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

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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: Moderate Partisan Bill (Democrat 7-1)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB0158 Detail]

Download: Illinois-2019-HB0158-Engrossed.html

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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by
changing Section 901 as follows:
(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 of the Civil Administrative Code of
Illinois. Except as provided in subsections (b), (c), (e), (f),
(g), and (h) 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 of the Civil Administrative Code of Illinois 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

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Illinois Public Aid Code, as directed by the Department of
Healthcare and Family Services.
(b) Local Government 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 and
continuing through January 31, 2011, 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. Beginning February 1, 2011, and continuing
through January 31, 2015, the Treasurer shall transfer each
month from the General Revenue Fund to the Local Government
Distributive Fund an amount equal to the sum of (i) 6% (10% of

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the ratio of the 3% individual income tax rate prior to 2011 to
the 5% individual income tax rate after 2010) of the net
revenue realized from the tax imposed by subsections (a) and
(b) of Section 201 of this Act upon individuals, trusts, and
estates during the preceding month and (ii) 6.86% (10% of the
ratio of the 4.8% corporate income tax rate prior to 2011 to
the 7% corporate income tax rate after 2010) of the net revenue
realized from the tax imposed by subsections (a) and (b) of
Section 201 of this Act upon corporations during the preceding
month. Beginning February 1, 2015 and continuing through July
31, 2017, the Treasurer shall transfer each month from the
General Revenue Fund to the Local Government Distributive Fund
an amount equal to the sum of (i) 8% (10% of the ratio of the 3%
individual income tax rate prior to 2011 to the 3.75%
individual income tax rate after 2014) of the net revenue
realized from the tax imposed by subsections (a) and (b) of
Section 201 of this Act upon individuals, trusts, and estates
during the preceding month and (ii) 9.14% (10% of the ratio of
the 4.8% corporate income tax rate prior to 2011 to the 5.25%
corporate income tax rate after 2014) of the net revenue
realized from the tax imposed by subsections (a) and (b) of
Section 201 of this Act upon corporations during the preceding
month. Beginning August 1, 2017 and continuing through January
31, 2020, the Treasurer shall transfer each month from the
General Revenue Fund to the Local Government Distributive Fund
an amount equal to the sum of (i) 6.06% (10% of the ratio of the

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3% individual income tax rate prior to 2011 to the 4.95%
individual income tax rate after July 1, 2017) of the net
revenue realized from the tax imposed by subsections (a) and
(b) of Section 201 of this Act upon individuals, trusts, and
estates during the preceding month and (ii) 6.85% (10% of the
ratio of the 4.8% corporate income tax rate prior to 2011 to
the 7% corporate income tax rate after July 1, 2017) of the net
revenue realized from the tax imposed by subsections (a) and
(b) of Section 201 of this Act upon corporations during the
preceding month. Beginning February 1, 2020 and continuing
through January 31, 2021, the Treasurer shall transfer each
month from the General Revenue Fund to the Local Government
Distributive Fund an amount equal to the sum of (i) 8.5% of the
net revenue realized from the tax imposed by subsections (a)
and (b) of Section 201 of this Act upon individuals, trusts,
and estates during the preceding month and (ii) 9.355% of the
net revenue realized from the tax imposed by subsections (a)
and (b) of Section 201 of this Act upon corporations during the
preceding month. Beginning February 1, 2021 and continuing
through January 31, 2022, the Treasurer shall transfer each
month from the General Revenue Fund to the Local Government
Distributive Fund an amount equal to the sum of (i) 9% of the
net revenue realized from the tax imposed by subsections (a)
and (b) of Section 201 of this Act upon individuals, trusts,
and estates during the preceding month and (ii) 9.57% of the
net revenue realized from the tax imposed by subsections (a)

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and (b) of Section 201 of this Act upon corporations during the
preceding month. Beginning February 1, 2022 and continuing
through January 31, 2023, the Treasurer shall transfer each
month from the General Revenue Fund to the Local Government
Distributive Fund an amount equal to the sum of (i) 9.5% of the
net revenue realized from the tax imposed by subsections (a)
and (b) of Section 201 of this Act upon individuals, trusts,
and estates during the preceding month and (ii) 9.785% of the
net revenue realized from the tax imposed by subsections (a)
and (b) of Section 201 of this Act upon corporations during the
preceding month. 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 by subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act during the preceding
month. 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 Education Assistance Fund, the Income Tax
Surcharge Local Government Distributive Fund, the Fund for the
Advancement of Education, and the Commitment to Human Services
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.

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Notwithstanding any provision of law to the contrary,
beginning on July 6, 2017 (the effective date of Public Act
100-23), those amounts required under this subsection (b) to be
transferred by the Treasurer into the Local Government
Distributive Fund from the General Revenue Fund shall be
directly deposited into the Local Government Distributive Fund
as the revenue is realized from the tax imposed by subsections
(a) and (b) of Section 201 of this Act.
For State fiscal year 2018 only, notwithstanding any
provision of law to the contrary, the total amount of revenue
and deposits under this Section attributable to revenues
realized during State fiscal year 2018 shall be reduced by 10%.
For State fiscal year 2019 only, notwithstanding any
provision of law to the contrary, the total amount of revenue
and deposits under this Section attributable to revenues
realized during State fiscal year 2019 shall be reduced by 5%.
(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

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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 Public Act 93-839 (July 30, 2004), 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 fiscal year 2009,
the Annual Percentage shall be 9.75%. For fiscal year 2010,
the Annual Percentage shall be 9.75%. For fiscal year 2011,
the Annual Percentage shall be 8.75%. For fiscal year 2012,
the Annual Percentage shall be 8.75%. For fiscal year 2013,
the Annual Percentage shall be 9.75%. For fiscal year 2014,
the Annual Percentage shall be 9.5%. For fiscal year 2015,
the Annual Percentage shall be 10%. For fiscal year 2018,
the Annual Percentage shall be 9.8%. For fiscal year 2019,
the Annual Percentage shall be 9.7%. 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

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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 Public Act 93-839 (July 30, 2004), the Annual Percentage

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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 fiscal year 2009,
the Annual Percentage shall be 17.5%. For fiscal year 2010,
the Annual Percentage shall be 17.5%. For fiscal year 2011,
the Annual Percentage shall be 17.5%. For fiscal year 2012,
the Annual Percentage shall be 17.5%. For fiscal year 2013,
the Annual Percentage shall be 14%. For fiscal year 2014,
the Annual Percentage shall be 13.4%. For fiscal year 2015,
the Annual Percentage shall be 14%. For fiscal year 2018,
the Annual Percentage shall be 17.5%. For fiscal year 2019,
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

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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 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

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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;

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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

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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.
(f) Deposits into the Fund for the Advancement of
Education. Beginning February 1, 2015, the Department shall
deposit the following portions of the revenue realized from the
tax imposed upon individuals, trusts, and estates by
subsections (a) and (b) of Section 201 of this Act during the
preceding month, minus deposits into the Income Tax Refund
Fund, into the Fund for the Advancement of Education:
(1) beginning February 1, 2015, and prior to February
1, 2025, 1/30; and
(2) beginning February 1, 2025, 1/26.
If the rate of tax imposed by subsection (a) and (b) of
Section 201 is reduced pursuant to Section 201.5 of this Act,
the Department shall not make the deposits required by this
subsection (f) on or after the effective date of the reduction.
(g) Deposits into the Commitment to Human Services Fund.
Beginning February 1, 2015, the Department shall deposit the
following portions of the revenue realized from the tax imposed
upon individuals, trusts, and estates by subsections (a) and
(b) of Section 201 of this Act during the preceding month,
minus deposits into the Income Tax Refund Fund, into the
Commitment to Human Services Fund:
(1) beginning February 1, 2015, and prior to February

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