd  General Assembly) minus the amount paid out of
18    the General Revenue Fund in State warrants during  that  same
19    month  as  refunds  to taxpayers for overpayment of liability
20    under the tax imposed by subsections (a) and (b)  of  Section
21    201 of this Act.
22        (c)  Deposits Into Income Tax Refund Fund.
23             (1)  Beginning  on  January  1, 1989 and thereafter,
24        the Department shall deposit a percentage of the  amounts
25        collected  pursuant  to  subsections (a) and (b)(1), (2),
26        and (3), (4), and (5) of Section 201 of this Act  into  a
27        fund in the State treasury known as the Income Tax Refund
28        Fund.   The  Department  shall deposit 6% of such amounts
29        during the period beginning January 1, 1989 and ending on
30        June 30, 1989.  Beginning with State fiscal year 1990 and
31        for each fiscal year thereafter, the percentage deposited
32        into the Income Tax Refund  Fund  during  a  fiscal  year
33        shall  be  the  Annual Percentage.  For fiscal years 1999
34        through 2001, the Annual Percentage shall  be  7.1%.  For
 
                            -35-     LRB093 09955 SJM 10178 b
 1        fiscal  year 2003, the Annual Percentage shall be 8%. For
 2        all other fiscal years, the Annual  Percentage  shall  be
 3        calculated as a fraction, the numerator of which shall be
 4        the  amount  of  refunds  approved  for  payment  by  the
 5        Department  during  the preceding fiscal year as a result
 6        of overpayment of tax liability under subsections (a) and
 7        (b)(1), (2), and (3), (4), and (5) of Section 201 of this
 8        Act plus the amount of such  refunds  remaining  approved
 9        but unpaid at the end of the preceding fiscal year, minus
10        the  amounts  transferred into the Income Tax Refund Fund
11        from  the  Tobacco  Settlement  Recovery  Fund,  and  the
12        denominator of which shall be the amounts which  will  be
13        collected  pursuant  to  subsections (a) and (b)(1), (2),
14        and (3), (4), and (5) of Section 201 of this  Act  during
15        the  preceding  fiscal  year; except that in State fiscal
16        year 2002, the Annual Percentage shall in no event exceed
17        7.6%.  The Director of Revenue shall certify  the  Annual
18        Percentage to the Comptroller on the last business day of
19        the fiscal year immediately preceding the fiscal year for
20        which it is to be effective.
21             (2)  Beginning  on  January  1, 1989 and thereafter,
22        the Department shall deposit a percentage of the  amounts
23        collected  pursuant  to  subsections (a) and (b)(6), (7),
24        and (8), (9), and (10), (c) and (d)  of  Section  201  of
25        this  Act  into a fund in the State treasury known as the
26        Income Tax Refund Fund.  The Department shall deposit 18%
27        of such amounts during the period  beginning  January  1,
28        1989  and  ending on June 30, 1989.  Beginning with State
29        fiscal year 1990 and for each fiscal year thereafter, the
30        percentage deposited into  the  Income  Tax  Refund  Fund
31        during a fiscal year shall be the Annual Percentage.  For
32        fiscal  years 1999, 2000, and 2001, the Annual Percentage
33        shall be 19%. For fiscal year 2003, the Annual Percentage
34        shall be 27%. For all  other  fiscal  years,  the  Annual
 
                            -36-     LRB093 09955 SJM 10178 b
 1        Percentage   shall  be  calculated  as  a  fraction,  the
 2        numerator  of  which  shall  be  the  amount  of  refunds
 3        approved  for  payment  by  the  Department  during   the
 4        preceding  fiscal  year as a result of overpayment of tax
 5        liability under subsections (a) and (b)(6), (7), and (8),
 6        (9), and (10), (c) and (d) of Section  201  of  this  Act
 7        plus  the  amount  of such refunds remaining approved but
 8        unpaid at the end of the preceding fiscal year,  and  the
 9        denominator  of  which shall be the amounts which will be
10        collected pursuant to subsections (a)  and  (b)(6),  (7),
11        and  (8),  (9),  and  (10), (c) and (d) of Section 201 of
12        this Act during the preceding fiscal year; except that in
13        State fiscal year 2002, the Annual Percentage shall in no
14        event exceed 23%.  The Director of Revenue shall  certify
15        the  Annual  Percentage  to  the  Comptroller on the last
16        business day of the fiscal year immediately preceding the
17        fiscal year for which it is to be effective.
18             (3)  The Comptroller shall order transferred and the
19        Treasurer shall  transfer  from  the  Tobacco  Settlement
20        Recovery   Fund   to  the  Income  Tax  Refund  Fund  (i)
21        $35,000,000  in  January,  2001,  (ii)   $35,000,000   in
22        January, 2002, and (iii) $35,000,000 in January, 2003.
23        (d)  Expenditures from Income Tax Refund Fund.
24             (1)  Beginning  January 1, 1989, money in the Income
25        Tax Refund Fund shall be  expended  exclusively  for  the
26        purpose  of  paying refunds resulting from overpayment of
27        tax liability under Section 201 of this Act,  for  paying
28        rebates under Section 208.1 in the event that the amounts
29        in  the  Homeowners' Tax Relief Fund are insufficient for
30        that purpose, and for making transfers pursuant  to  this
31        subsection (d).
32             (2)  The  Director  shall  order  payment of refunds
33        resulting from overpayment of tax liability under Section
34        201 of this Act from the Income Tax Refund Fund  only  to
 
                            -37-     LRB093 09955 SJM 10178 b
 1        the extent that amounts collected pursuant to Section 201
 2        of this Act and transfers pursuant to this subsection (d)
 3        and  item  (3)  of subsection (c) have been deposited and
 4        retained in the Fund.
 5             (3)  As soon as  possible  after  the  end  of  each
 6        fiscal year, the Director shall order transferred and the
 7        State Treasurer and State Comptroller shall transfer from
 8        the  Income  Tax Refund Fund to the Personal Property Tax
 9        Replacement Fund an amount, certified by the Director  to
10        the  Comptroller,  equal  to  the  excess  of  the amount
11        collected pursuant to subsections (c) and (d) of  Section
12        201 of this Act deposited into the Income Tax Refund Fund
13        during  the  fiscal  year  over  the  amount  of  refunds
14        resulting   from   overpayment  of  tax  liability  under
15        subsections (c) and (d) of Section 201 of this  Act  paid
16        from the Income Tax Refund Fund during the fiscal year.
17             (4)  As  soon  as  possible  after  the  end of each
18        fiscal year, the Director shall order transferred and the
19        State Treasurer and State Comptroller shall transfer from
20        the Personal Property Tax Replacement Fund to the  Income
21        Tax  Refund  Fund an amount, certified by the Director to
22        the Comptroller, equal to the excess  of  the  amount  of
23        refunds resulting from overpayment of tax liability under
24        subsections  (c)  and (d) of Section 201 of this Act paid
25        from the Income Tax Refund Fund during  the  fiscal  year
26        over the amount collected pursuant to subsections (c) and
27        (d)  of Section 201 of this Act deposited into the Income
28        Tax Refund Fund during the fiscal year.
29             (4.5)  As soon as possible after the end  of  fiscal
30        year  1999  and  of  each  fiscal  year  thereafter,  the
31        Director  shall order transferred and the State Treasurer
32        and State Comptroller shall transfer from the Income  Tax
33        Refund  Fund  to  the  General  Revenue  Fund any surplus
34        remaining in the Income Tax Refund Fund as of the end  of
 
                            -38-     LRB093 09955 SJM 10178 b
 1        such  fiscal year; excluding for fiscal years 2000, 2001,
 2        and 2002 amounts attributable to transfers under item (3)
 3        of subsection (c) less refunds resulting from the  earned
 4        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
 9        Section.
10        (e)  Deposits into the Education Assistance Fund and  the
11    Income Tax Surcharge Local Government Distributive Fund.
12        On July 1, 1991, and thereafter, of the amounts collected
13    pursuant  to  subsections  (a) and (b) of Section 201 of this
14    Act, minus deposits into the  Income  Tax  Refund  Fund,  the
15    Department  shall  deposit 7.3% into the Education Assistance
16    Fund in the State Treasury.   Beginning  July  1,  1991,  and
17    continuing through January 31, 1993, of the amounts collected
18    pursuant  to  subsections  (a)  and (b) of Section 201 of the
19    Illinois Income Tax Act, minus deposits into the  Income  Tax
20    Refund  Fund,  the  Department  shall  deposit  3.0% into the
21    Income Tax Surcharge Local Government  Distributive  Fund  in
22    the   State   Treasury.    Beginning  February  1,  1993  and
23    continuing through June 30, 1993, of  the  amounts  collected
24    pursuant  to  subsections  (a)  and (b) of Section 201 of the
25    Illinois Income Tax Act, minus deposits into the  Income  Tax
26    Refund  Fund,  the  Department  shall  deposit  4.4% into the
27    Income Tax Surcharge Local Government  Distributive  Fund  in
28    the  State  Treasury.  Beginning July 1, 1993, and continuing
29    through  June  30,  1994,  of  the  amounts  collected  under
30    subsections (a) and (b) of Section 201  of  this  Act,  minus
31    deposits  into  the  Income  Tax  Refund Fund, the Department
32    shall deposit 1.475% into  the  Income  Tax  Surcharge  Local
33    Government Distributive Fund in the State Treasury.
34        (f)  Deposits  into  the  School  District  Property  Tax
 
                            -39-     LRB093 09955 SJM 10178 b
 1    Relief Fund and Common School Fund.  Of the amounts collected
 2    pursuant  to subsections (a), (b)(4)(ii), (b)(5), (b)(9)(ii),
 3    and (b)(10) of Section 201 of this Act, minus  deposits  into
 4    the  Income  Tax  Refund  Fund,  the Department shall deposit
 5    two-thirds of the increase in  revenue  attributable  to  the
 6    increase  in  tax  rates imposed under this amendatory Act of
 7    the 93rd General Assembly into the School  District  Property
 8    Tax  Relief  Fund  and  one-third  of the increase in revenue
 9    attributable to the increase in tax rates imposed under  this
10    amendatory  Act  of the 93rd General Assembly into the Common
11    School Fund.
12    (Source: P.A. 91-212,  eff.  7-20-99;  91-239,  eff.  1-1-00;
13    91-700,  eff.  5-11-00;  91-704,  eff.  7-1-00;  91-712, eff.
14    7-1-00; 92-11, eff. 6-11-01;  92-16,  eff.  6-28-01;  92-600,
15    eff. 6-28-02.)

16        Section  15-15.   The  Property  Tax  Code  is amended by
17    changing Sections 18-255, 20-15,  and  21-30  and  by  adding
18    Section 18-178 as follows:

19        (35 ILCS 200/18-178 new)
20        Sec.   18-178.  Educational   purposes   tax   abatement.
21    Beginning  with  taxes levied for 2003 (payable in 2004), the
22    county  clerk  must  determine  the   final   extension   for
23    educational  purposes  for  all  taxable property in a school
24    district located in the county or for the taxable property of
25    that part of a school district located in the county,  taking
26    into account the maximum rate, levy, and extension authorized
27    under the Property Tax Extension Limitation Law, the Truth in
28    Taxation  Law,  and  any other statute. The county clerk must
29    then abate the extension for educational  purposes  for  each
30    school district or part of a school district in the county in
31    the  amount  of the school district property tax relief grant
32    certified to the county clerk for  that  school  district  or
 
                            -40-     LRB093 09955 SJM 10178 b
 1    part  of a school district by the Department of Revenue under
 2    Section 6z-59 of  the  State  Finance  Act.  When  the  final
 3    extension  for  educational  purposes has been determined and
 4    abated, the  county  clerk  must  notify  the  Department  of
 5    Revenue.
 6        The county clerk must determine the reduced amount of the
 7    tax  for  educational  purposes  to  be  billed by the county
 8    collector and  paid  by  each  taxpayer  in  a  given  school
 9    district  by  re-calculating  the  tax  rate  for educational
10    purposes for  that  school  district  based  on  the  reduced
11    extension  amount  after  abatement.  This  reduced extension
12    amount shall be used only for determining the amount  of  the
13    tax  bill.  The  extension amount for educational purposes as
14    originally calculated before abatement is the official  final
15    extension  for  educational purposes and must be used for all
16    other purposes, including determining the maximum rate, levy,
17    and extension authorized under  the  Property  Tax  Extension
18    Limitation  Law,  the  Truth  in  Taxation Law, and any other
19    statute and the maximum amount of tax  anticipation  warrants
20    under Section 17-16 of the School Code.

21        (35 ILCS 200/18-255)
22        Sec.  18-255.  Abstract  of  assessments  and extensions.
23    When the collector's books are completed,  the  county  clerk
24    shall  make  a  complete  statement  of  the  assessment  and
25    extensions,   in   conformity  to  the  instructions  of  the
26    Department. The clerk shall  certify  the  statement  to  the
27    Department. Beginning with the 2003 levy year, the Department
28    shall  require the statement to include a separate listing of
29    the extensions subject to abatement under Section 18-178.
30    (Source: Laws 1943, vol. 1, p. 1136; P.A. 88-455.)

31        (35 ILCS 200/20-15)
32        Sec. 20-15.  Information on bill or  separate  statement.
 
                            -41-     LRB093 09955 SJM 10178 b
 1    The  amount  of  tax  due  and  rates  shown  on the tax bill
 2    pursuant to this Section shall be net of any abatement  under
 3    Section 18-178.  There shall be printed on each bill, or on a
 4    separate slip which shall be mailed with the bill:
 5             (a)  a  statement  itemizing the rate at which taxes
 6        have been extended for each of the  taxing  districts  in
 7        the county in whose district the property is located, and
 8        in  those  counties  utilizing electronic data processing
 9        equipment the dollar amount of tax due  from  the  person
10        assessed  allocable  to  each  of those taxing districts,
11        including a separate statement of the  dollar  amount  of
12        tax  due  which  is  allocable  to a tax levied under the
13        Illinois Local Library Act or to any other tax levied  by
14        a municipality or township for public library purposes,
15             (b)  a  separate  statement  for  each of the taxing
16        districts of the  dollar  amount  of  tax  due  which  is
17        allocable to a tax levied under the Illinois Pension Code
18        or  to any other tax levied by a municipality or township
19        for public pension or retirement purposes,
20             (c)  the total tax rate,
21             (d)  the total amount of tax due, and
22             (e)  the amount by which the total tax and  the  tax
23        allocable  to  each  taxing  district  differs  from  the
24        taxpayer's last prior tax bill, and
25             (f)  the  amount  of tax abated under Section 18-178
26        labeled "Your School Tax Refund".
27        The county treasurer shall ensure that only those  taxing
28    districts  in  which a parcel of property is located shall be
29    listed on the bill for that property.
30        In all counties the statement shall also provide:
31             (1)  the property index  number  or  other  suitable
32        description,
33             (2)  the assessment of the property,
34             (3)  the  equalization factors imposed by the county
 
                            -42-     LRB093 09955 SJM 10178 b
 1        and by the Department, and
 2             (4)  the equalized  assessment  resulting  from  the
 3        application  of  the  equalization  factors  to the basic
 4        assessment.
 5        In all  counties  which  do  not  classify  property  for
 6    purposes  of  taxation, for property on which a single family
 7    residence is situated the  statement  shall  also  include  a
 8    statement  to  reflect the fair cash value determined for the
 9    property.  In  all  counties  which  classify  property   for
10    purposes  of taxation in accordance with Section 4 of Article
11    IX of the Illinois Constitution, for parcels  of  residential
12    property   in   the   lowest  assessment  classification  the
13    statement shall also include a statement to reflect the  fair
14    cash value determined for the property.
15        In  all counties, the statement shall include information
16    that  certain  taxpayers  may  be  eligible  for  the  Senior
17    Citizens  and  Disabled  Persons  Property  Tax  Relief   and
18    Pharmaceutical  Assistance  Act  and  that  applications  are
19    available from the Illinois Department of Revenue.
20        In  counties  which  use  the  estimated  or  accelerated
21    billing methods, these statements shall only be provided with
22    the final installment of taxes due, except that the statement
23    under  item  (f)  shall be included with both installments in
24    those  counties  under  estimated  or   accelerated   billing
25    methods,  the  first billing showing the amount deducted from
26    the first installment, and  the  final  billing  showing  the
27    total  tax abated for the levy year under Section 18-178. The
28    provisions of this Section create a mandatory statutory duty.
29    They are not merely directory or discretionary.  The  failure
30    or  neglect of the collector to mail the bill, or the failure
31    of the taxpayer to receive the bill,  shall  not  affect  the
32    validity  of any tax, or the liability for the payment of any
33    tax.
34    (Source: P.A. 91-699, eff. 1-1-01.)
 
                            -43-     LRB093 09955 SJM 10178 b
 1        (35 ILCS 200/21-30)
 2        Sec. 21-30.  Accelerated billing. Except as  provided  in
 3    this Section and Section 21-40, in counties with 3,000,000 or
 4    more inhabitants, by January 31 annually, estimated tax bills
 5    setting  out  the first installment of property taxes for the
 6    preceding year, payable in that year, shall be  prepared  and
 7    mailed.  The  first installment of taxes on the estimated tax
 8    bills shall be computed at 50% of the total of each tax  bill
 9    before  the  abatement  of taxes under Section 18-178 for the
10    preceding year, less an estimate of one half  of  the  school
11    district  property  tax  relief  grant  for  the current year
12    determined based on information provided by the Department of
13    Revenue and any other information available.   If,  prior  to
14    the  preparation of the estimated tax bills, a certificate of
15    error has been either  approved  by  a  court  on  or  before
16    November  30  of  the preceding year or certified pursuant to
17    Section 14-15 on or before November 30 of the preceding year,
18    then the first installment of  taxes  on  the  estimated  tax
19    bills  shall be computed at 50% of the total taxes before the
20    abatement of taxes under Section  18-178  for  the  preceding
21    year  as  corrected  by  the  certificate  of  error, less an
22    estimate of one half of  the  school  district  property  tax
23    relief  grant  for  the  current  year  determined  based  on
24    information  provided  by  the  Department of Revenue and any
25    other information available. By June 30 annually, actual  tax
26    bills shall be prepared and mailed. These bills shall set out
27    total  taxes  due and the amount of estimated taxes billed in
28    the first installment, and shall state the balance  of  taxes
29    due  for  that  year  as  represented by the sum derived from
30    subtracting the amount of  the  first  installment  from  the
31    total taxes due for that year.
32        The  county  board  may provide by ordinance, in counties
33    with 3,000,000 or more inhabitants, for taxes to be paid in 4
34    installments.  For the levy year for which the  ordinance  is
 
                            -44-     LRB093 09955 SJM 10178 b
 1    first effective and each subsequent year, estimated tax bills
 2    setting out the first, second, and third installment of taxes
 3    for  the  preceding  year,  payable  in  that  year, shall be
 4    prepared and mailed not later  than  the  date  specified  by
 5    ordinance.   Each installment on estimated tax bills shall be
 6    computed at 25% of  the  total  of  each  tax  bill  for  the
 7    preceding  year.  By  the  date  specified  in the ordinance,
 8    actual tax bills shall be prepared and mailed.   These  bills
 9    shall  set  out  total  taxes due and the amount of estimated
10    taxes billed in the first, second, and third installments and
11    shall state the  balance  of  taxes  due  for  that  year  as
12    represented by the sum derived from subtracting the amount of
13    the  estimated installments from the total taxes due for that
14    year.
15        The county board of any county with less  than  3,000,000
16    inhabitants   may,  by  ordinance  or  resolution,  adopt  an
17    accelerated method of  tax  billing.  The  county  board  may
18    subsequently  rescind  the ordinance or resolution and revert
19    to the method otherwise provided for in this Code.
20        Taxes levied on homestead property in which a  member  of
21    the  National  Guard  or  reserves of the armed forces of the
22    United States who was called  to  active  duty  on  or  after
23    August  1,  1990, and who has an ownership interest shall not
24    be deemed delinquent and  no  interest  shall  accrue  or  be
25    charged as a penalty on such taxes due and payable in 1991 or
26    1992  until  one  year  after that member returns to civilian
27    status.
28    (Source: P.A. 92-475, eff. 8-23-01.)

29                             ARTICLE 99

30        Section 99-99.  Effective date.  This Act takes effect on
31    July 1, 2003.