Full Text of SB2206 103rd General Assembly
SB2206 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 SB2206 Introduced 2/10/2023, by Sen. Donald P. DeWitte SYNOPSIS AS INTRODUCED: |
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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.
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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. Beginning August | 4 | | 1, 2017 and continuing through July 31, 2022, the Treasurer | 5 | | shall transfer each month from the General Revenue Fund to the | 6 | | Local Government Distributive Fund an amount equal to the sum | 7 | | of: (i) 6.06% (10% of the ratio of the 3% individual income tax | 8 | | rate prior to 2011 to the 4.95% individual income tax rate | 9 | | after July 1, 2017) of the net revenue realized from the tax | 10 | | imposed by subsections (a) and (b) of Section 201 of this Act | 11 | | upon individuals, trusts, and estates during the preceding | 12 | | month; (ii) 6.85% (10% of the ratio of the 4.8% corporate | 13 | | income tax rate prior to 2011 to the 7% corporate income tax | 14 | | rate after July 1, 2017) of the net revenue realized from the | 15 | | tax imposed by subsections (a) and (b) of Section 201 of this | 16 | | Act upon corporations during the preceding month; and (iii) | 17 | | beginning February 1, 2022, 6.06% of the net revenue realized | 18 | | from the tax imposed by subsection (p) of Section 201 of this | 19 | | Act upon electing pass-through entities. Beginning August 1, | 20 | | 2022 and continuing through July 31, 2023 , the Treasurer shall | 21 | | transfer each month from the General Revenue Fund to the Local | 22 | | Government Distributive Fund an amount equal to the sum of: | 23 | | (i) 6.16% of the net revenue realized from the tax imposed by | 24 | | subsections (a) and (b) of Section 201 of this Act upon | 25 | | individuals, trusts, and estates during the preceding month; | 26 | | (ii) 6.85% 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 | | corporations during the preceding month; and (iii) 6.16% of | 3 | | the net revenue realized from the tax imposed by subsection | 4 | | (p) of Section 201 of this Act upon electing pass-through | 5 | | entities. Beginning
August 1, 2023, the Treasurer shall | 6 | | transfer each month from
the General Revenue Fund to the Local | 7 | | Government Distributive
Fund an amount equal to 10% of the net | 8 | | revenue realized from the
tax imposed by
subsections (a) and | 9 | | (b) of Section 201 of the Illinois Income Tax Act during the | 10 | | preceding month. Net revenue realized for a month shall be | 11 | | defined as the
revenue from the tax imposed by subsections (a) | 12 | | and (b) of Section 201 of this
Act which is deposited in the | 13 | | General Revenue Fund, the Education Assistance
Fund, the | 14 | | Income Tax Surcharge Local Government Distributive Fund, the | 15 | | Fund for the Advancement of Education, and the Commitment to | 16 | | Human Services Fund during the
month minus the amount paid out | 17 | | of the General Revenue Fund in State warrants
during that same | 18 | | month as refunds to taxpayers for overpayment of liability
| 19 | | under the tax imposed by subsections (a) and (b) of Section 201 | 20 | | of this Act. | 21 | | Notwithstanding any provision of law to the contrary, | 22 | | beginning on July 6, 2017 (the effective date of Public Act | 23 | | 100-23), those amounts required under this subsection (b) to | 24 | | be transferred by the Treasurer into the Local Government | 25 | | Distributive Fund from the General Revenue Fund shall be | 26 | | directly deposited into the Local Government Distributive Fund |
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| 1 | | as 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 |
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| 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 |
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| 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. |
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| 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 |
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| 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 |
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| 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 | 14 | | Income Tax
Surcharge Local Government Distributive Fund. On | 15 | | July 1, 1991, and thereafter, of the amounts collected | 16 | | pursuant to
subsections (a) and (b) of Section 201 of this Act, | 17 | | minus deposits into the
Income Tax Refund Fund, the Department | 18 | | shall deposit 7.3% into the
Education Assistance Fund in the | 19 | | State Treasury. Beginning July 1, 1991,
and continuing through | 20 | | January 31, 1993, of the amounts collected pursuant to
| 21 | | subsections (a) and (b) of Section 201 of the Illinois Income | 22 | | Tax Act, minus
deposits into the Income Tax Refund Fund, the | 23 | | Department shall deposit 3.0%
into the Income Tax Surcharge | 24 | | Local Government Distributive Fund in the State
Treasury. | 25 | | Beginning February 1, 1993 and continuing through June 30, | 26 | | 1993, of
the amounts collected pursuant to subsections (a) and |
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| 1 | | (b) of Section 201 of the
Illinois Income Tax Act, minus | 2 | | deposits into the Income Tax Refund Fund, the
Department shall | 3 | | deposit 4.4% into the Income Tax Surcharge Local Government
| 4 | | Distributive Fund in the State Treasury. Beginning July 1, | 5 | | 1993, and
continuing through June 30, 1994, of the amounts | 6 | | collected under subsections
(a) and (b) of Section 201 of this | 7 | | Act, minus deposits into the Income Tax
Refund Fund, the | 8 | | Department shall deposit 1.475% into the Income Tax Surcharge
| 9 | | Local Government Distributive Fund in the State Treasury. | 10 | | (f) Deposits into the Fund for the Advancement of | 11 | | Education. Beginning February 1, 2015, the Department shall | 12 | | deposit the following portions of the revenue realized from | 13 | | the tax imposed upon individuals, trusts, and estates by | 14 | | subsections (a) and (b) of Section 201 of this Act, minus | 15 | | deposits into the Income Tax Refund Fund, into the Fund for the | 16 | | Advancement 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 | 21 | | Section 201 is reduced pursuant to Section 201.5 of this Act, | 22 | | the Department shall not make the deposits required by this | 23 | | subsection (f) on or after the effective date of the | 24 | | reduction. | 25 | | (g) Deposits into the Commitment to Human Services Fund. | 26 | | Beginning February 1, 2015, the Department shall deposit the |
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| 1 | | following portions of the revenue realized from the tax | 2 | | imposed upon individuals, trusts, and estates by subsections | 3 | | (a) and (b) of Section 201 of this Act, minus deposits into the | 4 | | Income Tax Refund Fund, into the Commitment to Human Services | 5 | | Fund: | 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 | 10 | | Section 201 is reduced pursuant to Section 201.5 of this Act, | 11 | | the Department shall not make the deposits required by this | 12 | | subsection (g) on or after the effective date of the | 13 | | reduction. | 14 | | (h) Deposits into the Tax Compliance and Administration | 15 | | Fund. Beginning on the first day of the first calendar month to | 16 | | occur on or after August 26, 2014 (the effective date of Public | 17 | | Act 98-1098), each month the Department shall pay into the Tax | 18 | | Compliance and Administration Fund, to be used, subject to | 19 | | appropriation, to fund additional auditors and compliance | 20 | | personnel at the Department, an amount equal to 1/12 of 5% of | 21 | | the cash receipts collected during the preceding fiscal year | 22 | | by the Audit Bureau of the Department from the tax imposed by | 23 | | subsections (a), (b), (c), and (d) of Section 201 of this Act, | 24 | | net of deposits into the Income Tax Refund Fund made from those | 25 | | cash receipts. | 26 | | (Source: P.A. 101-8, see Section 99 for effective date; |
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| 1 | | 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-636, eff. | 2 | | 6-10-20; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658, | 3 | | eff. 8-27-21; 102-699, eff. 4-19-22; 102-700, eff. 4-19-22; | 4 | | 102-813, eff. 5-13-22; revised 8-2-22.)
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law.
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