103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4849

 

Introduced 2/7/2024, by Rep. Tony M. McCombie

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/901

    Amends the Illinois Income Tax Act. Increases the amount transferred from the General Revenue Fund to the Local Government Distributive Fund. Effective immediately.


LRB103 34199 HLH 64022 b

 

 

A BILL FOR

 

HB4849LRB103 34199 HLH 64022 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 as follows:
 
6    (35 ILCS 5/901)
7    Sec. 901. Collection authority.
8    (a) In general. The Department shall collect the taxes
9imposed by this Act. The Department shall collect certified
10past due child support amounts under Section 2505-650 of the
11Department of Revenue Law of the Civil Administrative Code of
12Illinois. Except as provided in subsections (b), (c), (e),
13(f), (g), and (h) of this Section, money collected pursuant to
14subsections (a) and (b) of Section 201 of this Act shall be
15paid into the General Revenue Fund in the State treasury;
16money collected pursuant to subsections (c) and (d) of Section
17201 of this Act shall be paid into the Personal Property Tax
18Replacement Fund, a special fund in the State Treasury; and
19money collected under Section 2505-650 of the Department of
20Revenue Law of the Civil Administrative Code of Illinois shall
21be paid into the Child Support Enforcement Trust Fund, a
22special fund outside the State Treasury, or to the State
23Disbursement Unit established under Section 10-26 of the

 

 

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1Illinois Public Aid Code, as directed by the Department of
2Healthcare and Family Services.
3    (b) Local Government Distributive Fund.
4        (1) Beginning August 1, 2017 and continuing through
5    July 31, 2022, the Treasurer shall transfer each month
6    from the General Revenue Fund to the Local Government
7    Distributive Fund an amount equal to the sum of: (i) 6.06%
8    (10% of the ratio of the 3% individual income tax rate
9    prior to 2011 to the 4.95% individual income tax rate
10    after July 1, 2017) of the net revenue realized from the
11    tax imposed by subsections (a) and (b) of Section 201 of
12    this Act upon individuals, trusts, and estates during the
13    preceding month; (ii) 6.85% (10% of the ratio of the 4.8%
14    corporate income tax rate prior to 2011 to the 7%
15    corporate income tax rate after July 1, 2017) of the net
16    revenue realized from the tax imposed by subsections (a)
17    and (b) of Section 201 of this Act upon corporations
18    during the preceding month; and (iii) beginning February
19    1, 2022, 6.06% of the net revenue realized from the tax
20    imposed by subsection (p) of Section 201 of this Act upon
21    electing pass-through entities.
22        (2) Beginning August 1, 2022 and continuing through
23    July 31, 2023, the Treasurer shall transfer each month
24    from the General Revenue Fund to the Local Government
25    Distributive Fund an amount equal to the sum of: (i) 6.16%
26    of the net revenue realized from the tax imposed by

 

 

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1    subsections (a) and (b) of Section 201 of this Act upon
2    individuals, trusts, and estates during the preceding
3    month; (ii) 6.85% of the net revenue realized from the tax
4    imposed by subsections (a) and (b) of Section 201 of this
5    Act upon corporations during the preceding month; and
6    (iii) 6.16% of the net revenue realized from the tax
7    imposed by subsection (p) of Section 201 of this Act upon
8    electing pass-through entities.
9        (3) Beginning August 1, 2023 and continuing through
10    June 30, 2024, the Treasurer shall transfer each month
11    from the General Revenue Fund to the Local Government
12    Distributive Fund an amount equal to the sum of: (i) 6.47%
13    of the net revenue realized from the tax imposed by
14    subsections (a) and (b) of Section 201 of this Act upon
15    individuals, trusts, and estates during the preceding
16    month; (ii) 6.85% of the net revenue realized from the tax
17    imposed by subsections (a) and (b) of Section 201 of this
18    Act upon corporations during the preceding month; and
19    (iii) 6.47% of the net revenue realized from the tax
20    imposed by subsection (p) of Section 201 of this Act upon
21    electing pass-through entities.
22        (4) Beginning July 1, 2024 and continuing through June
23    30, 2025, the Treasurer shall transfer each month from the
24    General Revenue Fund to the Local Government Distributive
25    Fund an amount equal to the sum of: (i) 8.5% of the net
26    revenue realized from the tax imposed by subsections (a)

 

 

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1    and (b) of Section 201 of this Act upon individuals,
2    trusts, and estates during the preceding month; (ii)
3    9.355% of the net revenue realized from the tax imposed by
4    subsections (a) and (b) of Section 201 of this Act upon
5    corporations during the preceding month; and (iii) 8.5% of
6    the net revenue realized from the tax imposed by
7    subsection (p) of Section 201 of this Act upon electing
8    pass-through entities.
9        (5) Beginning July 1, 2025 and continuing through June
10    30, 2026, the Treasurer shall transfer each month from the
11    General Revenue Fund to the Local Government Distributive
12    Fund an amount equal to the sum of: (i) 9% of the net
13    revenue realized from the tax imposed by subsections (a)
14    and (b) of Section 201 of this Act upon individuals,
15    trusts, and estates during the preceding month; (ii) 9.57%
16    of the net revenue realized from the tax imposed by
17    subsections (a) and (b) of Section 201 of this Act upon
18    corporations during the preceding month; and (iii) 9% of
19    the net revenue realized from the tax imposed by
20    subsection (p) of Section 201 of this Act upon electing
21    pass-through entities.
22        (6) Beginning July 1, 2026 and continuing through June
23    30, 2027, the Treasurer shall transfer each month from the
24    General Revenue Fund to the Local Government Distributive
25    Fund an amount equal to the sum of: (i) 9.5% of the net
26    revenue realized from the tax imposed by subsections (a)

 

 

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1    and (b) of Section 201 of this Act upon individuals,
2    trusts, and estates during the preceding month; (ii)
3    9.785% of the net revenue realized from the tax imposed by
4    subsections (a) and (b) of Section 201 of this Act upon
5    corporations during the preceding month; and (iii) 9.5% of
6    the net revenue realized from the tax imposed by
7    subsection (p) of Section 201 of this Act upon electing
8    pass-through entities.
9        (7) Beginning on July 1, 2027, the Treasurer shall
10    transfer each month from the General Revenue Fund to the
11    Local Government Distributive Fund an amount equal to: (i)
12    10% of the net revenue realized from the tax imposed on
13    individuals, trusts, estates, and corporations by
14    subsections (a) and (b) of Section 201 of this Act during
15    the preceding month; and (ii) 10% of the net revenue
16    realized from the tax imposed by subsection (p) of Section
17    201 of this Act upon electing pass-through entities.
18    Net revenue realized for a month shall be defined as the
19revenue from the tax imposed by subsections (a) and (b) of
20Section 201 of this Act which is deposited into the General
21Revenue Fund, the Education Assistance Fund, the Income Tax
22Surcharge Local Government Distributive Fund, the Fund for the
23Advancement of Education, and the Commitment to Human Services
24Fund during the month minus the amount paid out of the General
25Revenue Fund in State warrants during that same month as
26refunds to taxpayers for overpayment of liability under the

 

 

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1tax imposed by subsections (a) and (b) of Section 201 of this
2Act.
3    Notwithstanding any provision of law to the contrary,
4beginning on July 6, 2017 (the effective date of Public Act
5100-23), those amounts required under this subsection (b) to
6be transferred by the Treasurer into the Local Government
7Distributive Fund from the General Revenue Fund shall be
8directly deposited into the Local Government Distributive Fund
9as the revenue is realized from the tax imposed by subsections
10(a) and (b) of Section 201 of this Act.
11    (c) Deposits Into Income Tax Refund Fund.
12        (1) 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)(1), (2), and
15    (3) of Section 201 of this Act into a fund in the State
16    treasury known as the Income Tax Refund Fund. Beginning
17    with State fiscal year 1990 and for each fiscal year
18    thereafter, the percentage deposited into the Income Tax
19    Refund Fund during a fiscal year shall be the Annual
20    Percentage. For fiscal year 2011, the Annual Percentage
21    shall be 8.75%. For fiscal year 2012, the Annual
22    Percentage shall be 8.75%. For fiscal year 2013, the
23    Annual Percentage shall be 9.75%. For fiscal year 2014,
24    the Annual Percentage shall be 9.5%. For fiscal year 2015,
25    the Annual Percentage shall be 10%. For fiscal year 2018,
26    the Annual Percentage shall be 9.8%. For fiscal year 2019,

 

 

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1    the Annual Percentage shall be 9.7%. For fiscal year 2020,
2    the Annual Percentage shall be 9.5%. For fiscal year 2021,
3    the Annual Percentage shall be 9%. For fiscal year 2022,
4    the Annual Percentage shall be 9.25%. For fiscal year
5    2023, the Annual Percentage shall be 9.25%. For fiscal
6    year 2024, the Annual Percentage shall be 9.15%. For all
7    other fiscal years, the Annual Percentage shall be
8    calculated as a fraction, the numerator of which shall be
9    the amount of refunds approved for payment by the
10    Department during the preceding fiscal year as a result of
11    overpayment of tax liability under subsections (a) and
12    (b)(1), (2), and (3) of Section 201 of this Act plus the
13    amount of such refunds remaining approved but unpaid at
14    the end of the preceding fiscal year, minus the amounts
15    transferred into the Income Tax Refund Fund from the
16    Tobacco Settlement Recovery Fund, and the denominator of
17    which shall be the amounts which will be collected
18    pursuant to subsections (a) and (b)(1), (2), and (3) of
19    Section 201 of this Act during the preceding fiscal year;
20    except that in State fiscal year 2002, the Annual
21    Percentage shall in no event exceed 7.6%. The Director of
22    Revenue shall certify the Annual Percentage to the
23    Comptroller on the last business day of the fiscal year
24    immediately preceding the fiscal year for which it is to
25    be effective.
26        (2) 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)(6), (7), and
3    (8), (c) and (d) of Section 201 of this Act into a fund in
4    the State treasury known as the Income Tax Refund Fund.
5    Beginning with State fiscal year 1990 and for each fiscal
6    year thereafter, the percentage deposited into the Income
7    Tax Refund Fund during a fiscal year shall be the Annual
8    Percentage. For fiscal year 2011, the Annual Percentage
9    shall be 17.5%. For fiscal year 2012, the Annual
10    Percentage shall be 17.5%. For fiscal year 2013, the
11    Annual Percentage shall be 14%. For fiscal year 2014, the
12    Annual Percentage shall be 13.4%. For fiscal year 2015,
13    the Annual Percentage shall be 14%. For fiscal year 2018,
14    the Annual Percentage shall be 17.5%. For fiscal year
15    2019, the Annual Percentage shall be 15.5%. For fiscal
16    year 2020, the Annual Percentage shall be 14.25%. For
17    fiscal year 2021, the Annual Percentage shall be 14%. For
18    fiscal year 2022, the Annual Percentage shall be 15%. For
19    fiscal year 2023, the Annual Percentage shall be 14.5%.
20    For fiscal year 2024, the Annual Percentage shall be 14%.
21    For all other fiscal years, the Annual Percentage shall be
22    calculated as a fraction, the numerator of which shall be
23    the amount of refunds approved for payment by the
24    Department during the preceding fiscal year as a result of
25    overpayment of tax liability under subsections (a) and
26    (b)(6), (7), and (8), (c) and (d) of Section 201 of this

 

 

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1    Act plus the amount of such refunds remaining approved but
2    unpaid at the end of the preceding fiscal year, and the
3    denominator of which shall be the amounts which will be
4    collected pursuant to subsections (a) and (b)(6), (7), and
5    (8), (c) and (d) 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 23%.
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        (3) The Comptroller shall order transferred and the
13    Treasurer shall transfer from the Tobacco Settlement
14    Recovery Fund to the Income Tax Refund Fund (i)
15    $35,000,000 in January, 2001, (ii) $35,000,000 in January,
16    2002, and (iii) $35,000,000 in January, 2003.
17    (d) Expenditures from Income Tax Refund Fund.
18        (1) Beginning January 1, 1989, money in the Income Tax
19    Refund Fund shall be expended exclusively for the purpose
20    of paying refunds resulting from overpayment of tax
21    liability under Section 201 of this Act and for making
22    transfers pursuant to this subsection (d), except that in
23    State fiscal years 2022 and 2023, moneys in the Income Tax
24    Refund Fund shall also be used to pay one-time rebate
25    payments as provided under Sections 208.5 and 212.1.
26        (2) The Director shall order payment of refunds

 

 

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1    resulting from overpayment of tax liability under Section
2    201 of this Act from the Income Tax Refund Fund only to the
3    extent that amounts collected pursuant to Section 201 of
4    this Act and transfers pursuant to this subsection (d) and
5    item (3) of subsection (c) have been deposited and
6    retained in the Fund.
7        (3) As soon as possible after the end of each fiscal
8    year, the Director shall order transferred and the State
9    Treasurer and State Comptroller shall transfer from the
10    Income Tax Refund Fund to the Personal Property Tax
11    Replacement Fund an amount, certified by the Director to
12    the Comptroller, equal to the excess of the amount
13    collected pursuant to subsections (c) and (d) of Section
14    201 of this Act deposited into the Income Tax Refund Fund
15    during the fiscal year over 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        (4) As soon as possible after the end of each fiscal
20    year, the Director shall order transferred and the State
21    Treasurer and State Comptroller shall transfer from the
22    Personal Property Tax Replacement Fund to the Income Tax
23    Refund Fund an amount, certified by the Director to the
24    Comptroller, equal to the excess of the amount of refunds
25    resulting from overpayment of tax liability under
26    subsections (c) and (d) of Section 201 of this Act paid

 

 

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1    from the Income Tax Refund Fund during the fiscal year
2    over the amount collected pursuant to subsections (c) and
3    (d) of Section 201 of this Act deposited into the Income
4    Tax Refund Fund during the fiscal year.
5        (4.5) As soon as possible after the end of fiscal year
6    1999 and of each fiscal year thereafter, the Director
7    shall order transferred and the State Treasurer and State
8    Comptroller shall transfer from the Income Tax Refund Fund
9    to the General Revenue Fund any surplus remaining in the
10    Income Tax Refund Fund as of the end of such fiscal year;
11    excluding for fiscal years 2000, 2001, and 2002 amounts
12    attributable to transfers under item (3) of subsection (c)
13    less refunds resulting from the earned income tax credit,
14    and excluding for fiscal year 2022 amounts attributable to
15    transfers from the General Revenue Fund authorized by
16    Public Act 102-700.
17        (5) This Act shall constitute an irrevocable and
18    continuing appropriation from the Income Tax Refund Fund
19    for the purposes of (i) paying refunds upon the order of
20    the Director in accordance with the provisions of this
21    Section and (ii) paying one-time rebate payments under
22    Sections 208.5 and 212.1.
23    (e) Deposits into the Education Assistance Fund and the
24Income Tax Surcharge Local Government Distributive Fund. On
25July 1, 1991, and thereafter, of the amounts collected
26pursuant to subsections (a) and (b) of Section 201 of this Act,

 

 

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1minus deposits into the Income Tax Refund Fund, the Department
2shall deposit 7.3% into the Education Assistance Fund in the
3State Treasury. Beginning July 1, 1991, and continuing through
4January 31, 1993, of the amounts collected pursuant to
5subsections (a) and (b) of Section 201 of the Illinois Income
6Tax Act, minus deposits into the Income Tax Refund Fund, the
7Department shall deposit 3.0% into the Income Tax Surcharge
8Local Government Distributive Fund in the State Treasury.
9Beginning February 1, 1993 and continuing through June 30,
101993, of the amounts collected pursuant to subsections (a) and
11(b) of Section 201 of the Illinois Income Tax Act, minus
12deposits into the Income Tax Refund Fund, the Department shall
13deposit 4.4% into the Income Tax Surcharge Local Government
14Distributive Fund in the State Treasury. Beginning July 1,
151993, and continuing through June 30, 1994, of the amounts
16collected under subsections (a) and (b) of Section 201 of this
17Act, minus deposits into the Income Tax Refund Fund, the
18Department shall deposit 1.475% into the Income Tax Surcharge
19Local Government Distributive Fund in the State Treasury.
20    (f) Deposits into the Fund for the Advancement of
21Education. Beginning February 1, 2015, the Department shall
22deposit the following portions of the revenue realized from
23the tax imposed upon individuals, trusts, and estates by
24subsections (a) and (b) of Section 201 of this Act, minus
25deposits into the Income Tax Refund Fund, into the Fund for the
26Advancement of Education:

 

 

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1        (1) beginning February 1, 2015, and prior to February
2    1, 2025, 1/30; and
3        (2) beginning February 1, 2025, 1/26.
4    If the rate of tax imposed by subsection (a) and (b) of
5Section 201 is reduced pursuant to Section 201.5 of this Act,
6the Department shall not make the deposits required by this
7subsection (f) on or after the effective date of the
8reduction.
9    (g) Deposits into the Commitment to Human Services Fund.
10Beginning February 1, 2015, the Department shall deposit the
11following portions of the revenue realized from the tax
12imposed upon individuals, trusts, and estates by subsections
13(a) and (b) of Section 201 of this Act, minus deposits into the
14Income Tax Refund Fund, into the Commitment to Human Services
15Fund:
16        (1) beginning February 1, 2015, and prior to February
17    1, 2025, 1/30; and
18        (2) beginning February 1, 2025, 1/26.
19    If the rate of tax imposed by subsection (a) and (b) of
20Section 201 is reduced pursuant to Section 201.5 of this Act,
21the Department shall not make the deposits required by this
22subsection (g) on or after the effective date of the
23reduction.
24    (h) Deposits into the Tax Compliance and Administration
25Fund. Beginning on the first day of the first calendar month to
26occur on or after August 26, 2014 (the effective date of Public

 

 

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1Act 98-1098), each month the Department shall pay into the Tax
2Compliance and Administration Fund, to be used, subject to
3appropriation, to fund additional auditors and compliance
4personnel at the Department, an amount equal to 1/12 of 5% of
5the cash receipts collected during the preceding fiscal year
6by the Audit Bureau of the Department from the tax imposed by
7subsections (a), (b), (c), and (d) of Section 201 of this Act,
8net of deposits into the Income Tax Refund Fund made from those
9cash receipts.
10(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
11102-658, eff. 8-27-21; 102-699, eff. 4-19-22; 102-700, eff.
124-19-22; 102-813, eff. 5-13-22; 103-8, eff. 6-7-23; 103-154,
13eff. 6-30-23.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.