Bill Text: IL HB0278 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Illinois Income Tax Act. Provides that, from February 1, 2017 through January 31, 2018, 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, 2018 through January 31, 2019, 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, 2019 through January 31, 2020, 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, 2020, 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 35-0)

Status: (Engrossed) 2017-03-08 - Referred to Assignments [HB0278 Detail]

Download: Illinois-2017-HB0278-Engrossed.html



HB0278 EngrossedLRB100 04685 HLH 14691 b
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.
9 The Department shall collect the taxes imposed by this Act.
10The Department shall collect certified past due child support
11amounts under Section 2505-650 of the Department of Revenue Law
12(20 ILCS 2505/2505-650). Except as provided in subsections (c),
13(e), (f), (g), and (h) of this Section, money collected
14pursuant to subsections (a) and (b) of Section 201 of this Act
15shall be paid into the General Revenue Fund in the State
16treasury; money collected pursuant to subsections (c) and (d)
17of Section 201 of this Act shall be paid into the Personal
18Property Tax Replacement Fund, a special fund in the State
19Treasury; and money collected under Section 2505-650 of the
20Department of Revenue Law (20 ILCS 2505/2505-650) shall be paid
21into the Child Support Enforcement Trust Fund, a special fund
22outside the State Treasury, or to the State Disbursement Unit
23established under Section 10-26 of the Illinois Public Aid

HB0278 Engrossed- 2 -LRB100 04685 HLH 14691 b
1Code, as directed by the Department of Healthcare and Family
2Services.
3 (b) Local Government Distributive Fund.
4 Beginning August 1, 1969, and continuing through June 30,
51994, the Treasurer shall transfer each month from the General
6Revenue Fund to a special fund in the State treasury, to be
7known as the "Local Government Distributive Fund", an amount
8equal to 1/12 of the net revenue realized from the tax imposed
9by subsections (a) and (b) of Section 201 of this Act during
10the preceding month. Beginning July 1, 1994, and continuing
11through June 30, 1995, the Treasurer shall transfer each month
12from the General Revenue Fund to the Local Government
13Distributive Fund an amount equal to 1/11 of the net revenue
14realized from the tax imposed by subsections (a) and (b) of
15Section 201 of this Act during the preceding month. Beginning
16July 1, 1995 and continuing through January 31, 2011, the
17Treasurer shall transfer each month from the General Revenue
18Fund to the Local Government Distributive Fund an amount equal
19to the net of (i) 1/10 of the net revenue realized from the tax
20imposed by subsections (a) and (b) of Section 201 of the
21Illinois Income Tax Act during the preceding month (ii) minus,
22beginning July 1, 2003 and ending June 30, 2004, $6,666,666,
23and beginning July 1, 2004, zero. Beginning February 1, 2011,
24and continuing through January 31, 2015, the Treasurer shall
25transfer each month from the General Revenue Fund to the Local
26Government Distributive Fund an amount equal to the sum of (i)

HB0278 Engrossed- 3 -LRB100 04685 HLH 14691 b
16% (10% of the ratio of the 3% individual income tax rate prior
2to 2011 to the 5% individual income tax rate after 2010) of the
3net revenue realized from the tax imposed by subsections (a)
4and (b) of Section 201 of this Act upon individuals, trusts,
5and estates during the preceding month and (ii) 6.86% (10% of
6the ratio of the 4.8% corporate income tax rate prior to 2011
7to the 7% corporate income tax rate after 2010) 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, 2015 and continuing
11through January 31, 2017 January 31, 2025, the Treasurer shall
12transfer each month from the General Revenue Fund to the Local
13Government Distributive Fund an amount equal to the sum of (i)
148% (10% of the ratio of the 3% individual income tax rate prior
15to 2011 to the 3.75% individual income tax rate after 2014) of
16the net revenue realized from the tax imposed by subsections
17(a) and (b) of Section 201 of this Act upon individuals,
18trusts, and estates during the preceding month and (ii) 9.14%
19(10% of the ratio of the 4.8% corporate income tax rate prior
20to 2011 to the 5.25% corporate income tax rate after 2014) of
21the net revenue realized from the tax imposed by subsections
22(a) and (b) of Section 201 of this Act upon corporations during
23the preceding month. Beginning February 1, 2017 and continuing
24through January 31, 2018 February 1, 2025, the Treasurer shall
25transfer each month from the General Revenue Fund to the Local
26Government Distributive Fund an amount equal to the sum of (i)

HB0278 Engrossed- 4 -LRB100 04685 HLH 14691 b
18.5% 9.23% (10% of the ratio of the 3% individual income tax
2rate prior to 2011 to the 3.25% individual income tax rate
3after 2024) of the net revenue realized from the tax imposed by
4subsections (a) and (b) of Section 201 of this Act upon
5individuals, trusts, and estates during the preceding month and
6(ii) 9.355% 10% of the net revenue realized from the tax
7imposed by subsections (a) and (b) of Section 201 of this Act
8upon corporations during the preceding month. Beginning
9February 1, 2018 and continuing through January 31, 2019, the
10Treasurer shall transfer each month from the General Revenue
11Fund to the Local Government Distributive Fund an amount equal
12to the sum of (i) 9% of the net revenue realized from the tax
13imposed by subsections (a) and (b) of Section 201 of this Act
14upon individuals, trusts, and estates during the preceding
15month and (ii) 9.57% of the net revenue realized from the tax
16imposed by subsections (a) and (b) of Section 201 of this Act
17upon corporations during the preceding month. Beginning
18February 1, 2019 and continuing through January 31, 2020, the
19Treasurer shall transfer each month from the General Revenue
20Fund to the Local Government Distributive Fund an amount equal
21to the sum of (i) 9.5% of the net revenue realized from the tax
22imposed by subsections (a) and (b) of Section 201 of this Act
23upon individuals, trusts, and estates during the preceding
24month and (ii) 9.785% of the net revenue realized from the tax
25imposed by subsections (a) and (b) of Section 201 of this Act
26upon corporations during the preceding month. Beginning on

HB0278 Engrossed- 5 -LRB100 04685 HLH 14691 b
1February 1, 2020, the Treasurer shall transfer each month from
2the General Revenue Fund to the Local Government Distributive
3Fund an amount equal to 10% of the net revenue realized from
4the tax imposed on individuals, trusts, estates, and
5corporations by subsections (a) and (b) of Section 201 of the
6Illinois Income Tax Act during the preceding month. Net revenue
7realized for a month shall be defined as the revenue from the
8tax imposed by subsections (a) and (b) of Section 201 of this
9Act which is deposited in the General Revenue Fund, the
10Education Assistance Fund, the Income Tax Surcharge Local
11Government Distributive Fund, the Fund for the Advancement of
12Education, and the Commitment to Human Services Fund during the
13month minus the amount paid out of the General Revenue Fund in
14State warrants during that same month as refunds to taxpayers
15for overpayment of liability under the tax imposed by
16subsections (a) and (b) of Section 201 of this Act.
17 Beginning on August 26, 2014 (the effective date of Public
18Act 98-1052), the Comptroller shall perform the transfers
19required by this subsection (b) no later than 60 days after he
20or she receives the certification from the Treasurer as
21provided in Section 1 of the State Revenue Sharing Act.
22 (c) Deposits Into Income Tax Refund Fund.
23 (1) Beginning on January 1, 1989 and thereafter, the
24 Department shall deposit a percentage of the amounts
25 collected pursuant to subsections (a) and (b)(1), (2), and
26 (3), of Section 201 of this Act into a fund in the State

HB0278 Engrossed- 6 -LRB100 04685 HLH 14691 b
1 treasury known as the Income Tax Refund Fund. The
2 Department shall deposit 6% of such amounts during the
3 period beginning January 1, 1989 and ending on June 30,
4 1989. Beginning with State fiscal year 1990 and for each
5 fiscal year thereafter, the percentage deposited into the
6 Income Tax Refund Fund during a fiscal year shall be the
7 Annual Percentage. For fiscal years 1999 through 2001, the
8 Annual Percentage shall be 7.1%. For fiscal year 2003, the
9 Annual Percentage shall be 8%. For fiscal year 2004, the
10 Annual Percentage shall be 11.7%. Upon the effective date
11 of this amendatory Act of the 93rd General Assembly, the
12 Annual Percentage shall be 10% for fiscal year 2005. For
13 fiscal year 2006, the Annual Percentage shall be 9.75%. For
14 fiscal year 2007, the Annual Percentage shall be 9.75%. For
15 fiscal year 2008, the Annual Percentage shall be 7.75%. For
16 fiscal year 2009, the Annual Percentage shall be 9.75%. For
17 fiscal year 2010, the Annual Percentage shall be 9.75%. For
18 fiscal year 2011, the Annual Percentage shall be 8.75%. For
19 fiscal year 2012, the Annual Percentage shall be 8.75%. For
20 fiscal year 2013, the Annual Percentage shall be 9.75%. For
21 fiscal year 2014, the Annual Percentage shall be 9.5%. For
22 fiscal year 2015, the Annual Percentage shall be 10%. For
23 all other fiscal years, the Annual Percentage shall be
24 calculated as a fraction, the numerator of which shall be
25 the amount of refunds approved for payment by the
26 Department during the preceding fiscal year as a result of

HB0278 Engrossed- 7 -LRB100 04685 HLH 14691 b
1 overpayment of tax liability under subsections (a) and
2 (b)(1), (2), and (3) of Section 201 of this Act plus the
3 amount of such refunds remaining approved but unpaid at the
4 end of the preceding fiscal year, minus the amounts
5 transferred into the Income Tax Refund Fund from the
6 Tobacco Settlement Recovery Fund, and the denominator of
7 which shall be the amounts which will be collected pursuant
8 to subsections (a) and (b)(1), (2), and (3) of Section 201
9 of this Act during the preceding fiscal year; except that
10 in State fiscal year 2002, the Annual Percentage shall in
11 no event exceed 7.6%. The Director of Revenue shall certify
12 the Annual Percentage to the Comptroller on the last
13 business day of the fiscal year immediately preceding the
14 fiscal year for which it is to be effective.
15 (2) Beginning on January 1, 1989 and thereafter, the
16 Department shall deposit a percentage of the amounts
17 collected pursuant to subsections (a) and (b)(6), (7), and
18 (8), (c) and (d) of Section 201 of this Act into a fund in
19 the State treasury known as the Income Tax Refund Fund. The
20 Department shall deposit 18% of such amounts during the
21 period beginning January 1, 1989 and ending on June 30,
22 1989. Beginning with State fiscal year 1990 and for each
23 fiscal year thereafter, the percentage deposited into the
24 Income Tax Refund Fund during a fiscal year shall be the
25 Annual Percentage. For fiscal years 1999, 2000, and 2001,
26 the Annual Percentage shall be 19%. For fiscal year 2003,

HB0278 Engrossed- 8 -LRB100 04685 HLH 14691 b
1 the Annual Percentage shall be 27%. For fiscal year 2004,
2 the Annual Percentage shall be 32%. Upon the effective date
3 of this amendatory Act of the 93rd General Assembly, the
4 Annual Percentage shall be 24% for fiscal year 2005. For
5 fiscal year 2006, the Annual Percentage shall be 20%. For
6 fiscal year 2007, the Annual Percentage shall be 17.5%. For
7 fiscal year 2008, the Annual Percentage shall be 15.5%. For
8 fiscal year 2009, the Annual Percentage shall be 17.5%. For
9 fiscal year 2010, the Annual Percentage shall be 17.5%. For
10 fiscal year 2011, the Annual Percentage shall be 17.5%. For
11 fiscal year 2012, the Annual Percentage shall be 17.5%. For
12 fiscal year 2013, the Annual Percentage shall be 14%. For
13 fiscal year 2014, the Annual Percentage shall be 13.4%. For
14 fiscal year 2015, the Annual Percentage shall be 14%. For
15 all other fiscal years, the Annual Percentage shall be
16 calculated as a fraction, the numerator of which shall be
17 the amount of refunds approved for payment by the
18 Department during the preceding fiscal year as a result of
19 overpayment of tax liability under subsections (a) and
20 (b)(6), (7), and (8), (c) and (d) of Section 201 of this
21 Act plus the amount of such refunds remaining approved but
22 unpaid at the end of the preceding fiscal year, and the
23 denominator of which shall be the amounts which will be
24 collected pursuant to subsections (a) and (b)(6), (7), and
25 (8), (c) and (d) of Section 201 of this Act during the
26 preceding fiscal year; except that in State fiscal year

HB0278 Engrossed- 9 -LRB100 04685 HLH 14691 b
1 2002, the Annual Percentage shall in no event exceed 23%.
2 The Director of Revenue shall certify the Annual Percentage
3 to the Comptroller on the last business day of the fiscal
4 year immediately preceding the fiscal year for which it is
5 to be effective.
6 (3) The Comptroller shall order transferred and the
7 Treasurer shall transfer from the Tobacco Settlement
8 Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
9 in January, 2001, (ii) $35,000,000 in January, 2002, and
10 (iii) $35,000,000 in January, 2003.
11 (d) Expenditures from Income Tax Refund Fund.
12 (1) Beginning January 1, 1989, money in the Income Tax
13 Refund Fund shall be expended exclusively for the purpose
14 of paying refunds resulting from overpayment of tax
15 liability under Section 201 of this Act, for paying rebates
16 under Section 208.1 in the event that the amounts in the
17 Homeowners' Tax Relief Fund are insufficient for that
18 purpose, and for making transfers pursuant to this
19 subsection (d).
20 (2) The Director shall order payment of refunds
21 resulting from overpayment of tax liability under Section
22 201 of this Act from the Income Tax Refund Fund only to the
23 extent that amounts collected pursuant to Section 201 of
24 this Act and transfers pursuant to this subsection (d) and
25 item (3) of subsection (c) have been deposited and retained
26 in the Fund.

HB0278 Engrossed- 10 -LRB100 04685 HLH 14691 b
1 (3) As soon as possible after the end of each fiscal
2 year, the Director shall order transferred and the State
3 Treasurer and State Comptroller shall transfer from the
4 Income Tax Refund Fund to the Personal Property Tax
5 Replacement Fund an amount, certified by the Director to
6 the Comptroller, equal to the excess of the amount
7 collected pursuant to subsections (c) and (d) of Section
8 201 of this Act deposited into the Income Tax Refund Fund
9 during the fiscal year over the amount of refunds resulting
10 from overpayment of tax liability under subsections (c) and
11 (d) of Section 201 of this Act paid from the Income Tax
12 Refund Fund during the fiscal year.
13 (4) As soon as possible after the end of each fiscal
14 year, the Director shall order transferred and the State
15 Treasurer and State Comptroller shall transfer from the
16 Personal Property Tax Replacement Fund to the Income Tax
17 Refund Fund an amount, certified by the Director to the
18 Comptroller, equal to the excess of the amount of refunds
19 resulting from overpayment of tax liability under
20 subsections (c) and (d) of Section 201 of this Act paid
21 from the Income Tax Refund Fund during the fiscal year over
22 the amount collected pursuant to subsections (c) and (d) of
23 Section 201 of this Act deposited into the Income Tax
24 Refund Fund during the fiscal year.
25 (4.5) As soon as possible after the end of fiscal year
26 1999 and of each fiscal year thereafter, the Director shall

HB0278 Engrossed- 11 -LRB100 04685 HLH 14691 b
1 order transferred and the State Treasurer and State
2 Comptroller shall transfer from the Income Tax Refund Fund
3 to the General Revenue Fund any surplus remaining in the
4 Income Tax Refund Fund as of the end of such fiscal year;
5 excluding for fiscal years 2000, 2001, and 2002 amounts
6 attributable to transfers under item (3) of subsection (c)
7 less refunds resulting from the earned income tax credit.
8 (5) This Act shall constitute an irrevocable and
9 continuing appropriation from the Income Tax Refund Fund
10 for the purpose of paying refunds upon the order of the
11 Director in accordance with the provisions of this Section.
12 (e) Deposits into the Education Assistance Fund and the
13Income Tax Surcharge Local Government Distributive Fund.
14 On July 1, 1991, and thereafter, of the amounts collected
15pursuant to subsections (a) and (b) of Section 201 of this Act,
16minus deposits into the Income Tax Refund Fund, the Department
17shall deposit 7.3% into the Education Assistance Fund in the
18State Treasury. Beginning July 1, 1991, and continuing through
19January 31, 1993, of the amounts collected pursuant to
20subsections (a) and (b) of Section 201 of the Illinois Income
21Tax Act, minus deposits into the Income Tax Refund Fund, the
22Department shall deposit 3.0% into the Income Tax Surcharge
23Local Government Distributive Fund in the State Treasury.
24Beginning February 1, 1993 and continuing through June 30,
251993, of the amounts collected pursuant to subsections (a) and
26(b) of Section 201 of the Illinois Income Tax Act, minus

HB0278 Engrossed- 12 -LRB100 04685 HLH 14691 b
1deposits into the Income Tax Refund Fund, the Department shall
2deposit 4.4% into the Income Tax Surcharge Local Government
3Distributive Fund in the State Treasury. Beginning July 1,
41993, and continuing through June 30, 1994, of the amounts
5collected under subsections (a) and (b) of Section 201 of this
6Act, minus deposits into the Income Tax Refund Fund, the
7Department shall deposit 1.475% into the Income Tax Surcharge
8Local Government Distributive Fund in the State Treasury.
9 (f) Deposits into the Fund for the Advancement of
10Education. Beginning February 1, 2015, the Department shall
11deposit the following portions of the revenue realized from the
12tax imposed upon individuals, trusts, and estates by
13subsections (a) and (b) of Section 201 of this Act during the
14preceding month, minus deposits into the Income Tax Refund
15Fund, into the Fund for the Advancement of Education:
16 (1) beginning February 1, 2015, and prior to February
17 1, 2025, 1/30; and
18 (2) beginning February 1, 2025, 1/26.
19 If the rate of tax imposed by subsection (a) and (b) of
20Section 201 is reduced pursuant to Section 201.5 of this Act,
21the Department shall not make the deposits required by this
22subsection (f) on or after the effective date of the reduction.
23 (g) Deposits into the Commitment to Human Services Fund.
24Beginning February 1, 2015, the Department shall deposit the
25following portions of the revenue realized from the tax imposed
26upon individuals, trusts, and estates by subsections (a) and

HB0278 Engrossed- 13 -LRB100 04685 HLH 14691 b
1(b) of Section 201 of this Act during the preceding month,
2minus deposits into the Income Tax Refund Fund, into the
3Commitment to Human Services Fund:
4 (1) beginning February 1, 2015, and prior to February
5 1, 2025, 1/30; and
6 (2) beginning February 1, 2025, 1/26.
7 If the rate of tax imposed by subsection (a) and (b) of
8Section 201 is reduced pursuant to Section 201.5 of this Act,
9the Department shall not make the deposits required by this
10subsection (g) on or after the effective date of the reduction.
11 (h) Deposits into the Tax Compliance and Administration
12Fund. Beginning on the first day of the first calendar month to
13occur on or after August 26, 2014 (the effective date of Public
14Act 98-1098), each month the Department shall pay into the Tax
15Compliance and Administration Fund, to be used, subject to
16appropriation, to fund additional auditors and compliance
17personnel at the Department, an amount equal to 1/12 of 5% of
18the cash receipts collected during the preceding fiscal year by
19the Audit Bureau of the Department from the tax imposed by
20subsections (a), (b), (c), and (d) of Section 201 of this Act,
21net of deposits into the Income Tax Refund Fund made from those
22cash receipts.
23(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14;
2498-1052, eff. 8-26-14; 98-1098, eff. 8-26-14; 99-78, eff.
257-20-15.)
26 Section 99. Effective date. This Act takes effect upon

HB0278 Engrossed- 14 -LRB100 04685 HLH 14691 b
1becoming law.
feedback