(30 ILCS 105/6z-130)

(Section scheduled to be repealed on January 1, 2024)

Sec. 6z-130. Grocery Tax Replacement Fund.

(a) The Grocery Tax Replacement Fund is hereby created as a special fund in the State Treasury.

(b) On April 19, 2022 (the effective date of Public Act 102-700), or as soon thereafter as practical, but no later than June 30, 2022, the State Comptroller shall direct and the State Treasurer shall transfer the sum of $325,000,000 from the General Revenue Fund to the Grocery Tax Replacement Fund.

(c) On July 1, 2022, or as soon thereafter as practical, the State Comptroller shall direct and the State Treasurer shall transfer the sum of $75,000,000 from the General Revenue Fund to the Grocery Tax Replacement Fund.

(d) In addition to any other transfers that may be provided for by law, beginning on April 19, 2022 (the effective date of Public Act 102-700) and until November 30, 2023, the Director may certify additional transfer amounts needed beyond the amounts specified in subsections (b) and (c) to cover any additional amounts needed to equal the net revenue that, but for the reduction of the rate to 0% in the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act under Public Act 102-700, would have been realized if the items that are subject to the rate reduction had been taxed at the 1% rate during the period of the reduction. The State Comptroller shall direct and the State Treasurer shall transfer the amounts certified by the Director from the General Revenue Fund to the Grocery Tax Replacement Fund.

(e) In addition to any other transfers that may be provided for by law, beginning on July 1, 2022 and until December 1, 2023, at the direction of the Department of Revenue, the State Comptroller shall direct and the State Treasurer shall transfer from the Grocery Tax Replacement Fund to the State and Local Sales Tax Reform Fund any amounts needed to equal the net revenue that, but for the reduction of the rate to 0% in the Use Tax Act and Service Use Tax Act under Public Act 102-700, would have been deposited into the State and Local Sales Tax Reform Fund if the items that are subject to the rate reduction had been taxed at the 1% rate during the period of the reduction.

(f) In addition to any other transfers that may be provided for by law, beginning on July 1, 2022 and until December 1, 2023, at the direction of the Department of Revenue, the State Comptroller shall direct and the State Treasurer shall transfer from the Grocery Tax Replacement Fund to the Local Government Tax Fund any amounts needed to equal the net revenue that, but for the reduction of the rate to 0% in the Service Occupation Tax Act and the Retailers' Occupation Tax Act under Public Act 102-700, would have been deposited into the Local Government Tax Fund if the items that are subject to the rate reduction had been taxed at the 1% rate during the period of the reduction.

(g) The State Comptroller shall direct and the State Treasurer shall transfer the remaining balance in the Grocery Tax Replacement Fund to the General Revenue Fund on December 1, 2023, or as soon thereafter as practical. Upon completion of the transfer, the Grocery Tax Replacement Fund is dissolved.

(h) This Section is repealed on January 1, 2024.

(Source: P.A. 102-700, eff. 4-19-22; 103-154, eff. 6-30-23.)