103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3169

 

Introduced 2/17/2023, by Rep. Amy Elik

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/208.7 new
35 ILCS 5/901
30 ILCS 105/5.990 new
5 ILCS 100/5-45.35 new

    Amends the Illinois Income Tax Act. Provides that the Department of Revenue shall pay an annual rebate to each individual taxpayer who files an Illinois income tax return with the Department on or before the second Friday in October of the calendar year for which the rebate is made. Provides that surplus moneys in the Income Tax Refund Fund shall be transferred to the Illinois Individual Income Tax Rebate Fund (currently, the General Revenue Fund). Creates the Illinois Individual Income Tax Rebate Fund. Provides that moneys in the Fund shall be used for the purpose of paying rebates. Effective immediately.


LRB103 27400 HLH 53772 b

 

 

A BILL FOR

 

HB3169LRB103 27400 HLH 53772 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 and by adding Section 208.7 as follows:
 
6    (35 ILCS 5/208.7 new)
7    Sec. 208.7. Illinois Individual Income Tax Rebate Fund;
8individual income tax rebate program.
9    (a) The Illinois Individual Income Tax Rebate Fund is
10hereby created as a special fund in the State treasury. Moneys
11in the Fund shall be used for the purpose of paying rebates
12under this Section.
13    (b) Beginning in 2023, the Department shall pay an annual
14rebate to each individual taxpayer who files an Illinois
15income tax return with the Department on or before the second
16Friday in October of the calendar year for which the rebate is
17made. Each person who is entitled to a rebate under this
18Section shall receive an equal portion of the moneys
19transferred from the Income Tax Refund Fund to the Illinois
20Individual Income Tax Rebate Fund under paragraph (4.6) of
21subsection (c) of Section 901. By August 1 of each calendar
22year, the Department shall begin to certify to the
23Comptroller, on a rolling basis, the names of the taxpayers

 

 

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1who are eligible for a rebate under this Section, the amounts
2of those rebates, and any other information that the
3Comptroller requires to direct the payment of the rebates
4provided under this Section to taxpayers.
5    (c) The amount of a rebate under this Section shall not be
6included in the taxpayer's income or resources for the
7purposes of determining eligibility or benefit level in any
8means-tested benefit program administered by a governmental
9entity unless required by federal law.
 
10    (35 ILCS 5/901)
11    Sec. 901. Collection authority.
12    (a) In general. The Department shall collect the taxes
13imposed by this Act. The Department shall collect certified
14past due child support amounts under Section 2505-650 of the
15Department of Revenue Law of the Civil Administrative Code of
16Illinois. Except as provided in subsections (b), (c), (e),
17(f), (g), and (h) of this Section, money collected pursuant to
18subsections (a) and (b) of Section 201 of this Act shall be
19paid into the General Revenue Fund in the State treasury;
20money collected pursuant to subsections (c) and (d) of Section
21201 of this Act shall be paid into the Personal Property Tax
22Replacement Fund, a special fund in the State Treasury; and
23money collected under Section 2505-650 of the Department of
24Revenue Law of the Civil Administrative Code of Illinois shall
25be paid into the Child Support Enforcement Trust Fund, a

 

 

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1special fund outside the State Treasury, or to the State
2Disbursement Unit established under Section 10-26 of the
3Illinois Public Aid Code, as directed by the Department of
4Healthcare and Family Services.
5    (b) Local Government Distributive Fund. Beginning August
61, 2017 and continuing through July 31, 2022, the Treasurer
7shall transfer each month from the General Revenue Fund to the
8Local Government Distributive Fund an amount equal to the sum
9of: (i) 6.06% (10% of the ratio of the 3% individual income tax
10rate prior to 2011 to the 4.95% individual income tax rate
11after July 1, 2017) of the net revenue realized from the tax
12imposed by subsections (a) and (b) of Section 201 of this Act
13upon individuals, trusts, and estates during the preceding
14month; (ii) 6.85% (10% of the ratio of the 4.8% corporate
15income tax rate prior to 2011 to the 7% corporate income tax
16rate after July 1, 2017) of the net revenue realized from the
17tax imposed by subsections (a) and (b) of Section 201 of this
18Act upon corporations during the preceding month; and (iii)
19beginning February 1, 2022, 6.06% of the net revenue realized
20from the tax imposed by subsection (p) of Section 201 of this
21Act upon electing pass-through entities. Beginning August 1,
222022, the Treasurer shall transfer each month from the General
23Revenue Fund to the Local Government Distributive Fund an
24amount equal to the sum of: (i) 6.16% of the net revenue
25realized from the tax imposed by subsections (a) and (b) of
26Section 201 of this Act upon individuals, trusts, and estates

 

 

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1during the preceding month; (ii) 6.85% of the net revenue
2realized from the tax imposed by subsections (a) and (b) of
3Section 201 of this Act upon corporations during the preceding
4month; and (iii) 6.16% of the net revenue realized from the tax
5imposed by subsection (p) of Section 201 of this Act upon
6electing pass-through entities. Net revenue realized for a
7month shall be defined as the revenue from the tax imposed by
8subsections (a) and (b) of Section 201 of this Act which is
9deposited in the General Revenue Fund, the Education
10Assistance Fund, the Income Tax Surcharge Local Government
11Distributive Fund, the Fund for the Advancement of Education,
12and the Commitment to Human Services Fund during the month
13minus the amount paid out of the General Revenue Fund in State
14warrants during that same month as refunds to taxpayers for
15overpayment of liability under the tax imposed by subsections
16(a) and (b) of Section 201 of this Act.
17    Notwithstanding any provision of law to the contrary,
18beginning on July 6, 2017 (the effective date of Public Act
19100-23), those amounts required under this subsection (b) to
20be transferred by the Treasurer into the Local Government
21Distributive Fund from the General Revenue Fund shall be
22directly deposited into the Local Government Distributive Fund
23as the revenue is realized from the tax imposed by subsections
24(a) and (b) of Section 201 of this Act.
25    (c) Deposits Into Income Tax Refund Fund.
26        (1) Beginning on January 1, 1989 and thereafter, the

 

 

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1    Department shall deposit a percentage of the amounts
2    collected pursuant to subsections (a) and (b)(1), (2), and
3    (3) of Section 201 of this Act into a fund in the State
4    treasury known as the Income Tax Refund Fund. Beginning
5    with State fiscal year 1990 and for each fiscal year
6    thereafter, the percentage deposited into the Income Tax
7    Refund Fund during a fiscal year shall be the Annual
8    Percentage. For fiscal year 2011, the Annual Percentage
9    shall be 8.75%. For fiscal year 2012, the Annual
10    Percentage shall be 8.75%. For fiscal year 2013, the
11    Annual Percentage shall be 9.75%. For fiscal year 2014,
12    the Annual Percentage shall be 9.5%. For fiscal year 2015,
13    the Annual Percentage shall be 10%. For fiscal year 2018,
14    the Annual Percentage shall be 9.8%. For fiscal year 2019,
15    the Annual Percentage shall be 9.7%. For fiscal year 2020,
16    the Annual Percentage shall be 9.5%. For fiscal year 2021,
17    the Annual Percentage shall be 9%. For fiscal year 2022,
18    the Annual Percentage shall be 9.25%. For fiscal year
19    2023, the Annual Percentage shall be 9.25%. For all other
20    fiscal years, the Annual Percentage shall be calculated as
21    a fraction, the numerator of which shall be the amount of
22    refunds approved for payment by the Department during the
23    preceding fiscal year as a result of overpayment of tax
24    liability under subsections (a) and (b)(1), (2), and (3)
25    of Section 201 of this Act plus the amount of such refunds
26    remaining approved but unpaid at the end of the preceding

 

 

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1    fiscal year, minus the amounts transferred into the Income
2    Tax Refund Fund from the Tobacco Settlement Recovery Fund,
3    and the denominator of which shall be the amounts which
4    will be collected pursuant to subsections (a) and (b)(1),
5    (2), and (3) of Section 201 of this Act during the
6    preceding fiscal year; except that in State fiscal year
7    2002, the Annual Percentage shall in no event exceed 7.6%.
8    The Director of Revenue shall certify the Annual
9    Percentage to the Comptroller on the last business day of
10    the fiscal year immediately preceding the fiscal year for
11    which it is to be effective.
12        (2) Beginning on January 1, 1989 and thereafter, the
13    Department shall deposit a percentage of the amounts
14    collected pursuant to subsections (a) and (b)(6), (7), and
15    (8), (c) and (d) of Section 201 of this Act into a fund in
16    the State treasury known as the Income Tax Refund Fund.
17    Beginning with State fiscal year 1990 and for each fiscal
18    year thereafter, the percentage deposited into the Income
19    Tax Refund Fund during a fiscal year shall be the Annual
20    Percentage. For fiscal year 2011, the Annual Percentage
21    shall be 17.5%. For fiscal year 2012, the Annual
22    Percentage shall be 17.5%. For fiscal year 2013, the
23    Annual Percentage shall be 14%. For fiscal year 2014, the
24    Annual Percentage shall be 13.4%. For fiscal year 2015,
25    the Annual Percentage shall be 14%. For fiscal year 2018,
26    the Annual Percentage shall be 17.5%. For fiscal year

 

 

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1    2019, the Annual Percentage shall be 15.5%. For fiscal
2    year 2020, the Annual Percentage shall be 14.25%. For
3    fiscal year 2021, the Annual Percentage shall be 14%. For
4    fiscal year 2022, the Annual Percentage shall be 15%. For
5    fiscal year 2023, the Annual Percentage shall be 14.5%.
6    For all other fiscal years, the Annual Percentage shall be
7    calculated as a fraction, the numerator of which shall be
8    the amount of refunds approved for payment by the
9    Department during the preceding fiscal year as a result of
10    overpayment of tax liability under subsections (a) and
11    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
12    Act plus the amount of such refunds remaining approved but
13    unpaid at the end of the preceding fiscal year, and the
14    denominator of which shall be the amounts which will be
15    collected pursuant to subsections (a) and (b)(6), (7), and
16    (8), (c) and (d) of Section 201 of this Act during the
17    preceding fiscal year; except that in State fiscal year
18    2002, the Annual Percentage shall in no event exceed 23%.
19    The Director of Revenue shall certify the Annual
20    Percentage to the Comptroller on the last business day of
21    the fiscal year immediately preceding the fiscal year for
22    which it is to be effective.
23        (3) The Comptroller shall order transferred and the
24    Treasurer shall transfer from the Tobacco Settlement
25    Recovery Fund to the Income Tax Refund Fund (i)
26    $35,000,000 in January, 2001, (ii) $35,000,000 in January,

 

 

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1    2002, and (iii) $35,000,000 in January, 2003.
2    (d) Expenditures from Income Tax Refund Fund.
3        (1) Beginning January 1, 1989, money in the Income Tax
4    Refund Fund shall be expended exclusively for the purpose
5    of paying refunds resulting from overpayment of tax
6    liability under Section 201 of this Act and for making
7    transfers pursuant to this subsection (d), except that in
8    State fiscal years 2022 and 2023, moneys in the Income Tax
9    Refund Fund shall also be used to pay one-time rebate
10    payments as provided under Sections 208.5 and 212.1.
11        (2) The Director shall order payment of refunds
12    resulting from overpayment of tax liability under Section
13    201 of this Act from the Income Tax Refund Fund only to the
14    extent that amounts collected pursuant to Section 201 of
15    this Act and transfers pursuant to this subsection (d) and
16    item (3) of subsection (c) have been deposited and
17    retained in the Fund.
18        (3) As soon as possible after the end of each fiscal
19    year, the Director shall order transferred and the State
20    Treasurer and State Comptroller shall transfer from the
21    Income Tax Refund Fund to the Personal Property Tax
22    Replacement Fund an amount, certified by the Director to
23    the Comptroller, equal to the excess of the amount
24    collected pursuant to subsections (c) and (d) of Section
25    201 of this Act deposited into the Income Tax Refund Fund
26    during the fiscal year over the amount of refunds

 

 

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1    resulting from overpayment of tax liability under
2    subsections (c) and (d) of Section 201 of this Act paid
3    from the Income Tax Refund Fund during the fiscal year.
4        (4) As soon as possible after the end of each fiscal
5    year, the Director shall order transferred and the State
6    Treasurer and State Comptroller shall transfer from the
7    Personal Property Tax Replacement Fund to the Income Tax
8    Refund Fund an amount, certified by the Director to the
9    Comptroller, equal to the excess of the amount of refunds
10    resulting from overpayment of tax liability under
11    subsections (c) and (d) of Section 201 of this Act paid
12    from the Income Tax Refund Fund during the fiscal year
13    over the amount collected pursuant to subsections (c) and
14    (d) of Section 201 of this Act deposited into the Income
15    Tax Refund Fund during the fiscal year.
16        (4.5) As soon as possible after the end of fiscal year
17    1999 and of each fiscal year thereafter through fiscal
18    year 2022, the Director shall order transferred and the
19    State Treasurer and State Comptroller shall transfer from
20    the Income Tax Refund Fund to the General Revenue Fund any
21    surplus remaining in the Income Tax Refund Fund as of the
22    end of such fiscal year; excluding for fiscal years 2000,
23    2001, and 2002 amounts attributable to transfers under
24    item (3) of subsection (c) less refunds resulting from the
25    earned income tax credit, and excluding for fiscal year
26    2022 amounts attributable to transfers from the General

 

 

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1    Revenue Fund authorized by Public Act 102-700 this
2    amendatory Act of the 102nd General Assembly.
3        (4.6) As soon as possible after the end of fiscal year
4    2023 and of each fiscal year thereafter, the Director
5    shall order transferred and the State Treasurer and State
6    Comptroller shall transfer from the Income Tax Refund Fund
7    to the Illinois Individual Income Tax Rebate Fund any
8    surplus remaining in the Income Tax Refund Fund as of the
9    end of that fiscal year.
10        (5) This Act shall constitute an irrevocable and
11    continuing appropriation from the Income Tax Refund Fund
12    for the purposes of (i) paying refunds upon the order of
13    the Director in accordance with the provisions of this
14    Section and (ii) paying one-time rebate payments under
15    Sections 208.5 and 212.1.
16    (e) Deposits into the Education Assistance Fund and the
17Income Tax Surcharge Local Government Distributive Fund. On
18July 1, 1991, and thereafter, of the amounts collected
19pursuant to subsections (a) and (b) of Section 201 of this Act,
20minus deposits into the Income Tax Refund Fund, the Department
21shall deposit 7.3% into the Education Assistance Fund in the
22State Treasury. Beginning July 1, 1991, and continuing through
23January 31, 1993, of the amounts collected pursuant to
24subsections (a) and (b) of Section 201 of the Illinois Income
25Tax Act, minus deposits into the Income Tax Refund Fund, the
26Department shall deposit 3.0% into the Income Tax Surcharge

 

 

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1Local Government Distributive Fund in the State Treasury.
2Beginning February 1, 1993 and continuing through June 30,
31993, of the amounts collected pursuant to subsections (a) and
4(b) of Section 201 of the Illinois Income Tax Act, minus
5deposits into the Income Tax Refund Fund, the Department shall
6deposit 4.4% into the Income Tax Surcharge Local Government
7Distributive Fund in the State Treasury. Beginning July 1,
81993, and continuing through June 30, 1994, of the amounts
9collected under subsections (a) and (b) of Section 201 of this
10Act, minus deposits into the Income Tax Refund Fund, the
11Department shall deposit 1.475% into the Income Tax Surcharge
12Local Government Distributive Fund in the State Treasury.
13    (f) Deposits into the Fund for the Advancement of
14Education. Beginning February 1, 2015, the Department shall
15deposit the following portions of the revenue realized from
16the tax imposed upon individuals, trusts, and estates by
17subsections (a) and (b) of Section 201 of this Act, minus
18deposits into the Income Tax Refund Fund, into the Fund for the
19Advancement of Education:
20        (1) beginning February 1, 2015, and prior to February
21    1, 2025, 1/30; and
22        (2) beginning February 1, 2025, 1/26.
23    If the rate of tax imposed by subsection (a) and (b) of
24Section 201 is reduced pursuant to Section 201.5 of this Act,
25the Department shall not make the deposits required by this
26subsection (f) on or after the effective date of the

 

 

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1reduction.
2    (g) Deposits into the Commitment to Human Services Fund.
3Beginning February 1, 2015, the Department shall deposit the
4following portions of the revenue realized from the tax
5imposed upon individuals, trusts, and estates by subsections
6(a) and (b) of Section 201 of this Act, minus deposits into the
7Income Tax Refund Fund, into the Commitment to Human Services
8Fund:
9        (1) beginning February 1, 2015, and prior to February
10    1, 2025, 1/30; and
11        (2) beginning February 1, 2025, 1/26.
12    If the rate of tax imposed by subsection (a) and (b) of
13Section 201 is reduced pursuant to Section 201.5 of this Act,
14the Department shall not make the deposits required by this
15subsection (g) on or after the effective date of the
16reduction.
17    (h) Deposits into the Tax Compliance and Administration
18Fund. Beginning on the first day of the first calendar month to
19occur on or after August 26, 2014 (the effective date of Public
20Act 98-1098), each month the Department shall pay into the Tax
21Compliance and Administration Fund, to be used, subject to
22appropriation, to fund additional auditors and compliance
23personnel at the Department, an amount equal to 1/12 of 5% of
24the cash receipts collected during the preceding fiscal year
25by the Audit Bureau of the Department from the tax imposed by
26subsections (a), (b), (c), and (d) of Section 201 of this Act,

 

 

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1net of deposits into the Income Tax Refund Fund made from those
2cash receipts.
3(Source: P.A. 101-8, see Section 99 for effective date;
4101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-636, eff.
56-10-20; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658,
6eff. 8-27-21; 102-699, eff. 4-19-22; 102-700, eff. 4-19-22;
7102-813, eff. 5-13-22; revised 8-2-22.)
 
8    Section 10. The State Finance Act is amended by adding
9Section 5.990 as follows:
 
10    (30 ILCS 105/5.990 new)
11    Sec. 5.990. The Illinois Individual Income Tax Rebate
12Fund.
 
13    Section 15. The Illinois Administrative Procedure Act is
14amended by adding Section 5-45.35 as follows:
 
15    (5 ILCS 100/5-45.35 new)
16    Sec. 5-45.35. Emergency rulemaking. To provide for the
17expeditious and timely implementation of this amendatory Act
18of the 103rd General Assembly, emergency rules implementing
19this amendatory Act of the 103rd General Assembly may be
20adopted in accordance with Section 5-45 by the Department of
21Revenue. The adoption of emergency rules authorized by Section
225-45 and this Section is deemed to be necessary for the public

 

 

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1interest, safety, and welfare.
2    This Section is repealed one year after the effective date
3of this amendatory Act of the 103rd General Assembly.
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.