Full Text of HB3754 103rd General Assembly
HB3754 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB3754 Introduced 2/17/2023, by Rep. Matt Hanson SYNOPSIS AS INTRODUCED: |
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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.
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| | A BILL FOR |
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| 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 |
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| 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 |
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| 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 |
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| 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 |
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| 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 |
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| 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
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| 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 |
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| 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 |
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| 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. |
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| 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. |
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| 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 |
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| 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.
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