103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2206

 

Introduced 2/10/2023, by Sen. Donald P. DeWitte

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/901

    Amends the Illinois Income Tax Act. Provides that an amount equal to 10% of the net revenue realized from the State income tax during the preceding month shall be transferred from the General Revenue Fund to the Local Government Distributive Fund (currently, the amount transferred is equal to the sum of (i) 6.16% of the net revenue realized from the tax imposed upon individuals, trusts, and estates, (ii) 6.85% of the net revenue realized from the tax imposed upon corporations, and (iii) 6.16% of the net revenue realized from the tax imposed upon electing pass-through entities). Effective immediately.


LRB103 25035 HLH 51369 b

 

 

A BILL FOR

 

SB2206LRB103 25035 HLH 51369 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

 

 

SB2206- 2 -LRB103 25035 HLH 51369 b

1Illinois Public Aid Code, as directed by the Department of
2Healthcare and Family Services.
3    (b) Local Government Distributive Fund. Beginning August
41, 2017 and continuing through July 31, 2022, the Treasurer
5shall transfer each month from the General Revenue Fund to the
6Local Government Distributive Fund an amount equal to the sum
7of: (i) 6.06% (10% of the ratio of the 3% individual income tax
8rate prior to 2011 to the 4.95% individual income tax rate
9after July 1, 2017) of the net revenue realized from the tax
10imposed by subsections (a) and (b) of Section 201 of this Act
11upon individuals, trusts, and estates during the preceding
12month; (ii) 6.85% (10% of the ratio of the 4.8% corporate
13income tax rate prior to 2011 to the 7% corporate income tax
14rate after July 1, 2017) of the net revenue realized from the
15tax imposed by subsections (a) and (b) of Section 201 of this
16Act upon corporations during the preceding month; and (iii)
17beginning February 1, 2022, 6.06% of the net revenue realized
18from the tax imposed by subsection (p) of Section 201 of this
19Act upon electing pass-through entities. Beginning August 1,
202022 and continuing through July 31, 2023, the Treasurer shall
21transfer each month from the General Revenue Fund to the Local
22Government Distributive Fund an amount equal to the sum of:
23(i) 6.16% of the net revenue realized from the tax imposed by
24subsections (a) and (b) of Section 201 of this Act upon
25individuals, trusts, and estates during the preceding month;
26(ii) 6.85% of the net revenue realized from the tax imposed by

 

 

SB2206- 3 -LRB103 25035 HLH 51369 b

1subsections (a) and (b) of Section 201 of this Act upon
2corporations during the preceding month; and (iii) 6.16% of
3the net revenue realized from the tax imposed by subsection
4(p) of Section 201 of this Act upon electing pass-through
5entities. Beginning August 1, 2023, the Treasurer shall
6transfer each month from the General Revenue Fund to the Local
7Government Distributive Fund an amount equal to 10% of the net
8revenue realized from the tax imposed by subsections (a) and
9(b) of Section 201 of the Illinois Income Tax Act during the
10preceding month. Net revenue realized for a month shall be
11defined as the revenue from the tax imposed by subsections (a)
12and (b) of Section 201 of this Act which is deposited in the
13General Revenue Fund, the Education Assistance Fund, the
14Income Tax Surcharge Local Government Distributive Fund, the
15Fund for the Advancement of Education, and the Commitment to
16Human Services Fund during the month minus the amount paid out
17of the General Revenue Fund in State warrants during that same
18month as refunds to taxpayers for overpayment of liability
19under the tax imposed by subsections (a) and (b) of Section 201
20of this Act.
21    Notwithstanding any provision of law to the contrary,
22beginning on July 6, 2017 (the effective date of Public Act
23100-23), those amounts required under this subsection (b) to
24be transferred by the Treasurer into the Local Government
25Distributive Fund from the General Revenue Fund shall be
26directly deposited into the Local Government Distributive Fund

 

 

SB2206- 4 -LRB103 25035 HLH 51369 b

1as the revenue is realized from the tax imposed by subsections
2(a) and (b) of Section 201 of this Act.
3    (c) Deposits Into Income Tax Refund Fund.
4        (1) Beginning on January 1, 1989 and thereafter, the
5    Department shall deposit a percentage of the amounts
6    collected pursuant to subsections (a) and (b)(1), (2), and
7    (3) of Section 201 of this Act into a fund in the State
8    treasury known as the Income Tax Refund Fund. Beginning
9    with State fiscal year 1990 and for each fiscal year
10    thereafter, the percentage deposited into the Income Tax
11    Refund Fund during a fiscal year shall be the Annual
12    Percentage. For fiscal year 2011, the Annual Percentage
13    shall be 8.75%. For fiscal year 2012, the Annual
14    Percentage shall be 8.75%. For fiscal year 2013, the
15    Annual Percentage shall be 9.75%. For fiscal year 2014,
16    the Annual Percentage shall be 9.5%. For fiscal year 2015,
17    the Annual Percentage shall be 10%. For fiscal year 2018,
18    the Annual Percentage shall be 9.8%. For fiscal year 2019,
19    the Annual Percentage shall be 9.7%. For fiscal year 2020,
20    the Annual Percentage shall be 9.5%. For fiscal year 2021,
21    the Annual Percentage shall be 9%. For fiscal year 2022,
22    the Annual Percentage shall be 9.25%. For fiscal year
23    2023, the Annual Percentage shall be 9.25%. For all other
24    fiscal years, the Annual Percentage shall be calculated as
25    a fraction, the numerator of which shall be the amount of
26    refunds approved for payment by the Department during the

 

 

SB2206- 5 -LRB103 25035 HLH 51369 b

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

 

 

SB2206- 6 -LRB103 25035 HLH 51369 b

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

 

 

SB2206- 7 -LRB103 25035 HLH 51369 b

1        (3) The Comptroller shall order transferred and the
2    Treasurer shall transfer from the Tobacco Settlement
3    Recovery Fund to the Income Tax Refund Fund (i)
4    $35,000,000 in January, 2001, (ii) $35,000,000 in January,
5    2002, and (iii) $35,000,000 in January, 2003.
6    (d) Expenditures from Income Tax Refund Fund.
7        (1) Beginning January 1, 1989, money in the Income Tax
8    Refund Fund shall be expended exclusively for the purpose
9    of paying refunds resulting from overpayment of tax
10    liability under Section 201 of this Act and for making
11    transfers pursuant to this subsection (d), except that in
12    State fiscal years 2022 and 2023, moneys in the Income Tax
13    Refund Fund shall also be used to pay one-time rebate
14    payments as provided under Sections 208.5 and 212.1.
15        (2) The Director shall order payment of refunds
16    resulting from overpayment of tax liability under Section
17    201 of this Act from the Income Tax Refund Fund only to the
18    extent that amounts collected pursuant to Section 201 of
19    this Act and transfers pursuant to this subsection (d) and
20    item (3) of subsection (c) have been deposited and
21    retained in the Fund.
22        (3) As soon as possible after the end of each fiscal
23    year, the Director shall order transferred and the State
24    Treasurer and State Comptroller shall transfer from the
25    Income Tax Refund Fund to the Personal Property Tax
26    Replacement Fund an amount, certified by the Director to

 

 

SB2206- 8 -LRB103 25035 HLH 51369 b

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

 

 

SB2206- 9 -LRB103 25035 HLH 51369 b

1    attributable to transfers under item (3) of subsection (c)
2    less refunds resulting from the earned income tax credit,
3    and excluding for fiscal year 2022 amounts attributable to
4    transfers from the General Revenue Fund authorized by
5    Public Act 102-700 this amendatory Act of the 102nd
6    General Assembly.
7        (5) This Act shall constitute an irrevocable and
8    continuing appropriation from the Income Tax Refund Fund
9    for the purposes of (i) paying refunds upon the order of
10    the Director in accordance with the provisions of this
11    Section and (ii) paying one-time rebate payments under
12    Sections 208.5 and 212.1.
13    (e) Deposits into the Education Assistance Fund and the
14Income Tax Surcharge Local Government Distributive Fund. On
15July 1, 1991, and thereafter, of the amounts collected
16pursuant to subsections (a) and (b) of Section 201 of this Act,
17minus deposits into the Income Tax Refund Fund, the Department
18shall deposit 7.3% into the Education Assistance Fund in the
19State Treasury. Beginning July 1, 1991, and continuing through
20January 31, 1993, of the amounts collected pursuant to
21subsections (a) and (b) of Section 201 of the Illinois Income
22Tax Act, minus deposits into the Income Tax Refund Fund, the
23Department shall deposit 3.0% into the Income Tax Surcharge
24Local Government Distributive Fund in the State Treasury.
25Beginning February 1, 1993 and continuing through June 30,
261993, of the amounts collected pursuant to subsections (a) and

 

 

SB2206- 10 -LRB103 25035 HLH 51369 b

1(b) of Section 201 of the Illinois Income Tax Act, minus
2deposits into the Income Tax Refund Fund, the Department shall
3deposit 4.4% into the Income Tax Surcharge Local Government
4Distributive Fund in the State Treasury. Beginning July 1,
51993, and continuing through June 30, 1994, of the amounts
6collected under subsections (a) and (b) of Section 201 of this
7Act, minus deposits into the Income Tax Refund Fund, the
8Department shall deposit 1.475% into the Income Tax Surcharge
9Local Government Distributive Fund in the State Treasury.
10    (f) Deposits into the Fund for the Advancement of
11Education. Beginning February 1, 2015, the Department shall
12deposit the following portions of the revenue realized from
13the tax imposed upon individuals, trusts, and estates by
14subsections (a) and (b) of Section 201 of this Act, minus
15deposits into the Income Tax Refund Fund, into the Fund for the
16Advancement of Education:
17        (1) beginning February 1, 2015, and prior to February
18    1, 2025, 1/30; and
19        (2) beginning February 1, 2025, 1/26.
20    If the rate of tax imposed by subsection (a) and (b) of
21Section 201 is reduced pursuant to Section 201.5 of this Act,
22the Department shall not make the deposits required by this
23subsection (f) on or after the effective date of the
24reduction.
25    (g) Deposits into the Commitment to Human Services Fund.
26Beginning February 1, 2015, the Department shall deposit the

 

 

SB2206- 11 -LRB103 25035 HLH 51369 b

1following portions of the revenue realized from the tax
2imposed upon individuals, trusts, and estates by subsections
3(a) and (b) of Section 201 of this Act, minus deposits into the
4Income Tax Refund Fund, into the Commitment to Human Services
5Fund:
6        (1) beginning February 1, 2015, and prior to February
7    1, 2025, 1/30; and
8        (2) beginning February 1, 2025, 1/26.
9    If the rate of tax imposed by subsection (a) and (b) of
10Section 201 is reduced pursuant to Section 201.5 of this Act,
11the Department shall not make the deposits required by this
12subsection (g) on or after the effective date of the
13reduction.
14    (h) Deposits into the Tax Compliance and Administration
15Fund. Beginning on the first day of the first calendar month to
16occur on or after August 26, 2014 (the effective date of Public
17Act 98-1098), each month the Department shall pay into the Tax
18Compliance and Administration Fund, to be used, subject to
19appropriation, to fund additional auditors and compliance
20personnel at the Department, an amount equal to 1/12 of 5% of
21the cash receipts collected during the preceding fiscal year
22by the Audit Bureau of the Department from the tax imposed by
23subsections (a), (b), (c), and (d) of Section 201 of this Act,
24net of deposits into the Income Tax Refund Fund made from those
25cash receipts.
26(Source: P.A. 101-8, see Section 99 for effective date;

 

 

SB2206- 12 -LRB103 25035 HLH 51369 b

1101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-636, eff.
26-10-20; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658,
3eff. 8-27-21; 102-699, eff. 4-19-22; 102-700, eff. 4-19-22;
4102-813, eff. 5-13-22; revised 8-2-22.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.