Bill Text: IL HB0158 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the Illinois Income Tax Act. Provides that, from February 1, 2020 through January 31, 2021, the amount transferred from the General Revenue Fund to the Local Government Distributive Fund shall be: (i) 8.5% of the net revenue realized from the tax imposed on individuals, trusts, and estates, and (ii) 9.355% of the net revenue realized from the tax imposed on corporations. Provides that, from February 1, 2021 through January 31, 2022, the amount transferred from the General Revenue Fund to the Local Government Distributive Fund shall be: (i) 9% of the net revenue realized from the tax imposed on individuals, trusts, and estates, and (ii) 9.57% of the net revenue realized from the tax imposed on corporations. Provides that, from February 1, 2022 through January 31, 2023, the amount transferred from the General Revenue Fund to the Local Government Distributive Fund shall be: (i) 9.5% of the net revenue realized from the tax imposed on individuals, trusts, and estates, and (ii) 9.785% of the net revenue realized from the tax imposed on corporations. Provides that, beginning on February 1, 2023, the Treasurer shall transfer each month from the General Revenue Fund to the Local Government Distributive Fund an amount equal to 10% of the net revenue realized from the tax imposed on individuals, trusts, estates, and corporations during the preceding month. Effective immediately.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2019-02-19 - Added Chief Co-Sponsor Rep. Debbie Meyers-Martin [HB0158 Detail]

Download: Illinois-2019-HB0158-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0158

Introduced , by Rep. Anthony DeLuca

SYNOPSIS AS INTRODUCED:
35 ILCS 5/901 from Ch. 120, par. 9-901

Amends the Illinois Income Tax Act. Provides that, from February 1, 2020 through January 31, 2021, the amount transferred from the General Revenue Fund to the Local Government Distributive Fund shall be: (i) 8.5% of the net revenue realized from the tax imposed on individuals, trusts, and estates, and (ii) 9.355% of the net revenue realized from the tax imposed on corporations. Provides that, from February 1, 2021 through January 31, 2022, the amount transferred from the General Revenue Fund to the Local Government Distributive Fund shall be: (i) 9% of the net revenue realized from the tax imposed on individuals, trusts, and estates, and (ii) 9.57% of the net revenue realized from the tax imposed on corporations. Provides that, from February 1, 2022 through January 31, 2023, the amount transferred from the General Revenue Fund to the Local Government Distributive Fund shall be: (i) 9.5% of the net revenue realized from the tax imposed on individuals, trusts, and estates, and (ii) 9.785% of the net revenue realized from the tax imposed on corporations. Provides that, beginning on February 1, 2023, the Treasurer shall transfer each month from the General Revenue Fund to the Local Government Distributive Fund an amount equal to 10% of the net revenue realized from the tax imposed on individuals, trusts, estates, and corporations during the preceding month. Effective immediately.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Income Tax Act is amended by
5changing Section 901 as follows:
6 (35 ILCS 5/901) (from Ch. 120, par. 9-901)
7 Sec. 901. Collection authority.
8 (a) In general. The Department shall collect the taxes
9imposed by this Act. The Department shall collect certified
10past due child support amounts under Section 2505-650 of the
11Department of Revenue Law of the Civil Administrative Code of
12Illinois. Except as provided in subsections (b), (c), (e), (f),
13(g), and (h) of this Section, money collected pursuant to
14subsections (a) and (b) of Section 201 of this Act shall be
15paid into the General Revenue Fund in the State treasury; money
16collected pursuant to subsections (c) and (d) of Section 201 of
17this Act shall be paid into the Personal Property Tax
18Replacement Fund, a special fund in the State Treasury; and
19money collected under Section 2505-650 of the Department of
20Revenue Law of the Civil Administrative Code of Illinois shall
21be paid into the Child Support Enforcement Trust Fund, a
22special fund outside the State Treasury, or to the State
23Disbursement Unit established under Section 10-26 of the

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1Illinois Public Aid Code, as directed by the Department of
2Healthcare and Family Services.
3 (b) Local Government Distributive Fund. Beginning August
41, 1969, and continuing through June 30, 1994, the Treasurer
5shall transfer each month from the General Revenue Fund to a
6special fund in the State treasury, to be known as the "Local
7Government Distributive Fund", an amount equal to 1/12 of the
8net revenue realized from the tax imposed by subsections (a)
9and (b) of Section 201 of this Act during the preceding month.
10Beginning July 1, 1994, and continuing through June 30, 1995,
11the Treasurer shall transfer each month from the General
12Revenue Fund to the Local Government Distributive Fund an
13amount equal to 1/11 of the net revenue realized from the tax
14imposed by subsections (a) and (b) of Section 201 of this Act
15during the preceding month. Beginning July 1, 1995 and
16continuing through January 31, 2011, the Treasurer shall
17transfer each month from the General Revenue Fund to the Local
18Government Distributive Fund an amount equal to the net of (i)
191/10 of the net revenue realized from the tax imposed by
20subsections (a) and (b) of Section 201 of the Illinois Income
21Tax Act during the preceding month (ii) minus, beginning July
221, 2003 and ending June 30, 2004, $6,666,666, and beginning
23July 1, 2004, zero. Beginning February 1, 2011, and continuing
24through January 31, 2015, the Treasurer shall transfer each
25month from the General Revenue Fund to the Local Government
26Distributive Fund an amount equal to the sum of (i) 6% (10% of

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1the ratio of the 3% individual income tax rate prior to 2011 to
2the 5% individual income tax rate after 2010) of the net
3revenue realized from the tax imposed by subsections (a) and
4(b) of Section 201 of this Act upon individuals, trusts, and
5estates during the preceding month and (ii) 6.86% (10% of the
6ratio of the 4.8% corporate income tax rate prior to 2011 to
7the 7% corporate income tax rate after 2010) of the net revenue
8realized from the tax imposed by subsections (a) and (b) of
9Section 201 of this Act upon corporations during the preceding
10month. Beginning February 1, 2015 and continuing through July
1131, 2017, the Treasurer shall transfer each month from the
12General Revenue Fund to the Local Government Distributive Fund
13an amount equal to the sum of (i) 8% (10% of the ratio of the 3%
14individual income tax rate prior to 2011 to the 3.75%
15individual income tax rate after 2014) of the net revenue
16realized from the tax imposed by subsections (a) and (b) of
17Section 201 of this Act upon individuals, trusts, and estates
18during the preceding month and (ii) 9.14% (10% of the ratio of
19the 4.8% corporate income tax rate prior to 2011 to the 5.25%
20corporate income tax rate after 2014) of the net revenue
21realized from the tax imposed by subsections (a) and (b) of
22Section 201 of this Act upon corporations during the preceding
23month. Beginning August 1, 2017 and continuing through January
2431, 2020, the Treasurer shall transfer each month from the
25General Revenue Fund to the Local Government Distributive Fund
26an amount equal to the sum of (i) 6.06% (10% of the ratio of the

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13% individual income tax rate prior to 2011 to the 4.95%
2individual income tax rate after July 1, 2017) of the net
3revenue realized from the tax imposed by subsections (a) and
4(b) of Section 201 of this Act upon individuals, trusts, and
5estates during the preceding month and (ii) 6.85% (10% of the
6ratio of the 4.8% corporate income tax rate prior to 2011 to
7the 7% corporate income tax rate after July 1, 2017) of the net
8revenue realized from the tax imposed by subsections (a) and
9(b) of Section 201 of this Act upon corporations during the
10preceding month. Beginning February 1, 2020 and continuing
11through January 31, 2021, the Treasurer shall transfer each
12month from the General Revenue Fund to the Local Government
13Distributive Fund an amount equal to the sum of (i) 8.5% of the
14net revenue realized from the tax imposed by subsections (a)
15and (b) of Section 201 of this Act upon individuals, trusts,
16and estates during the preceding month and (ii) 9.355% of the
17net revenue realized from the tax imposed by subsections (a)
18and (b) of Section 201 of this Act upon corporations during the
19preceding month. Beginning February 1, 2021 and continuing
20through January 31, 2022, the Treasurer shall transfer each
21month from the General Revenue Fund to the Local Government
22Distributive Fund an amount equal to the sum of (i) 9% of the
23net revenue realized from the tax imposed by subsections (a)
24and (b) of Section 201 of this Act upon individuals, trusts,
25and estates during the preceding month and (ii) 9.57% of the
26net revenue realized from the tax imposed by subsections (a)

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1and (b) of Section 201 of this Act upon corporations during the
2preceding month. Beginning February 1, 2022 and continuing
3through January 31, 2023, the Treasurer shall transfer each
4month from the General Revenue Fund to the Local Government
5Distributive Fund an amount equal to the sum of (i) 9.5% of the
6net revenue realized from the tax imposed by subsections (a)
7and (b) of Section 201 of this Act upon individuals, trusts,
8and estates during the preceding month and (ii) 9.785% of the
9net revenue realized from the tax imposed by subsections (a)
10and (b) of Section 201 of this Act upon corporations during the
11preceding month. Beginning on February 1, 2023, the Treasurer
12shall transfer each month from the General Revenue Fund to the
13Local Government Distributive Fund an amount equal to 10% of
14the net revenue realized from the tax imposed on individuals,
15trusts, estates, and corporations by subsections (a) and (b) of
16Section 201 of the Illinois Income Tax Act during the preceding
17month. Net revenue realized for a month shall be defined as the
18revenue from the tax imposed by subsections (a) and (b) of
19Section 201 of this Act which is deposited in the General
20Revenue Fund, the Education Assistance Fund, the Income Tax
21Surcharge Local Government Distributive Fund, the Fund for the
22Advancement of Education, and the Commitment to Human Services
23Fund during the month minus the amount paid out of the General
24Revenue Fund in State warrants during that same month as
25refunds to taxpayers for overpayment of liability under the tax
26imposed by subsections (a) and (b) of Section 201 of this Act.

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1 Notwithstanding any provision of law to the contrary,
2beginning on July 6, 2017 (the effective date of Public Act
3100-23), those amounts required under this subsection (b) to be
4transferred by the Treasurer into the Local Government
5Distributive Fund from the General Revenue Fund shall be
6directly deposited into the Local Government Distributive Fund
7as the revenue is realized from the tax imposed by subsections
8(a) and (b) of Section 201 of this Act.
9 For State fiscal year 2018 only, notwithstanding any
10provision of law to the contrary, the total amount of revenue
11and deposits under this Section attributable to revenues
12realized during State fiscal year 2018 shall be reduced by 10%.
13 For State fiscal year 2019 only, notwithstanding any
14provision of law to the contrary, the total amount of revenue
15and deposits under this Section attributable to revenues
16realized during State fiscal year 2019 shall be reduced by 5%.
17 (c) Deposits Into Income Tax Refund Fund.
18 (1) Beginning on January 1, 1989 and thereafter, the
19 Department shall deposit a percentage of the amounts
20 collected pursuant to subsections (a) and (b)(1), (2), and
21 (3) of Section 201 of this Act into a fund in the State
22 treasury known as the Income Tax Refund Fund. The
23 Department shall deposit 6% of such amounts during the
24 period beginning January 1, 1989 and ending on June 30,
25 1989. Beginning with State fiscal year 1990 and for each
26 fiscal year thereafter, the percentage deposited into the

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1 Income Tax Refund Fund during a fiscal year shall be the
2 Annual Percentage. For fiscal years 1999 through 2001, the
3 Annual Percentage shall be 7.1%. For fiscal year 2003, the
4 Annual Percentage shall be 8%. For fiscal year 2004, the
5 Annual Percentage shall be 11.7%. Upon the effective date
6 of Public Act 93-839 (July 30, 2004), the Annual Percentage
7 shall be 10% for fiscal year 2005. For fiscal year 2006,
8 the Annual Percentage shall be 9.75%. For fiscal year 2007,
9 the Annual Percentage shall be 9.75%. For fiscal year 2008,
10 the Annual Percentage shall be 7.75%. For fiscal year 2009,
11 the Annual Percentage shall be 9.75%. For fiscal year 2010,
12 the Annual Percentage shall be 9.75%. For fiscal year 2011,
13 the Annual Percentage shall be 8.75%. For fiscal year 2012,
14 the Annual Percentage shall be 8.75%. For fiscal year 2013,
15 the Annual Percentage shall be 9.75%. For fiscal year 2014,
16 the Annual Percentage shall be 9.5%. For fiscal year 2015,
17 the Annual Percentage shall be 10%. For fiscal year 2018,
18 the Annual Percentage shall be 9.8%. For fiscal year 2019,
19 the Annual Percentage shall be 9.7%. For all other fiscal
20 years, the Annual Percentage shall be calculated as a
21 fraction, the numerator of which shall be the amount of
22 refunds approved for payment by the Department during the
23 preceding fiscal year as a result of overpayment of tax
24 liability under subsections (a) and (b)(1), (2), and (3) of
25 Section 201 of this Act plus the amount of such refunds
26 remaining approved but unpaid at the end of the preceding

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1 fiscal year, minus the amounts transferred into the Income
2 Tax Refund Fund from the Tobacco Settlement Recovery Fund,
3 and the denominator of which shall be the amounts which
4 will be collected pursuant to subsections (a) and (b)(1),
5 (2), and (3) of Section 201 of this Act during the
6 preceding fiscal year; except that in State fiscal year
7 2002, the Annual Percentage shall in no event exceed 7.6%.
8 The Director of Revenue shall certify the Annual Percentage
9 to the Comptroller on the last business day of the fiscal
10 year immediately preceding the fiscal year for which it is
11 to be effective.
12 (2) Beginning on January 1, 1989 and thereafter, the
13 Department shall deposit a percentage of the amounts
14 collected pursuant to subsections (a) and (b)(6), (7), and
15 (8), (c) and (d) of Section 201 of this Act into a fund in
16 the State treasury known as the Income Tax Refund Fund. The
17 Department shall deposit 18% of such amounts during the
18 period beginning January 1, 1989 and ending on June 30,
19 1989. Beginning with State fiscal year 1990 and for each
20 fiscal year thereafter, the percentage deposited into the
21 Income Tax Refund Fund during a fiscal year shall be the
22 Annual Percentage. For fiscal years 1999, 2000, and 2001,
23 the Annual Percentage shall be 19%. For fiscal year 2003,
24 the Annual Percentage shall be 27%. For fiscal year 2004,
25 the Annual Percentage shall be 32%. Upon the effective date
26 of Public Act 93-839 (July 30, 2004), the Annual Percentage

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1 shall be 24% for fiscal year 2005. For fiscal year 2006,
2 the Annual Percentage shall be 20%. For fiscal year 2007,
3 the Annual Percentage shall be 17.5%. For fiscal year 2008,
4 the Annual Percentage shall be 15.5%. For fiscal year 2009,
5 the Annual Percentage shall be 17.5%. For fiscal year 2010,
6 the Annual Percentage shall be 17.5%. For fiscal year 2011,
7 the Annual Percentage shall be 17.5%. For fiscal year 2012,
8 the Annual Percentage shall be 17.5%. For fiscal year 2013,
9 the Annual Percentage shall be 14%. For fiscal year 2014,
10 the Annual Percentage shall be 13.4%. For fiscal year 2015,
11 the Annual Percentage shall be 14%. For fiscal year 2018,
12 the Annual Percentage shall be 17.5%. For fiscal year 2019,
13 the Annual Percentage shall be 15.5%. For all other fiscal
14 years, the Annual Percentage shall be calculated as a
15 fraction, the numerator of which shall be the amount of
16 refunds approved for payment by the Department during the
17 preceding fiscal year as a result of overpayment of tax
18 liability under subsections (a) and (b)(6), (7), and (8),
19 (c) and (d) of Section 201 of this Act plus the amount of
20 such refunds remaining approved but unpaid at the end of
21 the preceding fiscal year, and the denominator of which
22 shall be the amounts which will be collected pursuant to
23 subsections (a) and (b)(6), (7), and (8), (c) and (d) of
24 Section 201 of this Act during the preceding fiscal year;
25 except that in State fiscal year 2002, the Annual
26 Percentage shall in no event exceed 23%. The Director of

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1 Revenue shall certify the Annual Percentage to the
2 Comptroller on the last business day of the fiscal year
3 immediately preceding the fiscal year for which it is to be
4 effective.
5 (3) The Comptroller shall order transferred and the
6 Treasurer shall transfer from the Tobacco Settlement
7 Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
8 in January, 2001, (ii) $35,000,000 in January, 2002, and
9 (iii) $35,000,000 in January, 2003.
10 (d) Expenditures from Income Tax Refund Fund.
11 (1) Beginning January 1, 1989, money in the Income Tax
12 Refund Fund shall be expended exclusively for the purpose
13 of paying refunds resulting from overpayment of tax
14 liability under Section 201 of this Act and for making
15 transfers pursuant to this subsection (d).
16 (2) The Director shall order payment of refunds
17 resulting from overpayment of tax liability under Section
18 201 of this Act from the Income Tax Refund Fund only to the
19 extent that amounts collected pursuant to Section 201 of
20 this Act and transfers pursuant to this subsection (d) and
21 item (3) of subsection (c) have been deposited and retained
22 in the Fund.
23 (3) As soon as possible after the end of each fiscal
24 year, the Director shall order transferred and the State
25 Treasurer and State Comptroller shall transfer from the
26 Income Tax Refund Fund to the Personal Property Tax

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1 Replacement Fund an amount, certified by the Director to
2 the Comptroller, equal to the excess of the amount
3 collected pursuant to subsections (c) and (d) of Section
4 201 of this Act deposited into the Income Tax Refund Fund
5 during the fiscal year over the amount of refunds resulting
6 from overpayment of tax liability under subsections (c) and
7 (d) of Section 201 of this Act paid from the Income Tax
8 Refund Fund during the fiscal year.
9 (4) As soon as possible after the end of each fiscal
10 year, the Director shall order transferred and the State
11 Treasurer and State Comptroller shall transfer from the
12 Personal Property Tax Replacement Fund to the Income Tax
13 Refund Fund an amount, certified by the Director to the
14 Comptroller, equal to the excess of the amount of refunds
15 resulting from overpayment of tax liability under
16 subsections (c) and (d) of Section 201 of this Act paid
17 from the Income Tax Refund Fund during the fiscal year over
18 the amount collected pursuant to subsections (c) and (d) of
19 Section 201 of this Act deposited into the Income Tax
20 Refund Fund during the fiscal year.
21 (4.5) As soon as possible after the end of fiscal year
22 1999 and of each fiscal year thereafter, the Director shall
23 order transferred and the State Treasurer and State
24 Comptroller shall transfer from the Income Tax Refund Fund
25 to the General Revenue Fund any surplus remaining in the
26 Income Tax Refund Fund as of the end of such fiscal year;

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1 excluding for fiscal years 2000, 2001, and 2002 amounts
2 attributable to transfers under item (3) of subsection (c)
3 less refunds resulting from the earned income tax credit.
4 (5) This Act shall constitute an irrevocable and
5 continuing appropriation from the Income Tax Refund Fund
6 for the purpose of paying refunds upon the order of the
7 Director in accordance with the provisions of this Section.
8 (e) Deposits into the Education Assistance Fund and the
9Income Tax Surcharge Local Government Distributive Fund. On
10July 1, 1991, and thereafter, of the amounts collected pursuant
11to subsections (a) and (b) of Section 201 of this Act, minus
12deposits into the Income Tax Refund Fund, the Department shall
13deposit 7.3% into the Education Assistance Fund in the State
14Treasury. Beginning July 1, 1991, and continuing through
15January 31, 1993, of the amounts collected pursuant to
16subsections (a) and (b) of Section 201 of the Illinois Income
17Tax Act, minus deposits into the Income Tax Refund Fund, the
18Department shall deposit 3.0% into the Income Tax Surcharge
19Local Government Distributive Fund in the State Treasury.
20Beginning February 1, 1993 and continuing through June 30,
211993, of the amounts collected pursuant to subsections (a) and
22(b) of Section 201 of the Illinois Income Tax Act, minus
23deposits into the Income Tax Refund Fund, the Department shall
24deposit 4.4% into the Income Tax Surcharge Local Government
25Distributive Fund in the State Treasury. Beginning July 1,
261993, and continuing through June 30, 1994, of the amounts

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1collected under subsections (a) and (b) of Section 201 of this
2Act, minus deposits into the Income Tax Refund Fund, the
3Department shall deposit 1.475% into the Income Tax Surcharge
4Local Government Distributive Fund in the State Treasury.
5 (f) Deposits into the Fund for the Advancement of
6Education. Beginning February 1, 2015, the Department shall
7deposit the following portions of the revenue realized from the
8tax imposed upon individuals, trusts, and estates by
9subsections (a) and (b) of Section 201 of this Act during the
10preceding month, minus deposits into the Income Tax Refund
11Fund, into the Fund for the Advancement of Education:
12 (1) beginning February 1, 2015, and prior to February
13 1, 2025, 1/30; and
14 (2) beginning February 1, 2025, 1/26.
15 If the rate of tax imposed by subsection (a) and (b) of
16Section 201 is reduced pursuant to Section 201.5 of this Act,
17the Department shall not make the deposits required by this
18subsection (f) on or after the effective date of the reduction.
19 (g) Deposits into the Commitment to Human Services Fund.
20Beginning February 1, 2015, the Department shall deposit the
21following portions of the revenue realized from the tax imposed
22upon individuals, trusts, and estates by subsections (a) and
23(b) of Section 201 of this Act during the preceding month,
24minus deposits into the Income Tax Refund Fund, into the
25Commitment to Human Services Fund:
26 (1) beginning February 1, 2015, and prior to February

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1 1, 2025, 1/30; and
2 (2) beginning February 1, 2025, 1/26.
3 If the rate of tax imposed by subsection (a) and (b) of
4Section 201 is reduced pursuant to Section 201.5 of this Act,
5the Department shall not make the deposits required by this
6subsection (g) on or after the effective date of the reduction.
7 (h) Deposits into the Tax Compliance and Administration
8Fund. Beginning on the first day of the first calendar month to
9occur on or after August 26, 2014 (the effective date of Public
10Act 98-1098), each month the Department shall pay into the Tax
11Compliance and Administration Fund, to be used, subject to
12appropriation, to fund additional auditors and compliance
13personnel at the Department, an amount equal to 1/12 of 5% of
14the cash receipts collected during the preceding fiscal year by
15the Audit Bureau of the Department from the tax imposed by
16subsections (a), (b), (c), and (d) of Section 201 of this Act,
17net of deposits into the Income Tax Refund Fund made from those
18cash receipts.
19(Source: P.A. 99-78, eff. 7-20-15; 100-22, eff. 7-6-17; 100-23,
20eff. 7-6-17; 100-587, eff. 6-4-18; 100-621, eff. 7-20-18;
21100-863, eff. 8-14-18; revised 10-12-18.)
22 Section 99. Effective date. This Act takes effect upon
23becoming law.
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