Bill Text: IL HB0652 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the State Revenue Sharing Act and the Illinois Income Tax Act. Provides that, from each income tax payment that the Department of Revenue receives, the Department must deposit, directly into the Local Government Distributive Fund, an amount equal to 10% of the amount collected minus refund deposits (currently, the Department deposits the tax payment into the General Revenue Fund, the Department then certifies, to the Treasurer, an amount equal to 10% of the amounts of collected each month (minus refunds), and the Treasurer then transfers that certified amount to the Local Government Distributive Fund). Effective immediately.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2010-03-22 - Added Co-Sponsor Rep. Patrick J. Verschoore [HB0652 Detail]

Download: Illinois-2009-HB0652-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB0652 Introduced 02/06/09, by Rep. Frank J. Mautino SYNOPSIS AS INTRODUCED:
30 ILCS 115/1 from Ch. 85, par. 611
35 ILCS 5/901 from Ch. 120, par. 9-901
Amends the State Revenue Sharing Act and the Illinois Income Tax Act. Provides that, from each income tax payment that the Department of Revenue receives, the Department must deposit, directly into the Local Government Distributive Fund, an amount equal to 10% of the amount collected minus refund deposits (currently, the Department deposits the tax payment into the General Revenue Fund, the Department then certifies, to the Treasurer, an amount equal to 10% of the amounts of collected each month (minus refunds), and the Treasurer then transfers that certified amount to the Local Government Distributive Fund). Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
HB0652 LRB096 03991 RCE 14027 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Revenue Sharing Act is amended by
changing Section 1 as follows:
(30 ILCS 115/1) (from Ch. 85, par. 611)
Sec. 1. Local Government Distributive Fund.
(a) Through June 30, 1994, as soon as may be after the
first day of each month the Department of Revenue shall certify
to the Treasurer an amount equal to 1/12 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.
Beginning July 1, 1994, and continuing through June 30,
1995, as soon as may be after the first day of each month, the
Department of Revenue shall certify to the Treasurer an amount
equal to 1/11 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.
Beginning July 1, 1995 and continuing through December 31,
2009, as soon as may be after the first day of each month, the
Department of Revenue shall certify to the Treasurer an amount
equal to 1/10 of the net revenue realized from the tax imposed

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by subsections (a) and (b) of Section 201 of the Illinois
Income Tax Act during the preceding month.
For the purpose of this subsection (a), net 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 the
Illinois Income Tax Act which is deposited in the General
Revenue Fund, the Education Assistance Fund and the Income Tax
Surcharge Local Government Distributive Fund during the month
minus the amount paid out of the General Revenue Fund in State
warrants during that same month as refunds to taxpayers for
overpayment of liability under the tax imposed by subsections
(a) and (b) of Section 201 of the Illinois Income Tax Act.
Upon receipt of a such certification under this subsection
(a), the Treasurer shall transfer from the General Revenue Fund
to a special fund in the State treasury, to be known as the
"Local Government Distributive Fund", the amount shown on such
certification.
(b) Beginning January 1, 2010, for all payments collected
on or after December 1, 2009, the Department of Revenue shall,
immediately upon receipt, deposit into the Local Government
Distributive Fund an amount equal to 10% of the amount
collected minus deposits into the Income Tax Refund Fund under
subsection (c) of Section 901 of the Illinois Income Tax Act.
(c) All amounts paid into the Local Government Distributive
Fund in accordance with this Section and allocated pursuant to
this Act are appropriated on a continuing basis.

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(Source: P.A. 88-89.)
Section 10. 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 (b),
(c), and (e) of this Section, money collected pursuant to
subsections (a) and (b) of Section 201 of this Act shall be
paid into the General Revenue Fund in the State treasury; money
collected pursuant to subsections (c) and (d) of Section 201 of
this Act shall be paid into the Personal Property Tax
Replacement Fund, a special fund in the State Treasury; and
money collected under Section 2505-650 of the Department of
Revenue Law (20 ILCS 2505/2505-650) shall be paid into the
Child Support Enforcement Trust Fund, a special fund outside
the State Treasury, or to the State Disbursement Unit
established under Section 10-26 of the Illinois Public Aid
Code, as directed by the Department of Healthcare and Family
Services.
(b) Local Government Governmental Distributive Fund.

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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 December 31,
2009, the Treasurer shall transfer each month from the General
Revenue Fund to the Local Government Distributive Fund an
amount equal to the net of (i) 1/10 of the net revenue realized
from the tax imposed by subsections (a) and (b) of Section 201
of the Illinois Income Tax Act during the preceding month (ii)
minus, beginning July 1, 2003 and ending June 30, 2004,
$6,666,666, and beginning July 1, 2004, zero. Net revenue
realized for a month shall be defined as the revenue from the
tax imposed by subsections (a) and (b) of Section 201 of this
Act which is deposited in the General Revenue Fund, the
Educational Assistance Fund and the Income Tax Surcharge Local
Government Distributive Fund during the month minus the amount

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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.
Beginning January 1, 2010, for all payments collected on or
after December 1, 2009, the Department of Revenue shall,
immediately upon receipt, deposit into the Local Government
Distributive Fund an amount equal to 10% of the amount
collected minus deposits into the Income Tax Refund Fund under
subsection (c).
(c) Deposits Into Income Tax Refund Fund.
(1) Beginning on January 1, 1989 and thereafter, the
Department shall deposit a percentage of the amounts
collected pursuant to subsections (a) and (b)(1), (2), and
(3), of Section 201 of this Act into a fund in the State
treasury known as the Income Tax Refund Fund. The
Department shall deposit 6% of such amounts during the
period beginning January 1, 1989 and ending on June 30,
1989. Beginning with State fiscal year 1990 and for each
fiscal year thereafter, the percentage deposited into the
Income Tax Refund Fund during a fiscal year shall be the
Annual Percentage. For fiscal years 1999 through 2001, the
Annual Percentage shall be 7.1%. For fiscal year 2003, the
Annual Percentage shall be 8%. For fiscal year 2004, the
Annual Percentage shall be 11.7%. Upon the effective date
of this amendatory Act of the 93rd General Assembly, the

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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
all other fiscal years, the Annual Percentage shall be
calculated as a fraction, the numerator of which shall be
the amount of refunds approved for payment by the
Department during the preceding fiscal year as a result of
overpayment of tax liability under subsections (a) and
(b)(1), (2), and (3) of Section 201 of this Act plus the
amount of such refunds remaining approved but unpaid at the
end of the preceding fiscal year, minus the amounts
transferred into the Income Tax Refund Fund from the
Tobacco Settlement Recovery Fund, and the denominator of
which shall be the amounts which will be collected pursuant
to subsections (a) and (b)(1), (2), and (3) of Section 201
of this Act during the preceding fiscal year; except that
in State fiscal year 2002, the Annual Percentage shall in
no event exceed 7.6%. The Director of Revenue shall certify
the Annual Percentage to the Comptroller on the last
business day of the fiscal year immediately preceding the
fiscal year for which it is to be effective.
(2) Beginning on January 1, 1989 and thereafter, the
Department shall deposit a percentage of the amounts
collected pursuant to subsections (a) and (b)(6), (7), and

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(8), (c) and (d) of Section 201 of this Act into a fund in
the State treasury known as the Income Tax Refund Fund. The
Department shall deposit 18% of such amounts during the
period beginning January 1, 1989 and ending on June 30,
1989. Beginning with State fiscal year 1990 and for each
fiscal year thereafter, the percentage deposited into the
Income Tax Refund Fund during a fiscal year shall be the
Annual Percentage. For fiscal years 1999, 2000, and 2001,
the Annual Percentage shall be 19%. For fiscal year 2003,
the Annual Percentage shall be 27%. For fiscal year 2004,
the Annual Percentage shall be 32%. Upon the effective date
of this amendatory Act of the 93rd General Assembly, the
Annual Percentage shall be 24% for fiscal year 2005. For
fiscal year 2006, the Annual Percentage shall be 20%. For
fiscal year 2007, the Annual Percentage shall be 17.5%. For
fiscal year 2008, the Annual Percentage shall be 15.5%. For
fiscal year 2009, the Annual Percentage shall be 17.5%. 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

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collected pursuant to subsections (a) and (b)(6), (7), and
(8), (c) and (d) of Section 201 of this Act during the
preceding fiscal year; except that in State fiscal year
2002, the Annual Percentage shall in no event exceed 23%.
The Director of Revenue shall certify the Annual Percentage
to the Comptroller on the last business day of the fiscal
year immediately preceding the fiscal year for which it is
to be effective.
(3) The Comptroller shall order transferred and the
Treasurer shall transfer from the Tobacco Settlement
Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
in January, 2001, (ii) $35,000,000 in January, 2002, and
(iii) $35,000,000 in January, 2003.
(d) Expenditures from Income Tax Refund Fund.
(1) Beginning January 1, 1989, money in the Income Tax
Refund Fund shall be expended exclusively for the purpose
of paying refunds resulting from overpayment of tax
liability under Section 201 of this Act, for paying rebates
under Section 208.1 in the event that the amounts in the
Homeowners' Tax Relief Fund are insufficient for that
purpose, and for making transfers pursuant to this
subsection (d).
(2) The Director shall order payment of refunds
resulting from overpayment of tax liability under Section
201 of this Act from the Income Tax Refund Fund only to the
extent that amounts collected pursuant to Section 201 of

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this Act and transfers pursuant to this subsection (d) and
item (3) of subsection (c) have been deposited and retained
in the Fund.
(3) As soon as possible after the end of each fiscal
year, the Director shall order transferred and the State
Treasurer and State Comptroller shall transfer from the
Income Tax Refund Fund to the Personal Property Tax
Replacement Fund an amount, certified by the Director to
the Comptroller, equal to the excess of the amount
collected pursuant to subsections (c) and (d) of Section
201 of this Act deposited into the Income Tax Refund Fund
during the fiscal year over the amount of refunds resulting
from overpayment of tax liability under subsections (c) and
(d) of Section 201 of this Act paid from the Income Tax
Refund Fund during the fiscal year.
(4) As soon as possible after the end of each fiscal
year, the Director shall order transferred and the State
Treasurer and State Comptroller shall transfer from the
Personal Property Tax Replacement Fund to the Income Tax
Refund Fund an amount, certified by the Director to the
Comptroller, equal to the excess of the amount of refunds
resulting from overpayment of tax liability under
subsections (c) and (d) of Section 201 of this Act paid
from the Income Tax Refund Fund during the fiscal year over
the amount collected pursuant to subsections (c) and (d) of
Section 201 of this Act deposited into the Income Tax

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Refund Fund during the fiscal year.
(4.5) As soon as possible after the end of fiscal year
1999 and of each fiscal year thereafter, the Director shall
order transferred and the State Treasurer and State
Comptroller shall transfer from the Income Tax Refund Fund
to the General Revenue Fund any surplus remaining in the
Income Tax Refund Fund as of the end of such fiscal year;
excluding for fiscal years 2000, 2001, and 2002 amounts
attributable to transfers under item (3) of subsection (c)
less refunds resulting from the earned income tax credit.
(5) This Act shall constitute an irrevocable and
continuing appropriation from the Income Tax Refund Fund
for the purpose of paying refunds upon the order of the
Director in accordance with the provisions of this Section.
(e) Deposits into the Education Assistance Fund and the
Income Tax Surcharge Local Government Distributive Fund.
On July 1, 1991, and thereafter, of the amounts collected
pursuant to subsections (a) and (b) of Section 201 of this Act,
minus deposits into the Income Tax Refund Fund, the Department
shall deposit 7.3% into the Education Assistance Fund in the
State Treasury. Beginning July 1, 1991, and continuing through
January 31, 1993, of the amounts collected pursuant to
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act, minus deposits into the Income Tax Refund Fund, the
Department shall deposit 3.0% into the Income Tax Surcharge
Local Government Distributive Fund in the State Treasury.

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Beginning February 1, 1993 and continuing through June 30,
1993, of the amounts collected pursuant to subsections (a) and
(b) of Section 201 of the Illinois Income Tax Act, minus
deposits into the Income Tax Refund Fund, the Department shall
deposit 4.4% into the Income Tax Surcharge Local Government
Distributive Fund in the State Treasury. Beginning July 1,
1993, and continuing through June 30, 1994, of the amounts
collected under subsections (a) and (b) of Section 201 of this
Act, minus deposits into the Income Tax Refund Fund, the
Department shall deposit 1.475% into the Income Tax Surcharge
Local Government Distributive Fund in the State Treasury.
(Source: P.A. 94-91, eff. 7-1-05; 94-839, eff. 6-6-06; 95-707,
eff. 1-11-08; 95-744, eff. 7-18-08; revised 10-23-08.)
Section 99. Effective date. This Act takes effect upon
becoming law.