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Public Act 095-0707 |
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AN ACT concerning State government.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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ARTICLE 1. SHORT TITLE; PURPOSE | ||||
Section 1-1. Short title. This Act may be cited as the | ||||
FY2008 Budget Implementation Act. | ||||
Section 1-5. Purpose. It is the purpose of this Act to make | ||||
changes in State programs that are necessary to implement the | ||||
FY2008 budget. | ||||
ARTICLE 3. STATE SERVICES ASSURANCE ACT FOR 2008 | ||||
Section 3-1. Short title. This Article may be cited as the | ||||
State Services Assurance Act for FY2008 , and references in this | ||||
Article to "this Act" mean this Article. | ||||
Section 3-5. Definitions. For the purposes of this Act: | ||||
"Frontline staff" means State employees in the RC 6, RC 9, | ||||
RC 10, RC 14, RC 28, RC 42, RC 62, RC 63, and CU 500 bargaining | ||||
units in titles represented by AFSCME as of June 1, 2007. | ||||
"On-board frontline staff" means frontline staff in paid | ||||
status. |
Section 3-10. Legislative intent and policy. The General | ||
Assembly finds that State government delivers a myriad of | ||
services that are necessary for the health, welfare, safety, | ||
and quality of life of all Illinois residents. Because State | ||
services are used by many Illinois citizens who cannot speak | ||
the English language fluently, there is a need for bilingual | ||
State employees. The number of workers in State government who | ||
speak a language other than English is inadequate, leaving | ||
those workers who do speak another language overworked and | ||
incapable of meeting the rising demand for their services. | ||
In response to this crisis, it is the intent of the General | ||
Assembly in FY 2008 to ensure the hiring and retention of | ||
additional bilingual frontline staff in State agencies where | ||
public services are most used. These additions take into | ||
account our State's current revenue crisis, and are a first | ||
step. Raising bilingual staffing to meet higher national | ||
standards to fully ensure the effective delivery of essential | ||
services is the long-term goal of the General Assembly. | ||
Section 3-15. Staffing standards. On or before July 1, 2008 | ||
each named agency shall increase and maintain the number of | ||
bilingual on-board frontline staff over the levels that it | ||
maintained on June 30, 2007 as follows: | ||
(1) The Department of Corrections shall have at least | ||
40 additional bilingual on-board frontline staff. |
(2) Mental health and developmental centers operated | ||
by the Department of Human Services shall have at least 20 | ||
additional bilingual on-board frontline staff. | ||
(3) Family and Community Resource Centers operated by | ||
the Department of Human Services shall have at least 100 | ||
additional bilingual on-board frontline staff. | ||
(4) The Department of Children and Family Services | ||
shall have at least 40 additional bilingual on-board | ||
frontline staff. | ||
(5) The Department of Veterans Affairs shall have at | ||
least 5 additional bilingual on-board frontline staff. | ||
(6) The Environmental Protection Agency shall have at | ||
least 5 additional bilingual on-board frontline staff. | ||
(7) The Department of Employment Security shall have at | ||
least 10 additional bilingual on-board frontline staff. | ||
(8) The Department of Natural Resources shall have at | ||
least 5 additional bilingual on-board frontline staff. | ||
(9) The Department of Public Health shall have at least | ||
5 additional bilingual on-board frontline staff. | ||
(10) The Department of State Police shall have at least | ||
5 additional bilingual on-board frontline staff. | ||
(11) The Department of Juvenile Justice shall have at | ||
least 25 additional bilingual on-board frontline staff. | ||
Section 3-20. Accountability. On or before April 1, 2008 | ||
and each year thereafter, each executive branch agency, board, |
and commission shall prepare and submit a report to the General | ||
Assembly on the staffing level of bilingual employees. The | ||
report shall provide data from the previous month, including | ||
but not limited to each employees name, job title, job | ||
description, and languages spoken. | ||
ARTICLE 5. AMENDATORY PROVISIONS | ||
Section 5-1. The State Employees Group Insurance Act of | ||
1971 is amended by changing Section 10 as follows:
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(5 ILCS 375/10) (from Ch. 127, par. 530)
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Sec. 10. Payments by State; premiums.
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(a) The State shall pay the cost of basic non-contributory | ||
group life
insurance and, subject to member paid contributions | ||
set by the Department or
required by this Section, the basic | ||
program of group health benefits on each
eligible member, | ||
except a member, not otherwise
covered by this Act, who has | ||
retired as a participating member under Article 2
of the | ||
Illinois Pension Code but is ineligible for the retirement | ||
annuity under
Section 2-119 of the Illinois Pension Code, and | ||
part of each eligible member's
and retired member's premiums | ||
for health insurance coverage for enrolled
dependents as | ||
provided by Section 9. The State shall pay the cost of the | ||
basic
program of group health benefits only after benefits are | ||
reduced by the amount
of benefits covered by Medicare for all |
members and dependents
who are eligible for benefits under | ||
Social Security or
the Railroad Retirement system or who had | ||
sufficient Medicare-covered
government employment, except that | ||
such reduction in benefits shall apply only
to those members | ||
and dependents who (1) first become eligible
for such Medicare | ||
coverage on or after July 1, 1992; or (2) are
Medicare-eligible | ||
members or dependents of a local government unit which began
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participation in the program on or after July 1, 1992; or (3) | ||
remain eligible
for, but no longer receive Medicare coverage | ||
which they had been receiving on
or after July 1, 1992. The | ||
Department may determine the aggregate level of the
State's | ||
contribution on the basis of actual cost of medical services | ||
adjusted
for age, sex or geographic or other demographic | ||
characteristics which affect
the costs of such programs.
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The cost of participation in the basic program of group | ||
health benefits
for the dependent or survivor of a living or | ||
deceased retired employee who was
formerly employed by the | ||
University of Illinois in the Cooperative Extension
Service and | ||
would be an annuitant but for the fact that he or she was made
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ineligible to participate in the State Universities Retirement | ||
System by clause
(4) of subsection (a) of Section 15-107 of the | ||
Illinois Pension Code shall not
be greater than the cost of | ||
participation that would otherwise apply to that
dependent or | ||
survivor if he or she were the dependent or survivor of an
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annuitant under the State Universities Retirement System.
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(a-1) Beginning January 1, 1998, for each person who |
becomes a new SERS
annuitant and participates in the basic | ||
program of group health benefits, the
State shall contribute | ||
toward the cost of the annuitant's
coverage under the basic | ||
program of group health benefits an amount equal
to 5% of that | ||
cost for each full year of creditable service upon which the
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annuitant's retirement annuity is based, up to a maximum of | ||
100% for an
annuitant with 20 or more years of creditable | ||
service.
The remainder of the cost of a new SERS annuitant's | ||
coverage under the basic
program of group health benefits shall | ||
be the responsibility of the
annuitant. In the case of a new | ||
SERS annuitant who has elected to receive an alternative | ||
retirement cancellation payment under Section 14-108.5 of the | ||
Illinois Pension Code in lieu of an annuity, for the purposes | ||
of this subsection the annuitant shall be deemed to be | ||
receiving a retirement annuity based on the number of years of | ||
creditable service that the annuitant had established at the | ||
time of his or her termination of service under SERS.
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(a-2) Beginning January 1, 1998, for each person who | ||
becomes a new SERS
survivor and participates in the basic | ||
program of group health benefits, the
State shall contribute | ||
toward the cost of the survivor's
coverage under the basic | ||
program of group health benefits an amount equal
to 5% of that | ||
cost for each full year of the deceased employee's or deceased
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annuitant's creditable service in the State Employees' | ||
Retirement System of
Illinois on the date of death, up to a | ||
maximum of 100% for a survivor of an
employee or annuitant with |
20 or more years of creditable service. The
remainder of the | ||
cost of the new SERS survivor's coverage under the basic
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program of group health benefits shall be the responsibility of | ||
the survivor. In the case of a new SERS survivor who was the | ||
dependent of an annuitant who elected to receive an alternative | ||
retirement cancellation payment under Section 14-108.5 of the | ||
Illinois Pension Code in lieu of an annuity, for the purposes | ||
of this subsection the deceased annuitant's creditable service | ||
shall be determined as of the date of termination of service | ||
rather than the date of death.
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(a-3) Beginning January 1, 1998, for each person who | ||
becomes a new SURS
annuitant and participates in the basic | ||
program of group health benefits, the
State shall contribute | ||
toward the cost of the annuitant's
coverage under the basic | ||
program of group health benefits an amount equal
to 5% of that | ||
cost for each full year of creditable service upon which the
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annuitant's retirement annuity is based, up to a maximum of | ||
100% for an
annuitant with 20 or more years of creditable | ||
service.
The remainder of the cost of a new SURS annuitant's | ||
coverage under the basic
program of group health benefits shall | ||
be the responsibility of the
annuitant.
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(a-4) (Blank).
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(a-5) Beginning January 1, 1998, for each person who | ||
becomes a new SURS
survivor and participates in the basic | ||
program of group health benefits, the
State shall contribute | ||
toward the cost of the survivor's coverage under the
basic |
program of group health benefits an amount equal to 5% of that | ||
cost for
each full year of the deceased employee's or deceased | ||
annuitant's creditable
service in the State Universities | ||
Retirement System on the date of death, up to
a maximum of 100% | ||
for a survivor of an
employee or annuitant with 20 or more | ||
years of creditable service. The
remainder of the cost of the | ||
new SURS survivor's coverage under the basic
program of group | ||
health benefits shall be the responsibility of the survivor.
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(a-6) Beginning July 1, 1998, for each person who becomes a | ||
new TRS
State annuitant and participates in the basic program | ||
of group health benefits,
the State shall contribute toward the | ||
cost of the annuitant's coverage under
the basic program of | ||
group health benefits an amount equal to 5% of that cost
for | ||
each full year of creditable service
as a teacher as defined in | ||
paragraph (2), (3), or (5) of Section 16-106 of the
Illinois | ||
Pension Code
upon which the annuitant's retirement annuity is | ||
based, up to a maximum of
100%;
except that
the State | ||
contribution shall be 12.5% per year (rather than 5%) for each | ||
full
year of creditable service as a regional superintendent or | ||
assistant regional
superintendent of schools. The
remainder of | ||
the cost of a new TRS State annuitant's coverage under the | ||
basic
program of group health benefits shall be the | ||
responsibility of the
annuitant.
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(a-7) Beginning July 1, 1998, for each person who becomes a | ||
new TRS
State survivor and participates in the basic program of | ||
group health benefits,
the State shall contribute toward the |
cost of the survivor's coverage under the
basic program of | ||
group health benefits an amount equal to 5% of that cost for
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each full year of the deceased employee's or deceased | ||
annuitant's creditable
service
as a teacher as defined in | ||
paragraph (2), (3), or (5) of Section 16-106 of the
Illinois | ||
Pension Code
on the date of death, up to a maximum of 100%;
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except that the State contribution shall be 12.5% per year | ||
(rather than 5%) for
each full year of the deceased employee's | ||
or deceased annuitant's creditable
service as a regional | ||
superintendent or assistant regional superintendent of
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schools.
The remainder of
the cost of the new TRS State | ||
survivor's coverage under the basic program of
group health | ||
benefits shall be the responsibility of the survivor.
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(a-8) A new SERS annuitant, new SERS survivor, new SURS
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annuitant, new SURS survivor, new TRS State
annuitant, or new | ||
TRS State survivor may waive or terminate coverage in
the | ||
program of group health benefits. Any such annuitant or | ||
survivor
who has waived or terminated coverage may enroll or | ||
re-enroll in the
program of group health benefits only during | ||
the annual benefit choice period,
as determined by the | ||
Director; except that in the event of termination of
coverage | ||
due to nonpayment of premiums, the annuitant or survivor
may | ||
not re-enroll in the program.
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(a-9) No later than May 1 of each calendar year, the | ||
Director
of Central Management Services shall certify in | ||
writing to the Executive
Secretary of the State Employees' |
Retirement System of Illinois the amounts
of the Medicare | ||
supplement health care premiums and the amounts of the
health | ||
care premiums for all other retirees who are not Medicare | ||
eligible.
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A separate calculation of the premiums based upon the | ||
actual cost of each
health care plan shall be so certified.
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The Director of Central Management Services shall provide | ||
to the
Executive Secretary of the State Employees' Retirement | ||
System of
Illinois such information, statistics, and other data | ||
as he or she
may require to review the premium amounts | ||
certified by the Director
of Central Management Services.
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The Department of Healthcare and Family Services, or any | ||
successor agency designated to procure healthcare contracts | ||
pursuant to this Act, is authorized to establish funds, | ||
separate accounts provided by any bank or banks as defined by | ||
the Illinois Banking Act, or separate accounts provided by any | ||
savings and loan association or associations as defined by the | ||
Illinois Savings and Loan Act of 1985 to be held by the | ||
Director, outside the State treasury, for the purpose of | ||
receiving the transfer of moneys from the Local Government | ||
Health Insurance Reserve Fund. The Department may promulgate | ||
rules further defining the methodology for the transfers. Any | ||
interest earned by moneys in the funds or accounts shall inure | ||
to the Local Government Health Insurance Reserve Fund. The | ||
transferred moneys, and interest accrued thereon, shall be used | ||
exclusively for transfers to administrative service |
organizations or their financial institutions for payments of | ||
claims to claimants and providers under the self-insurance | ||
health plan. The transferred moneys, and interest accrued | ||
thereon, shall not be used for any other purpose including, but | ||
not limited to, reimbursement of administration fees due the | ||
administrative service organization pursuant to its contract | ||
or contracts with the Department.
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(b) State employees who become eligible for this program on | ||
or after January
1, 1980 in positions normally requiring actual | ||
performance of duty not less
than 1/2 of a normal work period | ||
but not equal to that of a normal work period,
shall be given | ||
the option of participating in the available program. If the
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employee elects coverage, the State shall contribute on behalf | ||
of such employee
to the cost of the employee's benefit and any | ||
applicable dependent supplement,
that sum which bears the same | ||
percentage as that percentage of time the
employee regularly | ||
works when compared to normal work period.
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(c) The basic non-contributory coverage from the basic | ||
program of
group health benefits shall be continued for each | ||
employee not in pay status or
on active service by reason of | ||
(1) leave of absence due to illness or injury,
(2) authorized | ||
educational leave of absence or sabbatical leave, or (3)
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military leave with pay and benefits. This coverage shall | ||
continue until
expiration of authorized leave and return to | ||
active service, but not to exceed
24 months for leaves under | ||
item (1) or (2). This 24-month limitation and the
requirement |
of returning to active service shall not apply to persons | ||
receiving
ordinary or accidental disability benefits or | ||
retirement benefits through the
appropriate State retirement | ||
system or benefits under the Workers' Compensation
or | ||
Occupational Disease Act.
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(d) The basic group life insurance coverage shall continue, | ||
with
full State contribution, where such person is (1) absent | ||
from active
service by reason of disability arising from any | ||
cause other than
self-inflicted, (2) on authorized educational | ||
leave of absence or
sabbatical leave, or (3) on military leave | ||
with pay and benefits.
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(e) Where the person is in non-pay status for a period in | ||
excess of
30 days or on leave of absence, other than by reason | ||
of disability,
educational or sabbatical leave, or military | ||
leave with pay and benefits, such
person may continue coverage | ||
only by making personal
payment equal to the amount normally | ||
contributed by the State on such person's
behalf. Such payments | ||
and coverage may be continued: (1) until such time as
the | ||
person returns to a status eligible for coverage at State | ||
expense, but not
to exceed 24 months, (2) until such person's | ||
employment or annuitant status
with the State is terminated, or | ||
(3) for a maximum period of 4 years for
members on military | ||
leave with pay and benefits and military leave without pay
and | ||
benefits (exclusive of any additional service imposed pursuant | ||
to law).
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(f) The Department shall establish by rule the extent to |
which other
employee benefits will continue for persons in | ||
non-pay status or who are
not in active service.
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(g) The State shall not pay the cost of the basic | ||
non-contributory
group life insurance, program of health | ||
benefits and other employee benefits
for members who are | ||
survivors as defined by paragraphs (1) and (2) of
subsection | ||
(q) of Section 3 of this Act. The costs of benefits for these
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survivors shall be paid by the survivors or by the University | ||
of Illinois
Cooperative Extension Service, or any combination | ||
thereof.
However, the State shall pay the amount of the | ||
reduction in the cost of
participation, if any, resulting from | ||
the amendment to subsection (a) made
by this amendatory Act of | ||
the 91st General Assembly.
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(h) Those persons occupying positions with any department | ||
as a result
of emergency appointments pursuant to Section 8b.8 | ||
of the Personnel Code
who are not considered employees under | ||
this Act shall be given the option
of participating in the | ||
programs of group life insurance, health benefits and
other | ||
employee benefits. Such persons electing coverage may | ||
participate only
by making payment equal to the amount normally | ||
contributed by the State for
similarly situated employees. Such | ||
amounts shall be determined by the
Director. Such payments and | ||
coverage may be continued until such time as the
person becomes | ||
an employee pursuant to this Act or such person's appointment | ||
is
terminated.
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(i) Any unit of local government within the State of |
Illinois
may apply to the Director to have its employees, | ||
annuitants, and their
dependents provided group health | ||
coverage under this Act on a non-insured
basis. To participate, | ||
a unit of local government must agree to enroll
all of its | ||
employees, who may select coverage under either the State group
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health benefits plan or a health maintenance organization that | ||
has
contracted with the State to be available as a health care | ||
provider for
employees as defined in this Act. A unit of local | ||
government must remit the
entire cost of providing coverage | ||
under the State group health benefits plan
or, for coverage | ||
under a health maintenance organization, an amount determined
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by the Director based on an analysis of the sex, age, | ||
geographic location, or
other relevant demographic variables | ||
for its employees, except that the unit of
local government | ||
shall not be required to enroll those of its employees who are
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covered spouses or dependents under this plan or another group | ||
policy or plan
providing health benefits as long as (1) an | ||
appropriate official from the unit
of local government attests | ||
that each employee not enrolled is a covered spouse
or | ||
dependent under this plan or another group policy or plan, and | ||
(2) at least
85% of the employees are enrolled and the unit of | ||
local government remits
the entire cost of providing coverage | ||
to those employees, except that a
participating school district | ||
must have enrolled at least 85% of its full-time
employees who | ||
have not waived coverage under the district's group health
plan | ||
by participating in a component of the district's cafeteria |
plan. A
participating school district is not required to enroll | ||
a full-time employee
who has waived coverage under the | ||
district's health plan, provided that an
appropriate official | ||
from the participating school district attests that the
| ||
full-time employee has waived coverage by participating in a | ||
component of the
district's cafeteria plan. For the purposes of | ||
this subsection, "participating
school district" includes a | ||
unit of local government whose primary purpose is
education as | ||
defined by the Department's rules.
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Employees of a participating unit of local government who | ||
are not enrolled
due to coverage under another group health | ||
policy or plan may enroll in
the event of a qualifying change | ||
in status, special enrollment, special
circumstance as defined | ||
by the Director, or during the annual Benefit Choice
Period. A | ||
participating unit of local government may also elect to cover | ||
its
annuitants. Dependent coverage shall be offered on an | ||
optional basis, with the
costs paid by the unit of local | ||
government, its employees, or some combination
of the two as | ||
determined by the unit of local government. The unit of local
| ||
government shall be responsible for timely collection and | ||
transmission of
dependent premiums.
| ||
The Director shall annually determine monthly rates of | ||
payment, subject
to the following constraints:
| ||
(1) In the first year of coverage, the rates shall be | ||
equal to the
amount normally charged to State employees for | ||
elected optional coverages
or for enrolled dependents |
coverages or other contributory coverages, or
contributed | ||
by the State for basic insurance coverages on behalf of its
| ||
employees, adjusted for differences between State | ||
employees and employees
of the local government in age, | ||
sex, geographic location or other relevant
demographic | ||
variables, plus an amount sufficient to pay for the | ||
additional
administrative costs of providing coverage to | ||
employees of the unit of
local government and their | ||
dependents.
| ||
(2) In subsequent years, a further adjustment shall be | ||
made to reflect
the actual prior years' claims experience | ||
of the employees of the unit of
local government.
| ||
In the case of coverage of local government employees under | ||
a health
maintenance organization, the Director shall annually | ||
determine for each
participating unit of local government the | ||
maximum monthly amount the unit
may contribute toward that | ||
coverage, based on an analysis of (i) the age,
sex, geographic | ||
location, and other relevant demographic variables of the
| ||
unit's employees and (ii) the cost to cover those employees | ||
under the State
group health benefits plan. The Director may | ||
similarly determine the
maximum monthly amount each unit of | ||
local government may contribute toward
coverage of its | ||
employees' dependents under a health maintenance organization.
| ||
Monthly payments by the unit of local government or its | ||
employees for
group health benefits plan or health maintenance | ||
organization coverage shall
be deposited in the Local |
Government Health Insurance Reserve Fund.
| ||
The Local Government Health Insurance Reserve Fund is | ||
hereby created as a nonappropriated trust fund to be held | ||
outside the State Treasury, with the State Treasurer as | ||
custodian. The Local Government Health Insurance Reserve Fund | ||
shall be a continuing
fund not subject to fiscal year | ||
limitations. All revenues arising from the administration of | ||
the health benefits program established under this Section | ||
shall be deposited into the Local Government Health Insurance | ||
Reserve Fund. Any interest earned on moneys in the Local | ||
Government Health Insurance Reserve Fund shall be deposited | ||
into the Fund. All expenditures from this Fund
shall be used | ||
for payments for health care benefits for local government and | ||
rehabilitation facility
employees, annuitants, and dependents, | ||
and to reimburse the Department or
its administrative service | ||
organization for all expenses incurred in the
administration of | ||
benefits. No other State funds may be used for these
purposes.
| ||
A local government employer's participation or desire to | ||
participate
in a program created under this subsection shall | ||
not limit that employer's
duty to bargain with the | ||
representative of any collective bargaining unit
of its | ||
employees.
| ||
(j) Any rehabilitation facility within the State of | ||
Illinois may apply
to the Director to have its employees, | ||
annuitants, and their eligible
dependents provided group | ||
health coverage under this Act on a non-insured
basis. To |
participate, a rehabilitation facility must agree to enroll all
| ||
of its employees and remit the entire cost of providing such | ||
coverage for
its employees, except that the rehabilitation | ||
facility shall not be
required to enroll those of its employees | ||
who are covered spouses or
dependents under this plan or | ||
another group policy or plan providing health
benefits as long | ||
as (1) an appropriate official from the rehabilitation
facility | ||
attests that each employee not enrolled is a covered spouse or
| ||
dependent under this plan or another group policy or plan, and | ||
(2) at least
85% of the employees are enrolled and the | ||
rehabilitation facility remits
the entire cost of providing | ||
coverage to those employees. Employees of a
participating | ||
rehabilitation facility who are not enrolled due to coverage
| ||
under another group health policy or plan may enroll
in the | ||
event of a qualifying change in status, special enrollment, | ||
special
circumstance as defined by the Director, or during the | ||
annual Benefit Choice
Period. A participating rehabilitation | ||
facility may also elect
to cover its annuitants. Dependent | ||
coverage shall be offered on an optional
basis, with the costs | ||
paid by the rehabilitation facility, its employees, or
some | ||
combination of the 2 as determined by the rehabilitation | ||
facility. The
rehabilitation facility shall be responsible for | ||
timely collection and
transmission of dependent premiums.
| ||
The Director shall annually determine quarterly rates of | ||
payment, subject
to the following constraints:
| ||
(1) In the first year of coverage, the rates shall be |
equal to the amount
normally charged to State employees for | ||
elected optional coverages or for
enrolled dependents | ||
coverages or other contributory coverages on behalf of
its | ||
employees, adjusted for differences between State | ||
employees and
employees of the rehabilitation facility in | ||
age, sex, geographic location
or other relevant | ||
demographic variables, plus an amount sufficient to pay
for | ||
the additional administrative costs of providing coverage | ||
to employees
of the rehabilitation facility and their | ||
dependents.
| ||
(2) In subsequent years, a further adjustment shall be | ||
made to reflect
the actual prior years' claims experience | ||
of the employees of the
rehabilitation facility.
| ||
Monthly payments by the rehabilitation facility or its | ||
employees for
group health benefits shall be deposited in the | ||
Local Government Health
Insurance Reserve Fund.
| ||
(k) Any domestic violence shelter or service within the | ||
State of Illinois
may apply to the Director to have its | ||
employees, annuitants, and their
dependents provided group | ||
health coverage under this Act on a non-insured
basis. To | ||
participate, a domestic violence shelter or service must agree | ||
to
enroll all of its employees and pay the entire cost of | ||
providing such coverage
for its employees. A participating | ||
domestic violence shelter may also elect
to cover its | ||
annuitants. Dependent coverage shall be offered on an optional
| ||
basis, with
employees, or some combination of the 2 as |
determined by the domestic violence
shelter or service. The | ||
domestic violence shelter or service shall be
responsible for | ||
timely collection and transmission of dependent premiums.
| ||
The Director shall annually determine rates of payment,
| ||
subject to the following constraints:
| ||
(1) In the first year of coverage, the rates shall be | ||
equal to the
amount normally charged to State employees for | ||
elected optional coverages
or for enrolled dependents | ||
coverages or other contributory coverages on
behalf of its | ||
employees, adjusted for differences between State | ||
employees and
employees of the domestic violence shelter or | ||
service in age, sex, geographic
location or other relevant | ||
demographic variables, plus an amount sufficient
to pay for | ||
the additional administrative costs of providing coverage | ||
to
employees of the domestic violence shelter or service | ||
and their dependents.
| ||
(2) In subsequent years, a further adjustment shall be | ||
made to reflect
the actual prior years' claims experience | ||
of the employees of the domestic
violence shelter or | ||
service.
| ||
Monthly payments by the domestic violence shelter or | ||
service or its employees
for group health insurance shall be | ||
deposited in the Local Government Health
Insurance Reserve | ||
Fund.
| ||
(l) A public community college or entity organized pursuant | ||
to the
Public Community College Act may apply to the Director |
initially to have
only annuitants not covered prior to July 1, | ||
1992 by the district's health
plan provided health coverage | ||
under this Act on a non-insured basis. The
community college | ||
must execute a 2-year contract to participate in the
Local | ||
Government Health Plan.
Any annuitant may enroll in the event | ||
of a qualifying change in status, special
enrollment, special | ||
circumstance as defined by the Director, or during the
annual | ||
Benefit Choice Period.
| ||
The Director shall annually determine monthly rates of | ||
payment subject to
the following constraints: for those | ||
community colleges with annuitants
only enrolled, first year | ||
rates shall be equal to the average cost to cover
claims for a | ||
State member adjusted for demographics, Medicare
| ||
participation, and other factors; and in the second year, a | ||
further adjustment
of rates shall be made to reflect the actual | ||
first year's claims experience
of the covered annuitants.
| ||
(l-5) The provisions of subsection (l) become inoperative | ||
on July 1, 1999.
| ||
(m) The Director shall adopt any rules deemed necessary for
| ||
implementation of this amendatory Act of 1989 (Public Act | ||
86-978).
| ||
(n) Any child advocacy center within the State of Illinois | ||
may apply to the Director to have its employees, annuitants, | ||
and their dependents provided group health coverage under this | ||
Act on a non-insured basis. To participate, a child advocacy | ||
center must agree to enroll all of its employees and pay the |
entire cost of providing coverage for its employees. A | ||
participating child advocacy center may also elect to cover its | ||
annuitants. Dependent coverage shall be offered on an optional | ||
basis, with the costs paid by the child advocacy center, its | ||
employees, or some combination of the 2 as determined by the | ||
child advocacy center. The child advocacy center shall be | ||
responsible for timely collection and transmission of | ||
dependent premiums. | ||
The Director shall annually determine rates of payment, | ||
subject to the following constraints: | ||
(1) In the first year of coverage, the rates shall be | ||
equal to the amount normally charged to State employees for | ||
elected optional coverages or for enrolled dependents | ||
coverages or other contributory coverages on behalf of its | ||
employees, adjusted for differences between State | ||
employees and employees of the child advocacy center in | ||
age, sex, geographic location, or other relevant | ||
demographic variables, plus an amount sufficient to pay for | ||
the additional administrative costs of providing coverage | ||
to employees of the child advocacy center and their | ||
dependents. | ||
(2) In subsequent years, a further adjustment shall be | ||
made to reflect the actual prior years' claims experience | ||
of the employees of the child advocacy center. | ||
Monthly payments by the child advocacy center or its | ||
employees for group health insurance shall be deposited into |
the Local Government Health Insurance Reserve Fund. | ||
(Source: P.A. 94-839, eff. 6-6-06; 94-860, eff. 6-16-06; | ||
95-331, eff. 8-21-07; 95-632, eff. 9-25-07.)
| ||
Section 5-5. The Mental Health and Developmental | ||
Disabilities Administrative Act is amended by changing | ||
Sections 18.4, 18.5, and 57.5 as follows:
| ||
(20 ILCS 1705/18.4)
| ||
Sec. 18.4. Community Mental Health Medicaid Trust Fund; | ||
reimbursement.
| ||
(a) The Community Mental Health Medicaid Trust Fund is | ||
hereby created
in the State Treasury.
| ||
(b) Amounts
Except as otherwise provided in this Section, | ||
following repayment of interfund transfers under subsection | ||
(b-1), amounts paid to the State during each State fiscal year | ||
by the federal government under Title XIX
or Title XXI of the | ||
Social Security Act for services delivered by community
mental | ||
health providers, and any interest earned thereon, shall be
| ||
deposited as follows: | ||
(1) The first $75,000,000 shall be deposited directly | ||
into the Community Mental Health Medicaid Trust Fund to be | ||
used for the purchase of community mental health services; | ||
(2) The next $4,500,000 shall be deposited directly | ||
into the Community Mental Health Medicaid Trust Fund to be | ||
used by the Department of Human Services' Division of |
Mental Health for the oversight and administration of | ||
community mental health services and up to $1,000,000 of | ||
this amount may be used for support of community mental | ||
health service initiatives; and | ||
(3) The next $3,500,000 shall be deposited directly | ||
into the General Revenue Fund;
| ||
(4) Any additional amounts shall be deposited 50% into | ||
the Community Mental Health Medicaid Trust Fund to be used | ||
for the purchase of community mental health services and | ||
50% into the General Revenue Fund .
| ||
(b-1) For State fiscal year 2005, the first $73,000,000 in | ||
any funds paid to the State by the federal government under | ||
Title XIX or Title XXI of the Social Security Act for services | ||
delivered by community mental health services providers, and | ||
any interest earned thereon, shall be deposited directly into | ||
the Community Mental Health Medicaid Trust Fund before any | ||
deposits are made into the General Revenue Fund. The next | ||
$25,000,000, less any deposits made prior to the effective date | ||
of this amendatory Act of the 94th General Assembly, shall be | ||
deposited into the General Revenue Fund. Amounts received in | ||
excess of $98,000,000 shall be deposited 50% into the General | ||
Revenue Fund and 50% into the Community Mental Health Medicaid | ||
Trust Fund. At the direction of the Director of Healthcare and | ||
Family Services, on April 1, 2005, or as soon thereafter as | ||
practical, the Comptroller shall direct and the State Treasurer | ||
shall transfer amounts not to exceed $14,000,000 into the |
Community Mental Health Medicaid Trust
Fund from the Public Aid | ||
Recoveries Trust Fund. | ||
(b-2) For State fiscal year 2006, and in subsequent fiscal | ||
years until any transfers under subsection (b-1) are repaid, | ||
the first $73,000,000 in any funds paid to the State by the | ||
federal government under Title XIX or Title XXI of the Social | ||
Security Act for services delivered by community mental health | ||
providers, and any interest earned thereon, shall be deposited | ||
directly into the Community Mental Health Medicaid
Trust Fund. | ||
Then the next $14,000,000, or such amount as was transferred | ||
under subsection (b-1) at the direction of the Director of | ||
Healthcare and Family Services, shall be deposited into the | ||
Public Aid Recoveries Trust Fund.
Any additional amounts | ||
received shall be deposited in accordance with subsection (b).
| ||
(c) The Department shall reimburse community mental health
| ||
providers for
services provided to eligible
individuals. | ||
Moneys in the Community Mental Health Medicaid Trust Fund may | ||
be
used for that purpose.
| ||
(d) As used in this Section:
| ||
"Community mental health provider" means a community | ||
agency that is funded by the Department to
provide a service.
| ||
"Service" means a mental health service
provided pursuant | ||
to the provisions of administrative rules adopted by the | ||
Department and funded by the Department of Human Services' | ||
Division of Mental Health.
| ||
(Source: P.A. 93-841, eff. 7-30-04; 94-58, eff. 6-17-05; |
94-839, eff. 6-6-06.)
| ||
(20 ILCS 1705/18.5) | ||
Sec. 18.5. Community Developmental Disability Services | ||
Medicaid Trust Fund; reimbursement. | ||
(a) The Community Developmental Disability Services | ||
Medicaid Trust Fund is hereby created in the State treasury.
| ||
(b) Except as provided in subsection (b-5), any Any funds | ||
in excess of $16,700,000 in any fiscal year paid to the State | ||
by the federal government under Title XIX or Title XXI of the | ||
Social Security Act for services delivered by community | ||
developmental disability services providers for services | ||
relating to Developmental Training and Community Integrated | ||
Living Arrangements as a result of the conversion of such | ||
providers from a grant payment methodology to a fee-for-service | ||
payment methodology, or any other funds paid to the State for | ||
any subsequent revenue maximization initiatives performed by | ||
such providers, and any interest earned thereon, shall be | ||
deposited directly into the Community Developmental Disability | ||
Services Medicaid Trust Fund. One-third of this amount shall be | ||
used only to pay for Medicaid-reimbursed community | ||
developmental disability services provided to eligible | ||
individuals, and the remainder shall be transferred to the | ||
General Revenue Fund. | ||
(b-5) Beginning in State fiscal year 2008, any funds paid | ||
to the State by the federal government under Title XIX or Title |
XXI of the Social Security Act for services delivered through | ||
the Children's Residential Waiver and the Children's In-Home | ||
Support Waiver shall be deposited directly into the Community | ||
Developmental Disability Services Medicaid Trust Fund and | ||
shall not be subject to the transfer provisions of subsection | ||
(b). | ||
(c) For purposes of this Section: | ||
"Medicaid-reimbursed developmental disability services" | ||
means services provided by a community developmental | ||
disability provider under an agreement with the Department that | ||
is eligible for reimbursement under the federal Title XIX | ||
program or Title XXI program. | ||
"Provider" means a qualified entity as defined in the | ||
State's Home and
Community-Based Services Waiver for Persons | ||
with Developmental Disabilities that is funded by the | ||
Department to provide a Medicaid-reimbursed service. | ||
"Revenue maximization alternatives" do not include | ||
increases in
funds paid to the State as a result of growth in | ||
spending through service expansion or
rate increases.
| ||
(Source: P.A. 93-841, eff. 7-30-04.)
| ||
(20 ILCS 1705/57.5)
| ||
Sec. 57.5. Autism diagnosis education program.
| ||
(a) Subject to appropriations, the Department shall | ||
contract to establish an
autism
diagnosis
education program for | ||
young children. The Department
shall
establish the program at 3 |
different sites in the State. The program shall have
the
| ||
following goals:
| ||
(1) Providing, to medical professionals and others | ||
statewide, a systems
development initiative that promotes | ||
best practice standards for the diagnosis
and
treatment | ||
planning for young children who have autism
spectrum | ||
disorders, for the purpose of helping existing systems of | ||
care to
build
solid circles of expertise within their | ||
ranks.
| ||
(2) Educating medical practitioners, school personnel, | ||
day care providers,
parents, and community service | ||
providers (including, but not limited to, early
| ||
intervention and developmental disabilities providers) | ||
throughout the State on
appropriate diagnosis and | ||
treatment of autism.
| ||
(3) Supporting systems of care for young children with | ||
autism spectrum
disorders.
| ||
(4) Working together with universities and | ||
developmental disabilities
providers to identify unmet | ||
needs and resources.
| ||
(5) Encouraging and supporting research on optional | ||
services for young
children with autism spectrum | ||
disorders.
| ||
In addition to the aforementioned items, on January 1, | ||
2008, The Autism Program shall expand training and direct | ||
services by deploying additional regional centers, outreach |
centers, and community planning and network development | ||
initiatives. The expanded Autism Program Service Network shall | ||
consist of a comprehensive program of outreach and center | ||
development utilizing model programs developed by The Autism | ||
Program. This expansion shall span Illinois and support | ||
consensus building, outreach, and service provision for | ||
children with autism spectrums disorders and their families. | ||
(b) Before January 1, 2006, the Department shall report to | ||
the Governor and
the
General Assembly concerning the progress | ||
of the autism diagnosis education
program
established under | ||
this Section.
| ||
(Source: P.A. 93-395, eff. 7-29-03.)
| ||
Section 5-7. The Hospital Basic Services Preservation Act | ||
is amended by changing Sections 5 and 20 as follows: | ||
(20 ILCS 4050/5)
| ||
Sec. 5. Definitions. As used in this Act: | ||
"Basic services" means emergency room and obstetrical | ||
services provided within a hospital. "Basic services" is | ||
limited to the emergency and obstetric units and services | ||
provided by those units. | ||
"Eligible expenses" means expenses for expanding | ||
obstetrical or emergency units, updating equipment, repairing | ||
essential equipment, and purchasing new equipment that will | ||
increase the quality of basic services provided. "Eligible |
expenses" does not include expenses related to cosmetic | ||
upgrades, staff expansion or salary, or structural expansion of | ||
any unit or department of a hospital other than obstetrical or | ||
emergency units . | ||
"Essential community hospital provider" means a facility | ||
meeting criteria established by rule by the State Treasurer.
| ||
(Source: P.A. 94-648, eff. 1-1-06.) | ||
(20 ILCS 4050/20)
| ||
Sec. 20. Responsibility of hospitals. Each hospital that | ||
receives a loan collateralized under this Act shall take the | ||
necessary measures, as defined by the State Treasurer by rule, | ||
to account for all moneys and to ensure that they are spent on | ||
the basic services for which the loan was approved. Any | ||
hospital receiving a loan collateralized under this Act is not | ||
eligible for collateralization of another basic services loan | ||
under this Act within 10 years after the deposit of funds | ||
awarded under the first collateralized loan.
| ||
(Source: P.A. 94-648, eff. 1-1-06.)
| ||
Section 5-10. The State Finance Act is amended by changing | ||
Sections 6z-65.5, 6z-66, 6z-67, 8.3, 8.27, 8g, 13.2, and 14.1 | ||
and by adding Sections 5.675, 5.676, 5.677, 5.678, 6z-69, | ||
6z-70, and 25.5 as follows: | ||
(30 ILCS 105/5.675 new) |
Sec. 5.675. The Human Services Priority Capital Program | ||
Fund. | ||
(30 ILCS 105/5.676 new)
| ||
Sec. 5.676. The Predatory Lending Database Program Fund. | ||
(30 ILCS 105/5.677 new)
| ||
Sec. 5.677. The Secretary of State Identification Security | ||
and Theft Prevention Fund.
| ||
(30 ILCS 105/5.678 new)
| ||
Sec. 5.678. The Franchise Tax and License Fee Amnesty | ||
Administration Fund.
| ||
(30 ILCS 105/6z-65.5)
| ||
Sec. 6z-65.5. SBE Federal Department of Education Fund. The | ||
SBE Federal Department of Education Fund is created as a | ||
federal trust fund in the State treasury. This fund is | ||
established to receive funds from the federal Department of | ||
Education, including non-indirect cost administrative funds | ||
recovered from federal programs, for the specific purposes | ||
established by the terms and conditions of federal awards. | ||
Moneys in the SBE Federal Department of Education Fund shall be | ||
used, subject to appropriation by the General Assembly, for | ||
grants and contracts to local education agencies, colleges and | ||
universities, and other State agencies and for administrative |
expenses of the State Board of Education. However, | ||
non-appropriated spending is allowed for the refund of | ||
unexpended grant moneys to the federal government. The SBE | ||
Federal Department of Education Fund shall serve as the | ||
successor fund to the National Center for Education Statistics | ||
Fund, and any balance remaining in the National Center for | ||
Education Statistics Fund on the effective date of this | ||
amendatory Act of the 94th General Assembly must be transferred | ||
to the SBE Federal Department of Education Fund by the State | ||
Treasurer. Any future deposits that would otherwise be made | ||
into the National Center for Education Statistics Fund must | ||
instead be made into the SBE Federal Department of Education | ||
Fund.
| ||
On or after July 1, 2007, the State Board of Education | ||
shall notify the State Comptroller of the amount of indirect | ||
federal funds in the SBE Federal Department of Education Fund | ||
to be transferred to the State Board of Education Special | ||
Purpose Trust Fund. The State Comptroller shall direct and the | ||
State Treasurer shall transfer this amount to the State Board | ||
of Education Special Purpose Trust Fund as soon as practical | ||
thereafter. | ||
(Source: P.A. 93-838, eff. 7-30-04; 94-69, eff. 7-1-05.)
| ||
(30 ILCS 105/6z-66) | ||
Sec. 6z-66. SBE Federal Agency Services Fund. The SBE | ||
Federal Agency Services Fund is created as a federal trust fund |
in the State treasury. This fund is established to receive | ||
funds from all federal departments and agencies except the | ||
Departments of Education and Agriculture (including among | ||
others the Departments of Health and Human Services, Defense, | ||
and Labor and the Corporation for National and Community | ||
Service), including non-indirect cost administrative funds | ||
recovered from federal programs, for the specific purposes | ||
established by the terms and conditions of federal awards. | ||
Moneys in the SBE Federal Agency Services Fund shall be used, | ||
subject to appropriation by the General Assembly, for grants | ||
and contracts to local education agencies, colleges and | ||
universities, and other State agencies and for administrative | ||
expenses of the State Board of Education. However, | ||
non-appropriated spending is allowed for the refund of | ||
unexpended grant moneys to the federal government. The SBE | ||
Federal Agency Services Fund shall serve as the successor fund | ||
to the SBE Department of Health and Human Services Fund, the | ||
SBE Federal Department of Labor Federal Trust Fund, and the SBE | ||
Federal National Community Service Fund; and any balance | ||
remaining in the SBE Department of Health and Human Services | ||
Fund, the SBE Federal Department of Labor Federal Trust Fund, | ||
or the SBE Federal National Community Service Fund on the | ||
effective date of this amendatory Act of the 94th General | ||
Assembly must be transferred to the SBE Federal Agency Services | ||
Fund by the State Treasurer. Any future deposits that would | ||
otherwise be made into the SBE Department of Health and Human |
Services Fund, the SBE Federal Department of Labor Federal | ||
Trust Fund, or the SBE Federal National Community Service Fund | ||
must instead be made into the SBE Federal Agency Services Fund.
| ||
On or after July 1, 2007, the State Board of Education | ||
shall notify the State Comptroller of the amount of indirect | ||
federal funds in the SBE Federal Agency Services Fund to be | ||
transferred to the State Board of Education Special Purpose | ||
Trust Fund. The State Comptroller shall direct and the State | ||
Treasurer shall transfer this amount to the State Board of | ||
Education Special Purpose Trust Fund as soon as practical | ||
thereafter. | ||
(Source: P.A. 93-838, eff. 7-30-04; 94-69, eff. 7-1-05.) | ||
(30 ILCS 105/6z-67) | ||
Sec. 6z-67. SBE Federal Department of Agriculture Fund. The | ||
SBE Federal Department of Agriculture Fund is created as a | ||
federal trust fund in the State treasury. This fund is | ||
established to receive funds from the federal Department of | ||
Agriculture, including non-indirect cost administrative funds | ||
recovered from federal programs, for the specific purposes | ||
established by the terms and conditions of federal awards. | ||
Moneys in the SBE Federal Department of Agriculture Fund shall | ||
be used, subject to appropriation by the General Assembly, for | ||
grants and contracts to local education agencies, colleges and | ||
universities, and other State agencies and for administrative | ||
expenses of the State Board of Education. However, |
non-appropriated spending is allowed for the refund of | ||
unexpended grant moneys to the federal government.
| ||
On or after July 1, 2007, the State Board of Education | ||
shall notify the State Comptroller of the amount of indirect | ||
federal funds in the SBE Federal Department of Agriculture Fund | ||
to be transferred to the State Board of Education Special | ||
Purpose Trust Fund. The State Comptroller shall direct and the | ||
State Treasurer shall transfer this amount to the State Board | ||
of Education Special Purpose Trust Fund as soon as practical | ||
thereafter. | ||
(Source: P.A. 93-838, eff. 7-30-04; 94-69, eff. 7-1-05; 94-835, | ||
eff. 6-6-06.) | ||
(30 ILCS 105/6z-69 new)
| ||
Sec. 6z-69. Human Services Priority Capital Program Fund. | ||
The Human Services Priority Capital Program Fund is created as | ||
a special fund in the State treasury. Subject to appropriation, | ||
the Department of Human Services shall use moneys in the Human | ||
Services Priority Capital Program Fund to make grants to the | ||
Illinois Facilities Fund, a not-for-profit corporation, to | ||
make long term below market rate loans to nonprofit human | ||
service providers working under contract to the State of | ||
Illinois to assist those providers in meeting their capital | ||
needs. The loans shall be for the purpose of such capital | ||
needs, including but not limited to special use facilities, | ||
requirements for serving the disabled, mentally ill, or |
substance abusers, and medical and technology equipment. Loan | ||
repayments shall be deposited into the Human Services Priority | ||
Capital Program Fund. Interest income may be used to cover | ||
expenses of the program. The Illinois Facilities Fund shall | ||
report to the Department of Human Services and the General | ||
Assembly by April 1, 2008 as to the use and earnings of the | ||
program. | ||
(30 ILCS 105/6z-70 new) | ||
Sec. 6z-70. The Secretary of State Identification Security | ||
and Theft Prevention Fund. | ||
(a) The Secretary of State Identification Security and | ||
Theft Prevention Fund is created as a special fund in the State | ||
treasury. The Fund shall consist of any fund transfers, grants, | ||
fees, or moneys from other sources received for the purpose of | ||
funding identification security and theft prevention measures. | ||
(b) All moneys in the Secretary of State Identification | ||
Security and Theft Prevention Fund shall be used, subject to | ||
appropriation, for any costs related to implementing | ||
identification security and theft prevention measures. | ||
(c) Notwithstanding any other provision of State law to the | ||
contrary, on or after July 1, 2007, and until June 30, 2008, in | ||
addition to any other transfers that may be provided for by | ||
law, at the direction of and upon notification of the Secretary | ||
of State, the State Comptroller shall direct and the State | ||
Treasurer shall transfer amounts into the Secretary of State |
Identification Security and Theft Prevention Fund from the | ||
designated funds not exceeding the following totals: | ||
Lobbyist Registration Administration Fund .......$100,000 | ||
Registered Limited Liability Partnership Fund ....$75,000 | ||
Securities Investors Education Fund .............$500,000 | ||
Securities Audit and Enforcement Fund .........$5,725,000 | ||
Department of Business Services | ||
Special Operations Fund .......................$3,000,000 | ||
Corporate Franchise Tax Refund Fund ..........$3,000,000.
| ||
(30 ILCS 105/8.3) (from Ch. 127, par. 144.3)
| ||
Sec. 8.3. Money in the Road Fund shall, if and when the | ||
State of
Illinois incurs any bonded indebtedness for the | ||
construction of
permanent highways, be set aside and used for | ||
the purpose of paying and
discharging annually the principal | ||
and interest on that bonded
indebtedness then due and payable, | ||
and for no other purpose. The
surplus, if any, in the Road Fund | ||
after the payment of principal and
interest on that bonded | ||
indebtedness then annually due shall be used as
follows:
| ||
first -- to pay the cost of administration of Chapters | ||
2 through 10 of
the Illinois Vehicle Code, except the cost | ||
of administration of Articles I and
II of Chapter 3 of that | ||
Code; and
| ||
secondly -- for expenses of the Department of | ||
Transportation for
construction, reconstruction, | ||
improvement, repair, maintenance,
operation, and |
administration of highways in accordance with the
| ||
provisions of laws relating thereto, or for any purpose | ||
related or
incident to and connected therewith, including | ||
the separation of grades
of those highways with railroads | ||
and with highways and including the
payment of awards made | ||
by the Illinois Workers' Compensation Commission under the | ||
terms of
the Workers' Compensation Act or Workers' | ||
Occupational Diseases Act for
injury or death of an | ||
employee of the Division of Highways in the
Department of | ||
Transportation; or for the acquisition of land and the
| ||
erection of buildings for highway purposes, including the | ||
acquisition of
highway right-of-way or for investigations | ||
to determine the reasonably
anticipated future highway | ||
needs; or for making of surveys, plans,
specifications and | ||
estimates for and in the construction and maintenance
of | ||
flight strips and of highways necessary to provide access | ||
to military
and naval reservations, to defense industries | ||
and defense-industry
sites, and to the sources of raw | ||
materials and for replacing existing
highways and highway | ||
connections shut off from general public use at
military | ||
and naval reservations and defense-industry sites, or for | ||
the
purchase of right-of-way, except that the State shall | ||
be reimbursed in
full for any expense incurred in building | ||
the flight strips; or for the
operating and maintaining of | ||
highway garages; or for patrolling and
policing the public | ||
highways and conserving the peace; or for the operating |
expenses of the Department relating to the administration | ||
of public transportation programs; or for any of
those | ||
purposes or any other purpose that may be provided by law.
| ||
Appropriations for any of those purposes are payable from | ||
the Road
Fund. Appropriations may also be made from the Road | ||
Fund for the
administrative expenses of any State agency that | ||
are related to motor
vehicles or arise from the use of motor | ||
vehicles.
| ||
Beginning with fiscal year 1980 and thereafter, no Road | ||
Fund monies
shall be appropriated to the following Departments | ||
or agencies of State
government for administration, grants, or | ||
operations; but this
limitation is not a restriction upon | ||
appropriating for those purposes any
Road Fund monies that are | ||
eligible for federal reimbursement;
| ||
1. Department of Public Health;
| ||
2. Department of Transportation, only with respect to | ||
subsidies for
one-half fare Student Transportation and | ||
Reduced Fare for Elderly;
| ||
3. Department of Central Management
Services, except | ||
for expenditures
incurred for group insurance premiums of | ||
appropriate personnel;
| ||
4. Judicial Systems and Agencies.
| ||
Beginning with fiscal year 1981 and thereafter, no Road | ||
Fund monies
shall be appropriated to the following Departments | ||
or agencies of State
government for administration, grants, or | ||
operations; but this
limitation is not a restriction upon |
appropriating for those purposes any
Road Fund monies that are | ||
eligible for federal reimbursement:
| ||
1. Department of State Police, except for expenditures | ||
with
respect to the Division of Operations;
| ||
2. Department of Transportation, only with respect to | ||
Intercity Rail
Subsidies and Rail Freight Services.
| ||
Beginning with fiscal year 1982 and thereafter, no Road | ||
Fund monies
shall be appropriated to the following Departments | ||
or agencies of State
government for administration, grants, or | ||
operations; but this
limitation is not a restriction upon | ||
appropriating for those purposes any
Road Fund monies that are | ||
eligible for federal reimbursement: Department
of Central | ||
Management Services, except for awards made by
the Illinois | ||
Workers' Compensation Commission under the terms of the | ||
Workers' Compensation Act
or Workers' Occupational Diseases | ||
Act for injury or death of an employee of
the Division of | ||
Highways in the Department of Transportation.
| ||
Beginning with fiscal year 1984 and thereafter, no Road | ||
Fund monies
shall be appropriated to the following Departments | ||
or agencies of State
government for administration, grants, or | ||
operations; but this
limitation is not a restriction upon | ||
appropriating for those purposes any
Road Fund monies that are | ||
eligible for federal reimbursement:
| ||
1. Department of State Police, except not more than 40% | ||
of the
funds appropriated for the Division of Operations;
| ||
2. State Officers.
|
Beginning with fiscal year 1984 and thereafter, no Road | ||
Fund monies
shall be appropriated to any Department or agency | ||
of State government
for administration, grants, or operations | ||
except as provided hereafter;
but this limitation is not a | ||
restriction upon appropriating for those
purposes any Road Fund | ||
monies that are eligible for federal
reimbursement. It shall | ||
not be lawful to circumvent the above
appropriation limitations | ||
by governmental reorganization or other
methods. | ||
Appropriations shall be made from the Road Fund only in
| ||
accordance with the provisions of this Section.
| ||
Money in the Road Fund shall, if and when the State of | ||
Illinois
incurs any bonded indebtedness for the construction of | ||
permanent
highways, be set aside and used for the purpose of | ||
paying and
discharging during each fiscal year the principal | ||
and interest on that
bonded indebtedness as it becomes due and | ||
payable as provided in the
Transportation Bond Act, and for no | ||
other
purpose. The surplus, if any, in the Road Fund after the | ||
payment of
principal and interest on that bonded indebtedness | ||
then annually due
shall be used as follows:
| ||
first -- to pay the cost of administration of Chapters | ||
2 through 10
of the Illinois Vehicle Code; and
| ||
secondly -- no Road Fund monies derived from fees, | ||
excises, or
license taxes relating to registration, | ||
operation and use of vehicles on
public highways or to | ||
fuels used for the propulsion of those vehicles,
shall be | ||
appropriated or expended other than for costs of |
administering
the laws imposing those fees, excises, and | ||
license taxes, statutory
refunds and adjustments allowed | ||
thereunder, administrative costs of the
Department of | ||
Transportation, including, but not limited to, the | ||
operating expenses of the Department relating to the | ||
administration of public transportation programs, payment | ||
of debts and liabilities incurred
in construction and | ||
reconstruction of public highways and bridges,
acquisition | ||
of rights-of-way for and the cost of construction,
| ||
reconstruction, maintenance, repair, and operation of | ||
public highways and
bridges under the direction and | ||
supervision of the State, political
subdivision, or | ||
municipality collecting those monies, and the costs for
| ||
patrolling and policing the public highways (by State, | ||
political
subdivision, or municipality collecting that | ||
money) for enforcement of
traffic laws. The separation of | ||
grades of such highways with railroads
and costs associated | ||
with protection of at-grade highway and railroad
crossing | ||
shall also be permissible.
| ||
Appropriations for any of such purposes are payable from | ||
the Road
Fund or the Grade Crossing Protection Fund as provided | ||
in Section 8 of
the Motor Fuel Tax Law.
| ||
Except as provided in this paragraph, beginning with fiscal | ||
year 1991 and
thereafter, no Road Fund monies
shall be | ||
appropriated to the Department of State Police for the purposes | ||
of
this Section in excess of its total fiscal year 1990 Road |
Fund
appropriations for those purposes unless otherwise | ||
provided in Section 5g of
this Act.
For fiscal years 2003,
| ||
2004, 2005, 2006, and 2007 only, no Road Fund monies shall
be | ||
appropriated to the
Department of State Police for the purposes | ||
of this Section in excess of
$97,310,000.
For fiscal year 2008 | ||
only, no Road
Fund monies shall be appropriated to the | ||
Department of State Police for the purposes of
this Section in | ||
excess of $106,100,000. It shall not be lawful to circumvent | ||
this limitation on
appropriations by governmental | ||
reorganization or other methods unless
otherwise provided in | ||
Section 5g of this Act.
| ||
In fiscal year 1994, no Road Fund monies shall be | ||
appropriated
to the
Secretary of State for the purposes of this | ||
Section in excess of the total
fiscal year 1991 Road Fund | ||
appropriations to the Secretary of State for
those purposes, | ||
plus $9,800,000. It
shall not be
lawful to circumvent
this | ||
limitation on appropriations by governmental reorganization or | ||
other
method.
| ||
Beginning with fiscal year 1995 and thereafter, no Road | ||
Fund
monies
shall be appropriated to the Secretary of State for | ||
the purposes of this
Section in excess of the total fiscal year | ||
1994 Road Fund
appropriations to
the Secretary of State for | ||
those purposes. It shall not be lawful to
circumvent this | ||
limitation on appropriations by governmental reorganization
or | ||
other methods.
| ||
Beginning with fiscal year 2000, total Road Fund |
appropriations to the
Secretary of State for the purposes of | |||||||||||||||||||||
this Section shall not exceed the
amounts specified for the | |||||||||||||||||||||
following fiscal years:
| |||||||||||||||||||||
| |||||||||||||||||||||
It shall not be lawful to circumvent this limitation on | |||||||||||||||||||||
appropriations by
governmental reorganization or other | |||||||||||||||||||||
methods.
| |||||||||||||||||||||
No new program may be initiated in fiscal year 1991 and
| |||||||||||||||||||||
thereafter that is not consistent with the limitations imposed | |||||||||||||||||||||
by this
Section for fiscal year 1984 and thereafter, insofar as | |||||||||||||||||||||
appropriation of
Road Fund monies is concerned.
| |||||||||||||||||||||
Nothing in this Section prohibits transfers from the Road | |||||||||||||||||||||
Fund to the
State Construction Account Fund under Section 5e of | |||||||||||||||||||||
this Act; nor to the
General Revenue Fund, as authorized by | |||||||||||||||||||||
this amendatory Act of
the 93rd
General Assembly.
| |||||||||||||||||||||
The additional amounts authorized for expenditure in this | |||||||||||||||||||||
Section by Public Acts 92-0600, 93-0025, 93-0839, and 94-91
|
shall be repaid to the Road Fund
from the General Revenue Fund | ||
in the next succeeding fiscal year that the
General Revenue | ||
Fund has a positive budgetary balance, as determined by
| ||
generally accepted accounting principles applicable to | ||
government.
| ||
The additional amounts authorized for expenditure by the | ||
Secretary of State
and
the Department of State Police in this | ||
Section by this amendatory Act of the
94th General Assembly | ||
shall be repaid to the Road Fund from the General Revenue Fund | ||
in the
next
succeeding fiscal year that the General Revenue | ||
Fund has a positive budgetary
balance,
as determined by | ||
generally accepted accounting principles applicable to
| ||
government.
| ||
(Source: P.A. 93-25, eff. 6-20-03; 93-721, eff. 1-1-05; 93-839, | ||
eff. 7-30-04; 94-91, eff. 7-1-05; 94-839, eff. 6-6-06.)
| ||
(30 ILCS 105/8.27) (from Ch. 127, par. 144.27)
| ||
Sec. 8.27. All receipts from federal financial | ||
participation in the
Foster Care and Adoption Services program | ||
under Title IV-E of the federal
Social Security Act, including | ||
receipts
for related indirect costs,
shall be deposited in the | ||
DCFS Children's Services Fund.
| ||
Eighty percent of the federal funds received by the | ||
Illinois Department
of Human Services under the Title IV-A | ||
Emergency Assistance program as
reimbursement for expenditures | ||
made from the Illinois Department of Children
and Family |
Services appropriations for the costs of services in behalf of
| ||
Department of Children and Family Services clients shall be | ||
deposited into
the DCFS Children's Services Fund.
| ||
All receipts from federal financial participation in the | ||
Child Welfare
Services program under Title IV-B of the federal | ||
Social Security Act,
including receipts for related indirect | ||
costs, shall be deposited into the
DCFS Children's Services | ||
Fund for those moneys received as reimbursement for
services | ||
provided on or after July 1, 1994.
| ||
In addition, as soon as may be practicable after the first | ||
day of November,
1994, the Department of Children and Family | ||
Services shall request the
Comptroller to order transferred and | ||
the Treasurer shall transfer the
unexpended balance of the | ||
Child Welfare Services Fund to the DCFS Children's
Services | ||
Fund. Upon completion of the transfer, the Child Welfare | ||
Services
Fund will be considered dissolved and any outstanding | ||
obligations or
liabilities of that fund will pass to the DCFS | ||
Children's Services Fund.
| ||
For services provided on or after July 1, 2007, all federal | ||
funds received pursuant to the John H. Chafee Foster Care | ||
Independence Program shall be deposited into the DCFS | ||
Children's Services Fund. | ||
Monies in the Fund may be used by the Department, pursuant | ||
to
appropriation by the General Assembly, for the ordinary and | ||
contingent
expenses of the Department.
| ||
In fiscal year 1988 and in each fiscal year thereafter |
through fiscal
year 2000, the Comptroller
shall order | ||
transferred and the Treasurer shall transfer an amount of
| ||
$16,100,000 from the DCFS Children's Services Fund to the | ||
General Revenue
Fund in the following manner: As soon as may be | ||
practicable after the 15th
day of September, December, March | ||
and June, the Comptroller shall order
transferred and the | ||
Treasurer shall transfer, to the extent that funds are
| ||
available, 1/4 of $16,100,000, plus any cumulative | ||
deficiencies in such
transfers for prior transfer dates during | ||
such fiscal year. In no event
shall any such transfer reduce | ||
the available balance in the DCFS Children's
Services Fund | ||
below $350,000.
| ||
In accordance with subsection (q) of Section 5 of the | ||
Children and Family
Services Act, disbursements from | ||
individual children's accounts shall be
deposited into the DCFS | ||
Children's Services Fund.
| ||
Receipts from public and unsolicited private grants, fees | ||
for training, and royalties earned from the publication of | ||
materials owned by or licensed to the Department of Children | ||
and Family Services shall be deposited into the DCFS Children's | ||
Services Fund. | ||
As soon as may be practical after September 1, 2005, upon | ||
the request of the Department of Children and Family Services, | ||
the Comptroller shall order transferred and the Treasurer shall | ||
transfer the unexpended balance of the Department of Children | ||
and Family Services Training Fund into the DCFS Children's |
Services Fund. Upon completion of the transfer, the Department | ||
of Children and Family Services Training Fund is dissolved and | ||
any outstanding obligations or liabilities of that Fund pass to | ||
the DCFS Children's Services Fund.
| ||
(Source: P.A. 94-91, eff. 7-1-05.)
| ||
(30 ILCS 105/8g)
| ||
Sec. 8g. Fund transfers.
| ||
(a) In addition to any other transfers that may be provided | ||
for by law, as
soon as may be practical after the effective | ||
date of this amendatory Act of
the 91st General Assembly, the | ||
State Comptroller shall direct and the State
Treasurer shall | ||
transfer the sum of $10,000,000 from the General Revenue Fund
| ||
to the Motor Vehicle License Plate Fund created by Senate Bill | ||
1028 of the 91st
General Assembly.
| ||
(b) In addition to any other transfers that may be provided | ||
for by law, as
soon as may be practical after the effective | ||
date of this amendatory Act of
the 91st General Assembly, the | ||
State Comptroller shall direct and the State
Treasurer shall | ||
transfer the sum of $25,000,000 from the General Revenue Fund
| ||
to the Fund for Illinois' Future created by Senate Bill 1066 of | ||
the 91st
General Assembly.
| ||
(c) In addition to any other transfers that may be provided | ||
for by law,
on August 30 of each fiscal year's license period, | ||
the Illinois Liquor Control
Commission shall direct and the | ||
State Comptroller and State Treasurer shall
transfer from the |
General Revenue Fund to the Youth Alcoholism and Substance
| ||
Abuse Prevention Fund an amount equal to the number of retail | ||
liquor licenses
issued for that fiscal year multiplied by $50.
| ||
(d) The payments to programs required under subsection (d) | ||
of Section 28.1
of the Horse Racing Act of 1975 shall be made, | ||
pursuant to appropriation, from
the special funds referred to | ||
in the statutes cited in that subsection, rather
than directly | ||
from the General Revenue Fund.
| ||
Beginning January 1, 2000, on the first day of each month, | ||
or as soon
as may be practical thereafter, the State | ||
Comptroller shall direct and the
State Treasurer shall transfer | ||
from the General Revenue Fund to each of the
special funds from | ||
which payments are to be made under Section 28.1(d) of the
| ||
Horse Racing Act of 1975 an amount equal to 1/12 of the annual | ||
amount required
for those payments from that special fund, | ||
which annual amount shall not exceed
the annual amount for | ||
those payments from that special fund for the calendar
year | ||
1998. The special funds to which transfers shall be made under | ||
this
subsection (d) include, but are not necessarily limited | ||
to, the Agricultural
Premium Fund; the Metropolitan Exposition | ||
Auditorium and Office Building Fund;
the Fair and Exposition | ||
Fund; the Standardbred Breeders Fund; the Thoroughbred
| ||
Breeders Fund; and the Illinois Veterans' Rehabilitation Fund.
| ||
(e) In addition to any other transfers that may be provided | ||
for by law,
as soon as may be practical after the effective | ||
date of this amendatory Act of
the 91st General Assembly, but |
in no event later than June 30, 2000, the State
Comptroller | ||
shall direct and the State Treasurer shall transfer the sum of
| ||
$15,000,000 from the General Revenue Fund to the Fund for | ||
Illinois' Future.
| ||
(f) In addition to any other transfers that may be provided | ||
for by law,
as soon as may be practical after the effective | ||
date of this amendatory Act of
the 91st General Assembly, but | ||
in no event later than June 30, 2000, the State
Comptroller | ||
shall direct and the State Treasurer shall transfer the sum of
| ||
$70,000,000 from the General Revenue Fund to the Long-Term Care | ||
Provider
Fund.
| ||
(f-1) In fiscal year 2002, in addition to any other | ||
transfers that may
be provided for by law, at the direction of | ||
and upon notification from the
Governor, the State Comptroller | ||
shall direct and the State Treasurer shall
transfer amounts not | ||
exceeding a total of $160,000,000 from the General
Revenue Fund | ||
to the Long-Term Care Provider Fund.
| ||
(g) In addition to any other transfers that may be provided | ||
for by law,
on July 1, 2001, or as soon thereafter as may be | ||
practical, the State
Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of
$1,200,000 from the General | ||
Revenue Fund to the Violence Prevention Fund.
| ||
(h) In each of fiscal years 2002 through 2004, but not
| ||
thereafter, in
addition to any other transfers that may be | ||
provided for by law, the State
Comptroller shall direct and the | ||
State Treasurer shall transfer $5,000,000
from the General |
Revenue Fund to the Tourism Promotion Fund.
| ||
(i) On or after July 1, 2001 and until May 1, 2002, in | ||
addition to any
other transfers that may be provided for by | ||
law, at the direction of and upon
notification from the | ||
Governor, the State Comptroller shall direct and the
State | ||
Treasurer shall transfer amounts not exceeding a total of | ||
$80,000,000
from the General Revenue Fund to the Tobacco | ||
Settlement Recovery Fund.
Any amounts so transferred shall be | ||
re-transferred by the State Comptroller
and the State Treasurer | ||
from the Tobacco Settlement Recovery Fund to the
General | ||
Revenue Fund at the direction of and upon notification from the
| ||
Governor, but in any event on or before June 30, 2002.
| ||
(i-1) On or after July 1, 2002 and until May 1, 2003, in | ||
addition to any
other transfers that may be provided for by | ||
law, at the direction of and upon
notification from the | ||
Governor, the State Comptroller shall direct and the
State | ||
Treasurer shall transfer amounts not exceeding a total of | ||
$80,000,000
from the General Revenue Fund to the Tobacco | ||
Settlement Recovery Fund.
Any amounts so transferred shall be | ||
re-transferred by the State Comptroller
and the State Treasurer | ||
from the Tobacco Settlement Recovery Fund to the
General | ||
Revenue Fund at the direction of and upon notification from the
| ||
Governor, but in any event on or before June 30, 2003.
| ||
(j) On or after July 1, 2001 and no later than June 30, | ||
2002, in addition to
any other transfers that may be provided | ||
for by law, at the direction of and
upon notification from the |
Governor, the State Comptroller shall direct and the
State | ||||||||||||||||||||||||||||||||||||||||||||
Treasurer shall transfer amounts not to exceed the following | ||||||||||||||||||||||||||||||||||||||||||||
sums into
the Statistical Services Revolving Fund:
| ||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||
(k) In addition to any other transfers that may be provided | ||||||||||||||||||||||||||||||||||||||||||||
for by law,
as soon as may be practical after the effective |
date of this amendatory Act of
the 92nd General Assembly, the | ||||||||||
State Comptroller shall direct and the State
Treasurer shall | ||||||||||
transfer the sum of $2,000,000 from the General Revenue Fund
to | ||||||||||
the Teachers Health Insurance Security Fund.
| ||||||||||
(k-1) In addition to any other transfers that may be | ||||||||||
provided for by
law, on July 1, 2002, or as soon as may be | ||||||||||
practical thereafter, the State
Comptroller shall direct and | ||||||||||
the State Treasurer shall transfer the sum of
$2,000,000 from | ||||||||||
the General Revenue Fund to the Teachers Health Insurance
| ||||||||||
Security Fund.
| ||||||||||
(k-2) In addition to any other transfers that may be | ||||||||||
provided for by
law, on July 1, 2003, or as soon as may be | ||||||||||
practical thereafter, the State
Comptroller shall direct and | ||||||||||
the State Treasurer shall transfer the sum of
$2,000,000 from | ||||||||||
the General Revenue Fund to the Teachers Health Insurance
| ||||||||||
Security Fund.
| ||||||||||
(k-3) On or after July 1, 2002 and no later than June 30, | ||||||||||
2003, in
addition to any other transfers that may be provided | ||||||||||
for by law, at the
direction of and upon notification from the | ||||||||||
Governor, the State Comptroller
shall direct and the State | ||||||||||
Treasurer shall transfer amounts not to exceed the
following | ||||||||||
sums into the Statistical Services Revolving Fund:
| ||||||||||
|
| ||||||||||||||||||||
(l) In addition to any other transfers that may be provided | ||||||||||||||||||||
for by law, on
July 1, 2002, or as soon as may be practical | ||||||||||||||||||||
thereafter, the State Comptroller
shall direct and the State | ||||||||||||||||||||
Treasurer shall transfer the sum of $3,000,000 from
the General | ||||||||||||||||||||
Revenue Fund to the Presidential Library and Museum Operating
| ||||||||||||||||||||
Fund.
| ||||||||||||||||||||
(m) In addition to any other transfers that may be provided | ||||||||||||||||||||
for by law, on
July 1, 2002 and on the effective date of this | ||||||||||||||||||||
amendatory Act of the 93rd
General Assembly, or as soon | ||||||||||||||||||||
thereafter as may be practical, the State Comptroller
shall | ||||||||||||||||||||
direct and the State Treasurer shall transfer the sum of | ||||||||||||||||||||
$1,200,000 from
the General Revenue Fund to the Violence | ||||||||||||||||||||
Prevention Fund.
| ||||||||||||||||||||
(n) In addition to any other transfers that may be provided | ||||||||||||||||||||
for by law,
on July 1,
2003, or as soon thereafter as may be | ||||||||||||||||||||
practical, the State Comptroller shall
direct and the
State | ||||||||||||||||||||
Treasurer shall transfer the sum of $6,800,000 from the General |
Revenue
Fund to
the DHS Recoveries Trust Fund.
| ||||
(o) On or after July 1, 2003, and no later than June 30, | ||||
2004, in
addition to any
other transfers that may be provided | ||||
for by law, at the direction of and upon
notification
from the | ||||
Governor, the State Comptroller shall direct and the State | ||||
Treasurer
shall
transfer amounts not to exceed the following | ||||
sums into the Vehicle Inspection
Fund:
| ||||
| ||||
(p) On or after July 1, 2003 and until May 1, 2004, in | ||||
addition to any
other
transfers that may be provided for by | ||||
law, at the direction of and upon
notification from
the | ||||
Governor, the State Comptroller shall direct and the State | ||||
Treasurer shall
transfer
amounts not exceeding a total of | ||||
$80,000,000 from the General Revenue Fund to
the
Tobacco | ||||
Settlement Recovery Fund. Any amounts so transferred shall be
| ||||
re-transferred
from the Tobacco Settlement Recovery Fund to the | ||||
General Revenue Fund at the
direction of and upon notification | ||||
from the Governor, but in any event on or
before June
30, 2004.
| ||||
(q) In addition to any other transfers that may be provided | ||||
for by law, on
July 1,
2003, or as soon as may be practical | ||||
thereafter, the State Comptroller shall
direct and the
State | ||||
Treasurer shall transfer the sum of $5,000,000 from the General | ||||
Revenue
Fund to
the Illinois Military Family Relief Fund.
| ||||
(r) In addition to any other transfers that may be provided | ||||
for by law, on
July 1,
2003, or as soon as may be practical | ||||
thereafter, the State Comptroller shall
direct and the
State |
Treasurer shall transfer the sum of $1,922,000 from the General | ||
Revenue
Fund to
the Presidential Library and Museum Operating | ||
Fund.
| ||
(s) In addition to any other transfers that may be provided | ||
for by law, on
or after
July 1, 2003, the State Comptroller | ||
shall direct and the State Treasurer shall
transfer the
sum of | ||
$4,800,000 from the Statewide Economic Development Fund to the | ||
General
Revenue Fund.
| ||
(t) In addition to any other transfers that may be provided | ||
for by law, on
or after
July 1, 2003, the State Comptroller | ||
shall direct and the State Treasurer shall
transfer the
sum of | ||
$50,000,000 from the General Revenue Fund to the Budget | ||
Stabilization
Fund.
| ||
(u) On or after July 1, 2004 and until May 1, 2005, in | ||
addition to any other transfers that may be provided for by | ||
law, at the direction of and upon notification from the | ||
Governor, the State Comptroller shall direct and the State | ||
Treasurer shall transfer amounts not exceeding a total of | ||
$80,000,000 from the General Revenue Fund to the Tobacco | ||
Settlement Recovery Fund. Any amounts so transferred shall be | ||
retransferred by the State Comptroller and the State Treasurer | ||
from the Tobacco Settlement Recovery Fund to the General | ||
Revenue Fund at the direction of and upon notification from the | ||
Governor, but in any event on or before June 30, 2005.
| ||
(v) In addition to any other transfers that may be provided | ||
for by law, on July 1, 2004, or as soon thereafter as may be |
practical, the State Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of $1,200,000 from the General | ||
Revenue Fund to the Violence Prevention Fund. | ||
(w) In addition to any other transfers that may be provided | ||
for by law, on July 1, 2004, or as soon thereafter as may be | ||
practical, the State Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of $6,445,000 from the General | ||
Revenue Fund to the Presidential Library and Museum Operating | ||
Fund.
| ||
(x) In addition to any other transfers that may be provided | ||
for by law, on January 15, 2005, or as soon thereafter as may | ||
be practical, the State Comptroller shall direct and the State | ||
Treasurer shall transfer to the General Revenue Fund the | ||
following sums: | ||
From the State Crime Laboratory Fund, $200,000; | ||
From the State Police Wireless Service Emergency Fund, | ||
$200,000; | ||
From the State Offender DNA Identification System | ||
Fund, $800,000; and | ||
From the State Police Whistleblower Reward and | ||
Protection Fund, $500,000.
| ||
(y) Notwithstanding any other provision of law to the | ||
contrary, in addition to any other transfers that may be | ||
provided for by law on June 30, 2005, or as soon as may be | ||
practical thereafter, the State Comptroller shall direct and | ||
the State Treasurer shall transfer the remaining balance from |
the designated funds into the General Revenue Fund and any | ||
future deposits that would otherwise be made into these funds | ||
must instead be made into the General Revenue Fund:
| ||
(1) the Keep Illinois Beautiful Fund;
| ||
(2) the
Metropolitan Fair and Exposition Authority | ||
Reconstruction Fund; | ||
(3) the
New Technology Recovery Fund; | ||
(4) the Illinois Rural Bond Bank Trust Fund; | ||
(5) the ISBE School Bus Driver Permit Fund; | ||
(6) the
Solid Waste Management Revolving Loan Fund; | ||
(7)
the State Postsecondary Review Program Fund; | ||
(8) the
Tourism Attraction Development Matching Grant | ||
Fund; | ||
(9) the
Patent and Copyright Fund; | ||
(10) the
Credit Enhancement Development Fund; | ||
(11) the
Community Mental Health and Developmental | ||
Disabilities Services Provider Participation Fee Trust | ||
Fund; | ||
(12) the
Nursing Home Grant Assistance Fund; | ||
(13) the
By-product Material Safety Fund; | ||
(14) the
Illinois Student Assistance Commission Higher | ||
EdNet Fund; | ||
(15) the
DORS State Project Fund; | ||
(16) the School Technology Revolving Fund; | ||
(17) the
Energy Assistance Contribution Fund; | ||
(18) the
Illinois Building Commission Revolving Fund; |
(19) the
Illinois Aquaculture Development Fund; | ||
(20) the
Homelessness Prevention Fund; | ||
(21) the
DCFS Refugee Assistance Fund; | ||
(22) the
Illinois Century Network Special Purposes | ||
Fund; and | ||
(23) the
Build Illinois Purposes Fund.
| ||
(z) In addition to any other transfers that may be provided | ||
for by law, on July 1, 2005, or as soon as may be practical | ||
thereafter, the State Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of $1,200,000 from the General | ||
Revenue Fund to the Violence Prevention Fund.
| ||
(aa) In addition to any other transfers that may be | ||
provided for by law, on July 1, 2005, or as soon as may be | ||
practical thereafter, the State Comptroller shall direct and | ||
the State Treasurer shall transfer the sum of $9,000,000 from | ||
the General Revenue Fund to the Presidential Library and Museum | ||
Operating Fund.
| ||
(bb) In addition to any other transfers that may be | ||
provided for by law, on July 1, 2005, or as soon as may be | ||
practical thereafter, the State Comptroller shall direct and | ||
the State Treasurer shall transfer the sum of $6,803,600 from | ||
the General Revenue Fund to the Securities Audit and | ||
Enforcement Fund.
| ||
(cc) In addition to any other transfers that may be | ||
provided for by law, on or after July 1, 2005 and until May 1, | ||
2006, at the direction of and upon notification from the |
Governor, the State Comptroller shall direct and the State | ||
Treasurer shall transfer amounts not exceeding a total of | ||
$80,000,000 from the General Revenue Fund to the Tobacco | ||
Settlement Recovery Fund. Any amounts so transferred shall be | ||
re-transferred by the State Comptroller and the State Treasurer | ||
from the Tobacco Settlement Recovery Fund to the General | ||
Revenue Fund at the direction of and upon notification from the | ||
Governor, but in any event on or before June 30, 2006.
| ||
(dd) In addition to any other transfers that may be | ||
provided for by law, on April 1, 2005, or as soon thereafter as | ||
may be practical, at the direction of the Director of Public | ||
Aid (now Director of Healthcare and Family Services), the State | ||
Comptroller shall direct and the State Treasurer shall transfer | ||
from the Public Aid Recoveries Trust Fund amounts not to exceed | ||
$14,000,000 to the Community Mental Health Medicaid Trust Fund. | ||
(ee) Notwithstanding any other provision of law, on July 1, | ||
2006, or as soon thereafter as practical, the State Comptroller | ||
shall direct and the State Treasurer shall transfer the | ||
remaining balance from the Illinois Civic Center Bond Fund to | ||
the Illinois Civic Center Bond Retirement and Interest Fund. | ||
(ff) In addition to any other transfers that may be | ||
provided for by law, on and after July 1, 2006 and until June | ||
30, 2007, at the direction of and upon notification from the | ||
Director of the Governor's Office of Management and Budget, the | ||
State Comptroller shall direct and the State Treasurer shall | ||
transfer amounts not exceeding a total of $1,900,000 from the |
General Revenue Fund to the Illinois Capital Revolving Loan | ||
Fund. | ||
(gg) In addition to any other transfers that may be | ||
provided for by law, on and after July 1, 2006 and until May 1, | ||
2007, at the direction of and upon notification from the | ||
Governor, the State Comptroller shall direct and the State | ||
Treasurer shall transfer amounts not exceeding a total of | ||
$80,000,000 from the General Revenue Fund to the Tobacco | ||
Settlement Recovery Fund. Any amounts so transferred shall be | ||
retransferred by the State Comptroller and the State Treasurer | ||
from the Tobacco Settlement Recovery Fund to the General | ||
Revenue Fund at the direction of and upon notification from the | ||
Governor, but in any event on or before June 30, 2007. | ||
(hh) In addition to any other transfers that may be | ||
provided for by law, on and after July 1, 2006 and until June | ||
30, 2007, at the direction of and upon notification from the | ||
Governor, the State Comptroller shall direct and the State | ||
Treasurer shall transfer amounts from the Illinois Affordable | ||
Housing Trust Fund to the designated funds not exceeding the | ||
following amounts: | ||
DCFS Children's Services Fund .................$2,200,000
| ||
Department of Corrections Reimbursement | ||
and Education Fund ........................$1,500,000
| ||
Supplemental Low-Income Energy | ||
Assistance Fund ..............................$75,000
| ||
(ii) In addition to any other transfers that may be |
provided for by law, on or before August 31, 2006, the Governor | ||
and the State Comptroller may agree to transfer the surplus | ||
cash balance from the General Revenue Fund to the Budget | ||
Stabilization Fund and the Pension Stabilization Fund in equal | ||
proportions. The determination of the amount of the surplus | ||
cash balance shall be made by the Governor, with the | ||
concurrence of the State Comptroller, after taking into account | ||
the June 30, 2006 balances in the general funds and the actual | ||
or estimated spending from the general funds during the lapse | ||
period. Notwithstanding the foregoing, the maximum amount that | ||
may be transferred under this subsection (ii) is $50,000,000. | ||
(jj) In addition to any other transfers that may be | ||
provided for by law, on July 1, 2006, or as soon thereafter as | ||
practical, the State Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of $8,250,000 from the General | ||
Revenue Fund to the Presidential Library and Museum Operating | ||
Fund. | ||
(kk) In addition to any other transfers that may be | ||
provided for by law, on July 1, 2006, or as soon thereafter as | ||
practical, the State Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of $1,400,000 from the General | ||
Revenue Fund to the Violence Prevention Fund.
| ||
(ll) In addition to any other transfers that may be | ||
provided for by law, on the first day of each calendar quarter | ||
of the fiscal year beginning July 1, 2006, or as soon | ||
thereafter as practical, the State Comptroller shall direct and |
the State Treasurer shall transfer from the General Revenue | ||
Fund amounts equal to one-fourth of $20,000,000 to the | ||
Renewable Energy Resources Trust Fund. | ||
(mm) In addition to any other transfers that may be | ||
provided for by law, on July 1, 2006, or as soon thereafter as | ||
practical, the State Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of $1,320,000 from the General | ||
Revenue Fund to the I-FLY Fund. | ||
(nn) In addition to any other transfers that may be | ||
provided for by law, on July 1, 2006, or as soon thereafter as | ||
practical, the State Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of $3,000,000 from the General | ||
Revenue Fund to the African-American HIV/AIDS Response Fund. | ||
(oo) In addition to any other transfers that may be | ||
provided for by law, on and after July 1, 2006 and until June | ||
30, 2007, at the direction of and upon notification from the | ||
Governor, the State Comptroller shall direct and the State | ||
Treasurer shall transfer amounts identified as net receipts | ||
from the sale of all or part of the Illinois Student Assistance | ||
Commission loan portfolio from the Student Loan Operating Fund | ||
to the General Revenue Fund. The maximum amount that may be | ||
transferred pursuant to this Section is $38,800,000. In | ||
addition, no transfer may be made pursuant to this Section that | ||
would have the effect of reducing the available balance in the | ||
Student Loan Operating Fund to an amount less than the amount | ||
remaining unexpended and unreserved from the total |
appropriations from the Fund estimated to be expended for the | ||
fiscal year. The State Treasurer and Comptroller shall transfer | ||
the amounts designated under this Section as soon as may be | ||
practical after receiving the direction to transfer from the | ||
Governor.
| ||
(pp)
(ee) In addition to any other transfers that may be | ||
provided for by law, on July 1, 2006, or as soon thereafter as | ||
practical, the State Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of $2,000,000 from the General | ||
Revenue Fund to the Illinois Veterans Assistance Fund. | ||
(qq) In addition to any other transfers that may be | ||
provided for by law, on and after July 1, 2007 and until May 1, | ||
2008, at the direction of and upon notification from the | ||
Governor, the State Comptroller shall direct and the State | ||
Treasurer shall transfer amounts not exceeding a total of | ||
$80,000,000 from the General Revenue Fund to the Tobacco | ||
Settlement Recovery Fund. Any amounts so transferred shall be | ||
retransferred by the State Comptroller and the State Treasurer | ||
from the Tobacco Settlement Recovery Fund to the General | ||
Revenue Fund at the direction of and upon notification from the | ||
Governor, but in any event on or before June 30, 2008. | ||
(rr) In addition to any other transfers that may be | ||
provided for by law, on and after July 1, 2007 and until June | ||
30, 2008, at the direction of and upon notification from the | ||
Governor, the State Comptroller shall direct and the State | ||
Treasurer shall transfer amounts from the Illinois Affordable |
Housing Trust Fund to the designated funds not exceeding the | ||
following amounts: | ||
DCFS Children's Services Fund .................$2,200,000
| ||
Department of Corrections Reimbursement | ||
and Education Fund ........................$1,500,000
| ||
Supplemental Low-Income Energy | ||
Assistance Fund ..............................$75,000
| ||
(ss) In addition to any other transfers that may be | ||
provided for by law, on July 1, 2007, or as soon thereafter as | ||
practical, the State Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of $8,250,000 from the General | ||
Revenue Fund to the Presidential Library and Museum Operating | ||
Fund. | ||
(tt) In addition to any other transfers that may be | ||
provided for by law, on July 1, 2007, or as soon thereafter as | ||
practical, the State Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of $1,400,000 from the General | ||
Revenue Fund to the Violence Prevention Fund.
| ||
(uu) In addition to any other transfers that may be | ||
provided for by law, on July 1, 2007, or as soon thereafter as | ||
practical, the State Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of $1,320,000 from the General | ||
Revenue Fund to the I-FLY Fund. | ||
(vv) In addition to any other transfers that may be | ||
provided for by law, on July 1, 2007, or as soon thereafter as | ||
practical, the State Comptroller shall direct and the State |
Treasurer shall transfer the sum of $3,000,000 from the General | ||
Revenue Fund to the African-American HIV/AIDS Response Fund. | ||
(ww) In addition to any other transfers that may be | ||
provided for by law, on July 1, 2007, or as soon thereafter as | ||
practical, the State Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of $3,500,000 from the General | ||
Revenue Fund to the Predatory Lending Database Program Fund. | ||
(xx) In addition to any other transfers that may be | ||
provided for by law, on July 1, 2007, or as soon thereafter as | ||
practical, the State Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of $5,000,000 from the General | ||
Revenue Fund to the Digital Divide Elimination Fund. | ||
(yy) In addition to any other transfers that may be | ||
provided for by law, on July 1, 2007, or as soon thereafter as | ||
practical, the State Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of $4,000,000 from the General | ||
Revenue Fund to the Digital Divide Elimination Infrastructure | ||
Fund. | ||
(Source: P.A. 93-32, eff. 6-20-03; 93-648, eff. 1-8-04; 93-839, | ||
eff. 7-30-04; 93-1067, eff. 1-15-05; 94-58, eff. 6-17-05; | ||
94-91, eff. 7-1-05; 94-816, eff. 5-30-06; 94-839, eff. 6-6-06; | ||
revised 8-3-06.)
| ||
(30 ILCS 105/13.2) (from Ch. 127, par. 149.2)
| ||
Sec. 13.2. Transfers among line item appropriations.
| ||
(a) Transfers among line item appropriations from the same
|
treasury fund for the objects specified in this Section may be | ||
made in
the manner provided in this Section when the balance | ||
remaining in one or
more such line item appropriations is | ||
insufficient for the purpose for
which the appropriation was | ||
made.
| ||
(a-1) No transfers may be made from one
agency to another | ||
agency, nor may transfers be made from one institution
of | ||
higher education to another institution of higher education.
| ||
(a-2) Except as otherwise provided in this Section, | ||
transfers may be made only among the objects of expenditure | ||
enumerated
in this Section, except that no funds may be | ||
transferred from any
appropriation for personal services, from | ||
any appropriation for State
contributions to the State | ||
Employees' Retirement System, from any
separate appropriation | ||
for employee retirement contributions paid by the
employer, nor | ||
from any appropriation for State contribution for
employee | ||
group insurance. During State fiscal year 2005, an agency may | ||
transfer amounts among its appropriations within the same | ||
treasury fund for personal services, employee retirement | ||
contributions paid by employer, and State Contributions to | ||
retirement systems; notwithstanding and in addition to the | ||
transfers authorized in subsection (c) of this Section, the | ||
fiscal year 2005 transfers authorized in this sentence may be | ||
made in an amount not to exceed 2% of the aggregate amount | ||
appropriated to an agency within the same treasury fund. During | ||
State fiscal year 2007, the Departments of Children and Family |
Services, Corrections, Human Services, and Juvenile Justice | ||
may transfer amounts among their respective appropriations | ||
within the same treasury fund for personal services, employee | ||
retirement contributions paid by employer, and State | ||
contributions to retirement systems. Notwithstanding, and in | ||
addition to, the transfers authorized in subsection (c) of this | ||
Section, these transfers may be made in an amount not to exceed | ||
2% of the aggregate amount appropriated to an agency within the | ||
same treasury fund.
| ||
(a-3) Further, if an agency receives a separate
| ||
appropriation for employee retirement contributions paid by | ||
the employer,
any transfer by that agency into an appropriation | ||
for personal services
must be accompanied by a corresponding | ||
transfer into the appropriation for
employee retirement | ||
contributions paid by the employer, in an amount
sufficient to | ||
meet the employer share of the employee contributions
required | ||
to be remitted to the retirement system.
| ||
(b) In addition to the general transfer authority provided | ||
under
subsection (c), the following agencies have the specific | ||
transfer authority
granted in this subsection:
| ||
The Department of Healthcare and Family Services is | ||
authorized to make transfers
representing savings attributable | ||
to not increasing grants due to the
births of additional | ||
children from line items for payments of cash grants to
line | ||
items for payments for employment and social services for the | ||
purposes
outlined in subsection (f) of Section 4-2 of the |
Illinois Public Aid Code.
| ||
The Department of Children and Family Services is | ||
authorized to make
transfers not exceeding 2% of the aggregate | ||
amount appropriated to it within
the same treasury fund for the | ||
following line items among these same line
items: Foster Home | ||
and Specialized Foster Care and Prevention, Institutions
and | ||
Group Homes and Prevention, and Purchase of Adoption and | ||
Guardianship
Services.
| ||
The Department on Aging is authorized to make transfers not
| ||
exceeding 2% of the aggregate amount appropriated to it within | ||
the same
treasury fund for the following Community Care Program | ||
line items among these
same line items: Homemaker and Senior | ||
Companion Services, Alternative Senior Services, Case | ||
Coordination
Units, and Adult Day Care Services.
| ||
The State Treasurer is authorized to make transfers among | ||
line item
appropriations
from the Capital Litigation Trust | ||
Fund, with respect to costs incurred in
fiscal years 2002 and | ||
2003 only, when the balance remaining in one or
more such
line | ||
item appropriations is insufficient for the purpose for which | ||
the
appropriation was
made, provided that no such transfer may | ||
be made unless the amount transferred
is no
longer required for | ||
the purpose for which that appropriation was made.
| ||
The State Board of Education is authorized to make | ||
transfers from line item appropriations within the same | ||
treasury fund for General State Aid and General State Aid - | ||
Hold Harmless, provided that no such transfer may be made |
unless the amount transferred is no longer required for the | ||
purpose for which that appropriation was made, to the line item | ||
appropriation for Transitional Assistance when the balance | ||
remaining in such line item appropriation is insufficient for | ||
the purpose for which the appropriation was made. | ||
The State Board of Education is authorized to make | ||
transfers between the following line item appropriations | ||
within the same treasury fund: Disabled Student | ||
Services/Materials (Section 14-13.01 of the School Code), | ||
Disabled Student Transportation Reimbursement (Section | ||
14-13.01 of the School Code), Disabled Student Tuition - | ||
Private Tuition (Section 14-7.02 of the School Code), | ||
Extraordinary Special Education (Section 14-7.02b of the | ||
School Code), Reimbursement for Free Lunch/Breakfast Program, | ||
Summer School Payments (Section 18-4.3 of the School Code), and | ||
Transportation - Regular/Vocational Reimbursement (Section | ||
29-5 of the School Code). Such transfers shall be made only | ||
when the balance remaining in one or more such line item | ||
appropriations is insufficient for the purpose for which the | ||
appropriation was made and provided that no such transfer may | ||
be made unless the amount transferred is no longer required for | ||
the purpose for which that appropriation was made. | ||
(c) The sum of such transfers for an agency in a fiscal | ||
year shall not
exceed 2% of the aggregate amount appropriated | ||
to it within the same treasury
fund for the following objects: | ||
Personal Services; Extra Help; Student and
Inmate |
Compensation; State Contributions to Retirement Systems; State
| ||
Contributions to Social Security; State Contribution for | ||
Employee Group
Insurance; Contractual Services; Travel; | ||
Commodities; Printing; Equipment;
Electronic Data Processing; | ||
Operation of Automotive Equipment;
Telecommunications | ||
Services; Travel and Allowance for Committed, Paroled
and | ||
Discharged Prisoners; Library Books; Federal Matching Grants | ||
for
Student Loans; Refunds; Workers' Compensation, | ||
Occupational Disease, and
Tort Claims; and, in appropriations | ||
to institutions of higher education,
Awards and Grants. | ||
Notwithstanding the above, any amounts appropriated for
| ||
payment of workers' compensation claims to an agency to which | ||
the authority
to evaluate, administer and pay such claims has | ||
been delegated by the
Department of Central Management Services | ||
may be transferred to any other
expenditure object where such | ||
amounts exceed the amount necessary for the
payment of such | ||
claims.
| ||
(c-1) Special provisions for State fiscal year 2003. | ||
Notwithstanding any
other provision of this Section to the | ||
contrary, for State fiscal year 2003
only, transfers among line | ||
item appropriations to an agency from the same
treasury fund | ||
may be made provided that the sum of such transfers for an | ||
agency
in State fiscal year 2003 shall not exceed 3% of the | ||
aggregate amount
appropriated to that State agency for State | ||
fiscal year 2003 for the following
objects: personal services, | ||
except that no transfer may be approved which
reduces the |
aggregate appropriations for personal services within an | ||
agency;
extra help; student and inmate compensation; State
| ||
contributions to retirement systems; State contributions to | ||
social security;
State contributions for employee group | ||
insurance; contractual services; travel;
commodities; | ||
printing; equipment; electronic data processing; operation of
| ||
automotive equipment; telecommunications services; travel and | ||
allowance for
committed, paroled, and discharged prisoners; | ||
library books; federal matching
grants for student loans; | ||
refunds; workers' compensation, occupational disease,
and tort | ||
claims; and, in appropriations to institutions of higher | ||
education,
awards and grants.
| ||
(c-2) Special provisions for State fiscal year 2005. | ||
Notwithstanding subsections (a), (a-2), and (c), for State | ||
fiscal year 2005 only, transfers may be made among any line | ||
item appropriations from the same or any other treasury fund | ||
for any objects or purposes, without limitation, when the | ||
balance remaining in one or more such line item appropriations | ||
is insufficient for the purpose for which the appropriation was | ||
made, provided that the sum of those transfers by a State | ||
agency shall not exceed 4% of the aggregate amount appropriated | ||
to that State agency for fiscal year 2005.
| ||
(d) Transfers among appropriations made to agencies of the | ||
Legislative
and Judicial departments and to the | ||
constitutionally elected officers in the
Executive branch | ||
require the approval of the officer authorized in Section 10
of |
this Act to approve and certify vouchers. Transfers among | ||
appropriations
made to the University of Illinois, Southern | ||
Illinois University, Chicago State
University, Eastern | ||
Illinois University, Governors State University, Illinois
| ||
State University, Northeastern Illinois University, Northern | ||
Illinois
University, Western Illinois University, the Illinois | ||
Mathematics and Science
Academy and the Board of Higher | ||
Education require the approval of the Board of
Higher Education | ||
and the Governor. Transfers among appropriations to all other
| ||
agencies require the approval of the Governor.
| ||
The officer responsible for approval shall certify that the
| ||
transfer is necessary to carry out the programs and purposes | ||
for which
the appropriations were made by the General Assembly | ||
and shall transmit
to the State Comptroller a certified copy of | ||
the approval which shall
set forth the specific amounts | ||
transferred so that the Comptroller may
change his records | ||
accordingly. The Comptroller shall furnish the
Governor with | ||
information copies of all transfers approved for agencies
of | ||
the Legislative and Judicial departments and transfers | ||
approved by
the constitutionally elected officials of the | ||
Executive branch other
than the Governor, showing the amounts | ||
transferred and indicating the
dates such changes were entered | ||
on the Comptroller's records.
| ||
(e) The State Board of Education, in consultation with the | ||
State Comptroller, may transfer line item appropriations for | ||
General State Aid from the Common School Fund to the Education |
Assistance Fund. | ||
(Source: P.A. 93-680, eff. 7-1-04; 93-839, eff. 7-30-04; | ||
94-839, eff. 6-6-06.)
| ||
(30 ILCS 105/14.1)
(from Ch. 127, par. 150.1)
| ||
Sec. 14.1. Appropriations for State contributions to the | ||
State
Employees' Retirement System; payroll requirements.
| ||
(a) Appropriations for State contributions to the State
| ||
Employees' Retirement System of Illinois shall be expended in | ||
the manner
provided in this Section.
Except as otherwise | ||
provided in subsection (a-1),
at the time of each payment of | ||
salary to an
employee under the personal services line item, | ||
payment shall be made to
the State Employees' Retirement | ||
System, from the amount appropriated for
State contributions to | ||
the State Employees' Retirement System, of an amount
calculated | ||
at the rate certified for the applicable fiscal year by the
| ||
Board of Trustees of the State Employees' Retirement System | ||
under Section
14-135.08 of the Illinois Pension Code. If a line | ||
item appropriation to an
employer for this purpose is exhausted | ||
or is unavailable due to any limitation on appropriations that | ||
may apply, (including, but not limited to, limitations on | ||
appropriations from the Road Fund under Section 8.3 of the | ||
State Finance Act), the amounts shall be
paid under the | ||
continuing appropriation for this purpose contained in the | ||
State
Pension Funds Continuing Appropriation Act.
| ||
(a-1) Beginning on the effective date of this amendatory |
Act of the 93rd
General Assembly through the payment of the | ||
final payroll from fiscal
year 2004 appropriations, | ||
appropriations for State contributions to the
State Employees' | ||
Retirement System of Illinois shall be expended in the
manner | ||
provided in this subsection (a-1). At the time of each payment | ||
of
salary to an employee under the personal services line item | ||
from a fund
other than the General Revenue Fund, payment shall | ||
be made for deposit
into the General Revenue Fund from the | ||
amount appropriated for State
contributions to the State | ||
Employees' Retirement System of an amount
calculated at the | ||
rate certified for fiscal year 2004 by the Board of
Trustees of | ||
the State Employees' Retirement System under Section
14-135.08 | ||
of the Illinois Pension Code. This payment shall be made to
the | ||
extent that a line item appropriation to an employer for this | ||
purpose is
available or unexhausted. No payment from | ||
appropriations for State
contributions shall be made in | ||
conjunction with payment of salary to an
employee under the | ||
personal services line item from the General Revenue
Fund.
| ||
(b) Except during the period beginning on the effective | ||
date of this
amendatory
Act of the 93rd General Assembly and | ||
ending at the time of the payment of the
final payroll from | ||
fiscal year 2004 appropriations, the State Comptroller
shall | ||
not approve for payment any payroll
voucher that (1) includes | ||
payments of salary to eligible employees in the
State | ||
Employees' Retirement System of Illinois and (2) does not | ||
include the
corresponding payment of State contributions to |
that retirement system at the
full rate certified under Section | ||
14-135.08 for that fiscal year for eligible
employees, unless | ||
the balance in the fund on which the payroll voucher is drawn
| ||
is insufficient to pay the total payroll voucher, or | ||
unavailable due to any limitation on appropriations that may | ||
apply, including, but not limited to, limitations on | ||
appropriations from the Road Fund under Section 8.3 of the | ||
State Finance Act. If the State Comptroller
approves a payroll | ||
voucher under this Section for which the fund balance is
| ||
insufficient to pay the full amount of the required State | ||
contribution to the
State Employees' Retirement System, the | ||
Comptroller shall promptly so notify
the Retirement System.
| ||
(c) Notwithstanding any other provisions of law, beginning | ||
July 1, 2007, required State and employee contributions to the | ||
State Employees' Retirement System of Illinois relating to | ||
affected legislative staff employees shall be paid out of | ||
moneys appropriated for that purpose to the Commission on | ||
Government Forecasting and Accountability, rather than out of | ||
the lump-sum appropriations otherwise made for the payroll and | ||
other costs of those employees. | ||
These payments must be made pursuant to payroll vouchers | ||
submitted by the employing entity as part of the regular | ||
payroll voucher process. | ||
For the purpose of this subsection, "affected legislative | ||
staff employees" means legislative staff employees paid out of | ||
lump-sum appropriations made to the General Assembly, an |
Officer of the General Assembly, or the Senate Operations | ||
Commission, but does not include district-office staff or | ||
employees of legislative support services agencies. | ||
(Source: P.A. 93-665, eff. 3-5-04; 93-1067, eff. 1-15-05.)
| ||
(30 ILCS 105/25.5 new) | ||
Sec. 25.5. FY2008 payment validation. All expenses | ||
lawfully incurred during July of 2007 under an appropriation or | ||
reappropriation included in Public Act 95-11 shall be paid by | ||
the State Comptroller and State Treasurer at the time and in | ||
the manner normally provided by law, notwithstanding that the | ||
appropriation under that Public Act may have expired prior to | ||
the actual date of payment due to the repeal of that Public | ||
Act. Any otherwise lawful action of the State Comptroller, the | ||
State Treasurer, or any public employee in the course of making | ||
payment in accordance with this Section is hereby validated. | ||
Section 5-13. The Budget Stabilization Act is amended by | ||
changing Section 10 as follows: | ||
(30 ILCS 122/10)
| ||
Sec. 10. Budget limitations.
| ||
(a) Except as provided in subsection (b-5), in In addition | ||
to Section 50-5 of the State Budget Law
of the Civil | ||
Administrative Code of Illinois, the General
Assembly's | ||
appropriations and transfers or diversions as required by
law |
from general funds shall not exceed
99%
of the estimated | ||
general funds revenues for the fiscal
year when revenue | ||
estimates of the State's general funds
revenues exceed the | ||
prior fiscal year's estimated general
funds revenues by more | ||
than 4%.
| ||
(b) Except as provided in subsection (b-5), the The General | ||
Assembly's appropriations and transfers or
diversions as | ||
required by law from general
funds shall not exceed 98% of the | ||
estimated general funds
revenues for the fiscal year when | ||
revenue estimates of the
State's general funds revenues exceed | ||
the prior fiscal year's
estimated general funds revenues by | ||
more than 4% for 2 or
more consecutive fiscal years.
| ||
(b-5) The limitations on appropriations and transfers or | ||
diversions set forth under subsections (a) and (b) do not apply | ||
for State fiscal year 2008. | ||
(c) For the purpose of this Act, "estimated general funds | ||
revenues"
include, for each budget year, all taxes, fees, and | ||
other revenues
expected to be deposited into the State's | ||
general funds, including
recurring transfers from other State | ||
funds into the general funds.
| ||
Year-over-year comparisons used to determine the | ||
percentage growth
factor of estimated general funds revenues | ||
shall exclude the sum of the
following: (i) expected revenues | ||
resulting from new taxes or fees or
from tax or fee increases | ||
during the first year of the change, (ii)
expected revenues | ||
resulting from one-time receipts or non-recurring
transfers |
in, (iii) expected proceeds resulting from borrowing, and
(iv) | ||
increases in federal grants that must be completely | ||
appropriated
based on the terms of the grants.
| ||
(Source: P.A. 93-660, eff. 7-1-04; 94-839, eff. 6-6-06.) | ||
Section 5-15. The Illinois Income Tax Act is amended by | ||
changing Sections 203, 304, 704A, 709.5, 901, 1001, 1007, | ||
1405.5, 1405.6 and 1501 as follows:
| ||
(35 ILCS 5/203) (from Ch. 120, par. 2-203)
| ||
Sec. 203. Base income defined.
| ||
(a) Individuals.
| ||
(1) In general. In the case of an individual, base | ||
income means an
amount equal to the taxpayer's adjusted | ||
gross income for the taxable
year as modified by paragraph | ||
(2).
| ||
(2) Modifications. The adjusted gross income referred | ||
to in
paragraph (1) shall be modified by adding thereto the | ||
sum of the
following amounts:
| ||
(A) An amount equal to all amounts paid or accrued | ||
to the taxpayer
as interest or dividends during the | ||
taxable year to the extent excluded
from gross income | ||
in the computation of adjusted gross income, except | ||
stock
dividends of qualified public utilities | ||
described in Section 305(e) of the
Internal Revenue | ||
Code;
|
(B) An amount equal to the amount of tax imposed by | ||
this Act to the
extent deducted from gross income in | ||
the computation of adjusted gross
income for the | ||
taxable year;
| ||
(C) An amount equal to the amount received during | ||
the taxable year
as a recovery or refund of real | ||
property taxes paid with respect to the
taxpayer's | ||
principal residence under the Revenue Act of
1939 and | ||
for which a deduction was previously taken under | ||
subparagraph (L) of
this paragraph (2) prior to July 1, | ||
1991, the retrospective application date of
Article 4 | ||
of Public Act 87-17. In the case of multi-unit or | ||
multi-use
structures and farm dwellings, the taxes on | ||
the taxpayer's principal residence
shall be that | ||
portion of the total taxes for the entire property | ||
which is
attributable to such principal residence;
| ||
(D) An amount equal to the amount of the capital | ||
gain deduction
allowable under the Internal Revenue | ||
Code, to the extent deducted from gross
income in the | ||
computation of adjusted gross income;
| ||
(D-5) An amount, to the extent not included in | ||
adjusted gross income,
equal to the amount of money | ||
withdrawn by the taxpayer in the taxable year from
a | ||
medical care savings account and the interest earned on | ||
the account in the
taxable year of a withdrawal | ||
pursuant to subsection (b) of Section 20 of the
Medical |
Care Savings Account Act or subsection (b) of Section | ||
20 of the
Medical Care Savings Account Act of 2000;
| ||
(D-10) For taxable years ending after December 31, | ||
1997, an
amount equal to any eligible remediation costs | ||
that the individual
deducted in computing adjusted | ||
gross income and for which the
individual claims a | ||
credit under subsection (l) of Section 201;
| ||
(D-15) For taxable years 2001 and thereafter, an | ||
amount equal to the
bonus depreciation deduction taken | ||
on the taxpayer's federal income tax return for the | ||
taxable
year under subsection (k) of Section 168 of the | ||
Internal Revenue Code;
| ||
(D-16) If the taxpayer sells, transfers, abandons, | ||
or otherwise disposes of property for which the | ||
taxpayer was required in any taxable year to
make an | ||
addition modification under subparagraph (D-15), then | ||
an amount equal
to the aggregate amount of the | ||
deductions taken in all taxable
years under | ||
subparagraph (Z) with respect to that property.
| ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the | ||
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was allowed in any taxable year to make a subtraction | ||
modification under subparagraph (Z), then an amount | ||
equal to that subtraction modification.
|
The taxpayer is required to make the addition | ||
modification under this
subparagraph
only once with | ||
respect to any one piece of property;
| ||
(D-17) An amount equal to the amount otherwise | ||
allowed as a deduction in computing base income for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, (i) for taxable years ending on or after | ||
December 31, 2004, to a foreign person who would be a | ||
member of the same unitary business group but for the | ||
fact that foreign person's business activity outside | ||
the United States is 80% or more of the foreign | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304. The addition modification | ||
required by this subparagraph shall be reduced to the | ||
extent that dividends were included in base income of | ||
the unitary group for the same taxable year and | ||
received by the taxpayer or by a member of the | ||
taxpayer's unitary business group (including amounts | ||
included in gross income under Sections 951 through 964 | ||
of the Internal Revenue Code and amounts included in |
gross income under Section 78 of the Internal Revenue | ||
Code) with respect to the stock of the same person to | ||
whom the interest was paid, accrued, or incurred. | ||
This paragraph shall not apply to the following:
| ||
(i) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a foreign | ||
person who is subject in a foreign country or | ||
state, other than a state which requires mandatory | ||
unitary reporting, to a tax on or measured by net | ||
income with respect to such interest; or | ||
(ii) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a foreign | ||
person if the taxpayer can establish, based on a | ||
preponderance of the evidence, both of the | ||
following: | ||
(a) the foreign person, during the same | ||
taxable year, paid, accrued, or incurred, the | ||
interest to a person that is not a related | ||
member, and | ||
(b) the transaction giving rise to the | ||
interest expense between the taxpayer and the | ||
foreign person did not have as a principal | ||
purpose the avoidance of Illinois income tax, | ||
and is paid pursuant to a contract or agreement | ||
that reflects an arm's-length interest rate | ||
and terms; or
|
(iii) the taxpayer can establish, based on | ||
clear and convincing evidence, that the interest | ||
paid, accrued, or incurred relates to a contract or | ||
agreement entered into at arm's-length rates and | ||
terms and the principal purpose for the payment is | ||
not federal or Illinois tax avoidance; or
| ||
(iv) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a foreign | ||
person if the taxpayer establishes by clear and | ||
convincing evidence that the adjustments are | ||
unreasonable; or if the taxpayer and the Director | ||
agree in writing to the application or use of an | ||
alternative method of apportionment under Section | ||
304(f).
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for | ||
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department | ||
and such regulations provide methods and standards | ||
by which the Department will utilize its authority | ||
under Section 404 of this Act;
| ||
(D-18) An amount equal to the amount of intangible | ||
expenses and costs otherwise allowed as a deduction in | ||
computing base income, and that were paid, accrued, or |
incurred, directly or indirectly, (i) for taxable | ||
years ending on or after December 31, 2004, to a | ||
foreign person who would be a member of the same | ||
unitary business group but for the fact that the | ||
foreign person's business activity outside the United | ||
States is 80% or more of that person's total business | ||
activity and (ii) for taxable years ending on or after | ||
December 31, 2008, to a person who would be a member of | ||
the same unitary business group but for the fact that | ||
the person is prohibited under Section 1501(a)(27) | ||
from being included in the unitary business group | ||
because he or she is ordinarily required to apportion | ||
business income under different subsections of Section | ||
304. The addition modification required by this | ||
subparagraph shall be reduced to the extent that | ||
dividends were included in base income of the unitary | ||
group for the same taxable year and received by the | ||
taxpayer or by a member of the taxpayer's unitary | ||
business group (including amounts included in gross | ||
income under Sections 951 through 964 of the Internal | ||
Revenue Code and amounts included in gross income under | ||
Section 78 of the Internal Revenue Code) with respect | ||
to the stock of the same person to whom the intangible | ||
expenses and costs were directly or indirectly paid, | ||
incurred, or accrued. The preceding sentence does not | ||
apply to the extent that the same dividends caused a |
reduction to the addition modification required under | ||
Section 203(a)(2)(D-17) of this Act. As used in this | ||
subparagraph, the term "intangible expenses and costs" | ||
includes (1) expenses, losses, and costs for, or | ||
related to, the direct or indirect acquisition, use, | ||
maintenance or management, ownership, sale, exchange, | ||
or any other disposition of intangible property; (2) | ||
losses incurred, directly or indirectly, from | ||
factoring transactions or discounting transactions; | ||
(3) royalty, patent, technical, and copyright fees; | ||
(4) licensing fees; and (5) other similar expenses and | ||
costs.
For purposes of this subparagraph, "intangible | ||
property" includes patents, patent applications, trade | ||
names, trademarks, service marks, copyrights, mask | ||
works, trade secrets, and similar types of intangible | ||
assets. | ||
This paragraph shall not apply to the following: | ||
(i) any item of intangible expenses or costs | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a foreign | ||
person who is subject in a foreign country or | ||
state, other than a state which requires mandatory | ||
unitary reporting, to a tax on or measured by net | ||
income with respect to such item; or | ||
(ii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or |
indirectly, if the taxpayer can establish, based | ||
on a preponderance of the evidence, both of the | ||
following: | ||
(a) the foreign person during the same | ||
taxable year paid, accrued, or incurred, the | ||
intangible expense or cost to a person that is | ||
not a related member, and | ||
(b) the transaction giving rise to the | ||
intangible expense or cost between the | ||
taxpayer and the foreign person did not have as | ||
a principal purpose the avoidance of Illinois | ||
income tax, and is paid pursuant to a contract | ||
or agreement that reflects arm's-length terms; | ||
or | ||
(iii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a foreign | ||
person if the taxpayer establishes by clear and | ||
convincing evidence, that the adjustments are | ||
unreasonable; or if the taxpayer and the Director | ||
agree in writing to the application or use of an | ||
alternative method of apportionment under Section | ||
304(f);
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for |
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department | ||
and such regulations provide methods and standards | ||
by which the Department will utilize its authority | ||
under Section 404 of this Act;
| ||
(D-19) For taxable years ending on or after | ||
December 31, 2008, an amount equal to the amount of | ||
insurance premium expenses and costs otherwise allowed | ||
as a deduction in computing base income, and that were | ||
paid, accrued, or incurred, directly or indirectly, to | ||
a person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304. The | ||
addition modification required by this subparagraph | ||
shall be reduced to the extent that dividends were | ||
included in base income of the unitary group for the | ||
same taxable year and received by the taxpayer or by a | ||
member of the taxpayer's unitary business group | ||
(including amounts included in gross income under | ||
Sections 951 through 964 of the Internal Revenue Code | ||
and amounts included in gross income under Section 78 | ||
of the Internal Revenue Code) with respect to the stock |
of the same person to whom the premiums intangible | ||
expenses and costs were directly or indirectly paid, | ||
incurred, or accrued. The preceding sentence does not | ||
apply to the extent that the same dividends caused a | ||
reduction to the addition modification required under | ||
Section 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of | ||
this Act.
| ||
(D-20) For taxable years beginning on or after | ||
January 1,
2002 and ending on or before December 31, | ||
2006, in
the
case of a distribution from a qualified | ||
tuition program under Section 529 of
the Internal | ||
Revenue Code, other than (i) a distribution from a | ||
College Savings
Pool created under Section 16.5 of the | ||
State Treasurer Act or (ii) a
distribution from the | ||
Illinois Prepaid Tuition Trust Fund, an amount equal to
| ||
the amount excluded from gross income under Section | ||
529(c)(3)(B). For taxable years beginning on or after | ||
January 1, 2007, in the case of a distribution from a | ||
qualified tuition program under Section 529 of the | ||
Internal Revenue Code, other than (i) a distribution | ||
from a College Savings Pool created under Section 16.5 | ||
of the State Treasurer Act, (ii) a distribution from | ||
the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||
distribution from a qualified tuition program under | ||
Section 529 of the Internal Revenue Code that (I) | ||
adopts and determines that its offering materials |
comply with the College Savings Plans Network's | ||
disclosure principles and (II) has made reasonable | ||
efforts to inform in-state residents of the existence | ||
of in-state qualified tuition programs by informing | ||
Illinois residents directly and, where applicable, to | ||
inform financial intermediaries distributing the | ||
program to inform in-state residents of the existence | ||
of in-state qualified tuition programs at least | ||
annually, an amount equal to the amount excluded from | ||
gross income under Section 529(c)(3)(B). | ||
For the purposes of this subparagraph (D-20), a | ||
qualified tuition program has made reasonable efforts | ||
if it makes disclosures (which may use the term | ||
"in-state program" or "in-state plan" and need not | ||
specifically refer to Illinois or its qualified | ||
programs by name) (i) directly to prospective | ||
participants in its offering materials or makes a | ||
public disclosure, such as a website posting; and (ii) | ||
where applicable, to intermediaries selling the | ||
out-of-state program in the same manner that the | ||
out-of-state program distributes its offering | ||
materials;
| ||
(D-21) For taxable years beginning on or after | ||
January 1, 2007, in the case of transfer of moneys from | ||
a qualified tuition program under Section 529 of the | ||
Internal Revenue Code that is administered by the State |
to an out-of-state program, an amount equal to the | ||
amount of moneys previously deducted from base income | ||
under subsection (a)(2)(Y) of this Section.
| ||
and by deducting from the total so obtained the
sum of the | ||
following amounts:
| ||
(E) For taxable years ending before December 31, | ||
2001,
any amount included in such total in respect of | ||
any compensation
(including but not limited to any | ||
compensation paid or accrued to a
serviceman while a | ||
prisoner of war or missing in action) paid to a | ||
resident
by reason of being on active duty in the Armed | ||
Forces of the United States
and in respect of any | ||
compensation paid or accrued to a resident who as a
| ||
governmental employee was a prisoner of war or missing | ||
in action, and in
respect of any compensation paid to a | ||
resident in 1971 or thereafter for
annual training | ||
performed pursuant to Sections 502 and 503, Title 32,
| ||
United States Code as a member of the Illinois National | ||
Guard or, beginning with taxable years ending on or | ||
after December 31, 2007, the National Guard of any | ||
other state.
For taxable years ending on or after | ||
December 31, 2001, any amount included in
such total in | ||
respect of any compensation (including but not limited | ||
to any
compensation paid or accrued to a serviceman | ||
while a prisoner of war or missing
in action) paid to a | ||
resident by reason of being a member of any component |
of
the Armed Forces of the United States and in respect | ||
of any compensation paid
or accrued to a resident who | ||
as a governmental employee was a prisoner of war
or | ||
missing in action, and in respect of any compensation | ||
paid to a resident in
2001 or thereafter by reason of | ||
being a member of the Illinois National Guard or, | ||
beginning with taxable years ending on or after | ||
December 31, 2007, the National Guard of any other | ||
state.
The provisions of this amendatory Act of the | ||
92nd General Assembly are exempt
from the provisions of | ||
Section 250;
| ||
(F) An amount equal to all amounts included in such | ||
total pursuant
to the provisions of Sections 402(a), | ||
402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | ||
Internal Revenue Code, or included in such total as
| ||
distributions under the provisions of any retirement | ||
or disability plan for
employees of any governmental | ||
agency or unit, or retirement payments to
retired | ||
partners, which payments are excluded in computing net | ||
earnings
from self employment by Section 1402 of the | ||
Internal Revenue Code and
regulations adopted pursuant | ||
thereto;
| ||
(G) The valuation limitation amount;
| ||
(H) An amount equal to the amount of any tax | ||
imposed by this Act
which was refunded to the taxpayer | ||
and included in such total for the
taxable year;
|
(I) An amount equal to all amounts included in such | ||
total pursuant
to the provisions of Section 111 of the | ||
Internal Revenue Code as a
recovery of items previously | ||
deducted from adjusted gross income in the
computation | ||
of taxable income;
| ||
(J) An amount equal to those dividends included in | ||
such total which were
paid by a corporation which | ||
conducts business operations in an Enterprise
Zone or | ||
zones created under the Illinois Enterprise Zone Act or | ||
a River Edge Redevelopment Zone or zones created under | ||
the River Edge Redevelopment Zone Act, and conducts
| ||
substantially all of its operations in an Enterprise | ||
Zone or zones or a River Edge Redevelopment Zone or | ||
zones. This subparagraph (J) is exempt from the | ||
provisions of Section 250;
| ||
(K) An amount equal to those dividends included in | ||
such total that
were paid by a corporation that | ||
conducts business operations in a federally
designated | ||
Foreign Trade Zone or Sub-Zone and that is designated a | ||
High Impact
Business located in Illinois; provided | ||
that dividends eligible for the
deduction provided in | ||
subparagraph (J) of paragraph (2) of this subsection
| ||
shall not be eligible for the deduction provided under | ||
this subparagraph
(K);
| ||
(L) For taxable years ending after December 31, | ||
1983, an amount equal to
all social security benefits |
and railroad retirement benefits included in
such | ||
total pursuant to Sections 72(r) and 86 of the Internal | ||
Revenue Code;
| ||
(M) With the exception of any amounts subtracted | ||
under subparagraph
(N), an amount equal to the sum of | ||
all amounts disallowed as
deductions by (i) Sections | ||
171(a) (2), and 265(2) of the Internal Revenue Code
of | ||
1954, as now or hereafter amended, and all amounts of | ||
expenses allocable
to interest and disallowed as | ||
deductions by Section 265(1) of the Internal
Revenue | ||
Code of 1954, as now or hereafter amended;
and (ii) for | ||
taxable years
ending on or after August 13, 1999, | ||
Sections 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | ||
the Internal Revenue Code; the provisions of this
| ||
subparagraph are exempt from the provisions of Section | ||
250;
| ||
(N) An amount equal to all amounts included in such | ||
total which are
exempt from taxation by this State | ||
either by reason of its statutes or
Constitution
or by | ||
reason of the Constitution, treaties or statutes of the | ||
United States;
provided that, in the case of any | ||
statute of this State or, for taxable years ending on | ||
or after December 31, 2008, of the United States, any | ||
treaty of the United States, the Illinois | ||
Constitution, or the United States Constitution that | ||
exempts income
derived from bonds or other obligations |
from the tax imposed under this Act,
the amount | ||
exempted shall be the interest income net of bond | ||
premium amortization , and, for taxable years ending on | ||
or after December 31, 2008, interest expense incurred | ||
on indebtedness to carry the bond or other obligation, | ||
expenses incurred in producing the income to be | ||
deducted, and all other related expenses. The amount of | ||
expenses to be taken into account under this provision | ||
may not exceed the amount of income that is exempted ;
| ||
(O) An amount equal to any contribution made to a | ||
job training
project established pursuant to the Tax | ||
Increment Allocation Redevelopment Act;
| ||
(P) An amount equal to the amount of the deduction | ||
used to compute the
federal income tax credit for | ||
restoration of substantial amounts held under
claim of | ||
right for the taxable year pursuant to Section 1341 of | ||
the
Internal Revenue Code of 1986;
| ||
(Q) An amount equal to any amounts included in such | ||
total, received by
the taxpayer as an acceleration in | ||
the payment of life, endowment or annuity
benefits in | ||
advance of the time they would otherwise be payable as | ||
an indemnity
for a terminal illness;
| ||
(R) An amount equal to the amount of any federal or | ||
State bonus paid
to veterans of the Persian Gulf War;
| ||
(S) An amount, to the extent included in adjusted | ||
gross income, equal
to the amount of a contribution |
made in the taxable year on behalf of the
taxpayer to a | ||
medical care savings account established under the | ||
Medical Care
Savings Account Act or the Medical Care | ||
Savings Account Act of 2000 to the
extent the | ||
contribution is accepted by the account
administrator | ||
as provided in that Act;
| ||
(T) An amount, to the extent included in adjusted | ||
gross income, equal to
the amount of interest earned in | ||
the taxable year on a medical care savings
account | ||
established under the Medical Care Savings Account Act | ||
or the Medical
Care Savings Account Act of 2000 on | ||
behalf of the
taxpayer, other than interest added | ||
pursuant to item (D-5) of this paragraph
(2);
| ||
(U) For one taxable year beginning on or after | ||
January 1,
1994, an
amount equal to the total amount of | ||
tax imposed and paid under subsections (a)
and (b) of | ||
Section 201 of this Act on grant amounts received by | ||
the taxpayer
under the Nursing Home Grant Assistance | ||
Act during the taxpayer's taxable years
1992 and 1993;
| ||
(V) Beginning with tax years ending on or after | ||
December 31, 1995 and
ending with tax years ending on | ||
or before December 31, 2004, an amount equal to
the | ||
amount paid by a taxpayer who is a
self-employed | ||
taxpayer, a partner of a partnership, or a
shareholder | ||
in a Subchapter S corporation for health insurance or | ||
long-term
care insurance for that taxpayer or that |
taxpayer's spouse or dependents, to
the extent that the | ||
amount paid for that health insurance or long-term care
| ||
insurance may be deducted under Section 213 of the | ||
Internal Revenue Code of
1986, has not been deducted on | ||
the federal income tax return of the taxpayer,
and does | ||
not exceed the taxable income attributable to that | ||
taxpayer's income,
self-employment income, or | ||
Subchapter S corporation income; except that no
| ||
deduction shall be allowed under this item (V) if the | ||
taxpayer is eligible to
participate in any health | ||
insurance or long-term care insurance plan of an
| ||
employer of the taxpayer or the taxpayer's
spouse. The | ||
amount of the health insurance and long-term care | ||
insurance
subtracted under this item (V) shall be | ||
determined by multiplying total
health insurance and | ||
long-term care insurance premiums paid by the taxpayer
| ||
times a number that represents the fractional | ||
percentage of eligible medical
expenses under Section | ||
213 of the Internal Revenue Code of 1986 not actually
| ||
deducted on the taxpayer's federal income tax return;
| ||
(W) For taxable years beginning on or after January | ||
1, 1998,
all amounts included in the taxpayer's federal | ||
gross income
in the taxable year from amounts converted | ||
from a regular IRA to a Roth IRA.
This paragraph is | ||
exempt from the provisions of Section
250;
| ||
(X) For taxable year 1999 and thereafter, an amount |
equal to the
amount of any (i) distributions, to the | ||
extent includible in gross income for
federal income | ||
tax purposes, made to the taxpayer because of his or | ||
her status
as a victim of persecution for racial or | ||
religious reasons by Nazi Germany or
any other Axis | ||
regime or as an heir of the victim and (ii) items
of | ||
income, to the extent
includible in gross income for | ||
federal income tax purposes, attributable to,
derived | ||
from or in any way related to assets stolen from, | ||
hidden from, or
otherwise lost to a victim of
| ||
persecution for racial or religious reasons by Nazi | ||
Germany or any other Axis
regime immediately prior to, | ||
during, and immediately after World War II,
including, | ||
but
not limited to, interest on the proceeds receivable | ||
as insurance
under policies issued to a victim of | ||
persecution for racial or religious
reasons
by Nazi | ||
Germany or any other Axis regime by European insurance | ||
companies
immediately prior to and during World War II;
| ||
provided, however, this subtraction from federal | ||
adjusted gross income does not
apply to assets acquired | ||
with such assets or with the proceeds from the sale of
| ||
such assets; provided, further, this paragraph shall | ||
only apply to a taxpayer
who was the first recipient of | ||
such assets after their recovery and who is a
victim of | ||
persecution for racial or religious reasons
by Nazi | ||
Germany or any other Axis regime or as an heir of the |
victim. The
amount of and the eligibility for any | ||
public assistance, benefit, or
similar entitlement is | ||
not affected by the inclusion of items (i) and (ii) of
| ||
this paragraph in gross income for federal income tax | ||
purposes.
This paragraph is exempt from the provisions | ||
of Section 250;
| ||
(Y) For taxable years beginning on or after January | ||
1, 2002
and ending
on or before December 31, 2004, | ||
moneys contributed in the taxable year to a College | ||
Savings Pool account under
Section 16.5 of the State | ||
Treasurer Act, except that amounts excluded from
gross | ||
income under Section 529(c)(3)(C)(i) of the Internal | ||
Revenue Code
shall not be considered moneys | ||
contributed under this subparagraph (Y). For taxable | ||
years beginning on or after January 1, 2005, a maximum | ||
of $10,000
contributed
in the
taxable year to (i) a | ||
College Savings Pool account under Section 16.5 of the
| ||
State
Treasurer Act or (ii) the Illinois Prepaid | ||
Tuition Trust Fund,
except that
amounts excluded from | ||
gross income under Section 529(c)(3)(C)(i) of the
| ||
Internal
Revenue Code shall not be considered moneys | ||
contributed under this subparagraph
(Y). This
| ||
subparagraph (Y) is exempt from the provisions of | ||
Section 250;
| ||
(Z) For taxable years 2001 and thereafter, for the | ||
taxable year in
which the bonus depreciation deduction
|
is taken on the taxpayer's federal income tax return | ||
under
subsection (k) of Section 168 of the Internal | ||
Revenue Code and for each
applicable taxable year | ||
thereafter, an amount equal to "x", where:
| ||
(1) "y" equals the amount of the depreciation | ||
deduction taken for the
taxable year
on the | ||
taxpayer's federal income tax return on property | ||
for which the bonus
depreciation deduction
was | ||
taken in any year under subsection (k) of Section | ||
168 of the Internal
Revenue Code, but not including | ||
the bonus depreciation deduction;
| ||
(2) for taxable years ending on or before | ||
December 31, 2005, "x" equals "y" multiplied by 30 | ||
and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(3) for taxable years ending after December | ||
31, 2005: | ||
(i) for property on which a bonus | ||
depreciation deduction of 30% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
30 and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(ii) for property on which a bonus | ||
depreciation deduction of 50% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
1.0.
|
The aggregate amount deducted under this | ||
subparagraph in all taxable
years for any one piece of | ||
property may not exceed the amount of the bonus
| ||
depreciation deduction
taken on that property on the | ||
taxpayer's federal income tax return under
subsection | ||
(k) of Section 168 of the Internal Revenue Code. This | ||
subparagraph (Z) is exempt from the provisions of | ||
Section 250;
| ||
(AA) If the taxpayer sells, transfers, abandons, | ||
or otherwise disposes of
property for which the | ||
taxpayer was required in any taxable year to make an
| ||
addition modification under subparagraph (D-15), then | ||
an amount equal to that
addition modification.
| ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the | ||
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was required in any taxable year to make an addition | ||
modification under subparagraph (D-15), then an amount | ||
equal to that addition modification.
| ||
The taxpayer is allowed to take the deduction under | ||
this subparagraph
only once with respect to any one | ||
piece of property. | ||
This subparagraph (AA) is exempt from the | ||
provisions of Section 250;
| ||
(BB) Any amount included in adjusted gross income, |
other
than
salary,
received by a driver in a | ||
ridesharing arrangement using a motor vehicle;
| ||
(CC) The amount of (i) any interest income (net of | ||
the deductions allocable thereto) taken into account | ||
for the taxable year with respect to a transaction with | ||
a taxpayer that is required to make an addition | ||
modification with respect to such transaction under | ||
Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||
the amount of that addition modification, and
(ii) any | ||
income from intangible property (net of the deductions | ||
allocable thereto) taken into account for the taxable | ||
year with respect to a transaction with a taxpayer that | ||
is required to make an addition modification with | ||
respect to such transaction under Section | ||
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||
203(d)(2)(D-8), but not to exceed the amount of that | ||
addition modification . This subparagraph (CC) is | ||
exempt from the provisions of Section 250 ; | ||
(DD) An amount equal to the interest income taken | ||
into account for the taxable year (net of the | ||
deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact that the foreign person's business activity | ||
outside the United States is 80% or more of that |
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(a)(2)(D-17) for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, to the same person . This subparagraph (DD) | ||
is exempt from the provisions of Section 250 ; and | ||
(EE) An amount equal to the income from intangible | ||
property taken into account for the taxable year (net | ||
of the deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact that the foreign person's business activity | ||
outside the United States is 80% or more of that | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily |
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(a)(2)(D-18) for | ||
intangible expenses and costs paid, accrued, or | ||
incurred, directly or indirectly, to the same foreign | ||
person . This subparagraph (EE) is exempt from the | ||
provisions of Section 250. ; and
| ||
(FF) An amount equal to the income from insurance | ||
premiums taken into account for the taxable year (net | ||
of the deductions allocable thereto) with respect to | ||
transactions with a person who would be a member of the | ||
same unitary business group but for the fact that the | ||
person is prohibited under Section 1501(a)(27) from | ||
being included in the unitary business group because he | ||
or she is ordinarily required to apportion business | ||
income under different subsections of Section 304, but | ||
not to exceed the addition modification required to be | ||
made for the same taxable year under Section | ||
203(a)(2)(D-18) for intangible expenses and costs | ||
paid, accrued, or incurred, directly or indirectly, to | ||
the same person.
| ||
(b) Corporations.
| ||
(1) In general. In the case of a corporation, base | ||
income means an
amount equal to the taxpayer's taxable |
income for the taxable year as
modified by paragraph (2).
| ||
(2) Modifications. The taxable income referred to in | ||
paragraph (1)
shall be modified by adding thereto the sum | ||
of the following amounts:
| ||
(A) An amount equal to all amounts paid or accrued | ||
to the taxpayer
as interest and all distributions | ||
received from regulated investment
companies during | ||
the taxable year to the extent excluded from gross
| ||
income in the computation of taxable income;
| ||
(B) An amount equal to the amount of tax imposed by | ||
this Act to the
extent deducted from gross income in | ||
the computation of taxable income
for the taxable year;
| ||
(C) In the case of a regulated investment company, | ||
an amount equal to
the excess of (i) the net long-term | ||
capital gain for the taxable year, over
(ii) the amount | ||
of the capital gain dividends designated as such in | ||
accordance
with Section 852(b)(3)(C) of the Internal | ||
Revenue Code and any amount
designated under Section | ||
852(b)(3)(D) of the Internal Revenue Code,
| ||
attributable to the taxable year (this amendatory Act | ||
of 1995
(Public Act 89-89) is declarative of existing | ||
law and is not a new
enactment);
| ||
(D) The amount of any net operating loss deduction | ||
taken in arriving
at taxable income, other than a net | ||
operating loss carried forward from a
taxable year | ||
ending prior to December 31, 1986;
|
(E) For taxable years in which a net operating loss | ||
carryback or
carryforward from a taxable year ending | ||
prior to December 31, 1986 is an
element of taxable | ||
income under paragraph (1) of subsection (e) or
| ||
subparagraph (E) of paragraph (2) of subsection (e), | ||
the amount by which
addition modifications other than | ||
those provided by this subparagraph (E)
exceeded | ||
subtraction modifications in such earlier taxable | ||
year, with the
following limitations applied in the | ||
order that they are listed:
| ||
(i) the addition modification relating to the | ||
net operating loss
carried back or forward to the | ||
taxable year from any taxable year ending
prior to | ||
December 31, 1986 shall be reduced by the amount of | ||
addition
modification under this subparagraph (E) | ||
which related to that net operating
loss and which | ||
was taken into account in calculating the base | ||
income of an
earlier taxable year, and
| ||
(ii) the addition modification relating to the | ||
net operating loss
carried back or forward to the | ||
taxable year from any taxable year ending
prior to | ||
December 31, 1986 shall not exceed the amount of | ||
such carryback or
carryforward;
| ||
For taxable years in which there is a net operating | ||
loss carryback or
carryforward from more than one other | ||
taxable year ending prior to December
31, 1986, the |
addition modification provided in this subparagraph | ||
(E) shall
be the sum of the amounts computed | ||
independently under the preceding
provisions of this | ||
subparagraph (E) for each such taxable year;
| ||
(E-5) For taxable years ending after December 31, | ||
1997, an
amount equal to any eligible remediation costs | ||
that the corporation
deducted in computing adjusted | ||
gross income and for which the
corporation claims a | ||
credit under subsection (l) of Section 201;
| ||
(E-10) For taxable years 2001 and thereafter, an | ||
amount equal to the
bonus depreciation deduction taken | ||
on the taxpayer's federal income tax return for the | ||
taxable
year under subsection (k) of Section 168 of the | ||
Internal Revenue Code; and
| ||
(E-11) If the taxpayer sells, transfers, abandons, | ||
or otherwise disposes of property for which the | ||
taxpayer was required in any taxable year to
make an | ||
addition modification under subparagraph (E-10), then | ||
an amount equal
to the aggregate amount of the | ||
deductions taken in all taxable
years under | ||
subparagraph (T) with respect to that property.
| ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the | ||
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was allowed in any taxable year to make a subtraction |
modification under subparagraph (T), then an amount | ||
equal to that subtraction modification.
| ||
The taxpayer is required to make the addition | ||
modification under this
subparagraph
only once with | ||
respect to any one piece of property;
| ||
(E-12) An amount equal to the amount otherwise | ||
allowed as a deduction in computing base income for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, (i) for taxable years ending on or after | ||
December 31, 2004, to a foreign person who would be a | ||
member of the same unitary business group but for the | ||
fact the foreign person's business activity outside | ||
the United States is 80% or more of the foreign | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304. The addition modification | ||
required by this subparagraph shall be reduced to the | ||
extent that dividends were included in base income of | ||
the unitary group for the same taxable year and | ||
received by the taxpayer or by a member of the | ||
taxpayer's unitary business group (including amounts |
included in gross income pursuant to Sections 951 | ||
through 964 of the Internal Revenue Code and amounts | ||
included in gross income under Section 78 of the | ||
Internal Revenue Code) with respect to the stock of the | ||
same person to whom the interest was paid, accrued, or | ||
incurred.
| ||
This paragraph shall not apply to the following:
| ||
(i) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a foreign | ||
person who is subject in a foreign country or | ||
state, other than a state which requires mandatory | ||
unitary reporting, to a tax on or measured by net | ||
income with respect to such interest; or | ||
(ii) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a foreign | ||
person if the taxpayer can establish, based on a | ||
preponderance of the evidence, both of the | ||
following: | ||
(a) the foreign person, during the same | ||
taxable year, paid, accrued, or incurred, the | ||
interest to a person that is not a related | ||
member, and | ||
(b) the transaction giving rise to the | ||
interest expense between the taxpayer and the | ||
foreign person did not have as a principal | ||
purpose the avoidance of Illinois income tax, |
and is paid pursuant to a contract or agreement | ||
that reflects an arm's-length interest rate | ||
and terms; or
| ||
(iii) the taxpayer can establish, based on | ||
clear and convincing evidence, that the interest | ||
paid, accrued, or incurred relates to a contract or | ||
agreement entered into at arm's-length rates and | ||
terms and the principal purpose for the payment is | ||
not federal or Illinois tax avoidance; or
| ||
(iv) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a foreign | ||
person if the taxpayer establishes by clear and | ||
convincing evidence that the adjustments are | ||
unreasonable; or if the taxpayer and the Director | ||
agree in writing to the application or use of an | ||
alternative method of apportionment under Section | ||
304(f).
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for | ||
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department | ||
and such regulations provide methods and standards | ||
by which the Department will utilize its authority | ||
under Section 404 of this Act;
|
(E-13) An amount equal to the amount of intangible | ||
expenses and costs otherwise allowed as a deduction in | ||
computing base income, and that were paid, accrued, or | ||
incurred, directly or indirectly, (i) for taxable | ||
years ending on or after December 31, 2004, to a | ||
foreign person who would be a member of the same | ||
unitary business group but for the fact that the | ||
foreign person's business activity outside the United | ||
States is 80% or more of that person's total business | ||
activity and (ii) for taxable years ending on or after | ||
December 31, 2008, to a person who would be a member of | ||
the same unitary business group but for the fact that | ||
the person is prohibited under Section 1501(a)(27) | ||
from being included in the unitary business group | ||
because he or she is ordinarily required to apportion | ||
business income under different subsections of Section | ||
304. The addition modification required by this | ||
subparagraph shall be reduced to the extent that | ||
dividends were included in base income of the unitary | ||
group for the same taxable year and received by the | ||
taxpayer or by a member of the taxpayer's unitary | ||
business group (including amounts included in gross | ||
income pursuant to Sections 951 through 964 of the | ||
Internal Revenue Code and amounts included in gross | ||
income under Section 78 of the Internal Revenue Code) | ||
with respect to the stock of the same person to whom |
the intangible expenses and costs were directly or | ||
indirectly paid, incurred, or accrued. The preceding | ||
sentence shall not apply to the extent that the same | ||
dividends caused a reduction to the addition | ||
modification required under Section 203(b)(2)(E-12) of | ||
this Act.
As used in this subparagraph, the term | ||
"intangible expenses and costs" includes (1) expenses, | ||
losses, and costs for, or related to, the direct or | ||
indirect acquisition, use, maintenance or management, | ||
ownership, sale, exchange, or any other disposition of | ||
intangible property; (2) losses incurred, directly or | ||
indirectly, from factoring transactions or discounting | ||
transactions; (3) royalty, patent, technical, and | ||
copyright fees; (4) licensing fees; and (5) other | ||
similar expenses and costs.
For purposes of this | ||
subparagraph, "intangible property" includes patents, | ||
patent applications, trade names, trademarks, service | ||
marks, copyrights, mask works, trade secrets, and | ||
similar types of intangible assets. | ||
This paragraph shall not apply to the following: | ||
(i) any item of intangible expenses or costs | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a foreign | ||
person who is subject in a foreign country or | ||
state, other than a state which requires mandatory | ||
unitary reporting, to a tax on or measured by net |
income with respect to such item; or | ||
(ii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, if the taxpayer can establish, based | ||
on a preponderance of the evidence, both of the | ||
following: | ||
(a) the foreign person during the same | ||
taxable year paid, accrued, or incurred, the | ||
intangible expense or cost to a person that is | ||
not a related member, and | ||
(b) the transaction giving rise to the | ||
intangible expense or cost between the | ||
taxpayer and the foreign person did not have as | ||
a principal purpose the avoidance of Illinois | ||
income tax, and is paid pursuant to a contract | ||
or agreement that reflects arm's-length terms; | ||
or | ||
(iii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a foreign | ||
person if the taxpayer establishes by clear and | ||
convincing evidence, that the adjustments are | ||
unreasonable; or if the taxpayer and the Director | ||
agree in writing to the application or use of an | ||
alternative method of apportionment under Section | ||
304(f);
|
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for | ||
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department | ||
and such regulations provide methods and standards | ||
by which the Department will utilize its authority | ||
under Section 404 of this Act;
| ||
(E-14) For taxable years ending on or after | ||
December 31, 2008, an amount equal to the amount of | ||
insurance premium expenses and costs otherwise allowed | ||
as a deduction in computing base income, and that were | ||
paid, accrued, or incurred, directly or indirectly, to | ||
a person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304. The | ||
addition modification required by this subparagraph | ||
shall be reduced to the extent that dividends were | ||
included in base income of the unitary group for the | ||
same taxable year and received by the taxpayer or by a | ||
member of the taxpayer's unitary business group | ||
(including amounts included in gross income under |
Sections 951 through 964 of the Internal Revenue Code | ||
and amounts included in gross income under Section 78 | ||
of the Internal Revenue Code) with respect to the stock | ||
of the same person to whom the premiums intangible | ||
expenses and costs were directly or indirectly paid, | ||
incurred, or accrued. The preceding sentence does not | ||
apply to the extent that the same dividends caused a | ||
reduction to the addition modification required under | ||
Section 203(b)(2)(E-12) or Section 203(b)(2)(E-13) | ||
203(a)(2)(D-17) of this Act;
| ||
(E-15) For taxable years beginning after December | ||
31, 2008, any deduction for dividends paid to a | ||
corporation by a captive real estate investment trust | ||
that is allowed to a real estate investment trust under | ||
Section 857(b)(2)(B) of the Internal Revenue Code for | ||
dividends paid;
| ||
and by deducting from the total so obtained the sum of the | ||
following
amounts:
| ||
(F) An amount equal to the amount of any tax | ||
imposed by this Act
which was refunded to the taxpayer | ||
and included in such total for the
taxable year;
| ||
(G) An amount equal to any amount included in such | ||
total under
Section 78 of the Internal Revenue Code;
| ||
(H) In the case of a regulated investment company, | ||
an amount equal
to the amount of exempt interest | ||
dividends as defined in subsection (b)
(5) of Section |
852 of the Internal Revenue Code, paid to shareholders
| ||
for the taxable year;
| ||
(I) With the exception of any amounts subtracted | ||
under subparagraph
(J),
an amount equal to the sum of | ||
all amounts disallowed as
deductions by (i) Sections | ||
171(a) (2), and 265(a)(2) and amounts disallowed as
| ||
interest expense by Section 291(a)(3) of the Internal | ||
Revenue Code, as now
or hereafter amended, and all | ||
amounts of expenses allocable to interest and
| ||
disallowed as deductions by Section 265(a)(1) of the | ||
Internal Revenue Code,
as now or hereafter amended;
and | ||
(ii) for taxable years
ending on or after August 13, | ||
1999, Sections
171(a)(2), 265,
280C, 291(a)(3), and | ||
832(b)(5)(B)(i) of the Internal Revenue Code; the
| ||
provisions of this
subparagraph are exempt from the | ||
provisions of Section 250;
| ||
(J) An amount equal to all amounts included in such | ||
total which are
exempt from taxation by this State | ||
either by reason of its statutes or
Constitution
or by | ||
reason of the Constitution, treaties or statutes of the | ||
United States;
provided that, in the case of any | ||
statute of this State or, for taxable years ending on | ||
or after December 31, 2008, of the United States, any | ||
treaty of the United States, the Illinois | ||
Constitution, or the United States Constitution that | ||
exempts income
derived from bonds or other obligations |
from the tax imposed under this Act,
the amount | ||
exempted shall be the interest income net of bond | ||
premium amortization , and, for taxable years ending on | ||
or after December 31, 2008, interest expense incurred | ||
on indebtedness to carry the bond or other obligation, | ||
expenses incurred in producing the income to be | ||
deducted, and all other related expenses. The amount of | ||
expenses to be taken into account under this provision | ||
may not exceed the amount of income that is exempted ;
| ||
(K) An amount equal to those dividends included in | ||
such total
which were paid by a corporation which | ||
conducts
business operations in an Enterprise Zone or | ||
zones created under
the Illinois Enterprise Zone Act or | ||
a River Edge Redevelopment Zone or zones created under | ||
the River Edge Redevelopment Zone Act and conducts | ||
substantially all of its
operations in an Enterprise | ||
Zone or zones or a River Edge Redevelopment Zone or | ||
zones. This subparagraph (K) is exempt from the | ||
provisions of Section 250;
| ||
(L) An amount equal to those dividends included in | ||
such total that
were paid by a corporation that | ||
conducts business operations in a federally
designated | ||
Foreign Trade Zone or Sub-Zone and that is designated a | ||
High Impact
Business located in Illinois; provided | ||
that dividends eligible for the
deduction provided in | ||
subparagraph (K) of paragraph 2 of this subsection
|
shall not be eligible for the deduction provided under | ||
this subparagraph
(L);
| ||
(M) For any taxpayer that is a financial | ||
organization within the meaning
of Section 304(c) of | ||
this Act, an amount included in such total as interest
| ||
income from a loan or loans made by such taxpayer to a | ||
borrower, to the extent
that such a loan is secured by | ||
property which is eligible for the Enterprise
Zone | ||
Investment Credit or the River Edge Redevelopment Zone | ||
Investment Credit. To determine the portion of a loan | ||
or loans that is
secured by property eligible for a | ||
Section 201(f) investment
credit to the borrower, the | ||
entire principal amount of the loan or loans
between | ||
the taxpayer and the borrower should be divided into | ||
the basis of the
Section 201(f) investment credit | ||
property which secures the
loan or loans, using for | ||
this purpose the original basis of such property on
the | ||
date that it was placed in service in the
Enterprise | ||
Zone or the River Edge Redevelopment Zone. The | ||
subtraction modification available to taxpayer in any
| ||
year under this subsection shall be that portion of the | ||
total interest paid
by the borrower with respect to | ||
such loan attributable to the eligible
property as | ||
calculated under the previous sentence. This | ||
subparagraph (M) is exempt from the provisions of | ||
Section 250;
|
(M-1) For any taxpayer that is a financial | ||
organization within the
meaning of Section 304(c) of | ||
this Act, an amount included in such total as
interest | ||
income from a loan or loans made by such taxpayer to a | ||
borrower,
to the extent that such a loan is secured by | ||
property which is eligible for
the High Impact Business | ||
Investment Credit. To determine the portion of a
loan | ||
or loans that is secured by property eligible for a | ||
Section 201(h) investment credit to the borrower, the | ||
entire principal amount of
the loan or loans between | ||
the taxpayer and the borrower should be divided into
| ||
the basis of the Section 201(h) investment credit | ||
property which
secures the loan or loans, using for | ||
this purpose the original basis of such
property on the | ||
date that it was placed in service in a federally | ||
designated
Foreign Trade Zone or Sub-Zone located in | ||
Illinois. No taxpayer that is
eligible for the | ||
deduction provided in subparagraph (M) of paragraph | ||
(2) of
this subsection shall be eligible for the | ||
deduction provided under this
subparagraph (M-1). The | ||
subtraction modification available to taxpayers in
any | ||
year under this subsection shall be that portion of the | ||
total interest
paid by the borrower with respect to | ||
such loan attributable to the eligible
property as | ||
calculated under the previous sentence;
| ||
(N) Two times any contribution made during the |
taxable year to a
designated zone organization to the | ||
extent that the contribution (i)
qualifies as a | ||
charitable contribution under subsection (c) of | ||
Section 170
of the Internal Revenue Code and (ii) must, | ||
by its terms, be used for a
project approved by the | ||
Department of Commerce and Economic Opportunity under | ||
Section 11 of the Illinois Enterprise Zone Act or under | ||
Section 10-10 of the River Edge Redevelopment Zone Act. | ||
This subparagraph (N) is exempt from the provisions of | ||
Section 250;
| ||
(O) An amount equal to: (i) 85% for taxable years | ||
ending on or before
December 31, 1992, or, a percentage | ||
equal to the percentage allowable under
Section | ||
243(a)(1) of the Internal Revenue Code of 1986 for | ||
taxable years ending
after December 31, 1992, of the | ||
amount by which dividends included in taxable
income | ||
and received from a corporation that is not created or | ||
organized under
the laws of the United States or any | ||
state or political subdivision thereof,
including, for | ||
taxable years ending on or after December 31, 1988, | ||
dividends
received or deemed received or paid or deemed | ||
paid under Sections 951 through
964 of the Internal | ||
Revenue Code, exceed the amount of the modification
| ||
provided under subparagraph (G) of paragraph (2) of | ||
this subsection (b) which
is related to such dividends, | ||
and including, for taxable years ending on or after |
December 31, 2008, dividends received from a captive | ||
real estate investment trust; plus (ii) 100% of the | ||
amount by which dividends,
included in taxable income | ||
and received, including, for taxable years ending on
or | ||
after December 31, 1988, dividends received or deemed | ||
received or paid or
deemed paid under Sections 951 | ||
through 964 of the Internal Revenue Code and including, | ||
for taxable years ending on or after December 31, 2008, | ||
dividends received from a captive real estate | ||
investment trust, from
any such corporation specified | ||
in clause (i) that would but for the provisions
of | ||
Section 1504 (b) (3) of the Internal Revenue Code be | ||
treated as a member of
the affiliated group which | ||
includes the dividend recipient, exceed the amount
of | ||
the modification provided under subparagraph (G) of | ||
paragraph (2) of this
subsection (b) which is related | ||
to such dividends . This subparagraph (O) is exempt from | ||
the provisions of Section 250 of this Act ;
| ||
(P) An amount equal to any contribution made to a | ||
job training project
established pursuant to the Tax | ||
Increment Allocation Redevelopment Act;
| ||
(Q) An amount equal to the amount of the deduction | ||
used to compute the
federal income tax credit for | ||
restoration of substantial amounts held under
claim of | ||
right for the taxable year pursuant to Section 1341 of | ||
the
Internal Revenue Code of 1986;
|
(R) On and after July 20, 1999, in the case of an | ||
attorney-in-fact with respect to whom an
interinsurer | ||
or a reciprocal insurer has made the election under | ||
Section 835 of
the Internal Revenue Code, 26 U.S.C. | ||
835, an amount equal to the excess, if
any, of the | ||
amounts paid or incurred by that interinsurer or | ||
reciprocal insurer
in the taxable year to the | ||
attorney-in-fact over the deduction allowed to that
| ||
interinsurer or reciprocal insurer with respect to the | ||
attorney-in-fact under
Section 835(b) of the Internal | ||
Revenue Code for the taxable year; the provisions of | ||
this subparagraph are exempt from the provisions of | ||
Section 250;
| ||
(S) For taxable years ending on or after December | ||
31, 1997, in the
case of a Subchapter
S corporation, an | ||
amount equal to all amounts of income allocable to a
| ||
shareholder subject to the Personal Property Tax | ||
Replacement Income Tax imposed
by subsections (c) and | ||
(d) of Section 201 of this Act, including amounts
| ||
allocable to organizations exempt from federal income | ||
tax by reason of Section
501(a) of the Internal Revenue | ||
Code. This subparagraph (S) is exempt from
the | ||
provisions of Section 250;
| ||
(T) For taxable years 2001 and thereafter, for the | ||
taxable year in
which the bonus depreciation deduction
| ||
is taken on the taxpayer's federal income tax return |
under
subsection (k) of Section 168 of the Internal | ||
Revenue Code and for each
applicable taxable year | ||
thereafter, an amount equal to "x", where:
| ||
(1) "y" equals the amount of the depreciation | ||
deduction taken for the
taxable year
on the | ||
taxpayer's federal income tax return on property | ||
for which the bonus
depreciation deduction
was | ||
taken in any year under subsection (k) of Section | ||
168 of the Internal
Revenue Code, but not including | ||
the bonus depreciation deduction;
| ||
(2) for taxable years ending on or before | ||
December 31, 2005, "x" equals "y" multiplied by 30 | ||
and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(3) for taxable years ending after December | ||
31, 2005: | ||
(i) for property on which a bonus | ||
depreciation deduction of 30% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
30 and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(ii) for property on which a bonus | ||
depreciation deduction of 50% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
1.0.
| ||
The aggregate amount deducted under this |
subparagraph in all taxable
years for any one piece of | ||
property may not exceed the amount of the bonus
| ||
depreciation deduction
taken on that property on the | ||
taxpayer's federal income tax return under
subsection | ||
(k) of Section 168 of the Internal Revenue Code. This | ||
subparagraph (T) is exempt from the provisions of | ||
Section 250;
| ||
(U) If the taxpayer sells, transfers, abandons, or | ||
otherwise disposes of
property for which the taxpayer | ||
was required in any taxable year to make an
addition | ||
modification under subparagraph (E-10), then an amount | ||
equal to that
addition modification.
| ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the | ||
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was required in any taxable year to make an addition | ||
modification under subparagraph (E-10), then an amount | ||
equal to that addition modification.
| ||
The taxpayer is allowed to take the deduction under | ||
this subparagraph
only once with respect to any one | ||
piece of property. | ||
This subparagraph (U) is exempt from the | ||
provisions of Section 250;
| ||
(V) The amount of: (i) any interest income (net of | ||
the deductions allocable thereto) taken into account |
for the taxable year with respect to a transaction with | ||
a taxpayer that is required to make an addition | ||
modification with respect to such transaction under | ||
Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||
the amount of such addition modification , and
(ii) any | ||
income from intangible property (net of the deductions | ||
allocable thereto) taken into account for the taxable | ||
year with respect to a transaction with a taxpayer that | ||
is required to make an addition modification with | ||
respect to such transaction under Section | ||
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||
203(d)(2)(D-8), but not to exceed the amount of such | ||
addition modification , and (iii) any insurance premium | ||
income (net of deductions allocable thereto) taken | ||
into account for the taxable year with respect to a | ||
transaction with a taxpayer that is required to make an | ||
addition modification with respect to such transaction | ||
under Section 203(a)(2)(D-19), Section | ||
203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||
203(d)(2)(D-9), but not to exceed the amount of that | ||
addition modification. This subparagraph (V) is exempt | ||
from the provisions of Section 250 ;
| ||
(W) An amount equal to the interest income taken | ||
into account for the taxable year (net of the | ||
deductions allocable thereto) with respect to |
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact that the foreign person's business activity | ||
outside the United States is 80% or more of that | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(b)(2)(E-12) for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, to the same person . This subparagraph (W) | ||
is exempt from the provisions of Section 250 ; and
| ||
(X) An amount equal to the income from intangible | ||
property taken into account for the taxable year (net | ||
of the deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact that the foreign person's business activity | ||
outside the United States is 80% or more of that | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person |
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(b)(2)(E-13) for | ||
intangible expenses and costs paid, accrued, or | ||
incurred, directly or indirectly, to the same foreign | ||
person . This subparagraph (X) is exempt from the | ||
provisions of Section 250. ; and
| ||
(FF) An amount equal to the income from insurance | ||
premiums taken into account for the taxable year (net | ||
of the deductions allocable thereto) with respect to | ||
transactions with a person who would be a member of the | ||
same unitary business group but for the fact that the | ||
person is prohibited under Section 1501(a)(27) from | ||
being included in the unitary business group because he | ||
or she is ordinarily required to apportion business | ||
income under different subsections of Section 304, but | ||
not to exceed the addition modification required to be | ||
made for the same taxable year under Section | ||
203(a)(2)(D-18) for intangible expenses and costs | ||
paid, accrued, or incurred, directly or indirectly, to | ||
the same person.
|
(3) Special rule. For purposes of paragraph (2) (A), | ||
"gross income"
in the case of a life insurance company, for | ||
tax years ending on and after
December 31, 1994,
shall mean | ||
the gross investment income for the taxable year.
| ||
(c) Trusts and estates.
| ||
(1) In general. In the case of a trust or estate, base | ||
income means
an amount equal to the taxpayer's taxable | ||
income for the taxable year as
modified by paragraph (2).
| ||
(2) Modifications. Subject to the provisions of | ||
paragraph (3), the
taxable income referred to in paragraph | ||
(1) shall be modified by adding
thereto the sum of the | ||
following amounts:
| ||
(A) An amount equal to all amounts paid or accrued | ||
to the taxpayer
as interest or dividends during the | ||
taxable year to the extent excluded
from gross income | ||
in the computation of taxable income;
| ||
(B) In the case of (i) an estate, $600; (ii) a | ||
trust which, under
its governing instrument, is | ||
required to distribute all of its income
currently, | ||
$300; and (iii) any other trust, $100, but in each such | ||
case,
only to the extent such amount was deducted in | ||
the computation of
taxable income;
| ||
(C) An amount equal to the amount of tax imposed by | ||
this Act to the
extent deducted from gross income in | ||
the computation of taxable income
for the taxable year;
|
(D) The amount of any net operating loss deduction | ||
taken in arriving at
taxable income, other than a net | ||
operating loss carried forward from a
taxable year | ||
ending prior to December 31, 1986;
| ||
(E) For taxable years in which a net operating loss | ||
carryback or
carryforward from a taxable year ending | ||
prior to December 31, 1986 is an
element of taxable | ||
income under paragraph (1) of subsection (e) or | ||
subparagraph
(E) of paragraph (2) of subsection (e), | ||
the amount by which addition
modifications other than | ||
those provided by this subparagraph (E) exceeded
| ||
subtraction modifications in such taxable year, with | ||
the following limitations
applied in the order that | ||
they are listed:
| ||
(i) the addition modification relating to the | ||
net operating loss
carried back or forward to the | ||
taxable year from any taxable year ending
prior to | ||
December 31, 1986 shall be reduced by the amount of | ||
addition
modification under this subparagraph (E) | ||
which related to that net
operating loss and which | ||
was taken into account in calculating the base
| ||
income of an earlier taxable year, and
| ||
(ii) the addition modification relating to the | ||
net operating loss
carried back or forward to the | ||
taxable year from any taxable year ending
prior to | ||
December 31, 1986 shall not exceed the amount of |
such carryback or
carryforward;
| ||
For taxable years in which there is a net operating | ||
loss carryback or
carryforward from more than one other | ||
taxable year ending prior to December
31, 1986, the | ||
addition modification provided in this subparagraph | ||
(E) shall
be the sum of the amounts computed | ||
independently under the preceding
provisions of this | ||
subparagraph (E) for each such taxable year;
| ||
(F) For taxable years ending on or after January 1, | ||
1989, an amount
equal to the tax deducted pursuant to | ||
Section 164 of the Internal Revenue
Code if the trust | ||
or estate is claiming the same tax for purposes of the
| ||
Illinois foreign tax credit under Section 601 of this | ||
Act;
| ||
(G) An amount equal to the amount of the capital | ||
gain deduction
allowable under the Internal Revenue | ||
Code, to the extent deducted from
gross income in the | ||
computation of taxable income;
| ||
(G-5) For taxable years ending after December 31, | ||
1997, an
amount equal to any eligible remediation costs | ||
that the trust or estate
deducted in computing adjusted | ||
gross income and for which the trust
or estate claims a | ||
credit under subsection (l) of Section 201;
| ||
(G-10) For taxable years 2001 and thereafter, an | ||
amount equal to the
bonus depreciation deduction taken | ||
on the taxpayer's federal income tax return for the |
taxable
year under subsection (k) of Section 168 of the | ||
Internal Revenue Code; and
| ||
(G-11) If the taxpayer sells, transfers, abandons, | ||
or otherwise disposes of property for which the | ||
taxpayer was required in any taxable year to
make an | ||
addition modification under subparagraph (G-10), then | ||
an amount equal
to the aggregate amount of the | ||
deductions taken in all taxable
years under | ||
subparagraph (R) with respect to that property.
| ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the | ||
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was allowed in any taxable year to make a subtraction | ||
modification under subparagraph (R), then an amount | ||
equal to that subtraction modification.
| ||
The taxpayer is required to make the addition | ||
modification under this
subparagraph
only once with | ||
respect to any one piece of property;
| ||
(G-12) An amount equal to the amount otherwise | ||
allowed as a deduction in computing base income for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, (i) for taxable years ending on or after | ||
December 31, 2004, to a foreign person who would be a | ||
member of the same unitary business group but for the | ||
fact that the foreign person's business activity |
outside the United States is 80% or more of the foreign | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304. The addition modification | ||
required by this subparagraph shall be reduced to the | ||
extent that dividends were included in base income of | ||
the unitary group for the same taxable year and | ||
received by the taxpayer or by a member of the | ||
taxpayer's unitary business group (including amounts | ||
included in gross income pursuant to Sections 951 | ||
through 964 of the Internal Revenue Code and amounts | ||
included in gross income under Section 78 of the | ||
Internal Revenue Code) with respect to the stock of the | ||
same person to whom the interest was paid, accrued, or | ||
incurred.
| ||
This paragraph shall not apply to the following:
| ||
(i) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a foreign | ||
person who is subject in a foreign country or | ||
state, other than a state which requires mandatory | ||
unitary reporting, to a tax on or measured by net |
income with respect to such interest; or | ||
(ii) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a foreign | ||
person if the taxpayer can establish, based on a | ||
preponderance of the evidence, both of the | ||
following: | ||
(a) the foreign person, during the same | ||
taxable year, paid, accrued, or incurred, the | ||
interest to a person that is not a related | ||
member, and | ||
(b) the transaction giving rise to the | ||
interest expense between the taxpayer and the | ||
foreign person did not have as a principal | ||
purpose the avoidance of Illinois income tax, | ||
and is paid pursuant to a contract or agreement | ||
that reflects an arm's-length interest rate | ||
and terms; or
| ||
(iii) the taxpayer can establish, based on | ||
clear and convincing evidence, that the interest | ||
paid, accrued, or incurred relates to a contract or | ||
agreement entered into at arm's-length rates and | ||
terms and the principal purpose for the payment is | ||
not federal or Illinois tax avoidance; or
| ||
(iv) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a foreign | ||
person if the taxpayer establishes by clear and |
convincing evidence that the adjustments are | ||
unreasonable; or if the taxpayer and the Director | ||
agree in writing to the application or use of an | ||
alternative method of apportionment under Section | ||
304(f).
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for | ||
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department | ||
and such regulations provide methods and standards | ||
by which the Department will utilize its authority | ||
under Section 404 of this Act;
| ||
(G-13) An amount equal to the amount of intangible | ||
expenses and costs otherwise allowed as a deduction in | ||
computing base income, and that were paid, accrued, or | ||
incurred, directly or indirectly, (i) for taxable | ||
years ending on or after December 31, 2004, to a | ||
foreign person who would be a member of the same | ||
unitary business group but for the fact that the | ||
foreign person's business activity outside the United | ||
States is 80% or more of that person's total business | ||
activity and (ii) for taxable years ending on or after | ||
December 31, 2008, to a person who would be a member of | ||
the same unitary business group but for the fact that |
the person is prohibited under Section 1501(a)(27) | ||
from being included in the unitary business group | ||
because he or she is ordinarily required to apportion | ||
business income under different subsections of Section | ||
304. The addition modification required by this | ||
subparagraph shall be reduced to the extent that | ||
dividends were included in base income of the unitary | ||
group for the same taxable year and received by the | ||
taxpayer or by a member of the taxpayer's unitary | ||
business group (including amounts included in gross | ||
income pursuant to Sections 951 through 964 of the | ||
Internal Revenue Code and amounts included in gross | ||
income under Section 78 of the Internal Revenue Code) | ||
with respect to the stock of the same person to whom | ||
the intangible expenses and costs were directly or | ||
indirectly paid, incurred, or accrued. The preceding | ||
sentence shall not apply to the extent that the same | ||
dividends caused a reduction to the addition | ||
modification required under Section 203(c)(2)(G-12) of | ||
this Act. As used in this subparagraph, the term | ||
"intangible expenses and costs" includes: (1) | ||
expenses, losses, and costs for or related to the | ||
direct or indirect acquisition, use, maintenance or | ||
management, ownership, sale, exchange, or any other | ||
disposition of intangible property; (2) losses | ||
incurred, directly or indirectly, from factoring |
transactions or discounting transactions; (3) royalty, | ||
patent, technical, and copyright fees; (4) licensing | ||
fees; and (5) other similar expenses and costs. For | ||
purposes of this subparagraph, "intangible property" | ||
includes patents, patent applications, trade names, | ||
trademarks, service marks, copyrights, mask works, | ||
trade secrets, and similar types of intangible assets. | ||
This paragraph shall not apply to the following: | ||
(i) any item of intangible expenses or costs | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a foreign | ||
person who is subject in a foreign country or | ||
state, other than a state which requires mandatory | ||
unitary reporting, to a tax on or measured by net | ||
income with respect to such item; or | ||
(ii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, if the taxpayer can establish, based | ||
on a preponderance of the evidence, both of the | ||
following: | ||
(a) the foreign person during the same | ||
taxable year paid, accrued, or incurred, the | ||
intangible expense or cost to a person that is | ||
not a related member, and | ||
(b) the transaction giving rise to the | ||
intangible expense or cost between the |
taxpayer and the foreign person did not have as | ||
a principal purpose the avoidance of Illinois | ||
income tax, and is paid pursuant to a contract | ||
or agreement that reflects arm's-length terms; | ||
or | ||
(iii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a foreign | ||
person if the taxpayer establishes by clear and | ||
convincing evidence, that the adjustments are | ||
unreasonable; or if the taxpayer and the Director | ||
agree in writing to the application or use of an | ||
alternative method of apportionment under Section | ||
304(f);
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for | ||
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department | ||
and such regulations provide methods and standards | ||
by which the Department will utilize its authority | ||
under Section 404 of this Act;
| ||
(G-14) For taxable years ending on or after | ||
December 31, 2008, an amount equal to the amount of | ||
insurance premium expenses and costs otherwise allowed |
as a deduction in computing base income, and that were | ||
paid, accrued, or incurred, directly or indirectly, to | ||
a person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304. The | ||
addition modification required by this subparagraph | ||
shall be reduced to the extent that dividends were | ||
included in base income of the unitary group for the | ||
same taxable year and received by the taxpayer or by a | ||
member of the taxpayer's unitary business group | ||
(including amounts included in gross income under | ||
Sections 951 through 964 of the Internal Revenue Code | ||
and amounts included in gross income under Section 78 | ||
of the Internal Revenue Code) with respect to the stock | ||
of the same person to whom the premiums intangible | ||
expenses and costs were directly or indirectly paid, | ||
incurred, or accrued. The preceding sentence does not | ||
apply to the extent that the same dividends caused a | ||
reduction to the addition modification required under | ||
Section 203(c)(2)(G-12) or Section 203(c)(2)(G-13) | ||
203(a)(2)(D-17) of this Act.
| ||
and by deducting from the total so obtained the sum of the | ||
following
amounts:
|
(H) An amount equal to all amounts included in such | ||
total pursuant
to the provisions of Sections 402(a), | ||
402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | ||
Internal Revenue Code or included in such total as
| ||
distributions under the provisions of any retirement | ||
or disability plan for
employees of any governmental | ||
agency or unit, or retirement payments to
retired | ||
partners, which payments are excluded in computing net | ||
earnings
from self employment by Section 1402 of the | ||
Internal Revenue Code and
regulations adopted pursuant | ||
thereto;
| ||
(I) The valuation limitation amount;
| ||
(J) An amount equal to the amount of any tax | ||
imposed by this Act
which was refunded to the taxpayer | ||
and included in such total for the
taxable year;
| ||
(K) An amount equal to all amounts included in | ||
taxable income as
modified by subparagraphs (A), (B), | ||
(C), (D), (E), (F) and (G) which
are exempt from | ||
taxation by this State either by reason of its statutes | ||
or
Constitution
or by reason of the Constitution, | ||
treaties or statutes of the United States;
provided | ||
that, in the case of any statute of this State or, for | ||
taxable years ending on or after December 31, 2008, of | ||
the United States, any treaty of the United States, the | ||
Illinois Constitution, or the United States | ||
Constitution that exempts income
derived from bonds or |
other obligations from the tax imposed under this Act,
| ||
the amount exempted shall be the interest income net of | ||
bond premium amortization , and, for taxable years | ||
ending on or after December 31, 2008, interest expense | ||
incurred on indebtedness to carry the bond or other | ||
obligation, expenses incurred in producing the income | ||
to be deducted, and all other related expenses. The | ||
amount of expenses to be taken into account under this | ||
provision may not exceed the amount of income that is | ||
exempted ;
| ||
(L) With the exception of any amounts subtracted | ||
under subparagraph
(K),
an amount equal to the sum of | ||
all amounts disallowed as
deductions by (i) Sections | ||
171(a) (2) and 265(a)(2) of the Internal Revenue
Code, | ||
as now or hereafter amended, and all amounts of | ||
expenses allocable
to interest and disallowed as | ||
deductions by Section 265(1) of the Internal
Revenue | ||
Code of 1954, as now or hereafter amended;
and (ii) for | ||
taxable years
ending on or after August 13, 1999, | ||
Sections
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | ||
the Internal Revenue Code; the provisions of this
| ||
subparagraph are exempt from the provisions of Section | ||
250;
| ||
(M) An amount equal to those dividends included in | ||
such total
which were paid by a corporation which | ||
conducts business operations in an
Enterprise Zone or |
zones created under the Illinois Enterprise Zone Act or | ||
a River Edge Redevelopment Zone or zones created under | ||
the River Edge Redevelopment Zone Act and
conducts | ||
substantially all of its operations in an Enterprise | ||
Zone or Zones or a River Edge Redevelopment Zone or | ||
zones. This subparagraph (M) is exempt from the | ||
provisions of Section 250;
| ||
(N) An amount equal to any contribution made to a | ||
job training
project established pursuant to the Tax | ||
Increment Allocation
Redevelopment Act;
| ||
(O) An amount equal to those dividends included in | ||
such total
that were paid by a corporation that | ||
conducts business operations in a
federally designated | ||
Foreign Trade Zone or Sub-Zone and that is designated
a | ||
High Impact Business located in Illinois; provided | ||
that dividends eligible
for the deduction provided in | ||
subparagraph (M) of paragraph (2) of this
subsection | ||
shall not be eligible for the deduction provided under | ||
this
subparagraph (O);
| ||
(P) An amount equal to the amount of the deduction | ||
used to compute the
federal income tax credit for | ||
restoration of substantial amounts held under
claim of | ||
right for the taxable year pursuant to Section 1341 of | ||
the
Internal Revenue Code of 1986;
| ||
(Q) For taxable year 1999 and thereafter, an amount | ||
equal to the
amount of any
(i) distributions, to the |
extent includible in gross income for
federal income | ||
tax purposes, made to the taxpayer because of
his or | ||
her status as a victim of
persecution for racial or | ||
religious reasons by Nazi Germany or any other Axis
| ||
regime or as an heir of the victim and (ii) items
of | ||
income, to the extent
includible in gross income for | ||
federal income tax purposes, attributable to,
derived | ||
from or in any way related to assets stolen from, | ||
hidden from, or
otherwise lost to a victim of
| ||
persecution for racial or religious reasons by Nazi
| ||
Germany or any other Axis regime
immediately prior to, | ||
during, and immediately after World War II, including,
| ||
but
not limited to, interest on the proceeds receivable | ||
as insurance
under policies issued to a victim of | ||
persecution for racial or religious
reasons by Nazi | ||
Germany or any other Axis regime by European insurance
| ||
companies
immediately prior to and during World War II;
| ||
provided, however, this subtraction from federal | ||
adjusted gross income does not
apply to assets acquired | ||
with such assets or with the proceeds from the sale of
| ||
such assets; provided, further, this paragraph shall | ||
only apply to a taxpayer
who was the first recipient of | ||
such assets after their recovery and who is a
victim of
| ||
persecution for racial or religious reasons
by Nazi | ||
Germany or any other Axis regime or as an heir of the | ||
victim. The
amount of and the eligibility for any |
public assistance, benefit, or
similar entitlement is | ||
not affected by the inclusion of items (i) and (ii) of
| ||
this paragraph in gross income for federal income tax | ||
purposes.
This paragraph is exempt from the provisions | ||
of Section 250;
| ||
(R) For taxable years 2001 and thereafter, for the | ||
taxable year in
which the bonus depreciation deduction
| ||
is taken on the taxpayer's federal income tax return | ||
under
subsection (k) of Section 168 of the Internal | ||
Revenue Code and for each
applicable taxable year | ||
thereafter, an amount equal to "x", where:
| ||
(1) "y" equals the amount of the depreciation | ||
deduction taken for the
taxable year
on the | ||
taxpayer's federal income tax return on property | ||
for which the bonus
depreciation deduction
was | ||
taken in any year under subsection (k) of Section | ||
168 of the Internal
Revenue Code, but not including | ||
the bonus depreciation deduction;
| ||
(2) for taxable years ending on or before | ||
December 31, 2005, "x" equals "y" multiplied by 30 | ||
and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(3) for taxable years ending after December | ||
31, 2005: | ||
(i) for property on which a bonus | ||
depreciation deduction of 30% of the adjusted |
basis was taken, "x" equals "y" multiplied by | ||
30 and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(ii) for property on which a bonus | ||
depreciation deduction of 50% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
1.0.
| ||
The aggregate amount deducted under this | ||
subparagraph in all taxable
years for any one piece of | ||
property may not exceed the amount of the bonus
| ||
depreciation deduction
taken on that property on the | ||
taxpayer's federal income tax return under
subsection | ||
(k) of Section 168 of the Internal Revenue Code. This | ||
subparagraph (R) is exempt from the provisions of | ||
Section 250;
| ||
(S) If the taxpayer sells, transfers, abandons, or | ||
otherwise disposes of
property for which the taxpayer | ||
was required in any taxable year to make an
addition | ||
modification under subparagraph (G-10), then an amount | ||
equal to that
addition modification.
| ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the | ||
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was required in any taxable year to make an addition | ||
modification under subparagraph (G-10), then an amount |
equal to that addition modification.
| ||
The taxpayer is allowed to take the deduction under | ||
this subparagraph
only once with respect to any one | ||
piece of property. | ||
This subparagraph (S) is exempt from the | ||
provisions of Section 250;
| ||
(T) The amount of (i) any interest income (net of | ||
the deductions allocable thereto) taken into account | ||
for the taxable year with respect to a transaction with | ||
a taxpayer that is required to make an addition | ||
modification with respect to such transaction under | ||
Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||
the amount of such addition modification and
(ii) any | ||
income from intangible property (net of the deductions | ||
allocable thereto) taken into account for the taxable | ||
year with respect to a transaction with a taxpayer that | ||
is required to make an addition modification with | ||
respect to such transaction under Section | ||
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||
203(d)(2)(D-8), but not to exceed the amount of such | ||
addition modification . This subparagraph (T) is exempt | ||
from the provisions of Section 250 ;
| ||
(U) An amount equal to the interest income taken | ||
into account for the taxable year (net of the | ||
deductions allocable thereto) with respect to |
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact the foreign person's business activity | ||
outside the United States is 80% or more of that | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(c)(2)(G-12) for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, to the same person . This subparagraph (U) | ||
is exempt from the provisions of Section 250 ; and | ||
(V) An amount equal to the income from intangible | ||
property taken into account for the taxable year (net | ||
of the deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact that the foreign person's business activity | ||
outside the United States is 80% or more of that | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person |
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304 , but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(c)(2)(G-13) for | ||
intangible expenses and costs paid, accrued, or | ||
incurred, directly or indirectly, to the same foreign | ||
person . This subparagraph (V) is exempt from the | ||
provisions of Section 250. ; and
| ||
(FF) An amount equal to the income from insurance | ||
premiums taken into account for the taxable year (net | ||
of the deductions allocable thereto) with respect to | ||
transactions with a person who would be a member of the | ||
same unitary business group but for the fact that the | ||
person is prohibited under Section 1501(a)(27) from | ||
being included in the unitary business group because he | ||
or she is ordinarily required to apportion business | ||
income under different subsections of Section 304, but | ||
not to exceed the addition modification required to be | ||
made for the same taxable year under Section | ||
203(a)(2)(D-18) for intangible expenses and costs | ||
paid, accrued, or incurred, directly or indirectly, to | ||
the same person.
|
(3) Limitation. The amount of any modification | ||
otherwise required
under this subsection shall, under | ||
regulations prescribed by the
Department, be adjusted by | ||
any amounts included therein which were
properly paid, | ||
credited, or required to be distributed, or permanently set
| ||
aside for charitable purposes pursuant to Internal Revenue | ||
Code Section
642(c) during the taxable year.
| ||
(d) Partnerships.
| ||
(1) In general. In the case of a partnership, base | ||
income means an
amount equal to the taxpayer's taxable | ||
income for the taxable year as
modified by paragraph (2).
| ||
(2) Modifications. The taxable income referred to in | ||
paragraph (1)
shall be modified by adding thereto the sum | ||
of the following amounts:
| ||
(A) An amount equal to all amounts paid or accrued | ||
to the taxpayer as
interest or dividends during the | ||
taxable year to the extent excluded from
gross income | ||
in the computation of taxable income;
| ||
(B) An amount equal to the amount of tax imposed by | ||
this Act to the
extent deducted from gross income for | ||
the taxable year;
| ||
(C) The amount of deductions allowed to the | ||
partnership pursuant to
Section 707 (c) of the Internal | ||
Revenue Code in calculating its taxable income;
| ||
(D) An amount equal to the amount of the capital |
gain deduction
allowable under the Internal Revenue | ||
Code, to the extent deducted from
gross income in the | ||
computation of taxable income;
| ||
(D-5) For taxable years 2001 and thereafter, an | ||
amount equal to the
bonus depreciation deduction taken | ||
on the taxpayer's federal income tax return for the | ||
taxable
year under subsection (k) of Section 168 of the | ||
Internal Revenue Code;
| ||
(D-6) If the taxpayer sells, transfers, abandons, | ||
or otherwise disposes of
property for which the | ||
taxpayer was required in any taxable year to make an
| ||
addition modification under subparagraph (D-5), then | ||
an amount equal to the
aggregate amount of the | ||
deductions taken in all taxable years
under | ||
subparagraph (O) with respect to that property.
| ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the | ||
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was allowed in any taxable year to make a subtraction | ||
modification under subparagraph (O), then an amount | ||
equal to that subtraction modification.
| ||
The taxpayer is required to make the addition | ||
modification under this
subparagraph
only once with | ||
respect to any one piece of property;
| ||
(D-7) An amount equal to the amount otherwise |
allowed as a deduction in computing base income for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, (i) for taxable years ending on or after | ||
December 31, 2004, to a foreign person who would be a | ||
member of the same unitary business group but for the | ||
fact the foreign person's business activity outside | ||
the United States is 80% or more of the foreign | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304. The addition modification | ||
required by this subparagraph shall be reduced to the | ||
extent that dividends were included in base income of | ||
the unitary group for the same taxable year and | ||
received by the taxpayer or by a member of the | ||
taxpayer's unitary business group (including amounts | ||
included in gross income pursuant to Sections 951 | ||
through 964 of the Internal Revenue Code and amounts | ||
included in gross income under Section 78 of the | ||
Internal Revenue Code) with respect to the stock of the | ||
same person to whom the interest was paid, accrued, or | ||
incurred.
|
This paragraph shall not apply to the following:
| ||
(i) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a foreign | ||
person who is subject in a foreign country or | ||
state, other than a state which requires mandatory | ||
unitary reporting, to a tax on or measured by net | ||
income with respect to such interest; or | ||
(ii) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a foreign | ||
person if the taxpayer can establish, based on a | ||
preponderance of the evidence, both of the | ||
following: | ||
(a) the foreign person, during the same | ||
taxable year, paid, accrued, or incurred, the | ||
interest to a person that is not a related | ||
member, and | ||
(b) the transaction giving rise to the | ||
interest expense between the taxpayer and the | ||
foreign person did not have as a principal | ||
purpose the avoidance of Illinois income tax, | ||
and is paid pursuant to a contract or agreement | ||
that reflects an arm's-length interest rate | ||
and terms; or
| ||
(iii) the taxpayer can establish, based on | ||
clear and convincing evidence, that the interest | ||
paid, accrued, or incurred relates to a contract or |
agreement entered into at arm's-length rates and | ||
terms and the principal purpose for the payment is | ||
not federal or Illinois tax avoidance; or
| ||
(iv) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a foreign | ||
person if the taxpayer establishes by clear and | ||
convincing evidence that the adjustments are | ||
unreasonable; or if the taxpayer and the Director | ||
agree in writing to the application or use of an | ||
alternative method of apportionment under Section | ||
304(f).
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for | ||
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department | ||
and such regulations provide methods and standards | ||
by which the Department will utilize its authority | ||
under Section 404 of this Act; and
| ||
(D-8) An amount equal to the amount of intangible | ||
expenses and costs otherwise allowed as a deduction in | ||
computing base income, and that were paid, accrued, or | ||
incurred, directly or indirectly, (i) for taxable | ||
years ending on or after December 31, 2004, to a | ||
foreign person who would be a member of the same |
unitary business group but for the fact that the | ||
foreign person's business activity outside the United | ||
States is 80% or more of that person's total business | ||
activity and (ii) for taxable years ending on or after | ||
December 31, 2008, to a person who would be a member of | ||
the same unitary business group but for the fact that | ||
the person is prohibited under Section 1501(a)(27) | ||
from being included in the unitary business group | ||
because he or she is ordinarily required to apportion | ||
business income under different subsections of Section | ||
304. The addition modification required by this | ||
subparagraph shall be reduced to the extent that | ||
dividends were included in base income of the unitary | ||
group for the same taxable year and received by the | ||
taxpayer or by a member of the taxpayer's unitary | ||
business group (including amounts included in gross | ||
income pursuant to Sections 951 through 964 of the | ||
Internal Revenue Code and amounts included in gross | ||
income under Section 78 of the Internal Revenue Code) | ||
with respect to the stock of the same person to whom | ||
the intangible expenses and costs were directly or | ||
indirectly paid, incurred or accrued. The preceding | ||
sentence shall not apply to the extent that the same | ||
dividends caused a reduction to the addition | ||
modification required under Section 203(d)(2)(D-7) of | ||
this Act. As used in this subparagraph, the term |
"intangible expenses and costs" includes (1) expenses, | ||
losses, and costs for, or related to, the direct or | ||
indirect acquisition, use, maintenance or management, | ||
ownership, sale, exchange, or any other disposition of | ||
intangible property; (2) losses incurred, directly or | ||
indirectly, from factoring transactions or discounting | ||
transactions; (3) royalty, patent, technical, and | ||
copyright fees; (4) licensing fees; and (5) other | ||
similar expenses and costs. For purposes of this | ||
subparagraph, "intangible property" includes patents, | ||
patent applications, trade names, trademarks, service | ||
marks, copyrights, mask works, trade secrets, and | ||
similar types of intangible assets; | ||
This paragraph shall not apply to the following: | ||
(i) any item of intangible expenses or costs | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a foreign | ||
person who is subject in a foreign country or | ||
state, other than a state which requires mandatory | ||
unitary reporting, to a tax on or measured by net | ||
income with respect to such item; or | ||
(ii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, if the taxpayer can establish, based | ||
on a preponderance of the evidence, both of the | ||
following: |
(a) the foreign person during the same | ||
taxable year paid, accrued, or incurred, the | ||
intangible expense or cost to a person that is | ||
not a related member, and | ||
(b) the transaction giving rise to the | ||
intangible expense or cost between the | ||
taxpayer and the foreign person did not have as | ||
a principal purpose the avoidance of Illinois | ||
income tax, and is paid pursuant to a contract | ||
or agreement that reflects arm's-length terms; | ||
or | ||
(iii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a foreign | ||
person if the taxpayer establishes by clear and | ||
convincing evidence, that the adjustments are | ||
unreasonable; or if the taxpayer and the Director | ||
agree in writing to the application or use of an | ||
alternative method of apportionment under Section | ||
304(f);
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act for | ||
any tax year beginning after the effective date of | ||
this amendment provided such adjustment is made | ||
pursuant to regulation adopted by the Department |
and such regulations provide methods and standards | ||
by which the Department will utilize its authority | ||
under Section 404 of this Act;
| ||
(D-9) For taxable years ending on or after December | ||
31, 2008, an amount equal to the amount of insurance | ||
premium expenses and costs otherwise allowed as a | ||
deduction in computing base income, and that were paid, | ||
accrued, or incurred, directly or indirectly, to a | ||
person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304. The | ||
addition modification required by this subparagraph | ||
shall be reduced to the extent that dividends were | ||
included in base income of the unitary group for the | ||
same taxable year and received by the taxpayer or by a | ||
member of the taxpayer's unitary business group | ||
(including amounts included in gross income under | ||
Sections 951 through 964 of the Internal Revenue Code | ||
and amounts included in gross income under Section 78 | ||
of the Internal Revenue Code) with respect to the stock | ||
of the same person to whom the premiums intangible | ||
expenses and costs were directly or indirectly paid, | ||
incurred, or accrued. The preceding sentence does not |
apply to the extent that the same dividends caused a | ||
reduction to the addition modification required under | ||
Section 203(d)(2)(D-7) or Section 203(d)(2)(D-8) | ||
203(a)(2)(D-17) of this Act.
| ||
and by deducting from the total so obtained the following | ||
amounts:
| ||
(E) The valuation limitation amount;
| ||
(F) An amount equal to the amount of any tax | ||
imposed by this Act which
was refunded to the taxpayer | ||
and included in such total for the taxable year;
| ||
(G) An amount equal to all amounts included in | ||
taxable income as
modified by subparagraphs (A), (B), | ||
(C) and (D) which are exempt from
taxation by this | ||
State either by reason of its statutes or Constitution | ||
or
by reason of
the Constitution, treaties or statutes | ||
of the United States;
provided that, in the case of any | ||
statute of this State or, for taxable years ending on | ||
or after December 31, 2008, of the United States, any | ||
treaty of the United States, the Illinois | ||
Constitution, or the United States Constitution that | ||
exempts income
derived from bonds or other obligations | ||
from the tax imposed under this Act,
the amount | ||
exempted shall be the interest income net of bond | ||
premium amortization , and, for taxable years ending on | ||
or after December 31, 2008, interest expense incurred | ||
on indebtedness to carry the bond or other obligation, |
expenses incurred in producing the income to be | ||
deducted, and all other related expenses. The amount of | ||
expenses to be taken into account under this provision | ||
may not exceed the amount of income that is exempted ;
| ||
(H) Any income of the partnership which | ||
constitutes personal service
income as defined in | ||
Section 1348 (b) (1) of the Internal Revenue Code (as
| ||
in effect December 31, 1981) or a reasonable allowance | ||
for compensation
paid or accrued for services rendered | ||
by partners to the partnership,
whichever is greater;
| ||
(I) An amount equal to all amounts of income | ||
distributable to an entity
subject to the Personal | ||
Property Tax Replacement Income Tax imposed by
| ||
subsections (c) and (d) of Section 201 of this Act | ||
including amounts
distributable to organizations | ||
exempt from federal income tax by reason of
Section | ||
501(a) of the Internal Revenue Code;
| ||
(J) With the exception of any amounts subtracted | ||
under subparagraph
(G),
an amount equal to the sum of | ||
all amounts disallowed as deductions
by (i) Sections | ||
171(a) (2), and 265(2) of the Internal Revenue Code of | ||
1954,
as now or hereafter amended, and all amounts of | ||
expenses allocable to
interest and disallowed as | ||
deductions by Section 265(1) of the Internal
Revenue | ||
Code, as now or hereafter amended;
and (ii) for taxable | ||
years
ending on or after August 13, 1999, Sections
|
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the | ||
Internal Revenue Code; the provisions of this
| ||
subparagraph are exempt from the provisions of Section | ||
250;
| ||
(K) An amount equal to those dividends included in | ||
such total which were
paid by a corporation which | ||
conducts business operations in an Enterprise
Zone or | ||
zones created under the Illinois Enterprise Zone Act, | ||
enacted by
the 82nd General Assembly, or a River Edge | ||
Redevelopment Zone or zones created under the River | ||
Edge Redevelopment Zone Act and
conducts substantially | ||
all of its operations
in an Enterprise Zone or Zones or | ||
from a River Edge Redevelopment Zone or zones. This | ||
subparagraph (K) is exempt from the provisions of | ||
Section 250;
| ||
(L) An amount equal to any contribution made to a | ||
job training project
established pursuant to the Real | ||
Property Tax Increment Allocation
Redevelopment Act;
| ||
(M) An amount equal to those dividends included in | ||
such total
that were paid by a corporation that | ||
conducts business operations in a
federally designated | ||
Foreign Trade Zone or Sub-Zone and that is designated a
| ||
High Impact Business located in Illinois; provided | ||
that dividends eligible
for the deduction provided in | ||
subparagraph (K) of paragraph (2) of this
subsection | ||
shall not be eligible for the deduction provided under |
this
subparagraph (M);
| ||
(N) An amount equal to the amount of the deduction | ||
used to compute the
federal income tax credit for | ||
restoration of substantial amounts held under
claim of | ||
right for the taxable year pursuant to Section 1341 of | ||
the
Internal Revenue Code of 1986;
| ||
(O) For taxable years 2001 and thereafter, for the | ||
taxable year in
which the bonus depreciation deduction
| ||
is taken on the taxpayer's federal income tax return | ||
under
subsection (k) of Section 168 of the Internal | ||
Revenue Code and for each
applicable taxable year | ||
thereafter, an amount equal to "x", where:
| ||
(1) "y" equals the amount of the depreciation | ||
deduction taken for the
taxable year
on the | ||
taxpayer's federal income tax return on property | ||
for which the bonus
depreciation deduction
was | ||
taken in any year under subsection (k) of Section | ||
168 of the Internal
Revenue Code, but not including | ||
the bonus depreciation deduction;
| ||
(2) for taxable years ending on or before | ||
December 31, 2005, "x" equals "y" multiplied by 30 | ||
and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(3) for taxable years ending after December | ||
31, 2005: | ||
(i) for property on which a bonus |
depreciation deduction of 30% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
30 and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(ii) for property on which a bonus | ||
depreciation deduction of 50% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
1.0.
| ||
The aggregate amount deducted under this | ||
subparagraph in all taxable
years for any one piece of | ||
property may not exceed the amount of the bonus
| ||
depreciation deduction
taken on that property on the | ||
taxpayer's federal income tax return under
subsection | ||
(k) of Section 168 of the Internal Revenue Code. This | ||
subparagraph (O) is exempt from the provisions of | ||
Section 250;
| ||
(P) If the taxpayer sells, transfers, abandons, or | ||
otherwise disposes of
property for which the taxpayer | ||
was required in any taxable year to make an
addition | ||
modification under subparagraph (D-5), then an amount | ||
equal to that
addition modification.
| ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which the | ||
taxpayer may claim a depreciation deduction for | ||
federal income tax purposes and for which the taxpayer | ||
was required in any taxable year to make an addition |
modification under subparagraph (D-5), then an amount | ||
equal to that addition modification.
| ||
The taxpayer is allowed to take the deduction under | ||
this subparagraph
only once with respect to any one | ||
piece of property. | ||
This subparagraph (P) is exempt from the | ||
provisions of Section 250;
| ||
(Q) The amount of (i) any interest income (net of | ||
the deductions allocable thereto) taken into account | ||
for the taxable year with respect to a transaction with | ||
a taxpayer that is required to make an addition | ||
modification with respect to such transaction under | ||
Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||
the amount of such addition modification and
(ii) any | ||
income from intangible property (net of the deductions | ||
allocable thereto) taken into account for the taxable | ||
year with respect to a transaction with a taxpayer that | ||
is required to make an addition modification with | ||
respect to such transaction under Section | ||
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||
203(d)(2)(D-8), but not to exceed the amount of such | ||
addition modification . This subparagraph (Q) is exempt | ||
from Section 250 ;
| ||
(R) An amount equal to the interest income taken | ||
into account for the taxable year (net of the |
deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact that the foreign person's business activity | ||
outside the United States is 80% or more of that | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(d)(2)(D-7) for interest | ||
paid, accrued, or incurred, directly or indirectly, to | ||
the same person . This subparagraph (R) is exempt from | ||
Section 250 ; and | ||
(S) An amount equal to the income from intangible | ||
property taken into account for the taxable year (net | ||
of the deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but for | ||
the fact that the foreign person's business activity | ||
outside the United States is 80% or more of that | ||
person's total business activity and (ii) for taxable |
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(d)(2)(D-8) for | ||
intangible expenses and costs paid, accrued, or | ||
incurred, directly or indirectly, to the same foreign | ||
person . This subparagraph (S) is exempt from Section | ||
250. ; and
| ||
(FF) An amount equal to the income from insurance | ||
premiums taken into account for the taxable year (net | ||
of the deductions allocable thereto) with respect to | ||
transactions with a person who would be a member of the | ||
same unitary business group but for the fact that the | ||
person is prohibited under Section 1501(a)(27) from | ||
being included in the unitary business group because he | ||
or she is ordinarily required to apportion business | ||
income under different subsections of Section 304, but | ||
not to exceed the addition modification required to be | ||
made for the same taxable year under Section | ||
203(a)(2)(D-18) for intangible expenses and costs | ||
paid, accrued, or incurred, directly or indirectly, to |
the same person.
| ||
(e) Gross income; adjusted gross income; taxable income.
| ||
(1) In general. Subject to the provisions of paragraph | ||
(2) and
subsection (b) (3), for purposes of this Section | ||
and Section 803(e), a
taxpayer's gross income, adjusted | ||
gross income, or taxable income for
the taxable year shall | ||
mean the amount of gross income, adjusted gross
income or | ||
taxable income properly reportable for federal income tax
| ||
purposes for the taxable year under the provisions of the | ||
Internal
Revenue Code. Taxable income may be less than | ||
zero. However, for taxable
years ending on or after | ||
December 31, 1986, net operating loss
carryforwards from | ||
taxable years ending prior to December 31, 1986, may not
| ||
exceed the sum of federal taxable income for the taxable | ||
year before net
operating loss deduction, plus the excess | ||
of addition modifications over
subtraction modifications | ||
for the taxable year. For taxable years ending
prior to | ||
December 31, 1986, taxable income may never be an amount in | ||
excess
of the net operating loss for the taxable year as | ||
defined in subsections
(c) and (d) of Section 172 of the | ||
Internal Revenue Code, provided that when
taxable income of | ||
a corporation (other than a Subchapter S corporation),
| ||
trust, or estate is less than zero and addition | ||
modifications, other than
those provided by subparagraph | ||
(E) of paragraph (2) of subsection (b) for
corporations or |
subparagraph (E) of paragraph (2) of subsection (c) for
| ||
trusts and estates, exceed subtraction modifications, an | ||
addition
modification must be made under those | ||
subparagraphs for any other taxable
year to which the | ||
taxable income less than zero (net operating loss) is
| ||
applied under Section 172 of the Internal Revenue Code or | ||
under
subparagraph (E) of paragraph (2) of this subsection | ||
(e) applied in
conjunction with Section 172 of the Internal | ||
Revenue Code.
| ||
(2) Special rule. For purposes of paragraph (1) of this | ||
subsection,
the taxable income properly reportable for | ||
federal income tax purposes
shall mean:
| ||
(A) Certain life insurance companies. In the case | ||
of a life
insurance company subject to the tax imposed | ||
by Section 801 of the
Internal Revenue Code, life | ||
insurance company taxable income, plus the
amount of | ||
distribution from pre-1984 policyholder surplus | ||
accounts as
calculated under Section 815a of the | ||
Internal Revenue Code;
| ||
(B) Certain other insurance companies. In the case | ||
of mutual
insurance companies subject to the tax | ||
imposed by Section 831 of the
Internal Revenue Code, | ||
insurance company taxable income;
| ||
(C) Regulated investment companies. In the case of | ||
a regulated
investment company subject to the tax | ||
imposed by Section 852 of the
Internal Revenue Code, |
investment company taxable income;
| ||
(D) Real estate investment trusts. In the case of a | ||
real estate
investment trust subject to the tax imposed | ||
by Section 857 of the
Internal Revenue Code, real | ||
estate investment trust taxable income;
| ||
(E) Consolidated corporations. In the case of a | ||
corporation which
is a member of an affiliated group of | ||
corporations filing a consolidated
income tax return | ||
for the taxable year for federal income tax purposes,
| ||
taxable income determined as if such corporation had | ||
filed a separate
return for federal income tax purposes | ||
for the taxable year and each
preceding taxable year | ||
for which it was a member of an affiliated group.
For | ||
purposes of this subparagraph, the taxpayer's separate | ||
taxable
income shall be determined as if the election | ||
provided by Section
243(b) (2) of the Internal Revenue | ||
Code had been in effect for all such years;
| ||
(F) Cooperatives. In the case of a cooperative | ||
corporation or
association, the taxable income of such | ||
organization determined in
accordance with the | ||
provisions of Section 1381 through 1388 of the
Internal | ||
Revenue Code;
| ||
(G) Subchapter S corporations. In the case of: (i) | ||
a Subchapter S
corporation for which there is in effect | ||
an election for the taxable year
under Section 1362 of | ||
the Internal Revenue Code, the taxable income of such
|
corporation determined in accordance with Section | ||
1363(b) of the Internal
Revenue Code, except that | ||
taxable income shall take into
account those items | ||
which are required by Section 1363(b)(1) of the
| ||
Internal Revenue Code to be separately stated; and (ii) | ||
a Subchapter
S corporation for which there is in effect | ||
a federal election to opt out of
the provisions of the | ||
Subchapter S Revision Act of 1982 and have applied
| ||
instead the prior federal Subchapter S rules as in | ||
effect on July 1, 1982,
the taxable income of such | ||
corporation determined in accordance with the
federal | ||
Subchapter S rules as in effect on July 1, 1982; and
| ||
(H) Partnerships. In the case of a partnership, | ||
taxable income
determined in accordance with Section | ||
703 of the Internal Revenue Code,
except that taxable | ||
income shall take into account those items which are
| ||
required by Section 703(a)(1) to be separately stated | ||
but which would be
taken into account by an individual | ||
in calculating his taxable income.
| ||
(3) Recapture of business expenses on disposition of | ||
asset or business. Notwithstanding any other law to the | ||
contrary, if in prior years income from an asset or | ||
business has been classified as business income and in a | ||
later year is demonstrated to be non-business income, then | ||
all expenses, without limitation, deducted in such later | ||
year and in the 2 immediately preceding taxable years |
related to that asset or business that generated the | ||
non-business income shall be added back and recaptured as | ||
business income in the year of the disposition of the asset | ||
or business. Such amount shall be apportioned to Illinois | ||
using the greater of the apportionment fraction computed | ||
for the business under Section 304 of this Act for the | ||
taxable year or the average of the apportionment fractions | ||
computed for the business under Section 304 of this Act for | ||
the taxable year and for the 2 immediately preceding | ||
taxable years.
| ||
(f) Valuation limitation amount.
| ||
(1) In general. The valuation limitation amount | ||
referred to in
subsections (a) (2) (G), (c) (2) (I) and | ||
(d)(2) (E) is an amount equal to:
| ||
(A) The sum of the pre-August 1, 1969 appreciation | ||
amounts (to the
extent consisting of gain reportable | ||
under the provisions of Section
1245 or 1250 of the | ||
Internal Revenue Code) for all property in respect
of | ||
which such gain was reported for the taxable year; plus
| ||
(B) The lesser of (i) the sum of the pre-August 1, | ||
1969 appreciation
amounts (to the extent consisting of | ||
capital gain) for all property in
respect of which such | ||
gain was reported for federal income tax purposes
for | ||
the taxable year, or (ii) the net capital gain for the | ||
taxable year,
reduced in either case by any amount of | ||
such gain included in the amount
determined under |
subsection (a) (2) (F) or (c) (2) (H).
| ||
(2) Pre-August 1, 1969 appreciation amount.
| ||
(A) If the fair market value of property referred | ||
to in paragraph
(1) was readily ascertainable on August | ||
1, 1969, the pre-August 1, 1969
appreciation amount for | ||
such property is the lesser of (i) the excess of
such | ||
fair market value over the taxpayer's basis (for | ||
determining gain)
for such property on that date | ||
(determined under the Internal Revenue
Code as in | ||
effect on that date), or (ii) the total gain realized | ||
and
reportable for federal income tax purposes in | ||
respect of the sale,
exchange or other disposition of | ||
such property.
| ||
(B) If the fair market value of property referred | ||
to in paragraph
(1) was not readily ascertainable on | ||
August 1, 1969, the pre-August 1,
1969 appreciation | ||
amount for such property is that amount which bears
the | ||
same ratio to the total gain reported in respect of the | ||
property for
federal income tax purposes for the | ||
taxable year, as the number of full
calendar months in | ||
that part of the taxpayer's holding period for the
| ||
property ending July 31, 1969 bears to the number of | ||
full calendar
months in the taxpayer's entire holding | ||
period for the
property.
| ||
(C) The Department shall prescribe such | ||
regulations as may be
necessary to carry out the |
purposes of this paragraph.
| ||
(g) Double deductions. Unless specifically provided | ||
otherwise, nothing
in this Section shall permit the same item | ||
to be deducted more than once.
| ||
(h) Legislative intention. Except as expressly provided by | ||
this
Section there shall be no modifications or limitations on | ||
the amounts
of income, gain, loss or deduction taken into | ||
account in determining
gross income, adjusted gross income or | ||
taxable income for federal income
tax purposes for the taxable | ||
year, or in the amount of such items
entering into the | ||
computation of base income and net income under this
Act for | ||
such taxable year, whether in respect of property values as of
| ||
August 1, 1969 or otherwise.
| ||
(Source: P.A. 94-776, eff. 5-19-06; 94-789, eff. 5-19-06; | ||
94-1021, eff. 7-12-06; 94-1074, eff. 12-26-06; 95-23, eff. | ||
8-3-07; 95-233, eff. 8-16-07; 95-286, eff. 8-20-07; 95-331, | ||
eff. 8-21-07; revised 10-31-07.)
| ||
(35 ILCS 5/304) (from Ch. 120, par. 3-304)
| ||
Sec. 304. Business income of persons other than residents.
| ||
(a) In general. The business income of a person other than | ||
a
resident shall be allocated to this State if such person's | ||
business
income is derived solely from this State. If a person | ||
other than a
resident derives business income from this State |
and one or more other
states, then, for tax years ending on or | ||
before December 30, 1998, and
except as otherwise provided by | ||
this Section, such
person's business income shall be | ||
apportioned to this State by
multiplying the income by a | ||
fraction, the numerator of which is the sum
of the property | ||
factor (if any), the payroll factor (if any) and 200% of the
| ||
sales factor (if any), and the denominator of which is 4 | ||
reduced by the
number of factors other than the sales factor | ||
which have a denominator
of zero and by an additional 2 if the | ||
sales factor has a denominator of zero.
For tax years ending on | ||
or after December 31, 1998, and except as otherwise
provided by | ||
this Section, persons other than
residents who derive business | ||
income from this State and one or more other
states shall | ||
compute their apportionment factor by weighting their | ||
property,
payroll, and sales factors as provided in
subsection | ||
(h) of this Section.
| ||
(1) Property factor.
| ||
(A) The property factor is a fraction, the numerator of | ||
which is the
average value of the person's real and | ||
tangible personal property owned
or rented and used in the | ||
trade or business in this State during the
taxable year and | ||
the denominator of which is the average value of all
the | ||
person's real and tangible personal property owned or | ||
rented and
used in the trade or business during the taxable | ||
year.
| ||
(B) Property owned by the person is valued at its |
original cost.
Property rented by the person is valued at 8 | ||
times the net annual rental
rate. Net annual rental rate is | ||
the annual rental rate paid by the
person less any annual | ||
rental rate received by the person from
sub-rentals.
| ||
(C) The average value of property shall be determined | ||
by averaging
the values at the beginning and ending of the | ||
taxable year but the
Director may require the averaging of | ||
monthly values during the taxable
year if reasonably | ||
required to reflect properly the average value of the
| ||
person's property.
| ||
(2) Payroll factor.
| ||
(A) The payroll factor is a fraction, the numerator of | ||
which is the
total amount paid in this State during the | ||
taxable year by the person
for compensation, and the | ||
denominator of which is the total compensation
paid | ||
everywhere during the taxable year.
| ||
(B) Compensation is paid in this State if:
| ||
(i) The individual's service is performed entirely | ||
within this
State;
| ||
(ii) The individual's service is performed both | ||
within and without
this State, but the service | ||
performed without this State is incidental
to the | ||
individual's service performed within this State; or
| ||
(iii) Some of the service is performed within this | ||
State and either
the base of operations, or if there is | ||
no base of operations, the place
from which the service |
is directed or controlled is within this State,
or the | ||
base of operations or the place from which the service | ||
is
directed or controlled is not in any state in which | ||
some part of the
service is performed, but the | ||
individual's residence is in this State.
| ||
(iv) Compensation paid to nonresident professional | ||
athletes. | ||
(a) General. The Illinois source income of a | ||
nonresident individual who is a member of a | ||
professional athletic team includes the portion of the | ||
individual's total compensation for services performed | ||
as a member of a professional athletic team during the | ||
taxable year which the number of duty days spent within | ||
this State performing services for the team in any | ||
manner during the taxable year bears to the total | ||
number of duty days spent both within and without this | ||
State during the taxable year. | ||
(b) Travel days. Travel days that do not involve | ||
either a game, practice, team meeting, or other similar | ||
team event are not considered duty days spent in this | ||
State. However, such travel days are considered in the | ||
total duty days spent both within and without this | ||
State. | ||
(c) Definitions. For purposes of this subpart | ||
(iv): | ||
(1) The term "professional athletic team" |
includes, but is not limited to, any professional | ||
baseball, basketball, football, soccer, or hockey | ||
team. | ||
(2) The term "member of a professional | ||
athletic team" includes those employees who are | ||
active players, players on the disabled list, and | ||
any other persons required to travel and who travel | ||
with and perform services on behalf of a | ||
professional athletic team on a regular basis. | ||
This includes, but is not limited to, coaches, | ||
managers, and trainers. | ||
(3) Except as provided in items (C) and (D) of | ||
this subpart (3), the term "duty days" means all | ||
days during the taxable year from the beginning of | ||
the professional athletic team's official | ||
pre-season training period through the last game | ||
in which the team competes or is scheduled to | ||
compete. Duty days shall be counted for the year in | ||
which they occur, including where a team's | ||
official pre-season training period through the | ||
last game in which the team competes or is | ||
scheduled to compete, occurs during more than one | ||
tax year. | ||
(A) Duty days shall also include days on | ||
which a member of a professional athletic team | ||
performs service for a team on a date that does |
not fall within the foregoing period (e.g., | ||
participation in instructional leagues, the | ||
"All Star Game", or promotional "caravans"). | ||
Performing a service for a professional | ||
athletic team includes conducting training and | ||
rehabilitation activities, when such | ||
activities are conducted at team facilities. | ||
(B) Also included in duty days are game | ||
days, practice days, days spent at team | ||
meetings, promotional caravans, preseason | ||
training camps, and days served with the team | ||
through all post-season games in which the team | ||
competes or is scheduled to compete. | ||
(C) Duty days for any person who joins a | ||
team during the period from the beginning of | ||
the professional athletic team's official | ||
pre-season training period through the last | ||
game in which the team competes, or is | ||
scheduled to compete, shall begin on the day | ||
that person joins the team. Conversely, duty | ||
days for any person who leaves a team during | ||
this period shall end on the day that person | ||
leaves the team. Where a person switches teams | ||
during a taxable year, a separate duty-day | ||
calculation shall be made for the period the | ||
person was with each team. |
(D) Days for which a member of a | ||
professional athletic team is not compensated | ||
and is not performing services for the team in | ||
any manner, including days when such member of | ||
a professional athletic team has been | ||
suspended without pay and prohibited from | ||
performing any services for the team, shall not | ||
be treated as duty days. | ||
(E) Days for which a member of a | ||
professional athletic team is on the disabled | ||
list and does not conduct rehabilitation | ||
activities at facilities of the team, and is | ||
not otherwise performing services for the team | ||
in Illinois, shall not be considered duty days | ||
spent in this State. All days on the disabled | ||
list, however, are considered to be included in | ||
total duty days spent both within and without | ||
this State. | ||
(4) The term "total compensation for services | ||
performed as a member of a professional athletic | ||
team" means the total compensation received during | ||
the taxable year for services performed: | ||
(A) from the beginning of the official | ||
pre-season training period through the last | ||
game in which the team competes or is scheduled | ||
to compete during that taxable year; and |
(B) during the taxable year on a date which | ||
does not fall within the foregoing period | ||
(e.g., participation in instructional leagues, | ||
the "All Star Game", or promotional caravans). | ||
This compensation shall include, but is not | ||
limited to, salaries, wages, bonuses as described | ||
in this subpart, and any other type of compensation | ||
paid during the taxable year to a member of a | ||
professional athletic team for services performed | ||
in that year. This compensation does not include | ||
strike benefits, severance pay, termination pay, | ||
contract or option year buy-out payments, | ||
expansion or relocation payments, or any other | ||
payments not related to services performed for the | ||
team. | ||
For purposes of this subparagraph, "bonuses" | ||
included in "total compensation for services | ||
performed as a member of a professional athletic | ||
team" subject to the allocation described in | ||
Section 302(c)(1) are: bonuses earned as a result | ||
of play (i.e., performance bonuses) during the | ||
season, including bonuses paid for championship, | ||
playoff or "bowl" games played by a team, or for | ||
selection to all-star league or other honorary | ||
positions; and bonuses paid for signing a | ||
contract, unless the payment of the signing bonus |
is not conditional upon the signee playing any | ||
games for the team or performing any subsequent | ||
services for the team or even making the team, the | ||
signing bonus is payable separately from the | ||
salary and any other compensation, and the signing | ||
bonus is nonrefundable.
| ||
(3) Sales factor.
| ||
(A) The sales factor is a fraction, the numerator of | ||
which is the
total sales of the person in this State during | ||
the taxable year, and the
denominator of which is the total | ||
sales of the person everywhere during
the taxable year.
| ||
(B) Sales of tangible personal property are in this | ||
State if:
| ||
(i) The property is delivered or shipped to a | ||
purchaser, other than
the United States government, | ||
within this State regardless of the f. o.
b. point or | ||
other conditions of the sale; or
| ||
(ii) The property is shipped from an office, store, | ||
warehouse,
factory or other place of storage in this | ||
State and either the purchaser
is the United States | ||
government or the person is not taxable in the
state of | ||
the purchaser; provided, however, that premises owned | ||
or leased
by a person who has independently contracted | ||
with the seller for the printing
of newspapers, | ||
periodicals or books shall not be deemed to be an | ||
office,
store, warehouse, factory or other place of |
storage for purposes of this
Section.
Sales of tangible | ||
personal property are not in this State if the
seller | ||
and purchaser would be members of the same unitary | ||
business group
but for the fact that either the seller | ||
or purchaser is a person with 80%
or more of total | ||
business activity outside of the United States and the
| ||
property is purchased for resale.
| ||
(B-1) Patents, copyrights, trademarks, and similar | ||
items of intangible
personal property.
| ||
(i) Gross receipts from the licensing, sale, or | ||
other disposition of a
patent, copyright, trademark, | ||
or similar item of intangible personal property
are in | ||
this State to the extent the item is utilized in this | ||
State during the
year the gross receipts are included | ||
in gross income.
| ||
(ii) Place of utilization.
| ||
(I) A patent is utilized in a state to the | ||
extent that it is employed
in production, | ||
fabrication, manufacturing, or other processing in | ||
the state or
to the extent that a patented product | ||
is produced in the state. If a patent is
utilized | ||
in
more than one state, the extent to which it is | ||
utilized in any one state shall
be a fraction equal | ||
to the gross receipts of the licensee or purchaser | ||
from
sales or leases of items produced, | ||
fabricated, manufactured, or processed
within that |
state using the patent and of patented items | ||
produced within that
state, divided by the total of | ||
such gross receipts for all states in which the
| ||
patent is utilized.
| ||
(II) A copyright is utilized in a state to the | ||
extent that printing or
other publication | ||
originates in the state. If a copyright is utilized | ||
in more
than one state, the extent to which it is | ||
utilized in any one state shall be a
fraction equal | ||
to the gross receipts from sales or licenses of | ||
materials
printed or published in that state | ||
divided by the total of such gross receipts
for all | ||
states in which the copyright is utilized.
| ||
(III) Trademarks and other items of intangible | ||
personal property
governed by this paragraph (B-1) | ||
are utilized in the state in which the
commercial | ||
domicile of the licensee or purchaser is located.
| ||
(iii) If the state of utilization of an item of | ||
property governed by
this paragraph (B-1) cannot be | ||
determined from the taxpayer's books and
records or | ||
from the books and records of any person related to the | ||
taxpayer
within the meaning of Section 267(b) of the | ||
Internal Revenue Code, 26 U.S.C.
267, the gross
| ||
receipts attributable to that item shall be excluded | ||
from both the numerator
and the denominator of the | ||
sales factor.
|
(B-2) Gross receipts from the license, sale, or other | ||
disposition of
patents, copyrights, trademarks, and | ||
similar items of intangible personal
property may be | ||
included in the numerator or denominator of the sales | ||
factor
only if gross receipts from licenses, sales, or | ||
other disposition of such items
comprise more than 50% of | ||
the taxpayer's total gross receipts included in gross
| ||
income during the tax year and during each of the 2 | ||
immediately preceding tax
years; provided that, when a | ||
taxpayer is a member of a unitary business group,
such | ||
determination shall be made on the basis of the gross | ||
receipts of the
entire unitary business group.
| ||
(B-5) For taxable years ending on or after December 31, | ||
2008, except as provided in subsections (ii) through (vii), | ||
receipts from the sale of telecommunications service or | ||
mobile telecommunications service are in this State if the | ||
customer's service address is in this State. | ||
(i) For purposes of this subparagraph (B-5), the | ||
follow terms have the following meanings: | ||
"Ancillary services" means services that are | ||
associated with or incidental to the provision of | ||
"telecommunications services", including but not | ||
limited to "detailed telecommunications billing", | ||
"directory assistance", "vertical service", and "voice | ||
mail services". | ||
"Air-to-Ground Radiotelephone service" means a |
radio service, as that term is defined in 47 CFR 22.99, | ||
in which common carriers are authorized to offer and | ||
provide radio telecommunications service for hire to | ||
subscribers in aircraft. | ||
"Call-by-call Basis" means any method of charging | ||
for telecommunications services where the price is | ||
measured by individual calls. | ||
"Communications Channel" means a physical or | ||
virtual path of communications over which signals are | ||
transmitted between or among customer channel | ||
termination points. | ||
"Conference bridging service" means an "ancillary | ||
service" that links two or more participants of an | ||
audio or video conference call and may include the | ||
provision of a telephone number. "Conference bridging | ||
service" does not include the "telecommunications | ||
services" used to reach the conference bridge. | ||
"Customer Channel Termination Point" means the | ||
location where the customer either inputs or receives | ||
the communications. | ||
"Detailed telecommunications billing service" | ||
means an "ancillary service" of separately stating | ||
information pertaining to individual calls on a | ||
customer's billing statement. | ||
"Directory assistance" means an "ancillary | ||
service" of providing telephone number information, |
and/or address information. | ||
"Home service provider" means the facilities based | ||
carrier or reseller with which the customer contracts | ||
for the provision of mobile telecommunications | ||
services. | ||
"Mobile telecommunications service" means | ||
commercial mobile radio service, as defined in Section | ||
20.3 of Title 47 of the Code of Federal Regulations as | ||
in effect on June 1, 1999. | ||
"Place of primary use" means the street address | ||
representative of where the customer's use of the | ||
telecommunications service primarily occurs, which | ||
must be the residential street address or the primary | ||
business street address of the customer. In the case of | ||
mobile telecommunications services, "place of primary | ||
use" must be within the licensed service area of the | ||
home service provider. | ||
"Post-paid telecommunication service" means the | ||
telecommunications service obtained by making a | ||
payment on a call-by-call basis either through the use | ||
of a credit card or payment mechanism such as a bank | ||
card, travel card, credit card, or debit card, or by | ||
charge made to a telephone number which is not | ||
associated with the origination or termination of the | ||
telecommunications service. A post-paid calling | ||
service includes telecommunications service, except a |
prepaid wireless calling service, that would be a | ||
prepaid calling service except it is not exclusively a | ||
telecommunication service. | ||
"Prepaid telecommunication service" means the | ||
right to access exclusively telecommunications | ||
services, which must be paid for in advance and which | ||
enables the origination of calls using an access number | ||
or authorization code, whether manually or | ||
electronically dialed, and that is sold in | ||
predetermined units or dollars of which the number | ||
declines with use in a known amount. | ||
"Prepaid Mobile telecommunication service" means a | ||
telecommunications service that provides the right to | ||
utilize mobile wireless service as well as other | ||
non-telecommunication services, including but not | ||
limited to ancillary services, which must be paid for | ||
in advance that is sold in predetermined units or | ||
dollars of which the number declines with use in a | ||
known amount. | ||
"Private communication service" means a | ||
telecommunication service that entitles the customer | ||
to exclusive or priority use of a communications | ||
channel or group of channels between or among | ||
termination points, regardless of the manner in which | ||
such channel or channels are connected, and includes | ||
switching capacity, extension lines, stations, and any |
other associated services that are provided in | ||
connection with the use of such channel or channels. | ||
"Service address" means: | ||
(a) The location of the telecommunications | ||
equipment to which a customer's call is charged and | ||
from which the call originates or terminates, | ||
regardless of where the call is billed or paid; | ||
(b) If the location in line (a) is not known, | ||
service address means the origination point of the | ||
signal of the telecommunications services first | ||
identified by either the seller's | ||
telecommunications system or in information | ||
received by the seller from its service provider | ||
where the system used to transport such signals is | ||
not that of the seller; and | ||
(c) If the locations in line (a) and line (b) | ||
are not known, the service address means the | ||
location of the customer's place of primary use. | ||
"Telecommunications service" means the electronic | ||
transmission, conveyance, or routing of voice, data, | ||
audio, video, or any other information or signals to a | ||
point, or between or among points. The term | ||
"telecommunications service" includes such | ||
transmission, conveyance, or routing in which computer | ||
processing applications are used to act on the form, | ||
code or protocol of the content for purposes of |
transmission, conveyance or routing without regard to | ||
whether such service is referred to as voice over | ||
Internet protocol services or is classified by the | ||
Federal Communications Commission as enhanced or value | ||
added. "Telecommunications service" does not include: | ||
(a) Data processing and information services | ||
that allow data to be generated, acquired, stored, | ||
processed, or retrieved and delivered by an | ||
electronic transmission to a purchaser when such | ||
purchaser's primary purpose for the underlying | ||
transaction is the processed data or information; | ||
(b) Installation or maintenance of wiring or | ||
equipment on a customer's premises; | ||
(c) Tangible personal property; | ||
(d) Advertising, including but not limited to | ||
directory advertising. | ||
(e) Billing and collection services provided | ||
to third parties; | ||
(f) Internet access service; | ||
(g) Radio and television audio and video | ||
programming services, regardless of the medium, | ||
including the furnishing of transmission, | ||
conveyance and routing of such services by the | ||
programming service provider. Radio and television | ||
audio and video programming services shall include | ||
but not be limited to cable service as defined in |
47 USC 522(6) and audio and video programming | ||
services delivered by commercial mobile radio | ||
service providers, as defined in 47 CFR 20.3; | ||
(h) "Ancillary services"; or | ||
(i) Digital products "delivered | ||
electronically", including but not limited to | ||
software, music, video, reading materials or ring | ||
tones. | ||
"Vertical service" means an "ancillary service" | ||
that is offered in connection with one or more | ||
"telecommunications services", which offers advanced | ||
calling features that allow customers to identify | ||
callers and to manage multiple calls and call | ||
connections, including "conference bridging services". | ||
"Voice mail service" means an "ancillary service" | ||
that enables the customer to store, send or receive | ||
recorded messages. "Voice mail service" does not | ||
include any "vertical services" that the customer may | ||
be required to have in order to utilize the "voice mail | ||
service". | ||
(ii) Receipts from the sale of telecommunications | ||
service sold on an individual call-by-call basis are in | ||
this State if either of the following applies: | ||
(a) The call both originates and terminates in | ||
this State. | ||
(b) The call either originates or terminates |
in this State and the service address is located in | ||
this State. | ||
(iii) Receipts from the sale of postpaid | ||
telecommunications service at retail are in this State | ||
if the origination point of the telecommunication | ||
signal, as first identified by the service provider's | ||
telecommunication system or as identified by | ||
information received by the seller from its service | ||
provider if the system used to transport | ||
telecommunication signals is not the seller's, is | ||
located in this State. | ||
(iv) Receipts from the sale of prepaid | ||
telecommunications service or prepaid mobile | ||
telecommunications service at retail are in this State | ||
if the purchaser obtains the prepaid card or similar | ||
means of conveyance at a location in this State. | ||
Receipts from recharging a prepaid telecommunications | ||
service or mobile telecommunications service is in | ||
this State if the purchaser's billing information | ||
indicates a location in this State. | ||
(v) Receipts from the sale of private | ||
communication services are in this State as follows: | ||
(a) 100% of receipts from charges imposed at | ||
each channel termination point in this State. | ||
(b) 100% of receipts from charges for the total | ||
channel mileage between each channel termination |
point in this State. | ||
(c) 50% of the total receipts from charges for | ||
service segments when those segments are between 2 | ||
customer channel termination points, 1 of which is | ||
located in this State and the other is located | ||
outside of this State, which segments are | ||
separately charged. | ||
(d) The receipts from charges for service | ||
segments with a channel termination point located | ||
in this State and in two or more other states, and | ||
which segments are not separately billed, are in | ||
this State based on a percentage determined by | ||
dividing the number of customer channel | ||
termination points in this State by the total | ||
number of customer channel termination points. | ||
(vi) Receipts from charges for ancillary services | ||
for telecommunications service sold to customers at | ||
retail are in this State if the customer's primary | ||
place of use of telecommunications services associated | ||
with those ancillary services is in this State. If the | ||
seller of those ancillary services cannot determine | ||
where the associated telecommunications are located, | ||
then the ancillary services shall be based on the | ||
location of the purchaser. | ||
(vii) Receipts to access a carrier's network or | ||
from the sale of telecommunication services or |
ancillary services for resale are in this State as | ||
follows: | ||
(a) 100% of the receipts from access fees | ||
attributable to intrastate telecommunications | ||
service that both originates and terminates in | ||
this State. | ||
(b) 50% of the receipts from access fees | ||
attributable to interstate telecommunications | ||
service if the interstate call either originates | ||
or terminates in this State. | ||
(c) 100% of the receipts from interstate end | ||
user access line charges, if the customer's | ||
service address is in this State. As used in this | ||
subdivision, "interstate end user access line | ||
charges" includes, but is not limited to, the | ||
surcharge approved by the federal communications | ||
commission and levied pursuant to 47 CFR 69. | ||
(d) Gross receipts from sales of | ||
telecommunication services or from ancillary | ||
services for telecommunications services sold to | ||
other telecommunication service providers for | ||
resale shall be sourced to this State using the | ||
apportionment concepts used for non-resale | ||
receipts of telecommunications services if the | ||
information is readily available to make that | ||
determination. If the information is not readily |
available, then the taxpayer may use any other | ||
reasonable and consistent method.
| ||
(C) For taxable years ending before December 31, 2008, | ||
sales, other than sales governed by paragraphs (B), (B-1), | ||
and (B-2), are in
this State if:
| ||
(i) The income-producing activity is performed in | ||
this State; or
| ||
(ii) The income-producing activity is performed | ||
both within and
without this State and a greater | ||
proportion of the income-producing
activity is | ||
performed within this State than without this State, | ||
based
on performance costs.
| ||
(C-5) For taxable years ending on or after December 31, | ||
2008, sales, other than sales governed by paragraphs (B), | ||
(B-1), and (B-2) , and (B-5) , are in this State if any of | ||
the following criteria are met the purchaser is in this | ||
State or the sale is otherwise attributable to this State's | ||
marketplace. The following examples are illustrative : | ||
(i) Sales from the sale or lease of real property | ||
are in this State if the property is located in this | ||
State. | ||
(ii) Sales from the lease or rental of tangible | ||
personal property are in this State if the property is | ||
located in this State during the rental period. Sales | ||
from the lease or rental of tangible personal property | ||
that is characteristically moving property, including, |
but not limited to, motor vehicles, rolling stock, | ||
aircraft, vessels, or mobile equipment are in this | ||
State to the extent that the property is used in this | ||
State. | ||
(iii) In the case of interest, net gains (but not | ||
less than zero) and other items of income from | ||
intangible personal property, the sale is in this State | ||
if: | ||
(a) in the case of a taxpayer who is a dealer | ||
in the item of intangible personal property within | ||
the meaning of Section 475 of the Internal Revenue | ||
Code, the income or gain is received from a | ||
customer in this State. For purposes of this | ||
subparagraph, a customer is in this State if the | ||
customer is an individual, trust or estate who is a | ||
resident of this State and, for all other | ||
customers, if the customer's commercial domicile | ||
is in this State. Unless the dealer has actual | ||
knowledge of the residence or commercial domicile | ||
of a customer during a taxable year, the customer | ||
shall be deemed to be a customer in this State if | ||
the billing address of the customer, as shown in | ||
the records of the dealer, is in this State; or | ||
(b) in all other cases, if the | ||
income-producing activity of the taxpayer is | ||
performed in this State or, if the |
income-producing activity of the taxpayer is | ||
performed both within and without this State, if a | ||
greater proportion of the income-producing | ||
activity of the taxpayer is performed within this | ||
State than in any other state, based on performance | ||
costs. Sales of intangible personal property are | ||
in this State if the purchaser realizes benefit | ||
from the property in this State. If the purchaser | ||
realizes benefit from the property both within and | ||
without this State, the gross receipts from the | ||
sale shall be divided among those states in which | ||
the taxpayer is taxable in proportion to the | ||
benefit in each state. If the proportionate | ||
benefit in this State cannot be determined, the | ||
sale shall be excluded from both the numerator and | ||
the denominator of the sales factor. | ||
(iv) Sales of services are in this State if the | ||
services are received in this State. For the purposes | ||
of this section, gross receipts from the performance of | ||
services provided to a corporation, partnership, or | ||
trust may only be attributed to a state where that | ||
corporation, partnership, or trust has a fixed place of | ||
business. If the state where the services are received | ||
is not readily determinable or is a state where the | ||
corporation, partnership, or trust receiving the | ||
service does not have a fixed place of business, the |
services shall be deemed to be received at the location | ||
of the office of the customer from which the services | ||
were ordered in the regular course of the customer's | ||
trade or business. If the ordering office cannot be | ||
determined, the services shall be deemed to be received | ||
at the office of the customer to which the services are | ||
billed. If the taxpayer is not taxable in the state in | ||
which the services are received, the sale must be | ||
excluded from both the numerator and the denominator of | ||
the sales factor. the benefit of the service is | ||
realized in this State. If the benefit of the service | ||
is realized both within and without this State, the | ||
gross receipts from the sale shall be divided among | ||
those states in which the taxpayer is taxable in | ||
proportion to the benefit of service realized in each | ||
state. If the proportionate benefit in this State | ||
cannot be determined, the sale shall be excluded from | ||
both the numerator and the denominator of the sales | ||
factor. The Department shall may adopt rules | ||
prescribing where the benefit of specific types of | ||
service are received , including, but not limited to, | ||
telecommunications, broadcast, cable, advertising, | ||
publishing, and utility service , is realized .
| ||
(D) For taxable years ending on or after December 31, | ||
1995, the following
items of income shall not be included | ||
in the numerator or denominator of the
sales factor: |
dividends; amounts included under Section 78 of the | ||
Internal
Revenue Code; and Subpart F income as defined in | ||
Section 952 of the Internal
Revenue Code.
No inference | ||
shall be drawn from the enactment of this paragraph (D) in
| ||
construing this Section for taxable years ending before | ||
December 31, 1995.
| ||
(E) Paragraphs (B-1) and (B-2) shall apply to tax years | ||
ending on or
after December 31, 1999, provided that a | ||
taxpayer may elect to apply the
provisions of these | ||
paragraphs to prior tax years. Such election shall be made
| ||
in the form and manner prescribed by the Department, shall | ||
be irrevocable, and
shall apply to all tax years; provided | ||
that, if a taxpayer's Illinois income
tax liability for any | ||
tax year, as assessed under Section 903 prior to January
1, | ||
1999, was computed in a manner contrary to the provisions | ||
of paragraphs
(B-1) or (B-2), no refund shall be payable to | ||
the taxpayer for that tax year to
the extent such refund is | ||
the result of applying the provisions of paragraph
(B-1) or | ||
(B-2) retroactively. In the case of a unitary business | ||
group, such
election shall apply to all members of such | ||
group for every tax year such group
is in existence, but | ||
shall not apply to any taxpayer for any period during
which | ||
that taxpayer is not a member of such group.
| ||
(b) Insurance companies.
| ||
(1) In general. Except as otherwise
provided by | ||
paragraph (2), business income of an insurance company for |
a
taxable year shall be apportioned to this State by | ||
multiplying such
income by a fraction, the numerator of | ||
which is the direct premiums
written for insurance upon | ||
property or risk in this State, and the
denominator of | ||
which is the direct premiums written for insurance upon
| ||
property or risk everywhere. For purposes of this | ||
subsection, the term
"direct premiums written" means the | ||
total amount of direct premiums
written, assessments and | ||
annuity considerations as reported for the
taxable year on | ||
the annual statement filed by the company with the
Illinois | ||
Director of Insurance in the form approved by the National
| ||
Convention of Insurance Commissioners
or such other form as | ||
may be
prescribed in lieu thereof.
| ||
(2) Reinsurance. If the principal source of premiums | ||
written by an
insurance company consists of premiums for | ||
reinsurance accepted by it,
the business income of such | ||
company shall be apportioned to this State
by multiplying | ||
such income by a fraction, the numerator of which is the
| ||
sum of (i) direct premiums written for insurance upon | ||
property or risk
in this State, plus (ii) premiums written | ||
for reinsurance accepted in
respect of property or risk in | ||
this State, and the denominator of which
is the sum of | ||
(iii) direct premiums written for insurance upon property
| ||
or risk everywhere, plus (iv) premiums written for | ||
reinsurance accepted
in respect of property or risk | ||
everywhere. For taxable years ending before December 31, |
2008, for purposes of this
paragraph, premiums written for | ||
reinsurance accepted in respect of
property or risk in this | ||
State, whether or not otherwise determinable,
may, at the | ||
election of the company, be determined on the basis of the
| ||
proportion which premiums written for reinsurance accepted | ||
from
companies commercially domiciled in Illinois bears to | ||
premiums written
for reinsurance accepted from all | ||
sources, or, alternatively, in the
proportion which the sum | ||
of the direct premiums written for insurance
upon property | ||
or risk in this State by each ceding company from which
| ||
reinsurance is accepted bears to the sum of the total | ||
direct premiums
written by each such ceding company for the | ||
taxable year.
| ||
(c) Financial organizations.
| ||
(1) In general. For taxable years ending before | ||
December 31, 2008, business income of a financial
| ||
organization shall be apportioned to this State by | ||
multiplying such
income by a fraction, the numerator of | ||
which is its business income from
sources within this | ||
State, and the denominator of which is its business
income | ||
from all sources. For the purposes of this subsection, the
| ||
business income of a financial organization from sources | ||
within this
State is the sum of the amounts referred to in | ||
subparagraphs (A) through
(E) following, but excluding the | ||
adjusted income of an international banking
facility as | ||
determined in paragraph (2):
|
(A) Fees, commissions or other compensation for | ||
financial services
rendered within this State;
| ||
(B) Gross profits from trading in stocks, bonds or | ||
other securities
managed within this State;
| ||
(C) Dividends, and interest from Illinois | ||
customers, which are received
within this State;
| ||
(D) Interest charged to customers at places of | ||
business maintained
within this State for carrying | ||
debit balances of margin accounts,
without deduction | ||
of any costs incurred in carrying such accounts; and
| ||
(E) Any other gross income resulting from the | ||
operation as a
financial organization within this | ||
State. In computing the amounts
referred to in | ||
paragraphs (A) through (E) of this subsection, any | ||
amount
received by a member of an affiliated group | ||
(determined under Section
1504(a) of the Internal | ||
Revenue Code but without reference to whether
any such | ||
corporation is an "includible corporation" under | ||
Section
1504(b) of the Internal Revenue Code) from | ||
another member of such group
shall be included only to | ||
the extent such amount exceeds expenses of the
| ||
recipient directly related thereto.
| ||
(2) International Banking Facility. For taxable years | ||
ending before December 31, 2008:
| ||
(A) Adjusted Income. The adjusted income of an | ||
international banking
facility is its income reduced |
by the amount of the floor amount.
| ||
(B) Floor Amount. The floor amount shall be the | ||
amount, if any,
determined
by multiplying the income of | ||
the international banking facility by a fraction,
not | ||
greater than one, which is determined as follows:
| ||
(i) The numerator shall be:
| ||
The average aggregate, determined on a | ||
quarterly basis, of the
financial
organization's | ||
loans to banks in foreign countries, to foreign | ||
domiciled
borrowers (except where secured | ||
primarily by real estate) and to foreign
| ||
governments and other foreign official | ||
institutions, as reported for its
branches, | ||
agencies and offices within the state on its | ||
"Consolidated Report
of Condition", Schedule A, | ||
Lines 2.c., 5.b., and 7.a., which was filed with
| ||
the Federal Deposit Insurance Corporation and | ||
other regulatory authorities,
for the year 1980, | ||
minus
| ||
The average aggregate, determined on a | ||
quarterly basis, of such loans
(other
than loans of | ||
an international banking facility), as reported by | ||
the financial
institution for its branches, | ||
agencies and offices within the state, on
the | ||
corresponding Schedule and lines of the | ||
Consolidated Report of Condition
for the current |
taxable year, provided, however, that in no case | ||
shall the
amount determined in this clause (the | ||
subtrahend) exceed the amount determined
in the | ||
preceding clause (the minuend); and
| ||
(ii) the denominator shall be the average | ||
aggregate, determined on a
quarterly basis, of the | ||
international banking facility's loans to banks in
| ||
foreign countries, to foreign domiciled borrowers | ||
(except where secured
primarily by real estate) | ||
and to foreign governments and other foreign
| ||
official institutions, which were recorded in its | ||
financial accounts for
the current taxable year.
| ||
(C) Change to Consolidated Report of Condition and | ||
in Qualification.
In the event the Consolidated Report | ||
of Condition which is filed with the
Federal Deposit | ||
Insurance Corporation and other regulatory authorities | ||
is
altered so that the information required for | ||
determining the floor amount
is not found on Schedule | ||
A, lines 2.c., 5.b. and 7.a., the financial
institution | ||
shall notify the Department and the Department may, by
| ||
regulations or otherwise, prescribe or authorize the | ||
use of an alternative
source for such information. The | ||
financial institution shall also notify
the Department | ||
should its international banking facility fail to | ||
qualify as
such, in whole or in part, or should there | ||
be any amendment or change to
the Consolidated Report |
of Condition, as originally filed, to the extent
such | ||
amendment or change alters the information used in | ||
determining the floor
amount.
| ||
(3) For taxable years ending on or after December 31, | ||
2008, the business income of a financial organization shall | ||
be apportioned to this State by multiplying such income by | ||
a fraction, the numerator of which is its gross receipts | ||
from sources in this State or otherwise attributable to | ||
this State's marketplace and the denominator of which is | ||
its gross receipts everywhere during the taxable year. | ||
"Gross receipts" for purposes of this subparagraph (3) | ||
means gross income, including net taxable gain on | ||
disposition of assets, including securities and money | ||
market instruments, when derived from transactions and | ||
activities in the regular course of the financial | ||
organization's trade or business. If a person derives | ||
business income from activities in addition to the | ||
provision of financial services, this subparagraph (3) | ||
shall apply only to its business income from financial | ||
services, and its other business income shall be | ||
apportioned to this State under the applicable provisions | ||
of this Section. The following examples are illustrative:
| ||
(i) Receipts from the lease or rental of real or | ||
tangible personal property are in this State if the | ||
property is located in this State during the rental | ||
period. Receipts from the lease or rental of tangible |
personal property that is characteristically moving | ||
property, including, but not limited to, motor | ||
vehicles, rolling stock, aircraft, vessels, or mobile | ||
equipment are from sources in this State to the extent | ||
that the property is used in this State. | ||
(ii) Interest income, commissions, fees, gains on | ||
disposition, and other receipts from assets in the | ||
nature of loans that are secured primarily by real | ||
estate or tangible personal property are from sources | ||
in this State if the security is located in this State. | ||
(iii) Interest income, commissions, fees, gains on | ||
disposition, and other receipts from consumer loans | ||
that are not secured by real or tangible personal | ||
property are from sources in this State if the debtor | ||
is a resident of this State. | ||
(iv) Interest income, commissions, fees, gains on | ||
disposition, and other receipts from commercial loans | ||
and installment obligations that are not secured by | ||
real or tangible personal property are from sources in | ||
this State if the proceeds of the loan are to be | ||
applied in this State. If it cannot be determined where | ||
the funds are to be applied, the income and receipts | ||
are from sources in this State if the office of the | ||
borrower from which the loan was negotiated in the | ||
regular course of business is located in this State. If | ||
the location of this office cannot be determined, the |
income and receipts shall be excluded from the | ||
numerator and denominator of the sales factor.
| ||
(v) Interest income, fees, gains on disposition, | ||
service charges, merchant discount income, and other | ||
receipts from credit card receivables are from sources | ||
in this State if the card charges are regularly billed | ||
to a customer in this State. | ||
(vi) Receipts from the performance of services, | ||
including, but not limited to, fiduciary, advisory, | ||
and brokerage services, are in this State if the | ||
services are received in this State within the meaning | ||
of subparagraph (a)(3)(C-5)(iv) of this Section. the | ||
benefit of the service is realized in this State. If | ||
the benefit of the service is realized both within and | ||
without this State, the gross receipts from the sale | ||
shall be divided among those states in which the | ||
taxpayer is taxable in proportion to the benefit of | ||
service realized in each state. If the proportionate | ||
benefit in this State cannot be determined, the sale | ||
shall be excluded from both the numerator and the | ||
denominator of the gross receipts factor. | ||
(vii) Receipts from the issuance of travelers | ||
checks and money orders are from sources in this State | ||
if the checks and money orders are issued from a | ||
location within this State. | ||
(viii) Receipts from investment assets and |
activities and trading assets and activities are | ||
included in the receipts factor as follows: | ||
(1) Interest, dividends, net gains (but not | ||
less than zero) and other income from investment | ||
assets and activities from trading assets and | ||
activities shall be included in the receipts | ||
factor. Investment assets and activities and | ||
trading assets and activities include but are not | ||
limited to: investment securities; trading account | ||
assets; federal funds; securities purchased and | ||
sold under agreements to resell or repurchase; | ||
options; futures contracts; forward contracts; | ||
notional principal contracts such as swaps; | ||
equities; and foreign currency transactions. With | ||
respect to the investment and trading assets and | ||
activities described in subparagraphs (A) and (B) | ||
of this paragraph, the receipts factor shall | ||
include the amounts described in such | ||
subparagraphs. | ||
(A) The receipts factor shall include the | ||
amount by which interest from federal funds | ||
sold and securities purchased under resale | ||
agreements exceeds interest expense on federal | ||
funds purchased and securities sold under | ||
repurchase agreements. | ||
(B) The receipts factor shall include the |
amount by which interest, dividends, gains and | ||
other income from trading assets and | ||
activities, including but not limited to | ||
assets and activities in the matched book, in | ||
the arbitrage book, and foreign currency | ||
transactions, exceed amounts paid in lieu of | ||
interest, amounts paid in lieu of dividends, | ||
and losses from such assets and activities. | ||
(2) The numerator of the receipts factor | ||
includes interest, dividends, net gains (but not | ||
less than zero), and other income from investment | ||
assets and activities and from trading assets and | ||
activities described in paragraph (1) of this | ||
subsection that are attributable to this State. | ||
(A) The amount of interest, dividends, net | ||
gains (but not less than zero), and other | ||
income from investment assets and activities | ||
in the investment account to be attributed to | ||
this State and included in the numerator is | ||
determined by multiplying all such income from | ||
such assets and activities by a fraction, the | ||
numerator of which is the gross income from | ||
such assets and activities which are properly | ||
assigned to a fixed place of business of the | ||
taxpayer within this State and the denominator | ||
of which is the gross income from all such |
assets and activities. | ||
(B) The amount of interest from federal | ||
funds sold and purchased and from securities | ||
purchased under resale agreements and | ||
securities sold under repurchase agreements | ||
attributable to this State and included in the | ||
numerator is determined by multiplying the | ||
amount described in subparagraph (A) of | ||
paragraph (1) of this subsection from such | ||
funds and such securities by a fraction, the | ||
numerator of which is the gross income from | ||
such funds and such securities which are | ||
properly assigned to a fixed place of business | ||
of the taxpayer within this State and the | ||
denominator of which is the gross income from | ||
all such funds and such securities. | ||
(C) The amount of interest, dividends, | ||
gains, and other income from trading assets and | ||
activities, including but not limited to | ||
assets and activities in the matched book, in | ||
the arbitrage book and foreign currency | ||
transactions (but excluding amounts described | ||
in subparagraphs (A) or (B) of this paragraph), | ||
attributable to this State and included in the | ||
numerator is determined by multiplying the | ||
amount described in subparagraph (B) of |
paragraph (1) of this subsection by a fraction, | ||
the numerator of which is the gross income from | ||
such trading assets and activities which are | ||
properly assigned to a fixed place of business | ||
of the taxpayer within this State and the | ||
denominator of which is the gross income from | ||
all such assets and activities. | ||
(D) Properly assigned, for purposes of | ||
this paragraph (2) of this subsection, means | ||
the investment or trading asset or activity is | ||
assigned to the fixed place of business with | ||
which it has a preponderance of substantive | ||
contacts. An investment or trading asset or | ||
activity assigned by the taxpayer to a fixed | ||
place of business without the State shall be | ||
presumed to have been properly assigned if: | ||
(i) the taxpayer has assigned, in the | ||
regular course of its business, such asset | ||
or activity on its records to a fixed place | ||
of business consistent with federal or | ||
state regulatory requirements; | ||
(ii) such assignment on its records is | ||
based upon substantive contacts of the | ||
asset or activity to such fixed place of | ||
business; and | ||
(iii) the taxpayer uses such records |
reflecting assignment of such assets or | ||
activities for the filing of all state and | ||
local tax returns for which an assignment | ||
of such assets or activities to a fixed | ||
place of business is required. | ||
(E) The presumption of proper assignment | ||
of an investment or trading asset or activity | ||
provided in subparagraph (D) of paragraph (2) | ||
of this subsection may be rebutted upon a | ||
showing by the Department, supported by a | ||
preponderance of the evidence, that the | ||
preponderance of substantive contacts | ||
regarding such asset or activity did not occur | ||
at the fixed place of business to which it was | ||
assigned on the taxpayer's records. If the | ||
fixed place of business that has a | ||
preponderance of substantive contacts cannot | ||
be determined for an investment or trading | ||
asset or activity to which the presumption in | ||
subparagraph (D) of paragraph (2) of this | ||
subsection does not apply or with respect to | ||
which that presumption has been rebutted, that | ||
asset or activity is properly assigned to the | ||
state in which the taxpayer's commercial | ||
domicile is located. For purposes of this | ||
subparagraph (E), it shall be presumed, |
subject to rebuttal, that taxpayer's | ||
commercial domicile is in the state of the | ||
United States or the District of Columbia to | ||
which the greatest number of employees are | ||
regularly connected with the management of the | ||
investment or trading income or out of which | ||
they are working, irrespective of where the | ||
services of such employees are performed, as of | ||
the last day of the taxable year. In the case | ||
of a financial organization that accepts | ||
deposits, receipts from investments and from | ||
money market instruments are apportioned to | ||
this State based on the ratio that the total | ||
deposits of the financial organization | ||
(including all members of the financial | ||
organization's unitary group) from this State, | ||
its residents, (including businesses with an | ||
office or other place of business in this | ||
State), and its political subdivisions, | ||
agencies, and instrumentalities bear to total | ||
deposits everywhere. For purposes of this | ||
subdivision, deposits must be attributed to | ||
this State under the preceding sentence, | ||
whether or not the deposits are accepted or | ||
maintained by the financial organization at | ||
locations within this State. In the case of a |
financial organization that does not accept | ||
deposits, receipts from investments in | ||
securities and from money market instruments | ||
shall be excluded from the numerator and the | ||
denominator of the gross receipts factor.
| ||
(4) (Blank). As used in subparagraph (3), "deposit" | ||
includes but is not limited to: | ||
(i) the unpaid balance of money or its equivalent | ||
received or held by a financial institution in the | ||
usual course of business and for which it has given or | ||
is obligated to give credit, either conditionally or | ||
unconditionally, to a commercial, checking, savings, | ||
time, or thrift account whether or not advance notice | ||
is required to withdraw the credited funds, or which is | ||
evidenced by its certificate of deposit, thrift | ||
certificate, investment certificate, or certificate of | ||
indebtedness, or other similar name, or a check or | ||
draft drawn against a deposit account and certified by | ||
the financial organization, or a letter of credit or a | ||
traveler's check on which the financial organization | ||
is primarily liable. However, without limiting the | ||
generality of the term "money or its equivalent", any | ||
such account or instrument must be regarded as | ||
evidencing the receipt of the equivalent of money when | ||
credited or issued in exchange for checks or drafts or | ||
for a promissory note upon which the person obtaining |
the credit or instrument is primarily or secondarily | ||
liable, or for a charge against a deposit account, or | ||
in settlement of checks, drafts, or other instruments | ||
forwarded to the bank for collection; | ||
(ii) trust funds received or held by the financial | ||
organization, whether held in the trust department or | ||
held or deposited in any other department of the | ||
financial organization; | ||
(iii) money received or held by a financial | ||
organization, or the credit given for money or its | ||
equivalent received or held by a financial | ||
organization, in the usual course of business for a | ||
special or specific purpose, regardless of the legal | ||
relationship so established. Under this paragraph, | ||
"deposit" includes, but is not limited to, escrow | ||
funds, funds held as security for an obligation due to | ||
the financial organization or others, including funds | ||
held as dealers reserves, or for securities loaned by | ||
the financial organization, funds deposited by a | ||
debtor to meet maturing obligations, funds deposited | ||
as advance payment on subscriptions to United States | ||
government securities, funds held for distribution or | ||
purchase of securities, funds held to meet its | ||
acceptances or letters of credit, and withheld taxes. | ||
It does not include funds received by the financial | ||
organization for immediate application to the |
reduction of an indebtedness to the receiving | ||
financial organization, or under condition that the | ||
receipt of the funds immediately reduces or | ||
extinguishes the indebtedness; | ||
(iv) outstanding drafts, including advice of | ||
another financial organization, cashier's checks, | ||
money orders, or other officer's checks issued in the | ||
usual course of business for any purpose, but not | ||
including those issued in payment for services, | ||
dividends, or purchases or other costs or expenses of | ||
the financial organization itself; and | ||
(v) money or its equivalent held as a credit | ||
balance by a financial organization on behalf of its | ||
customer if the entity is engaged in soliciting and | ||
holding such balances in the regular course of its | ||
business.
| ||
(5) (Blank). As used in subparagraph (3), "money market | ||
instruments" includes but is not limited to: | ||
(i) Interest-bearing deposits, federal funds sold | ||
and securities purchased under agreements to resell, | ||
commercial paper, banker's acceptances, and purchased | ||
certificates of deposit and similar instruments to the | ||
extent that the instruments are reflected as assets | ||
under generally accepted accounting principles. | ||
"Securities" means corporate stock, bonds, and | ||
other securities (including, for purposes of taxation |
of gains on securities and for purchases under | ||
agreements to resell, United States Treasury | ||
securities, obligations of United States government | ||
agencies and corporations, obligations of state and | ||
political subdivisions, the interest on which is | ||
exempt from Illinois income tax), participations in | ||
securities backed by mortgages held by United States or | ||
state government agencies, loan-backed securities, and | ||
similar investments to the extent the investments are | ||
reflected as assets under generally accepted | ||
accounting principles. | ||
(ii) For purposes of subparagraph (3), "money | ||
market instruments" shall include investments in | ||
investment partnerships, trusts, pools, funds, | ||
investment companies, or any similar entity in | ||
proportion to the investment of the entity in money | ||
market instruments, and "securities" shall include | ||
investments in investment partnerships, trusts, pools, | ||
funds, investment companies, or any similar entity in | ||
proportion to the investment of the entity in | ||
securities.
| ||
(d) Transportation services. For taxable years ending | ||
before December 31, 2008, business income derived from | ||
furnishing
transportation services shall be apportioned to | ||
this State in accordance
with paragraphs (1) and (2):
| ||
(1) Such business income (other than that derived from
|
transportation by pipeline) shall be apportioned to this | ||
State by
multiplying such income by a fraction, the | ||
numerator of which is the
revenue miles of the person in | ||
this State, and the denominator of which
is the revenue | ||
miles of the person everywhere. For purposes of this
| ||
paragraph, a revenue mile is the transportation of 1 | ||
passenger or 1 net
ton of freight the distance of 1 mile | ||
for a consideration. Where a
person is engaged in the | ||
transportation of both passengers and freight,
the | ||
fraction above referred to shall be determined by means of | ||
an
average of the passenger revenue mile fraction and the | ||
freight revenue
mile fraction, weighted to reflect the | ||
person's
| ||
(A) relative railway operating income from total | ||
passenger and total
freight service, as reported to the | ||
Interstate Commerce Commission, in
the case of | ||
transportation by railroad, and
| ||
(B) relative gross receipts from passenger and | ||
freight
transportation, in case of transportation | ||
other than by railroad.
| ||
(2) Such business income derived from transportation | ||
by pipeline
shall be apportioned to this State by | ||
multiplying such income by a
fraction, the numerator of | ||
which is the revenue miles of the person in
this State, and | ||
the denominator of which is the revenue miles of the
person | ||
everywhere. For the purposes of this paragraph, a revenue |
mile is
the transportation by pipeline of 1 barrel of oil, | ||
1,000 cubic feet of
gas, or of any specified quantity of | ||
any other substance, the distance
of 1 mile for a | ||
consideration.
| ||
(3) For taxable years ending on or after December 31, | ||
2008, business income derived from providing | ||
transportation services other than airline services shall | ||
be apportioned to this State by using a fraction, (a) the | ||
numerator of which shall be (i) all receipts from any | ||
movement or shipment of people, goods, mail, oil, gas, or | ||
any other substance (other than by airline) that both | ||
originates and terminates in this State, plus (ii) that | ||
portion of the person's gross receipts from movements or | ||
shipments of people, goods, mail, oil, gas, or any other | ||
substance (other than by airline) that originates in one | ||
state or jurisdiction and terminates in another state or | ||
jurisdiction passing through, into, or out of this State , | ||
that is determined by the ratio that the miles traveled in | ||
this State bears to total miles everywhere from point of | ||
origin to point of destination and (b) the denominator of | ||
which shall be all revenue derived from the movement or | ||
shipment of people, goods, mail, oil, gas, or any other | ||
substance (other than by airline). Where a taxpayer is | ||
engaged in the transportation of both passengers and | ||
freight, the fraction above referred to shall first be | ||
determined separately for passenger miles and freight |
miles. Then an average of the passenger miles fraction and | ||
the freight miles fraction shall be weighted to reflect the | ||
taxpayer's: | ||
(A) relative railway operating income from total | ||
passenger and total freight service, as reported to the | ||
Surface Transportation Board, in the case of | ||
transportation by railroad; and | ||
(B) relative gross receipts from passenger and | ||
freight transportation, in case of transportation | ||
other than by railroad. If a person derives business | ||
income from activities in addition to the provision of | ||
transportation services (other than by airline), this | ||
subsection shall apply only to its business income from | ||
transportation services and its other business income | ||
shall be apportioned to this State according to the | ||
applicable provisions of this Section.
| ||
(4) For taxable years ending on or after December 31, | ||
2008, business income derived from furnishing airline
| ||
transportation services shall be apportioned to this State | ||
by
multiplying such income by a fraction, the numerator of | ||
which is the
revenue miles of the person in this State, and | ||
the denominator of which
is the revenue miles of the person | ||
everywhere. For purposes of this
paragraph, a revenue mile | ||
is the transportation of one passenger or one net
ton of | ||
freight the distance of one mile for a consideration. If a
| ||
person is engaged in the transportation of both passengers |
and freight,
the fraction above referred to shall be | ||
determined by means of an
average of the passenger revenue | ||
mile fraction and the freight revenue
mile fraction, | ||
weighted to reflect the person's relative gross receipts | ||
from passenger and freight
airline transportation. For | ||
taxable years ending on or after December 31, 2008, | ||
business income derived from providing airline services | ||
shall be apportioned to this State by using a fraction, (a) | ||
the numerator of which shall be arrivals of aircraft to and | ||
departures from this State weighted as to cost of aircraft | ||
by type and (b) the denominator of which shall be total | ||
arrivals and departures of aircraft weighted as to cost of | ||
aircraft by type. If a person derives business income from | ||
activities in addition to the provision of airline | ||
services, this subsection shall apply only to its business | ||
income from airline services and its other business income | ||
shall be apportioned to this State under the applicable | ||
provisions of this Section.
| ||
(e) Combined apportionment. Where 2 or more persons are | ||
engaged in
a unitary business as described in subsection | ||
(a)(27) of
Section 1501,
a part of which is conducted in this | ||
State by one or more members of the
group, the business income | ||
attributable to this State by any such member
or members shall | ||
be apportioned by means of the combined apportionment method.
| ||
(f) Alternative allocation. If the allocation and | ||
apportionment
provisions of subsections (a) through (e) and of |
subsection (h) do not
fairly represent the
extent of a person's | ||
business activity in this State, the person may
petition for, | ||
or the Director may, without a petition, permit or require, in | ||
respect of all or any part
of the person's business activity, | ||
if reasonable:
| ||
(1) Separate accounting;
| ||
(2) The exclusion of any one or more factors;
| ||
(3) The inclusion of one or more additional factors | ||
which will
fairly represent the person's business | ||
activities in this State; or
| ||
(4) The employment of any other method to effectuate an | ||
equitable
allocation and apportionment of the person's | ||
business income.
| ||
(g) Cross reference. For allocation of business income by | ||
residents,
see Section 301(a).
| ||
(h) For tax years ending on or after December 31, 1998, the | ||
apportionment
factor of persons who apportion their business | ||
income to this State under
subsection (a) shall be equal to:
| ||
(1) for tax years ending on or after December 31, 1998 | ||
and before December
31, 1999, 16 2/3% of the property | ||
factor plus 16 2/3% of the payroll factor
plus
66 2/3% of | ||
the sales factor;
| ||
(2) for tax years ending on or after December 31, 1999 | ||
and before December
31,
2000, 8 1/3% of the property factor | ||
plus 8 1/3% of the payroll factor plus 83
1/3%
of the sales | ||
factor;
|
(3) for tax years ending on or after December 31, 2000, | ||
the sales factor.
| ||
If, in any tax year ending on or after December 31, 1998 and | ||
before December
31, 2000, the denominator of the payroll, | ||
property, or sales factor is zero,
the apportionment
factor | ||
computed in paragraph (1) or (2) of this subsection for that | ||
year shall
be divided by an amount equal to 100% minus the | ||
percentage weight given to each
factor whose denominator is | ||
equal to zero.
| ||
(Source: P.A. 94-247, eff. 1-1-06; 95-233, eff. 8-16-07.)
| ||
(35 ILCS 5/704A) | ||
Sec. 704A. Employer's return and payment of tax withheld. | ||
(a) In general, every employer who deducts and withholds or | ||
is required to deduct and withhold tax under this Act on or | ||
after January 1, 2008 shall make those payments and returns as | ||
provided in this Section. | ||
(b) Returns. Every employer shall, in the form and manner | ||
required by the Department, make returns with respect to taxes | ||
withheld or required to be withheld under this Article 7 for | ||
each quarter beginning on or after January 1, 2008, on or | ||
before the last day of the first month following the close of | ||
that quarter. | ||
(c) Payments. With respect to amounts withheld or required | ||
to be withheld on or after January 1, 2008: | ||
(1) Semi-weekly payments. For each calendar year, each |
employer who withheld or was required to withhold more than | ||
$12,000 during the one-year period ending on June 30 of the | ||
immediately preceding calendar year, payment must be made: | ||
(A) on or before each Friday of the calendar year, | ||
for taxes withheld or required to be withheld on the | ||
immediately preceding Saturday, Sunday, Monday, or | ||
Tuesday; | ||
(B) on or before each Wednesday of the calendar | ||
year, for taxes withheld or required to be withheld on | ||
the immediately preceding Wednesday, Thursday, or | ||
Friday. | ||
(2) Semi-weekly payments. Any employer who withholds | ||
or is required to withhold more than $12,000 in any quarter | ||
of a calendar year is required to make payments on the | ||
dates set forth under item (1) of this subsection (c) for | ||
each remaining quarter of that calendar year and for the | ||
subsequent calendar year.
| ||
(3) Monthly payments. Each employer, other than an | ||
employer described in items (1) or (2) of this subsection, | ||
shall pay to the Department, on or before the 15th day of | ||
each month the taxes withheld or required to be withheld | ||
during the immediately preceding month. | ||
(4) Payments with returns. Each employer shall pay to | ||
the Department, on or before the due date for each return | ||
required to be filed under this Section, any tax withheld | ||
or required to be withheld during the period for which the |
return is due and not previously paid to the Department. | ||
(d) Regulatory authority. The Department may, by rule: | ||
(1) If the aggregate amounts required to be withheld | ||
under this Article 7 do not exceed $1,000 for the calendar | ||
year, permit employers, in lieu of the requirements of | ||
subsections (b) and (c), to file annual returns due on or | ||
before January 31 of the following year for taxes withheld | ||
or required to be withheld during that calendar year and to | ||
pay the taxes required to be shown on each such return no | ||
later than the due date for such return. | ||
(2) Provide that any payment required to be made under | ||
subsection (c)(1) or (c)(2) is deemed to be timely to the | ||
extent paid by electronic funds transfer on or before the | ||
due date for deposit of federal income taxes withheld from, | ||
or federal employment taxes due with respect to, the wages | ||
from which the Illinois taxes were withheld. | ||
(3) Designate one or more depositories to which payment | ||
of taxes required to be withheld under this Article 7 must | ||
be paid by some or all employers. | ||
(4) Increase the threshold dollar amounts at which | ||
employers are required to make semi-weekly payments under | ||
subsection (c)(1) or (c)(2). | ||
(e) Annual return and payment. Every employer who deducts | ||
and withholds or is required to deduct and withhold tax from a | ||
person engaged in domestic service employment, as that term is | ||
defined in Section 3510 of the Internal Revenue Code, may |
comply with the requirements of this Section with respect to | ||
such employees by filing an annual return and paying the taxes | ||
required to be deducted and withheld on or before the 15th day | ||
of the fourth month following the close of the employer's | ||
taxable year. The Department may allow the employer's return to | ||
be submitted with the employer's individual income tax return | ||
or to be submitted with a return due from the employer under | ||
Section 1400.2 of the Unemployment Insurance Act. | ||
(f) Magnetic media and electronic filing. Any W-2 Form | ||
that, under the Internal Revenue Code and regulations | ||
promulgated thereunder, is required to be submitted to the | ||
Internal Revenue Service on magnetic media or electronically | ||
must also be submitted to the Department on magnetic media or | ||
electronically for Illinois purposes, if required by the | ||
Department.
| ||
(Source: P.A. 95-8, eff. 6-29-07.) | ||
(35 ILCS 5/709.5)
| ||
Sec. 709.5. Withholding by partnerships, Subchapter S | ||
corporations, and trusts. | ||
(a) In general. For each taxable year ending on or after | ||
December 31, 2008, every partnership (other than a publicly | ||
traded partnership under Section 7704 of the Internal Revenue | ||
Code or investment partnership ), Subchapter S corporation, and | ||
trust must withhold from each nonresident partner, | ||
shareholder, or beneficiary (other than a partner, |
shareholder, or beneficiary who is exempt from tax under | ||
Section 501(a) of the Internal Revenue Code or under Section | ||
205 of this Act or who is included on a composite return filed | ||
by the partnership or Subchapter S corporation for the taxable | ||
year under subsection (f) of Section 502 of this Act) an amount | ||
equal to the distributable share of the business income of the | ||
partnership, Subchapter S corporation, or trust apportionable | ||
to Illinois of that partner, shareholder, or beneficiary under | ||
Sections 702 and 704 and Subchapter S of the Internal Revenue | ||
Code, whether or not distributed, multiplied by the applicable | ||
rates of tax for that partner or shareholder under subsections | ||
(a) through (d) of Section 201 of this Act. | ||
(b) Credit for taxes withheld. Any amount withheld under | ||
subsection (a) of this Section and paid to the Department shall | ||
be treated as a payment of the estimated tax liability or of | ||
the liability for withholding under this Section of the | ||
partner, shareholder, or beneficiary to whom the income is | ||
distributable for the taxable year in which that person | ||
incurred a liability under this Act with respect to that | ||
income.
The Department shall adopt rules pursuant to which a | ||
partner, shareholder, or beneficiary may claim a credit against | ||
its obligation for withholding under this Section for amounts | ||
withheld under this Section with respect to income | ||
distributable to it by a partnership, Subchapter S corporation, | ||
or trust and allowing its partners, shareholders, or | ||
beneficiaries to claim a credit under this subsection (b) for |
those withheld amounts.
| ||
(c) Exemption from withholding. | ||
(1) A partnership, Subchapter S corporation, or trust | ||
shall not be required to withhold tax under subsection (a) | ||
of this Section with respect to any nonresident partner, | ||
shareholder, or beneficiary (other than an individual) | ||
from whom the partnership, S corporation, or trust has | ||
received a certificate, completed in the form and manner | ||
prescribed by the Department, stating that such | ||
nonresident partner, shareholder, or beneficiary shall: | ||
(A) file all returns that the partner, | ||
shareholder, or beneficiary is required to file under | ||
Section 502 of this Act and make timely payment of all | ||
taxes imposed under Section 201 of this Act or under | ||
this Section on the partner, shareholder, or | ||
beneficiary with respect to income of the partnership, | ||
S corporation, or trust; and | ||
(B) be subject to personal jurisdiction in this | ||
State for purposes of the collection of income taxes, | ||
together with related interest and penalties, imposed | ||
on the partner, shareholder, or beneficiary with | ||
respect to the income of the partnership, S | ||
corporation, or trust. | ||
(2) The Department may revoke the exemption provided by | ||
this subsection (c) at any time that it determines that the | ||
nonresident partner, shareholder, or beneficiary is not |
abiding by the terms of the certificate. The Department | ||
shall notify the partnership, S corporation, or trust that | ||
it has revoked a certificate by notice left at the usual | ||
place of business of the partnership, S corporation, or | ||
trust or by mail to the last known address of the | ||
partnership, S corporation, or trust. | ||
(3) A partnership, S corporation, or trust that | ||
receives a certificate under this subsection (c) properly | ||
completed by a nonresident partner, shareholder, or | ||
beneficiary shall not be required to withhold any amount | ||
from that partner, shareholder, or beneficiary, the | ||
payment of which would be due under Section 711(a-5) of | ||
this Act after the receipt of the certificate and no | ||
earlier than 60 days after the Department has notified the | ||
partnership, S corporation, or trust that the certificate | ||
has been revoked. | ||
(4) Certificates received by a the partnership, S | ||
corporation, or trust under this subsection (c) must be | ||
retained by the partnership, S corporation, or trust and a | ||
record of such certificates must be provided to the | ||
Department, in a format in which the record is available | ||
for review by the Department, upon request by the | ||
Department. The Department may, by rule, require the record | ||
of certificates to be maintained and provided to the | ||
Department electronically.
| ||
(Source: P.A. 95-233, eff. 8-16-07.)
|
(35 ILCS 5/901) (from Ch. 120, par. 9-901)
| ||
Sec. 901. Collection Authority.
| ||
(a) In general.
| ||
The Department shall collect the taxes imposed by this Act. | ||
The Department
shall collect certified past due child support | ||
amounts under Section 2505-650
of the Department of Revenue Law | ||
(20 ILCS 2505/2505-650). Except as
provided in subsections (c) | ||
and (e) of this Section, money collected
pursuant to | ||
subsections (a) and (b) of Section 201 of this Act shall be
| ||
paid into the General Revenue Fund in the State treasury; money
| ||
collected pursuant to subsections (c) and (d) of Section 201 of | ||
this Act
shall be paid into the Personal Property Tax | ||
Replacement Fund, a special
fund in the State Treasury; and | ||
money collected under Section 2505-650 of the
Department of | ||
Revenue Law (20 ILCS 2505/2505-650) shall be paid
into the
| ||
Child Support Enforcement Trust Fund, a special fund outside | ||
the State
Treasury, or
to the State
Disbursement Unit | ||
established under Section 10-26 of the Illinois Public Aid
| ||
Code, as directed by the Department of Healthcare and Family | ||
Services.
| ||
(b) Local Governmental Distributive Fund.
| ||
Beginning August 1, 1969, and continuing through June 30, | ||
1994, the Treasurer
shall transfer each month from the General | ||
Revenue Fund to a special fund in
the State treasury, to be | ||
known as the "Local Government Distributive Fund", an
amount |
equal to 1/12 of the net revenue realized from the tax imposed | ||
by
subsections (a) and (b) of Section 201 of this Act during | ||
the preceding month.
Beginning July 1, 1994, and continuing | ||
through June 30, 1995, the Treasurer
shall transfer each month | ||
from the General Revenue Fund to the Local Government
| ||
Distributive Fund an amount equal to 1/11 of the net revenue | ||
realized from the
tax imposed by subsections (a) and (b) of | ||
Section 201 of this Act during the
preceding month. Beginning | ||
July 1, 1995, the Treasurer shall transfer each
month from the | ||
General Revenue Fund to the Local Government Distributive Fund
| ||
an amount equal to the net of (i) 1/10 of the net revenue | ||
realized from the
tax imposed by
subsections (a) and (b) of | ||
Section 201 of the Illinois Income Tax Act during
the preceding | ||
month
(ii) minus, beginning July 1, 2003 and ending June 30, | ||
2004, $6,666,666, and
beginning July 1,
2004,
zero. Net revenue | ||
realized for a month shall be defined as the
revenue from the | ||
tax imposed by subsections (a) and (b) of Section 201 of this
| ||
Act which is deposited in the General Revenue Fund, the | ||
Educational Assistance
Fund and the Income Tax Surcharge Local | ||
Government Distributive Fund during the
month minus the amount | ||
paid out of the General Revenue Fund in State warrants
during | ||
that same month as refunds to taxpayers for overpayment of | ||
liability
under the tax imposed by subsections (a) and (b) of | ||
Section 201 of this Act.
| ||
(c) Deposits Into Income Tax Refund Fund.
| ||
(1) Beginning on January 1, 1989 and thereafter, the |
Department shall
deposit a percentage of the amounts | ||
collected pursuant to subsections (a)
and (b)(1), (2), and | ||
(3), of Section 201 of this Act into a fund in the State
| ||
treasury known as the Income Tax Refund Fund. The | ||
Department shall deposit 6%
of such amounts during the | ||
period beginning January 1, 1989 and ending on June
30, | ||
1989. Beginning with State fiscal year 1990 and for each | ||
fiscal year
thereafter, the percentage deposited into the | ||
Income Tax Refund Fund during a
fiscal year shall be the | ||
Annual Percentage. For fiscal years 1999 through
2001, the | ||
Annual Percentage shall be 7.1%.
For fiscal year 2003, the | ||
Annual Percentage shall be 8%.
For fiscal year 2004, the | ||
Annual Percentage shall be 11.7%. Upon the effective date | ||
of this amendatory Act of the 93rd General Assembly, the | ||
Annual Percentage shall be 10% for fiscal year 2005. For | ||
fiscal year 2006, the Annual Percentage shall be 9.75%. For | ||
fiscal
year 2007, the Annual Percentage shall be 9.75%. For | ||
fiscal year 2008, the Annual Percentage shall be 7.75%. For | ||
all other
fiscal years, the
Annual Percentage shall be | ||
calculated as a fraction, the numerator of which
shall be | ||
the amount of refunds approved for payment by the | ||
Department during
the preceding fiscal year as a result of | ||
overpayment of tax liability under
subsections (a) and | ||
(b)(1), (2), and (3) of Section 201 of this Act plus the
| ||
amount of such refunds remaining approved but unpaid at the | ||
end of the
preceding fiscal year, minus the amounts |
transferred into the Income Tax
Refund Fund from the | ||
Tobacco Settlement Recovery Fund, and
the denominator of | ||
which shall be the amounts which will be collected pursuant
| ||
to subsections (a) and (b)(1), (2), and (3) of Section 201 | ||
of this Act during
the preceding fiscal year; except that | ||
in State fiscal year 2002, the Annual
Percentage shall in | ||
no event exceed 7.6%. The Director of Revenue shall
certify | ||
the Annual Percentage to the Comptroller on the last | ||
business day of
the fiscal year immediately preceding the | ||
fiscal year for which it is to be
effective.
| ||
(2) Beginning on January 1, 1989 and thereafter, the | ||
Department shall
deposit a percentage of the amounts | ||
collected pursuant to subsections (a)
and (b)(6), (7), and | ||
(8), (c) and (d) of Section 201
of this Act into a fund in | ||
the State treasury known as the Income Tax
Refund Fund. The | ||
Department shall deposit 18% of such amounts during the
| ||
period beginning January 1, 1989 and ending on June 30, | ||
1989. Beginning
with State fiscal year 1990 and for each | ||
fiscal year thereafter, the
percentage deposited into the | ||
Income Tax Refund Fund during a fiscal year
shall be the | ||
Annual Percentage. For fiscal years 1999, 2000, and 2001, | ||
the
Annual Percentage shall be 19%.
For fiscal year 2003, | ||
the Annual Percentage shall be 27%. For fiscal year
2004, | ||
the Annual Percentage shall be 32%.
Upon the effective date | ||
of this amendatory Act of the 93rd General Assembly, the | ||
Annual Percentage shall be 24% for fiscal year 2005.
For |
fiscal year 2006, the Annual Percentage shall be 20%. For | ||
fiscal
year 2007, the Annual Percentage shall be 17.5%. For | ||
fiscal year 2008, the Annual Percentage shall be 15.5%. For | ||
all other fiscal years, the Annual
Percentage shall be | ||
calculated
as a fraction, the numerator of which shall be | ||
the amount of refunds
approved for payment by the | ||
Department during the preceding fiscal year as
a result of | ||
overpayment of tax liability under subsections (a) and | ||
(b)(6),
(7), and (8), (c) and (d) of Section 201 of this | ||
Act plus the
amount of such refunds remaining approved but | ||
unpaid at the end of the
preceding fiscal year, and the | ||
denominator of
which shall be the amounts which will be | ||
collected pursuant to subsections (a)
and (b)(6), (7), and | ||
(8), (c) and (d) of Section 201 of this Act during the
| ||
preceding fiscal year; except that in State fiscal year | ||
2002, the Annual
Percentage shall in no event exceed 23%. | ||
The Director of Revenue shall
certify the Annual Percentage | ||
to the Comptroller on the last business day of
the fiscal | ||
year immediately preceding the fiscal year for which it is | ||
to be
effective.
| ||
(3) The Comptroller shall order transferred and the | ||
Treasurer shall
transfer from the Tobacco Settlement | ||
Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | ||
in January, 2001, (ii) $35,000,000 in January, 2002, and
| ||
(iii) $35,000,000 in January, 2003.
| ||
(d) Expenditures from Income Tax Refund Fund.
|
(1) Beginning January 1, 1989, money in the Income Tax | ||
Refund Fund
shall be expended exclusively for the purpose | ||
of paying refunds resulting
from overpayment of tax | ||
liability under Section 201 of this Act, for paying
rebates | ||
under Section 208.1 in the event that the amounts in the | ||
Homeowners'
Tax Relief Fund are insufficient for that | ||
purpose,
and for
making transfers pursuant to this | ||
subsection (d).
| ||
(2) The Director shall order payment of refunds | ||
resulting from
overpayment of tax liability under Section | ||
201 of this Act from the
Income Tax Refund Fund only to the | ||
extent that amounts collected pursuant
to Section 201 of | ||
this Act and transfers pursuant to this subsection (d)
and | ||
item (3) of subsection (c) have been deposited and retained | ||
in the
Fund.
| ||
(3) As soon as possible after the end of each fiscal | ||
year, the Director
shall
order transferred and the State | ||
Treasurer and State Comptroller shall
transfer from the | ||
Income Tax Refund Fund to the Personal Property Tax
| ||
Replacement Fund an amount, certified by the Director to | ||
the Comptroller,
equal to the excess of the amount | ||
collected pursuant to subsections (c) and
(d) of Section | ||
201 of this Act deposited into the Income Tax Refund Fund
| ||
during the fiscal year over the amount of refunds resulting | ||
from
overpayment of tax liability under subsections (c) and | ||
(d) of Section 201
of this Act paid from the Income Tax |
Refund Fund during the fiscal year.
| ||
(4) As soon as possible after the end of each fiscal | ||
year, the Director shall
order transferred and the State | ||
Treasurer and State Comptroller shall
transfer from the | ||
Personal Property Tax Replacement Fund to the Income Tax
| ||
Refund Fund an amount, certified by the Director to the | ||
Comptroller, equal
to the excess of the amount of refunds | ||
resulting from overpayment of tax
liability under | ||
subsections (c) and (d) of Section 201 of this Act paid
| ||
from the Income Tax Refund Fund during the fiscal year over | ||
the amount
collected pursuant to subsections (c) and (d) of | ||
Section 201 of this Act
deposited into the Income Tax | ||
Refund Fund during the fiscal year.
| ||
(4.5) As soon as possible after the end of fiscal year | ||
1999 and of each
fiscal year
thereafter, the Director shall | ||
order transferred and the State Treasurer and
State | ||
Comptroller shall transfer from the Income Tax Refund Fund | ||
to the General
Revenue Fund any surplus remaining in the | ||
Income Tax Refund Fund as of the end
of such fiscal year; | ||
excluding for fiscal years 2000, 2001, and 2002
amounts | ||
attributable to transfers under item (3) of subsection (c) | ||
less refunds
resulting from the earned income tax credit.
| ||
(5) This Act shall constitute an irrevocable and | ||
continuing
appropriation from the Income Tax Refund Fund | ||
for the purpose of paying
refunds upon the order of the | ||
Director in accordance with the provisions of
this Section.
|
(e) Deposits into the Education Assistance Fund and the | ||
Income Tax
Surcharge Local Government Distributive Fund.
| ||
On July 1, 1991, and thereafter, of the amounts collected | ||
pursuant to
subsections (a) and (b) of Section 201 of this Act, | ||
minus deposits into the
Income Tax Refund Fund, the Department | ||
shall deposit 7.3% into the
Education Assistance Fund in the | ||
State Treasury. Beginning July 1, 1991,
and continuing through | ||
January 31, 1993, of the amounts collected pursuant to
| ||
subsections (a) and (b) of Section 201 of the Illinois Income | ||
Tax Act, minus
deposits into the Income Tax Refund Fund, the | ||
Department shall deposit 3.0%
into the Income Tax Surcharge | ||
Local Government Distributive Fund in the State
Treasury. | ||
Beginning February 1, 1993 and continuing through June 30, | ||
1993, of
the amounts collected pursuant to subsections (a) and | ||
(b) of Section 201 of the
Illinois Income Tax Act, minus | ||
deposits into the Income Tax Refund Fund, the
Department shall | ||
deposit 4.4% into the Income Tax Surcharge Local Government
| ||
Distributive Fund in the State Treasury. Beginning July 1, | ||
1993, and
continuing through June 30, 1994, of the amounts | ||
collected under subsections
(a) and (b) of Section 201 of this | ||
Act, minus deposits into the Income Tax
Refund Fund, the | ||
Department shall deposit 1.475% into the Income Tax Surcharge
| ||
Local Government Distributive Fund in the State Treasury.
| ||
(Source: P.A. 93-32, eff. 6-20-03; 93-839, eff. 7-30-04; 94-91, | ||
eff. 7-1-05; 94-839, eff. 6-6-06.)
|
(35 ILCS 5/1001) (from Ch. 120, par. 10-1001)
| ||
Sec. 1001. Failure to File Tax Returns.
| ||
(a) Failure to file tax return. In case of failure to file | ||
any
tax return required under this Act on the date prescribed | ||
therefor,
(determined with regard to any extensions of time for | ||
filing) there shall
be added as a penalty the amount prescribed | ||
by Section 3-3 of the Uniform
Penalty and Interest Act.
| ||
(b) Failure to disclose reportable transaction. Any | ||
taxpayer who fails to include on any return or statement any | ||
information with respect to a reportable transaction that is | ||
required under Section 501(b) of this Act to be included with | ||
such return or statement shall pay a penalty in the amount | ||
determined under this subsection who fails to comply with the | ||
requirements of Section 501(b) of this Act shall pay a penalty | ||
in the amount determined under this subsection . Such penalty | ||
shall be deemed assessed upon the date of filing of the return | ||
for the taxable year in which the taxpayer participates in the | ||
reportable transaction. A taxpayer shall not be considered to | ||
have complied with the requirements of Section 501(b) of this | ||
Act unless the disclosure statement filed with the Department | ||
includes all of the information required to be disclosed with | ||
respect to a reportable transaction pursuant to Section 6011 of | ||
the Internal Revenue Code, the regulations promulgated under | ||
that statute, Treasury Regulations Section 1.6011-4 (26 CFR | ||
1.6011-4) and regulations promulgated by the Department under | ||
Section 501(b) of this Act. |
(1) Amount of penalty. Except as provided in paragraph | ||
(2), the amount of the penalty under this subsection shall | ||
be $15,000 for each failure to comply with the requirements | ||
of Section 501(b). | ||
(2) Increase in penalty for listed transactions. In the | ||
case of a failure to comply with the requirements of | ||
Section 501(b) with respect to a "listed transaction", the | ||
penalty under this subsection shall be $30,000 for each | ||
failure. | ||
(3) Authority to rescind penalty. The Department may | ||
rescind all or any portion of any penalty imposed by this | ||
subsection with respect to any violation, if any of the | ||
following apply : | ||
(A) the violation is with respect to a reportable | ||
transaction other than a listed transaction, and | ||
(B) rescinding the penalty would promote | ||
compliance with the requirements of this Act and | ||
effective tax administration. | ||
(A) It is determined that failure to comply did not | ||
jeopardize the best interests of the State and is not | ||
due to any willful neglect or any intent not to comply; | ||
(B) The person on whom the penalty is imposed has a | ||
history of complying with the requirements of this Act; | ||
(C) It is shown that the violation is due to an | ||
unintentional mistake of fact; | ||
(D) Imposing the penalty would be against equity |
and good conscience; | ||
(E) Rescinding the penalty would promote | ||
compliance with the requirements of this Act and | ||
effective tax administration; or | ||
(F) The taxpayer can show that there was a | ||
reasonable cause for the failure to disclose and that | ||
the taxpayer acted in good faith. | ||
A determination made under this subparagraph (3) may be | ||
reviewed in any administrative or judicial proceeding. | ||
(4) Coordination with other penalties. The penalty | ||
imposed by this subsection is in addition to any penalty | ||
imposed by this Act or the Uniform Penalty and Interest | ||
Act. The doubling of penalties and interest authorized by | ||
the Illinois Tax Delinquency Amnesty Act (P.A. 93-26) are | ||
not applicable to the reportable penalties under | ||
subsection (b). | ||
(c) The total penalty imposed under subsection (b) of this | ||
Section with respect to any taxable year shall not exceed 10% | ||
of the increase in net income (or reduction in Illinois net | ||
loss under Section 207 of this Act) that would result had the | ||
taxpayer not participated in any reportable transaction | ||
affecting its net income for such taxable year. | ||
(Source: P.A. 93-840, eff. 7-30-04.)
| ||
(35 ILCS 5/1007) | ||
Sec. 1007. Failure to register tax shelter or maintain |
list.
| ||
(a) Penalty Imposed. Any person that fails to comply with | ||
the requirements of Section 1405.5 or Section 1405.6 shall | ||
incur a penalty as provided in subsection (b) this Section . A | ||
person shall not be in compliance with the requirements of | ||
Section 1405.5 unless and until the required return | ||
registration has been filed and that return contains all of the | ||
information required to be included by the Secretary under | ||
federal law. with such registration under Section 6111 of the | ||
Internal Revenue Code or such Section 1405.5. A person shall | ||
not be in compliance with the requirements of Section 1405.6 | ||
unless, at the time the required list is made available to the | ||
Department, such list contains all of the information required | ||
to be maintained under Section 6112 of the Internal Revenue | ||
Code or such Section 1405.6. | ||
(b) Amount of Penalty. The following penalties apply: | ||
(1) Except as provided in paragraph (2), the penalty | ||
imposed under subsection (a) with respect to any failure is | ||
$15,000. In the case of each failure to comply with the | ||
requirements of subsection (a), subsection (b), or | ||
subsection (e) of Section 1405.5, the penalty shall be | ||
$15,000. | ||
(2) If the failure is with respect to a listed | ||
transaction under subsection (c) of Section 1405.5, the | ||
penalty shall be $100,000. | ||
(3) In the case of each failure to comply with the |
requirements of subsection (a) or subsection (b) of Section | ||
1405.6, the penalty shall be $15,000. | ||
(4) If the failure is with respect to a listed | ||
transaction under subsection (c) of Section 1405.6, the | ||
penalty shall be $100,000. | ||
(c) Authority to rescind penalty. The Department may | ||
rescind all or any portion of any penalty imposed by this | ||
subsection with respect to any violation, if | ||
(1) the violation is with respect to a reportable | ||
transaction other than a listed transaction, and | ||
(2) rescinding the penalty would promote compliance | ||
with the requirements of this Act and effective tax | ||
administration. The Director of the Board of Appeals may | ||
rescind all or any portion of any penalty imposed by this | ||
Section with respect to any violation, if any of the | ||
following apply: | ||
(1) It is determined that failure to comply did not | ||
jeopardize the best interests of the State and is not due | ||
to any willful neglect or any intent not to comply; | ||
(2) The person on whom the penalty is imposed has a | ||
history of complying with the requirements of this Act; | ||
(3) It is shown that the violation is due to an | ||
unintentional mistake of fact; | ||
(4) Imposing the penalty would be against equity and | ||
good conscience; | ||
(5) Rescinding the penalty would promote compliance |
with the requirements of this Act and effective tax | ||
administration; or | ||
(6) The taxpayer can show that there was reasonable | ||
cause for the failure to disclose and that the taxpayer | ||
acted in good faith.
| ||
(d) Coordination with other penalties. The penalty imposed | ||
by this Section is in addition to any penalty imposed by this | ||
Act or the Uniform Penalty and Interest Act.
| ||
(Source: P.A. 93-840, eff. 7-30-04.) | ||
(35 ILCS 5/1405.5)
| ||
Sec. 1405.5. Registration of tax shelters. | ||
(a) Federal tax shelter. Any material advisor tax shelter | ||
organizer required to make a return register a tax shelter | ||
under Section 6111 of the Internal Revenue Code with respect to | ||
a reportable transaction shall send a duplicate of the return | ||
federal registration information to the Department not later | ||
than the day on which the return registration is required to be | ||
filed under federal law. Any person required to register under | ||
Section 6111 of the Internal Revenue Code who receives a tax | ||
registration number from the Secretary of the Treasury shall, | ||
within 30 days after request by the Department, file a | ||
statement of that registration number. | ||
(b) (Blank). Additional requirements for listed | ||
transactions. In addition to the requirements of subsection | ||
(a), for any transactions entered into on or after February 28, |
2000 that become listed transactions (as defined under Treasury | ||
Regulations Section 1.6011-4) at any time, those transactions | ||
shall be registered with the Department (in the form and manner | ||
prescribed by the Department) by the later of (i) 60 days after | ||
entering into the transaction, (ii) 60 days after the | ||
transaction becomes a listed transaction, or (iii) December 31, | ||
2004. | ||
(c) Transactions Tax shelters subject to this Section. The | ||
provisions of this Section apply to any reportable transaction | ||
having a nexus with this State. For returns that must be filed | ||
under this Section on or after January 1, 2008, a reportable | ||
transaction has nexus with this State if, at the time the | ||
transaction is entered into, the transaction has one or more | ||
investors that is an Illinois taxpayer. For returns that must | ||
be filed under this Section prior to January 1, 2008, a tax | ||
shelter has a nexus with this State if it herein described that | ||
additionally satisfies any of the following conditions: (1) is | ||
organized in this State; (2) is doing business in this State; | ||
or (3) is deriving income from sources in this State. | ||
(d) (Blank). Tax shelter identification number.
Any person | ||
required to file a return under this Act and required to | ||
include on the person's federal tax return a tax shelter | ||
identification number pursuant to Section 6111 of the Internal | ||
Revenue Code shall furnish such number upon filing of the | ||
person's Illinois return.
| ||
(Source: P.A. 93-840, eff. 7-30-04.) |
(35 ILCS 5/1405.6)
| ||
Sec. 1405.6. Investor lists. | ||
(a) Federal abusive tax shelter. Any person required to | ||
maintain a list under Section 6112 of the Internal Revenue Code | ||
and Treasury Regulations Section 301.6112-1 with respect to a | ||
potentially abusive tax shelter shall furnish a duplicate of | ||
such list to the Department not later than the earlier of the | ||
time such list is required to be furnished to the Internal | ||
Revenue Service for inspection under Section 6112 of the | ||
Internal Revenue Code or the date of written request by the | ||
Department under federal income tax law . | ||
The list required under this Section shall include the same | ||
information required with respect to a potentially abusive tax | ||
shelter under Treasury Regulations Section 301.6112-1 and any | ||
other information as the Department may require. | ||
(b) (Blank). Additional requirements for listed | ||
transactions. For transactions entered into on or after | ||
February 28, 2000 that become listed transactions (as defined | ||
under Treasury Regulations Section 1.6011-4) at any time, the | ||
list shall be furnished to the Department by the later of (i) | ||
60 days after entering into the transaction, (ii) 60 days after | ||
the transaction becomes a listed transaction, or (iii) December | ||
31, 2004. | ||
(c) Transactions subject to this Section. The provisions of | ||
this Section apply to any reportable transaction having a nexus |
with this State. For lists that must be filed with the | ||
Department on or after January 1, 2008, a reportable | ||
transaction has nexus with this State if, at the time the | ||
transaction is entered into, the transaction has one or more | ||
investors that is an Illinois taxpayer. For lists that must be | ||
filed with the Department prior to January 1, 2008, a | ||
reportable transaction has nexus with this State if, at the | ||
time the transaction is: (d) Tax Shelters subject to this | ||
Section. The provisions of this Section apply to any tax | ||
shelter herein described that additionally satisfies any of the | ||
following conditions: | ||
(1) Organized in this State; | ||
(2) Doing Business in this State; or | ||
(3) Deriving income from sources in this State.
| ||
(Source: P.A. 93-840, eff. 7-30-04.)
| ||
(35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
| ||
Sec. 1501. Definitions.
| ||
(a) In general. When used in this Act, where not
otherwise | ||
distinctly expressed or manifestly incompatible with the | ||
intent
thereof:
| ||
(1) Business income. The term "business income" means | ||
all income that may be treated as apportionable business | ||
income under the Constitution of the United States. | ||
Business income is net of the deductions allocable thereto. | ||
Such term does not include compensation
or the deductions |
allocable thereto.
For each taxable year beginning on or | ||
after January 1, 2003, a taxpayer may
elect to treat all | ||
income other than compensation as business income. This
| ||
election shall be made in accordance with rules adopted by | ||
the Department and,
once made, shall be irrevocable.
| ||
(1.5) Captive real estate investment trust:
| ||
(A) The term "captive real estate investment trust" | ||
means a corporation, trust, or association:
| ||
(i) that is considered a real estate investment | ||
trust for the taxable year under Section 856 of the | ||
Internal Revenue Code;
| ||
(ii) the certificates of beneficial interest or | ||
shares of which are that is not regularly traded on an | ||
established securities market; and | ||
(iii) of which more than 50% of the voting power or | ||
value of the beneficial interest or shares, at any time | ||
during the last half of the taxable year, is owned or | ||
controlled, directly , or indirectly, or | ||
constructively, by a single person entity that is | ||
subject to the provisions of Subchapter C of Chapter 1 | ||
of the Internal Revenue Code . | ||
(B) The term "captive real estate investment trust" | ||
does not include: | ||
(i) a real estate investment trust corporation, | ||
trust, or association of which more than 50% of the | ||
voting power or value of the beneficial interest or |
shares is owned or controlled, directly, indirectly, | ||
or constructively, at any time during which the | ||
corporation, trust, or association satisfies item | ||
(A)(iii) of this subsection (1.5), by: | ||
(a) a real estate investment trust, other than | ||
a captive real estate investment trust described | ||
in item (A) of this subsection ; | ||
(b) a person who is exempt from taxation under | ||
Section 501 of the Internal Revenue Code , and who | ||
is not required to treat income received from the | ||
real estate investment trust as unrelated business | ||
taxable income under Section 512 of the Internal | ||
Revenue Code ; | ||
(c) a listed Australian property trust, if no | ||
more than 50% of the voting power or value of the | ||
beneficial interest or shares of that trust, at any | ||
time during the last half of the taxable year, is | ||
owned or controlled, directly or indirectly, by a | ||
single person; or | ||
(d) an entity organized as a trust, provided a | ||
listed Australian property trust described in | ||
subparagraph (c) owns or controls, directly or | ||
indirectly, or constructively, 75% or more of the | ||
voting power or value of the beneficial interests | ||
or shares of such entity; or | ||
(ii) during its first taxable year for which it |
elects to be treated as a real estate investment trust | ||
under Section 856(c)(1) of the Internal Revenue Code, a | ||
real estate investment trust the certificates of | ||
beneficial interest or shares of which are not | ||
regularly traded on an established securities market, | ||
but only if the certificates of beneficial interest or | ||
shares of the real estate investment trust are | ||
regularly traded on an established securities market | ||
prior to the earlier of the due date (including | ||
extensions) for filing its return under this Act for | ||
that first taxable year or the date it actually files | ||
that return. | ||
(c) a listed Australian property trust; or | ||
(d) a real estate investment trust that, | ||
subject to rules of the Secretary of State, is | ||
intended to become regularly traded on an | ||
established securities market and that satisfies | ||
the requirements of Sections 856(A)(5) and | ||
856(A)(6) of the Internal Revenue Code by reason of | ||
Section 856(H)(2) of the Internal Revenue Code. | ||
(C) For the purposes of this subsection (1.5), the | ||
constructive ownership rules prescribed under Section | ||
318(a) 318(A) of the Internal Revenue Code, as modified by | ||
Section 856(d)(5) 856(D)(5) of the Internal Revenue Code, | ||
apply in determining the ownership of stock, assets, or net | ||
profits of any person.
|
(2) Commercial domicile. The term "commercial | ||
domicile" means the
principal
place from which the trade or | ||
business of the taxpayer is directed or managed.
| ||
(3) Compensation. The term "compensation" means wages, | ||
salaries,
commissions
and any other form of remuneration | ||
paid to employees for personal services.
| ||
(4) Corporation. The term "corporation" includes | ||
associations, joint-stock
companies, insurance companies | ||
and cooperatives. Any entity, including a
limited | ||
liability company formed under the Illinois Limited | ||
Liability Company
Act, shall be treated as a corporation if | ||
it is so classified for federal
income tax purposes.
| ||
(5) Department. The term "Department" means the | ||
Department of Revenue of
this State.
| ||
(6) Director. The term "Director" means the Director of | ||
Revenue of this
State.
| ||
(7) Fiduciary. The term "fiduciary" means a guardian, | ||
trustee, executor,
administrator, receiver, or any person | ||
acting in any fiduciary capacity for any
person.
| ||
(8) Financial organization.
| ||
(A) The term "financial organization" means
any
| ||
bank, bank holding company, trust company, savings | ||
bank, industrial bank,
land bank, safe deposit | ||
company, private banker, savings and loan association,
| ||
building and loan association, credit union, currency | ||
exchange, cooperative
bank, small loan company, sales |
finance company, investment company, or any
person | ||
which is owned by a bank or bank holding company. For | ||
the purpose of
this Section a "person" will include | ||
only those persons which a bank holding
company may | ||
acquire and hold an interest in, directly or | ||
indirectly, under the
provisions of the Bank Holding | ||
Company Act of 1956 (12 U.S.C. 1841, et seq.),
except | ||
where interests in any person must be disposed of | ||
within certain
required time limits under the Bank | ||
Holding Company Act of 1956.
| ||
(B) For purposes of subparagraph (A) of this | ||
paragraph, the term
"bank" includes (i) any entity that | ||
is regulated by the Comptroller of the
Currency under | ||
the National Bank Act, or by the Federal Reserve Board, | ||
or by
the
Federal Deposit Insurance Corporation and | ||
(ii) any federally or State chartered
bank
operating as | ||
a credit card bank.
| ||
(C) For purposes of subparagraph (A) of this | ||
paragraph, the term
"sales finance company" has the | ||
meaning provided in the following item (i) or
(ii):
| ||
(i) A person primarily engaged in one or more | ||
of the following
businesses: the business of | ||
purchasing customer receivables, the business
of | ||
making loans upon the security of customer | ||
receivables, the
business of making loans for the | ||
express purpose of funding purchases of
tangible |
personal property or services by the borrower, or | ||
the business of
finance leasing. For purposes of | ||
this item (i), "customer receivable"
means:
| ||
(a) a retail installment contract or | ||
retail charge agreement within
the
meaning
of | ||
the Sales Finance Agency Act, the Retail | ||
Installment Sales Act, or the
Motor Vehicle | ||
Retail Installment Sales Act;
| ||
(b) an installment, charge, credit, or | ||
similar contract or agreement
arising from
the | ||
sale of tangible personal property or services | ||
in a transaction involving
a deferred payment | ||
price payable in one or more installments | ||
subsequent
to the sale; or
| ||
(c) the outstanding balance of a contract | ||
or agreement described in
provisions
(a) or (b) | ||
of this item (i).
| ||
A customer receivable need not provide for | ||
payment of interest on
deferred
payments. A sales | ||
finance company may purchase a customer receivable | ||
from, or
make a loan secured by a customer | ||
receivable to, the seller in the original
| ||
transaction or to a person who purchased the | ||
customer receivable directly or
indirectly from | ||
that seller.
| ||
(ii) A corporation meeting each of the |
following criteria:
| ||
(a) the corporation must be a member of an | ||
"affiliated group" within
the
meaning of | ||
Section 1504(a) of the Internal Revenue Code, | ||
determined
without regard to Section 1504(b) | ||
of the Internal Revenue Code;
| ||
(b) more than 50% of the gross income of | ||
the corporation for the
taxable
year
must be | ||
interest income derived from qualifying loans. | ||
A "qualifying
loan" is a loan made to a member | ||
of the corporation's affiliated group that
| ||
originates customer receivables (within the | ||
meaning of item (i)) or to whom
customer | ||
receivables originated by a member of the | ||
affiliated group have been
transferred, to
the | ||
extent the average outstanding balance of | ||
loans from that corporation
to members of its | ||
affiliated group during the taxable year do not | ||
exceed
the limitation amount for that | ||
corporation. The "limitation amount" for a
| ||
corporation is the average outstanding | ||
balances during the taxable year of
customer | ||
receivables (within the meaning of item (i)) | ||
originated by
all members of the affiliated | ||
group.
If the average outstanding balances of | ||
the
loans made by a corporation to members of |
its affiliated group exceed the
limitation | ||
amount, the interest income of that | ||
corporation from qualifying
loans shall be | ||
equal to its interest income from loans to | ||
members of its
affiliated groups times a | ||
fraction equal to the limitation amount | ||
divided by
the average outstanding balances of | ||
the loans made by that corporation to
members | ||
of its affiliated group;
| ||
(c) the total of all shareholder's equity | ||
(including, without
limitation,
paid-in
| ||
capital on common and preferred stock and | ||
retained earnings) of the
corporation plus the | ||
total of all of its loans, advances, and other
| ||
obligations payable or owed to members of its | ||
affiliated group may not
exceed 20% of the | ||
total assets of the corporation at any time | ||
during the tax
year; and
| ||
(d) more than 50% of all interest-bearing | ||
obligations of the
affiliated group payable to | ||
persons outside the group determined in | ||
accordance
with generally accepted accounting | ||
principles must be obligations of the
| ||
corporation.
| ||
This amendatory Act of the 91st General Assembly is | ||
declaratory of
existing
law.
|
(D) Subparagraphs
(B) and (C) of this paragraph are | ||
declaratory of
existing law and apply retroactively, | ||
for all tax years beginning on or before
December 31, | ||
1996,
to all original returns, to all amended returns | ||
filed no later than 30
days after the effective date of | ||
this amendatory Act of 1996, and to all
notices issued | ||
on or before the effective date of this amendatory Act | ||
of 1996
under subsection (a) of Section 903, subsection | ||
(a) of Section 904,
subsection (e) of Section 909, or | ||
Section 912.
A taxpayer that is a "financial | ||
organization" that engages in any transaction
with an | ||
affiliate shall be a "financial organization" for all | ||
purposes of this
Act.
| ||
(E) For all tax years beginning on or
before | ||
December 31, 1996, a taxpayer that falls within the | ||
definition
of a
"financial organization" under | ||
subparagraphs (B) or (C) of this paragraph, but
who | ||
does
not fall within the definition of a "financial | ||
organization" under the Proposed
Regulations issued by | ||
the Department of Revenue on July 19, 1996, may
| ||
irrevocably elect to apply the Proposed Regulations | ||
for all of those years as
though the Proposed | ||
Regulations had been lawfully promulgated, adopted, | ||
and in
effect for all of those years. For purposes of | ||
applying subparagraphs (B) or
(C) of
this
paragraph to | ||
all of those years, the election allowed by this |
subparagraph
applies only to the taxpayer making the | ||
election and to those members of the
taxpayer's unitary | ||
business group who are ordinarily required to | ||
apportion
business income under the same subsection of | ||
Section 304 of this Act as the
taxpayer making the | ||
election. No election allowed by this subparagraph | ||
shall
be made under a claim
filed under subsection (d) | ||
of Section 909 more than 30 days after the
effective | ||
date of this amendatory Act of 1996.
| ||
(F) Finance Leases. For purposes of this | ||
subsection, a finance lease
shall be treated as a loan | ||
or other extension of credit, rather than as a
lease,
| ||
regardless of how the transaction is characterized for | ||
any other purpose,
including the purposes of any | ||
regulatory agency to which the lessor is subject.
A | ||
finance lease is any transaction in the form of a lease | ||
in which the lessee
is treated as the owner of the | ||
leased asset entitled to any deduction for
| ||
depreciation allowed under Section 167 of the Internal | ||
Revenue Code.
| ||
(9) Fiscal year. The term "fiscal year" means an | ||
accounting period of
12 months ending on the last day of | ||
any month other than December.
| ||
(9.5) Fixed place of business. The term "fixed place of | ||
business" has the same meaning as that term is given in | ||
Section 864 of the Internal Revenue Code and the related |
Treasury regulations.
| ||
(10) Includes and including. The terms "includes" and | ||
"including" when
used in a definition contained in this Act | ||
shall not be deemed to exclude
other things otherwise | ||
within the meaning of the term defined.
| ||
(11) Internal Revenue Code. The term "Internal Revenue | ||
Code" means the
United States Internal Revenue Code of 1954 | ||
or any successor law or laws
relating to federal income | ||
taxes in effect for the taxable year.
| ||
(11.5) Investment partnership. | ||
(A) The term "investment partnership" means any | ||
entity that is treated as a partnership for federal | ||
income tax purposes that meets the following | ||
requirements: | ||
(i) no less than 90% of the partnership's cost | ||
of its total assets consists of qualifying | ||
investment securities, deposits at banks or other | ||
financial institutions, and office space and | ||
equipment reasonably necessary to carry on its | ||
activities as an investment partnership; | ||
(ii) no less than 90% of its gross income | ||
consists of interest, dividends, and gains from | ||
the sale or exchange of qualifying investment | ||
securities; and
| ||
(iii) the partnership is not a dealer in | ||
qualifying investment securities. |
(B) For purposes of this paragraph (11.5), the term | ||
"qualifying investment securities" includes all of the | ||
following:
| ||
(i) common stock, including preferred or debt | ||
securities convertible into common stock, and | ||
preferred stock; | ||
(ii) bonds, debentures, and other debt | ||
securities; | ||
(iii) foreign and domestic currency deposits | ||
secured by federal, state, or local governmental | ||
agencies; | ||
(iv) mortgage or asset-backed securities | ||
secured by federal, state, or local governmental | ||
agencies; | ||
(v) repurchase agreements and loan | ||
participations; | ||
(vi) foreign currency exchange contracts and | ||
forward and futures contracts on foreign | ||
currencies; | ||
(vii) stock and bond index securities and | ||
futures contracts and other similar financial | ||
securities and futures contracts on those | ||
securities;
| ||
(viii) options for the purchase or sale of any | ||
of the securities, currencies, contracts, or | ||
financial instruments described in items (i) to |
(vii), inclusive;
| ||
(ix) regulated futures contracts;
| ||
(x) commodities (not described in Section | ||
1221(a)(1) of the Internal Revenue Code) or | ||
futures, forwards, and options with respect to | ||
such commodities, provided, however, that any item | ||
of a physical commodity to which title is actually | ||
acquired in the partnership's capacity as a dealer | ||
in such commodity shall not be a qualifying | ||
investment security;
| ||
(xi) derivatives; and
| ||
(xii) a partnership interest in another | ||
partnership that is an investment partnership.
| ||
(12) Mathematical error. The term "mathematical error" | ||
includes the
following types of errors, omissions, or | ||
defects in a return filed by a
taxpayer which prevents | ||
acceptance of the return as filed for processing:
| ||
(A) arithmetic errors or incorrect computations on | ||
the return or
supporting schedules;
| ||
(B) entries on the wrong lines;
| ||
(C) omission of required supporting forms or | ||
schedules or the omission
of the information in whole | ||
or in part called for thereon; and
| ||
(D) an attempt to claim, exclude, deduct, or | ||
improperly report, in a
manner
directly contrary to the | ||
provisions of the Act and regulations thereunder
any |
item of income, exemption, deduction, or credit.
| ||
(13) Nonbusiness income. The term "nonbusiness income" | ||
means all income
other than business income or | ||
compensation.
| ||
(14) Nonresident. The term "nonresident" means a | ||
person who is not a
resident.
| ||
(15) Paid, incurred and accrued. The terms "paid", | ||
"incurred" and
"accrued"
shall be construed according to | ||
the method of accounting upon the basis
of which the | ||
person's base income is computed under this Act.
| ||
(16) Partnership and partner. The term "partnership" | ||
includes a syndicate,
group, pool, joint venture or other | ||
unincorporated organization, through
or by means of which | ||
any business, financial operation, or venture is carried
| ||
on, and which is not, within the meaning of this Act, a | ||
trust or estate
or a corporation; and the term "partner" | ||
includes a member in such syndicate,
group, pool, joint | ||
venture or organization.
| ||
The term "partnership" includes any entity, including | ||
a limited
liability company formed under the Illinois
| ||
Limited Liability Company Act, classified as a partnership | ||
for federal income tax purposes.
| ||
The term "partnership" does not include a syndicate, | ||
group, pool,
joint venture, or other unincorporated | ||
organization established for the
sole purpose of playing | ||
the Illinois State Lottery.
|
(17) Part-year resident. The term "part-year resident" | ||
means an individual
who became a resident during the | ||
taxable year or ceased to be a resident
during the taxable | ||
year. Under Section 1501(a)(20)(A)(i) residence
commences | ||
with presence in this State for other than a temporary or | ||
transitory
purpose and ceases with absence from this State | ||
for other than a temporary or
transitory purpose. Under | ||
Section 1501(a)(20)(A)(ii) residence commences
with the | ||
establishment of domicile in this State and ceases with the
| ||
establishment of domicile in another State.
| ||
(18) Person. The term "person" shall be construed to | ||
mean and include
an individual, a trust, estate, | ||
partnership, association, firm, company,
corporation, | ||
limited liability company, or fiduciary. For purposes of | ||
Section
1301 and 1302 of this Act, a "person" means (i) an | ||
individual, (ii) a
corporation, (iii) an officer, agent, or | ||
employee of a
corporation, (iv) a member, agent or employee | ||
of a partnership, or (v)
a member,
manager, employee, | ||
officer, director, or agent of a limited liability company
| ||
who in such capacity commits an offense specified in | ||
Section 1301 and 1302.
| ||
(18A) Records. The term "records" includes all data | ||
maintained by the
taxpayer, whether on paper, microfilm, | ||
microfiche, or any type of
machine-sensible data | ||
compilation.
| ||
(19) Regulations. The term "regulations" includes |
rules promulgated and
forms prescribed by the Department.
| ||
(20) Resident. The term "resident" means:
| ||
(A) an individual (i) who is
in this State for | ||
other than a temporary or transitory purpose during the
| ||
taxable year; or (ii) who is domiciled in this State | ||
but is absent from
the State for a temporary or | ||
transitory purpose during the taxable year;
| ||
(B) The estate of a decedent who at his or her | ||
death was domiciled in
this
State;
| ||
(C) A trust created by a will of a decedent who at | ||
his death was
domiciled
in this State; and
| ||
(D) An irrevocable trust, the grantor of which was | ||
domiciled in this
State
at the time such trust became | ||
irrevocable. For purpose of this subparagraph,
a trust | ||
shall be considered irrevocable to the extent that the | ||
grantor is
not treated as the owner thereof under | ||
Sections 671 through 678 of the Internal
Revenue Code.
| ||
(21) Sales. The term "sales" means all gross receipts | ||
of the taxpayer
not allocated under Sections 301, 302 and | ||
303.
| ||
(22) State. The term "state" when applied to a | ||
jurisdiction other than
this State means any state of the | ||
United States, the District of Columbia,
the Commonwealth | ||
of Puerto Rico, any Territory or Possession of the United
| ||
States, and any foreign country, or any political | ||
subdivision of any of the
foregoing. For purposes of the |
foreign tax credit under Section 601, the
term "state" | ||
means any state of the United States, the District of | ||
Columbia,
the Commonwealth of Puerto Rico, and any | ||
territory or possession of the
United States, or any | ||
political subdivision of any of the foregoing,
effective | ||
for tax years ending on or after December 31, 1989.
| ||
(23) Taxable year. The term "taxable year" means the | ||
calendar year, or
the fiscal year ending during such | ||
calendar year, upon the basis of which
the base income is | ||
computed under this Act. "Taxable year" means, in the
case | ||
of a return made for a fractional part of a year under the | ||
provisions
of this Act, the period for which such return is | ||
made.
| ||
(24) Taxpayer. The term "taxpayer" means any person | ||
subject to the tax
imposed by this Act.
| ||
(25) International banking facility. The term | ||
international banking
facility shall have the same meaning | ||
as is set forth in the Illinois Banking
Act or as is set | ||
forth in the laws of the United States or regulations of
| ||
the Board of Governors of the Federal Reserve System.
| ||
(26) Income Tax Return Preparer.
| ||
(A) The term "income tax return preparer"
means any | ||
person who prepares for compensation, or who employs | ||
one or more
persons to prepare for compensation, any | ||
return of tax imposed by this Act
or any claim for | ||
refund of tax imposed by this Act. The preparation of a
|
substantial portion of a return or claim for refund | ||
shall be treated as
the preparation of that return or | ||
claim for refund.
| ||
(B) A person is not an income tax return preparer | ||
if all he or she does
is
| ||
(i) furnish typing, reproducing, or other | ||
mechanical assistance;
| ||
(ii) prepare returns or claims for refunds for | ||
the employer by whom he
or she is regularly and | ||
continuously employed;
| ||
(iii) prepare as a fiduciary returns or claims | ||
for refunds for any
person; or
| ||
(iv) prepare claims for refunds for a taxpayer | ||
in response to any
notice
of deficiency issued to | ||
that taxpayer or in response to any waiver of
| ||
restriction after the commencement of an audit of | ||
that taxpayer or of another
taxpayer if a | ||
determination in the audit of the other taxpayer | ||
directly or
indirectly affects the tax liability | ||
of the taxpayer whose claims he or she is
| ||
preparing.
| ||
(27) Unitary business group. The term "unitary | ||
business group" means
a group of persons related through | ||
common ownership whose business activities
are integrated | ||
with, dependent upon and contribute to each other. The | ||
group
will not include those members whose business |
activity outside the United
States is 80% or more of any | ||
such member's total business activity; for
purposes of this | ||
paragraph and clause (a)(3)(B)(ii) of Section 304,
| ||
business
activity within the United States shall be | ||
measured by means of the factors
ordinarily applicable | ||
under subsections (a), (b), (c), (d), or (h)
of Section
304 | ||
except that, in the case of members ordinarily required to | ||
apportion
business income by means of the 3 factor formula | ||
of property, payroll and sales
specified in subsection (a) | ||
of Section 304, including the
formula as weighted in | ||
subsection (h) of Section 304, such members shall
not use | ||
the sales factor in the computation and the results of the | ||
property
and payroll factor computations of subsection (a) | ||
of Section 304 shall be
divided by 2 (by one if either
the | ||
property or payroll factor has a denominator of zero). The | ||
computation
required by the preceding sentence shall, in | ||
each case, involve the division of
the member's property, | ||
payroll, or revenue miles in the United States,
insurance | ||
premiums on property or risk in the United States, or | ||
financial
organization business income from sources within | ||
the United States, as the
case may be, by the respective | ||
worldwide figures for such items. Common
ownership in the | ||
case of corporations is the direct or indirect control or
| ||
ownership of more than 50% of the outstanding voting stock | ||
of the persons
carrying on unitary business activity. | ||
Unitary business activity can
ordinarily be illustrated |
where the activities of the members are: (1) in the
same | ||
general line (such as manufacturing, wholesaling, | ||
retailing of tangible
personal property, insurance, | ||
transportation or finance); or (2) are steps in a
| ||
vertically structured enterprise or process (such as the | ||
steps involved in the
production of natural resources, | ||
which might include exploration, mining,
refining, and | ||
marketing); and, in either instance, the members are | ||
functionally
integrated through the exercise of strong | ||
centralized management (where, for
example, authority over | ||
such matters as purchasing, financing, tax compliance,
| ||
product line, personnel, marketing and capital investment | ||
is not left to each
member).
In no event, however, will any
| ||
unitary business group include members
which are | ||
ordinarily required to apportion business income under | ||
different
subsections of Section 304 except that for tax | ||
years ending on or after
December 31, 1987 this prohibition | ||
shall not apply to a unitary business group
composed of one | ||
or more taxpayers all of which apportion business income
| ||
pursuant to subsection (b) of Section 304, or all of which | ||
apportion business
income pursuant to subsection (d) of | ||
Section 304, and a holding company of such
single-factor | ||
taxpayers (see definition of "financial organization" for | ||
rule
regarding holding companies of financial | ||
organizations). If a unitary business
group would, but for | ||
the preceding sentence, include members that are
|
ordinarily required to apportion business income under | ||
different subsections of
Section 304, then for each | ||
subsection of Section 304 for which there are two or
more | ||
members, there shall be a separate unitary business group | ||
composed of such
members. For purposes of the preceding two | ||
sentences, a member is "ordinarily
required to apportion | ||
business income" under a particular subsection of Section
| ||
304 if it would be required to use the apportionment method | ||
prescribed by such
subsection except for the fact that it | ||
derives business income solely from
Illinois. As used in | ||
this paragraph, the phrase "United States" means only the | ||
50 states and the District of Columbia, but does not | ||
include any territory or possession of the United States or | ||
any area over which the United States has asserted | ||
jurisdiction or claimed exclusive rights with respect to | ||
the exploration for or exploitation of natural resources.
| ||
If the unitary business group members' accounting | ||
periods differ,
the common parent's accounting period or, | ||
if there is no common parent, the
accounting period of the | ||
member that is expected to have, on a recurring basis,
the | ||
greatest Illinois income tax liability must be used to | ||
determine whether to
use the apportionment method provided | ||
in subsection (a) or subsection (h) of
Section 304. The
| ||
prohibition against membership in a unitary business group | ||
for taxpayers
ordinarily required to apportion income | ||
under different subsections of Section
304 does not apply |
to taxpayers required to apportion income under subsection
| ||
(a) and subsection (h) of Section
304. The provisions of | ||
this amendatory Act of 1998 apply to tax
years ending on or | ||
after December 31, 1998.
| ||
(28) Subchapter S corporation. The term "Subchapter S | ||
corporation"
means a corporation for which there is in | ||
effect an election under Section
1362 of the Internal | ||
Revenue Code, or for which there is a federal election
to | ||
opt out of the provisions of the Subchapter S Revision Act | ||
of 1982 and
have applied instead the prior federal | ||
Subchapter S rules as in effect on July
1, 1982.
| ||
(30) Foreign person. The term "foreign person" means | ||
any person who is a nonresident alien individual and any | ||
nonindividual entity, regardless of where created or | ||
organized, whose business activity outside the United | ||
States is 80% or more of the entity's total business | ||
activity.
| ||
(b) Other definitions.
| ||
(1) Words denoting number, gender, and so forth,
when | ||
used in this Act, where not otherwise distinctly expressed | ||
or manifestly
incompatible with the intent thereof:
| ||
(A) Words importing the singular include and apply | ||
to several persons,
parties or things;
| ||
(B) Words importing the plural include the | ||
singular; and
|
(C) Words importing the masculine gender include | ||
the feminine as well.
| ||
(2) "Company" or "association" as including successors | ||
and assigns. The
word "company" or "association", when used | ||
in reference to a corporation,
shall be deemed to embrace | ||
the words "successors and assigns of such company
or | ||
association", and in like manner as if these last-named | ||
words, or words
of similar import, were expressed.
| ||
(3) Other terms. Any term used in any Section of this | ||
Act with respect
to the application of, or in connection | ||
with, the provisions of any other
Section of this Act shall | ||
have the same meaning as in such other Section.
| ||
(Source: P.A. 95-233, eff. 8-16-07.)
| ||
Section 5-16. The Use Tax Act is amended by changing | ||
Section 3-50 as follows:
| ||
(35 ILCS 105/3-50) (from Ch. 120, par. 439.3-50)
| ||
Sec. 3-50. Manufacturing and assembly exemption. The | ||
manufacturing
and assembling machinery and equipment exemption | ||
includes
machinery and equipment that replaces machinery and | ||
equipment in an
existing manufacturing facility as well as | ||
machinery and equipment that
are for use in an expanded or new | ||
manufacturing facility. The machinery and
equipment exemption | ||
also includes machinery and equipment used in the
general | ||
maintenance or repair of exempt machinery and equipment or for
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in-house manufacture of exempt machinery and equipment. For the
| ||
purposes of this exemption, terms have the following
meanings:
| ||
(1) "Manufacturing process" means the production of
an | ||
article of tangible personal property, whether the article
| ||
is a finished product or an article for use in the process | ||
of manufacturing
or assembling a different article of | ||
tangible personal property, by
a procedure commonly | ||
regarded as manufacturing, processing, fabricating, or
| ||
refining that changes some existing material into a | ||
material
with a different form, use, or name. In relation | ||
to a recognized integrated
business composed of a series of | ||
operations that collectively constitute
manufacturing, or | ||
individually constitute
manufacturing operations, the | ||
manufacturing process commences with the
first operation | ||
or stage of production in the series
and does not end until | ||
the completion of the final product
in the last operation | ||
or stage of production in the series. For purposes
of this | ||
exemption, photoprocessing is a
manufacturing process of | ||
tangible personal property for wholesale or retail
sale.
| ||
(2) "Assembling process" means the production of
an | ||
article of tangible personal property, whether the article
| ||
is a finished product or an article for use in the process | ||
of manufacturing
or assembling a different article of | ||
tangible personal property, by the
combination of existing | ||
materials in a manner commonly regarded as
assembling that | ||
results in an article or material of a different
form, use, |
or name.
| ||
(3) "Machinery" means major
mechanical machines or | ||
major components of those machines contributing to a
| ||
manufacturing or assembling process.
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(4) "Equipment" includes an independent device
or tool | ||
separate from machinery but essential to an integrated
| ||
manufacturing or assembly process; including computers | ||
used primarily in
a manufacturer's computer assisted | ||
design,
computer assisted manufacturing (CAD/CAM) system; | ||
any
subunit or assembly comprising a component of any | ||
machinery or auxiliary,
adjunct, or attachment parts of | ||
machinery, such as tools, dies, jigs,
fixtures, patterns, | ||
and molds; and any parts that require
periodic replacement | ||
in the course of normal operation; but does not
include | ||
hand tools. Equipment includes chemicals or chemicals | ||
acting as
catalysts but only if
the chemicals or chemicals | ||
acting as catalysts effect a direct and
immediate change | ||
upon a
product being manufactured or assembled for | ||
wholesale or retail sale or
lease. | ||
(5) "Production related tangible personal property" | ||
means all tangible personal property that is used or | ||
consumed by the purchaser in a manufacturing facility in | ||
which a manufacturing process takes place and includes, | ||
without limitation, tangible personal property that is | ||
purchased for incorporation into real estate within a | ||
manufacturing facility and tangible personal property that |
is used or consumed in activities such as research and | ||
development, preproduction material handling, receiving, | ||
quality control, inventory control, storage, staging, and | ||
packaging for shipping and transportation purposes. | ||
"Production related tangible personal property" does not | ||
include (i) tangible personal property that is used, within | ||
or without a manufacturing facility, in sales, purchasing, | ||
accounting, fiscal management, marketing, personnel | ||
recruitment or selection, or landscaping or (ii) tangible | ||
personal property that is required to be titled or | ||
registered with a department, agency, or unit of federal, | ||
State, or local government.
| ||
The manufacturing and assembling machinery and equipment | ||
exemption includes production related tangible personal | ||
property that is purchased on or after July 1, 2007 and on or | ||
before June 30, 2008. The exemption for production related | ||
tangible personal property is subject to both of the following | ||
limitations: | ||
(1) The maximum amount of the exemption for any one | ||
taxpayer may not exceed 5% of the purchase price of | ||
production related tangible personal property that is | ||
purchased on or after July 1, 2007 and on or before June | ||
30, 2008. A credit under Section 3-85 of this Act may not | ||
be earned by the purchase of production related tangible | ||
personal property for which an exemption is received under | ||
this Section. |
(2) The maximum aggregate amount of the exemptions for | ||
production related tangible personal property awarded | ||
under this Act and the Retailers' Occupation Tax Act to all | ||
taxpayers may not exceed $10,000,000. If the claims for the | ||
exemption exceed $10,000,000, then the Department shall | ||
reduce the amount of the exemption to each taxpayer on a | ||
pro rata basis. | ||
The Department may adopt rules to implement and administer the | ||
exemption for production related tangible personal property. | ||
The manufacturing and assembling machinery and equipment
| ||
exemption includes the sale of materials to a purchaser who
| ||
produces exempted types of machinery, equipment, or tools and | ||
who rents or
leases that machinery, equipment, or tools to a
| ||
manufacturer of tangible
personal property. This exemption | ||
also includes the sale of materials to a
purchaser who | ||
manufactures those materials into an exempted type of
| ||
machinery, equipment, or tools that the purchaser uses
himself | ||
or herself in the
manufacturing of tangible personal property. | ||
This exemption includes the
sale of exempted types of machinery | ||
or equipment to a
purchaser who is not the manufacturer, but | ||
who rents or leases the use of
the property to a manufacturer. | ||
The purchaser of the machinery and
equipment who has an active | ||
resale registration number shall
furnish that number to the | ||
seller at the time of purchase.
A user of the machinery, | ||
equipment, or tools without an
active resale registration | ||
number shall prepare a certificate of exemption
for each |
transaction stating facts establishing the exemption for that
| ||
transaction, and that certificate shall be
available to the | ||
Department for inspection or audit. The Department shall
| ||
prescribe the form of the certificate. Informal rulings, | ||
opinions, or
letters issued by the Department in
response to an | ||
inquiry or request for an opinion from any person
regarding the | ||
coverage and applicability of this exemption to specific
| ||
devices shall be published, maintained as a public record, and | ||
made
available for public inspection and copying. If the | ||
informal ruling,
opinion, or letter contains trade secrets or | ||
other confidential
information, where possible, the Department | ||
shall delete that information
before publication. Whenever | ||
informal rulings, opinions, or
letters contain a policy of | ||
general applicability, the Department
shall formulate and | ||
adopt that policy as a rule in accordance with the
Illinois | ||
Administrative Procedure Act.
| ||
(Source: P.A. 91-51, eff. 6-30-99; 92-484, eff. 8-23-01.)
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Section 5-17. The Retailers' Occupation Tax Act is amended | ||
by changing Sections 2-5 and 2-45 as follows:
| ||
(35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
| ||
Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||
sale of
the following tangible personal property are exempt | ||
from the tax imposed
by this Act:
| ||
(1) Farm chemicals.
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(2) Farm machinery and equipment, both new and used, | ||
including that
manufactured on special order, certified by the | ||
purchaser to be used
primarily for production agriculture or | ||
State or federal agricultural
programs, including individual | ||
replacement parts for the machinery and
equipment, including | ||
machinery and equipment purchased for lease,
and including | ||
implements of husbandry defined in Section 1-130 of
the | ||
Illinois Vehicle Code, farm machinery and agricultural | ||
chemical and
fertilizer spreaders, and nurse wagons required to | ||
be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||
but
excluding other motor vehicles required to be registered | ||
under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||
hoop houses used for propagating, growing, or
overwintering | ||
plants shall be considered farm machinery and equipment under
| ||
this item (2).
Agricultural chemical tender tanks and dry boxes | ||
shall include units sold
separately from a motor vehicle | ||
required to be licensed and units sold mounted
on a motor | ||
vehicle required to be licensed, if the selling price of the | ||
tender
is separately stated.
| ||
Farm machinery and equipment shall include precision | ||
farming equipment
that is
installed or purchased to be | ||
installed on farm machinery and equipment
including, but not | ||
limited to, tractors, harvesters, sprayers, planters,
seeders, | ||
or spreaders.
Precision farming equipment includes, but is not | ||
limited to,
soil testing sensors, computers, monitors, | ||
software, global positioning
and mapping systems, and other |
such equipment.
| ||
Farm machinery and equipment also includes computers, | ||
sensors, software, and
related equipment used primarily in the
| ||
computer-assisted operation of production agriculture | ||
facilities, equipment,
and activities such as, but
not limited | ||
to,
the collection, monitoring, and correlation of
animal and | ||
crop data for the purpose of
formulating animal diets and | ||
agricultural chemicals. This item (7) is exempt
from the | ||
provisions of
Section 2-70.
| ||
(3) Until July 1, 2003, distillation machinery and | ||
equipment, sold as a
unit or kit,
assembled or installed by the | ||
retailer, certified by the user to be used
only for the | ||
production of ethyl alcohol that will be used for consumption
| ||
as motor fuel or as a component of motor fuel for the personal | ||
use of the
user, and not subject to sale or resale.
| ||
(4) Until July 1, 2003 and beginning again September 1, | ||
2004, graphic arts machinery and equipment, including
repair | ||
and
replacement parts, both new and used, and including that | ||
manufactured on
special order or purchased for lease, certified | ||
by the purchaser to be used
primarily for graphic arts | ||
production.
Equipment includes chemicals or
chemicals acting | ||
as catalysts but only if
the chemicals or chemicals acting as | ||
catalysts effect a direct and immediate
change upon a
graphic | ||
arts product.
| ||
(5) A motor vehicle of the first division, a motor vehicle | ||
of the second division that is a self contained motor vehicle |
designed or permanently converted to provide living quarters | ||
for recreational, camping, or travel use, with direct walk | ||
through access to the living quarters from the driver's seat, | ||
or a motor vehicle of the second division that is of the van | ||
configuration designed for the transportation of not less than | ||
7 nor more than 16 passengers, as defined in Section 1-146 of | ||
the Illinois Vehicle Code, that is used for automobile renting, | ||
as defined in the Automobile Renting Occupation and Use Tax | ||
Act. This paragraph is exempt from
the provisions of Section | ||
2-70. (Blank).
| ||
(6) Personal property sold by a teacher-sponsored student | ||
organization
affiliated with an elementary or secondary school | ||
located in Illinois.
| ||
(7) Until July 1, 2003, proceeds of that portion of the | ||
selling price of
a passenger car the
sale of which is subject | ||
to the Replacement Vehicle Tax.
| ||
(8) Personal property sold to an Illinois county fair | ||
association for
use in conducting, operating, or promoting the | ||
county fair.
| ||
(9) Personal property sold to a not-for-profit arts
or | ||
cultural organization that establishes, by proof required by | ||
the Department
by
rule, that it has received an exemption under | ||
Section 501(c)(3) of the
Internal Revenue Code and that is | ||
organized and operated primarily for the
presentation
or | ||
support of arts or cultural programming, activities, or | ||
services. These
organizations include, but are not limited to, |
music and dramatic arts
organizations such as symphony | ||
orchestras and theatrical groups, arts and
cultural service | ||
organizations, local arts councils, visual arts organizations,
| ||
and media arts organizations.
On and after the effective date | ||
of this amendatory Act of the 92nd General
Assembly, however, | ||
an entity otherwise eligible for this exemption shall not
make | ||
tax-free purchases unless it has an active identification | ||
number issued by
the Department.
| ||
(10) Personal property sold by a corporation, society, | ||
association,
foundation, institution, or organization, other | ||
than a limited liability
company, that is organized and | ||
operated as a not-for-profit service enterprise
for the benefit | ||
of persons 65 years of age or older if the personal property
| ||
was not purchased by the enterprise for the purpose of resale | ||
by the
enterprise.
| ||
(11) Personal property sold to a governmental body, to a | ||
corporation,
society, association, foundation, or institution | ||
organized and operated
exclusively for charitable, religious, | ||
or educational purposes, or to a
not-for-profit corporation, | ||
society, association, foundation, institution,
or organization | ||
that has no compensated officers or employees and that is
| ||
organized and operated primarily for the recreation of persons | ||
55 years of
age or older. A limited liability company may | ||
qualify for the exemption under
this paragraph only if the | ||
limited liability company is organized and operated
| ||
exclusively for educational purposes. On and after July 1, |
1987, however, no
entity otherwise eligible for this exemption | ||
shall make tax-free purchases
unless it has an active | ||
identification number issued by the Department.
| ||
(12) Tangible personal property sold to
interstate | ||
carriers
for hire for use as
rolling stock moving in interstate | ||
commerce or to lessors under leases of
one year or longer | ||
executed or in effect at the time of purchase by
interstate | ||
carriers for hire for use as rolling stock moving in interstate
| ||
commerce and equipment operated by a telecommunications | ||
provider, licensed as a
common carrier by the Federal | ||
Communications Commission, which is permanently
installed in | ||
or affixed to aircraft moving in interstate commerce.
| ||
(12-5) On and after July 1, 2003 and through June 30, 2004, | ||
motor vehicles of the second division
with a gross vehicle | ||
weight in excess of 8,000 pounds
that
are
subject to the | ||
commercial distribution fee imposed under Section 3-815.1 of
| ||
the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||
through June 30, 2005, the use in this State of motor vehicles | ||
of the second division: (i) with a gross vehicle weight rating | ||
in excess of 8,000 pounds; (ii) that are subject to the | ||
commercial distribution fee imposed under Section 3-815.1 of | ||
the Illinois Vehicle Code; and (iii) that are primarily used | ||
for commercial purposes. Through June 30, 2005, this
exemption | ||
applies to repair and replacement parts added
after the
initial | ||
purchase of such a motor vehicle if that motor vehicle is used | ||
in a
manner that
would qualify for the rolling stock exemption |
otherwise provided for in this
Act. For purposes of this | ||
paragraph, "used for commercial purposes" means the | ||
transportation of persons or property in furtherance of any | ||
commercial or industrial enterprise whether for-hire or not.
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(13) Proceeds from sales to owners, lessors, or
shippers of
| ||
tangible personal property that is utilized by interstate | ||
carriers for
hire for use as rolling stock moving in interstate | ||
commerce
and equipment operated by a telecommunications | ||
provider, licensed as a
common carrier by the Federal | ||
Communications Commission, which is
permanently installed in | ||
or affixed to aircraft moving in interstate commerce.
| ||
(14) Machinery and equipment that will be used by the | ||
purchaser, or a
lessee of the purchaser, primarily in the | ||
process of manufacturing or
assembling tangible personal | ||
property for wholesale or retail sale or
lease, whether the | ||
sale or lease is made directly by the manufacturer or by
some | ||
other person, whether the materials used in the process are | ||
owned by
the manufacturer or some other person, or whether the | ||
sale or lease is made
apart from or as an incident to the | ||
seller's engaging in the service
occupation of producing | ||
machines, tools, dies, jigs, patterns, gauges, or
other similar | ||
items of no commercial value on special order for a particular
| ||
purchaser.
| ||
(15) Proceeds of mandatory service charges separately | ||
stated on
customers' bills for purchase and consumption of food | ||
and beverages, to the
extent that the proceeds of the service |
charge are in fact turned over as
tips or as a substitute for | ||
tips to the employees who participate directly
in preparing, | ||
serving, hosting or cleaning up the food or beverage function
| ||
with respect to which the service charge is imposed.
| ||
(16) Petroleum products sold to a purchaser if the seller
| ||
is prohibited by federal law from charging tax to the | ||
purchaser.
| ||
(17) Tangible personal property sold to a common carrier by | ||
rail or
motor that
receives the physical possession of the | ||
property in Illinois and that
transports the property, or | ||
shares with another common carrier in the
transportation of the | ||
property, out of Illinois on a standard uniform bill
of lading | ||
showing the seller of the property as the shipper or consignor | ||
of
the property to a destination outside Illinois, for use | ||
outside Illinois.
| ||
(18) Legal tender, currency, medallions, or gold or silver | ||
coinage
issued by the State of Illinois, the government of the | ||
United States of
America, or the government of any foreign | ||
country, and bullion.
| ||
(19) Until July 1 2003, oil field exploration, drilling, | ||
and production
equipment, including
(i) rigs and parts of rigs, | ||
rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||
tubular goods, including casing and
drill strings, (iii) pumps | ||
and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||
individual replacement part for oil field exploration,
| ||
drilling, and production equipment, and (vi) machinery and |
equipment purchased
for lease; but
excluding motor vehicles | ||
required to be registered under the Illinois
Vehicle Code.
| ||
(20) Photoprocessing machinery and equipment, including | ||
repair and
replacement parts, both new and used, including that | ||
manufactured on
special order, certified by the purchaser to be | ||
used primarily for
photoprocessing, and including | ||
photoprocessing machinery and equipment
purchased for lease.
| ||
(21) Until July 1, 2003, coal exploration, mining, | ||
offhighway hauling,
processing,
maintenance, and reclamation | ||
equipment, including
replacement parts and equipment, and | ||
including
equipment purchased for lease, but excluding motor | ||
vehicles required to be
registered under the Illinois Vehicle | ||
Code.
| ||
(22) Fuel and petroleum products sold to or used by an air | ||
carrier,
certified by the carrier to be used for consumption, | ||
shipment, or storage
in the conduct of its business as an air | ||
common carrier, for a flight
destined for or returning from a | ||
location or locations
outside the United States without regard | ||
to previous or subsequent domestic
stopovers.
| ||
(23) A transaction in which the purchase order is received | ||
by a florist
who is located outside Illinois, but who has a | ||
florist located in Illinois
deliver the property to the | ||
purchaser or the purchaser's donee in Illinois.
| ||
(24) Fuel consumed or used in the operation of ships, | ||
barges, or vessels
that are used primarily in or for the | ||
transportation of property or the
conveyance of persons for |
hire on rivers bordering on this State if the
fuel is delivered | ||
by the seller to the purchaser's barge, ship, or vessel
while | ||
it is afloat upon that bordering river.
| ||
(25) Except as provided in item (25-5) of this Section, a
| ||
motor vehicle sold in this State to a nonresident even though | ||
the
motor vehicle is delivered to the nonresident in this | ||
State, if the motor
vehicle is not to be titled in this State, | ||
and if a drive-away permit
is issued to the motor vehicle as | ||
provided in Section 3-603 of the Illinois
Vehicle Code or if | ||
the nonresident purchaser has vehicle registration
plates to | ||
transfer to the motor vehicle upon returning to his or her home
| ||
state. The issuance of the drive-away permit or having
the
| ||
out-of-state registration plates to be transferred is prima | ||
facie evidence
that the motor vehicle will not be titled in | ||
this State.
| ||
(25-5) The exemption under item (25) does not apply if the | ||
state in which the motor vehicle will be titled does not allow | ||
a reciprocal exemption for a motor vehicle sold and delivered | ||
in that state to an Illinois resident but titled in Illinois. | ||
The tax collected under this Act on the sale of a motor vehicle | ||
in this State to a resident of another state that does not | ||
allow a reciprocal exemption shall be imposed at a rate equal | ||
to the state's rate of tax on taxable property in the state in | ||
which the purchaser is a resident, except that the tax shall | ||
not exceed the tax that would otherwise be imposed under this | ||
Act. At the time of the sale, the purchaser shall execute a |
statement, signed under penalty of perjury, of his or her | ||
intent to title the vehicle in the state in which the purchaser | ||
is a resident within 30 days after the sale and of the fact of | ||
the payment to the State of Illinois of tax in an amount | ||
equivalent to the state's rate of tax on taxable property in | ||
his or her state of residence and shall submit the statement to | ||
the appropriate tax collection agency in his or her state of | ||
residence. In addition, the retailer must retain a signed copy | ||
of the statement in his or her records. Nothing in this item | ||
shall be construed to require the removal of the vehicle from | ||
this state following the filing of an intent to title the | ||
vehicle in the purchaser's state of residence if the purchaser | ||
titles the vehicle in his or her state of residence within 30 | ||
days after the date of sale. The tax collected under this Act | ||
in accordance with this item (25-5) shall be proportionately | ||
distributed as if the tax were collected at the 6.25% general | ||
rate imposed under this Act.
| ||
(25-7) Beginning on July 1, 2007, no tax is imposed under | ||
this Act on the sale of an aircraft, as defined in Section 3 of | ||
the Illinois Aeronautics Act, if all of the following | ||
conditions are met: | ||
(1) the aircraft leaves this State within 15 days after | ||
the later of either the issuance of the final billing for | ||
the sale of the aircraft, or the authorized approval for | ||
return to service, completion of the maintenance record | ||
entry, and completion of the test flight and ground test |
for inspection, as required by 14 C.F.R. 91.407; | ||
(2) the aircraft is not based or registered in this | ||
State after the sale of the aircraft; and | ||
(3) the seller retains in his or her books and records | ||
and provides to the Department a signed and dated | ||
certification from the purchaser, on a form prescribed by | ||
the Department, certifying that the requirements of this | ||
item (25-7) are met. The certificate must also include the | ||
name and address of the purchaser, the address of the | ||
location where the aircraft is to be titled or registered, | ||
the address of the primary physical location of the | ||
aircraft, and other information that the Department may | ||
reasonably require. | ||
For purposes of this item (25-7): | ||
"Based in this State" means hangared, stored, or otherwise | ||
used, excluding post-sale customizations as defined in this | ||
Section, for 10 or more days in each 12-month period | ||
immediately following the date of the sale of the aircraft. | ||
"Registered in this State" means an aircraft registered | ||
with the Department of Transportation, Aeronautics Division, | ||
or titled or registered with the Federal Aviation | ||
Administration to an address located in this State. | ||
This paragraph (25-7) is exempt from the provisions
of
| ||
Section 2-70.
| ||
(26) Semen used for artificial insemination of livestock | ||
for direct
agricultural production.
|
(27) Horses, or interests in horses, registered with and | ||
meeting the
requirements of any of the
Arabian Horse Club | ||
Registry of America, Appaloosa Horse Club, American Quarter
| ||
Horse Association, United States
Trotting Association, or | ||
Jockey Club, as appropriate, used for
purposes of breeding or | ||
racing for prizes. This item (27) is exempt from the provisions | ||
of Section 2-70, and the exemption provided for under this item | ||
(27) applies for all periods beginning May 30, 1995, but no | ||
claim for credit or refund is allowed on or after January 1, | ||
2008 ( the effective date of Public Act 95-88)
this amendatory | ||
Act of the 95th General Assembly for such taxes paid during the | ||
period beginning May 30, 2000 and ending on January 1, 2008 | ||
( the effective date of Public Act 95-88)
this amendatory Act of | ||
the 95th General Assembly .
| ||
(28) Computers and communications equipment utilized for | ||
any
hospital
purpose
and equipment used in the diagnosis,
| ||
analysis, or treatment of hospital patients sold to a lessor | ||
who leases the
equipment, under a lease of one year or longer | ||
executed or in effect at the
time of the purchase, to a
| ||
hospital
that has been issued an active tax exemption | ||
identification number by the
Department under Section 1g of | ||
this Act.
| ||
(29) Personal property sold to a lessor who leases the
| ||
property, under a
lease of one year or longer executed or in | ||
effect at the time of the purchase,
to a governmental body
that | ||
has been issued an active tax exemption identification number |
by the
Department under Section 1g of this Act.
| ||
(30) Beginning with taxable years ending on or after | ||
December
31, 1995
and
ending with taxable years ending on or | ||
before December 31, 2004,
personal property that is
donated for | ||
disaster relief to be used in a State or federally declared
| ||
disaster area in Illinois or bordering Illinois by a | ||
manufacturer or retailer
that is registered in this State to a | ||
corporation, society, association,
foundation, or institution | ||
that has been issued a sales tax exemption
identification | ||
number by the Department that assists victims of the disaster
| ||
who reside within the declared disaster area.
| ||
(31) Beginning with taxable years ending on or after | ||
December
31, 1995 and
ending with taxable years ending on or | ||
before December 31, 2004, personal
property that is used in the | ||
performance of infrastructure repairs in this
State, including | ||
but not limited to municipal roads and streets, access roads,
| ||
bridges, sidewalks, waste disposal systems, water and sewer | ||
line extensions,
water distribution and purification | ||
facilities, storm water drainage and
retention facilities, and | ||
sewage treatment facilities, resulting from a State
or | ||
federally declared disaster in Illinois or bordering Illinois | ||
when such
repairs are initiated on facilities located in the | ||
declared disaster area
within 6 months after the disaster.
| ||
(32) Beginning July 1, 1999, game or game birds sold at a | ||
"game breeding
and
hunting preserve area" or an "exotic game | ||
hunting area" as those terms are used
in the
Wildlife Code or |
at a hunting enclosure approved through rules adopted by the
| ||
Department of Natural Resources. This paragraph is exempt from | ||
the provisions
of
Section 2-70.
| ||
(33) A motor vehicle, as that term is defined in Section | ||
1-146
of the
Illinois Vehicle Code, that is donated to a | ||
corporation, limited liability
company, society, association, | ||
foundation, or institution that is determined by
the Department | ||
to be organized and operated exclusively for educational
| ||
purposes. For purposes of this exemption, "a corporation, | ||
limited liability
company, society, association, foundation, | ||
or institution organized and
operated
exclusively for | ||
educational purposes" means all tax-supported public schools,
| ||
private schools that offer systematic instruction in useful | ||
branches of
learning by methods common to public schools and | ||
that compare favorably in
their scope and intensity with the | ||
course of study presented in tax-supported
schools, and | ||
vocational or technical schools or institutes organized and
| ||
operated exclusively to provide a course of study of not less | ||
than 6 weeks
duration and designed to prepare individuals to | ||
follow a trade or to pursue a
manual, technical, mechanical, | ||
industrial, business, or commercial
occupation.
| ||
(34) Beginning January 1, 2000, personal property, | ||
including food, purchased
through fundraising events for the | ||
benefit of a public or private elementary or
secondary school, | ||
a group of those schools, or one or more school districts if
| ||
the events are sponsored by an entity recognized by the school |
district that
consists primarily of volunteers and includes | ||
parents and teachers of the
school children. This paragraph | ||
does not apply to fundraising events (i) for
the benefit of | ||
private home instruction or (ii) for which the fundraising
| ||
entity purchases the personal property sold at the events from | ||
another
individual or entity that sold the property for the | ||
purpose of resale by the
fundraising entity and that profits | ||
from the sale to the fundraising entity.
This paragraph is | ||
exempt from the provisions of Section 2-70.
| ||
(35) Beginning January 1, 2000 and through December 31, | ||
2001, new or used
automatic vending machines that prepare and | ||
serve hot food and beverages,
including coffee, soup, and other | ||
items, and replacement parts for these
machines. Beginning | ||
January 1, 2002 and through June 30, 2003, machines
and parts | ||
for machines used in
commercial, coin-operated amusement and | ||
vending business if a use or occupation
tax is paid on the | ||
gross receipts derived from the use of the commercial,
| ||
coin-operated amusement and vending machines. This paragraph | ||
is exempt from
the provisions of Section 2-70.
| ||
(35-5) Beginning August 23, 2001 and through June 30, 2011, | ||
food for human consumption that is to be consumed off
the | ||
premises where it is sold (other than alcoholic beverages, soft | ||
drinks,
and food that has been prepared for immediate | ||
consumption) and prescription
and nonprescription medicines, | ||
drugs, medical appliances, and insulin, urine
testing | ||
materials, syringes, and needles used by diabetics, for human |
use, when
purchased for use by a person receiving medical | ||
assistance under Article 5 of
the Illinois Public Aid Code who | ||
resides in a licensed long-term care facility,
as defined in | ||
the Nursing Home Care Act.
| ||
(36) Beginning August 2, 2001, computers and | ||
communications equipment
utilized for any hospital purpose and | ||
equipment used in the diagnosis,
analysis, or treatment of | ||
hospital patients sold to a lessor who leases the
equipment, | ||
under a lease of one year or longer executed or in effect at | ||
the
time of the purchase, to a hospital that has been issued an | ||
active tax
exemption identification number by the Department | ||
under Section 1g of this Act.
This paragraph is exempt from the | ||
provisions of Section 2-70.
| ||
(37) Beginning August 2, 2001, personal property sold to a | ||
lessor who
leases the property, under a lease of one year or | ||
longer executed or in effect
at the time of the purchase, to a | ||
governmental body that has been issued an
active tax exemption | ||
identification number by the Department under Section 1g
of | ||
this Act. This paragraph is exempt from the provisions of | ||
Section 2-70.
| ||
(38) Beginning on January 1, 2002 and through June 30, | ||
2011, tangible personal property purchased
from an Illinois | ||
retailer by a taxpayer engaged in centralized purchasing
| ||
activities in Illinois who will, upon receipt of the property | ||
in Illinois,
temporarily store the property in Illinois (i) for | ||
the purpose of subsequently
transporting it outside this State |
for use or consumption thereafter solely
outside this State or | ||
(ii) for the purpose of being processed, fabricated, or
| ||
manufactured into, attached to, or incorporated into other | ||
tangible personal
property to be transported outside this State | ||
and thereafter used or consumed
solely outside this State. The | ||
Director of Revenue shall, pursuant to rules
adopted in | ||
accordance with the Illinois Administrative Procedure Act, | ||
issue a
permit to any taxpayer in good standing with the | ||
Department who is eligible for
the exemption under this | ||
paragraph (38). The permit issued under
this paragraph (38) | ||
shall authorize the holder, to the extent and
in the manner | ||
specified in the rules adopted under this Act, to purchase
| ||
tangible personal property from a retailer exempt from the | ||
taxes imposed by
this Act. Taxpayers shall maintain all | ||
necessary books and records to
substantiate the use and | ||
consumption of all such tangible personal property
outside of | ||
the State of Illinois.
| ||
(39) Beginning January 1, 2008, tangible personal property | ||
used in the construction or maintenance of a community water | ||
supply, as defined under Section 3.145 of the Environmental | ||
Protection Act, that is operated by a not-for-profit | ||
corporation that holds a valid water supply permit issued under | ||
Title IV of the Environmental Protection Act. This paragraph is | ||
exempt from the provisions of Section 2-70.
| ||
(Source: P.A. 94-1002, eff. 7-3-06; 95-88, eff. 1-1-08; 95-233, | ||
eff. 8-16-07; 95-304, eff. 8-20-07; 95-538, eff. 1-1-08; |
revised 9-11-07.)
| ||
(35 ILCS 120/2-45) (from Ch. 120, par. 441-45)
| ||
Sec. 2-45. Manufacturing and assembly exemption. The | ||
manufacturing
and assembly machinery and equipment exemption | ||
includes machinery
and equipment that replaces machinery
and | ||
equipment in an existing manufacturing facility as well as | ||
machinery
and equipment that are for use in an expanded or new
| ||
manufacturing facility.
| ||
The machinery and equipment exemption also includes | ||
machinery
and equipment used in the
general maintenance or | ||
repair of exempt machinery and equipment or for
in-house | ||
manufacture of exempt machinery and equipment.
For the purposes | ||
of this exemption, terms have the following meanings:
| ||
(1) "Manufacturing process" means the production of an | ||
article of
tangible personal property, whether the article | ||
is a finished product or an
article for use in the process | ||
of manufacturing or assembling a different
article of | ||
tangible personal property, by a procedure commonly | ||
regarded as
manufacturing, processing, fabricating, or | ||
refining that changes some
existing material or materials | ||
into a material with a different form, use,
or name. In | ||
relation to a recognized integrated business composed of a
| ||
series of operations that collectively constitute | ||
manufacturing, or
individually constitute manufacturing | ||
operations, the manufacturing process
commences with the |
first operation or stage of production in the series and
| ||
does not end until the completion of the final product in | ||
the last
operation or stage of production in the series. | ||
For purposes of this
exemption, photoprocessing is a | ||
manufacturing process of tangible personal
property for | ||
wholesale or retail sale.
| ||
(2) "Assembling process" means the production of an | ||
article of
tangible personal property, whether the article | ||
is a finished product or an
article for use in the process | ||
of manufacturing or assembling a different
article of | ||
tangible personal property, by the combination of existing
| ||
materials in a manner commonly regarded as assembling that | ||
results in a
material of a different form, use, or name.
| ||
(3) "Machinery" means major mechanical machines or | ||
major components of
those machines contributing to a | ||
manufacturing or assembling process.
| ||
(4) "Equipment" includes an independent device or tool | ||
separate from
machinery but essential to an integrated | ||
manufacturing or assembly process;
including computers | ||
used primarily in a manufacturer's computer assisted | ||
design, computer assisted manufacturing
(CAD/CAM) system; | ||
any subunit or assembly comprising a component of any
| ||
machinery or auxiliary, adjunct, or attachment parts of | ||
machinery, such as
tools, dies, jigs, fixtures, patterns, | ||
and molds; and any parts that
require periodic replacement | ||
in the course of normal operation; but does
not include |
hand tools. Equipment includes chemicals or chemicals | ||
acting as
catalysts but only if
the chemicals or chemicals | ||
acting as catalysts effect a direct and
immediate change | ||
upon a
product being manufactured or assembled for | ||
wholesale or retail sale or
lease.
| ||
(5) "Production related tangible personal property" | ||
means all tangible personal property that is used or | ||
consumed by the purchaser in a manufacturing facility in | ||
which a manufacturing process takes place and includes, | ||
without limitation, tangible personal property that is | ||
purchased for incorporation into real estate within a | ||
manufacturing facility and tangible personal property that | ||
is used or consumed in activities such as research and | ||
development, preproduction material handling, receiving, | ||
quality control, inventory control, storage, staging, and | ||
packaging for shipping and transportation purposes. | ||
"Production related tangible personal property" does not | ||
include (i) tangible personal property that is used, within | ||
or without a manufacturing facility, in sales, purchasing, | ||
accounting, fiscal management, marketing, personnel | ||
recruitment or selection, or landscaping or (ii) tangible | ||
personal property that is required to be titled or | ||
registered with a department, agency, or unit of federal, | ||
State, or local government.
| ||
The manufacturing and assembling machinery and equipment | ||
exemption includes production related tangible personal |
property that is purchased on or after July 1, 2007 and on or | ||
before June 30, 2008. The exemption for production related | ||
tangible personal property is subject to both of the following | ||
limitations: | ||
(1) The maximum amount of the exemption for any one | ||
taxpayer may not exceed 5% of the purchase price of | ||
production related tangible personal property that is | ||
purchased on or after July 1, 2007 and on or before June | ||
30, 2008. A credit under Section 3-85 of this Act may not | ||
be earned by the purchase of production related tangible | ||
personal property for which an exemption is received under | ||
this Section. | ||
(2) The maximum aggregate amount of the exemptions for | ||
production related tangible personal property awarded | ||
under this Act and the Retailers' Occupation Tax Act to all | ||
taxpayers may not exceed $10,000,000. If the claims for the | ||
exemption exceed $10,000,000, then the Department shall | ||
reduce the amount of the exemption to each taxpayer on a | ||
pro rata basis. | ||
The Department may adopt rules to implement and administer the | ||
exemption for production related tangible personal property. | ||
The manufacturing and assembling machinery and equipment | ||
exemption
includes the sale of materials to a purchaser who | ||
produces exempted types
of machinery, equipment, or tools and | ||
who rents or leases that machinery,
equipment, or tools to a | ||
manufacturer of tangible personal property. This
exemption |
also includes the sale of materials to a purchaser who | ||
manufactures
those materials into an exempted type of | ||
machinery, equipment, or tools
that the purchaser uses himself | ||
or herself in the manufacturing of tangible
personal property. | ||
The purchaser of the machinery and equipment who has an
active | ||
resale registration number shall furnish that number to the | ||
seller
at the time of purchase. A purchaser of the machinery, | ||
equipment, and
tools without an active resale registration | ||
number shall furnish to the
seller a certificate of exemption | ||
for each transaction stating facts
establishing the exemption | ||
for that transaction, and that certificate shall
be available | ||
to the Department for inspection or audit. Informal
rulings, | ||
opinions, or letters issued by the Department in response to an
| ||
inquiry or request for an opinion from any person regarding the | ||
coverage and
applicability of this exemption to specific | ||
devices shall be published,
maintained as a public record,
and | ||
made available for public inspection and copying. If the | ||
informal
ruling, opinion, or letter contains trade secrets or | ||
other confidential
information, where possible, the Department | ||
shall delete that information
before publication. Whenever | ||
informal rulings, opinions, or letters
contain a policy of | ||
general applicability, the Department shall
formulate and | ||
adopt that policy as a rule in accordance with the Illinois
| ||
Administrative Procedure Act.
| ||
(Source: P.A. 91-51, eff. 6-30-99; 92-484, eff. 8-23-01.)
|
Section 5-20. The School Code is amended by adding Sections | ||
2-3.143, 2-3.146, 10-20.40, 10-20.41, and 21-29 and by changing | ||
Sections 2-3.51.5, 2-3.127a, 2-3.131 (as added by Public Act | ||
93-21), 7-14A, 11E-135, 14-13.01, and 18-8.05 as follows:
| ||
(105 ILCS 5/2-3.51.5)
| ||
Sec. 2-3.51.5. School Safety and Educational Improvement | ||
Block Grant
Program. To improve the level of education and | ||
safety of students from
kindergarten through grade 12 in school | ||
districts and State-recognized, non-public schools . The State | ||
Board of
Education is authorized to fund a School Safety and | ||
Educational Improvement
Block Grant Program.
| ||
(1) For school districts, the The program shall provide | ||
funding for school safety, textbooks and
software, teacher | ||
training and curriculum development, school improvements, | ||
remediation programs under subsection (a) of Section 2-3.64, | ||
school
report cards under Section 10-17a, and criminal history | ||
records checks
under Sections 10-21.9 and 34-18.5. For | ||
State-recognized, non-public schools, the program shall | ||
provide funding for secular textbooks and software, criminal | ||
history records checks, and health and safety mandates to the | ||
extent that the funds are expended for purely secular purposes. | ||
A school district
or laboratory school as defined in Section | ||
18-8 or 18-8.05 is not required
to file an application in order | ||
to receive the categorical funding to which it
is entitled | ||
under this Section. Funds for the School Safety and Educational
|
Improvement Block Grant Program shall be distributed to school | ||
districts and
laboratory schools based on the prior year's best | ||
3 months average daily
attendance. Funds for the School Safety | ||
and Educational Improvement Block Grant Program shall be | ||
distributed to State-recognized, non-public schools based on | ||
the average daily attendance figure for the previous school | ||
year provided to the State Board of Education. The State Board | ||
of Education shall develop an application that requires | ||
State-recognized, non-public schools to submit average daily | ||
attendance figures. A State-recognized, non-public school must | ||
submit the application and average daily attendance figure | ||
prior to receiving funds under this Section. The State Board of | ||
Education shall promulgate rules and
regulations necessary for | ||
the implementation of this program.
| ||
(2) Distribution of moneys to school districts and | ||
State-recognized, non-public schools shall be made in 2
| ||
semi-annual installments, one payment on or before October 30, | ||
and one
payment prior to April 30, of each fiscal year.
| ||
(3) Grants under the School Safety and Educational | ||
Improvement Block Grant
Program shall be awarded provided there | ||
is an appropriation for the program,
and funding levels for | ||
each district shall be prorated according to the amount
of the | ||
appropriation.
| ||
(4) The provisions of this Section are in the public | ||
interest, are for the public benefit, and serve secular public | ||
purposes. |
(Source: P.A. 93-909, eff. 8-12-04.)
| ||
(105 ILCS 5/2-3.127a) | ||
Sec. 2-3.127a. The State Board of Education Special Purpose | ||
Trust Fund. The State Board of Education Special Purpose Trust | ||
Fund is created as a special fund in the State treasury. The | ||
State Board of Education shall deposit all indirect costs | ||
recovered from federal programs into the State Board of | ||
Education Special Purpose Trust Fund. These funds may be used | ||
by the State Board of Education for its ordinary and contingent | ||
expenses. Additionally and unless Unless specifically directed | ||
to be deposited into other funds, all moneys received by the | ||
State Board of Education from gifts, grants, or donations from | ||
any source, public or private, shall be deposited into the | ||
State Board of Education Special Purpose Trust Fund this Fund . | ||
These funds Moneys in this Fund shall be used, subject to | ||
appropriation by the General Assembly, by the State Board of | ||
Education for the purposes established by the gifts, grants, or | ||
donations.
| ||
(Source: P.A. 94-69, eff. 7-1-05.)
| ||
(105 ILCS 5/2-3.131)
| ||
Sec. 2-3.131. Transitional assistance payments.
| ||
(a) If the amount that
the State Board of Education will | ||
pay to
a school
district from fiscal year 2004 appropriations, | ||
as estimated by the State
Board of Education on April 1, 2004, |
is less than the amount that the
State Board of Education paid | ||
to the school district from fiscal year 2003
appropriations, | ||
then, subject to appropriation, the State Board of
Education | ||
shall make a fiscal year 2004 transitional assistance payment
| ||
to the school district in an amount equal to the difference | ||
between the
estimated amount to be paid from fiscal year 2004 | ||
appropriations and
the amount paid from fiscal year 2003 | ||
appropriations.
| ||
(b) If the amount that
the State Board of Education will | ||
pay to
a school
district from fiscal year 2005 appropriations, | ||
as estimated by the State
Board of Education on April 1, 2005, | ||
is less than the amount that the
State Board of Education paid | ||
to the school district from fiscal year 2004
appropriations, | ||
then the State Board of
Education shall make a fiscal year 2005 | ||
transitional assistance payment
to the school district in an | ||
amount equal to the difference between the
estimated amount to | ||
be paid from fiscal year 2005 appropriations and
the amount | ||
paid from fiscal year 2004 appropriations.
| ||
(c) If the amount that
the State Board of Education will | ||
pay to
a school
district from fiscal year 2006 appropriations, | ||
as estimated by the State
Board of Education on April 1, 2006, | ||
is less than the amount that the
State Board of Education paid | ||
to the school district from fiscal year 2005
appropriations, | ||
then the State Board of
Education shall make a fiscal year 2006 | ||
transitional assistance payment
to the school district in an | ||
amount equal to the difference between the
estimated amount to |
be paid from fiscal year 2006 appropriations and
the amount | ||
paid from fiscal year 2005 appropriations.
| ||
(d) If the amount that
the State Board of Education will | ||
pay to
a school
district from fiscal year 2007 appropriations, | ||
as estimated by the State
Board of Education on April 1, 2007, | ||
is less than the amount that the
State Board of Education paid | ||
to the school district from fiscal year 2006
appropriations, | ||
then the State Board of
Education, subject to appropriation, | ||
shall make a fiscal year 2007 transitional assistance payment
| ||
to the school district in an amount equal to the difference | ||
between the
estimated amount to be paid from fiscal year 2007 | ||
appropriations and
the amount paid from fiscal year 2006 | ||
appropriations.
| ||
(e) Subject to appropriation, beginning on July 1, 2007, | ||
the State Board of Education shall adjust prior year | ||
information for the transitional assistance calculations under | ||
this Section in the event of the creation or reorganization of | ||
any school district pursuant to Article 11E of this Code, the | ||
dissolution of an entire district and the annexation of all of | ||
its territory to one or more other districts pursuant to | ||
Article 7 of this Code, or a boundary change whereby the | ||
enrollment of the annexing district increases by 90% or more as | ||
a result of annexing territory detached from another district | ||
pursuant to Article 7 of this Code.
| ||
(f) If the amount that
the State Board of Education will | ||
pay to
a school
district from fiscal year 2008 appropriations, |
as estimated by the State
Board of Education on April 1, 2008, | ||
is less than the amount that the
State Board of Education paid | ||
to the school district from fiscal year 2007
appropriations, | ||
then the State Board of
Education, subject to appropriation, | ||
shall make a fiscal year 2008 transitional assistance payment
| ||
to the school district in an amount equal to the difference | ||
between the
estimated amount to be paid from fiscal year 2008 | ||
appropriations and
the amount paid from fiscal year 2007 | ||
appropriations.
| ||
(Source: P.A. 93-21, eff. 7-1-03; 93-838, eff. 7-30-04; 94-69, | ||
eff. 7-1-05; 94-835, eff. 6-6-06.)
| ||
(105 ILCS 5/2-3.143 new)
| ||
Sec. 2-3.143. Lincoln's ChalleNGe Academy study. The State | ||
Board of Education shall conduct a study to consider the need | ||
for an expansion of enrollment at or the replication of | ||
services in other portions of this State for the Lincoln's | ||
ChalleNGe Academy as an alternative program for students who | ||
have dropped out of traditional school. | ||
(105 ILCS 5/2-3.146 new)
| ||
Sec. 2-3.146. Severely overcrowded schools grant program. | ||
There is created a grant program, subject to appropriation, for | ||
severely overcrowded schools. The State Board of Education | ||
shall administer the program. Grant funds may be used for | ||
purposes of relieving overcrowding. In order for a school |
district to be eligible for a grant under this Section, (i) the | ||
main administrative office of the district must be located in a | ||
city of 85,000 or more in population, according to the 2000 | ||
U.S. Census, (ii) the school district must have a district-wide | ||
percentage of low-income students of 70% or more, as identified | ||
by the 2005-2006 School Report Cards published by the State | ||
Board of Education, and (iii) the school district must not be | ||
eligible for a fast growth grant under Section 18-8.10 of this | ||
Code. The State Board of Education shall distribute the funds | ||
on a proportional basis with no single district receiving more | ||
than 75% of the funds in any given year. The State Board of | ||
Education may adopt rules as needed for the implementation and | ||
distribution of grants under this Section.
| ||
(105 ILCS 5/7-14A) (from Ch. 122, par. 7-14A)
| ||
Sec. 7-14A. Annexation Compensation. There shall be no | ||
accounting
made after a mere change in boundaries when no new | ||
district is created , except that those districts whose | ||
enrollment increases by 90% or more as a result of annexing | ||
territory detached from another district pursuant to this | ||
Article are eligible for supplementary State aid payments in | ||
accordance with Section 11E-135 of this Code. Eligible annexing | ||
districts shall apply to the State Board of Education for | ||
supplementary State aid payments by submitting enrollment | ||
figures for the year immediately preceding and the year | ||
immediately following the effective date of the boundary change |
for both the district gaining territory and the district losing | ||
territory. Copies of any intergovernmental agreements between | ||
the district gaining territory and the district losing | ||
territory detailing any transfer of fund balances and staff | ||
must also be submitted. In all instances of changes in | ||
boundaries,
.
However, the district losing territory shall
not | ||
count the average daily attendance of pupils living in the | ||
territory
during the year preceding the effective date of the | ||
boundary change in its
claim for reimbursement under Section | ||
18-8 for the school year following
the effective date of the | ||
change in boundaries and the district receiving
the territory | ||
shall count the average daily attendance of pupils living in
| ||
the territory during the year preceding the effective date of | ||
the boundary
change in its claim for reimbursement under | ||
Section 18-8 for the school
year following the effective date | ||
of the change in boundaries. The changes to this Section made | ||
by this amendatory Act of the 95th General Assembly are | ||
intended to be retroactive and applicable to any annexation | ||
taking effect on or after July 1, 2004.
| ||
(Source: P.A. 84-1250.)
| ||
(105 ILCS 5/10-20.40 new)
| ||
Sec. 10-20.40. Report on contracts. | ||
(a) This Section applies to all school districts, including | ||
a school district organized under Article 34 of this Code. | ||
(b) A school board must
list on the district's Internet |
website, if any, all contracts
over $25,000 and any contract | ||
that the school board enters into
with an exclusive bargaining | ||
representative. | ||
(c) Each year, in conjunction with the submission of the | ||
Statement of Affairs to the State Board of Education prior to | ||
December, 1 provided for in Section 10-17, each school district | ||
shall submit to the State Board of Education an annual report | ||
on all contracts over $25,000 awarded by the school district | ||
during the previous fiscal year. The report shall include at | ||
least the following: | ||
(1) the total number of all contracts awarded by the | ||
school district; | ||
(2) the total value of all contracts awarded; | ||
(3) the number of contracts awarded to minority owned | ||
businesses, female owned businesses, and businesses owned | ||
by persons with disabilities, as defined in the Business | ||
Enterprise for Minorities, Females and Persons with | ||
Disabilities Act, and locally owned businesses; and | ||
(4) the total value of contracts awarded to minority | ||
owned businesses, female owned businesses, and businesses | ||
owned by persons with disabilities, as defined in the | ||
Business Enterprise for Minorities, Females and Persons | ||
with Disabilities Act, and locally owned businesses. | ||
The report shall be made available to the public, including | ||
publication on the school district's Internet website, if any. |
(105 ILCS 5/10-20.41 new)
| ||
Sec. 10-20.41. Pay for performance.
| ||
(a) Beginning with all newly-negotiated collective | ||
bargaining agreements entered into after the effective date of | ||
this amendatory Act of the 95th General Assembly, a school | ||
board and the exclusive bargaining representative, if any, may | ||
include a performance-based teacher compensation plan in the | ||
subject of its collective bargaining agreement. Nothing in this | ||
Section shall preclude the school board and the exclusive | ||
bargaining representative from agreeing to and implementing a | ||
new performance-based teacher compensation plan prior to the | ||
termination of the current collective bargaining agreement. | ||
(b) The new teacher compensation plan bargained and agreed | ||
to by the school board and the exclusive bargaining | ||
representative under subsection (a) of this Section shall | ||
provide certificated personnel with base salaries and shall | ||
also provide that any increases in the compensation of | ||
individual teachers or groups of teachers beyond base salaries | ||
shall be pursuant, but not limited to, any of the following | ||
elements: | ||
(1) Superior teacher evaluations based on multiple | ||
evaluations of their classroom teaching. | ||
(2) Evaluation of a teacher's student classroom-level | ||
achievement growth as measured using a value-added model. | ||
"Value-added" means the improvement gains in student | ||
achievement that are made each year based on pre-test and |
post-test outcomes. | ||
(3) Evaluation of school-level achievement growth as | ||
measured using a value-added model. "Value-added" means | ||
the improvement gains in student achievement that are made | ||
each year based on pre-test and post-test outcomes. | ||
(4) Demonstration of superior, outstanding performance | ||
by an individual teacher or groups of teachers through the | ||
meeting of unique and specific teaching practice | ||
objectives defined and agreed to in advance in any given | ||
school year. | ||
(5) Preparation for meeting and contribution to the | ||
broader needs of the school organization (e.g., curriculum | ||
development, family liaison and community outreach, | ||
implementation of a professional development program for | ||
faculty, and participation in school management).
| ||
(c) A school board and exclusive bargaining representative | ||
that initiate their own performance-based teacher compensation | ||
program shall submit the new plan to the State Board of | ||
Education for review not later than 150 days before the plan is | ||
to become effective. If the plan does not conform to this | ||
Section, the State Board of Education shall return the plan to | ||
the school board and the exclusive bargaining representative | ||
for modification. The school board and the exclusive bargaining | ||
representative shall then have 30 days after the plan is | ||
returned to them to submit a modified plan.
|
(105 ILCS 5/11E-135) | ||
Sec. 11E-135. Incentives. For districts reorganizing under | ||
this Article and for a district or districts that annex all of | ||
the territory of one or more entire other school districts in | ||
accordance with Article 7 of this Code, the following payments | ||
shall be made from appropriations made for these purposes: | ||
(a)(1) For a combined school district, as defined in | ||
Section 11E-20 of this Code, or for a unit district, as defined | ||
in Section 11E-25 of this Code, for its first year of | ||
existence, the general State aid and supplemental general State | ||
aid calculated under Section 18-8.05 of this Code shall be | ||
computed for the new district and for the previously existing | ||
districts for which property is totally included within the new | ||
district. If the computation on the basis of the previously | ||
existing districts is greater, a supplementary payment equal to | ||
the difference shall be made for the first 4 years of existence | ||
of the new district. | ||
(2) For a school district that annexes all of the territory | ||
of one or more entire other school districts as defined in | ||
Article 7 of this Code, for the first year during which the | ||
change of boundaries attributable to the annexation becomes | ||
effective for all purposes, as determined under Section 7-9 of | ||
this Code, the general State aid and supplemental general State | ||
aid calculated under Section 18-8.05 of this Code shall be | ||
computed for the annexing district as constituted after the | ||
annexation and for the annexing and each annexed district as |
constituted prior to the annexation; and if the computation on | ||
the basis of the annexing and annexed districts as constituted | ||
prior to the annexation is greater, then a supplementary | ||
payment equal to the difference shall be made for the first 4 | ||
years of existence of the annexing school district as | ||
constituted upon the annexation. | ||
(3) For 2 or more school districts that annex all of the | ||
territory of one or more entire other school districts, as | ||
defined in Article 7 of this Code, for the first year during | ||
which the change of boundaries attributable to the annexation | ||
becomes effective for all purposes, as determined under Section | ||
7-9 of this Code, the general State aid and supplemental | ||
general State aid calculated under Section 18-8.05 of this Code | ||
shall be computed for each annexing district as constituted | ||
after the annexation and for each annexing and annexed district | ||
as constituted prior to the annexation; and if the aggregate of | ||
the general State aid and supplemental general State aid as so | ||
computed for the annexing districts as constituted after the | ||
annexation is less than the aggregate of the general State aid | ||
and supplemental general State aid as so computed for the | ||
annexing and annexed districts, as constituted prior to the | ||
annexation, then a supplementary payment equal to the | ||
difference shall be made and allocated between or among the | ||
annexing districts, as constituted upon the annexation, for the | ||
first 4 years of their existence. The total difference payment | ||
shall be allocated between or among the annexing districts in |
the same ratio as the pupil enrollment from that portion of the | ||
annexed district or districts that is annexed to each annexing | ||
district bears to the total pupil enrollment from the entire | ||
annexed district or districts, as such pupil enrollment is | ||
determined for the school year last ending prior to the date | ||
when the change of boundaries attributable to the annexation | ||
becomes effective for all purposes. The amount of the total | ||
difference payment and the amount thereof to be allocated to | ||
the annexing districts shall be computed by the State Board of | ||
Education on the basis of pupil enrollment and other data that | ||
shall be certified to the State Board of Education, on forms | ||
that it shall provide for that purpose, by the regional | ||
superintendent of schools for each educational service region | ||
in which the annexing and annexed districts are located. | ||
(4) For a school district conversion, as defined in Section | ||
11E-15 of this Code, or a multi-unit conversion, as defined in | ||
subsection (b) of Section 11E-30 of this Code, if in their | ||
first year of existence the newly created elementary districts | ||
and the newly created high school district, from a school | ||
district conversion, or the newly created elementary district | ||
or districts and newly created combined high school - unit | ||
district, from a multi-unit conversion, qualify for less | ||
general State aid under Section 18-8.05 of this Code than would | ||
have been payable under Section 18-8.05 for that same year to | ||
the previously existing districts, then a supplementary | ||
payment equal to that difference shall be made for the first 4 |
years of existence of the newly created districts. The | ||
aggregate amount of each supplementary payment shall be | ||
allocated among the newly created districts in the proportion | ||
that the deemed pupil enrollment in each district during its | ||
first year of existence bears to the actual aggregate pupil | ||
enrollment in all of the districts during their first year of | ||
existence. For purposes of each allocation: | ||
(A) the deemed pupil enrollment of the newly created | ||
high school district from a school district conversion | ||
shall be an amount equal to its actual pupil enrollment for | ||
its first year of existence multiplied by 1.25; | ||
(B) the deemed pupil enrollment of each newly created | ||
elementary district from a school district conversion | ||
shall be an amount equal to its actual pupil enrollment for | ||
its first year of existence reduced by an amount equal to | ||
the product obtained when the amount by which the newly | ||
created high school district's deemed pupil enrollment | ||
exceeds its actual pupil enrollment for its first year of | ||
existence is multiplied by a fraction, the numerator of | ||
which is the actual pupil enrollment of the newly created | ||
elementary district for its first year of existence and the | ||
denominator of which is the actual aggregate pupil | ||
enrollment of all of the newly created elementary districts | ||
for their first year of existence; | ||
(C) the deemed high school pupil enrollment of the | ||
newly created combined high school - unit district from a |
multi-unit conversion shall be an amount equal to its | ||
actual grades 9 through 12 pupil enrollment for its first | ||
year of existence multiplied by 1.25; and | ||
(D) the deemed elementary pupil enrollment of each | ||
newly created district from a multi-unit conversion shall | ||
be an amount equal to each district's actual grade K | ||
through 8 pupil enrollment for its first year of existence, | ||
reduced by an amount equal to the product obtained when the | ||
amount by which the newly created combined high school - | ||
unit district's deemed high school pupil enrollment | ||
exceeds its actual grade 9 through 12 pupil enrollment for | ||
its first year of existence is multiplied by a fraction, | ||
the numerator of which is the actual grade K through 8 | ||
pupil enrollment of each newly created district for its | ||
first year of existence and the denominator of which is the | ||
actual aggregate grade K through 8 pupil enrollment of all | ||
such newly created districts for their first year of | ||
existence. | ||
The aggregate amount of each supplementary payment under | ||
this subdivision (4) and the amount thereof to be allocated to | ||
the newly created districts shall be computed by the State | ||
Board of Education on the basis of pupil enrollment and other | ||
data, which shall be certified to the State Board of Education, | ||
on forms that it shall provide for that purpose, by the | ||
regional superintendent of schools for each educational | ||
service region in which the newly created districts are |
located.
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(5) For a partial elementary unit district, as defined in | ||
subsection (a) or (c) of Section 11E-30 of this Code, if, in | ||
the first year of existence, the newly created partial | ||
elementary unit district qualifies for less general State aid | ||
and supplemental general State aid under Section 18-8.05 of | ||
this Code than would have been payable under that Section for | ||
that same year to the previously existing districts that formed | ||
the partial elementary unit district, then a supplementary | ||
payment equal to that difference shall be made to the partial | ||
elementary unit district for the first 4 years of existence of | ||
that newly created district. | ||
(6) For an elementary opt-in, as described in subsection | ||
(d) of Section 11E-30 of this Code, the general State aid | ||
difference shall be computed in accordance with paragraph (5) | ||
of this subsection (a) as if the elementary opt-in was included | ||
in an optional elementary unit district at the optional | ||
elementary unit district's original effective date. If the | ||
calculation in this paragraph (6) is less than that calculated | ||
in paragraph (5) of this subsection (a) at the optional | ||
elementary unit district's original effective date, then no | ||
adjustments may be made. If the calculation in this paragraph | ||
(6) is more than that calculated in paragraph (5) of this | ||
subsection (a) at the optional elementary unit district's | ||
original effective date, then the excess must be paid as | ||
follows: |
(A) If the effective date for the elementary opt-in is | ||
one year after the effective date for the optional | ||
elementary unit district, 100% of the calculated excess | ||
shall be paid to the optional elementary unit district in | ||
each of the first 4 years after the effective date of the | ||
elementary opt-in. | ||
(B) If the effective date for the elementary opt-in is | ||
2 years after the effective date for the optional | ||
elementary unit district, 75% of the calculated excess | ||
shall be paid to the optional elementary unit district in | ||
each of the first 4 years after the effective date of the | ||
elementary opt-in. | ||
(C) If the effective date for the elementary opt-in is | ||
3 years after the effective date for the optional | ||
elementary unit district, 50% of the calculated excess | ||
shall be paid to the optional elementary unit district in | ||
each of the first 4 years after the effective date of the | ||
elementary opt-in. | ||
(D) If the effective date for the elementary opt-in is | ||
4 years after the effective date for the optional | ||
elementary unit district, 25% of the calculated excess | ||
shall be paid to the optional elementary unit district in | ||
each of the first 4 years after the effective date of the | ||
elementary opt-in. | ||
(E) If the effective date for the elementary opt-in is | ||
5 years after the effective date for the optional |
elementary unit district, the optional elementary unit | ||
district is not eligible for any additional incentives due | ||
to the elementary opt-in. | ||
(6.5) For a school district that annexes territory detached | ||
from another school district whereby the enrollment of the | ||
annexing district increases by 90% or more as a result of the | ||
annexation, for the first year during which the change of | ||
boundaries attributable to the annexation becomes effective | ||
for all purposes as determined under Section 7-9 of this Code, | ||
the general State aid and supplemental general State aid | ||
calculated under this Section shall be computed for the | ||
district gaining territory and the district losing territory as | ||
constituted after the annexation and for the same districts as | ||
constituted prior to the annexation; and if the aggregate of | ||
the general State aid and supplemental general State aid as so | ||
computed for the district gaining territory and the district | ||
losing territory as constituted after the annexation is less | ||
than the aggregate of the general State aid and supplemental | ||
general State aid as so computed for the district gaining | ||
territory and the district losing territory as constituted | ||
prior to the annexation, then a supplementary payment shall be | ||
made to the annexing district for the first 4 years of | ||
existence after the annexation, equal to the difference | ||
multiplied by the ratio of student enrollment in the territory | ||
detached to the total student enrollment in the district losing | ||
territory for the year prior to the effective date of the |
annexation. The amount of the total difference and the | ||
proportion paid to the annexing district shall be computed by | ||
the State Board of Education on the basis of pupil enrollment | ||
and other data that must be submitted to the State Board of | ||
Education in accordance with Section 7-14A of this Code. The | ||
changes to this Section made by this amendatory Act of the 95th | ||
General Assembly are intended to be retroactive and applicable | ||
to any annexation taking effect on or after July 1, 2004. For | ||
annexations that are eligible for payments under this paragraph | ||
(6.5) and that are effective on or after July 1, 2004, but | ||
before the effective date of this amendatory Act of the 95th | ||
General Assembly, the first required yearly payment under this | ||
paragraph (6.5) shall be paid in the fiscal year of the | ||
effective date of this amendatory Act of the 95th General | ||
Assembly. Subsequent required yearly payments shall be paid in | ||
subsequent fiscal years until the payment obligation under this | ||
paragraph (6.5) is complete.
| ||
(7) Claims for financial assistance under this subsection | ||
(a) may not be recomputed except as expressly provided under | ||
Section 18-8.05 of this Code. | ||
(8) Any supplementary payment made under this subsection | ||
(a) must be treated as separate from all other payments made | ||
pursuant to Section 18-8.05 of this Code. | ||
(b)(1) After the formation of a combined school district, | ||
as defined in Section 11E-20 of this Code, or a unit district, | ||
as defined in Section 11E-25 of this Code, a computation shall |
be made to determine the difference between the salaries | ||
effective in each of the previously existing districts on June | ||
30, prior to the creation of the new district. For the first 4 | ||
years after the formation of the new district, a supplementary | ||
State aid reimbursement shall be paid to the new district equal | ||
to the difference between the sum of the salaries earned by | ||
each of the certificated members of the new district, while | ||
employed in one of the previously existing districts during the | ||
year immediately preceding the formation of the new district, | ||
and the sum of the salaries those certificated members would | ||
have been paid during the year immediately prior to the | ||
formation of the new district if placed on the salary schedule | ||
of the previously existing district with the highest salary | ||
schedule. | ||
(2) After the territory of one or more school districts is | ||
annexed by one or more other school districts as defined in | ||
Article 7 of this Code, a computation shall be made to | ||
determine the difference between the salaries effective in each | ||
annexed district and in the annexing district or districts as | ||
they were each constituted on June 30 preceding the date when | ||
the change of boundaries attributable to the annexation became | ||
effective for all purposes, as determined under Section 7-9 of | ||
this Code. For the first 4 years after the annexation, a | ||
supplementary State aid reimbursement shall be paid to each | ||
annexing district as constituted after the annexation equal to | ||
the difference between the sum of the salaries earned by each |
of the certificated members of the annexing district as | ||
constituted after the annexation, while employed in an annexed | ||
or annexing district during the year immediately preceding the | ||
annexation, and the sum of the salaries those certificated | ||
members would have been paid during the immediately preceding | ||
year if placed on the salary schedule of whichever of the | ||
annexing or annexed districts had the highest salary schedule | ||
during the immediately preceding year. | ||
(3) For each new high school district formed under a school | ||
district conversion, as defined in Section 11E-15 of this Code, | ||
the State shall make a supplementary payment for 4 years equal | ||
to the difference between the sum of the salaries earned by | ||
each certified member of the new high school district, while | ||
employed in one of the previously existing districts, and the | ||
sum of the salaries those certified members would have been | ||
paid if placed on the salary schedule of the previously | ||
existing district with the highest salary schedule. | ||
(4) For each newly created partial elementary unit | ||
district, the State shall make a supplementary payment for 4 | ||
years equal to the difference between the sum of the salaries | ||
earned by each certified member of the newly created partial | ||
elementary unit district, while employed in one of the | ||
previously existing districts that formed the partial | ||
elementary unit district, and the sum of the salaries those | ||
certified members would have been paid if placed on the salary | ||
schedule of the previously existing district with the highest |
salary schedule. The salary schedules used in the calculation | ||
shall be those in effect in the previously existing districts | ||
for the school year prior to the creation of the new partial | ||
elementary unit district. | ||
(5) For an elementary district opt-in, as described in | ||
subsection (d) of Section 11E-30 of this Code, the salary | ||
difference incentive shall be computed in accordance with | ||
paragraph (4) of this subsection (b) as if the opted-in | ||
elementary district was included in the optional elementary | ||
unit district at the optional elementary unit district's | ||
original effective date. If the calculation in this paragraph | ||
(5) is less than that calculated in paragraph (4) of this | ||
subsection (b) at the optional elementary unit district's | ||
original effective date, then no adjustments may be made. If | ||
the calculation in this paragraph (5) is more than that | ||
calculated in paragraph (4) of this subsection (b) at the | ||
optional elementary unit district's original effective date, | ||
then the excess must be paid as follows: | ||
(A) If the effective date for the elementary opt-in is | ||
one year after the effective date for the optional | ||
elementary unit district, 100% of the calculated excess | ||
shall be paid to the optional elementary unit district in | ||
each of the first 4 years after the effective date of the | ||
elementary opt-in. | ||
(B) If the effective date for the elementary opt-in is | ||
2 years after the effective date for the optional |
elementary unit district, 75% of the calculated excess | ||
shall be paid to the optional elementary unit district in | ||
each of the first 4 years after the effective date of the | ||
elementary opt-in. | ||
(C) If the effective date for the elementary opt-in is | ||
3 years after the effective date for the optional | ||
elementary unit district, 50% of the calculated excess | ||
shall be paid to the optional elementary unit district in | ||
each of the first 4 years after the effective date of the | ||
elementary opt-in. | ||
(D) If the effective date for the elementary opt-in is | ||
4 years after the effective date for the partial elementary | ||
unit district, 25% of the calculated excess shall be paid | ||
to the optional elementary unit district in each of the | ||
first 4 years after the effective date of the elementary | ||
opt-in. | ||
(E) If the effective date for the elementary opt-in is | ||
5 years after the effective date for the optional | ||
elementary unit district, the optional elementary unit | ||
district is not eligible for any additional incentives due | ||
to the elementary opt-in. | ||
(5.5)
(b-5) After the formation of a cooperative high | ||
school by 2 or more school districts under Section 10-22.22c of | ||
this Code, a computation shall be made to determine the | ||
difference between the salaries effective in each of the | ||
previously existing high schools on June 30 prior to the |
formation of the cooperative high school. For the first 4 years | ||
after the formation of the cooperative high school, a | ||
supplementary State aid reimbursement shall be paid to the | ||
cooperative high school equal to the difference between the sum | ||
of the salaries earned by each of the certificated members of | ||
the cooperative high school while employed in one of the | ||
previously existing high schools during the year immediately | ||
preceding the formation of the cooperative high school and the | ||
sum of the salaries those certificated members would have been | ||
paid during the year immediately prior to the formation of the | ||
cooperative high school if placed on the salary schedule of the | ||
previously existing high school with the highest salary | ||
schedule. | ||
(5.10) After the annexation of territory detached from
| ||
another school district whereby the enrollment of the annexing
| ||
district increases by 90% or more as a result of the
| ||
annexation, a computation shall be made to determine the
| ||
difference between the salaries effective in the district
| ||
gaining territory and the district losing territory as they
| ||
each were constituted on June 30 preceding the date when the
| ||
change of boundaries attributable to the annexation became
| ||
effective for all purposes as determined under Section 7-9 of
| ||
this Code. For the first 4 years after the annexation, a
| ||
supplementary State aid reimbursement shall be paid to the
| ||
annexing district equal to the difference between the sum of
| ||
the salaries earned by each of the certificated members of the
|
annexing district as constituted after the annexation while
| ||
employed in the district gaining territory or the district
| ||
losing territory during the year immediately preceding the
| ||
annexation and the sum of the salaries those certificated
| ||
members would have been paid during such immediately preceding
| ||
year if placed on the salary schedule of whichever of the
| ||
district gaining territory or district losing territory had the
| ||
highest salary schedule during the immediately preceding year.
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To be eligible for supplementary State aid reimbursement under
| ||
this Section, the intergovernmental agreement to be submitted
| ||
pursuant to Section 7-14A of this Code must show that staff
| ||
members were transferred from the control of the district
| ||
losing territory to the control of the district gaining
| ||
territory in the annexation. The changes to this Section made
| ||
by this amendatory Act of the 95th General Assembly are
| ||
intended to be retroactive and applicable to any annexation
| ||
taking effect on or after July 1, 2004. For annexations that | ||
are eligible for payments under this paragraph (5.10) and that | ||
are effective on or after July 1, 2004, but before the | ||
effective date of this amendatory Act of the 95th General | ||
Assembly, the first required yearly payment under this | ||
paragraph (5.10) shall be paid in the fiscal year of the | ||
effective date of this amendatory Act of the 95th General | ||
Assembly. Subsequent required yearly payments shall be paid in | ||
subsequent fiscal years until the payment obligation under this | ||
paragraph (5.10) is complete.
|
(6) The supplementary State aid reimbursement under this | ||
subsection (b) shall be treated as separate from all other | ||
payments made pursuant to Section 18-8.05 of this Code. In the | ||
case of the formation of a new district or cooperative high | ||
school, reimbursement shall begin during the first year of | ||
operation of the new district or cooperative high school, and | ||
in the case of an annexation of the territory of one or more | ||
school districts by one or more other school districts or the | ||
annexation of territory detached from a school district whereby
| ||
the enrollment of the annexing district increases by 90% or
| ||
more as a result of the annexation , reimbursement shall begin | ||
during the first year when the change in boundaries | ||
attributable to the annexation or division becomes effective | ||
for all purposes as determined pursuant to Section 7-9 of this | ||
Code , except that for an annexation of territory detached from | ||
a school district that is effective on or after July 1, 2004, | ||
but before the effective date of this amendatory Act of the | ||
95th General Assembly, whereby the enrollment of the annexing | ||
district increases by 90% or more as a result of the | ||
annexation, reimbursement shall begin during the fiscal year of | ||
the effective date of this amendatory Act of the 95th General | ||
Assembly . Each year that the new, annexing, or resulting | ||
district or cooperative high school, as the case may be, is | ||
entitled to receive reimbursement, the number of eligible | ||
certified members who are employed on October 1 in the district | ||
or cooperative high school shall be certified to the State |
Board of Education on prescribed forms by October 15 and | ||
payment shall be made on or before November 15 of that year. | ||
(c)(1) For the first year after the formation of a combined | ||
school district, as defined in Section 11E-20 of this Code or a | ||
unit district, as defined in Section 11E-25 of this Code, a | ||
computation shall be made totaling each previously existing | ||
district's audited fund balances in the educational fund, | ||
working cash fund, operations and maintenance fund, and | ||
transportation fund for the year ending June 30 prior to the | ||
referendum for the creation of the new district. The new | ||
district shall be paid supplementary State aid equal to the sum | ||
of the differences between the deficit of the previously | ||
existing district with the smallest deficit and the deficits of | ||
each of the other previously existing districts. | ||
(2) For the first year after the annexation of all of the | ||
territory of one or more entire school districts by another | ||
school district, as defined in Article 7 of this Code, | ||
computations shall be made, for the year ending June 30 prior | ||
to the date that the change of boundaries attributable to the | ||
annexation is allowed by the affirmative decision issued by the | ||
regional board of school trustees under Section 7-6 of this | ||
Code, notwithstanding any effort to seek administrative review | ||
of the decision, totaling the annexing district's and totaling | ||
each annexed district's audited fund balances in their | ||
respective educational, working cash, operations and | ||
maintenance, and transportation funds. The annexing district |
as constituted after the annexation shall be paid supplementary | ||
State aid equal to the sum of the differences between the | ||
deficit of whichever of the annexing or annexed districts as | ||
constituted prior to the annexation had the smallest deficit | ||
and the deficits of each of the other districts as constituted | ||
prior to the annexation. | ||
(3) For the first year after the annexation of all of the | ||
territory of one or more entire school districts by 2 or more | ||
other school districts, as defined by Article 7 of this Code, | ||
computations shall be made, for the year ending June 30 prior | ||
to the date that the change of boundaries attributable to the | ||
annexation is allowed by the affirmative decision of the | ||
regional board of school trustees under Section 7-6 of this | ||
Code, notwithstanding any action for administrative review of | ||
the decision, totaling each annexing and annexed district's | ||
audited fund balances in their respective educational, working | ||
cash, operations and maintenance, and transportation funds. | ||
The annexing districts as constituted after the annexation | ||
shall be paid supplementary State aid, allocated as provided in | ||
this paragraph (3), in an aggregate amount equal to the sum of | ||
the differences between the deficit of whichever of the | ||
annexing or annexed districts as constituted prior to the | ||
annexation had the smallest deficit and the deficits of each of | ||
the other districts as constituted prior to the annexation. The | ||
aggregate amount of the supplementary State aid payable under | ||
this paragraph (3) shall be allocated between or among the |
annexing districts as follows: | ||
(A) the regional superintendent of schools for each | ||
educational service region in which an annexed district is | ||
located prior to the annexation shall certify to the State | ||
Board of Education, on forms that it shall provide for that | ||
purpose, the value of all taxable property in each annexed | ||
district, as last equalized or assessed by the Department | ||
of Revenue prior to the annexation, and the equalized | ||
assessed value of each part of the annexed district that | ||
was annexed to or included as a part of an annexing | ||
district; | ||
(B) using equalized assessed values as certified by the | ||
regional superintendent of schools under clause (A) of this | ||
paragraph (3), the combined audited fund balance deficit of | ||
each annexed district as determined under this Section | ||
shall be apportioned between or among the annexing | ||
districts in the same ratio as the equalized assessed value | ||
of that part of the annexed district that was annexed to or | ||
included as a part of an annexing district bears to the | ||
total equalized assessed value of the annexed district; and | ||
(C) the aggregate supplementary State aid payment | ||
under this paragraph (3) shall be allocated between or | ||
among, and shall be paid to, the annexing districts in the | ||
same ratio as the sum of the combined audited fund balance | ||
deficit of each annexing district as constituted prior to | ||
the annexation, plus all combined audited fund balance |
deficit amounts apportioned to that annexing district | ||
under clause (B) of this subsection, bears to the aggregate | ||
of the combined audited fund balance deficits of all of the | ||
annexing and annexed districts as constituted prior to the | ||
annexation. | ||
(4) For the new elementary districts and new high school | ||
district formed through a school district conversion, as | ||
defined in subsection (b) of Section 11E-15 of this Code or the | ||
new elementary district or districts and new combined high | ||
school - unit district formed through a multi-unit conversion, | ||
as defined in subsection (b) of Section 11E-30 of this Code, a | ||
computation shall be made totaling each previously existing | ||
district's audited fund balances in the educational fund, | ||
working cash fund, operations and maintenance fund, and | ||
transportation fund for the year ending June 30 prior to the | ||
referendum establishing the new districts. In the first year of | ||
the new districts, the State shall make a one-time | ||
supplementary payment equal to the sum of the differences | ||
between the deficit of the previously existing district with | ||
the smallest deficit and the deficits of each of the other | ||
previously existing districts. A district with a combined | ||
balance among the 4 funds that is positive shall be considered | ||
to have a deficit of zero. The supplementary payment shall be | ||
allocated among the newly formed high school and elementary | ||
districts in the manner provided by the petition for the | ||
formation of the districts, in the form in which the petition |
is approved by the regional superintendent of schools or State | ||
Superintendent of Education under Section 11E-50 of this Code. | ||
(5) For each newly created partial elementary unit | ||
district, as defined in subsection (a) or (c) of Section 11E-30 | ||
of this Code, a computation shall be made totaling the audited | ||
fund balances of each previously existing district that formed | ||
the new partial elementary unit district in the educational | ||
fund, working cash fund, operations and maintenance fund, and | ||
transportation fund for the year ending June 30 prior to the | ||
referendum for the formation of the partial elementary unit | ||
district. In the first year of the new partial elementary unit | ||
district, the State shall make a one-time supplementary payment | ||
to the new district equal to the sum of the differences between | ||
the deficit of the previously existing district with the | ||
smallest deficit and the deficits of each of the other | ||
previously existing districts. A district with a combined | ||
balance among the 4 funds that is positive shall be considered | ||
to have a deficit of zero. | ||
(6) For an elementary opt-in as defined in subsection (d) | ||
of Section 11E-30 of this Code, the deficit fund balance | ||
incentive shall be computed in accordance with paragraph (5) of | ||
this subsection (c) as if the opted-in elementary was included | ||
in the optional elementary unit district at the optional | ||
elementary unit district's original effective date. If the | ||
calculation in this paragraph (6) is less than that calculated | ||
in paragraph (5) of this subsection (c) at the optional |
elementary unit district's original effective date, then no | ||
adjustments may be made. If the calculation in this paragraph | ||
(6) is more than that calculated in paragraph (5) of this | ||
subsection (c) at the optional elementary unit district's | ||
original effective date, then the excess must be paid as | ||
follows: | ||
(A) If the effective date for the elementary opt-in is | ||
one year after the effective date for the optional | ||
elementary unit district, 100% of the calculated excess | ||
shall be paid to the optional elementary unit district in | ||
the first year after the effective date of the elementary | ||
opt-in. | ||
(B) If the effective date for the elementary opt-in is | ||
2 years after the effective date for the optional | ||
elementary unit district, 75% of the calculated excess | ||
shall be paid to the optional elementary unit district in | ||
the first year after the effective date of the elementary | ||
opt-in. | ||
(C) If the effective date for the elementary opt-in is | ||
3 years after the effective date for the optional | ||
elementary unit district, 50% of the calculated excess | ||
shall be paid to the optional elementary unit district in | ||
the first year after the effective date of the elementary | ||
opt-in. | ||
(D) If the effective date for the elementary opt-in is | ||
4 years after the effective date for the optional |
elementary unit district, 25% of the calculated excess | ||
shall be paid to the optional elementary unit district in | ||
the first year after the effective date of the elementary | ||
opt-in. | ||
(E) If the effective date for the elementary opt-in is | ||
5 years after the effective date for the optional | ||
elementary unit district, the optional elementary unit | ||
district is not eligible for any additional incentives due | ||
to the elementary opt-in. | ||
(6.5) For the first year after the annexation of territory
| ||
detached from another school district whereby the enrollment of
| ||
the annexing district increases by 90% or more as a result of
| ||
the annexation, a computation shall be made totaling the
| ||
audited fund balances of the district gaining territory and the
| ||
audited fund balances of the district losing territory in the
| ||
educational fund, working cash fund, operations and
| ||
maintenance fund, and transportation fund for the year ending
| ||
June 30 prior to the date that the change of boundaries
| ||
attributable to the annexation is allowed by the affirmative
| ||
decision of the regional board of school trustees under Section
| ||
7-6 of this Code, notwithstanding any action for administrative
| ||
review of the decision. The annexing district as constituted
| ||
after the annexation shall be paid supplementary State aid
| ||
equal to the difference between the deficit of whichever
| ||
district included in this calculation as constituted prior to
| ||
the annexation had the smallest deficit and the deficit of each
|
other district included in this calculation as constituted
| ||
prior to the annexation, multiplied by the ratio of equalized
| ||
assessed value of the territory detached to the total equalized
| ||
assessed value of the district losing territory. The regional
| ||
superintendent of schools for the educational service region in
| ||
which a district losing territory is located prior to the
| ||
annexation shall certify to the State Board of Education the
| ||
value of all taxable property in the district losing territory
| ||
and the value of all taxable property in the territory being
| ||
detached, as last equalized or assessed by the Department of
| ||
Revenue prior to the annexation. To be eligible for
| ||
supplementary State aid reimbursement under this Section, the
| ||
intergovernmental agreement to be submitted pursuant to
| ||
Section 7-14A of this Code must show that fund balances were
| ||
transferred from the district losing territory to the district
| ||
gaining territory in the annexation. The changes to this
| ||
Section made by this amendatory Act of the 95th General
| ||
Assembly are intended to be retroactive and applicable to any
| ||
annexation taking effect on or after July 1, 2004. For | ||
annexations that are eligible for payments under this paragraph | ||
(6.5) and that are effective on or after July 1, 2004, but | ||
before the effective date of this amendatory Act of the 95th | ||
General Assembly, the required payment under this paragraph | ||
(6.5) shall be paid in the fiscal year of the effective date of | ||
this amendatory Act of the 95th General Assembly.
| ||
(7) For purposes of any calculation required under |
paragraph (1), (2), (3), (4), (5), or (6) , or (6.5) of this | ||
subsection (c), a district with a combined fund balance that is | ||
positive shall be considered to have a deficit of zero. For | ||
purposes of determining each district's audited fund balances | ||
in its educational fund, working cash fund, operations and | ||
maintenance fund, and transportation fund for the specified | ||
year ending June 30, as provided in paragraphs (1), (2), (3), | ||
(4), (5), and (6) , and (6.5) of this subsection (c), the | ||
balance of each fund shall be deemed decreased by an amount | ||
equal to the amount of the annual property tax theretofore | ||
levied in the fund by the district for collection and payment | ||
to the district during the calendar year in which the June 30 | ||
fell, but only to the extent that the tax so levied in the fund | ||
actually was received by the district on or before or comprised | ||
a part of the fund on such June 30. For purposes of determining | ||
each district's audited fund balances, a calculation shall be | ||
made for each fund to determine the average for the 3 years | ||
prior to the specified year ending June 30, as provided in | ||
paragraphs (1), (2), (3), (4), (5), and (6) , and (6.5) of this | ||
subsection (c), of the district's expenditures in the | ||
categories "purchased services", "supplies and materials", and | ||
"capital outlay", as those categories are defined in rules of | ||
the State Board of Education. If this 3-year average is less | ||
than the district's expenditures in these categories for the | ||
specified year ending June 30, as provided in paragraphs (1), | ||
(2), (3), (4), (5), and (6) , and (6.5) of this subsection (c), |
then the 3-year average shall be used in calculating the | ||
amounts payable under this Section in place of the amounts | ||
shown in these categories for the specified year ending June | ||
30, as provided in paragraphs (1), (2), (3), (4), (5), and (6) , | ||
and (6.5) of this subsection (c). Any deficit because of State | ||
aid not yet received may not be considered in determining the | ||
June 30 deficits. The same basis of accounting shall be used by | ||
all previously existing districts and by all annexing or | ||
annexed districts, as constituted prior to the annexation, in | ||
making any computation required under paragraphs (1), (2), (3), | ||
(4), (5), and (6) , and (6.5) of this subsection (c). | ||
(8) The supplementary State aid payments under this | ||
subsection (c) shall be treated as separate from all other | ||
payments made pursuant to Section 18-8.05 of this Code. | ||
(d)(1) Following the formation of a combined school | ||
district, as defined in Section 11E-20 of this Code, a new | ||
elementary district or districts and a new high school district | ||
formed through a school district conversion, as defined in | ||
subsection (b) of Section 11E-15 of this Code, a new partial | ||
elementary unit district, as defined in Section 11E-30 of this | ||
Code, or a new elementary district or districts formed through | ||
a multi-unit conversion, as defined in subsection (b) of | ||
Section 11E-30 of this Code, or the annexation of all of the | ||
territory of one or more entire school districts by one or more | ||
other school districts, as defined in Article 7 of this Code, a | ||
supplementary State aid reimbursement shall be paid for the |
number of school years determined under the following table to | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
each new or annexing district equal to the sum of $4,000 for | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
each certified employee who is employed by the district on a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
full-time basis for the regular term of the school year: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The State Board of Education shall make a one-time calculation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
of a reorganized district's quintile ranks. The average daily | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
attendance used in this calculation shall be the best 3 months' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
average daily attendance for the district's first year. The | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
equalized assessed value per pupil shall be the district's real | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
property equalized assessed value used in calculating the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
district's first-year general State aid claim, under Section |
18-8.05 of this Code, divided by the best 3 months' average | ||
daily attendance. | ||
No annexing or resulting school district shall be entitled | ||
to supplementary State aid under this subsection (d) unless the | ||
district acquires at least 30% of the average daily attendance | ||
of the district from which the territory is being detached or | ||
divided. | ||
If a district results from multiple reorganizations that | ||
would otherwise qualify the district for multiple payments | ||
under this subsection (d) in any year, then the district shall | ||
receive a single payment only for that year based solely on the | ||
most recent reorganization. | ||
(2) For an elementary opt-in, as defined in subsection (d) | ||
of Section 11E-30 of this Code, the full-time certified staff | ||
incentive shall be computed in accordance with paragraph (1) of | ||
this subsection (d), equal to the sum of $4,000 for each | ||
certified employee of the elementary district that opts-in who | ||
is employed by the optional elementary unit district on a | ||
full-time basis for the regular term of the school year. The | ||
calculation from this paragraph (2) must be paid as follows: | ||
(A) If the effective date for the elementary opt-in is | ||
one year after the effective date for the optional | ||
elementary unit district, 100% of the amount calculated in | ||
this paragraph (2) shall be paid to the optional elementary | ||
unit district for the number of years calculated in | ||
paragraph (1) of this subsection (d) at the optional |
elementary unit district's original effective date, | ||
starting in the second year after the effective date of the | ||
elementary opt-in. | ||
(B) If the effective date for the elementary opt-in is | ||
2 years after the effective date for the optional | ||
elementary unit district, 75% of the amount calculated in | ||
this paragraph (2) shall be paid to the optional elementary | ||
unit district for the number of years calculated in | ||
paragraph (1) of this subsection (d) at the optional | ||
elementary unit district's original effective date, | ||
starting in the second year after the effective date of the | ||
elementary opt-in. | ||
(C) If the effective date for the elementary opt-in is | ||
3 years after the effective date for the optional | ||
elementary unit district, 50% of the amount calculated in | ||
this paragraph (2) shall be paid to the optional elementary | ||
unit district for the number of years calculated in | ||
paragraph (1) of this subsection (d) at the optional | ||
elementary unit district's original effective date, | ||
starting in the second year after the effective date of the | ||
elementary opt-in. | ||
(D) If the effective date for the elementary opt-in is | ||
4 years after the effective date for the optional | ||
elementary unit district, 25% of the amount calculated in | ||
this paragraph (2) shall be paid to the optional elementary | ||
unit district for the number of years calculated in |
paragraph (1) of this subsection (d) at the optional | ||
elementary unit district's original effective date, | ||
starting in the second year after the effective date of the | ||
elementary opt-in. | ||
(E) If the effective date for the elementary opt-in is | ||
5 years after the effective date for the optional | ||
elementary unit district, the optional elementary unit | ||
district is not eligible for any additional incentives due | ||
to the elementary opt-in. | ||
(2.5)
(a-5) Following the formation of a cooperative high | ||
school by 2 or more school districts under Section 10-22.22c of | ||
this Code, a supplementary State aid reimbursement shall be | ||
paid for 3 school years to the cooperative high school equal to | ||
the sum of $4,000 for each certified employee who is employed | ||
by the cooperative high school on a full-time basis for the | ||
regular term of any such school year. If a cooperative high | ||
school results from multiple agreements that would otherwise | ||
qualify the cooperative high school for multiple payments under | ||
this Section in any year, the cooperative high school shall | ||
receive a single payment for that year based solely on the most | ||
recent agreement. | ||
(2.10) Following the annexation of territory detached from
| ||
another school district whereby the enrollment of the annexing
| ||
district increases 90% or more as a result of the annexation, a
| ||
supplementary State aid reimbursement shall be paid to the
| ||
annexing district equal to the sum of $4,000 for each certified
|
employee who is employed by the annexing district on a
| ||
full-time basis and shall be calculated in accordance with
| ||
subsection (a) of this Section. To be eligible for
| ||
supplementary State aid reimbursement under this Section, the
| ||
intergovernmental agreement to be submitted pursuant to
| ||
Section 7-14A of this Code must show that certified staff
| ||
members were transferred from the control of the district
| ||
losing territory to the control of the district gaining
| ||
territory in the annexation. The changes to this Section made
| ||
by this amendatory Act of the 95th General Assembly are
| ||
intended to be retroactive and applicable to any annexation
| ||
taking effect on or after July 1, 2004. For annexations that | ||
are eligible for payments under this paragraph (2.10) and that | ||
are effective on or after July 1, 2004, but before the | ||
effective date of this amendatory Act of the 95th General | ||
Assembly, the first required yearly payment under this | ||
paragraph (2.10) shall be paid in the second fiscal year after | ||
the effective date of this amendatory Act of the 95th General | ||
Assembly. Any subsequent required yearly payments shall be paid | ||
in subsequent fiscal years until the payment obligation under | ||
this paragraph (2.10) is complete.
| ||
(3) The supplementary State aid reimbursement payable | ||
under this subsection (d) shall be separate from and in | ||
addition to all other payments made to the district pursuant to | ||
any other Section of this Article. | ||
(4) During May of each school year for which a |
supplementary State aid reimbursement is to be paid to a new or | ||
annexing school district or cooperative high school pursuant to | ||
this subsection (d), the school board or governing board shall | ||
certify to the State Board of Education, on forms furnished to | ||
the school board or governing board by the State Board of | ||
Education for purposes of this subsection (d), the number of | ||
certified employees for which the district or cooperative high | ||
school is entitled to reimbursement under this Section, | ||
together with the names, certificate numbers, and positions | ||
held by the certified employees. | ||
(5) Upon certification by the State Board of Education to | ||
the State Comptroller of the amount of the supplementary State | ||
aid reimbursement to which a school district or cooperative | ||
high school is entitled under this subsection (d), the State | ||
Comptroller shall draw his or her warrant upon the State | ||
Treasurer for the payment thereof to the school district or | ||
cooperative high school and shall promptly transmit the payment | ||
to the school district or cooperative high school through the | ||
appropriate school treasurer.
| ||
(Source: P.A. 94-1019, eff. 7-10-06; incorporates P.A. 94-902, | ||
eff. 7-1-06; revised 9-13-06.)
| ||
(105 ILCS 5/14-13.01) (from Ch. 122, par. 14-13.01)
| ||
Sec. 14-13.01. Reimbursement payable by State; Amounts. | ||
Reimbursement for furnishing special educational facilities in | ||
a
recognized school to the type of children defined in Section |
14-1.02
shall be paid to the school districts in accordance | ||
with Section 14-12.01
for each school year ending June 30 by | ||
the State Comptroller out of any money
in the treasury | ||
appropriated for such purposes on the presentation of vouchers
| ||
by the State Board of Education.
| ||
The reimbursement shall be limited to funds expended for | ||
construction
and maintenance of special education facilities | ||
designed and utilized to
house instructional programs, | ||
diagnostic services, other special
education services for | ||
children with disabilities and
reimbursement as
provided in | ||
Section 14-13.01. There shall be no reimbursement for
| ||
construction and maintenance of any administrative facility | ||
separated
from special education facilities designed and | ||
utilized to house
instructional programs, diagnostic services | ||
and other special education
services for children with | ||
disabilities.
| ||
(a) For children who have not been identified as eligible | ||
for special
education and for eligible children with physical
| ||
disabilities, including all
eligible children whose placement | ||
has been determined under Section 14-8.02 in
hospital or home | ||
instruction, 1/2 of the teacher's salary but not more than
| ||
$1,000 annually per child or $8,000 per teacher for the | ||
1985-1986 school year through the 2005-2006 school year and | ||
$1,000 per child or $9,000 per teacher for the 2006-2007 school | ||
year and for each school year
and thereafter, whichever is | ||
less. Children
to be included in any reimbursement under this |
paragraph must regularly
receive a minimum of one hour of | ||
instruction each school day, or in lieu
thereof of a minimum of | ||
5 hours of instruction in each school week in
order to qualify | ||
for full reimbursement under this Section. If the
attending | ||
physician for such a child has certified that the child should
| ||
not receive as many as 5 hours of instruction in a school week, | ||
however,
reimbursement under this paragraph on account of that | ||
child shall be
computed proportionate to the actual hours of | ||
instruction per week for
that child divided by 5.
| ||
(b) For children described in Section 14-1.02, 4/5 of the | ||
cost of
transportation for each such child, whom the State | ||
Superintendent of
Education determined in advance requires | ||
special transportation service
in order to take advantage of | ||
special educational facilities.
Transportation costs shall be | ||
determined in the same fashion as provided
in Section 29-5. For | ||
purposes of this subsection (b), the dates for
processing | ||
claims specified in Section 29-5 shall apply.
| ||
(c) For each professional worker excluding those included | ||
in
subparagraphs (a), (d), (e), and (f) of this Section, the | ||
annual sum of
$8,000 for the 1985-1986 school year through the | ||
2005-2006 school year and $9,000 for the 2006-2007 school year | ||
and for each school year and thereafter.
| ||
(d) For one full time qualified director of the special | ||
education
program of each school district which maintains a | ||
fully approved program
of special education the annual sum of | ||
$8,000 for the 1985-1986 school
year through the 2005-2006 |
school year and $9,000 for the 2006-2007 school year and for | ||
each school year and thereafter. Districts participating in a | ||
joint agreement special
education program shall not receive | ||
such reimbursement if reimbursement is made
for a director of | ||
the joint agreement program.
| ||
(e) For each school psychologist as defined in Section | ||
14-1.09 the
annual sum of $8,000 for the 1985-1986 school year | ||
through the 2005-2006 school year and $9,000 for the 2006-2007 | ||
school year and for each school year and thereafter.
| ||
(f) For each qualified teacher working in a fully approved | ||
program
for children of preschool age who are deaf or | ||
hard-of-hearing the annual
sum of $8,000 for the 1985-1986 | ||
school year through the 2005-2006 school year and $9,000 for | ||
the 2006-2007 school year and for each school year and | ||
thereafter.
| ||
(g) For readers, working with blind or partially seeing | ||
children 1/2
of their salary but not more than $400 annually | ||
per child. Readers may
be employed to assist such children and | ||
shall not be required to be
certified but prior to employment | ||
shall meet standards set up by the
State Board of Education.
| ||
(h) For necessary non-certified employees working in any | ||
class or
program for children defined in this Article, 1/2 of | ||
the salary paid or
$2,800 annually per employee through the | ||
2005-2006 school year and $3,500 per employee for the 2006-2007 | ||
school year and for each school year thereafter , whichever is | ||
less.
|
The State Board of Education shall set standards and | ||
prescribe rules
for determining the allocation of | ||
reimbursement under this section on
less than a full time basis | ||
and for less than a school year.
| ||
When any school district eligible for reimbursement under | ||
this
Section operates a school or program approved by the State
| ||
Superintendent of Education for a number of days in excess of | ||
the
adopted school calendar but not to exceed 235 school days, | ||
such
reimbursement shall be increased by 1/180 of the amount or | ||
rate paid
hereunder for each day such school is operated in | ||
excess of 180 days per
calendar year.
| ||
Notwithstanding any other provision of law, any school | ||
district receiving
a payment under this Section or under | ||
Section 14-7.02, 14-7.02b, or
29-5 of this Code may classify | ||
all or a portion of the funds that it receives
in a particular | ||
fiscal year or from general State aid pursuant to Section
| ||
18-8.05 of this Code as
funds received in connection with any | ||
funding program for which it is
entitled to receive funds from | ||
the State in that fiscal year (including,
without limitation, | ||
any funding program referenced in this Section),
regardless of | ||
the source or timing of the receipt. The district may not
| ||
classify more funds as funds received in connection with the | ||
funding
program than the district is entitled to receive in | ||
that fiscal year for that
program. Any
classification by a | ||
district must be made by a resolution of its board of
| ||
education. The resolution must identify the amount of any |
payments or
general State aid to be classified under this | ||
paragraph and must specify
the funding program to which the | ||
funds are to be treated as received in
connection therewith. | ||
This resolution is controlling as to the
classification of | ||
funds referenced therein. A certified copy of the
resolution | ||
must be sent to the State Superintendent of Education.
The | ||
resolution shall still take effect even though a copy of the | ||
resolution has
not been sent to the State
Superintendent of | ||
Education in a timely manner.
No
classification under this | ||
paragraph by a district shall affect the total amount
or timing | ||
of money the district is entitled to receive under this Code.
| ||
No classification under this paragraph by a district shall
in | ||
any way relieve the district from or affect any
requirements | ||
that otherwise would apply with respect to
that funding | ||
program, including any
accounting of funds by source, reporting | ||
expenditures by
original source and purpose,
reporting | ||
requirements,
or requirements of providing services.
| ||
(Source: P.A. 95-415, eff. 8-24-07.)
| ||
(105 ILCS 5/18-8.05)
| ||
Sec. 18-8.05. Basis for apportionment of general State | ||
financial aid and
supplemental general State aid to the common | ||
schools for the 1998-1999 and
subsequent school years.
| ||
(A) General Provisions.
| ||
(1) The provisions of this Section apply to the 1998-1999 |
and subsequent
school years. The system of general State | ||
financial aid provided for in this
Section
is designed to | ||
assure that, through a combination of State financial aid and
| ||
required local resources, the financial support provided each | ||
pupil in Average
Daily Attendance equals or exceeds a
| ||
prescribed per pupil Foundation Level. This formula approach | ||
imputes a level
of per pupil Available Local Resources and | ||
provides for the basis to calculate
a per pupil level of | ||
general State financial aid that, when added to Available
Local | ||
Resources, equals or exceeds the Foundation Level. The
amount | ||
of per pupil general State financial aid for school districts, | ||
in
general, varies in inverse
relation to Available Local | ||
Resources. Per pupil amounts are based upon
each school | ||
district's Average Daily Attendance as that term is defined in | ||
this
Section.
| ||
(2) In addition to general State financial aid, school | ||
districts with
specified levels or concentrations of pupils | ||
from low income households are
eligible to receive supplemental | ||
general State financial aid grants as provided
pursuant to | ||
subsection (H).
The supplemental State aid grants provided for | ||
school districts under
subsection (H) shall be appropriated for | ||
distribution to school districts as
part of the same line item | ||
in which the general State financial aid of school
districts is | ||
appropriated under this Section.
| ||
(3) To receive financial assistance under this Section, | ||
school districts
are required to file claims with the State |
Board of Education, subject to the
following requirements:
| ||
(a) Any school district which fails for any given | ||
school year to maintain
school as required by law, or to | ||
maintain a recognized school is not
eligible to file for | ||
such school year any claim upon the Common School
Fund. In | ||
case of nonrecognition of one or more attendance centers in | ||
a
school district otherwise operating recognized schools, | ||
the claim of the
district shall be reduced in the | ||
proportion which the Average Daily
Attendance in the | ||
attendance center or centers bear to the Average Daily
| ||
Attendance in the school district. A "recognized school" | ||
means any
public school which meets the standards as | ||
established for recognition
by the State Board of | ||
Education. A school district or attendance center
not | ||
having recognition status at the end of a school term is | ||
entitled to
receive State aid payments due upon a legal | ||
claim which was filed while
it was recognized.
| ||
(b) School district claims filed under this Section are | ||
subject to
Sections 18-9 and 18-12, except as otherwise | ||
provided in this
Section.
| ||
(c) If a school district operates a full year school | ||
under Section
10-19.1, the general State aid to the school | ||
district shall be determined
by the State Board of | ||
Education in accordance with this Section as near as
may be | ||
applicable.
| ||
(d) (Blank).
|
(4) Except as provided in subsections (H) and (L), the | ||
board of any district
receiving any of the grants provided for | ||
in this Section may apply those funds
to any fund so received | ||
for which that board is authorized to make expenditures
by law.
| ||
School districts are not required to exert a minimum | ||
Operating Tax Rate in
order to qualify for assistance under | ||
this Section.
| ||
(5) As used in this Section the following terms, when | ||
capitalized, shall
have the meaning ascribed herein:
| ||
(a) "Average Daily Attendance": A count of pupil | ||
attendance in school,
averaged as provided for in | ||
subsection (C) and utilized in deriving per pupil
financial | ||
support levels.
| ||
(b) "Available Local Resources": A computation of | ||
local financial
support, calculated on the basis of Average | ||
Daily Attendance and derived as
provided pursuant to | ||
subsection (D).
| ||
(c) "Corporate Personal Property Replacement Taxes": | ||
Funds paid to local
school districts pursuant to "An Act in | ||
relation to the abolition of ad valorem
personal property | ||
tax and the replacement of revenues lost thereby, and
| ||
amending and repealing certain Acts and parts of Acts in | ||
connection therewith",
certified August 14, 1979, as | ||
amended (Public Act 81-1st S.S.-1).
| ||
(d) "Foundation Level": A prescribed level of per pupil | ||
financial support
as provided for in subsection (B).
|
(e) "Operating Tax Rate": All school district property | ||
taxes extended for
all purposes, except Bond and
Interest, | ||
Summer School, Rent, Capital Improvement, and Vocational | ||
Education
Building purposes.
| ||
(B) Foundation Level.
| ||
(1) The Foundation Level is a figure established by the | ||
State representing
the minimum level of per pupil financial | ||
support that should be available to
provide for the basic | ||
education of each pupil in
Average Daily Attendance. As set | ||
forth in this Section, each school district
is assumed to exert
| ||
a sufficient local taxing effort such that, in combination with | ||
the aggregate
of general State
financial aid provided the | ||
district, an aggregate of State and local resources
are | ||
available to meet
the basic education needs of pupils in the | ||
district.
| ||
(2) For the 1998-1999 school year, the Foundation Level of | ||
support is
$4,225. For the 1999-2000 school year, the | ||
Foundation Level of support is
$4,325. For the 2000-2001 school | ||
year, the Foundation Level of support is
$4,425. For the | ||
2001-2002 school year and 2002-2003 school year, the
Foundation | ||
Level of support is $4,560. For the 2003-2004 school year, the | ||
Foundation Level of support is $4,810. For the 2004-2005 school | ||
year, the Foundation Level of support is $4,964.
For the | ||
2005-2006 school year,
the Foundation Level of support is | ||
$5,164. For the 2006-2007 school year, the Foundation Level of |
support is $5,334.
| ||
(3) For the 2007-2008
2006-2007 school year and each school | ||
year thereafter,
the Foundation Level of support is $5,734
| ||
$5,334 or such greater amount as
may be established by law by | ||
the General Assembly.
| ||
(C) Average Daily Attendance.
| ||
(1) For purposes of calculating general State aid pursuant | ||
to subsection
(E), an Average Daily Attendance figure shall be | ||
utilized. The Average Daily
Attendance figure for formula
| ||
calculation purposes shall be the monthly average of the actual | ||
number of
pupils in attendance of
each school district, as | ||
further averaged for the best 3 months of pupil
attendance for | ||
each
school district. In compiling the figures for the number | ||
of pupils in
attendance, school districts
and the State Board | ||
of Education shall, for purposes of general State aid
funding, | ||
conform
attendance figures to the requirements of subsection | ||
(F).
| ||
(2) The Average Daily Attendance figures utilized in | ||
subsection (E) shall be
the requisite attendance data for the | ||
school year immediately preceding
the
school year for which | ||
general State aid is being calculated
or the average of the | ||
attendance data for the 3 preceding school
years, whichever is | ||
greater. The Average Daily Attendance figures
utilized in | ||
subsection (H) shall be the requisite attendance data for the
| ||
school year immediately preceding the school year for which |
general
State aid is being calculated.
| ||
(D) Available Local Resources.
| ||
(1) For purposes of calculating general State aid pursuant | ||
to subsection
(E), a representation of Available Local | ||
Resources per pupil, as that term is
defined and determined in | ||
this subsection, shall be utilized. Available Local
Resources | ||
per pupil shall include a calculated
dollar amount representing | ||
local school district revenues from local property
taxes and | ||
from
Corporate Personal Property Replacement Taxes, expressed | ||
on the basis of pupils
in Average
Daily Attendance. Calculation | ||
of Available Local Resources shall exclude any tax amnesty | ||
funds received as a result of Public Act 93-26.
| ||
(2) In determining a school district's revenue from local | ||
property taxes,
the State Board of Education shall utilize the | ||
equalized assessed valuation of
all taxable property of each | ||
school
district as of September 30 of the previous year. The | ||
equalized assessed
valuation utilized shall
be obtained and | ||
determined as provided in subsection (G).
| ||
(3) For school districts maintaining grades kindergarten | ||
through 12, local
property tax
revenues per pupil shall be | ||
calculated as the product of the applicable
equalized assessed
| ||
valuation for the district multiplied by 3.00%, and divided by | ||
the district's
Average Daily
Attendance figure. For school | ||
districts maintaining grades kindergarten
through 8, local
| ||
property tax revenues per pupil shall be calculated as the |
product of the
applicable equalized
assessed valuation for the | ||
district multiplied by 2.30%, and divided by the
district's | ||
Average
Daily Attendance figure. For school districts | ||
maintaining grades 9 through 12,
local property
tax revenues | ||
per pupil shall be the applicable equalized assessed valuation | ||
of
the district
multiplied by 1.05%, and divided by the | ||
district's Average Daily
Attendance
figure.
| ||
For partial elementary unit districts created pursuant to | ||
Article 11E of this Code, local property tax revenues per pupil | ||
shall be calculated as the product of the equalized assessed | ||
valuation for property within the elementary and high school | ||
classification of the partial elementary unit district | ||
multiplied by 2.06% and divided by the Average Daily Attendance | ||
figure for grades kindergarten through 8, plus the product of | ||
the equalized assessed valuation for property within the high | ||
school only classification of the partial elementary unit | ||
district multiplied by 0.94% and divided by the Average Daily | ||
Attendance figure for grades 9 through 12.
| ||
(4) The Corporate Personal Property Replacement Taxes paid | ||
to each school
district during the calendar year 2 years before | ||
the calendar year in which a
school year begins, divided by the | ||
Average Daily Attendance figure for that
district, shall be | ||
added to the local property tax revenues per pupil as
derived | ||
by the application of the immediately preceding paragraph (3). | ||
The sum
of these per pupil figures for each school district | ||
shall constitute Available
Local Resources as that term is |
utilized in subsection (E) in the calculation
of general State | ||
aid.
| ||
(E) Computation of General State Aid.
| ||
(1) For each school year, the amount of general State aid | ||
allotted to a
school district shall be computed by the State | ||
Board of Education as provided
in this subsection.
| ||
(2) For any school district for which Available Local | ||
Resources per pupil
is less than the product of 0.93 times the | ||
Foundation Level, general State aid
for that district shall be | ||
calculated as an amount equal to the Foundation
Level minus | ||
Available Local Resources, multiplied by the Average Daily
| ||
Attendance of the school district.
| ||
(3) For any school district for which Available Local | ||
Resources per pupil
is equal to or greater than the product of | ||
0.93 times the Foundation Level and
less than the product of | ||
1.75 times the Foundation Level, the general State aid
per | ||
pupil shall be a decimal proportion of the Foundation Level | ||
derived using a
linear algorithm. Under this linear algorithm, | ||
the calculated general State
aid per pupil shall decline in | ||
direct linear fashion from 0.07 times the
Foundation Level for | ||
a school district with Available Local Resources equal to
the | ||
product of 0.93 times the Foundation Level, to 0.05 times the | ||
Foundation
Level for a school district with Available Local | ||
Resources equal to the product
of 1.75 times the Foundation | ||
Level. The allocation of general
State aid for school districts |
subject to this paragraph 3 shall be the
calculated general | ||
State aid
per pupil figure multiplied by the Average Daily | ||
Attendance of the school
district.
| ||
(4) For any school district for which Available Local | ||
Resources per pupil
equals or exceeds the product of 1.75 times | ||
the Foundation Level, the general
State aid for the school | ||
district shall be calculated as the product of $218
multiplied | ||
by the Average Daily Attendance of the school
district.
| ||
(5) The amount of general State aid allocated to a school | ||
district for
the 1999-2000 school year meeting the requirements | ||
set forth in paragraph (4)
of subsection
(G) shall be increased | ||
by an amount equal to the general State aid that
would have | ||
been received by the district for the 1998-1999 school year by
| ||
utilizing the Extension Limitation Equalized Assessed | ||
Valuation as calculated
in paragraph (4) of subsection (G) less | ||
the general State aid allotted for the
1998-1999
school year. | ||
This amount shall be deemed a one time increase, and shall not
| ||
affect any future general State aid allocations.
| ||
(F) Compilation of Average Daily Attendance.
| ||
(1) Each school district shall, by July 1 of each year, | ||
submit to the State
Board of Education, on forms prescribed by | ||
the State Board of Education,
attendance figures for the school | ||
year that began in the preceding calendar
year. The attendance | ||
information so transmitted shall identify the average
daily | ||
attendance figures for each month of the school year. Beginning |
with
the general State aid claim form for the 2002-2003 school
| ||
year, districts shall calculate Average Daily Attendance as | ||
provided in
subdivisions (a), (b), and (c) of this paragraph | ||
(1).
| ||
(a) In districts that do not hold year-round classes,
| ||
days of attendance in August shall be added to the month of | ||
September and any
days of attendance in June shall be added | ||
to the month of May.
| ||
(b) In districts in which all buildings hold year-round | ||
classes,
days of attendance in July and August shall be | ||
added to the month
of September and any days of attendance | ||
in June shall be added to
the month of May.
| ||
(c) In districts in which some buildings, but not all, | ||
hold
year-round classes, for the non-year-round buildings, | ||
days of
attendance in August shall be added to the month of | ||
September
and any days of attendance in June shall be added | ||
to the month of
May. The average daily attendance for the | ||
year-round buildings
shall be computed as provided in | ||
subdivision (b) of this paragraph
(1). To calculate the | ||
Average Daily Attendance for the district, the
average | ||
daily attendance for the year-round buildings shall be
| ||
multiplied by the days in session for the non-year-round | ||
buildings
for each month and added to the monthly | ||
attendance of the
non-year-round buildings.
| ||
Except as otherwise provided in this Section, days of
| ||
attendance by pupils shall be counted only for sessions of not |
less than
5 clock hours of school work per day under direct | ||
supervision of: (i)
teachers, or (ii) non-teaching personnel or | ||
volunteer personnel when engaging
in non-teaching duties and | ||
supervising in those instances specified in
subsection (a) of | ||
Section 10-22.34 and paragraph 10 of Section 34-18, with
pupils | ||
of legal school age and in kindergarten and grades 1 through | ||
12.
| ||
Days of attendance by tuition pupils shall be accredited | ||
only to the
districts that pay the tuition to a recognized | ||
school.
| ||
(2) Days of attendance by pupils of less than 5 clock hours | ||
of school
shall be subject to the following provisions in the | ||
compilation of Average
Daily Attendance.
| ||
(a) Pupils regularly enrolled in a public school for | ||
only a part of
the school day may be counted on the basis | ||
of 1/6 day for every class hour
of instruction of 40 | ||
minutes or more attended pursuant to such enrollment,
| ||
unless a pupil is
enrolled in a block-schedule format of 80 | ||
minutes or more of instruction,
in which case the pupil may | ||
be counted on the basis of the proportion of
minutes of | ||
school work completed each day to the minimum number of
| ||
minutes that school work is required to be held that day.
| ||
(b) Days of attendance may be less than 5 clock hours | ||
on the opening
and closing of the school term, and upon the | ||
first day of pupil
attendance, if preceded by a day or days | ||
utilized as an institute or
teachers' workshop.
|
(c) A session of 4 or more clock hours may be counted | ||
as a day of
attendance upon certification by the regional | ||
superintendent, and
approved by the State Superintendent | ||
of Education to the extent that the
district has been | ||
forced to use daily multiple sessions.
| ||
(d) A session of 3 or more clock hours may be counted | ||
as a day of
attendance (1) when the remainder of the school | ||
day or at least
2 hours in the evening of that day is | ||
utilized for an
in-service training program for teachers, | ||
up to a maximum of 5 days per
school year of which a | ||
maximum of 4 days of such 5 days may be used for
| ||
parent-teacher conferences, provided a district conducts | ||
an in-service
training program for teachers which has been | ||
approved by the State
Superintendent of Education; or, in | ||
lieu of 4 such days, 2 full days may
be used, in which | ||
event each such day
may be counted as a day of attendance; | ||
and (2) when days in
addition to
those provided in item (1) | ||
are scheduled by a school pursuant to its school
| ||
improvement plan adopted under Article 34 or its revised or | ||
amended school
improvement plan adopted under Article 2, | ||
provided that (i) such sessions of
3 or more clock hours | ||
are scheduled to occur at regular intervals, (ii) the
| ||
remainder of the school days in which such sessions occur | ||
are utilized
for in-service training programs or other | ||
staff development activities for
teachers, and (iii) a | ||
sufficient number of minutes of school work under the
|
direct supervision of teachers are added to the school days | ||
between such
regularly scheduled sessions to accumulate | ||
not less than the number of minutes
by which such sessions | ||
of 3 or more clock hours fall short of 5 clock hours.
Any | ||
full days used for the purposes of this paragraph shall not | ||
be considered
for
computing average daily attendance. Days | ||
scheduled for in-service training
programs, staff | ||
development activities, or parent-teacher conferences may | ||
be
scheduled separately for different
grade levels and | ||
different attendance centers of the district.
| ||
(e) A session of not less than one clock hour of | ||
teaching
hospitalized or homebound pupils on-site or by | ||
telephone to the classroom may
be counted as 1/2 day of | ||
attendance, however these pupils must receive 4 or
more | ||
clock hours of instruction to be counted for a full day of | ||
attendance.
| ||
(f) A session of at least 4 clock hours may be counted | ||
as a day of
attendance for first grade pupils, and pupils | ||
in full day kindergartens,
and a session of 2 or more hours | ||
may be counted as 1/2 day of attendance by
pupils in | ||
kindergartens which provide only 1/2 day of attendance.
| ||
(g) For children with disabilities who are below the | ||
age of 6 years and
who
cannot attend 2 or more clock hours | ||
because of their disability or
immaturity, a session of not | ||
less than one clock hour may be counted as 1/2 day
of | ||
attendance; however for such children whose educational |
needs so require
a session of 4 or more clock hours may be | ||
counted as a full day of attendance.
| ||
(h) A recognized kindergarten which provides for only | ||
1/2 day of
attendance by each pupil shall not have more | ||
than 1/2 day of attendance
counted in any one day. However, | ||
kindergartens may count 2 1/2 days
of
attendance in any 5 | ||
consecutive school days. When a pupil attends such a
| ||
kindergarten for 2 half days on any one school day, the | ||
pupil shall have
the following day as a day absent from | ||
school, unless the school district
obtains permission in | ||
writing from the State Superintendent of Education.
| ||
Attendance at kindergartens which provide for a full day of | ||
attendance by
each pupil shall be counted the same as | ||
attendance by first grade pupils.
Only the first year of | ||
attendance in one kindergarten shall be counted,
except in | ||
case of children who entered the kindergarten in their | ||
fifth year
whose educational development requires a second | ||
year of kindergarten as
determined under the rules and | ||
regulations of the State Board of Education.
| ||
(i) On the days when the Prairie State Achievement | ||
Examination is
administered under subsection (c) of | ||
Section 2-3.64 of this Code, the day
of attendance for a | ||
pupil whose school
day must be shortened to accommodate | ||
required testing procedures may
be less than 5 clock hours | ||
and shall be counted towards the 176 days of actual pupil | ||
attendance required under Section 10-19 of this Code, |
provided that a sufficient number of minutes
of school work | ||
in excess of 5 clock hours are first completed on other | ||
school
days to compensate for the loss of school work on | ||
the examination days.
| ||
(G) Equalized Assessed Valuation Data.
| ||
(1) For purposes of the calculation of Available Local | ||
Resources required
pursuant to subsection (D), the
State Board | ||
of Education shall secure from the Department of
Revenue the | ||
value as equalized or assessed by the Department of Revenue of
| ||
all taxable property of every school district, together with | ||
(i) the applicable
tax rate used in extending taxes for the | ||
funds of the district as of
September 30 of the previous year
| ||
and (ii) the limiting rate for all school
districts subject to | ||
property tax extension limitations as imposed under the
| ||
Property Tax Extension Limitation Law.
| ||
The Department of Revenue shall add to the equalized | ||
assessed value of all
taxable
property of each school district | ||
situated entirely or partially within a county
that is or was | ||
subject to the alternative general homestead exemption | ||
provisions of Section 15-176 of the Property Tax Code (a)
an | ||
amount equal to the total amount by which the
homestead | ||
exemption allowed under Section 15-176 of the Property Tax Code | ||
for
real
property situated in that school district exceeds the | ||
total amount that would
have been
allowed in that school | ||
district if the maximum reduction under Section 15-176
was
(i) |
$4,500 in Cook County or $3,500 in all other counties in tax | ||
year 2003 or (ii) $5,000 in all counties in tax year 2004 and | ||
thereafter and (b) an amount equal to the aggregate amount for | ||
the taxable year of all additional exemptions under Section | ||
15-175 of the Property Tax Code for owners with a household | ||
income of $30,000 or less. The county clerk of any county that | ||
is or was subject to the alternative general homestead | ||
exemption provisions of Section 15-176 of the Property Tax Code | ||
shall
annually calculate and certify to the Department of | ||
Revenue for each school
district all
homestead exemption | ||
amounts under Section 15-176 of the Property Tax Code and all | ||
amounts of additional exemptions under Section 15-175 of the | ||
Property Tax Code for owners with a household income of $30,000 | ||
or less. It is the intent of this paragraph that if the general | ||
homestead exemption for a parcel of property is determined | ||
under Section 15-176 of the Property Tax Code rather than | ||
Section 15-175, then the calculation of Available Local | ||
Resources shall not be affected by the difference, if any, | ||
between the amount of the general homestead exemption allowed | ||
for that parcel of property under Section 15-176 of the | ||
Property Tax Code and the amount that would have been allowed | ||
had the general homestead exemption for that parcel of property | ||
been determined under Section 15-175 of the Property Tax Code. | ||
It is further the intent of this paragraph that if additional | ||
exemptions are allowed under Section 15-175 of the Property Tax | ||
Code for owners with a household income of less than $30,000, |
then the calculation of Available Local Resources shall not be | ||
affected by the difference, if any, because of those additional | ||
exemptions.
| ||
This equalized assessed valuation, as adjusted further by | ||
the requirements of
this subsection, shall be utilized in the | ||
calculation of Available Local
Resources.
| ||
(2) The equalized assessed valuation in paragraph (1) shall | ||
be adjusted, as
applicable, in the following manner:
| ||
(a) For the purposes of calculating State aid under | ||
this Section,
with respect to any part of a school district | ||
within a redevelopment
project area in respect to which a | ||
municipality has adopted tax
increment allocation | ||
financing pursuant to the Tax Increment Allocation
| ||
Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11 | ||
of the Illinois
Municipal Code or the Industrial Jobs | ||
Recovery Law, Sections 11-74.6-1 through
11-74.6-50 of the | ||
Illinois Municipal Code, no part of the current equalized
| ||
assessed valuation of real property located in any such | ||
project area which is
attributable to an increase above the | ||
total initial equalized assessed
valuation of such | ||
property shall be used as part of the equalized assessed
| ||
valuation of the district, until such time as all
| ||
redevelopment project costs have been paid, as provided in | ||
Section 11-74.4-8
of the Tax Increment Allocation | ||
Redevelopment Act or in Section 11-74.6-35 of
the | ||
Industrial Jobs Recovery Law. For the purpose of
the |
equalized assessed valuation of the
district, the total | ||
initial equalized assessed valuation or the current
| ||
equalized assessed valuation, whichever is lower, shall be | ||
used until
such time as all redevelopment project costs | ||
have been paid.
| ||
(b) The real property equalized assessed valuation for | ||
a school district
shall be adjusted by subtracting from the | ||
real property
value as equalized or assessed by the | ||
Department of Revenue for the
district an amount computed | ||
by dividing the amount of any abatement of
taxes under | ||
Section 18-170 of the Property Tax Code by 3.00% for a | ||
district
maintaining grades kindergarten through 12, by | ||
2.30% for a district
maintaining grades kindergarten | ||
through 8, or by 1.05% for a
district
maintaining grades 9 | ||
through 12 and adjusted by an amount computed by dividing
| ||
the amount of any abatement of taxes under subsection (a) | ||
of Section 18-165 of
the Property Tax Code by the same | ||
percentage rates for district type as
specified in this | ||
subparagraph (b).
| ||
(3) For the 1999-2000 school year and each school year | ||
thereafter, if a
school district meets all of the criteria of | ||
this subsection (G)(3), the school
district's Available Local | ||
Resources shall be calculated under subsection (D)
using the | ||
district's Extension Limitation Equalized Assessed Valuation | ||
as
calculated under this
subsection (G)(3).
| ||
For purposes of this subsection (G)(3) the following terms |
shall have
the following meanings:
| ||
"Budget Year": The school year for which general State | ||
aid is calculated
and
awarded under subsection (E).
| ||
"Base Tax Year": The property tax levy year used to | ||
calculate the Budget
Year
allocation of general State aid.
| ||
"Preceding Tax Year": The property tax levy year | ||
immediately preceding the
Base Tax Year.
| ||
"Base Tax Year's Tax Extension": The product of the | ||
equalized assessed
valuation utilized by the County Clerk | ||
in the Base Tax Year multiplied by the
limiting rate as | ||
calculated by the County Clerk and defined in the Property | ||
Tax
Extension Limitation Law.
| ||
"Preceding Tax Year's Tax Extension": The product of | ||
the equalized assessed
valuation utilized by the County | ||
Clerk in the Preceding Tax Year multiplied by
the Operating | ||
Tax Rate as defined in subsection (A).
| ||
"Extension Limitation Ratio": A numerical ratio, | ||
certified by the
County Clerk, in which the numerator is | ||
the Base Tax Year's Tax
Extension and the denominator is | ||
the Preceding Tax Year's Tax Extension.
| ||
"Operating Tax Rate": The operating tax rate as defined | ||
in subsection (A).
| ||
If a school district is subject to property tax extension | ||
limitations as
imposed under
the Property Tax Extension | ||
Limitation Law, the State Board of Education shall
calculate | ||
the Extension
Limitation
Equalized Assessed Valuation of that |
district. For the 1999-2000 school
year, the
Extension | ||
Limitation Equalized Assessed Valuation of a school district as
| ||
calculated by the State Board of Education shall be equal to | ||
the product of the
district's 1996 Equalized Assessed Valuation | ||
and the district's Extension
Limitation Ratio. For the | ||
2000-2001 school year and each school year
thereafter,
the | ||
Extension Limitation Equalized Assessed Valuation of a school | ||
district as
calculated by the State Board of Education shall be | ||
equal to the product of
the Equalized Assessed Valuation last | ||
used in the calculation of general State
aid and the
district's | ||
Extension Limitation Ratio. If the Extension Limitation
| ||
Equalized
Assessed Valuation of a school district as calculated | ||
under
this subsection (G)(3) is less than the district's | ||
equalized assessed valuation
as calculated pursuant to | ||
subsections (G)(1) and (G)(2), then for purposes of
calculating | ||
the district's general State aid for the Budget Year pursuant | ||
to
subsection (E), that Extension
Limitation Equalized | ||
Assessed Valuation shall be utilized to calculate the
| ||
district's Available Local Resources
under subsection (D).
| ||
Partial elementary unit districts created in accordance | ||
with Article 11E of this Code shall not be eligible for the | ||
adjustment in this subsection (G)(3) until the fifth year | ||
following the effective date of the reorganization.
| ||
(4) For the purposes of calculating general State aid for | ||
the 1999-2000
school year only, if a school district | ||
experienced a triennial reassessment on
the equalized assessed |
valuation used in calculating its general State
financial aid | ||
apportionment for the 1998-1999 school year, the State Board of
| ||
Education shall calculate the Extension Limitation Equalized | ||
Assessed Valuation
that would have been used to calculate the | ||
district's 1998-1999 general State
aid. This amount shall equal | ||
the product of the equalized assessed valuation
used to
| ||
calculate general State aid for the 1997-1998 school year and | ||
the district's
Extension Limitation Ratio. If the Extension | ||
Limitation Equalized Assessed
Valuation of the school district | ||
as calculated under this paragraph (4) is
less than the | ||
district's equalized assessed valuation utilized in | ||
calculating
the
district's 1998-1999 general State aid | ||
allocation, then for purposes of
calculating the district's | ||
general State aid pursuant to paragraph (5) of
subsection (E),
| ||
that Extension Limitation Equalized Assessed Valuation shall | ||
be utilized to
calculate the district's Available Local | ||
Resources.
| ||
(5) For school districts having a majority of their | ||
equalized assessed
valuation in any county except Cook, DuPage, | ||
Kane, Lake, McHenry, or Will, if
the amount of general State | ||
aid allocated to the school district for the
1999-2000 school | ||
year under the provisions of subsection (E), (H), and (J) of
| ||
this Section is less than the amount of general State aid | ||
allocated to the
district for the 1998-1999 school year under | ||
these subsections, then the
general
State aid of the district | ||
for the 1999-2000 school year only shall be increased
by the |
difference between these amounts. The total payments made under | ||
this
paragraph (5) shall not exceed $14,000,000. Claims shall | ||
be prorated if they
exceed $14,000,000.
| ||
(H) Supplemental General State Aid.
| ||
(1) In addition to the general State aid a school district | ||
is allotted
pursuant to subsection (E), qualifying school | ||
districts shall receive a grant,
paid in conjunction with a | ||
district's payments of general State aid, for
supplemental | ||
general State aid based upon the concentration level of | ||
children
from low-income households within the school | ||
district.
Supplemental State aid grants provided for school | ||
districts under this
subsection shall be appropriated for | ||
distribution to school districts as part
of the same line item | ||
in which the general State financial aid of school
districts is | ||
appropriated under this Section.
If the appropriation in any | ||
fiscal year for general State aid and
supplemental general | ||
State aid is insufficient to pay the amounts required
under the | ||
general State aid and supplemental general State aid | ||
calculations,
then the
State Board of Education shall ensure | ||
that
each school district receives the full amount due for | ||
general State aid
and the remainder of the appropriation shall | ||
be used
for supplemental general State aid, which the State | ||
Board of Education shall
calculate and pay to eligible | ||
districts on a prorated basis.
| ||
(1.5) This paragraph (1.5) applies only to those school |
years
preceding the 2003-2004 school year.
For purposes of this
| ||
subsection (H), the term "Low-Income Concentration Level" | ||
shall be the
low-income
eligible pupil count from the most | ||
recently available federal census divided by
the Average Daily | ||
Attendance of the school district.
If, however, (i) the | ||
percentage decrease from the 2 most recent federal
censuses
in | ||
the low-income eligible pupil count of a high school district | ||
with fewer
than 400 students exceeds by 75% or more the | ||
percentage change in the total
low-income eligible pupil count | ||
of contiguous elementary school districts,
whose boundaries | ||
are coterminous with the high school district,
or (ii) a high | ||
school district within 2 counties and serving 5 elementary
| ||
school
districts, whose boundaries are coterminous with the | ||
high school
district, has a percentage decrease from the 2 most | ||
recent federal
censuses in the low-income eligible pupil count | ||
and there is a percentage
increase in the total low-income | ||
eligible pupil count of a majority of the
elementary school | ||
districts in excess of 50% from the 2 most recent
federal | ||
censuses, then
the
high school district's low-income eligible | ||
pupil count from the earlier federal
census
shall be the number | ||
used as the low-income eligible pupil count for the high
school | ||
district, for purposes of this subsection (H).
The changes made | ||
to this paragraph (1) by Public Act 92-28 shall apply to
| ||
supplemental general State aid
grants for school years | ||
preceding the 2003-2004 school year that are paid
in fiscal | ||
year 1999 or thereafter
and to
any State aid payments made in |
fiscal year 1994 through fiscal year
1998 pursuant to | ||
subsection 1(n) of Section 18-8 of this Code (which was
| ||
repealed on July 1, 1998), and any high school district that is | ||
affected by
Public Act 92-28 is
entitled to a
recomputation of | ||
its supplemental general State aid grant or State aid
paid in | ||
any of those fiscal years. This recomputation shall not be
| ||
affected by any other funding.
| ||
(1.10) This paragraph (1.10) applies to the 2003-2004 | ||
school year
and each school year thereafter. For purposes of | ||
this subsection (H), the
term "Low-Income Concentration Level" | ||
shall, for each fiscal year, be the
low-income eligible
pupil | ||
count
as of July 1 of the immediately preceding fiscal year
(as | ||
determined by the Department of Human Services based
on the | ||
number of pupils
who are eligible for at least one of the | ||
following
low income programs: Medicaid, KidCare, TANF, or Food | ||
Stamps,
excluding pupils who are eligible for services provided | ||
by the Department
of Children and Family Services,
averaged | ||
over
the 2 immediately preceding fiscal years for fiscal year | ||
2004 and over the 3
immediately preceding fiscal years for each | ||
fiscal year thereafter)
divided by the Average Daily Attendance | ||
of the school district.
| ||
(2) Supplemental general State aid pursuant to this | ||
subsection (H) shall
be
provided as follows for the 1998-1999, | ||
1999-2000, and 2000-2001 school years
only:
| ||
(a) For any school district with a Low Income | ||
Concentration Level of at
least 20% and less than 35%, the |
grant for any school year
shall be $800
multiplied by the | ||
low income eligible pupil count.
| ||
(b) For any school district with a Low Income | ||
Concentration Level of at
least 35% and less than 50%, the | ||
grant for the 1998-1999 school year shall be
$1,100 | ||
multiplied by the low income eligible pupil count.
| ||
(c) For any school district with a Low Income | ||
Concentration Level of at
least 50% and less than 60%, the | ||
grant for the 1998-99 school year shall be
$1,500 | ||
multiplied by the low income eligible pupil count.
| ||
(d) For any school district with a Low Income | ||
Concentration Level of 60%
or more, the grant for the | ||
1998-99 school year shall be $1,900 multiplied by
the low | ||
income eligible pupil count.
| ||
(e) For the 1999-2000 school year, the per pupil amount | ||
specified in
subparagraphs (b), (c), and (d) immediately | ||
above shall be increased to $1,243,
$1,600, and $2,000, | ||
respectively.
| ||
(f) For the 2000-2001 school year, the per pupil | ||
amounts specified in
subparagraphs (b), (c), and (d) | ||
immediately above shall be
$1,273, $1,640, and $2,050, | ||
respectively.
| ||
(2.5) Supplemental general State aid pursuant to this | ||
subsection (H)
shall be provided as follows for the 2002-2003 | ||
school year:
| ||
(a) For any school district with a Low Income |
Concentration Level of less
than 10%, the grant for each | ||
school year shall be $355 multiplied by the low
income | ||
eligible pupil count.
| ||
(b) For any school district with a Low Income | ||
Concentration
Level of at least 10% and less than 20%, the | ||
grant for each school year shall
be $675
multiplied by the | ||
low income eligible pupil
count.
| ||
(c) For any school district with a Low Income | ||
Concentration
Level of at least 20% and less than 35%, the | ||
grant for each school year shall
be $1,330
multiplied by | ||
the low income eligible pupil
count.
| ||
(d) For any school district with a Low Income | ||
Concentration
Level of at least 35% and less than 50%, the | ||
grant for each school year shall
be $1,362
multiplied by | ||
the low income eligible pupil
count.
| ||
(e) For any school district with a Low Income | ||
Concentration
Level of at least 50% and less than 60%, the | ||
grant for each school year shall
be $1,680
multiplied by | ||
the low income eligible pupil
count.
| ||
(f) For any school district with a Low Income | ||
Concentration
Level of 60% or more, the grant for each | ||
school year shall be $2,080
multiplied by the low income | ||
eligible pupil count.
| ||
(2.10) Except as otherwise provided, supplemental general | ||
State aid
pursuant to this subsection
(H) shall be provided as | ||
follows for the 2003-2004 school year and each
school year |
thereafter:
| ||
(a) For any school district with a Low Income | ||
Concentration
Level of 15% or less, the grant for each | ||
school year
shall be $355 multiplied by the low income | ||
eligible pupil count.
| ||
(b) For any school district with a Low Income | ||
Concentration
Level greater than 15%, the grant for each | ||
school year shall be
$294.25 added to the product of $2,700 | ||
and the square of the Low
Income Concentration Level, all | ||
multiplied by the low income
eligible pupil count.
| ||
For the 2003-2004 school year and each school year through | ||
the 2007-2008 school year , 2004-2005 school year,
2005-2006 | ||
school year, and 2006-2007 school year only, the grant shall be | ||
no less than the
grant
for
the 2002-2003 school year. For the | ||
2008-2009
2007-2008 school year only, the grant shall
be no
| ||
less than the grant for the 2002-2003 school year multiplied by | ||
0.66. For the
2009-2010
2008-2009
school year only, the grant | ||
shall be no less than the grant for the 2002-2003
school year
| ||
multiplied by 0.33. Notwithstanding the provisions of this | ||
paragraph to the contrary, if for any school year supplemental | ||
general State aid grants are prorated as provided in paragraph | ||
(1) of this subsection (H), then the grants under this | ||
paragraph shall be prorated.
| ||
For the 2003-2004 school year only, the grant shall be no | ||
greater
than the grant received during the 2002-2003 school | ||
year added to the
product of 0.25 multiplied by the difference |
between the grant amount
calculated under subsection (a) or (b) | ||
of this paragraph (2.10), whichever
is applicable, and the | ||
grant received during the 2002-2003 school year.
For the | ||
2004-2005 school year only, the grant shall be no greater than
| ||
the grant received during the 2002-2003 school year added to | ||
the
product of 0.50 multiplied by the difference between the | ||
grant amount
calculated under subsection (a) or (b) of this | ||
paragraph (2.10), whichever
is applicable, and the grant | ||
received during the 2002-2003 school year.
For the 2005-2006 | ||
school year only, the grant shall be no greater than
the grant | ||
received during the 2002-2003 school year added to the
product | ||
of 0.75 multiplied by the difference between the grant amount
| ||
calculated under subsection (a) or (b) of this paragraph | ||
(2.10), whichever
is applicable, and the grant received during | ||
the 2002-2003
school year.
| ||
(3) School districts with an Average Daily Attendance of | ||
more than 1,000
and less than 50,000 that qualify for | ||
supplemental general State aid pursuant
to this subsection | ||
shall submit a plan to the State Board of Education prior to
| ||
October 30 of each year for the use of the funds resulting from | ||
this grant of
supplemental general State aid for the | ||
improvement of
instruction in which priority is given to | ||
meeting the education needs of
disadvantaged children. Such | ||
plan shall be submitted in accordance with
rules and | ||
regulations promulgated by the State Board of Education.
| ||
(4) School districts with an Average Daily Attendance of |
50,000 or more
that qualify for supplemental general State aid | ||
pursuant to this subsection
shall be required to distribute | ||
from funds available pursuant to this Section,
no less than | ||
$261,000,000 in accordance with the following requirements:
| ||
(a) The required amounts shall be distributed to the | ||
attendance centers
within the district in proportion to the | ||
number of pupils enrolled at each
attendance center who are | ||
eligible to receive free or reduced-price lunches or
| ||
breakfasts under the federal Child Nutrition Act of 1966 | ||
and under the National
School Lunch Act during the | ||
immediately preceding school year.
| ||
(b) The distribution of these portions of supplemental | ||
and general State
aid among attendance centers according to | ||
these requirements shall not be
compensated for or | ||
contravened by adjustments of the total of other funds
| ||
appropriated to any attendance centers, and the Board of | ||
Education shall
utilize funding from one or several sources | ||
in order to fully implement this
provision annually prior | ||
to the opening of school.
| ||
(c) Each attendance center shall be provided by the
| ||
school district a distribution of noncategorical funds and | ||
other
categorical funds to which an attendance center is | ||
entitled under law in
order that the general State aid and | ||
supplemental general State aid provided
by application of | ||
this subsection supplements rather than supplants the
| ||
noncategorical funds and other categorical funds provided |
by the school
district to the attendance centers.
| ||
(d) Any funds made available under this subsection that | ||
by reason of the
provisions of this subsection are not
| ||
required to be allocated and provided to attendance centers | ||
may be used and
appropriated by the board of the district | ||
for any lawful school purpose.
| ||
(e) Funds received by an attendance center
pursuant to | ||
this
subsection shall be used
by the attendance center at | ||
the discretion
of the principal and local school council | ||
for programs to improve educational
opportunities at | ||
qualifying schools through the following programs and
| ||
services: early childhood education, reduced class size or | ||
improved adult to
student classroom ratio, enrichment | ||
programs, remedial assistance, attendance
improvement, and | ||
other educationally beneficial expenditures which
| ||
supplement
the regular and basic programs as determined by | ||
the State Board of Education.
Funds provided shall not be | ||
expended for any political or lobbying purposes
as defined | ||
by board rule.
| ||
(f) Each district subject to the provisions of this | ||
subdivision (H)(4)
shall submit an
acceptable plan to meet | ||
the educational needs of disadvantaged children, in
| ||
compliance with the requirements of this paragraph, to the | ||
State Board of
Education prior to July 15 of each year. | ||
This plan shall be consistent with the
decisions of local | ||
school councils concerning the school expenditure plans
|
developed in accordance with part 4 of Section 34-2.3. The | ||
State Board shall
approve or reject the plan within 60 days | ||
after its submission. If the plan is
rejected, the district | ||
shall give written notice of intent to modify the plan
| ||
within 15 days of the notification of rejection and then | ||
submit a modified plan
within 30 days after the date of the | ||
written notice of intent to modify.
Districts may amend | ||
approved plans pursuant to rules promulgated by the State
| ||
Board of Education.
| ||
Upon notification by the State Board of Education that | ||
the district has
not submitted a plan prior to July 15 or a | ||
modified plan within the time
period specified herein, the
| ||
State aid funds affected by that plan or modified plan | ||
shall be withheld by the
State Board of Education until a | ||
plan or modified plan is submitted.
| ||
If the district fails to distribute State aid to | ||
attendance centers in
accordance with an approved plan, the | ||
plan for the following year shall
allocate funds, in | ||
addition to the funds otherwise required by this
| ||
subsection, to those attendance centers which were | ||
underfunded during the
previous year in amounts equal to | ||
such underfunding.
| ||
For purposes of determining compliance with this | ||
subsection in relation
to the requirements of attendance | ||
center funding, each district subject to the
provisions of | ||
this
subsection shall submit as a separate document by |
December 1 of each year a
report of expenditure data for | ||
the prior year in addition to any
modification of its | ||
current plan. If it is determined that there has been
a | ||
failure to comply with the expenditure provisions of this | ||
subsection
regarding contravention or supplanting, the | ||
State Superintendent of
Education shall, within 60 days of | ||
receipt of the report, notify the
district and any affected | ||
local school council. The district shall within
45 days of | ||
receipt of that notification inform the State | ||
Superintendent of
Education of the remedial or corrective | ||
action to be taken, whether by
amendment of the current | ||
plan, if feasible, or by adjustment in the plan
for the | ||
following year. Failure to provide the expenditure report | ||
or the
notification of remedial or corrective action in a | ||
timely manner shall
result in a withholding of the affected | ||
funds.
| ||
The State Board of Education shall promulgate rules and | ||
regulations
to implement the provisions of this | ||
subsection. No funds shall be released
under this | ||
subdivision (H)(4) to any district that has not submitted a | ||
plan
that has been approved by the State Board of | ||
Education.
| ||
(I) (Blank).
| ||
(J) Supplementary Grants in Aid.
|
(1) Notwithstanding any other provisions of this Section, | ||
the amount of the
aggregate general State aid in combination | ||
with supplemental general State aid
under this Section for | ||
which
each school district is eligible shall be no
less than | ||
the amount of the aggregate general State aid entitlement that | ||
was
received by the district under Section
18-8 (exclusive of | ||
amounts received
under subsections 5(p) and 5(p-5) of that | ||
Section)
for the 1997-98 school year,
pursuant to the | ||
provisions of that Section as it was then in effect.
If a | ||
school district qualifies to receive a supplementary payment | ||
made under
this subsection (J), the amount
of the aggregate | ||
general State aid in combination with supplemental general
| ||
State aid under this Section
which that district is eligible to | ||
receive for each school year shall be no less than the amount | ||
of the aggregate
general State aid entitlement that was | ||
received by the district under
Section 18-8 (exclusive of | ||
amounts received
under subsections 5(p) and 5(p-5) of that | ||
Section)
for the 1997-1998 school year, pursuant to the | ||
provisions of that
Section as it was then in effect.
| ||
(2) If, as provided in paragraph (1) of this subsection | ||
(J), a school
district is to receive aggregate general State | ||
aid in
combination with supplemental general State aid under | ||
this Section for the 1998-99 school year and any subsequent | ||
school
year that in any such school year is less than the | ||
amount of the aggregate
general
State
aid entitlement that the | ||
district received for the 1997-98 school year, the
school |
district shall also receive, from a separate appropriation made | ||
for
purposes of this subsection (J), a supplementary payment | ||
that is equal to the
amount of the difference in the aggregate | ||
State aid figures as described in
paragraph (1).
| ||
(3) (Blank).
| ||
(K) Grants to Laboratory and Alternative Schools.
| ||
In calculating the amount to be paid to the governing board | ||
of a public
university that operates a laboratory school under | ||
this Section or to any
alternative school that is operated by a | ||
regional superintendent of schools,
the State
Board of | ||
Education shall require by rule such reporting requirements as | ||
it
deems necessary.
| ||
As used in this Section, "laboratory school" means a public | ||
school which is
created and operated by a public university and | ||
approved by the State Board of
Education. The governing board | ||
of a public university which receives funds
from the State | ||
Board under this subsection (K) may not increase the number of
| ||
students enrolled in its laboratory
school from a single | ||
district, if that district is already sending 50 or more
| ||
students, except under a mutual agreement between the school | ||
board of a
student's district of residence and the university | ||
which operates the
laboratory school. A laboratory school may | ||
not have more than 1,000 students,
excluding students with | ||
disabilities in a special education program.
| ||
As used in this Section, "alternative school" means a |
public school which is
created and operated by a Regional | ||
Superintendent of Schools and approved by
the State Board of | ||
Education. Such alternative schools may offer courses of
| ||
instruction for which credit is given in regular school | ||
programs, courses to
prepare students for the high school | ||
equivalency testing program or vocational
and occupational | ||
training. A regional superintendent of schools may contract
| ||
with a school district or a public community college district | ||
to operate an
alternative school. An alternative school serving | ||
more than one educational
service region may be established by | ||
the regional superintendents of schools
of the affected | ||
educational service regions. An alternative school
serving | ||
more than one educational service region may be operated under | ||
such
terms as the regional superintendents of schools of those | ||
educational service
regions may agree.
| ||
Each laboratory and alternative school shall file, on forms | ||
provided by the
State Superintendent of Education, an annual | ||
State aid claim which states the
Average Daily Attendance of | ||
the school's students by month. The best 3 months'
Average | ||
Daily Attendance shall be computed for each school.
The general | ||
State aid entitlement shall be computed by multiplying the
| ||
applicable Average Daily Attendance by the Foundation Level as | ||
determined under
this Section.
| ||
(L) Payments, Additional Grants in Aid and Other Requirements.
| ||
(1) For a school district operating under the financial |
supervision
of an Authority created under Article 34A, the | ||
general State aid otherwise
payable to that district under this | ||
Section, but not the supplemental general
State aid, shall be | ||
reduced by an amount equal to the budget for
the operations of | ||
the Authority as certified by the Authority to the State
Board | ||
of Education, and an amount equal to such reduction shall be | ||
paid
to the Authority created for such district for its | ||
operating expenses in
the manner provided in Section 18-11. The | ||
remainder
of general State school aid for any such district | ||
shall be paid in accordance
with Article 34A when that Article | ||
provides for a disposition other than that
provided by this | ||
Article.
| ||
(2) (Blank).
| ||
(3) Summer school. Summer school payments shall be made as | ||
provided in
Section 18-4.3.
| ||
(M) Education Funding Advisory Board.
| ||
The Education Funding Advisory
Board, hereinafter in this | ||
subsection (M) referred to as the "Board", is hereby
created. | ||
The Board
shall consist of 5 members who are appointed by the | ||
Governor, by and with the
advice and consent of the Senate. The | ||
members appointed shall include
representatives of education, | ||
business, and the general public. One of the
members so | ||
appointed shall be
designated by the Governor at the time the | ||
appointment is made as the
chairperson of the
Board.
The | ||
initial members of the Board may
be appointed any time after |
the effective date of this amendatory Act of
1997. The regular | ||
term of each member of the
Board shall be for 4 years from the | ||
third Monday of January of the
year in which the term of the | ||
member's appointment is to commence, except that
of the 5 | ||
initial members appointed to serve on the
Board, the member who | ||
is appointed as the chairperson shall serve for
a term that | ||
commences on the date of his or her appointment and expires on | ||
the
third Monday of January, 2002, and the remaining 4 members, | ||
by lots drawn at
the first meeting of the Board that is
held
| ||
after all 5 members are appointed, shall determine 2 of their | ||
number to serve
for terms that commence on the date of their
| ||
respective appointments and expire on the third
Monday of | ||
January, 2001,
and 2 of their number to serve for terms that | ||
commence
on the date of their respective appointments and | ||
expire on the third Monday
of January, 2000. All members | ||
appointed to serve on the
Board shall serve until their | ||
respective successors are
appointed and confirmed. Vacancies | ||
shall be filled in the same manner as
original appointments. If | ||
a vacancy in membership occurs at a time when the
Senate is not | ||
in session, the Governor shall make a temporary appointment | ||
until
the next meeting of the Senate, when he or she shall | ||
appoint, by and with the
advice and consent of the Senate, a | ||
person to fill that membership for the
unexpired term. If the | ||
Senate is not in session when the initial appointments
are | ||
made, those appointments shall
be made as in the case of | ||
vacancies.
|
The Education Funding Advisory Board shall be deemed | ||
established,
and the initial
members appointed by the Governor | ||
to serve as members of the
Board shall take office,
on the date | ||
that the
Governor makes his or her appointment of the fifth | ||
initial member of the
Board, whether those initial members are | ||
then serving
pursuant to appointment and confirmation or | ||
pursuant to temporary appointments
that are made by the | ||
Governor as in the case of vacancies.
| ||
The State Board of Education shall provide such staff | ||
assistance to the
Education Funding Advisory Board as is | ||
reasonably required for the proper
performance by the Board of | ||
its responsibilities.
| ||
For school years after the 2000-2001 school year, the | ||
Education
Funding Advisory Board, in consultation with the | ||
State Board of Education,
shall make recommendations as | ||
provided in this subsection (M) to the General
Assembly for the | ||
foundation level under subdivision (B)(3) of this Section and
| ||
for the
supplemental general State aid grant level under | ||
subsection (H) of this Section
for districts with high | ||
concentrations of children from poverty. The
recommended | ||
foundation level shall be determined based on a methodology | ||
which
incorporates the basic education expenditures of | ||
low-spending schools
exhibiting high academic performance. The | ||
Education Funding Advisory Board
shall make such | ||
recommendations to the General Assembly on January 1 of odd
| ||
numbered years, beginning January 1, 2001.
|
(N) (Blank).
| ||
(O) References.
| ||
(1) References in other laws to the various subdivisions of
| ||
Section 18-8 as that Section existed before its repeal and | ||
replacement by this
Section 18-8.05 shall be deemed to refer to | ||
the corresponding provisions of
this Section 18-8.05, to the | ||
extent that those references remain applicable.
| ||
(2) References in other laws to State Chapter 1 funds shall | ||
be deemed to
refer to the supplemental general State aid | ||
provided under subsection (H) of
this Section.
| ||
(P) Public Act 93-838 and Public Act 93-808 make inconsistent | ||
changes to this Section. Under Section 6 of the Statute on | ||
Statutes there is an irreconcilable conflict between Public Act | ||
93-808 and Public Act 93-838. Public Act 93-838, being the last | ||
acted upon, is controlling. The text of Public Act 93-838 is | ||
the law regardless of the text of Public Act 93-808. | ||
(Source: P.A. 93-21, eff. 7-1-03; 93-715, eff. 7-12-04; 93-808, | ||
eff. 7-26-04; 93-838, eff. 7-30-04; 93-875, eff. 8-6-04; 94-69, | ||
eff. 7-1-05; 94-438, eff. 8-4-05; 94-835, eff. 6-6-06; 94-1019, | ||
eff. 7-10-06; 94-1105, eff. 6-1-07; revised 2-18-07.)
| ||
(105 ILCS 5/21-29 new)
| ||
Sec. 21-29. Salary Incentive Program for Hard-to-Staff |
Schools. | ||
(a) The Salary Incentive Program for Hard-to-Staff Schools | ||
is established to provide categorical funding for monetary | ||
incentives and bonuses for teachers and school administrators | ||
who are employed by school districts designated as | ||
hard-to-staff by the State Board of Education. The State Board | ||
of Education shall allocate and distribute to qualifying school | ||
districts an amount as annually appropriated by the General | ||
Assembly for the Salary Incentive Program for Hard-to-Staff | ||
Schools. The State Board of Education's annual budget must set | ||
out by separate line item the appropriation for the program. | ||
(b) Unless otherwise provided by appropriation, each | ||
school district's annual allocation under the Salary Incentive | ||
Program for Hard-to-Staff Schools shall be the sum of the | ||
following incentives and bonuses: | ||
(1) An annual payment of $3,000 to be paid to each | ||
certificated teacher employed as a school teacher by a | ||
school district. The school district shall distribute this | ||
payment to each eligible teacher as a single payment or in | ||
not more than 3 payments. | ||
(2) An annual payment of $5,000 to each certificated | ||
principal that is employed as a school principal by a | ||
school district. The school district shall distribute this | ||
payment to each eligible principal as a single payment or | ||
in not more than 3 payments. | ||
(c) Each regional superintendent of schools shall provide |
information about the Salary Incentive Program for | ||
Hard-to-Staff Schools to each individual seeking to register or | ||
renew a certificate. | ||
Section 5-23. The Hospital Licensing Act is amended by | ||
changing Section 8 as follows:
| ||
(210 ILCS 85/8) (from Ch. 111 1/2, par. 149)
| ||
Sec. 8. Facility plan review; fees.
| ||
(a) Before commencing construction of new facilities or | ||
specified types
of alteration or additions to an existing | ||
hospital involving major
construction, as defined by rule by | ||
the Department, with an estimated
cost greater than $100,000, | ||
architectural plans and
specifications therefor shall be | ||
submitted by the licensee to the
Department for review and | ||
approval.
A hospital may submit architectural drawings and | ||
specifications for other
construction projects for Department | ||
review according to subsection (b) that
shall not be subject to | ||
fees under subsection (d).
The Department must give a hospital | ||
that is planning to submit a construction
project for review | ||
the opportunity to discuss its plans and specifications with
| ||
the Department before the hospital formally submits the plans | ||
and
specifications for Department review.
Review of drawings | ||
and specifications shall be conducted by an employee of
the | ||
Department meeting the qualifications established by the | ||
Department of
Central Management Services class specifications |
for such an individual's
position or by a person contracting | ||
with the Department who meets those class
specifications.
Final | ||
approval of the plans and specifications for compliance
with | ||
design and construction standards shall be obtained from the
| ||
Department before the alteration, addition, or new | ||
construction is begun. Subject to this Section 8, and prior to | ||
January 1, 2012, the Department shall consider the re-licensing | ||
of an existing hospital structure according to the standards | ||
for an existing hospital, as set forth in the Department's | ||
rules. Re-licensing under this provision shall occur only if | ||
that facility operated as a licensed hospital on July 1, 2005, | ||
has had no intervening use as other than a hospital, and exists | ||
in a county with a population of less than 20,000 that does not | ||
have another licensed hospital on the effective date of this | ||
amendatory Act of the 95th General Assembly.
| ||
(b) The Department shall inform an applicant in writing | ||
within 10 working
days after receiving drawings and | ||
specifications and the required fee, if any,
from the applicant | ||
whether the applicant's submission is complete or
incomplete. | ||
Failure to provide the applicant with this notice within 10
| ||
working days shall result in the submission being deemed | ||
complete for purposes
of initiating the 60-day review period | ||
under this Section. If the submission
is incomplete, the | ||
Department shall inform the applicant of the deficiencies
with | ||
the submission in writing. If the submission is complete and | ||
the required
fee, if any, has been paid,
the Department shall |
approve or disapprove drawings and specifications
submitted to | ||
the Department no later than 60 days following receipt by the
| ||
Department. The drawings and specifications shall be of | ||
sufficient detail, as
provided by Department rule, to
enable | ||
the Department to
render a determination of compliance with | ||
design and construction standards
under this Act.
If the | ||
Department finds that the drawings are not of sufficient detail | ||
for it
to render a determination of compliance, the plans shall | ||
be determined to be
incomplete and shall not be considered for | ||
purposes of initiating the 60 day
review period.
If a | ||
submission of drawings and specifications is incomplete, the | ||
applicant
may submit additional information. The 60-day review | ||
period shall not commence
until the Department determines that | ||
a submission of drawings and
specifications is complete or the | ||
submission is deemed complete.
If the Department has not | ||
approved or disapproved the
drawings and specifications within | ||
60 days, the construction, major alteration,
or addition shall | ||
be deemed approved. If the drawings and specifications are
| ||
disapproved, the Department shall state in writing, with | ||
specificity, the
reasons for the disapproval. The entity | ||
submitting the drawings and
specifications may submit | ||
additional information in response to the written
comments from | ||
the Department or request a reconsideration of the disapproval.
| ||
A final decision of approval or disapproval shall be made | ||
within 45 days of the
receipt of the additional information or | ||
reconsideration request. If denied,
the Department shall state |
the specific reasons for the denial
and the applicant may elect | ||
to seek dispute resolution pursuant to Section
25 of the | ||
Illinois Building Commission Act, which the Department must
| ||
participate in.
| ||
(c) The Department shall provide written approval for | ||
occupancy pursuant
to subsection (g) and shall not issue a | ||
violation to a facility as a result of
a licensure or complaint | ||
survey based upon the facility's physical structure
if:
| ||
(1) the Department reviewed and approved or deemed | ||
approved the drawing
and specifications for compliance | ||
with design and construction standards;
| ||
(2) the construction, major alteration, or addition | ||
was built as
submitted;
| ||
(3) the law or rules have not been amended since the | ||
original approval;
and
| ||
(4) the conditions at the facility indicate that there | ||
is a reasonable
degree of safety provided for the patients.
| ||
(c-5) The Department shall not issue a violation to a | ||
facility if the
inspected aspects of the facility were | ||
previously found to be in compliance
with applicable standards, | ||
the relevant law or rules have not been amended,
conditions at | ||
the facility
reasonably protect the safety of its patients, and | ||
alterations or new hazards
have not been
identified.
| ||
(d) The Department shall charge the following fees in | ||
connection with its
reviews conducted before June 30, 2004 | ||
under this Section:
|
(1) (Blank).
| ||
(2) (Blank).
| ||
(3) If the estimated dollar value of the major
| ||
construction is greater than $500,000, the fee shall be
| ||
established by the Department pursuant to rules that | ||
reflect the reasonable
and
direct cost of the Department in | ||
conducting the architectural reviews required
under this | ||
Section. The estimated dollar value of the major | ||
construction
subject to review under this Section shall be | ||
annually readjusted to
reflect the
increase in | ||
construction costs due to inflation.
| ||
The fees provided in this subsection (d) shall not apply to | ||
major
construction projects involving facility changes that | ||
are required by
Department rule amendments or to projects | ||
related to homeland security.
| ||
The fees provided in this subsection (d) shall also not | ||
apply to major
construction projects if 51% or more of the | ||
estimated cost of the project is
attributed to capital | ||
equipment. For major construction projects where 51% or
more of | ||
the estimated cost of the project is attributed to capital | ||
equipment,
the Department shall by rule establish a fee that is | ||
reasonably related to the
cost of reviewing the project.
| ||
Disproportionate share hospitals and rural hospitals shall | ||
only pay
one-half of the fees
required in this subsection (d).
| ||
For the purposes of this subsection (d),
(i) "disproportionate | ||
share hospital" means a hospital described in items (1)
through |
(5) of subsection (b) of Section 5-5.02 of the Illinois Public | ||
Aid
Code and (ii)
"rural hospital" means a hospital that
is (A) | ||
located
outside a metropolitan statistical area or (B) located | ||
15 miles or less from a
county that is
outside a metropolitan | ||
statistical area and is licensed to perform
medical/surgical or
| ||
obstetrical services and has a combined total bed capacity of | ||
75 or fewer beds
in these 2
service categories as of July 14, | ||
1993, as determined by the Department.
| ||
The Department shall not commence the facility plan review | ||
process under this
Section until the applicable fee has been | ||
paid.
| ||
(e) All fees received by the Department under this Section | ||
shall be
deposited into the Health Facility Plan Review Fund, a | ||
special fund created in
the State treasury.
All fees paid by | ||
hospitals under subsection (d) shall be used only to cover
the | ||
direct and reasonable costs relating to the Department's review | ||
of hospital
projects under this
Section.
Moneys shall be | ||
appropriated from that Fund to the
Department only to pay the | ||
costs of conducting reviews under this Section.
None of the | ||
moneys in the Health Facility Plan Review Fund shall be used to
| ||
reduce the amount of General Revenue Fund moneys appropriated | ||
to the Department
for facility plan reviews conducted pursuant | ||
to this Section.
| ||
(f) (Blank).
| ||
(g) The Department shall conduct an on-site inspection of | ||
the completed
project no later than 15 business days after |
notification from the
applicant that the
project has been | ||
completed and all certifications required by the Department
| ||
have been received and accepted by the Department. The | ||
Department may extend
this deadline only if a federally | ||
mandated survey time frame takes
precedence. The Department | ||
shall
provide written approval for occupancy to the applicant | ||
within 5 working days
of the Department's final inspection, | ||
provided the applicant has demonstrated
substantial compliance | ||
as defined by Department rule.
Occupancy of new major | ||
construction is prohibited until Department approval is
| ||
received, unless the Department has not acted within the time | ||
frames provided
in this subsection (g), in which case the | ||
construction shall be deemed
approved. Occupancy shall be | ||
authorized after any
required health inspection by the | ||
Department has been conducted.
| ||
(h) The Department shall establish, by rule, a procedure to | ||
conduct interim
on-site review of large or complex construction | ||
projects.
| ||
(i) The Department shall establish, by rule, an expedited | ||
process for
emergency repairs or replacement of like equipment.
| ||
(j) Nothing in this Section shall be construed to apply to | ||
maintenance,
upkeep, or renovation that does not affect the | ||
structural integrity of the
building, does not add beds or | ||
services over the number for which the facility
is licensed, | ||
and provides a reasonable degree of safety for the patients.
| ||
(Source: P.A. 92-563, eff. 6-24-02; 92-803, eff. 8-16-02; |
93-41, eff.
6-27-03.)
| ||
Section 5-25. The Illinois Public Aid Code is amended by | ||
changing Sections 5-5.4, 5A-8, 5B-8, 5C-2, and 12-10.7 and by | ||
adding Section 12-10.8 as follows: | ||
(305 ILCS 5/5-5.4) (from Ch. 23, par. 5-5.4)
| ||
Sec. 5-5.4. Standards of Payment - Department of Healthcare | ||
and Family Services.
The Department of Healthcare and Family | ||
Services shall develop standards of payment of skilled
nursing | ||
and intermediate care services in facilities providing such | ||
services
under this Article which:
| ||
(1) Provide for the determination of a facility's payment
| ||
for skilled nursing and intermediate care services on a | ||
prospective basis.
The amount of the payment rate for all | ||
nursing facilities certified by the
Department of Public Health | ||
under the Nursing Home Care Act as Intermediate
Care for the | ||
Developmentally Disabled facilities, Long Term Care for Under | ||
Age
22 facilities, Skilled Nursing facilities, or Intermediate | ||
Care facilities
under the
medical assistance program shall be | ||
prospectively established annually on the
basis of historical, | ||
financial, and statistical data reflecting actual costs
from | ||
prior years, which shall be applied to the current rate year | ||
and updated
for inflation, except that the capital cost element | ||
for newly constructed
facilities shall be based upon projected | ||
budgets. The annually established
payment rate shall take |
effect on July 1 in 1984 and subsequent years. No rate
increase | ||
and no
update for inflation shall be provided on or after July | ||
1, 1994 and before
July 1, 2008, unless specifically provided | ||
for in this
Section.
The changes made by Public Act 93-841
| ||
extending the duration of the prohibition against a rate | ||
increase or update for inflation are effective retroactive to | ||
July 1, 2004.
| ||
For facilities licensed by the Department of Public Health | ||
under the Nursing
Home Care Act as Intermediate Care for the | ||
Developmentally Disabled facilities
or Long Term Care for Under | ||
Age 22 facilities, the rates taking effect on July
1, 1998 | ||
shall include an increase of 3%. For facilities licensed by the
| ||
Department of Public Health under the Nursing Home Care Act as | ||
Skilled Nursing
facilities or Intermediate Care facilities, | ||
the rates taking effect on July 1,
1998 shall include an | ||
increase of 3% plus $1.10 per resident-day, as defined by
the | ||
Department. For facilities licensed by the Department of Public | ||
Health under the Nursing Home Care Act as Intermediate Care | ||
Facilities for the Developmentally Disabled or Long Term Care | ||
for Under Age 22 facilities, the rates taking effect on January | ||
1, 2006 shall include an increase of 3%.
| ||
For facilities licensed by the Department of Public Health | ||
under the
Nursing Home Care Act as Intermediate Care for the | ||
Developmentally Disabled
facilities or Long Term Care for Under | ||
Age 22 facilities, the rates taking
effect on July 1, 1999 | ||
shall include an increase of 1.6% plus $3.00 per
resident-day, |
as defined by the Department. For facilities licensed by the
| ||
Department of Public Health under the Nursing Home Care Act as | ||
Skilled Nursing
facilities or Intermediate Care facilities, | ||
the rates taking effect on July 1,
1999 shall include an | ||
increase of 1.6% and, for services provided on or after
October | ||
1, 1999, shall be increased by $4.00 per resident-day, as | ||
defined by
the Department.
| ||
For facilities licensed by the Department of Public Health | ||
under the
Nursing Home Care Act as Intermediate Care for the | ||
Developmentally Disabled
facilities or Long Term Care for Under | ||
Age 22 facilities, the rates taking
effect on July 1, 2000 | ||
shall include an increase of 2.5% per resident-day,
as defined | ||
by the Department. For facilities licensed by the Department of
| ||
Public Health under the Nursing Home Care Act as Skilled | ||
Nursing facilities or
Intermediate Care facilities, the rates | ||
taking effect on July 1, 2000 shall
include an increase of 2.5% | ||
per resident-day, as defined by the Department.
| ||
For facilities licensed by the Department of Public Health | ||
under the
Nursing Home Care Act as skilled nursing facilities | ||
or intermediate care
facilities, a new payment methodology must | ||
be implemented for the nursing
component of the rate effective | ||
July 1, 2003. The Department of Public Aid
(now Healthcare and | ||
Family Services) shall develop the new payment methodology | ||
using the Minimum Data Set
(MDS) as the instrument to collect | ||
information concerning nursing home
resident condition | ||
necessary to compute the rate. The Department
shall develop the |
new payment methodology to meet the unique needs of
Illinois | ||
nursing home residents while remaining subject to the | ||
appropriations
provided by the General Assembly.
A transition | ||
period from the payment methodology in effect on June 30, 2003
| ||
to the payment methodology in effect on July 1, 2003 shall be | ||
provided for a
period not exceeding 3 years and 184 days after | ||
implementation of the new payment
methodology as follows:
| ||
(A) For a facility that would receive a lower
nursing | ||
component rate per patient day under the new system than | ||
the facility
received
effective on the date immediately | ||
preceding the date that the Department
implements the new | ||
payment methodology, the nursing component rate per | ||
patient
day for the facility
shall be held at
the level in | ||
effect on the date immediately preceding the date that the
| ||
Department implements the new payment methodology until a | ||
higher nursing
component rate of
reimbursement is achieved | ||
by that
facility.
| ||
(B) For a facility that would receive a higher nursing | ||
component rate per
patient day under the payment | ||
methodology in effect on July 1, 2003 than the
facility | ||
received effective on the date immediately preceding the | ||
date that the
Department implements the new payment | ||
methodology, the nursing component rate
per patient day for | ||
the facility shall be adjusted.
| ||
(C) Notwithstanding paragraphs (A) and (B), the | ||
nursing component rate per
patient day for the facility |
shall be adjusted subject to appropriations
provided by the | ||
General Assembly.
| ||
For facilities licensed by the Department of Public Health | ||
under the
Nursing Home Care Act as Intermediate Care for the | ||
Developmentally Disabled
facilities or Long Term Care for Under | ||
Age 22 facilities, the rates taking
effect on March 1, 2001 | ||
shall include a statewide increase of 7.85%, as
defined by the | ||
Department.
| ||
Notwithstanding any other provision of this Section, for | ||
facilities licensed by the Department of Public Health under | ||
the
Nursing Home Care Act as skilled nursing facilities or | ||
intermediate care
facilities, the numerator of the ratio used | ||
by the Department of Healthcare and Family Services to compute | ||
the rate payable under this Section using the Minimum Data Set | ||
(MDS) methodology shall incorporate the following annual | ||
amounts as the additional funds appropriated to the Department | ||
specifically to pay for rates based on the MDS nursing | ||
component methodology in excess of the funding in effect on | ||
December 31, 2006: | ||
(i) For rates taking effect January 1, 2007, | ||
$60,000,000. | ||
(ii) For rates taking effect January 1, 2008, | ||
$110,000,000. | ||
Notwithstanding any other provision of this Section, for | ||
facilities licensed by the Department of Public Health under | ||
the Nursing Home Care Act as skilled nursing facilities or |
intermediate care facilities, the support component of the | ||
rates taking effect on January 1, 2008 shall be computed using | ||
the most recent cost reports on file with the Department of | ||
Healthcare and Family Services no later than April 1, 2005, | ||
updated for inflation to January 1, 2006. | ||
For facilities licensed by the Department of Public Health | ||
under the
Nursing Home Care Act as Intermediate Care for the | ||
Developmentally Disabled
facilities or Long Term Care for Under | ||
Age 22 facilities, the rates taking
effect on April 1, 2002 | ||
shall include a statewide increase of 2.0%, as
defined by the | ||
Department.
This increase terminates on July 1, 2002;
beginning | ||
July 1, 2002 these rates are reduced to the level of the rates
| ||
in effect on March 31, 2002, as defined by the Department.
| ||
For facilities licensed by the Department of Public Health | ||
under the
Nursing Home Care Act as skilled nursing facilities | ||
or intermediate care
facilities, the rates taking effect on | ||
July 1, 2001 shall be computed using the most recent cost | ||
reports
on file with the Department of Public Aid no later than | ||
April 1, 2000,
updated for inflation to January 1, 2001. For | ||
rates effective July 1, 2001
only, rates shall be the greater | ||
of the rate computed for July 1, 2001
or the rate effective on | ||
June 30, 2001.
| ||
Notwithstanding any other provision of this Section, for | ||
facilities
licensed by the Department of Public Health under | ||
the Nursing Home Care Act
as skilled nursing facilities or | ||
intermediate care facilities, the Illinois
Department shall |
determine by rule the rates taking effect on July 1, 2002,
| ||
which shall be 5.9% less than the rates in effect on June 30, | ||
2002.
| ||
Notwithstanding any other provision of this Section, for | ||
facilities
licensed by the Department of Public Health under | ||
the Nursing Home Care Act as
skilled nursing
facilities or | ||
intermediate care facilities, if the payment methodologies | ||
required under Section 5A-12 and the waiver granted under 42 | ||
CFR 433.68 are approved by the United States Centers for | ||
Medicare and Medicaid Services, the rates taking effect on July | ||
1, 2004 shall be 3.0% greater than the rates in effect on June | ||
30, 2004. These rates shall take
effect only upon approval and
| ||
implementation of the payment methodologies required under | ||
Section 5A-12.
| ||
Notwithstanding any other provisions of this Section, for | ||
facilities licensed by the Department of Public Health under | ||
the Nursing Home Care Act as skilled nursing facilities or | ||
intermediate care facilities, the rates taking effect on | ||
January 1, 2005 shall be 3% more than the rates in effect on | ||
December 31, 2004.
| ||
Notwithstanding any other provisions of this Section, for | ||
facilities licensed by the Department of Public Health under | ||
the Nursing Home Care Act as intermediate care facilities that | ||
are federally defined as Institutions for Mental Disease, a | ||
socio-development component rate equal to 6.6% of the | ||
facility's nursing component rate as of January 1, 2006 shall |
be established and paid effective July 1, 2006. The | ||
socio-development component of the rate shall be increased by a | ||
factor of 2.53 on the first day of the month that begins at | ||
least 45 days after the effective date of this amendatory Act | ||
of the 95th General Assembly. The Illinois Department may by | ||
rule adjust these socio-development component rates, but in no | ||
case may such rates be diminished.
| ||
For facilities
licensed
by the
Department of Public Health | ||
under the Nursing Home Care Act as Intermediate
Care for
the | ||
Developmentally Disabled facilities or as long-term care | ||
facilities for
residents under 22 years of age, the rates | ||
taking effect on July 1,
2003 shall
include a statewide | ||
increase of 4%, as defined by the Department.
| ||
For facilities licensed by the Department of Public Health | ||
under the
Nursing Home Care Act as Intermediate Care for the | ||
Developmentally Disabled
facilities or Long Term Care for Under | ||
Age 22 facilities, the rates taking
effect on the first day of | ||
the month that begins at least 45 days after the effective date | ||
of this amendatory Act of the 95th General Assembly shall | ||
include a statewide increase of 2.5%, as
defined by the | ||
Department. | ||
Notwithstanding any other provision of this Section, for | ||
facilities licensed by the Department of Public Health under | ||
the Nursing Home Care Act as skilled nursing facilities or | ||
intermediate care facilities, effective January 1, 2005, | ||
facility rates shall be increased by the difference between (i) |
a facility's per diem property, liability, and malpractice | ||
insurance costs as reported in the cost report filed with the | ||
Department of Public Aid and used to establish rates effective | ||
July 1, 2001 and (ii) those same costs as reported in the | ||
facility's 2002 cost report. These costs shall be passed | ||
through to the facility without caps or limitations, except for | ||
adjustments required under normal auditing procedures.
| ||
Rates established effective each July 1 shall govern | ||
payment
for services rendered throughout that fiscal year, | ||
except that rates
established on July 1, 1996 shall be | ||
increased by 6.8% for services
provided on or after January 1, | ||
1997. Such rates will be based
upon the rates calculated for | ||
the year beginning July 1, 1990, and for
subsequent years | ||
thereafter until June 30, 2001 shall be based on the
facility | ||
cost reports
for the facility fiscal year ending at any point | ||
in time during the previous
calendar year, updated to the | ||
midpoint of the rate year. The cost report
shall be on file | ||
with the Department no later than April 1 of the current
rate | ||
year. Should the cost report not be on file by April 1, the | ||
Department
shall base the rate on the latest cost report filed | ||
by each skilled care
facility and intermediate care facility, | ||
updated to the midpoint of the
current rate year. In | ||
determining rates for services rendered on and after
July 1, | ||
1985, fixed time shall not be computed at less than zero. The
| ||
Department shall not make any alterations of regulations which | ||
would reduce
any component of the Medicaid rate to a level |
below what that component would
have been utilizing in the rate | ||
effective on July 1, 1984.
| ||
(2) Shall take into account the actual costs incurred by | ||
facilities
in providing services for recipients of skilled | ||
nursing and intermediate
care services under the medical | ||
assistance program.
| ||
(3) Shall take into account the medical and psycho-social
| ||
characteristics and needs of the patients.
| ||
(4) Shall take into account the actual costs incurred by | ||
facilities in
meeting licensing and certification standards | ||
imposed and prescribed by the
State of Illinois, any of its | ||
political subdivisions or municipalities and by
the U.S. | ||
Department of Health and Human Services pursuant to Title XIX | ||
of the
Social Security Act.
| ||
The Department of Healthcare and Family Services
shall | ||
develop precise standards for
payments to reimburse nursing | ||
facilities for any utilization of
appropriate rehabilitative | ||
personnel for the provision of rehabilitative
services which is | ||
authorized by federal regulations, including
reimbursement for | ||
services provided by qualified therapists or qualified
| ||
assistants, and which is in accordance with accepted | ||
professional
practices. Reimbursement also may be made for | ||
utilization of other
supportive personnel under appropriate | ||
supervision.
| ||
(Source: P.A. 94-48, eff. 7-1-05; 94-85, eff. 6-28-05; 94-697, | ||
eff. 11-21-05; 94-838, eff. 6-6-06; 94-964, eff. 6-28-06; |
95-12, eff. 7-2-07.)
| ||
(305 ILCS 5/5A-8) (from Ch. 23, par. 5A-8)
| ||
Sec. 5A-8. Hospital Provider Fund.
| ||
(a) There is created in the State Treasury the Hospital | ||
Provider Fund.
Interest earned by the Fund shall be credited to | ||
the Fund. The
Fund shall not be used to replace any moneys | ||
appropriated to the
Medicaid program by the General Assembly.
| ||
(b) The Fund is created for the purpose of receiving moneys
| ||
in accordance with Section 5A-6 and disbursing moneys only for | ||
the following
purposes, notwithstanding any other provision of | ||
law:
| ||
(1) For making payments to hospitals as required under | ||
Articles V, VI,
and XIV of this Code and
under the | ||
Children's Health Insurance Program Act.
| ||
(2) For the reimbursement of moneys collected by the
| ||
Illinois Department from hospitals or hospital providers | ||
through error or
mistake in performing the
activities | ||
authorized under this Article and Article V of this Code.
| ||
(3) For payment of administrative expenses incurred by | ||
the
Illinois Department or its agent in performing the | ||
activities
authorized by this Article.
| ||
(4) For payments of any amounts which are reimbursable | ||
to
the federal government for payments from this Fund which | ||
are
required to be paid by State warrant.
| ||
(5) For making transfers, as those transfers are |
authorized
in the proceedings authorizing debt under the | ||
Short Term Borrowing Act,
but transfers made under this | ||
paragraph (5) shall not exceed the
principal amount of debt | ||
issued in anticipation of the receipt by
the State of | ||
moneys to be deposited into the Fund.
| ||
(6) For making transfers to any other fund in the State | ||
treasury, but
transfers made under this paragraph (6) shall | ||
not exceed the amount transferred
previously from that | ||
other fund into the Hospital Provider Fund.
| ||
(7) For State fiscal years 2004 and 2005 for making | ||
transfers to the Health and Human Services
Medicaid Trust | ||
Fund, including 20% of the moneys received from
hospital | ||
providers under Section 5A-4 and transferred into the | ||
Hospital
Provider
Fund under Section 5A-6. For State fiscal | ||
year 2006 for making transfers to the Health and Human | ||
Services Medicaid Trust Fund of up to $130,000,000 per year | ||
of the moneys received from hospital providers under | ||
Section 5A-4 and transferred into the Hospital Provider | ||
Fund under Section 5A-6. Transfers under this paragraph | ||
shall be made within 7
days after the payments have been | ||
received pursuant to the schedule of payments
provided in | ||
subsection (a) of Section 5A-4.
| ||
(7.5) For State fiscal year years 2007 and 2008 for | ||
making
transfers of the moneys received from hospital | ||
providers under Section 5A-4 and transferred into the | ||
Hospital Provider Fund under Section 5A-6 to the designated |
funds not exceeding the following amounts
in that any State | ||
fiscal year: | ||
Health and Human Services | ||
Medicaid Trust Fund .................
$20,000,000 | ||
Long-Term Care Provider Fund ............
$30,000,000 | ||
General Revenue Fund ...................
$80,000,000. | ||
Transfers under this paragraph shall be made within 7 | ||
days after the payments have been received pursuant to the | ||
schedule of payments provided in subsection (a) of Section | ||
5A-4.
| ||
(7.8) For State fiscal year 2008, for making transfers | ||
of the moneys received from hospital providers under | ||
Section 5A-4 and transferred into the Hospital Provider | ||
Fund under Section 5A-6 to the designated funds not | ||
exceeding the following amounts in that State fiscal year: | ||
Health and Human Services | ||
Medicaid Trust Fund ..................$40,000,000 | ||
Long-Term Care Provider Fund ..............$60,000,000 | ||
General Revenue Fund ...................$160,000,000. | ||
Transfers under this paragraph shall be made within 7 | ||
days after the payments have been received pursuant to the | ||
schedule of payments provided in subsection (a) of Section | ||
5A-4. | ||
(8) For making refunds to hospital providers pursuant | ||
to Section 5A-10.
| ||
Disbursements from the Fund, other than transfers |
authorized under
paragraphs (5) and (6) of this subsection, | ||
shall be by
warrants drawn by the State Comptroller upon | ||
receipt of vouchers
duly executed and certified by the Illinois | ||
Department.
| ||
(c) The Fund shall consist of the following:
| ||
(1) All moneys collected or received by the Illinois
| ||
Department from the hospital provider assessment imposed | ||
by this
Article.
| ||
(2) All federal matching funds received by the Illinois
| ||
Department as a result of expenditures made by the Illinois
| ||
Department that are attributable to moneys deposited in the | ||
Fund.
| ||
(3) Any interest or penalty levied in conjunction with | ||
the
administration of this Article.
| ||
(4) Moneys transferred from another fund in the State | ||
treasury.
| ||
(5) All other moneys received for the Fund from any | ||
other
source, including interest earned thereon.
| ||
(d) (Blank).
| ||
(Source: P.A. 93-659, eff. 2-3-04; 94-242, eff. 7-18-05; | ||
94-839, eff. 6-6-06.)
| ||
(305 ILCS 5/5B-8) (from Ch. 23, par. 5B-8)
| ||
Sec. 5B-8. Long-Term Care Provider Fund.
| ||
(a) There is created in the State Treasury the Long-Term
| ||
Care Provider Fund. Interest earned by the Fund shall be
|
credited to the Fund. The Fund shall not be used to replace any
| ||
moneys appropriated to the Medicaid program by the General | ||
Assembly.
| ||
(b) The Fund is created for the purpose of receiving and
| ||
disbursing moneys in accordance with this Article. | ||
Disbursements
from the Fund shall be made only as follows:
| ||
(1) For payments to skilled or intermediate nursing
| ||
facilities, including county nursing facilities but | ||
excluding
State-operated facilities, under Title XIX of | ||
the Social Security
Act and Article V of this Code.
| ||
(2) For the reimbursement of moneys collected by the
| ||
Illinois Department through error or mistake, and for | ||
making
required payments under Section 5-4.38(a)(1) if | ||
there are no
moneys available for such payments in the | ||
Medicaid Long Term Care
Provider Participation Fee Trust | ||
Fund.
| ||
(3) For payment of administrative expenses incurred by | ||
the
Illinois Department or its agent in performing the | ||
activities
authorized by this Article.
| ||
(3.5) For reimbursement of expenses incurred by | ||
long-term care facilities, and payment of administrative | ||
expenses incurred by the Department of Public Health, in | ||
relation to the conduct and analysis of background checks | ||
for identified offenders under the Nursing Home Care Act.
| ||
(4) For payments of any amounts that are reimbursable | ||
to the
federal government for payments from this Fund that |
are required
to be paid by State warrant.
| ||
(5) For making transfers to the General Obligation Bond
| ||
Retirement and Interest Fund, as those transfers are | ||
authorized
in the proceedings authorizing debt under the | ||
Short Term Borrowing Act,
but transfers made under this | ||
paragraph (5) shall not exceed the
principal amount of debt | ||
issued in anticipation of the receipt by
the State of | ||
moneys to be deposited into the Fund.
| ||
Disbursements from the Fund, other than transfers to the
| ||
General Obligation Bond Retirement and Interest Fund, shall be | ||
by
warrants drawn by the State Comptroller upon receipt of | ||
vouchers
duly executed and certified by the Illinois | ||
Department.
| ||
(c) The Fund shall consist of the following:
| ||
(1) All moneys collected or received by the Illinois
| ||
Department from the long-term care provider assessment | ||
imposed by
this Article.
| ||
(2) All federal matching funds received by the Illinois
| ||
Department as a result of expenditures made by the Illinois
| ||
Department that are attributable to moneys deposited in the | ||
Fund.
| ||
(3) Any interest or penalty levied in conjunction with | ||
the
administration of this Article.
| ||
(4) Any balance in the Medicaid Long Term Care Provider | ||
Participation
Fee Fund in the State Treasury. The balance | ||
shall be transferred to the
Fund upon certification by the |
Illinois Department to the State Comptroller
that all of | ||
the disbursements required by Section 5-4.31(b) of this | ||
Code
have been made.
| ||
(5) All other monies received for the Fund from any | ||
other source,
including interest earned thereon.
| ||
(Source: P.A. 89-626, eff. 8-9-96.)
| ||
(305 ILCS 5/5C-2) (from Ch. 23, par. 5C-2)
| ||
Sec. 5C-2. Assessment; no local authorization to tax.
| ||
(a) For the privilege of engaging in the occupation of | ||
developmentally
disabled care provider, an assessment is | ||
imposed upon each developmentally
disabled care provider in an | ||
amount equal to 6% , or the maximum allowed under federal | ||
regulation, whichever is less, of its adjusted
gross | ||
developmentally disabled care revenue for the prior State | ||
fiscal
year. Notwithstanding any provision of any other Act to | ||
the contrary, this
assessment shall be construed as a tax, but | ||
may not be added to the charges
of an individual's nursing home | ||
care that is paid for in whole, or in part,
by a federal, | ||
State, or combined federal-state medical care program, except
| ||
those individuals receiving Medicare Part B benefits solely.
| ||
(b) Nothing in this amendatory Act of 1995 shall be | ||
construed
to authorize any home rule unit or other unit of | ||
local government to license
for revenue or impose a tax or | ||
assessment upon a developmentally disabled care
provider or the | ||
occupation of developmentally disabled care provider, or a tax
|
or assessment measured by the income or earnings of a | ||
developmentally disabled
care provider.
| ||
(Source: P.A. 88-88; 89-21, eff. 7-1-95.)
| ||
(305 ILCS 5/12-10.7)
| ||
Sec. 12-10.7. The Health and Human Services Medicaid Trust | ||
Fund. | ||
(a) The Health and Human Services Medicaid Trust Fund shall | ||
consist of (i) moneys appropriated or transferred into the | ||
Fund, pursuant to statute, (ii) federal financial | ||
participation moneys received pursuant to expenditures from | ||
the Fund, and (iii) the interest earned on moneys in the Fund. | ||
(b) Subject to appropriation, the moneys in the Fund shall | ||
be used by a State agency for such purposes as that agency may, | ||
by the appropriation language, be directed.
| ||
(c) In addition to any other transfers that may be provided | ||
for by law, on July 1, 2007, or as soon thereafter as | ||
practical, the State Comptroller shall direct and the State | ||
Treasurer shall transfer the sum of $3,500,000 from the Health | ||
and Human Services Medicaid Trust Fund to the Human Services | ||
Priority Capital Program Fund.
| ||
(Source: P.A. 93-841, eff. 7-30-04.) | ||
(305 ILCS 5/12-10.8 new)
| ||
Sec. 12-10.8. Mental health contracts. Subject to | ||
appropriations available for these purposes, including, |
without limitation, the FY08 appropriations to the Department | ||
for federally defined Institutions for Mental Disease, the | ||
Department of Healthcare and Family Services shall enter into a | ||
contract for $1,000,000 with the provider of community mental | ||
health services that has more than 700 beds at over 30 service | ||
locations in multiple counties for purposes of supporting the | ||
implementation of time-limited resident review and rapid | ||
reintegration targeted to residents of federally defined | ||
Institutions for Mental Disease. | ||
Section 5-30. The Illinois Affordable Housing Act is | ||
amended by changing Section 8 as follows:
| ||
(310 ILCS 65/8) (from Ch. 67 1/2, par. 1258)
| ||
Sec. 8. Uses of Trust Fund.
| ||
(a) Subject to annual appropriation to
the Funding Agent | ||
and subject to the prior dedication, allocation, transfer
and | ||
use of Trust Fund Moneys as provided in Sections 8(b), 8(c) and | ||
9 of this
Act, the Trust Fund may be used to make grants,
| ||
mortgages, or
other loans to acquire, construct, rehabilitate, | ||
develop, operate, insure,
and retain affordable single-family | ||
and multi-family housing in this State
for low-income
and very | ||
low-income households. The majority of monies appropriated to | ||
the
Trust Fund in any given year are to be used for affordable | ||
housing for very
low-income households. For the fiscal years | ||
2007 and 2008
year beginning July 1, 2006 only, the Department |
of Human Services is authorized to receive appropriations and | ||
spend moneys from the Illinois Affordable Housing Trust Fund | ||
for the purpose of developing and coordinating public and | ||
private resources targeted to meet the affordable housing needs | ||
of low-income, very low-income, and special needs households in | ||
the State of Illinois.
| ||
(b) For each fiscal year commencing with fiscal year 1994, | ||
the Program
Administrator shall certify from time to time to | ||
the Funding Agent, the
Comptroller and the State
Treasurer | ||
amounts, up to an aggregate in any fiscal year of $10,000,000, | ||
of
Trust Fund Moneys expected to be used or pledged by the | ||
Program Administrator
during the fiscal year for the purposes | ||
and uses specified in Sections 8(c) and
9 of this Act. Subject | ||
to annual appropriation, upon receipt of such
certification, | ||
the Funding Agent and the
Comptroller shall dedicate and the | ||
State Treasurer shall transfer not less
often than monthly to | ||
the Program Administrator or its designated payee,
without | ||
requisition or further
request therefor, all amounts | ||
accumulated in the Trust Fund within the State
Treasury and not | ||
already transferred to the Loan Commitment Account prior to
the | ||
Funding Agent's receipt of such certification, until the | ||
Program
Administrator has received the aggregate amount | ||
certified by the Program
Administrator, to be used solely for | ||
the purposes and uses authorized and
provided in Sections 8(c) | ||
and 9 of this Act. Neither the Comptroller nor the
Treasurer | ||
shall transfer, dedicate or allocate any of the Trust Fund |
Moneys
transferred or certified for transfer by the Program | ||
Administrator as provided
above to any other fund, nor shall | ||
the Governor authorize any such transfer,
dedication or | ||
allocation, nor shall any of the Trust Fund Moneys so | ||
dedicated,
allocated or transferred be used, temporarily or | ||
otherwise, for interfund
borrowing, or be otherwise used or | ||
appropriated, except as expressly authorized
and provided in | ||
Sections 8(c) and 9 of this Act for the purposes and subject to
| ||
the priorities, limitations and conditions provided for | ||
therein until such
obligations, uses and dedications as therein | ||
provided, have been satisfied.
| ||
(c) Notwithstanding Section 5(b) of this Act, any Trust | ||
Fund Moneys
transferred to the Program Administrator pursuant | ||
to Section 8(b) of this Act,
or otherwise obtained, paid to or | ||
held by or for the Program Administrator, or
pledged pursuant | ||
to resolution of the Program Administrator, for Affordable
| ||
Housing Program Trust Fund Bonds or Notes under the Illinois | ||
Housing
Development Act, and all proceeds, payments and | ||
receipts from investments or
use of such moneys, including any | ||
residual or additional funds or moneys
generated or obtained in | ||
connection with any of the foregoing, may be held,
pledged, | ||
applied or dedicated by the Program Administrator as follows:
| ||
(1) as required by the terms of any pledge of or | ||
resolution of the Program
Administrator authorized under | ||
Section 9 of this Act in connection with
Affordable Housing | ||
Program Trust Fund Bonds or Notes issued pursuant to the
|
Illinois Housing Development Act;
| ||
(2) to or for costs of issuance and administration
and | ||
the payments of any principal, interest, premium or other | ||
amounts or
expenses incurred or accrued in connection with | ||
Affordable Housing Program
Trust Fund Bonds or Notes, | ||
including rate protection contracts and credit
support | ||
arrangements pertaining thereto, and, provided such | ||
expenses, fees and
charges are obligations, whether | ||
recourse or nonrecourse, and whether financed
with or paid | ||
from the proceeds of Affordable Housing Program Trust Fund | ||
Bonds
or Notes, of the developers, mortgagors or other | ||
users, the Program
Administrator's expenses and servicing, | ||
administration and origination fees and
charges in | ||
connection with any loans, mortgages, or developments | ||
funded or
financed or expected to be funded or financed, in | ||
whole or in part, from the
issuance of Affordable Housing | ||
Program Trust Fund Bonds or Notes;
| ||
(3) to or for costs of issuance and administration and | ||
the payments of
principal, interest, premium, loan fees, | ||
and other amounts or other obligations
of the Program | ||
Administrator, including rate protection contracts and | ||
credit
support arrangements pertaining thereto, for loans, | ||
commercial paper or other
notes or bonds issued by the | ||
Program Administrator pursuant to the Illinois
Housing | ||
Development Act, provided that the proceeds of such loans, | ||
commercial
paper or other notes or bonds are paid or |
expended in connection with, or
refund or repay, loans, | ||
commercial paper or other notes or bonds issued or made
in | ||
connection with bridge loans or loans for the construction, | ||
renovation,
redevelopment, restructuring, reorganization | ||
of Affordable Housing and related
expenses, including | ||
development costs, technical assistance, or other amounts
| ||
to construct, preserve, improve, renovate, rehabilitate, | ||
refinance, or assist
Affordable Housing, including | ||
financially troubled Affordable Housing,
permanent or | ||
other financing for which has been funded or financed or is
| ||
expected to be funded or financed in whole or in part by | ||
the Program
Administrator through the issuance of or use of | ||
proceeds from Affordable
Housing Program Trust Fund Bonds | ||
or Notes;
| ||
(4) to or for direct expenditures or reimbursement for | ||
development costs,
technical assistance, or other amounts | ||
to construct, preserve, improve,
renovate, rehabilitate, | ||
refinance, or assist Affordable Housing, including
| ||
financially troubled Affordable Housing, permanent or | ||
other financing for which
has been funded or financed or is | ||
expected to be funded or financed in whole or
in part by | ||
the Program Administrator through the issuance of or use of | ||
proceeds
from Affordable Housing Program Trust Fund Bonds | ||
or Notes; and
| ||
(5) for deposit into any residual, sinking, reserve or | ||
revolving fund or
pool established by the Program |
Administrator, whether or not pledged to secure
Affordable | ||
Housing Program Trust Fund Bonds or Notes, to support or be
| ||
utilized for the
issuance, redemption, or payment of the | ||
principal, interest, premium or other
amounts payable on or | ||
with respect to any existing, additional or future
| ||
Affordable Housing Program Trust Fund Bonds or Notes, or to | ||
or for any other
expenditure authorized by this Section | ||
8(c).
| ||
(d) All or a portion of the Trust Fund Moneys on
deposit or | ||
to be
deposited in
the Trust Fund not already certified for | ||
transfer or transferred to the
Program Administrator pursuant | ||
to Section 8(b) of this Act may be used to
secure the repayment | ||
of Affordable Housing Program Trust Fund Bonds or
Notes, or | ||
otherwise to supplement or support Affordable Housing funded or
| ||
financed
or
intended to be funded or financed, in whole or in | ||
part, by Affordable Housing
Program Trust Fund Bonds or Notes.
| ||
(e) Assisted housing may include housing for special needs
| ||
populations
such as the homeless, single-parent families, the | ||
elderly, or the
physically and mentally disabled. The Trust | ||
Fund shall be used to
implement a demonstration congregate | ||
housing project for any such special
needs population.
| ||
(f) Grants from the Trust Fund may include, but are not | ||
limited
to,
rental assistance and security deposit subsidies | ||
for low and very low-income
households.
| ||
(g) The Trust Fund may be used to pay actual and reasonable
| ||
costs for
Commission members to attend Commission meetings, and |
any litigation costs
and expenses, including legal fees, | ||
incurred by the Program Administrator
in any litigation related | ||
to this Act or its action as Program
Administrator.
| ||
(h) The Trust Fund may be used to make grants for (1) the
| ||
provision of
technical assistance, (2) outreach, and (3) | ||
building an organization's
capacity to develop affordable | ||
housing projects.
| ||
(i) Amounts on deposit in the Trust Fund may be used to | ||
reimburse the
Program
Administrator and the Funding Agent for | ||
costs incurred in the performance of
their duties under this | ||
Act, excluding costs and fees of the Program
Administrator | ||
associated with the Program Escrow to the extent withheld
| ||
pursuant to paragraph (8) of subsection (b) of Section 5.
| ||
(Source: P.A. 94-839, eff. 6-6-06.)
| ||
Section 5-40. The Reviewing Court Alternative Dispute | ||
Resolution Act is amended by changing Section 10 as follows: | ||
(710 ILCS 40/10)
| ||
Sec. 10. Reviewing Court Alternative Dispute Resolution | ||
Fund. The Reviewing Court Alternative Dispute Resolution Fund | ||
is created as a special fund in the State Treasury. The Supreme | ||
Court may designate an amount to be included in the filing fees | ||
collected by the clerks of the Appellate Court for the funding | ||
of alternative dispute resolution programs in the reviewing | ||
courts. The portion of the filing fees designated for |
alternative dispute resolution programs in the reviewing | ||
courts shall be remitted within one month after receipt to the | ||
State Treasurer for deposit in the Reviewing Court Alternative | ||
Dispute Resolution Fund. All money in the Reviewing Court | ||
Alternative Dispute Resolution Fund shall be maintained in | ||
separate accounts for each Appellate Court district that has | ||
established approved alternative dispute resolution programs | ||
pursuant to Supreme Court rule and used, subject to | ||
appropriation, by the Supreme Court solely for the purpose of | ||
funding alternative dispute resolution programs in the | ||
reviewing courts. Notwithstanding any other provision of this | ||
Section, the Reviewing Court Alternative Dispute Resolution | ||
Fund may be used for any other purpose authorized by the | ||
Supreme Court. | ||
(Source: P.A. 93-801, eff. 7-22-04.) | ||
Section 5-45. The Pretrial Services Act is amended by | ||
changing Section 33 as follows:
| ||
(725 ILCS 185/33) (from Ch. 38, par. 333)
| ||
Sec. 33. The Supreme Court shall pay from funds | ||
appropriated to it for this purpose
100% of all approved costs | ||
for pretrial services, including pretrial
services officers, | ||
necessary support personnel, travel costs reasonably
related | ||
to the delivery of pretrial services, space costs, equipment,
| ||
telecommunications, postage, commodities, printing and |
contractual
services. Costs shall be reimbursed monthly, based | ||
on a plan and budget
approved by the Supreme Court. No
| ||
department may be reimbursed for costs which exceed or are not | ||
provided for
in the approved plan and budget.
The For State | ||
fiscal years 2004, 2005, and 2006, and 2007 only, the Mandatory | ||
Arbitration Fund may be used
to
reimburse approved costs for | ||
pretrial services.
| ||
(Source: P.A. 93-25, eff. 6-20-03; 93-839, eff. 7-30-04; 94-91, | ||
eff. 7-1-05; 94-839, eff. 6-6-06; revised 8-3-06.)
| ||
Section 5-50. The Probation and Probation Officers Act is | ||
amended by changing Sections 15 and 15.1 as follows:
| ||
(730 ILCS 110/15) (from Ch. 38, par. 204-7)
| ||
Sec. 15. (1) The Supreme Court of Illinois may establish a | ||
Division of
Probation Services whose purpose shall be the | ||
development, establishment,
promulgation, and enforcement of | ||
uniform standards for probation services in
this State, and to | ||
otherwise carry out the intent of this Act. The Division
may:
| ||
(a) establish qualifications for chief probation | ||
officers and other
probation and court services personnel | ||
as to hiring, promotion, and training.
| ||
(b) make available, on a timely basis, lists of those | ||
applicants whose
qualifications meet the regulations | ||
referred to herein, including on said
lists all candidates | ||
found qualified.
|
(c) establish a means of verifying the conditions for | ||
reimbursement
under this Act and develop criteria for | ||
approved costs for reimbursement.
| ||
(d) develop standards and approve employee | ||
compensation schedules for
probation and court services | ||
departments.
| ||
(e) employ sufficient personnel in the Division to | ||
carry out the
functions of the Division.
| ||
(f) establish a system of training and establish | ||
standards for personnel
orientation and training.
| ||
(g) develop standards for a system of record keeping | ||
for cases and
programs, gather statistics, establish a | ||
system of uniform forms, and
develop research for planning | ||
of Probation
Services.
| ||
(h) develop standards to assure adequate support | ||
personnel, office
space, equipment and supplies, travel | ||
expenses, and other essential items
necessary for | ||
Probation and Court Services
Departments to carry out their
| ||
duties.
| ||
(i) review and approve annual plans submitted by
| ||
Probation and Court
Services Departments.
| ||
(j) monitor and evaluate all programs operated by
| ||
Probation and Court
Services Departments, and may include | ||
in the program evaluation criteria
such factors as the | ||
percentage of Probation sentences for felons convicted
of | ||
Probationable offenses.
|
(k) seek the cooperation of local and State government | ||
and private
agencies to improve the quality of probation | ||
and
court services.
| ||
(l) where appropriate, establish programs and | ||
corresponding standards
designed to generally improve the | ||
quality of
probation and court services
and reduce the rate | ||
of adult or juvenile offenders committed to the
Department | ||
of Corrections.
| ||
(m) establish such other standards and regulations and | ||
do all acts
necessary to carry out the intent and purposes | ||
of this Act.
| ||
The Division shall establish a model list of structured | ||
intermediate
sanctions that may be imposed by a probation | ||
agency for violations of terms and
conditions of a sentence of | ||
probation, conditional discharge, or supervision.
| ||
The State of Illinois shall provide for the costs of | ||
personnel, travel,
equipment, telecommunications, postage, | ||
commodities, printing, space,
contractual services and other | ||
related costs necessary to carry out the
intent of this Act.
| ||
(2) (a) The chief judge of each circuit shall provide
| ||
full-time probation services for all counties
within the | ||
circuit, in a
manner consistent with the annual probation plan,
| ||
the standards, policies,
and regulations established by the | ||
Supreme Court. A
probation district of
two or more counties | ||
within a circuit may be created for the purposes of
providing | ||
full-time probation services. Every
county or group of
counties |
within a circuit shall maintain a
probation department which | ||
shall
be under the authority of the Chief Judge of the circuit | ||
or some other
judge designated by the Chief Judge. The Chief | ||
Judge, through the
Probation and Court Services Department | ||
shall
submit annual plans to the
Division for probation and | ||
related services.
| ||
(b) The Chief Judge of each circuit shall appoint the Chief
| ||
Probation
Officer and all other probation officers for his
or | ||
her circuit from lists
of qualified applicants supplied by the | ||
Supreme Court. Candidates for chief
managing officer and other | ||
probation officer
positions must apply with both
the Chief | ||
Judge of the circuit and the Supreme Court.
| ||
(3) A Probation and Court Service Department
shall apply to | ||
the
Supreme Court for funds for basic services, and may apply | ||
for funds for new
and expanded programs or Individualized | ||
Services and Programs. Costs shall
be reimbursed monthly based | ||
on a plan and budget approved by the Supreme
Court. No | ||
Department may be reimbursed for costs which exceed or are not
| ||
provided for in the approved annual plan and budget. After the | ||
effective
date of this amendatory Act of 1985, each county must | ||
provide basic
services in accordance with the annual plan and | ||
standards created by the
division. No department may receive | ||
funds for new or expanded programs or
individualized services | ||
and programs unless they are in compliance with
standards as | ||
enumerated in paragraph (h) of subsection (1) of this Section,
| ||
the annual plan, and standards for basic services.
|
(4) The Division shall reimburse the county or counties for
| ||
probation
services as follows:
| ||
(a) 100% of the salary of all chief managing officers | ||
designated as such
by the Chief Judge and the division.
| ||
(b) 100% of the salary for all probation
officer and | ||
supervisor
positions approved for reimbursement by the | ||
division after April 1, 1984,
to meet workload standards | ||
and to implement intensive sanction and
probation
| ||
supervision
programs and other basic services as defined in | ||
this Act.
| ||
(c) 100% of the salary for all secure detention | ||
personnel and non-secure
group home personnel approved for | ||
reimbursement after December 1, 1990.
For all such | ||
positions approved for reimbursement
before
December 1, | ||
1990, the counties shall be reimbursed $1,250 per month | ||
beginning
July 1, 1995, and an additional $250 per month | ||
beginning each July 1st
thereafter until the positions | ||
receive 100% salary reimbursement.
Allocation of such | ||
positions will be based on comparative need considering
| ||
capacity, staff/resident ratio, physical plant and | ||
program.
| ||
(d) $1,000 per month for salaries for the remaining
| ||
probation officer
positions engaged in basic services and | ||
new or expanded services. All such
positions shall be | ||
approved by the division in accordance with this Act and
| ||
division standards.
|
(e) 100% of the travel expenses in accordance with | ||
Division standards
for all Probation positions approved | ||
under
paragraph (b) of subsection 4
of this Section.
| ||
(f) If the amount of funds reimbursed to the county | ||
under paragraphs
(a) through (e) of subsection 4 of this | ||
Section on an annual basis is less
than the amount the | ||
county had received during the 12 month period
immediately | ||
prior to the effective date of this amendatory Act of 1985,
| ||
then the Division shall reimburse the amount of the | ||
difference to the
county. The effect of paragraph (b) of | ||
subsection 7 of this Section shall
be considered in | ||
implementing this supplemental reimbursement provision.
| ||
(5) The Division shall provide funds beginning on April 1, | ||
1987 for the
counties to provide Individualized Services and | ||
Programs as provided in
Section 16 of this Act.
| ||
(6) A Probation and Court Services Department
in order to | ||
be eligible
for the reimbursement must submit to the Supreme | ||
Court an application
containing such information and in such a | ||
form and by such dates as the
Supreme Court may require. | ||
Departments to be eligible for funding must
satisfy the | ||
following conditions:
| ||
(a) The Department shall have on file with the Supreme
| ||
Court an annual Probation plan for continuing,
improved, | ||
and
new Probation and Court Services Programs
approved by | ||
the Supreme Court or its
designee. This plan shall indicate | ||
the manner in which
Probation and Court
Services will be |
delivered and improved, consistent with the minimum
| ||
standards and regulations for Probation and Court
| ||
Services, as established
by the Supreme Court. In counties | ||
with more than one
Probation and Court
Services Department | ||
eligible to receive funds, all Departments within that
| ||
county must submit plans which are approved by the Supreme | ||
Court.
| ||
(b) The annual probation plan shall seek to
generally | ||
improve the
quality of probation services and to reduce the
| ||
commitment of adult offenders to the Department of | ||
Corrections and to reduce the
commitment of juvenile | ||
offenders to the Department of Juvenile Justice and shall | ||
require, when
appropriate, coordination with the | ||
Department of Corrections, the Department of Juvenile | ||
Justice, and the
Department of Children and Family Services | ||
in the development and use of
community resources, | ||
information systems, case review and permanency
planning | ||
systems to avoid the duplication of services.
| ||
(c) The Department shall be in compliance with | ||
standards developed by the
Supreme Court for basic, new and | ||
expanded services, training, personnel
hiring and | ||
promotion.
| ||
(d) The Department shall in its annual plan indicate | ||
the manner in which
it will support the rights of crime | ||
victims and in which manner it will
implement Article I, | ||
Section 8.1 of the Illinois Constitution and in what
manner |
it will coordinate crime victims' support services with | ||
other criminal
justice agencies within its jurisdiction, | ||
including but not limited to, the
State's Attorney, the | ||
Sheriff and any municipal police department.
| ||
(7) No statement shall be verified by the Supreme Court or | ||
its
designee or vouchered by the Comptroller unless each of the | ||
following
conditions have been met:
| ||
(a) The probation officer is a full-time
employee | ||
appointed by the Chief
Judge to provide probation services.
| ||
(b) The probation officer, in order to be
eligible for | ||
State
reimbursement, is receiving a salary of at least | ||
$17,000 per year.
| ||
(c) The probation officer is appointed or
was | ||
reappointed in accordance
with minimum qualifications or | ||
criteria established by the Supreme
Court; however, all | ||
probation officers appointed
prior to January 1, 1978,
| ||
shall be exempted from the minimum requirements | ||
established by the Supreme
Court. Payments shall be made to | ||
counties employing these exempted
probation officers as | ||
long as they are employed
in the position held on the
| ||
effective date of this amendatory Act of 1985. Promotions | ||
shall be
governed by minimum qualifications established by | ||
the Supreme Court.
| ||
(d) The Department has an established compensation | ||
schedule approved by
the Supreme Court. The compensation | ||
schedule shall include salary ranges
with necessary |
increments to compensate each employee. The increments
| ||
shall, within the salary ranges, be based on such factors | ||
as bona fide
occupational qualifications, performance, and | ||
length of service. Each
position in the Department shall be | ||
placed on the compensation schedule
according to job duties | ||
and responsibilities of such position. The policy
and | ||
procedures of the compensation schedule shall be made | ||
available to each
employee.
| ||
(8) In order to obtain full reimbursement of all approved | ||
costs, each
Department must continue to employ at least the | ||
same number of
probation
officers and probation managers as | ||
were
authorized for employment for the
fiscal year which | ||
includes January 1, 1985. This number shall be designated
as | ||
the base amount of the Department. No positions approved by the | ||
Division
under paragraph (b) of subsection 4 will be included | ||
in the base amount.
In the event that the Department employs | ||
fewer
Probation officers and
Probation managers than the base | ||
amount for a
period of 90 days, funding
received by the | ||
Department under subsection 4 of this
Section may be reduced on | ||
a monthly basis by the amount of the current
salaries of any | ||
positions below the base amount.
| ||
(9) Before the 15th day of each month, the treasurer of any | ||
county which
has a Probation and Court Services Department, or
| ||
the treasurer of the most
populous county, in the case of a | ||
Probation or
Court Services Department
funded by more than one | ||
county, shall submit an itemized statement of all
approved |
costs incurred in the delivery of Basic
Probation and Court
| ||
Services under this Act to the Supreme Court.
The treasurer may | ||
also submit an itemized statement of all approved costs
| ||
incurred in the delivery of new and expanded
Probation and | ||
Court Services
as well as Individualized Services and Programs. | ||
The Supreme Court or
its designee shall verify compliance with | ||
this Section and shall examine
and audit the monthly statement | ||
and, upon finding them to be correct, shall
forward them to the | ||
Comptroller for payment to the county treasurer. In the
case of | ||
payment to a treasurer of a county which is the most populous | ||
of
counties sharing the salary and expenses of a
Probation and | ||
Court Services
Department, the treasurer shall divide the money | ||
between the counties in a
manner that reflects each county's | ||
share of the cost incurred by the
Department.
| ||
(10) The county treasurer must certify that funds received | ||
under this
Section shall be used solely to maintain and improve
| ||
Probation and Court
Services. The county or circuit shall | ||
remain in compliance with all
standards, policies and | ||
regulations established by the Supreme Court.
If at any time | ||
the Supreme Court determines that a county or circuit is not
in | ||
compliance, the Supreme Court shall immediately notify the | ||
Chief Judge,
county board chairman and the Director of Court | ||
Services Chief
Probation Officer. If after 90 days of written
| ||
notice the noncompliance
still exists, the Supreme Court shall | ||
be required to reduce the amount of
monthly reimbursement by | ||
10%. An additional 10% reduction of monthly
reimbursement shall |
occur for each consecutive month of noncompliance.
Except as | ||
provided in subsection 5 of Section 15, funding to counties | ||
shall
commence on April 1, 1986. Funds received under this Act | ||
shall be used to
provide for Probation Department expenses
| ||
including those required under
Section 13 of this Act. The For | ||
State fiscal years 2004, 2005, 2006, and 2007 only, the | ||
Mandatory
Arbitration Fund may be used to provide for Probation | ||
Department expenses,
including those required under Section 13 | ||
of this Act.
| ||
(11) The respective counties shall be responsible for | ||
capital and space
costs, fringe benefits, clerical costs, | ||
equipment, telecommunications,
postage, commodities and | ||
printing.
| ||
(12) For purposes of this Act only, probation officers | ||
shall be
considered
peace officers. In the
exercise of their | ||
official duties, probation
officers, sheriffs, and police
| ||
officers may, anywhere within the State, arrest any probationer | ||
who is in
violation of any of the conditions of his or her | ||
probation, conditional
discharge, or supervision, and it shall | ||
be the
duty of the officer making the arrest to take the | ||
probationer
before the
Court having jurisdiction over the | ||
probationer for further order.
| ||
(Source: P.A. 93-25, eff. 6-20-03; 93-576, eff. 1-1-04; 93-839, | ||
eff. 7-30-04; 94-91, eff. 7-1-05; 94-696, eff. 6-1-06; 94-839, | ||
eff. 6-6-06.)
|
(730 ILCS 110/15.1) (from Ch. 38, par. 204-7.1) | ||
Sec. 15.1. Probation and Court Services Fund.
| ||
(a) The county treasurer in each county shall establish a
| ||
probation and court services fund consisting of fees collected | ||
pursuant to
subsection (i) of Section 5-6-3 and subsection (i) | ||
of Section 5-6-3.1
of the Unified Code of Corrections, | ||
subsection (10) of Section 5-615
and
subsection (5) of Section | ||
5-715 of the Juvenile Court Act of 1987, and
paragraph 14.3 of | ||
subsection (b) of Section 110-10 of the Code of Criminal
| ||
Procedure of 1963.
The
county treasurer shall disburse monies | ||
from the fund only at the direction
of the chief judge of the | ||
circuit court in such circuit where the county is
located. The | ||
county treasurer of each county shall, on or before January
10 | ||
of each year, submit an annual report to the Supreme Court.
| ||
(b) Monies in the probation and court services fund shall | ||
be
appropriated by the county board to be used within the | ||
county or
jurisdiction where
collected in accordance
with | ||
policies and guidelines approved by the Supreme Court for the | ||
costs
of operating the probation and court services department | ||
or departments;
however, except as provided in subparagraph | ||
(g), monies
in the probation and court services fund shall not | ||
be used for the payment
of salaries of probation and court | ||
services personnel.
| ||
(c) Monies expended from the probation and court services | ||
fund shall
be used to supplement, not supplant, county | ||
appropriations for probation
and court services.
|
(d) Interest earned on monies deposited in a probation and | ||
court
services fund may be used by the county for its ordinary | ||
and contingent
expenditures.
| ||
(e) The county board may appropriate moneys from the | ||
probation and court
services fund, upon the direction of the | ||
chief judge, to support programs that
are part of the continuum | ||
of juvenile delinquency intervention programs which
are or may | ||
be developed within the county. The grants from the probation | ||
and
court services fund shall be for no more than one year and | ||
may be used for any
expenses attributable to the program | ||
including administration and oversight of
the program by the | ||
probation department.
| ||
(f) The county board may appropriate moneys from the | ||
probation and court
services fund, upon the direction of the | ||
chief judge, to support practices
endorsed or required under | ||
the Sex Offender Management Board Act, including but
not | ||
limited to sex offender evaluation, treatment, and monitoring | ||
programs that
are or may be developed within the county.
| ||
(g) For the State Fiscal Years 2005, 2006, and 2007
only, | ||
the Administrative Office of the Illinois Courts may permit a | ||
county or circuit to use its probation and court services fund | ||
for the payment of salaries of probation officers and other | ||
court services personnel whose salaries are reimbursed under | ||
this Act if the State's FY2005, FY2006, or FY2007 appropriation | ||
to the Supreme Court for reimbursement to counties for | ||
probation salaries and services is less than the amount |
appropriated to the Supreme Court for these
purposes for State | ||
Fiscal Year 2004. The Administrative Office of the Illinois | ||
Courts shall take into account each county's or circuit's | ||
probation fee collections and expenditures when apportioning | ||
the total reimbursement for each county or circuit.
| ||
(h) The Administrative Office of the Illinois Courts may | ||
permit a county or circuit to use its probation and court | ||
services fund for the payment of salaries of probation officers | ||
and other court services personnel whose salaries are | ||
reimbursed under this Act in any State fiscal year that the | ||
appropriation for reimbursement to counties for probation | ||
salaries and services is less than the amount appropriated to | ||
the Supreme Court for these purposes for State Fiscal Year | ||
2002. The Administrative Office of the Illinois Courts shall | ||
take into account each county's or circuit's probation fee | ||
collections and expenditures when appropriating the total | ||
reimbursement for each county or circuit. Any amount | ||
appropriated to the Supreme Court in any State fiscal year for | ||
the purpose of reimbursing Cook County for the salaries and | ||
operations of the Cook County Juvenile Temporary Detention | ||
Center shall not be counted in the total appropriation to the | ||
Supreme Court in that State fiscal year for reimbursement to | ||
counties for probation salaries and services, for the purposes | ||
of this paragraph (h). | ||
(Source: P.A. 93-616, eff. 1-1-04; 93-839, eff. 7-30-04; 94-91, | ||
eff. 7-1-05; 94-839, eff. 6-6-06.)
|
Section 5-55. The Code of Civil Procedure is amended by | ||
changing Section 2-1009A as follows:
| ||
(735 ILCS 5/2-1009A) (from Ch. 110, par. 2-1009A)
| ||
Sec. 2-1009A. Filing Fees. In each county authorized by the | ||
Supreme
Court to utilize mandatory arbitration, the clerk of | ||
the
circuit court shall charge and collect, in addition to any | ||
other fees, an
arbitration fee of $8, except in counties with | ||
3,000,000 or more inhabitants
the fee shall be $10, at the time | ||
of filing the first pleading, paper
or
other appearance filed | ||
by each party in all civil cases, but no additional
fee shall | ||
be required if more than one party is represented in a single
| ||
pleading, paper or other appearance. Arbitration fees received | ||
by the
clerk of the circuit court pursuant to this Section | ||
shall be remitted within
one month after receipt to the State | ||
Treasurer for deposit into the
Mandatory Arbitration Fund, a | ||
special fund in the State treasury for the
purpose of funding | ||
mandatory arbitration programs and such other alternative
| ||
dispute resolution programs as may be authorized by circuit | ||
court rule for
operation in counties that have implemented | ||
mandatory arbitration, with a
separate account
being | ||
maintained for each county.
Notwithstanding any other | ||
provision of this Section to the contrary, and for
State fiscal
| ||
years 2004, 2005, 2006, and 2007 only, the Mandatory | ||
Arbitration Fund may be used
for any
other purpose authorized |
by the Supreme Court.
| ||
(Source: P.A. 93-25, eff. 6-20-03; 93-839, eff. 7-30-04; 94-91, | ||
eff. 7-1-05; 94-839, eff. 6-6-06.)
| ||
Section 5-60. The Residential Real Property Disclosure Act | ||
is amended by adding Section 80 as follows: | ||
(765 ILCS 77/80 new)
| ||
Sec. 80. Predatory Lending Database Program Fund. The | ||
Predatory Lending Database Program Fund is created as a special | ||
fund in the State treasury. Subject to appropriation, moneys in | ||
the Fund shall be appropriated to the Illinois Housing | ||
Development Authority for the purpose of making grants for | ||
HUD-certified counseling agencies participating in the | ||
Predatory Lending Database Program to assist with | ||
implementation and development of the Predatory Lending | ||
Database Program.
| ||
Section 5-65. The Business Corporation Act of 1983 is | ||
amended by changing Sections 15.90 and 16.05 as follows:
| ||
(805 ILCS 5/15.90) (from Ch. 32, par. 15.90)
| ||
Sec. 15.90. Statute of limitations.
| ||
(a) Except as otherwise provided
in this Section and | ||
notwithstanding anything to the contrary contained in
any other | ||
Section of this Act, no domestic corporation or foreign
|
corporation shall be obligated to pay any annual franchise tax, | ||
fee,
or penalty or interest thereon imposed under this Act, nor | ||
shall any
administrative or judicial sanction
(including | ||
dissolution) be imposed or enforced nor access to the courts of
| ||
this State be denied based upon nonpayment thereof more than 7 | ||
years
after the date of filing the annual report with respect | ||
to the period
during which the obligation for the tax, fee, | ||
penalty or
interest arose, unless (1) within that 7 year period | ||
the Secretary of State
sends a written notice to the | ||
corporation to the effect that (A)
administrative or judicial | ||
action to dissolve the corporation or revoke its
certificate of | ||
authority for nonpayment of a tax, fee, penalty or interest
has | ||
been commenced; or (B) the corporation has submitted a report
| ||
but has
failed to pay a tax, fee, penalty or interest required | ||
to be paid
therewith; or (C) a report with respect to an event | ||
or action giving rise
to an obligation to pay a tax, fee, | ||
penalty or interest is required but has
not been filed, or has | ||
been filed and is in error or incomplete; or (2)
the annual | ||
report by the corporation was filed with fraudulent
intent to | ||
evade taxes payable under this Act. A corporation
nonetheless | ||
shall be required to pay all taxes
that would have been payable | ||
during the most recent 7 year period due to a
previously | ||
unreported increase in paid-in capital that occurred prior to
| ||
that 7 year period and interest and penalties thereon for that | ||
period, except that , from February 1, 2008 through March 15, | ||
2008, with respect to any corporation that participates in the |
Franchise Tax and License Fee Amnesty Act of 2007, the | ||
corporation shall be only required to pay all taxes that would | ||
have been payable during the most recent 4 year period due to a | ||
previously unreported increase in paid-in capital that | ||
occurred prior to that 7 year period.
| ||
(b) If within 2 years following a change in control of a | ||
corporation the
corporation voluntarily pays in good faith all | ||
known obligations of
the corporation imposed by this Article 15 | ||
with respect to reports that
were required to have been filed | ||
since the beginning of the 7 year period
ending on the | ||
effective date of the change in control, no action shall be
| ||
taken to enforce or collect obligations of that corporation | ||
imposed by this
Article 15 with respect to reports that were | ||
required to have been filed
prior to that 7 year period | ||
regardless of whether the limitation period set
forth in | ||
subsection (a) is otherwise applicable. For purposes of this
| ||
subsection (b), a change in control means a transaction, or a | ||
series of
transactions consummated within a period of 180 | ||
consecutive days, as a
result of which a person which owned | ||
less than 10% of the shares having the
power to elect directors | ||
of the corporation acquires shares such that the
person becomes | ||
the holder of 80% or more of the shares having such power.
For | ||
purposes of this subsection (b) a person means any natural | ||
person,
corporation, partnership, trust or other entity | ||
together with all other
persons controlled by, controlling or | ||
under common control with such person.
|
(c) Except as otherwise provided in this Section and | ||
notwithstanding
anything to the contrary contained in any other | ||
Section of this Act, no foreign
corporation that has not | ||
previously obtained a certificate of authority under
this Act | ||
shall, upon voluntary application for a certificate of | ||
authority filed
with the Secretary of State prior to January 1, | ||
2001, be obligated to pay any
tax, fee, penalty, or interest | ||
imposed under this Act, nor shall any
administrative or | ||
judicial sanction be imposed or enforced based upon
nonpayment | ||
thereof with respect to a period during which the obligation | ||
arose
that is prior to January 1, 1993 unless (1) prior to | ||
receipt of the application
for a certificate of authority the | ||
Secretary of State had sent written notice
to
the corporation | ||
regarding its failure to obtain a certificate of authority, (2)
| ||
the corporation had submitted an application for a certificate | ||
of authority
previously but had failed to pay any tax, fee, | ||
penalty or interest to be paid
therewith, or (3) the | ||
application for a certificate of authority was submitted
by
the | ||
corporation with fraudulent intent to evade taxes payable under | ||
this Act.
A
corporation nonetheless shall be required to pay | ||
all taxes and fees due under
this Act that would have been | ||
payable since January 1, 1993 as a result of
commencing the | ||
transaction of its business in this State and interest thereon
| ||
for that period.
| ||
(Source: P.A. 95-233, eff. 8-16-07.)
|
(805 ILCS 5/16.05) (from Ch. 32, par. 16.05)
| ||
Sec. 16.05. Penalties and interest imposed upon | ||
corporations.
| ||
(a) Each
corporation, domestic or foreign, that fails or | ||
refuses to file any annual
report or report of cumulative | ||
changes in paid-in capital and pay any
franchise tax due | ||
pursuant to the report prior to the first day of its
| ||
anniversary month
or, in the case of a corporation which has | ||
established an extended filing
month, the extended filing month | ||
of the corporation
shall pay a penalty of 10% of the amount of | ||
any
delinquent franchise tax due for the report. From February | ||
1, 2008 through March 15, 2008, no No penalty shall be imposed | ||
with respect to any amount of delinquent franchise tax paid | ||
pursuant to the Franchise Tax and License Fee Amnesty Act of | ||
2007.
| ||
(b) Each corporation, domestic or foreign, that fails or | ||
refuses to file
a report of issuance of shares or increase in | ||
paid-in capital within the
time prescribed by this Act is | ||
subject to a penalty on any obligation
occurring prior to | ||
January 1, 1991, and interest on those obligations on or
after | ||
January 1, 1991, for each calendar month or part of month that | ||
it is
delinquent in the amount of 2% 1% of the amount of | ||
license fees and franchise
taxes provided by this Act to be | ||
paid on account of the issuance of shares
or increase in | ||
paid-in capital. From February 1, 2008 through March 15, 2008, | ||
no No penalty shall be imposed, or interest charged, with |
respect to any amount of delinquent license fees and franchise | ||
taxes paid pursuant to the Franchise Tax and License Fee | ||
Amnesty Act of 2007.
| ||
(c) Each corporation, domestic or foreign, that fails or | ||
refuses to file
a
report of cumulative changes in paid-in | ||
capital or report following merger
within the time prescribed | ||
by this Act is subject to interest on or after
January 1, 1992, | ||
for each calendar month or part of month that it is
delinquent, | ||
in the amount of 2% 1% of the amount of franchise taxes | ||
provided
by this Act to be paid on account of the issuance of | ||
shares or increase in
paid-in capital disclosed on the report | ||
of cumulative changes in paid-in
capital or report following | ||
merger, or $1, whichever is greater. From February 1, 2008 | ||
through March 15, 2008, no No interest shall be charged with | ||
respect to any amount of delinquent franchise tax paid pursuant | ||
to the Franchise Tax and License Fee Amnesty Act of 2007.
| ||
(d) If the annual franchise tax, or the supplemental annual | ||
franchise
tax
for any 12-month period commencing July 1, 1968, | ||
or July 1 of any
subsequent year through June 30, 1983, | ||
assessed in accordance with this
Act, is not paid by July 31, | ||
it is delinquent, and there is added a penalty
prior to January | ||
1, 1991, and interest on and after January 1, 1991, of 2% 1%
| ||
for each month or part of month that it is delinquent | ||
commencing with the
month of August, or $1, whichever is | ||
greater. From February 1, 2008 through March 15, 2008, no No | ||
penalty shall be imposed, or interest charged, with respect to |
any amount of delinquent franchise taxes paid pursuant to the | ||
Franchise Tax and License Fee Amnesty Act of 2007.
| ||
(e) If the supplemental annual franchise tax assessed in | ||
accordance with
the provisions of this Act for the 12-month | ||
period commencing July 1,
1967, is not paid by September 30, | ||
1967, it is delinquent, and there is
added a penalty prior to | ||
January 1, 1991, and interest on and after
January 1, 1991, of | ||
2% 1% for each month or part of month that it is
delinquent | ||
commencing with the month of October, 1967. From February 1, | ||
2008 through March 15, 2008, no No penalty shall be imposed, or | ||
interest charged, with respect to any amount of delinquent | ||
franchise taxes paid pursuant to the Franchise Tax and License | ||
Fee Amnesty Act of 2007.
| ||
(f) If any annual franchise tax for any period beginning on | ||
or after
July 1,
1983, is not paid by the time period herein | ||
prescribed, it is delinquent
and there is added a penalty prior | ||
to January 1, 1991, and interest on
and after January 1, 1991, | ||
of 2% 1% for each month or part of a month that
it is delinquent | ||
commencing with the anniversary month or in the case of
a | ||
corporation that has established an extended filing month, the | ||
extended
filing month, or $1, whichever is greater. From | ||
February 1, 2008 through March 15, 2008, no No penalty shall be | ||
imposed, or interest charged, with respect to any amount of | ||
delinquent franchise taxes paid pursuant to the Franchise Tax | ||
and License Fee Amnesty Act of 2007.
| ||
(g) Any corporation, domestic or foreign, failing to pay |
the prescribed
fee for assumed corporate name renewal when due | ||
and payable shall be given
notice of nonpayment by the | ||
Secretary of State by regular mail; and if
the fee together | ||
with a penalty fee of $5 is not paid within
90 days after the | ||
notice is mailed, the right to use the assumed
name shall | ||
cease.
| ||
(h) Any corporation which (i) puts forth any sign or
| ||
advertisement, assuming
any name other than that by which it is | ||
incorporated or otherwise
authorized by law to act or (ii) | ||
violates Section 3.25, shall be guilty of
a Class C misdemeanor | ||
and
shall be deemed guilty of an additional offense for each | ||
day it shall
continue to so offend.
| ||
(i) Each corporation, domestic or foreign, that fails or | ||
refuses (1) to
file in the office of the recorder within the | ||
time prescribed
by this Act any document required by this Act | ||
to be so filed, or (2) to
answer truthfully and fully within | ||
the time prescribed by this Act
interrogatories propounded by | ||
the Secretary of State in accordance with
this Act, or (3) to | ||
perform any other act required by this Act to be
performed by | ||
the corporation, is guilty of a Class C misdemeanor.
| ||
(j) Each corporation that fails or refuses to file articles | ||
of
revocation
of dissolution within the time prescribed by this | ||
Act is subject to a
penalty for each calendar month or part of | ||
the month that it is delinquent
in the amount of $50.
| ||
(Source: P.A. 95-233, eff. 8-16-07.)
|
Section 5-70. The Franchise Tax and License Fee Amnesty Act | ||
of 2007 is amended by changing Section 5-10 and by adding | ||
Section 5-6 as follows: | ||
(805 ILCS 8/5-6 new)
| ||
Sec. 5-6. The Franchise Tax and License Fee Amnesty | ||
Administration Fund. The Franchise Tax and License Fee Amnesty | ||
Administration Fund is created as a special fund in the State | ||
treasury. The Fund shall consist of any fund transfers, fees, | ||
or moneys from other sources received for the purpose of | ||
funding the administration of this Act. All moneys in the | ||
Franchise Tax and License Fee Amnesty Administration Fund shall | ||
be used, subject to appropriation, by the Secretary for any | ||
costs associated with the administration of this Act. | ||
(805 ILCS 8/5-10)
| ||
Sec. 5-10. Amnesty program. The Secretary shall establish | ||
an amnesty program for all taxpayers owing any franchise tax or | ||
license fee imposed by Article XV of the Business Corporation | ||
Act of 1983. The amnesty program shall be for a period from | ||
February 1, 2008 through March 15, 2008. The amnesty program | ||
shall provide that, upon payment by a taxpayer of all franchise | ||
taxes and license fees due from that taxpayer to the State of | ||
Illinois for any taxable period, the Secretary shall abate and | ||
not seek to collect any interest or penalties that may be | ||
applicable, and the Secretary shall not seek civil or criminal |
prosecution for any taxpayer for the period of time for which | ||
amnesty has been granted to the taxpayer. Failure to pay all | ||
taxes due to the State for a taxable period shall not | ||
invalidate any amnesty granted under this Act with respect to | ||
the taxes paid pursuant to the amnesty program. Amnesty shall | ||
be granted only if all amnesty conditions are satisfied by the | ||
taxpayer. Amnesty shall not be granted to taxpayers who are a | ||
party to any criminal investigation or to any civil or criminal | ||
litigation that is pending in any circuit court or appellate | ||
court or the Supreme Court of this State for nonpayment, | ||
delinquency, or fraud in relation to any franchise tax or | ||
license fee imposed by Article XV of the Business Corporation | ||
Act of 1983. Voluntary payments made under this Act shall be | ||
made by cash, check, guaranteed remittance, or ACH debit. The | ||
Secretary shall adopt rules as necessary to implement the | ||
provisions of this Act. Except as otherwise provided in this | ||
Section, all money collected under this Act that would | ||
otherwise be deposited into the General Revenue Fund shall be | ||
deposited into the General Revenue Fund. Two percent of all | ||
money collected under this Act shall be deposited by the State | ||
Treasurer into the Franchise Tax and License Fee Amnesty | ||
Administration Department of Business Services Special | ||
Operations Fund and, subject to appropriation, shall be used by | ||
the Secretary to cover costs associated with the administration | ||
of this Act.
| ||
(Source: P.A. 95-233, eff. 8-16-07.)
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ARTICLE 99. EFFECTIVE DATE.
| ||
Section 99-99. Effective date. This Act takes effect upon | ||
becoming law. |