Full Text of HB0278 100th General Assembly
HB0278eng 100TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by | 5 | | changing Section 901 as follows: | 6 | | (35 ILCS 5/901) (from Ch. 120, par. 9-901) | 7 | | Sec. 901. Collection authority. | 8 | | (a) In general. | 9 | | The Department shall collect the taxes imposed by this Act. | 10 | | The Department
shall collect certified past due child support | 11 | | amounts under Section 2505-650
of the Department of Revenue Law | 12 | | (20 ILCS 2505/2505-650). Except as
provided in subsections (c), | 13 | | (e), (f), (g), and (h) of this Section, money collected
| 14 | | pursuant to subsections (a) and (b) of Section 201 of this Act | 15 | | 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 paid
| 21 | | into the
Child Support Enforcement Trust Fund, a special fund | 22 | | outside the State
Treasury, or
to the State
Disbursement Unit | 23 | | established under Section 10-26 of the Illinois Public Aid
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| 1 | | Code, as directed by the Department of Healthcare and Family | 2 | | Services. | 3 | | (b) Local Government Distributive Fund. | 4 | | Beginning August 1, 1969, and continuing through June 30, | 5 | | 1994, the Treasurer
shall transfer each month from the General | 6 | | Revenue Fund to a special fund in
the State treasury, to be | 7 | | known as the "Local Government Distributive Fund", an
amount | 8 | | equal to 1/12 of the net revenue realized from the tax imposed | 9 | | by
subsections (a) and (b) of Section 201 of this Act during | 10 | | the preceding month.
Beginning July 1, 1994, and continuing | 11 | | through June 30, 1995, the Treasurer
shall transfer each month | 12 | | from the General Revenue Fund to the Local Government
| 13 | | Distributive Fund an amount equal to 1/11 of the net revenue | 14 | | realized from the
tax imposed by subsections (a) and (b) of | 15 | | Section 201 of this Act during the
preceding month. Beginning | 16 | | July 1, 1995 and continuing through January 31, 2011, the | 17 | | Treasurer shall transfer each
month from the General Revenue | 18 | | Fund to the Local Government Distributive Fund
an amount equal | 19 | | to the net of (i) 1/10 of the net revenue realized from the
tax | 20 | | imposed by
subsections (a) and (b) of Section 201 of the | 21 | | Illinois Income Tax Act during
the preceding month
(ii) minus, | 22 | | beginning July 1, 2003 and ending June 30, 2004, $6,666,666, | 23 | | and
beginning July 1,
2004,
zero. Beginning February 1, 2011, | 24 | | and continuing through January 31, 2015, the Treasurer shall | 25 | | transfer each month from the General Revenue Fund to the Local | 26 | | Government Distributive Fund an amount equal to the sum of (i) |
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| 1 | | 6% (10% of the ratio of the 3% individual income tax rate prior | 2 | | to 2011 to the 5% individual income tax rate after 2010) of the | 3 | | net revenue realized from the tax imposed by subsections (a) | 4 | | and (b) of Section 201 of this Act upon individuals, trusts, | 5 | | and estates during the preceding month and (ii) 6.86% (10% of | 6 | | the ratio of the 4.8% corporate income tax rate prior to 2011 | 7 | | to the 7% corporate income tax rate after 2010) of the net | 8 | | revenue realized from the tax imposed by subsections (a) and | 9 | | (b) of Section 201 of this Act upon corporations during the | 10 | | preceding month. Beginning February 1, 2015 and continuing | 11 | | through January 31, 2017 January 31, 2025 , the Treasurer shall | 12 | | transfer each month from the General Revenue Fund to the Local | 13 | | Government Distributive Fund an amount equal to the sum of (i) | 14 | | 8% (10% of the ratio of the 3% individual income tax rate prior | 15 | | to 2011 to the 3.75% individual income tax rate after 2014) of | 16 | | the net revenue realized from the tax imposed by subsections | 17 | | (a) and (b) of Section 201 of this Act upon individuals, | 18 | | trusts, and estates during the preceding month and (ii) 9.14% | 19 | | (10% of the ratio of the 4.8% corporate income tax rate prior | 20 | | to 2011 to the 5.25% corporate income tax rate after 2014) of | 21 | | the net revenue realized from the tax imposed by subsections | 22 | | (a) and (b) of Section 201 of this Act upon corporations during | 23 | | the preceding month. Beginning February 1, 2017 and continuing | 24 | | through January 31, 2018 February 1, 2025 , the Treasurer shall | 25 | | transfer each month from the General Revenue Fund to the Local | 26 | | Government Distributive Fund an amount equal to the sum of (i) |
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| 1 | | 8.5% 9.23% (10% of the ratio of the 3% individual income tax | 2 | | rate prior to 2011 to the 3.25% individual income tax rate | 3 | | after 2024) of the net revenue realized from the tax imposed by | 4 | | subsections (a) and (b) of Section 201 of this Act upon | 5 | | individuals, trusts, and estates during the preceding month and | 6 | | (ii) 9.355% 10% of the net revenue realized from the tax | 7 | | imposed by subsections (a) and (b) of Section 201 of this Act | 8 | | upon corporations during the preceding month. Beginning | 9 | | February 1, 2018 and continuing through January 31, 2019, the | 10 | | Treasurer shall transfer each month from the General Revenue | 11 | | Fund to the Local Government Distributive Fund an amount equal | 12 | | to the sum of (i) 9% of the net revenue realized from the tax | 13 | | imposed by subsections (a) and (b) of Section 201 of this Act | 14 | | upon individuals, trusts, and estates during the preceding | 15 | | month and (ii) 9.57% of the net revenue realized from the tax | 16 | | imposed by subsections (a) and (b) of Section 201 of this Act | 17 | | upon corporations during the preceding month. Beginning | 18 | | February 1, 2019 and continuing through January 31, 2020, the | 19 | | Treasurer shall transfer each month from the General Revenue | 20 | | Fund to the Local Government Distributive Fund an amount equal | 21 | | to the sum of (i) 9.5% of the net revenue realized from the tax | 22 | | imposed by subsections (a) and (b) of Section 201 of this Act | 23 | | upon individuals, trusts, and estates during the preceding | 24 | | month and (ii) 9.785% of the net revenue realized from the tax | 25 | | imposed by subsections (a) and (b) of Section 201 of this Act | 26 | | upon corporations during the preceding month. Beginning on |
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| 1 | | February 1, 2020, the Treasurer shall transfer each month from | 2 | | the General Revenue Fund to the Local Government Distributive | 3 | | Fund an amount equal to 10% of the net revenue realized from | 4 | | the
tax imposed on individuals, trusts, estates, and | 5 | | corporations by
subsections (a) and (b) of Section 201 of the | 6 | | Illinois Income Tax Act during
the preceding month. Net revenue | 7 | | realized for a month shall be defined as the
revenue from the | 8 | | tax imposed by subsections (a) and (b) of Section 201 of this
| 9 | | Act which is deposited in the General Revenue Fund, the | 10 | | Education Assistance
Fund, the Income Tax Surcharge Local | 11 | | Government Distributive Fund, the Fund for the Advancement of | 12 | | Education, and the Commitment to Human Services Fund during the
| 13 | | month minus the amount paid out of the General Revenue Fund in | 14 | | State warrants
during that same month as refunds to taxpayers | 15 | | for overpayment of liability
under the tax imposed by | 16 | | subsections (a) and (b) of Section 201 of this Act. | 17 | | Beginning on August 26, 2014 (the effective date of Public | 18 | | Act 98-1052), the Comptroller shall perform the transfers | 19 | | required by this subsection (b) no later than 60 days after he | 20 | | or she receives the certification from the Treasurer as | 21 | | provided in Section 1 of the State Revenue Sharing Act. | 22 | | (c) Deposits Into Income Tax Refund Fund. | 23 | | (1) Beginning on January 1, 1989 and thereafter, the | 24 | | Department shall
deposit a percentage of the amounts | 25 | | collected pursuant to subsections (a)
and (b)(1), (2), and | 26 | | (3), of Section 201 of this Act into a fund in the State
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| 1 | | treasury known as the Income Tax Refund Fund. The | 2 | | Department shall deposit 6%
of such amounts during the | 3 | | period beginning January 1, 1989 and ending on June
30, | 4 | | 1989. Beginning with State fiscal year 1990 and for each | 5 | | fiscal year
thereafter, the percentage deposited into the | 6 | | Income Tax Refund Fund during a
fiscal year shall be the | 7 | | Annual Percentage. For fiscal years 1999 through
2001, the | 8 | | Annual Percentage shall be 7.1%.
For fiscal year 2003, the | 9 | | Annual Percentage shall be 8%.
For fiscal year 2004, the | 10 | | Annual Percentage shall be 11.7%. Upon the effective date | 11 | | of this amendatory Act of the 93rd General Assembly, the | 12 | | Annual Percentage shall be 10% for fiscal year 2005. For | 13 | | fiscal year 2006, the Annual Percentage shall be 9.75%. For | 14 | | fiscal
year 2007, the Annual Percentage shall be 9.75%. For | 15 | | fiscal year 2008, the Annual Percentage shall be 7.75%. For | 16 | | fiscal year 2009, the Annual Percentage shall be 9.75%. For | 17 | | fiscal year 2010, the Annual Percentage shall be 9.75%. For | 18 | | fiscal year 2011, the Annual Percentage shall be 8.75%. For | 19 | | fiscal year 2012, the Annual Percentage shall be 8.75%. For | 20 | | fiscal year 2013, the Annual Percentage shall be 9.75%. For | 21 | | fiscal year 2014, the Annual Percentage shall be 9.5%. For | 22 | | fiscal year 2015, the Annual Percentage shall be 10%. For | 23 | | all other
fiscal years, the
Annual Percentage shall be | 24 | | calculated as a fraction, the numerator of which
shall be | 25 | | the amount of refunds approved for payment by the | 26 | | Department during
the preceding fiscal year as a result of |
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| 1 | | overpayment of tax liability under
subsections (a) and | 2 | | (b)(1), (2), and (3) of Section 201 of this Act plus the
| 3 | | amount of such refunds remaining approved but unpaid at the | 4 | | end of the
preceding fiscal year, minus the amounts | 5 | | transferred into the Income Tax
Refund Fund from the | 6 | | Tobacco Settlement Recovery Fund, and
the denominator of | 7 | | which shall be the amounts which will be collected pursuant
| 8 | | to subsections (a) and (b)(1), (2), and (3) of Section 201 | 9 | | of this Act during
the preceding fiscal year; except that | 10 | | in State fiscal year 2002, the Annual
Percentage shall in | 11 | | no event exceed 7.6%. The Director of Revenue shall
certify | 12 | | the Annual Percentage to the Comptroller on the last | 13 | | business day of
the fiscal year immediately preceding the | 14 | | fiscal year for which it is to be
effective. | 15 | | (2) Beginning on January 1, 1989 and thereafter, the | 16 | | Department shall
deposit a percentage of the amounts | 17 | | collected pursuant to subsections (a)
and (b)(6), (7), and | 18 | | (8), (c) and (d) of Section 201
of this Act into a fund in | 19 | | the State treasury known as the Income Tax
Refund Fund. The | 20 | | Department shall deposit 18% of such amounts during the
| 21 | | period beginning January 1, 1989 and ending on June 30, | 22 | | 1989. Beginning
with State fiscal year 1990 and for each | 23 | | fiscal year thereafter, the
percentage deposited into the | 24 | | Income Tax Refund Fund during a fiscal year
shall be the | 25 | | Annual Percentage. For fiscal years 1999, 2000, and 2001, | 26 | | the
Annual Percentage shall be 19%.
For fiscal year 2003, |
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| 1 | | the Annual Percentage shall be 27%. For fiscal year
2004, | 2 | | the Annual Percentage shall be 32%.
Upon the effective date | 3 | | of this amendatory Act of the 93rd General Assembly, the | 4 | | Annual Percentage shall be 24% for fiscal year 2005.
For | 5 | | fiscal year 2006, the Annual Percentage shall be 20%. For | 6 | | fiscal
year 2007, the Annual Percentage shall be 17.5%. For | 7 | | fiscal year 2008, the Annual Percentage shall be 15.5%. For | 8 | | fiscal year 2009, the Annual Percentage shall be 17.5%. For | 9 | | fiscal year 2010, the Annual Percentage shall be 17.5%. For | 10 | | fiscal year 2011, the Annual Percentage shall be 17.5%. For | 11 | | fiscal year 2012, the Annual Percentage shall be 17.5%. For | 12 | | fiscal year 2013, the Annual Percentage shall be 14%. For | 13 | | fiscal year 2014, the Annual Percentage shall be 13.4%. For | 14 | | fiscal year 2015, the Annual Percentage shall be 14%. For | 15 | | all other fiscal years, the Annual
Percentage shall be | 16 | | calculated
as a fraction, the numerator of which shall be | 17 | | the amount of refunds
approved for payment by the | 18 | | Department during the preceding fiscal year as
a result of | 19 | | overpayment of tax liability under subsections (a) and | 20 | | (b)(6),
(7), and (8), (c) and (d) of Section 201 of this | 21 | | Act plus the
amount of such refunds remaining approved but | 22 | | unpaid at the end of the
preceding fiscal year, and the | 23 | | denominator of
which shall be the amounts which will be | 24 | | collected pursuant to subsections (a)
and (b)(6), (7), and | 25 | | (8), (c) and (d) of Section 201 of this Act during the
| 26 | | preceding fiscal year; except that in State fiscal year |
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| 1 | | 2002, the Annual
Percentage shall in no event exceed 23%. | 2 | | The Director of Revenue shall
certify the Annual Percentage | 3 | | to the Comptroller on the last business day of
the fiscal | 4 | | year immediately preceding the fiscal year for which it is | 5 | | to be
effective. | 6 | | (3) The Comptroller shall order transferred and the | 7 | | Treasurer shall
transfer from the Tobacco Settlement | 8 | | Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | 9 | | in January, 2001, (ii) $35,000,000 in January, 2002, and
| 10 | | (iii) $35,000,000 in January, 2003. | 11 | | (d) Expenditures from Income Tax Refund Fund. | 12 | | (1) Beginning January 1, 1989, money in the Income Tax | 13 | | Refund Fund
shall be expended exclusively for the purpose | 14 | | of paying refunds resulting
from overpayment of tax | 15 | | liability under Section 201 of this Act, for paying
rebates | 16 | | under Section 208.1 in the event that the amounts in the | 17 | | Homeowners'
Tax Relief Fund are insufficient for that | 18 | | purpose,
and for
making transfers pursuant to this | 19 | | subsection (d). | 20 | | (2) The Director shall order payment of refunds | 21 | | resulting from
overpayment of tax liability under Section | 22 | | 201 of this Act from the
Income Tax Refund Fund only to the | 23 | | extent that amounts collected pursuant
to Section 201 of | 24 | | this Act and transfers pursuant to this subsection (d)
and | 25 | | item (3) of subsection (c) have been deposited and retained | 26 | | in the
Fund. |
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| 1 | | (3) As soon as possible after the end of each fiscal | 2 | | year, the Director
shall
order transferred and the State | 3 | | Treasurer and State Comptroller shall
transfer from the | 4 | | Income Tax Refund Fund to the Personal Property Tax
| 5 | | Replacement Fund an amount, certified by the Director to | 6 | | the Comptroller,
equal to the excess of the amount | 7 | | collected pursuant to subsections (c) and
(d) of Section | 8 | | 201 of this Act deposited into the Income Tax Refund Fund
| 9 | | during the fiscal year over the amount of refunds resulting | 10 | | from
overpayment of tax liability under subsections (c) and | 11 | | (d) of Section 201
of this Act paid from the Income Tax | 12 | | Refund Fund during the fiscal year. | 13 | | (4) As soon as possible after the end of each fiscal | 14 | | year, the Director shall
order transferred and the State | 15 | | Treasurer and State Comptroller shall
transfer from the | 16 | | Personal Property Tax Replacement Fund to the Income Tax
| 17 | | Refund Fund an amount, certified by the Director to the | 18 | | Comptroller, equal
to the excess of the amount of refunds | 19 | | resulting from overpayment of tax
liability under | 20 | | subsections (c) and (d) of Section 201 of this Act paid
| 21 | | from the Income Tax Refund Fund during the fiscal year over | 22 | | the amount
collected pursuant to subsections (c) and (d) of | 23 | | Section 201 of this Act
deposited into the Income Tax | 24 | | Refund Fund during the fiscal year. | 25 | | (4.5) As soon as possible after the end of fiscal year | 26 | | 1999 and of each
fiscal year
thereafter, the Director shall |
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| 1 | | order transferred and the State Treasurer and
State | 2 | | Comptroller shall transfer from the Income Tax Refund Fund | 3 | | to the General
Revenue Fund any surplus remaining in the | 4 | | Income Tax Refund Fund as of the end
of such fiscal year; | 5 | | excluding for fiscal years 2000, 2001, and 2002
amounts | 6 | | attributable to transfers under item (3) of subsection (c) | 7 | | less refunds
resulting from the earned income tax credit. | 8 | | (5) This Act shall constitute an irrevocable and | 9 | | continuing
appropriation from the Income Tax Refund Fund | 10 | | for the purpose of paying
refunds upon the order of the | 11 | | Director in accordance with the provisions of
this Section. | 12 | | (e) Deposits into the Education Assistance Fund and the | 13 | | Income Tax
Surcharge Local Government Distributive Fund. | 14 | | On July 1, 1991, and thereafter, of the amounts collected | 15 | | pursuant to
subsections (a) and (b) of Section 201 of this Act, | 16 | | minus deposits into the
Income Tax Refund Fund, the Department | 17 | | shall deposit 7.3% into the
Education Assistance Fund in the | 18 | | State Treasury. Beginning July 1, 1991,
and continuing through | 19 | | January 31, 1993, of the amounts collected pursuant to
| 20 | | subsections (a) and (b) of Section 201 of the Illinois Income | 21 | | Tax Act, minus
deposits into the Income Tax Refund Fund, the | 22 | | Department shall deposit 3.0%
into the Income Tax Surcharge | 23 | | Local Government Distributive Fund in the State
Treasury. | 24 | | Beginning February 1, 1993 and continuing through June 30, | 25 | | 1993, of
the amounts collected pursuant to subsections (a) and | 26 | | (b) of Section 201 of the
Illinois Income Tax Act, minus |
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| 1 | | deposits into the Income Tax Refund Fund, the
Department shall | 2 | | deposit 4.4% into the Income Tax Surcharge Local Government
| 3 | | Distributive Fund in the State Treasury. Beginning July 1, | 4 | | 1993, and
continuing through June 30, 1994, of the amounts | 5 | | collected under subsections
(a) and (b) of Section 201 of this | 6 | | Act, minus deposits into the Income Tax
Refund Fund, the | 7 | | Department shall deposit 1.475% into the Income Tax Surcharge
| 8 | | Local Government Distributive Fund in the State Treasury. | 9 | | (f) Deposits into the Fund for the Advancement of | 10 | | Education. Beginning February 1, 2015, the Department shall | 11 | | deposit the following portions of the revenue realized from the | 12 | | tax imposed upon individuals, trusts, and estates by | 13 | | subsections (a) and (b) of Section 201 of this Act during the | 14 | | preceding month, minus deposits into the Income Tax Refund | 15 | | Fund, into the Fund for the Advancement of Education: | 16 | | (1) beginning February 1, 2015, and prior to February | 17 | | 1, 2025, 1/30; and | 18 | | (2) beginning February 1, 2025, 1/26. | 19 | | If the rate of tax imposed by subsection (a) and (b) of | 20 | | Section 201 is reduced pursuant to Section 201.5 of this Act, | 21 | | the Department shall not make the deposits required by this | 22 | | subsection (f) on or after the effective date of the reduction. | 23 | | (g) Deposits into the Commitment to Human Services Fund. | 24 | | Beginning February 1, 2015, the Department shall deposit the | 25 | | following portions of the revenue realized from the tax imposed | 26 | | upon individuals, trusts, and estates by subsections (a) and |
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| 1 | | (b) of Section 201 of this Act during the preceding month, | 2 | | minus deposits into the Income Tax Refund Fund, into the | 3 | | Commitment to Human Services Fund: | 4 | | (1) beginning February 1, 2015, and prior to February | 5 | | 1, 2025, 1/30; and | 6 | | (2) beginning February 1, 2025, 1/26. | 7 | | If the rate of tax imposed by subsection (a) and (b) of | 8 | | Section 201 is reduced pursuant to Section 201.5 of this Act, | 9 | | the Department shall not make the deposits required by this | 10 | | subsection (g) on or after the effective date of the reduction. | 11 | | (h) Deposits into the Tax Compliance and Administration | 12 | | Fund. Beginning on the first day of the first calendar month to | 13 | | occur on or after August 26, 2014 (the effective date of Public | 14 | | Act 98-1098), each month the Department shall pay into the Tax | 15 | | Compliance and Administration Fund, to be used, subject to | 16 | | appropriation, to fund additional auditors and compliance | 17 | | personnel at the Department, an amount equal to 1/12 of 5% of | 18 | | the cash receipts collected during the preceding fiscal year by | 19 | | the Audit Bureau of the Department from the tax imposed by | 20 | | subsections (a), (b), (c), and (d) of Section 201 of this Act, | 21 | | net of deposits into the Income Tax Refund Fund made from those | 22 | | cash receipts. | 23 | | (Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; | 24 | | 98-1052, eff. 8-26-14; 98-1098, eff. 8-26-14; 99-78, eff. | 25 | | 7-20-15.)
| 26 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.
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