Bill Text: IL HB3754 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Provides that, beginning July 1, 2023, the Department of Revenue shall deposit 10% of the net revenue realized from the income taxes imposed under the Act directly into the Local Government Distributive Fund as that revenue is realized. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2023-02-17 - Referred to Rules Committee [HB3754 Detail]
Download: Illinois-2023-HB3754-Introduced.html
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
1 | AN ACT concerning revenue.
| |||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| |||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||
4 | Section 5. The Illinois Income Tax Act is amended by | |||||||||||||||||||
5 | changing Section 901 as follows:
| |||||||||||||||||||
6 | (35 ILCS 5/901)
| |||||||||||||||||||
7 | Sec. 901. Collection authority. | |||||||||||||||||||
8 | (a) In general. The Department shall collect the taxes | |||||||||||||||||||
9 | imposed by this Act. The Department
shall collect certified | |||||||||||||||||||
10 | past due child support amounts under Section 2505-650
of the | |||||||||||||||||||
11 | Department of Revenue Law of the
Civil Administrative Code of | |||||||||||||||||||
12 | Illinois. Except as
provided in subsections (b), (c), (e), | |||||||||||||||||||
13 | (f), (g), and (h) of this Section, money collected
pursuant to | |||||||||||||||||||
14 | subsections (a) and (b) of Section 201 of this Act shall be
| |||||||||||||||||||
15 | paid into the General Revenue Fund in the State treasury; | |||||||||||||||||||
16 | money
collected pursuant to subsections (c) and (d) of Section | |||||||||||||||||||
17 | 201 of this Act
shall be paid into the Personal Property Tax | |||||||||||||||||||
18 | Replacement Fund, a special
fund in the State Treasury; and | |||||||||||||||||||
19 | money collected under Section 2505-650 of the
Department of | |||||||||||||||||||
20 | Revenue Law of the
Civil Administrative Code of Illinois shall | |||||||||||||||||||
21 | be paid
into the
Child Support Enforcement Trust Fund, a | |||||||||||||||||||
22 | special fund outside the State
Treasury, or
to the State
| |||||||||||||||||||
23 | Disbursement Unit established under Section 10-26 of the |
| |||||||
| |||||||
1 | Illinois Public Aid
Code, as directed by the Department of | ||||||
2 | Healthcare and Family Services. | ||||||
3 | (b) Local Government Distributive Fund. | ||||||
4 | Beginning August 1, 2017 and continuing through July 31, | ||||||
5 | 2022, the Treasurer shall transfer each month from the General | ||||||
6 | Revenue Fund to the Local Government Distributive Fund an | ||||||
7 | amount equal to the sum of: (i) 6.06% (10% of the ratio of the | ||||||
8 | 3% individual income tax rate prior to 2011 to the 4.95% | ||||||
9 | individual income tax rate after July 1, 2017) of the net | ||||||
10 | revenue realized from the tax imposed by subsections (a) and | ||||||
11 | (b) of Section 201 of this Act upon individuals, trusts, and | ||||||
12 | estates during the preceding month; (ii) 6.85% (10% of the | ||||||
13 | ratio of the 4.8% corporate income tax rate prior to 2011 to | ||||||
14 | the 7% corporate income tax rate after July 1, 2017) of the net | ||||||
15 | revenue realized from the tax imposed by subsections (a) and | ||||||
16 | (b) of Section 201 of this Act upon corporations during the | ||||||
17 | preceding month; and (iii) beginning February 1, 2022, 6.06% | ||||||
18 | of the net revenue realized from the tax imposed by subsection | ||||||
19 | (p) of Section 201 of this Act upon electing pass-through | ||||||
20 | entities. | ||||||
21 | Beginning August 1, 2022 and continuing through June 30, | ||||||
22 | 2023 , the Treasurer shall transfer each month from the General | ||||||
23 | Revenue Fund to the Local Government Distributive Fund an | ||||||
24 | amount equal to the sum of: (i) 6.16% of the net revenue | ||||||
25 | realized from the tax imposed by subsections (a) and (b) of | ||||||
26 | Section 201 of this Act upon individuals, trusts, and estates |
| |||||||
| |||||||
1 | during the preceding month; (ii) 6.85% of the net revenue | ||||||
2 | realized from the tax imposed by subsections (a) and (b) of | ||||||
3 | Section 201 of this Act upon corporations during the preceding | ||||||
4 | month; and (iii) 6.16% of the net revenue realized from the tax | ||||||
5 | imposed by subsection (p) of Section 201 of this Act upon | ||||||
6 | electing pass-through entities. | ||||||
7 | Beginning July 1, 2023, the Department shall deposit 10% | ||||||
8 | of the net revenue realized from the taxes imposed by | ||||||
9 | subsections (a), (b), and (p) of Section 201 directly into the | ||||||
10 | Local Government Distributive Fund as that revenue is | ||||||
11 | realized. | ||||||
12 | Net revenue realized for a month shall be defined as the
| ||||||
13 | revenue from the tax imposed by subsections (a) and (b) of | ||||||
14 | Section 201 of this
Act which is deposited in the General | ||||||
15 | Revenue Fund, the Education Assistance
Fund, the Income Tax | ||||||
16 | Surcharge Local Government Distributive Fund, the Fund for the | ||||||
17 | Advancement of Education, and the Commitment to Human Services | ||||||
18 | Fund during the
month minus the amount paid out of the General | ||||||
19 | Revenue Fund in State warrants
during that same month as | ||||||
20 | refunds to taxpayers for overpayment of liability
under the | ||||||
21 | tax imposed by subsections (a) and (b) of Section 201 of this | ||||||
22 | Act. | ||||||
23 | Notwithstanding any provision of law to the contrary, | ||||||
24 | beginning on July 6, 2017 (the effective date of Public Act | ||||||
25 | 100-23), those amounts required under this subsection (b) to | ||||||
26 | be transferred by the Treasurer into the Local Government |
| |||||||
| |||||||
1 | Distributive Fund from the General Revenue Fund shall be | ||||||
2 | directly deposited into the Local Government Distributive Fund | ||||||
3 | as the revenue is realized from the tax imposed by subsections | ||||||
4 | (a) and (b) of Section 201 of this Act. | ||||||
5 | (c) Deposits Into Income Tax Refund Fund. | ||||||
6 | (1) Beginning on January 1, 1989 and thereafter, the | ||||||
7 | Department shall
deposit a percentage of the amounts | ||||||
8 | collected pursuant to subsections (a)
and (b)(1), (2), and | ||||||
9 | (3) of Section 201 of this Act into a fund in the State
| ||||||
10 | treasury known as the Income Tax Refund Fund. Beginning | ||||||
11 | with State fiscal year 1990 and for each fiscal year
| ||||||
12 | thereafter, the percentage deposited into the Income Tax | ||||||
13 | Refund Fund during a
fiscal year shall be the Annual | ||||||
14 | Percentage. For fiscal year 2011, the Annual Percentage | ||||||
15 | shall be 8.75%. For fiscal year 2012, the Annual | ||||||
16 | Percentage shall be 8.75%. For fiscal year 2013, the | ||||||
17 | Annual Percentage shall be 9.75%. For fiscal year 2014, | ||||||
18 | the Annual Percentage shall be 9.5%. For fiscal year 2015, | ||||||
19 | the Annual Percentage shall be 10%. For fiscal year 2018, | ||||||
20 | the Annual Percentage shall be 9.8%. For fiscal year 2019, | ||||||
21 | the Annual Percentage shall be 9.7%. For fiscal year 2020, | ||||||
22 | the Annual Percentage shall be 9.5%. For fiscal year 2021, | ||||||
23 | the Annual Percentage shall be 9%. For fiscal year 2022, | ||||||
24 | the Annual Percentage shall be 9.25%. For fiscal year | ||||||
25 | 2023, the Annual Percentage shall be 9.25%. For all other
| ||||||
26 | fiscal years, the
Annual Percentage shall be calculated as |
| |||||||
| |||||||
1 | a fraction, the numerator of which
shall be the amount of | ||||||
2 | refunds approved for payment by the Department during
the | ||||||
3 | preceding fiscal year as a result of overpayment of tax | ||||||
4 | liability under
subsections (a) and (b)(1), (2), and (3) | ||||||
5 | of Section 201 of this Act plus the
amount of such refunds | ||||||
6 | remaining approved but unpaid at the end of the
preceding | ||||||
7 | fiscal year, minus the amounts transferred into the Income | ||||||
8 | Tax
Refund Fund from the Tobacco Settlement Recovery Fund, | ||||||
9 | and
the denominator of which shall be the amounts which | ||||||
10 | will be collected pursuant
to subsections (a) and (b)(1), | ||||||
11 | (2), and (3) of Section 201 of this Act during
the | ||||||
12 | preceding fiscal year; except that in State fiscal year | ||||||
13 | 2002, the Annual
Percentage shall in no event exceed 7.6%. | ||||||
14 | The Director of Revenue shall
certify the Annual | ||||||
15 | Percentage to the Comptroller on the last business day of
| ||||||
16 | the fiscal year immediately preceding the fiscal year for | ||||||
17 | which it is to be
effective. | ||||||
18 | (2) Beginning on January 1, 1989 and thereafter, the | ||||||
19 | Department shall
deposit a percentage of the amounts | ||||||
20 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
21 | (8), (c) and (d) of Section 201
of this Act into a fund in | ||||||
22 | the State treasury known as the Income Tax
Refund Fund. | ||||||
23 | Beginning
with State fiscal year 1990 and for each fiscal | ||||||
24 | year thereafter, the
percentage deposited into the Income | ||||||
25 | Tax Refund Fund during a fiscal year
shall be the Annual | ||||||
26 | Percentage. For fiscal year 2011, the Annual Percentage |
| |||||||
| |||||||
1 | shall be 17.5%. For fiscal year 2012, the Annual | ||||||
2 | Percentage shall be 17.5%. For fiscal year 2013, the | ||||||
3 | Annual Percentage shall be 14%. For fiscal year 2014, the | ||||||
4 | Annual Percentage shall be 13.4%. For fiscal year 2015, | ||||||
5 | the Annual Percentage shall be 14%. For fiscal year 2018, | ||||||
6 | the Annual Percentage shall be 17.5%. For fiscal year | ||||||
7 | 2019, the Annual Percentage shall be 15.5%. For fiscal | ||||||
8 | year 2020, the Annual Percentage shall be 14.25%. For | ||||||
9 | fiscal year 2021, the Annual Percentage shall be 14%. For | ||||||
10 | fiscal year 2022, the Annual Percentage shall be 15%. For | ||||||
11 | fiscal year 2023, the Annual Percentage shall be 14.5%. | ||||||
12 | For all other fiscal years, the Annual
Percentage shall be | ||||||
13 | calculated
as a fraction, the numerator of which shall be | ||||||
14 | the amount of refunds
approved for payment by the | ||||||
15 | Department during the preceding fiscal year as
a result of | ||||||
16 | overpayment of tax liability under subsections (a) and | ||||||
17 | (b)(6),
(7), and (8), (c) and (d) of Section 201 of this | ||||||
18 | Act plus the
amount of such refunds remaining approved but | ||||||
19 | unpaid at the end of the
preceding fiscal year, and the | ||||||
20 | denominator of
which shall be the amounts which will be | ||||||
21 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
22 | (8), (c) and (d) of Section 201 of this Act during the
| ||||||
23 | preceding fiscal year; except that in State fiscal year | ||||||
24 | 2002, the Annual
Percentage shall in no event exceed 23%. | ||||||
25 | The Director of Revenue shall
certify the Annual | ||||||
26 | Percentage to the Comptroller on the last business day of
|
| |||||||
| |||||||
1 | the fiscal year immediately preceding the fiscal year for | ||||||
2 | which it is to be
effective. | ||||||
3 | (3) The Comptroller shall order transferred and the | ||||||
4 | Treasurer shall
transfer from the Tobacco Settlement | ||||||
5 | Recovery Fund to the Income Tax Refund
Fund (i) | ||||||
6 | $35,000,000 in January, 2001, (ii) $35,000,000 in January, | ||||||
7 | 2002, and
(iii) $35,000,000 in January, 2003. | ||||||
8 | (d) Expenditures from Income Tax Refund Fund. | ||||||
9 | (1) Beginning January 1, 1989, money in the Income Tax | ||||||
10 | Refund Fund
shall be expended exclusively for the purpose | ||||||
11 | of paying refunds resulting
from overpayment of tax | ||||||
12 | liability under Section 201 of this Act
and for
making | ||||||
13 | transfers pursuant to this subsection (d), except that in | ||||||
14 | State fiscal years 2022 and 2023, moneys in the Income Tax | ||||||
15 | Refund Fund shall also be used to pay one-time rebate | ||||||
16 | payments as provided under Sections 208.5 and 212.1. | ||||||
17 | (2) The Director shall order payment of refunds | ||||||
18 | resulting from
overpayment of tax liability under Section | ||||||
19 | 201 of this Act from the
Income Tax Refund Fund only to the | ||||||
20 | extent that amounts collected pursuant
to Section 201 of | ||||||
21 | this Act and transfers pursuant to this subsection (d)
and | ||||||
22 | item (3) of subsection (c) have been deposited and | ||||||
23 | retained in the
Fund. | ||||||
24 | (3) As soon as possible after the end of each fiscal | ||||||
25 | year, the Director
shall
order transferred and the State | ||||||
26 | Treasurer and State Comptroller shall
transfer from the |
| |||||||
| |||||||
1 | Income Tax Refund Fund to the Personal Property Tax
| ||||||
2 | Replacement Fund an amount, certified by the Director to | ||||||
3 | the Comptroller,
equal to the excess of the amount | ||||||
4 | collected pursuant to subsections (c) and
(d) of Section | ||||||
5 | 201 of this Act deposited into the Income Tax Refund Fund
| ||||||
6 | during the fiscal year over the amount of refunds | ||||||
7 | resulting from
overpayment of tax liability under | ||||||
8 | subsections (c) and (d) of Section 201
of this Act paid | ||||||
9 | from the Income Tax Refund Fund during the fiscal year. | ||||||
10 | (4) As soon as possible after the end of each fiscal | ||||||
11 | year, the Director shall
order transferred and the State | ||||||
12 | Treasurer and State Comptroller shall
transfer from the | ||||||
13 | Personal Property Tax Replacement Fund to the Income Tax
| ||||||
14 | Refund Fund an amount, certified by the Director to the | ||||||
15 | Comptroller, equal
to the excess of the amount of refunds | ||||||
16 | resulting from overpayment of tax
liability under | ||||||
17 | subsections (c) and (d) of Section 201 of this Act paid
| ||||||
18 | from the Income Tax Refund Fund during the fiscal year | ||||||
19 | over the amount
collected pursuant to subsections (c) and | ||||||
20 | (d) of Section 201 of this Act
deposited into the Income | ||||||
21 | Tax Refund Fund during the fiscal year. | ||||||
22 | (4.5) As soon as possible after the end of fiscal year | ||||||
23 | 1999 and of each
fiscal year
thereafter, the Director | ||||||
24 | shall order transferred and the State Treasurer and
State | ||||||
25 | Comptroller shall transfer from the Income Tax Refund Fund | ||||||
26 | to the General
Revenue Fund any surplus remaining in the |
| |||||||
| |||||||
1 | Income Tax Refund Fund as of the end
of such fiscal year; | ||||||
2 | excluding for fiscal years 2000, 2001, and 2002
amounts | ||||||
3 | attributable to transfers under item (3) of subsection (c) | ||||||
4 | less refunds
resulting from the earned income tax credit, | ||||||
5 | and excluding for fiscal year 2022 amounts attributable to | ||||||
6 | transfers from the General Revenue Fund authorized by | ||||||
7 | Public Act 102-700 this amendatory Act of the 102nd | ||||||
8 | General Assembly . | ||||||
9 | (5) This Act shall constitute an irrevocable and | ||||||
10 | continuing
appropriation from the Income Tax Refund Fund | ||||||
11 | for the purposes of (i) paying
refunds upon the order of | ||||||
12 | the Director in accordance with the provisions of
this | ||||||
13 | Section and (ii) paying one-time rebate payments under | ||||||
14 | Sections 208.5 and 212.1. | ||||||
15 | (e) Deposits into the Education Assistance Fund and the | ||||||
16 | Income Tax
Surcharge Local Government Distributive Fund. On | ||||||
17 | July 1, 1991, and thereafter, of the amounts collected | ||||||
18 | pursuant to
subsections (a) and (b) of Section 201 of this Act, | ||||||
19 | minus deposits into the
Income Tax Refund Fund, the Department | ||||||
20 | shall deposit 7.3% into the
Education Assistance Fund in the | ||||||
21 | State Treasury. Beginning July 1, 1991,
and continuing through | ||||||
22 | January 31, 1993, of the amounts collected pursuant to
| ||||||
23 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
24 | Tax Act, minus
deposits into the Income Tax Refund Fund, the | ||||||
25 | Department shall deposit 3.0%
into the Income Tax Surcharge | ||||||
26 | Local Government Distributive Fund in the State
Treasury. |
| |||||||
| |||||||
1 | Beginning February 1, 1993 and continuing through June 30, | ||||||
2 | 1993, of
the amounts collected pursuant to subsections (a) and | ||||||
3 | (b) of Section 201 of the
Illinois Income Tax Act, minus | ||||||
4 | deposits into the Income Tax Refund Fund, the
Department shall | ||||||
5 | deposit 4.4% into the Income Tax Surcharge Local Government
| ||||||
6 | Distributive Fund in the State Treasury. Beginning July 1, | ||||||
7 | 1993, and
continuing through June 30, 1994, of the amounts | ||||||
8 | collected under subsections
(a) and (b) of Section 201 of this | ||||||
9 | Act, minus deposits into the Income Tax
Refund Fund, the | ||||||
10 | Department shall deposit 1.475% into the Income Tax Surcharge
| ||||||
11 | Local Government Distributive Fund in the State Treasury. | ||||||
12 | (f) Deposits into the Fund for the Advancement of | ||||||
13 | Education. Beginning February 1, 2015, the Department shall | ||||||
14 | deposit the following portions of the revenue realized from | ||||||
15 | the tax imposed upon individuals, trusts, and estates by | ||||||
16 | subsections (a) and (b) of Section 201 of this Act, minus | ||||||
17 | deposits into the Income Tax Refund Fund, into the Fund for the | ||||||
18 | Advancement of Education: | ||||||
19 | (1) beginning February 1, 2015, and prior to February | ||||||
20 | 1, 2025, 1/30; and | ||||||
21 | (2) beginning February 1, 2025, 1/26. | ||||||
22 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
23 | Section 201 is reduced pursuant to Section 201.5 of this Act, | ||||||
24 | the Department shall not make the deposits required by this | ||||||
25 | subsection (f) on or after the effective date of the | ||||||
26 | reduction. |
| |||||||
| |||||||
1 | (g) Deposits into the Commitment to Human Services Fund. | ||||||
2 | Beginning February 1, 2015, the Department shall deposit the | ||||||
3 | following portions of the revenue realized from the tax | ||||||
4 | imposed upon individuals, trusts, and estates by subsections | ||||||
5 | (a) and (b) of Section 201 of this Act, minus deposits into the | ||||||
6 | Income Tax Refund Fund, into the Commitment to Human Services | ||||||
7 | Fund: | ||||||
8 | (1) beginning February 1, 2015, and prior to February | ||||||
9 | 1, 2025, 1/30; and | ||||||
10 | (2) beginning February 1, 2025, 1/26. | ||||||
11 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
12 | Section 201 is reduced pursuant to Section 201.5 of this Act, | ||||||
13 | the Department shall not make the deposits required by this | ||||||
14 | subsection (g) on or after the effective date of the | ||||||
15 | reduction. | ||||||
16 | (h) Deposits into the Tax Compliance and Administration | ||||||
17 | Fund. Beginning on the first day of the first calendar month to | ||||||
18 | occur on or after August 26, 2014 (the effective date of Public | ||||||
19 | Act 98-1098), each month the Department shall pay into the Tax | ||||||
20 | Compliance and Administration Fund, to be used, subject to | ||||||
21 | appropriation, to fund additional auditors and compliance | ||||||
22 | personnel at the Department, an amount equal to 1/12 of 5% of | ||||||
23 | the cash receipts collected during the preceding fiscal year | ||||||
24 | by the Audit Bureau of the Department from the tax imposed by | ||||||
25 | subsections (a), (b), (c), and (d) of Section 201 of this Act, | ||||||
26 | net of deposits into the Income Tax Refund Fund made from those |
| |||||||
| |||||||
1 | cash receipts. | ||||||
2 | (Source: P.A. 101-8, see Section 99 for effective date; | ||||||
3 | 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-636, eff. | ||||||
4 | 6-10-20; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658, | ||||||
5 | eff. 8-27-21; 102-699, eff. 4-19-22; 102-700, eff. 4-19-22; | ||||||
6 | 102-813, eff. 5-13-22; revised 8-2-22.)
| ||||||
7 | Section 99. Effective date. This Act takes effect upon | ||||||
8 | becoming law.
|