Bill Text: IL HB0396 | 2013-2014 | 98th General Assembly | Amended

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Bill Title: Amends the Property Tax Code. Makes a technical change in a Section concerning the Property Tax Appeal Board.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB0396 Detail]

Download: Illinois-2013-HB0396-Amended.html

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Rep. Michael J. Madigan

Filed: 5/19/2014

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AMENDMENT TO HOUSE BILL 396
AMENDMENT NO. ______. Amend House Bill 396 by replacing
everything after the enacting clause with the following:
"Section 1. Short title. This Act may be cited as the
Property Tax Refund Act.
Section 5. Definitions. As used in this Act:
"Department" means the Department of Revenue.
"Eligible homeowner" means an individual who was liable for
property taxes that were paid on qualified property that is
located in Illinois and is used as his or her principal place
of residence and in which he or she had an ownership interest
as of January 1 of the year in which the property taxes were
paid.
"Qualified property" means property for which (i) the
homeowner would have been allowed a credit under Section 208 of
the Illinois Income Tax Act, as that Section existed on January

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1, 2014, and (ii) an eligible homeowner has filed a timely
application for a refund under Section 10 of this Act.
Section 10. Property tax refunds.
(a) Beginning in 2014, the Department shall issue a
property tax refund each year for each qualified property for
which an eligible homeowner who was liable for property taxes
that were paid with respect to that qualified property in the
immediately preceding calendar year has filed a timely
application for the property tax refund. The Department shall
certify to the State Comptroller as soon as possible after July
1 of each year both (i) the names of each eligible homeowner
who will receive a refund and (ii) the refund amount for each
eligible homeowner. The State Comptroller shall process the
property tax refunds within 60 business days after receipt of a
properly executed voucher.
(b) The Department shall issue a refund equal to $500 for
each qualified property, provided that only one refund shall be
issued for each qualified property. If there is more than one
eligible homeowner for a qualified property, the refund shall
be paid to the eligible homeowner shown on the first
application received by the Department. Any division or sharing
of a refund among the eligible homeowners shall be a matter for
agreement between the eligible homeowners. The Department
shall not be responsible for dividing the refund among eligible
homeowners.

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(c) On July 1, or as soon thereafter as practical, the
Department shall certify to the Governor's Office of Management
and Budget and to the State Comptroller the amount necessary to
make payments pursuant to this Act. The State Comptroller shall
order transferred and the State Treasurer shall transfer from
the General Revenue Fund to the Income and Property Tax Refund
Fund the amount necessary to fund such payments.
(d) Application for the refund shall be made in the form
and manner prescribed by the Department and shall contain all
information reasonably required by the Department for purposes
of administering the refund.
For refunds with respect to property taxes that were paid
in 2013, an Illinois income tax return claiming a credit under
Section 208 of the Illinois Income Tax Act for a tax year
ending in 2013 shall be treated as an application for the
refund. For refunds with respect to property taxes that were
paid in 2014 or in any subsequent year, the Department may
allow or require the application to be made on an Illinois
income tax return for the applicant's taxable year ending
during the year in which the property taxes were paid, or it
may require a separate application, or both. The Department may
require applications to be filed electronically, except in the
case of an individual who has no ready access to a means of
electronic filing or in the case where the application is made
on an income tax return that is not required to be filed
electronically.

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No refund shall be allowed to an eligible homeowner with
respect to property taxes that were paid in a year unless an
application has been filed with the Department no later than
June 30 of the second calendar year following the year in which
the property taxes were paid, and, in the case of a
timely-filed application that is incomplete or otherwise
defective, any defect has been corrected no later than 30 days
after the Department has issued a notice that the application
is incomplete or defective or June 30 of that second following
year, whichever is later.
(e) In lieu of a refund paid under subsection (a) of
Section 10 of this Act, the Department may credit the amount of
the refund against (i) any final tax liability of the applicant
arising under any Act administered by the Department,
regardless of whether other collection remedies are closed to
the Department, or (ii) any liability of the applicant against
which the Department may offset an overpayment of Illinois
income tax of the applicant, and pay only the remaining balance
to the applicant.
(f) If a refund is determined by the Department to have
been issued in error, as soon as possible after the
determination is made, the Department shall issue a demand for
repayment of the erroneous refund, plus a penalty of 20% of the
erroneous refund, provided that no penalty shall be imposed if
the refund was issued as a result of an error of the Department
that was not caused by the recipient of the refund or if the

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recipient had reasonable cause for any error made in applying
for the refund. If repayment is not made within 60 days of the
date of issuance of the demand, the Department shall enforce
repayment of the refund using all legal authority available to
the Department to collect debt.
Section 15. Information from counties.
(a) Beginning in 2014, the Department may require each
county to provide to the Department, upon request, each year
the following information relating to the property tax bills
issued in the preceding year; this information shall be
provided by parcel number:
(1) county code;
(2) township name or code;
(3) property index number;
(4) name of the owner;
(5) the mailing address of the owner;
(6) the address of the parcel;
(7) all homestead exemptions applicable to the parcel;
(8) property use or type with description;
(9) assessed value (before equalization factor);
(10) equalized assessed value;
(11) tax bill amount; and
(12) such other information as the Department shall
require.
(b) The information required by the Department under

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subsection (a) for property tax bills issued in 2013 shall be
submitted no later than 30 days after written request by the
Department. For property tax bills issued in 2014 or any
subsequent year, that information shall be submitted no later
than May 15 of the following year. The Department may grant
requests for extensions of time to submit the information. The
information shall be submitted in a computer readable format as
directed by the Department. If any county fails to submit the
required information by the due date under this subsection, the
Department shall not certify to the State Comptroller the
amount of the Local Government Distributive Fund allocated to
that county under subsection (a) of Section 2 of the State
Revenue Sharing Act during any month beginning after that due
date until the information is submitted, and then, in the first
month beginning after the information is submitted, the
Department shall certify to the State Comptroller for payment
to that county the amount allocated in that month plus the
amounts that were allocated to that county in prior months but
not certified to the State Comptroller as a result of this
subsection.
(c) Notwithstanding Sections 6 and 8 of the State Mandates
Act, no reimbursement by the State is required for the
implementation of any mandate created by this Section.
Section 20. False statements in applications. Any person
who files an application for a refund under this Act that

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contains a materially false statement, or who willfully
attempts in any other manner to receive a refund which that
person knows he or she is not entitled to receive under this
Act, shall be guilty of a Class 4 felony for the first offense
and a Class 3 felony for each subsequent offense. A prosecution
for any act in violation of this Section may be commenced at
any time within 5 years of the commission of that act.
Section 25. Rulemaking. The Department is authorized to
make, promulgate, and enforce such reasonable rules, and to
prescribe such forms, relating to the administration and
enforcement of the provisions of this Act as it may deem
appropriate.
The circuit courts of Cook County and Sangamon County have
the power to review all final administrative decisions of the
Department in administering this Act. The provisions of the
Administrative Review Law, and all amendments and
modifications thereof, and the rules adopted pursuant thereto,
shall apply to and govern all proceedings for the judicial
review of final administrative decisions of the Department
under this Act. The term "administrative decision" is defined
as in Section 3-101 of the Code of Civil Procedure.
Section 80. The State Finance Act is amended by changing
Sections 5.249 and 8.27a as follows:

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(30 ILCS 105/5.249) (from Ch. 127, par. 141.249)
Sec. 5.249. The Income and Property Tax Refund Fund.
(Source: P.A. 85-1440.)
(30 ILCS 105/8.27a)
Sec. 8.27a. TANF funds; earned income tax credit. Funds
from the federal Temporary Assistance for Needy Families block
grant under Title IV-A of the federal Social Security Act
designated by the Illinois Department of Human Services as
reimbursement for expenditures made by the Illinois Department
of Revenue for the refundable portion of the earned income tax
credit shall be deposited into the Income and Property Tax
Refund Fund. Such deposits shall be made as needed on
approximately the fifteenth calendar day of each month.
(Source: P.A. 93-653, eff. 1-8-04.)
Section 85. The State Revenue Sharing Act is amended by
changing Sections 1a and 12 as follows:
(30 ILCS 115/1a) (from Ch. 85, par. 611a)
Sec. 1a. Income Tax Surcharge Local Government
Distributive Fund. 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 and Property Tax Refund
Fund, the Department shall deposit 3.0% into the Income Tax

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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 and Property 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 the Illinois Income Tax 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. 87-17; 87-860; 88-89.)
(30 ILCS 115/12) (from Ch. 85, par. 616)
Sec. 12. Personal Property Tax Replacement Fund. There is
hereby created the Personal Property Tax Replacement Fund, a
special fund in the State Treasury into which shall be paid all
revenue realized:
(a) all amounts realized from the additional personal
property tax replacement income tax imposed by subsections (c)
and (d) of Section 201 of the Illinois Income Tax Act, except
for those amounts deposited into the Income and Property Tax
Refund Fund pursuant to subsection (c) of Section 901 of the
Illinois Income Tax Act; and

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(b) all amounts realized from the additional personal
property replacement invested capital taxes imposed by Section
2a.1 of the Messages Tax Act, Section 2a.1 of the Gas Revenue
Tax Act, Section 2a.1 of the Public Utilities Revenue Act, and
Section 3 of the Water Company Invested Capital Tax Act, and
amounts payable to the Department of Revenue under the
Telecommunications Infrastructure Maintenance Fee Act.
As soon as may be after the end of each month, the
Department of Revenue shall certify to the Treasurer and the
Comptroller the amount of all refunds paid out of the General
Revenue Fund through the preceding month on account of
overpayment of liability on taxes paid into the Personal
Property Tax Replacement Fund. Upon receipt of such
certification, the Treasurer and the Comptroller shall
transfer the amount so certified from the Personal Property Tax
Replacement Fund into the General Revenue Fund.
The payments of revenue into the Personal Property Tax
Replacement Fund shall be used exclusively for distribution to
taxing districts, regional offices and officials, and local
officials as provided in this Section and in the School Code,
payment of the ordinary and contingent expenses of the Property
Tax Appeal Board, payment of the expenses of the Department of
Revenue incurred in administering the collection and
distribution of monies paid into the Personal Property Tax
Replacement Fund and transfers due to refunds to taxpayers for
overpayment of liability for taxes paid into the Personal

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Property Tax Replacement Fund.
In addition, moneys in the Personal Property Tax
Replacement Fund may be used to pay any of the following: (i)
salary, stipends, and additional compensation as provided by
law for chief election clerks, county clerks, and county
recorders; (ii) costs associated with regional offices of
education and educational service centers; (iii)
reimbursements payable by the State Board of Elections under
Section 4-25, 5-35, 6-71, 13-10, 13-10a, or 13-11 of the
Election Code; and (iv) expenses of the Illinois Educational
Labor Relations Board.
As soon as may be after the effective date of this
amendatory Act of 1980, the Department of Revenue shall certify
to the Treasurer the amount of net replacement revenue paid
into the General Revenue Fund prior to that effective date from
the additional tax imposed by Section 2a.1 of the Messages Tax
Act; Section 2a.1 of the Gas Revenue Tax Act; Section 2a.1 of
the Public Utilities Revenue Act; Section 3 of the Water
Company Invested Capital Tax Act; amounts collected by the
Department of Revenue under the Telecommunications
Infrastructure Maintenance Fee Act; and the additional
personal property tax replacement income tax imposed by the
Illinois Income Tax Act, as amended by Public Act 81-1st
Special Session-1. Net replacement revenue shall be defined as
the total amount paid into and remaining in the General Revenue
Fund as a result of those Acts minus the amount outstanding and

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obligated from the General Revenue Fund in state vouchers or
warrants prior to the effective date of this amendatory Act of
1980 as refunds to taxpayers for overpayment of liability under
those Acts.
All interest earned by monies accumulated in the Personal
Property Tax Replacement Fund shall be deposited in such Fund.
All amounts allocated pursuant to this Section are appropriated
on a continuing basis.
Prior to December 31, 1980, as soon as may be after the end
of each quarter beginning with the quarter ending December 31,
1979, and on and after December 31, 1980, as soon as may be
after January 1, March 1, April 1, May 1, July 1, August 1,
October 1 and December 1 of each year, the Department of
Revenue shall allocate to each taxing district as defined in
Section 1-150 of the Property Tax Code, in accordance with the
provisions of paragraph (2) of this Section the portion of the
funds held in the Personal Property Tax Replacement Fund which
is required to be distributed, as provided in paragraph (1),
for each quarter. Provided, however, under no circumstances
shall any taxing district during each of the first two years of
distribution of the taxes imposed by this amendatory Act of
1979 be entitled to an annual allocation which is less than the
funds such taxing district collected from the 1978 personal
property tax. Provided further that under no circumstances
shall any taxing district during the third year of distribution
of the taxes imposed by this amendatory Act of 1979 receive

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less than 60% of the funds such taxing district collected from
the 1978 personal property tax. In the event that the total of
the allocations made as above provided for all taxing
districts, during either of such 3 years, exceeds the amount
available for distribution the allocation of each taxing
district shall be proportionately reduced. Except as provided
in Section 13 of this Act, the Department shall then certify,
pursuant to appropriation, such allocations to the State
Comptroller who shall pay over to the several taxing districts
the respective amounts allocated to them.
Any township which receives an allocation based in whole or
in part upon personal property taxes which it levied pursuant
to Section 6-507 or 6-512 of the Illinois Highway Code and
which was previously required to be paid over to a municipality
shall immediately pay over to that municipality a proportionate
share of the personal property replacement funds which such
township receives.
Any municipality or township, other than a municipality
with a population in excess of 500,000, which receives an
allocation based in whole or in part on personal property taxes
which it levied pursuant to Sections 3-1, 3-4 and 3-6 of the
Illinois Local Library Act and which was previously required to
be paid over to a public library shall immediately pay over to
that library a proportionate share of the personal property tax
replacement funds which such municipality or township
receives; provided that if such a public library has converted

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to a library organized under The Illinois Public Library
District Act, regardless of whether such conversion has
occurred on, after or before January 1, 1988, such
proportionate share shall be immediately paid over to the
library district which maintains and operates the library.
However, any library that has converted prior to January 1,
1988, and which hitherto has not received the personal property
tax replacement funds, shall receive such funds commencing on
January 1, 1988.
Any township which receives an allocation based in whole or
in part on personal property taxes which it levied pursuant to
Section 1c of the Public Graveyards Act and which taxes were
previously required to be paid over to or used for such public
cemetery or cemeteries shall immediately pay over to or use for
such public cemetery or cemeteries a proportionate share of the
personal property tax replacement funds which the township
receives.
Any taxing district which receives an allocation based in
whole or in part upon personal property taxes which it levied
for another governmental body or school district in Cook County
in 1976 or for another governmental body or school district in
the remainder of the State in 1977 shall immediately pay over
to that governmental body or school district the amount of
personal property replacement funds which such governmental
body or school district would receive directly under the
provisions of paragraph (2) of this Section, had it levied its

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own taxes.
(1) The portion of the Personal Property Tax
Replacement Fund required to be distributed as of the time
allocation is required to be made shall be the amount
available in such Fund as of the time allocation is
required to be made.
The amount available for distribution shall be the
total amount in the fund at such time minus the necessary
administrative and other authorized expenses as limited by
the appropriation and the amount determined by: (a) $2.8
million for fiscal year 1981; (b) for fiscal year 1982,
.54% of the funds distributed from the fund during the
preceding fiscal year; (c) for fiscal year 1983 through
fiscal year 1988, .54% of the funds distributed from the
fund during the preceding fiscal year less .02% of such
fund for fiscal year 1983 and less .02% of such funds for
each fiscal year thereafter; (d) for fiscal year 1989
through fiscal year 2011 no more than 105% of the actual
administrative expenses of the prior fiscal year; (e) for
fiscal year 2012 and beyond, a sufficient amount to pay (i)
stipends, additional compensation, salary reimbursements,
and other amounts directed to be paid out of this Fund for
local officials as authorized or required by statute and
(ii) no more than 105% of the actual administrative
expenses of the prior fiscal year, including payment of the
ordinary and contingent expenses of the Property Tax Appeal

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Board and payment of the expenses of the Department of
Revenue incurred in administering the collection and
distribution of moneys paid into the Fund; or (f) for
fiscal years 2012 and 2013 only, a sufficient amount to pay
stipends, additional compensation, salary reimbursements,
and other amounts directed to be paid out of this Fund for
regional offices and officials as authorized or required by
statute. Such portion of the fund shall be determined after
the transfer into the General Revenue Fund due to refunds,
if any, paid from the General Revenue Fund during the
preceding quarter. If at any time, for any reason, there is
insufficient amount in the Personal Property Tax
Replacement Fund for payments for regional offices and
officials or local officials or payment of costs of
administration or for transfers due to refunds at the end
of any particular month, the amount of such insufficiency
shall be carried over for the purposes of payments for
regional offices and officials, local officials, transfers
into the General Revenue Fund, and costs of administration
to the following month or months. Net replacement revenue
held, and defined above, shall be transferred by the
Treasurer and Comptroller to the Personal Property Tax
Replacement Fund within 10 days of such certification.
(2) Each quarterly allocation shall first be
apportioned in the following manner: 51.65% for taxing
districts in Cook County and 48.35% for taxing districts in

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the remainder of the State.
The Personal Property Replacement Ratio of each taxing
district outside Cook County shall be the ratio which the Tax
Base of that taxing district bears to the Downstate Tax Base.
The Tax Base of each taxing district outside of Cook County is
the personal property tax collections for that taxing district
for the 1977 tax year. The Downstate Tax Base is the personal
property tax collections for all taxing districts in the State
outside of Cook County for the 1977 tax year. The Department of
Revenue shall have authority to review for accuracy and
completeness the personal property tax collections for each
taxing district outside Cook County for the 1977 tax year.
The Personal Property Replacement Ratio of each Cook County
taxing district shall be the ratio which the Tax Base of that
taxing district bears to the Cook County Tax Base. The Tax Base
of each Cook County taxing district is the personal property
tax collections for that taxing district for the 1976 tax year.
The Cook County Tax Base is the personal property tax
collections for all taxing districts in Cook County for the
1976 tax year. The Department of Revenue shall have authority
to review for accuracy and completeness the personal property
tax collections for each taxing district within Cook County for
the 1976 tax year.
For all purposes of this Section 12, amounts paid to a
taxing district for such tax years as may be applicable by a
foreign corporation under the provisions of Section 7-202 of

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the Public Utilities Act, as amended, shall be deemed to be
personal property taxes collected by such taxing district for
such tax years as may be applicable. The Director shall
determine from the Illinois Commerce Commission, for any tax
year as may be applicable, the amounts so paid by any such
foreign corporation to any and all taxing districts. The
Illinois Commerce Commission shall furnish such information to
the Director. For all purposes of this Section 12, the Director
shall deem such amounts to be collected personal property taxes
of each such taxing district for the applicable tax year or
years.
Taxing districts located both in Cook County and in one or
more other counties shall receive both a Cook County allocation
and a Downstate allocation determined in the same way as all
other taxing districts.
If any taxing district in existence on July 1, 1979 ceases
to exist, or discontinues its operations, its Tax Base shall
thereafter be deemed to be zero. If the powers, duties and
obligations of the discontinued taxing district are assumed by
another taxing district, the Tax Base of the discontinued
taxing district shall be added to the Tax Base of the taxing
district assuming such powers, duties and obligations.
If two or more taxing districts in existence on July 1,
1979, or a successor or successors thereto shall consolidate
into one taxing district, the Tax Base of such consolidated
taxing district shall be the sum of the Tax Bases of each of

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the taxing districts which have consolidated.
If a single taxing district in existence on July 1, 1979,
or a successor or successors thereto shall be divided into two
or more separate taxing districts, the tax base of the taxing
district so divided shall be allocated to each of the resulting
taxing districts in proportion to the then current equalized
assessed value of each resulting taxing district.
If a portion of the territory of a taxing district is
disconnected and annexed to another taxing district of the same
type, the Tax Base of the taxing district from which
disconnection was made shall be reduced in proportion to the
then current equalized assessed value of the disconnected
territory as compared with the then current equalized assessed
value within the entire territory of the taxing district prior
to disconnection, and the amount of such reduction shall be
added to the Tax Base of the taxing district to which
annexation is made.
If a community college district is created after July 1,
1979, beginning on the effective date of this amendatory Act of
1995, its Tax Base shall be 3.5% of the sum of the personal
property tax collected for the 1977 tax year within the
territorial jurisdiction of the district.
The amounts allocated and paid to taxing districts pursuant
to the provisions of this amendatory Act of 1979 shall be
deemed to be substitute revenues for the revenues derived from
taxes imposed on personal property pursuant to the provisions

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of the "Revenue Act of 1939" or "An Act for the assessment and
taxation of private car line companies", approved July 22,
1943, as amended, or Section 414 of the Illinois Insurance
Code, prior to the abolition of such taxes and shall be used
for the same purposes as the revenues derived from ad valorem
taxes on real estate.
Monies received by any taxing districts from the Personal
Property Tax Replacement Fund shall be first applied toward
payment of the proportionate amount of debt service which was
previously levied and collected from extensions against
personal property on bonds outstanding as of December 31, 1978
and next applied toward payment of the proportionate share of
the pension or retirement obligations of the taxing district
which were previously levied and collected from extensions
against personal property. For each such outstanding bond
issue, the County Clerk shall determine the percentage of the
debt service which was collected from extensions against real
estate in the taxing district for 1978 taxes payable in 1979,
as related to the total amount of such levies and collections
from extensions against both real and personal property. For
1979 and subsequent years' taxes, the County Clerk shall levy
and extend taxes against the real estate of each taxing
district which will yield the said percentage or percentages of
the debt service on such outstanding bonds. The balance of the
amount necessary to fully pay such debt service shall
constitute a first and prior lien upon the monies received by

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each such taxing district through the Personal Property Tax
Replacement Fund and shall be first applied or set aside for
such purpose. In counties having fewer than 3,000,000
inhabitants, the amendments to this paragraph as made by this
amendatory Act of 1980 shall be first applicable to 1980 taxes
to be collected in 1981.
(Source: P.A. 97-72, eff. 7-1-11; 97-619, eff. 11-14-11;
97-732, eff. 6-30-12; 98-24, eff. 6-19-13.)
Section 90. 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
(20 ILCS 2505/2505-650). Except as provided in subsections (c),
(e), (f), and (g) 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

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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 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,

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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 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 January 31, 2025, 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

09800HB0396ham001 - 24 - LRB098 03215 HLH 59782 a
preceding month. Beginning February 1, 2025, 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) 9.23% (10% of the ratio of the 3% individual income tax
rate prior to 2011 to the 3.25% individual income tax rate
after 2024) 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) 10% 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. 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.
(c) Deposits Into Income and Property 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

09800HB0396ham001 - 25 - LRB098 03215 HLH 59782 a
treasury known as the Income and Property 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 and Property 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 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 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

09800HB0396ham001 - 26 - LRB098 03215 HLH 59782 a
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 and Property 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 and Property 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 and Property Tax Refund Fund
during a fiscal year shall be the Annual Percentage. For
fiscal years 1999, 2000, and 2001, the Annual Percentage

09800HB0396ham001 - 27 - LRB098 03215 HLH 59782 a
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 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 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

09800HB0396ham001 - 28 - LRB098 03215 HLH 59782 a
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 and Property 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 and Property 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, for paying refunds under the Property Tax Refund
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 and Property 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

09800HB0396ham001 - 29 - LRB098 03215 HLH 59782 a
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 and Property 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 and
Property 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 and
Property 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 and Property 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

09800HB0396ham001 - 30 - LRB098 03215 HLH 59782 a
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 and Property Tax
Refund Fund to the General Revenue Fund any surplus
remaining in the Income and Property 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 and Property 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 and Property 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 and

09800HB0396ham001 - 31 - LRB098 03215 HLH 59782 a
Property 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 and
Property 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 and Property 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,

09800HB0396ham001 - 32 - LRB098 03215 HLH 59782 a
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 and Property Tax Refund Fund,
into the Commitment to Human Services Fund:
(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 (g) on or after the effective date of the reduction.
(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24,
eff. 6-19-13.)
Section 99. Effective date. This Act takes effect upon
becoming law.".